By Arina Smith
In the last few years, entrepreneurs have been scouring the internet for new and profitable business ideas. While the focus has overwhelmingly been on tech and software, there is an area that seems to have been ignored. Reimagining successful traditional businesses according to the present times are where the real opportunity lies.
One major industry that holds immense potential for the same is the tire business. With more vehicles on our roads than ever before starting a profitable chain of tire shops might just be the business idea that can catapult you to success.
Opening a tire shop that sells new and used tires holds immense potential. Especially, at a time when vehicular safety is being emphasized by one and all. In this article, we are going to cover the following topics that can help in running a successful tire shop-
- Steps that need to be followed to open up a tire shop
- The importance of customer service for the tire shop’s success
- Different tire and auto services that the shop should offer
- The final analysis
If you are someone who is planning to open or invest in a tire shop or a franchise, this article is for you.
5 Steps that you need to follow to Open a New or Used Tire Shop
Step 1: Going the Franchisee Route or Starting Independently
If you are looking to start a new tire shop, there are two major options in front of you. You can either take a franchisee of an already successful name in the industry. Or, you can go solo and start building your brand from scratch. If you go for the franchisee model, you can get help in terms of guidance, vendor partnerships, and become part of an already established name.
Step 2: Decide on the location where you want to open the tire shop
Finding a location for your tire shop is probably one of the toughest decisions you will have to make. A lot of it is going to depend on the existing competition in the area, type of neighborhood, and your service. For example, if you are also looking to cater to semis, you need to open up a shop closer to the freeways and definitely not in residential neighborhoods.
Step 3: Identifying the customers who are going to purchase from you
“One of the main steps in opening a business is to conduct marketing analysis to determine demand and supply.” – says marketer, business creation expert and owner of LLC.services, John Flow.
Take the different categories of vehicles in the market today. This will help you get a fair idea about what should be your shop’s offerings. Doing market research and evaluating what kind of cars people are buying would give you an idea about the demand. Narrow down to brands, make and models and proceed from there. This will help in identifying the target audiences.
Step 4: Get your finances in order and start the initial work
Once you have been able to execute the above three steps, you now need to gather the finances. You can either raise money from a bank or look for investors within your circle of friends or colleagues. You would need a basic minimum investment depending upon the scale of the shop you are looking to start. You will also have to pay for the franchise license.
Step 5: Marketing and Promoting your tire shop on Offline and Online platforms
The last step involves promoting your new tire shop on both traditional marketing platforms as well as on digital ones. This means everything from flyer distribution, leaflets, and hoardings for offline promotions. On Online platforms, you need to create your brand website, set up social pages, and start your Google My Business profile. This will help spread the word.
The Importance of Customer Service in the Success of your Tire Shop
In this section, we are going to look at how great customer service can propel your tire shop towards success.
1. Focus on Relationship Building with Customers
A lot of customers prefer certain repair shops or mechanics simply because they develop a good relationship with them. Your tire shop must follow principles that help improve relationship building. Greeting customers when they show up, addressing their concerns immediately, helping them with coffee, and asking about other non-tire things help.
2. Ensure your services are available at all times
If you want to provide the best customer experience possible, you need to be accessible at all times. This means having an emergency 24×7 service for your customers. You can also look at roadside assistance. Leading tire shops have chat and phone support for their customers. the more accessible you are, the better will you be able to boost your customer experience.
3. Take Customer Testimonials and Feedback at all times
Everyone wants to have a say as far as services are concerned. Encourage your customers to put in their feedback every time they get a service done. You can use the same as a means of promotion later on. Publishing their feedback videos on your social pages will make them feel important. A business that listens to its customers can grow exponentially in a short span.
4. Make your Tire Shop an active part of the Local Community
Sponsoring the kit of the local school and college teams, doing community work at the senior nursing home, etc. are some ways you can engage with the community. Tire shops should look to actively participate in community-related activities. This can even include discounts for officials residing in the neighborhood and their vehicles.
5. Stay Connected to the Customer even after the sale is done
Successful tire companies check up on their customers after a few days to enquire about how their tires are performing. This little communication can go a long way in establishing positive relationships and experiences. Do not over-communicate and bore the customer. Rather, be polite and focus on why the customer’s post-sales inputs are important for the tire shop.
Different Tire and Auto Services that the Shop should offer to its customers
In this section, we look at the various types of services that tire shops should offer to their customers.
- Upgrading to a new set of tires for the entire vehicle. This means stocking brands that customers prefer. New tire sets that can be bought by customers are the top service on offer at shops.
- Repairing existing tires when they run a flat is the second kind of service that a tire shop can offer. This can also require roadside assistance in case someone gets a flat on the freeway.
- Selling used tires is also a profitable service area that tire shops can look at. If your target audiences are commercial vehicles and businesses then this becomes an important service area to consider.
- A lot of customers also look for wheel alignment services in tire shops. You can set up a separate section for wheel alignment for the customers that purchase the tires. You can also charge separately for wheel alignment.
- Brake repairs are another common service area that tire shops can look at. Since it is connected to the wheel, tire shops can have technicians that are able to do this as well. This can improve sales and open up a new vertical.
- A lot of tire shops also sell alloys, rims, and wheels. Customers who upgrade to a bigger profile tire want to also go with a new set of alloys. This can help in attracting a younger customer base who is always looking to improve the aesthetics of their cars.
Conclusion
Running a new or used tire shop can be a great business opportunity if you get your basics right. Setting up the shop, marketing it, and focussing on customer service can help make your tire shop successful. If you have any questions, you would like us to answer on the topic, let us know in the comments below. We will try our best to address as many of them as possible.
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