Tire Sales & Service

Tire sales and service businesses sell, install, and service tires for passenger vehicles, trucks, and sometimes commercial vehicles.

Tire shops combine retail product sales with installation and related services, creating multiple revenue streams.

Tires are consumable products requiring replacement every 3-7 years or 30,000-60,000 miles, generating recurring customer need.

Successful tire shops develop relationships with tire distributors for competitive pricing, invest in modern tire and alignment equipment, employ skilled technicians, and provide full tire services beyond just sales.

The business model generates revenue from tire sales with typical margins of 25-40% on tires, installation and balancing fees $20-50 per tire, tire disposal fees, and additional services like alignments $75-150, repairs $20-40, and rotation $20-40.

Volume drives profitability.

Services include tire sales across brands and price points, tire installation and balancing, wheel alignment, tire rotation and balancing, flat tire repair, tire pressure monitoring (TPMS) service, and often brake and suspension work given natural relationship.

Success requires tire product knowledge across brands and applications, modern tire machines and wheel balancers, alignment equipment and expertise, relationship with tire distributors, efficient service processes, and strong customer service explaining tire needs and options.

Initial investment includes shop facility, tire mounting and balancing equipment, alignment system, initial tire inventory, and signage, totaling $100,000-400,000+.

The business scales through volume, additional services, and potentially multiple locations.

Marketing emphasizes price competitiveness, tire brand selection, service quality and speed, and often manufacturer promotions and rebates.

Location visibility and local reputation drive traffic.

The business offers recurring customer need, manufacturer promotional support, multiple revenue streams, and strong margins combining product and service sales.

Challenges include significant inventory investment across sizes and types, competition from chains and big-box stores, price transparency and comparison shopping, technology changes with TPMS and alignment, and seasonality in winter tire markets.

Many tire shops expand to full service repair, specialize in performance tires, or add detailing and other services maximizing customer value.