Just wondering what the average % markup for tires are in the industry?

Thx,
Steven

 

I was told by a vendor to be competitive if $10-$15 was made per tire to be happy. so I don't sell tires now, just refer friends to a buddy who owns a tire shop.

 

We averaged about $120.00 per set in light truck tires. This included profit on tires, as well as mounting and balancing. Alot of work and expensive equipment, for not much profit.

 

10-15$ a tire would not be worth it unless you sold a pile of tires and had cheap labor. Even then there is very little margin for error.

Some of that tire mounting equipment is very expensive and there is some liability involved with the whole works as well.

 

that is why i pass on the biz to a buddy of mine. Most shops make $$ on installation and most shops do alignments, brakes and other misc repairs.

 

How do the online companies like tirerack.com stay in business when they don't have the luxury of making up profits via alignments, etc?

I'm guessing volume and because of such high volume, they probably get better rates than most businesses?

 

says a tire cost 180(typical 285/75R16 tire). direct price is about 150. being an employee can get it to about 135. then there is a $2.50 tire disposal charge. which i think only costs something like 70 cents a tire. valve stems are $2-3 a piece. which are thrown around with little to no care. mounting an balancing is roughly $25 a tire. the average time for a replacing all 4 tire 12-20 min.

 

20-30% markup is normal.
Most tire shops make money when they sell you a brake job / alinement / and so on.

 

We make $20 to $30 dollars a tire. Not much profit in tires.

 

PM GSBrockman. He is a tire guy...

 

Great. Thx for all the info so far! You've all been very helpful.