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Does a shop have to do tires?


Sean

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Greetings looking for feedback on tires and associated equipment. A shop I am in negotiations to purchase doesn't have any tire mounting or balancing machines or alignment for that matter. The owner claims that due to the big tire chain store in town he feels it is a loosing proposition. The chain store does a lot of free work. I was wondering what others have to say? I wasn't necessarily looking to start selling tires but being able to mount and balance seems like a positive thing. I could see being able to do winter tire switch overs and balancing as ways to get a ROI

Edited by Sean
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We do tires at our shop. We got a great deal on some used machines. We are in a high traffic area so we get a lot of walk in business for people with flats, etc. It's an added bonus to be able to offer tires to our customers instead of losing the business to someone else. We just hooked up with a new vendor for tires and we really make a decent profit on tires. We don't stock tires so they need to be done on an appointment basis. I think the profit is worth the investment in the machines.

Having a the ability to balance tires in house is a huge plus. A lot of our customers issues can be solved with just a re-balancing of their existing tires and it's great to be able to do that for them rather than send them elsewhere.

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I spoke to tire rack on the phone this morning and it was a promising conversation. I need to do some research on the types of machines I would need. I don't want to finance a bunch of expensive new equipment so I will be looking for used, refurbished on sale etc. I will avoid super cheap machines that won't last. Any thoughts ?

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I spent about $3500 2-3 years ago on a brand new set of Ranger tire machine and balancer. Ranger is made by Bendpak and is not a top machine like COATS but it has served me well since I've had it with some maintenance.

Edited by ATSAutomotive
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Can anyone point me in the direction of a good place to purchase the tire machine and changer? I have found some online I was just wondering if anyone has a company they love to do business with?

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New tires, seasonal snow tires, balancing tires and tire repairs are a good part of my business. Until recently I always had

Hunter tire machines and balancers. Two years ago I changed to Snap-on and they have been very good. Understandably both Hunter

& Snap-on are expensive but they both offer very good service when needed. I believe Snap-on is running equipment specials right

now and that could also mean that your Snap-on dealer may have info on used equipment if the new is too expensive for you.

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I'm the opposite of most shops on here. I'm a tire shop that does auto repair. The only thing that I will say is get a changer and balancer that will clamp on the outside of a 20" rim minimum. You will need it. Also you can make money on tires don't sell your self short. IF you have a Meyers tire supply that services your area the sell their house brand it built by corghi 9824 but has a 10year transmission warranty. worth the money.

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Corghi was one of the first rim clamp machines available. I had one years ago and had good luck with it. Service was a bit of an issue. I have been using Hunter for the last 15 years because they do have good service available, but we rarely need it.

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We are installers for Tire Rack, Tire Easy, and were for Discount Tire Direct before Discount Tire came to town. We pick up some addition work and customers from this.

 

Frank, I've been thinking about getting in on this as well. What percent of your tire sales would you say come from these sources?

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      Auto shop owners are always looking for ways to improve production levels. They focus their attention on their technicians and require certain expectations of performance in billable labor hours. While technicians must know what is expected of them, they have a limited amount of control over production levels. When all factors are considered, the only thing a well-trained technician has control over is his or her actual efficiency.
      As a review, technician efficiency is the amount of labor time it takes a technician to complete a job compared to the labor time being billed to the customer. Productivity is the time the technician is billing labor hours compared to the time the technician is physically at the shop. The reality is that a technician can be very efficient, but not productive if the technician has a lot of downtime waiting for parts, waiting too long between jobs, or poor workflow systems.
      But let’s go deeper into what affects production in the typical auto repair shop. As a business coach, one of the biggest reasons for low shop production is not charging the correct labor time. Labor for extensive jobs is often not being billed accurately. Rust, seized bolts, and wrong published labor times are just a few reasons for lost labor dollars.
      Another common problem is not understanding how to bill for jobs that require extensive diagnostic testing, and complicated procedures to arrive at the root cause for an onboard computer problem, electrical issue, or drivability issue. These jobs usually take time to analyze, using sophisticated tools, and by the shop’s top technician. Typically, these jobs are billed at a standard menu labor charge, instead of at a higher labor rate. This results in less billed labor hours than the actual labor time spent. The amount of lost labor hours here can cripple a shop’s overall profit.
      Many shop owners do a great job at calculating their labor rate but may not understand what their true effective labor is, which is their labor sales divided by the total labor hours sold. In many cases, I have seen a shop that has a shop labor rate of over $150.00 per hour, but the actual effective labor rate is around $100. Not good.
      Lastly, technician production can suffer when the service advisors are too busy or not motivated to build relationships with customers, which results in a low sales closing ratio. And let’s not forget that to be productive, a shop needs to have the right systems, the right tools and equipment, an extensive information system, and of course, great leadership.
      The bottom line is this; many factors need to be considered when looking to increase production levels. While it does start with the technician, it doesn’t end there. Consider all the factors above when looking for ways to improve your shop’s labor production.
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