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Old 3rd December 2009, 11:14   #16
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@nikhil

Thanks a ton buddy for the information. team BHP needs more guys like you. You have rooted a business seed in my mind as I was planning for quite sometime to start something in the tyre sections since the location where I stay does not have a decent tyre dealer/alignment services. Apart from the investment part I was also more interested to know if I also have to consider the following-
a) Does the tyre co have a branch office/warehouse in my home town so that I can get the tyres fast & easy
b) If I have to get tyres from some other nearby location, what is the logistics involved
c) Some kind of certification for the wheel alignment, balancing machines which can speak more about my business in Bold.
Pls let me know about your views regarding the above.
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Old 3rd December 2009, 11:19   #17
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Quote:
Originally Posted by shishir_bn View Post
Nikhil, thanks for the details which many many guys refuse to disclose. This thread will help so many people who want to start on their own. One more question i wanted to ask. Do we have to buy all the tyres and put them in the go-down or will the 2/3 months credit also work with some tyre manufacturers. This came to my mind because apart from 5L investment if we have to buy the tyres for all segments then it will end up with another 5L.

See, there is a credit period with most companies. But if you dont buy the tyres, how will your run the business? You need to have a minimum i9nventory of tyres in varios sizes. At least the OEM ones in 13, 14 and 15 inches.

You will have to factor in this investment also when you think about setting up shop.

Quote:
Originally Posted by ghodlur View Post
@nikhil

Thanks a ton buddy for the information. team BHP needs more guys like you. You have rooted a business seed in my mind as I was planning for quite sometime to start something in the tyre sections since the location where I stay does not have a decent tyre dealer/alignment services. Apart from the investment part I was also more interested to know if I also have to consider the following-
a) Does the tyre co have a branch office/warehouse in my home town so that I can get the tyres fast & easy
b) If I have to get tyres from some other nearby location, what is the logistics involved
c) Some kind of certification for the wheel alignment, balancing machines which can speak more about my business in Bold.
Pls let me know about your views regarding the above.
1). I'm not sure about Thane. But they will ALL definitely have huge godowns in Bombay. Contact them and see what they have to say.

2). If you have to get it from a nearby location(let's assume it as Bombay), then it depends. If you are getting the tyres directly from the company, they will deliver it to you on their own. They usually own trucks, goods autos, etc.... However, this cannot be done at your beck and call. You need to place an order with them one day or at least a few hours in advance. They will then send the entire shipment in one lot. They might even have a minimum order quota. You might have to order a minimum of 30-40 tyres to make it worthwhile for the company. Otherwise, you have to send your own vehicle to get the tyres.

3). There is no certification as such. The best in the business are John Bean Corporation and Hunter. JBC however are making their systems in China for now and quality has gone down. Hunter still make it in the US. Let's see how long before they also shift to China! Hunter however has been insisting that they will NEVER shift to China. Beissbarth is also a good company. They were one of the top companies in the world(with Hofmann) a few years ago, but they have declined in innovation, technology and reliability. However, Bosch has now bought over Beissbarth and is looking optimistically towards the future.

You need to decide whether you want to give the best possible service to your customers. If your answer is yes, dont look beyond th top companies like Hunter, etc.... In this case, you will HAVE to charge customers for WA/WB. You cannot afford to give anything free. But if oyu decide to go the low cost way and get some Indian makes(like Precision, Manatec, Aro, etc), then you can of course say you will offer Free WA/WB, etc....

Another thing to consider is that Hunter and JBC update their database regularly. So, within a week of any car's release, you will get the alignment data on your computer. And in some cases, even before. For example, we got the new W212 E Class data before the car was even launched here. This is because Hunter worked with Mercedes before the car was released worldwide.

Last edited by tsk1979 : 3rd December 2009 at 11:32.
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Old 3rd December 2009, 11:31   #18
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Originally Posted by Nikhilb2008 View Post
1). Find the companies who have a presence in India who deal with these tyres. Then send them an email.

2). As far as I know, not many companies make these kind of tyres and those who do already have a good number of dealers.
All/most tire majors are in the field of HEMM tires like Bridgestone. Pirelli, Yokohama, Michelin etc. The area where I want to focus doesnt have any dealer for them so far as it is clientèle is restricted to Govt customers only. Which is why I was trying to look into it.
I have tried sending emails through company websites but have not been able to get any response so far. Any contacts that you may have will certainly help a great deal in locating the appropriate person and office.

3). Your next option would be to get tyres from abroad. This is too much of a hassle and if you can do it, then go ahead. Again, contact the companies and say you are interested.[/quote]

Importing tires, like you said is a very lengthy and tiresome option.

4). Stay away from Chinese tyres.[/quote]

Absolutely.
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Old 3rd December 2009, 11:33   #19
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I too wanted to get into this business and mailed to a couple of Companies. They haven't replied so far. The area location I proposed were also will bring good business. Even though the companies are not interested to reply. Still I will continue mailing them,
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Old 3rd December 2009, 11:37   #20
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if you don't mind one more question. What might be the profit % we can get from the tyres. I mean to say if a tyre cost 1500/- MRP, what price does it cost us as a dealer/franchisee to get it. Sorry if this is not the appropriate question.
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Old 3rd December 2009, 12:00   #21
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Shishir, I cant actually tell you what that is! Hope you understand. If I could, no one would believe me!

What I will say is this: In a market like Bangalore, you CANNOT sell at MRP. If we could, it would be awesome(for us tyre dealers!). But you simply cant. You sell waaaaay below the MRP. The MRP for tyres is meaningless anywhere in India. But there are some areas in which tyre dealers enjoy good margins because there isnt much competition(small towns and cities).

The margins made on car tyres is pretty small. On truck tyres however, there is more money to be made, but at a risk. you will have to sell a huge number of truck tyres to fleet owners, transport companies, etc on credit. And if by chance one of them goes bankrupt, you lose all oyur money. But you can make a lot of money with the right contacts.

Today, the Bangalore tyre market is saturated. I know of a few people who started dealing with truck tyres about a year-year and a half ago and now they are stuck. They have huge debts and they really dont know what to do. This has nothing to do with the 'recession'. It's just that the older, more established guys would have cornered the market. If you enter now, you need to do something extra special. And in truck tyres, it's nearly impossible. The older, established guy would be able to sell the tyre at a better price compared to oyu and his name is also established in the market.
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Old 3rd December 2009, 12:13   #22
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Thanks for all the info and answers for my question. You have solved all my doubts along with replies
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Old 3rd December 2009, 12:26   #23
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Nikhil..You rock !

Hunter Auto34 - I thought i already saw this in your shop, or something similar ?

Quote:
Originally Posted by shishir_bn View Post
if you don't mind one more question. What might be the profit % we can get from the tyres. I mean to say if a tyre cost 1500/- MRP, what price does it cost us as a dealer/franchisee to get it. Sorry if this is not the appropriate question.
Though I am not a business guy, here is my 2 cents. Margins are fixed looking at various factors mainly the market prices.

Its simple logic, if dealer X fixes a margin of 10% on the cost price(price the dealer paid to the manufacturer/dsitributor), and if a similar product dealer Y fixes a margin of 15%, Y will loose customer to X if the customer finds the prices offered by X. Also Y will be known in the market for quoting high prices thus hampering his/her sales.

Ok Lets not talk about tyres, the logic remains same for any product.
If a street seller quotes his price as 100 bucks for a stuff that he has bought for 60 bucks, & if your bargaining skills can bring it down to 80 and if he accepts it, there is a win-win situation. You are happy that you were able to reduce the price and the seller will be happy for the fact that he earned a margin of 20 bucks !

Also I have noticed that there are dealers who setup their enterprise out of passion/interests for the product/service while there are others who venture out by plainly looking at the ROI from the product/service. The one with passion/interest might compromise their margins to keep the customer satisfied and build long term relations, while the other wont budge from their MRPs which includes their desired margins.

Now the dealers who buys goods on credit will have their margins higher than the dealers who buy their goods by paying upfront(if its bulk purchase margins will be further lesser).

I dont know if I made sense here. Entrepreneurs here can provide their valuable responses.
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Old 3rd December 2009, 13:12   #24
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Siva --- We dont have the Hunter Auto 34 yet! :( I'm pestering my dad to get it! I'm almost successful! Let's see... we should get it by the end of the year or the beginning of the year
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Old 4th December 2009, 01:43   #25
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Nikhil, in one of your earlier posts you mentioned about the ultimate Store with 3D Aligners, Short lifts, Nitrogen, Lounge, Internet Access etc. Well, there is one such store which I happened to visit in Faridabad. It's NCR's first Bridgestone Select Super, ultimate destination with all latest equipments. They've 7 3D Alignment machines and out of them 3 are Hunter's and 2 are Hofmann's, I didn't see the rest two. As the Hunter was busy, Xing's alignment was done on Hofmann having the car placed on a large hydraulic platform. Moreover, nowhere a jack can be seen.

Check my thread on this, http://www.team-bhp.com/forum/tyre-a...ml#post1604981 (Bridgestone Select SUPER - Faridabad) . Anyone if interested in having a world-class outlet, I believe they should check this store personally and aim to bring up something better. What's the fun in doing what everyone else does, be different and make a mark like the store I went to did. Nikhil, I was wondering about your absence from the Select Super thread, provide your feedback there.

Link to the webpage of the equipments I saw there:
Hofmann's Wheel Balancer : Hofmann Wheel Alignment Products - geodyna Optima Page - Automotive Wheel Service Equipment
Hofmann's Alignment Platform : Hofmann Alignment Lift Products - 14K Scissor Page - Automotive Wheel Service Equipment
Hofmann's Lift for lifting vehicle to remove tyres: Hofmann Specialty Lift Products - Mid-Rise Page - Specialty Wheel Service Equipment

Another major point for Tyre store owners, please make sure that your labour takes utmost care of the equipment and use them in the desired way with no short-cuts or jugaads. One of the mechanics at Select Super hammered the nut on the platform itself, though the platform won't break but it's nothing but torture to the brand new equipment. It's sheer waste of capital investment of the owner if the labour itself has no loyalty towards the equipment from which they earn their bread and butter.

Last edited by tsk13 : 4th December 2009 at 01:57.
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Old 4th December 2009, 07:11   #26
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TSK, it's nothing new. I'm sorry to brag, but fact is, we are not exclusive with any company and we have always been among the first to implement the latest and greatest machines. So, seeing such top class equipment in a tyre shop is old news for us! We've been working at making this happen for a long time! Also, from where do you think that Bridgestone Super Select shop got their Hunters from?

Our shop was the first in India to use computerised wheel alignment and wheel balancing in 1982. We were the first in Bangalore and pretty much South India to offer Nitrogen Inflation. We're the first to use short lifts in Bangalore for tyres shops. We're the first in B'lore to use 3D wheel alignment. My uncle's shop in Mysore was the first to use 3d Wheel Alignment in Karnataka. The first in India honour actually goes to Ashoka Wheels, Hyderabad. We will now be the first in India to have the hunter Auto 34(see my second post on the first page). Of course, when it comes to purely size, it's nothing compared to some of these new shops though.

The thing is, all "X-company" exclusive shops have to have top of the line equipment. Bridgestone pays for part of it. So, they have no excuses. They have to have top class equipment. Go to any Michelin Priority Partner also. They will also have top of the line equipment there.


Hofmann today is a pale shadow of it's former self. My dad started business with Hofmann. He did that for almost 15 years, but then it got taken over by Snap On group and they almost shut it. Hofmann now just sells JBC machines branded Hofmann. It's a sad end to one of the best German Engineering companies :(. The best people in that company have now moved away to other companies.

Last edited by Nikhilb2008 : 4th December 2009 at 07:16.
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Old 4th December 2009, 07:43   #27
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Cant edit my post.

So, mods, please merge this with the previous one.

TSK, a hydraulic lift for alignment isnt actually necessary unless they cant dig alignment pits. Alignment pits are much cheaper and the alignment is also done faster. The Hydraulic lift is a solution if they dont want to dig(maybe the workshop isnt on the ground floor, etc...) and it looks fancy and impresses people! But if the tyre shop owner wants to save some cashand invest it elsewhere, then alignment pits are the way to go.
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Old 4th December 2009, 12:55   #28
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Nikhil..You dad will be exhilarated when he reads your posts !!! always wanted to ask.Is you dad part of team-bhp ? Sorry if this is too personal !!
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Old 4th December 2009, 13:05   #29
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Siva- --- He's a member, but he stopped logging in when I became a full time member!

http://www.team-bhp.com/forum/members/ravibm.html
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Old 4th December 2009, 13:29   #30
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So full family is into tyre business and full family is helping out the people with their tyre queires with lastest technology and you are helping us with the franchise details and full family is a BHPian
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