Becoming a retailer of used tyres will require you to buy and sell previously used tyres. Used tyres are in high demand, with most of the market coming from owners of commercial vehicles who are always looking for ways to save money. Used tyres are purchased by owners of non-commercial vehicles on occasion as well.
Their knowledge of the advantages of a brand-new pair of tyres, such as increased durability, enhanced traction on the road, and improved overall performance, is unaffected by their decision to purchase old tyres. They have one goal in mind when reusing old tyres, which is to cut costs. They provide a pool of prospective clients for your firm that sells secondhand tyres.
Before you set a time to start your business, we would like you to take a look at some of the benefits and drawbacks of operating a company that sells old tyres.
Pros and cons
Opening a used tyre shop is one of the more simple businesses to launch in the automotive industry. There is absolutely no requirement for academic qualifications. It is also a form of business that has little overhead costs. Therefore, the initial investment required is not too high.
You can’t get around the fact that some underlying disadvantages are also involved. The flow of customers isn’t nearly as high as it is at those businesses that offer new tyres. In addition, receiving your returns will not be as quick as you anticipate; instead, it will take some time.
Opening a used tyre store takes rigorous planning and organisation skills. When you first begin, you will ensure that your company satisfies all requirements before moving further. We have compiled a list of your company’s prerequisites, which may be found here.
- It would be best if you had good inspection eyes to verify that the used tyres you acquire from dealers are of decent quality.
- It would help if you had a business plan to ensure that you are moving correctly and that you are ready for the challenges that lie ahead in the future.
- Analysis of the competition to determine and capitalise on your rivals’ weak points and to devise more effective defences against the dangers they pose to your business.
- Registering your company with the appropriate local authorities to obtain a business licence.
- Rent a roadside store with plenty of room for customers’ vehicles to park.
- Maintain a high level of client satisfaction to encourage positive word of mouth and increase sales.
- Your company should be promoted on the local cable networks and in the local newspapers.
The investment structure of your company will consist of the following components: shop rent, inventory size, furniture, utility costs, tools, and equipment for tyre mounting, demounting, installation, and removal.