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Old 8th October 2009, 16:17   #1
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Default How to get a tyre franchise

hi friends
I dont know whether this is the appropriate section or not. But i want to know the steps to get tyre franchisee in the city.What is the cost incured and other necesseties. Fast replies please ..thanx
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Old 8th October 2009, 16:43   #2
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PM Nikhilb2008, he can help you.
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Old 8th October 2009, 22:24   #3
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PM Nikhilb2008, he can help you.

If i could request you to please ask him to post it here so that others can benifit from it as well.Thankx
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Old 8th October 2009, 23:03   #4
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There are many aspects to it. Let me try to answer to the best of my knowledge.

First thing is to get the tyres. You can contact the tyre companies directly and tell them you are interested in becoming a dealer. They will then evaluate you and either accept or reject you. In all likelihood, they will accept you. Only some companies like Michelin, Yoko, Conti are a little fussy. They expect a certain level of service from the dealer to their customers. J C Road doesnt have a single authorised dealer for Yoko or Continental. This is just an example and might change in the near future.

The next thing is location. You need a good location. You need enough space for at least a table, a couple of chairs and a tyre changer, wheel balancer and an alignment pit and a machine. You also need place to stock your tyres.

Now, when it comes to investment, there are many many factors.

You could keep your costs low. Get cheap second hand tyre changers, wheel balancers and wheel alignment machines. You can skip on the air conditioning for oyur place and stuff like that. Keep it basic.

I cant tell you actual costs. The costs for the ABC(Aligner, balancer, changer) and an air compressor might come to about 3 lakhs or so. Basic tools, jacks, digging the alignment pit, another 1 lakh(max).

Then you add in the cost of renting the place, furnishing it, etc...

If you have a shop like this, then it's highly unlikely that you will get a dealership of Michelin or Yoko or Conti unless you know people in the company. However, as a start, this is good enough. JK, MRF, Bridgestone, Apollo will be happy to give you dealership or PCR(passenger car radials) and truck tyres.

OR

You could go in for the high end service routine. Get in top class equipment. 3D wheel aligners from Hunter, balancers, tyre changers capable of fitting ultra low profile tyres on huge 21" rims without damage to the rim or tyre and with only one person needed! Nitrogen inflators, short lifts(these are lifts which lift the car just a foot or two off the ground so all 4 wheels can be removed at once.). Short lifts help a lot if you need to change all 4 tyres or need to rotate the tyres. You dont need to jack up each wheel separately at a time.

Get a super silent screw type air compressor. Get a generator so that even if there is no power your customers are not made to wait. Get a UPS as well.

Then there is the showroom part. If you are going this way, build a nice showroom. Doesnt have to be large, but class and quality are important. A nice granite or glass top table with a few chairs. A couch next to which you can keep a few magazines for the customers, etc... A TV connected to a DTH box showing either the latest news or the ongoing cricket match. Some speakers discreetly placed in the cieling or at the corners of the showroom playing Worldspace to give a nice ambience to the place. Air conditioning is a must.

An internet cafe is also a nice touch.

In this model, the equipment itself would cost you close to 25 lakhs. All brand new. Also, if you get pneumatic guns, it will help in cutting down the time taken to do the job. And if the technicians know their job well(they will learn over a period of time), there will not be too many complaints of jammed nuts and bolts. You will also need a decent sized storage area to store the tyres, alloy wheels, etc. You will need a nice display stand or something in the showroom to showcase some of the tyres and alloys.

Most importantly, you will need a big parking space.

Last edited by Nikhilb2008 : 8th October 2009 at 23:04.
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Old 8th October 2009, 23:13   #5
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WOW!! Great post Nikhil.

It shows that you know the domain well and is not reluctant to share knowledge.

I have been thinking about setting up a small one in outer ring road/ sarjapur road area.

Last edited by PatienceWins : 8th October 2009 at 23:15.
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Old 8th October 2009, 23:24   #6
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BTW, the tyre changer I was talking about:

My dream one! This alone costs close to 9 lakhs and there isnt a single one of these in India right now.
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Old 9th October 2009, 17:29   #7
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Nikhil, I have a keen interest in the business side of the automotive industry. Thanks, your post was an eye-opener in many ways.
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Old 9th October 2009, 18:40   #8
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Thanxk nikhil for this.The only reason i requested you to post it here so that others can benefit from this.Thankx a lot again.
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Old 2nd December 2009, 16:18   #9
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Good Post Nikhil. I am in the automotive business- i own an independent Workshop. We repair cars and do denting & Painting. Even i was keen on getting a tyre dealership initially. Maybe at a later date, I can diversify.

Keep Up the good work!

Last edited by Puffdamgcdragon : 2nd December 2009 at 16:18. Reason: spelling mistake
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Old 2nd December 2009, 19:29   #10
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Quote:
Originally Posted by PatienceWins View Post
WOW!! Great post Nikhil.

It shows that you know the domain well and is not reluctant to share knowledge.

I have been thinking about setting up a small one in outer ring road/ sarjapur road area.
So whats the progress ??, or is it already in place.
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Old 2nd December 2009, 20:02   #11
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Default OTR Tires.

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Originally Posted by Nikhilb2008 View Post
There are many aspects to it. Let me try to answer to the best of my knowledge.
Hey Nikhil,
Superb post I must say. I too had a question in the tire arena. In case I have some business questions about OTR tires, can I contact you?

If anybody else in this forum knows the business of OTR tires, it would be great if he/she replies to this post and I will continue the discussion.
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Old 2nd December 2009, 21:12   #12
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N.devdath, what exactly do you need to know?
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Old 3rd December 2009, 10:14   #13
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Quote:
Originally Posted by Nikhilb2008 View Post
N.devdath, what exactly do you need to know?
Well, its like this. I m interested to know the possibility and procedure to apply and obtain an HEMM OTR Tire dealership for any reputed tire co along with the costs involved, the time required, the works.

I am aware of the market to sell these tires but do not know how to obtain their dealership.
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Old 3rd December 2009, 10:35   #14
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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.

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.

4). Stay away from Chinese tyres.
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Old 3rd December 2009, 10:42   #15
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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.
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