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AutomotiveU.S. scenario · USDIllustrative operating case

Tire shop startup costs and financial model

An independent leased U.S. three-bay passenger- and light-truck tire retail and service shop with a paid owner-manager and service advisor, three technicians and one shop helper or second advisor at maturity. The shop sells new tires and performs mounting, balancing, puncture repair, rotations, TPMS service and wheel alignment. It excludes retreading, heavy commercial-truck tires, towing, mobile roadside work, broad mechanical repair and jurisdiction-specific inspections unless separately authorized, trained, insured and modeled. Each vehicle order closes with the vehicle, tires or services, units, technician and bay time, direct cost, discounts, credits, tax treatment, collection and any rework recorded.

Capital to open
$700,000

$200,000–$1,500,000 by launch scope

Year 3 revenue
$2,340,000

Annual modeled sales

Year 3 EBITDA margin
15.7%

Before interest, tax and depreciation

Operating break-even
Month 4

Base monthly ramp; not capital payback

This operating case allocates $700,000 to opening the business and forecasts $368,000 in Year 3 EBITDA. Payroll includes working-owner labor where applicable. These are planning assumptions; EBITDA is not cash available to the owner.

Ink-and-watercolor three-bay tire shop with two unbranded passenger vehicles, tire racks, lifts, tire-changing and wheel-balancing equipment and a customer counter, with no people or logos.
Model updated Research record dated 12 sources and input evidenceScope and limitations
Business score · editorial assessment
4.6 / 10

Compare business scores in the catalog →

Five dimensions, each scored from the operator's point of view. Higher is more favorable on every dimension.

Read the five-component breakdown →
On this page
Decision framework

How this business scores, and why

An editorial comparison of operating conditions, not a probability of success, a customer rating or a promise of returns. Read the evidence beside each assessment.

Weighted total

4.6 / 10

The total combines the five assessments below using the published weights.

See current collection rankings →

Read the scoring methodology →

Barrier to entry

Higher means easier entry.

15% weight
5.0 / 10

Conventional commercial premises and available shop equipment can support the format, but a suitable automotive site, utilities, installed lifts, inventory, trained staff and working capital create a substantial coordinated opening.

Evidence and assessment basis

Supported facts: Census defines the tire-dealer scope; OSHA identifies specific rim-wheel service controls; current BendPak listings show that major equipment is commercially available. Assumptions: a compliant three-bay site, permits, insurance and qualified staff can be secured. Judgment: anchor 5, because the prerequisites are available but the dedicated site, fixed plant and inventory create a meaningful committed opening. No site, installation or insurance quote supports anchor 6.

Sources support the underlying facts. The numerical assessment is an editorial judgment.

Competition

Higher means more favorable competitive conditions.

20% weight
4.0 / 10

National chains, dealers, general repair shops, warehouse clubs, online tire sellers and local specialists make price, availability and appointment comparison easy.

Evidence and assessment basis

Supported fact: AIES reports a large national tire-dealer sector under the older classification, but it does not identify competitors in a launch territory. Assumption: the local customer can compare several installed-tire alternatives. Judgment: anchor 4, because the market is accessible but crowded and ordinary differences in brand assortment, speed and service have limited protection. No current local quote and availability audit supports anchor 5.

Sources support the underlying facts. The numerical assessment is an editorial judgment.

Demand stability

Higher means more stable demand.

25% weight
5.0 / 10

Tire wear, damage, replacement and routine service create repeat need, while timing varies with mileage, weather, household budgets, fleet use and customers' ability to defer nonurgent work.

Evidence and assessment basis

Supported facts: Census recognizes an active tire retail and repair category, and NHTSA describes recurring tire selection, balancing, alignment and rotation needs. Neither source measures local order flow or seasonality. Assumption: the shop serves a diversified base of local vehicle owners rather than one fleet. Judgment: anchor 5, because a recurring safety and maintenance baseline exists alongside meaningful timing and spending variability. No local order history supports anchor 6.

Sources support the underlying facts. The numerical assessment is an editorial judgment.

Margin ceiling

Higher means greater supported operating-profit potential.

20% weight
5.0 / 10

A balanced tire-and-service mix can cover paid labor and shop overhead, but inventory cost, discounting, low-value service, rework and underused bays can remove the operating cushion quickly.

Evidence and assessment basis

Supported facts: vendor listings establish that equipment requires material capital, while AIES shows a substantial operating sector but not margin. Assumptions: a $650 weighted retained order, 12 completed orders per day, 45% contribution and $57,083 monthly fixed cost. Judgment: anchor 5, because the Year-three case leaves $368,000 before depreciation, financing and tax, yet break-even moves above eight orders when margin falls to 38%. No local invoice, purchase or bay-time records support anchor 6.

Sources support the underlying facts. The numerical assessment is an editorial judgment.

Owner dependency

Higher means less dependence on the owner's continuous involvement.

20% weight
4.0 / 10

Trained technicians can perform routine tire work, while the owner remains responsible each operating day for buying, pricing, workflow, exceptions, safety, customer authorization and cash control.

Evidence and assessment basis

Supported facts: OSHA requires training and proficiency for covered rim-wheel service, and NHTSA guidance makes tire selection and service decisions consequential. Assumption: the owner is the manager and service advisor, with no separate general manager. Judgment: anchor 4, because employees can complete routine work but daily coordination and unresolved service decisions remain owner-led. No trained alternate manager or absence test supports anchor 5.

Sources support the underlying facts. The numerical assessment is an editorial judgment.

Who pays you, and what for

Review the customer, offer and operating scope behind the numbers before adapting them to your own plan.

Operating model
A leased three-bay shop with a paid owner-manager, three technicians and one support role at maturity.
Revenue logic
Completed collected vehicle orders multiplied by retained order value, then reconciled to tire units, service lines and bay capacity.
Year-three case
Twelve $650 orders per day, $2.34 million revenue and $368,000 simplified operating result.
Primary gate
Prove traffic, conversion, order mix, contribution and technician and bay time across 60 paid orders.
Scope boundary
Retreading, heavy commercial tires, towing, mobile work, general repair and inspections remain outside the base case.
Format
Independent leased passenger- and light-truck tire shop with three service bays
Revenue unit
One completed, received, invoiced and collected vehicle order
Trading schedule
6 days per week and 50 forecast weeks
Mature throughput
12 shop-wide completed vehicle orders per trading day
Base retained order
$650 weighted across minor service, two-tire, four-tire and higher-scope outcomes

Who are you actually bidding against?

National sector data cannot identify local tire chains, dealers, repair shops, warehouse clubs, online-installed offers, inventory or appointment availability. A current matched-offer audit remains required.

Local market assessment pending. The checklist below identifies research to complete; it is not a measured competitor sample.

Compare the questions across each row. Scroll the table horizontally on a small screen →

Competitor research checklist · no measured local sample
Offer to investigateCompare like for likeEvidence to collect
Tire chains and independent specialistsSame tire size and brand tier, installed price, included services, availability, appointment time, warranty and disposal.Current written quote, stock confirmation, earliest appointment, terms and date.
Dealers and general repair shopsOEM fitment, service scope, alignment, TPMS, inspection, loaner or waiting options and total authorization.Current matched quote, inclusions, technician and bay timing, warranty and date.
Warehouse clubs and online-installed offersMembership, tire price, shipping, installer fee, scheduling, road-hazard terms, returns and local service access.Current complete cart or written quote, installer appointment and cancellation terms.

What supports the model, and what strains it

These are operating considerations for the scenario, not measured advantages over local competitors.

Potential strengths to validate

  • The revenue unit is auditable. Each completed vehicle order can connect sold units, service lines, direct cost, time, payment and rework.
  • Inventory and service can reinforce each other. A supported tire sale creates installation work, while measured service can improve customer retention.
  • Three bays allow mix management. The schedule can separate shorter tire work from four-tire and alignment orders when skills and equipment support it.

Tradeoffs to plan around

  • Inventory absorbs cash. Size and category breadth can improve availability while increasing aging, returns, shrink and obsolescence.
  • One order can consume different capacity. A puncture repair, two-tire order and four-tire alignment cannot share one assumed service time.
  • Installed price is easy to compare. Chains, dealers, clubs and online sellers make incomplete or opaque quotes difficult to defend.

Does this operating role fit you?

Evaluate the work you will do and the cost of replacing it. Review the owner responsibilities in the operating scope.

A fit to explore if you can…

  • Prepared to reconcile every order to units, direct cost, technician time, bay time and collection.
  • Comfortable controlling tire fitment, rim-wheel procedures, equipment and quality records.
  • Willing to limit stocked sizes and services until local order and inventory evidence supports expansion.

Reconsider the plan if you need…

  • Wants to stock a broad tire range before measuring local size and category demand.
  • Treats every vehicle order as equal bay capacity.
  • Plans pricing from competitors' tire-only ads without matching installation, fees, service and warranty terms.

Where the $700,000 goes

The authored $700,000 case funds a leased three-bay site, installed tire and alignment equipment, $170,000 of opening stock and parts, setup and $150,000 of reserve. The reserve is planning liquidity, not proof of monthly sufficiency. The $200,000 low case assumes a small fitted site, used equipment, narrow stocked range and distributor access; the $1.5 million high case allows extensive building work, new equipment, deeper inventory and reserve. Current BendPak pages anchor only selected machine and lift components. Freight, installation, utilities, alignment measurement, calibration, permits, insurance, inventory terms and site work require actual quotes.

Leasehold, electrical, compressed air, bay and site work
$160,000
Tire, balancing, alignment, lift, compressor and tool systems
$140,000
Opening tires, wheels, TPMS parts, weights and consumables
$170,000
POS, phones, security, furniture and signage
$30,000
Registration, insurance, deposits and professional fees
$25,000
Preopening payroll, training and launch marketing
$25,000
Working-capital reserve
$150,000
TotalScenario range $200,000$1,500,000$700,000

Where does the money come from?

Price, daily volume and the operating calendar define this capacity scenario. Check the sold-unit definition in the operating scope.

Retained sale per completed vehicle order$650.00per sold unit
Shop-wide completed vehicle orders per trading day12modeled daily volume
Mature monthly revenue$202,6446 days/week · 4.33 weeks/month

Revenue mix

The $650 retained order is an authored weighted result, not a universal installed-tire price. Actual invoices separate tire units, category, installation, balancing, alignment, repair, TPMS, fees, discounts, sales tax, credits, payment and rework.

Seasonality and the opening ramp

The forecast smooths 50 trading weeks. Replace it with monthly mileage, weather, pothole, fleet, holiday, tax-refund, travel, winter-tire and local vehicle-registration patterns where relevant.

What does the revenue have to cover?

Year 3 annual amounts from the income statement. The bars use the same revenue scale; EBITDA is the residual after the three operating expense lines.

Year 3 revenue$2,340,000
Tire inventory, service materials, card fees and other sales-linked costs$1,287,000
Paid owner-manager, service-advisor, technician and shop-support payroll$370,000
Rent, utilities, equipment, insurance, software, marketing and overhead$315,000
EBITDA$368,000

Working-owner pay belongs in payroll. Interest, income taxes, loan principal, replacement equipment and changes in working capital affect cash available for distributions.

Five-year view · scroll the income statement horizontally to compare every year →

Five-year forecast

The authored five-year case grows from six to 16 shop-wide completed vehicle orders per trading day at a $650 retained weighted order, six days and 50 weeks. Year three uses 12 orders and produces $2,340,000. Sales-linked costs are 55%. Payroll includes paid owner-manager and service-advisor labor, three technicians and one helper or second advisor at maturity, plus an employer-cost allowance. Years four and five require demonstrated bay and technician capacity, a faster service mix, longer staffed hours or funded expansion; they are not implied by lead volume. Results exclude depreciation, financing, income tax, replacement capital, working-capital timing and distributions. The web calculator uses 4.33 weeks per month and mature fixed costs, so it does not reproduce the annual ramp exactly.

RevenueEBITDA
Tire Shop income statement · annual USD
Income statementYear 1Year 2Year 3Year 4Year 5
Revenue$1,170,000$1,755,000$2,340,000$2,730,000$3,120,000
Tire inventory, service materials, card fees and other sales-linked costs−$643,500−$965,250−$1,287,000−$1,501,500−$1,716,000
Paid owner-manager, service-advisor, technician and shop-support payroll−$285,000−$330,000−$370,000−$420,000−$480,000
Rent, utilities, equipment, insurance, software, marketing and overhead−$285,000−$300,000−$315,000−$340,000−$380,000
EBITDA−$43,500$159,750$368,000$468,500$544,000
EBITDA margin-3.7%9.1%15.7%17.2%17.4%
Annual forecast and calculator comparison

The annual forecast and calculator use separate scenarios. Their revenue ramp or cost allocations differ, as shown below. The calculator's break-even month does not reconcile the annual forecast.

Original base inputs · USD per year
CheckAnnual forecastCalculator inputs
Year 1 revenue$1,170,000$1,957,541
Year 1 operating result−$43,500$195,897
Year 3 / mature annual operating result$368,000$409,282

Calculator figures use the original first 12 months and mature monthly result × 12; sliders do not change this comparison. Neither column measures cash flow or payback. Input basis.

Revenue CAGR: 27.8%. Annual USD. EBITDA excludes interest, tax, depreciation and amortization.

When you break even

Set the three inputs to your own plan. The ramp starts at 50.0% of mature volume and adds 6.0 percentage points a month.

Monthly revenue over the first 12 months. Darker bars clear the operating break-even line.

Operating break-even
Month 4
Revenue at maturity
$202,644 / mo
Break-even revenue
$126,851 / mo
Break-even volume
8 / day
Fixed costs
$57,083 / mo

Use the volume definition in the operating scope. This sensitivity keeps fixed costs and contribution margin constant; it does not rebuild the annual income statement. Operating break-even covers monthly fixed operating costs. It does not recover the opening investment.

Two numbers that decide the outcome

Price and daily throughput define the operating case. The range endpoints are sensitivity scenarios; test whether your location can support them.

Retained sale per completed vehicle order
$250.00$1,200.00
$650.00
this model
Shop-wide completed vehicle orders per trading day
518
12
this model

What if the schedule is lighter, or fuller?

Only daily volume changes. All three cases keep the invoice at $650.00, the schedule at 6 days per week, fixed costs at $57,083 per month and contribution margin at 45.0%.

Lower throughput

Use the low end to test a thinner schedule.

Shop-wide completed vehicle orders per trading day
5
Mature monthly revenue
$84,435
Operating break-even
Not reached
Not reached in the 12-month ramp.

Base throughput

The current modeled daily schedule.

Shop-wide completed vehicle orders per trading day
12
Mature monthly revenue
$202,644
Operating break-even
Month 4
First month contribution covers fixed costs.

Higher throughput

Validate the operating capacity first.

Shop-wide completed vehicle orders per trading day
18
Mature monthly revenue
$303,966
Operating break-even
Month 1
First month contribution covers fixed costs.
Capital payback needs a cash-flow schedule. The current forecast has no cumulative cash balance after funding, taxes, debt principal and future capital spending. No payback date or lowest cash balance is reported.

What can go wrong, and what should you test?

Use these checks to challenge the operating assumptions before taking on commitments.

Wrong tire or fitment

The shop orders or installs a tire that does not match the supported vehicle, wheel, load or use.

Check: Verify vehicle and tire specifications against authoritative fitment information, document authorization and stop when the match is uncertain.

Rim-wheel service hazard

Inflation or wheel service exposes a worker to stored-energy or trajectory hazards.

Check: Apply the task-specific OSHA standard, training, restraining device or barrier, inflation equipment, charts, inspections and trajectory controls.

Slow or obsolete inventory

Cash remains tied in sizes or categories that do not sell or cannot be returned.

Check: Use a SKU-age and turns ledger, distributor terms, reorder limits and written special-order rules.

Bay-capacity mismatch

The sold order mix needs more technician or alignment time than the daily schedule provides.

Check: Measure time by order class, reserve the constrained equipment and cap bookings before overtime, delay or rework rises.

Margin leakage

Discounts, freight, returns, rebates, supplies, card fees, comebacks and warranties reduce the expected contribution.

Check: Close invoice-level landed cost and credits and review contribution by order class, category and technician.

Waste-tire noncompliance

Storage, hauling, records or fees do not follow the actual jurisdiction's rules.

Check: Build a local waste-tire requirement matrix, use authorized handlers and retain the required manifests and receipts.

Underfunded ramp

Site, inventory and payroll payments arrive before repeat collected demand.

Check: Build a dated monthly cash schedule, obtain supplier terms and preserve a reserve after equipment and opening stock are paid.

What would invalidate this scenario?

Choose your own go/no-go thresholds before committing funds. The page does not establish a universal stop-loss rule.

Before signing a lease
Pause until automotive use, bay dimensions, lifts, electrical, compressed air, drainage, signage, waste handling, permits, insurance and total installed cost are documented.
Before stocking
Do not buy broad tire depth without local vehicle, size, quote, lead-time, return and margin evidence.
Before accepting work
Exclude unsupported vehicle, tire, wheel, load, damage or service conditions and any task outside authority, training, equipment or insurance.
Before inflation or rim service
Stop when the assembly, condition, procedure, restraining device, inflation equipment, chart or worker proficiency is uncertain.
Before scheduling 12 orders
Require paid time studies showing that the actual mix fits technician, bay, changer, balancer and alignment capacity with quality checks and rework visible.
During operations
Pause order classes, categories or acquisition channels whose landed cost, delays, returns, rework or collection erase required contribution.

What needs to be true before you proceed?

Treat this page as a starting case to verify. A favorable spreadsheet result is only useful when its price, capacity and cost assumptions can be supported.

  1. Which tire, vehicle and service scope is included?
  2. Which registrations, repair rules, worker controls and waste-tire duties apply?
  3. What tire sizes and categories produce local paid demand?
  4. What is the retained order and contribution by outcome?
  5. How many technician and bay minutes does each order class consume?
  6. What are supplier lead times, freight, returns, rebates and credit terms?
  7. What do named local alternatives quote for the same installed scope?
  8. What cash remains after site work, equipment and opening inventory?
Return to the calculator and challenge the schedule →

StartFigures analysis · AI-assisted

Author's view

Celia HartwickEditorial author

I would advance this three-bay tire-shop case only after the owner proves that a narrow stocked range and the actual service mix can produce at least eight completed collected orders per day without overrunning technician or bay capacity.

At maturity, 12 completed $650 vehicle orders across 300 trading days produce $2.34 million of Year-three revenue; a 45% contribution margin leaves $1.053 million before $685,000 of paid payroll and overhead.

The continuous operating threshold is about 7.51 completed orders per trading day. The practical eight-order threshold leaves little protection if contribution falls to 38%, while the 12-order plan needs an explicit mix and time study across three bays.

The verified paid workbook fits the retail logic well: visitors become new and repeat buyers, then orders become units allocated across categories and prices. Service lines and physical bay capacity still need a separate reconciliation.

What could change the view

The main risk is committing cash to site work and broad inventory before local tire-size demand, landed margin and order-level bay time show that the stocked range can turn fast enough to fund the operation.

Who this format suits

The case suits an owner who will manage inventory, customer authorization, service flow, safety and invoice-level margin together. It is a poor fit for an owner who treats high tire sales as proof of cash generation while stock aging, discounts, rework and bay congestion remain unmeasured.

Before committing

Confirm automotive-use, repair, waste-tire, insurance and equipment requirements; obtain matched site, installation and distributor quotes; then complete 60 paid orders while recording traffic, conversion, tire units, service mix, landed cost, technician time, bay time, rework and collection.

What is planned for the editable workbook?

An illustrative worksheet layout using this page's inputs. It is not a screenshot or a download of a finished Excel file.

Tire Shop · Operating assumptionsIllustrative layout

Scroll to read the worksheet →

Current model inputs · USD unless stated
InputModelUnit
Opening capital$700,000one-time
Retained sale per completed vehicle order$650.00per sold unit
Shop-wide completed vehicle orders per trading day12per day
Operating schedule6days / week
Fixed operating costs$57,083per month
Contribution margin45.0%input assumption

The published calculator and annual forecast are separate views. The downloadable workbook requires its own separate calculation review.

Store traffic, conversion and buyer cohorts

The paid workbook turns daily store visitors and seasonality into new buyers, then tracks repeat-customer participation, lifetime and order frequency.

A verified worksheet screenshot is not yet available.

Orders, units, category mix and pricing

Converts first and repeat orders into units, allocates units across product categories and applies category prices to build retail revenue.

A verified worksheet screenshot is not yet available.

Inventory, direct costs and operating expenses

Separates tire and service direct costs, revenue-linked expenses and fixed operating categories across monthly periods.

A verified worksheet screenshot is not yet available.

Payroll, bays and service capacity

Schedules paid roles and employment costs while the operating bridge reconciles completed orders to technician and bay minutes.

A verified worksheet screenshot is not yet available.

Capex, funding and cash

Times site work, equipment, opening inventory, launch costs and reserve uses and links funding assumptions to cash flow.

A verified worksheet screenshot is not yet available.

Scenarios, statements and dashboard

Connects traffic, cohorts, categories, costs, payroll and funding to low, base and high cases, financial statements and management views.

A verified worksheet screenshot is not yet available.

The planned business plan has 10 pages. Its contents and the three file prices are listed below.

Get the editable files

Word for the written plan. Excel for the assumptions and calculations. One-time prices in USD. Bundle adds both products to one cart.

$59
  • Editable Word business plan
  • A leased three-bay passenger- and light-truck tire retail and service scope with paid owner, advisor, technician and support labor
  • A weighted $650 completed vehicle order reconciled to tire units, service lines, direct cost, technician time, bay time and collection
  • Launch gates for automotive authority, tire and waste-tire handling, training, insurance, equipment commissioning, inventory terms and paid local demand
  • A direct E01 retail fit: the paid workbook uses visitors, conversion, repeat buyers, orders, units, category mix and category prices, with a separate bay-capacity bridge

$109
  • Five-year monthly Excel forecast
  • Startup cost and funding schedule
  • Break-even and unit economics
  • Three scenarios with visible formulas

Bundle

Both products
$168
  • One Business Plan for your selected business
  • One matching Financial Model
  • Editable Word and Excel formats
  • Two products, one checkout

Need it built for your business? Review the custom model + plan scope → Project quote · Schedule agreed with you

What do you need before the first job?

Confirm these items for your location and operating scope. This checklist does not assert that a particular license, insurance policy or employment arrangement is sufficient.

Authority and safety evidence

  • Automotive use and registration matrix
  • Task-specific rim-wheel and equipment procedures
  • Training and proficiency records
  • Insurance and waste-tire handling evidence

Order and capacity evidence

  • Sixty paid order records
  • Visitors, quotes, conversion and repeat-order ledger
  • Tire units, service mix, technician and bay time
  • Rework, warranty, credits and collection log

Market and inventory evidence

  • Named competitor matched-offer table
  • Local vehicle and tire-size evidence
  • Distributor availability, freight, return, rebate and credit terms

Financial evidence

  • Site and complete installed-equipment quotes
  • Opening SKU plan and inventory funding schedule
  • Local payroll and workers' compensation quote
  • Twelve-month order, purchasing and cash schedule

Where could this model miss your situation?

Most financial inputs are author-selected assumptions. The source register explains what is supported and what still needs local validation.

Broad national evidence

AIES uses an older national tire-dealer classification and cannot establish local demand, supply, price or margin.

Authored economics

The $650 order, 12 daily orders, 45% contribution and $700,000 budget are assumptions.

Component quotes

The vendor pages cover selected machines and lifts, not a complete installed three-bay facility.

Jurisdiction examples

California registration, tire-fee and waste-tire sources do not decide requirements elsewhere.

Completed-order abstraction

Every order must reconcile visitors, conversion, tire units, service lines, direct cost, technician and bay time, rework and collection.

Product adaptation

The paid workbook fits the retail engine, but the public weighted order still needs line-item and capacity bridges; the paid plan's Charlotte facts and figures must be replaced.

No return promise

Operating result excludes depreciation, financing, income tax, replacement capital, working-capital timing and distributions.

Editorial state

The site owner reviewed and approved this AI-assisted planning analysis for publication on September 15, 2026. That review does not establish local fieldwork, feasibility or an investment recommendation.

Extended analysis: editorial basis

Prepared September 15, 2026 from the cited public and product sources plus explicit StartFigures assumptions. The site owner reviewed and approved the current three-bay passenger- and light-truck tire retail and service case for publication. This is a nationwide planning scenario, not local fieldwork, a feasibility finding or an investment recommendation.

Methodology and sources

Format
Independent leased passenger- and light-truck tire shop with three service bays
Revenue unit
One completed, received, invoiced and collected vehicle order
Trading schedule
6 days per week and 50 forecast weeks
Mature throughput
12 shop-wide completed vehicle orders per trading day
Base retained order
$650 weighted across minor service, two-tire, four-tire and higher-scope outcomes

We built this StartFigures case by defining a narrow three-bay passenger- and light-truck tire retail and service scope, checking official industry, wage, tire-safety, rim-wheel and jurisdictional sources, reviewing current equipment components and verifying the matching paid products. We then created a five-year completed-vehicle-order scenario and a weighted order across minor service, two-tire, four-tire and higher-scope outcomes. Every budget, order value, mix, throughput, cost, payroll and ramp is an authored assumption. Local authority, site, utilities, insurance, training, distributor terms, inventory, tire sizes, prices, customer acquisition, bay time, technician time, rework, collections and competitor quotes must replace it before investment. The matching paid workbook has a high-confidence E01 retail engine using visitors, conversion, repeat buyers, orders, units, category mix and prices; the public completed-order case therefore needs an explicit line-item and bay-capacity reconciliation rather than a different revenue engine.

Read the full methodology →

Model updated · NAICS 441340

  • NAICS 441340 — Tire Dealers
    U.S. Census Bureau · primary · accessed September 15, 2026

    Defines establishments primarily retailing new or used tires and tubes, or combining new-tire retail with automotive repair services. Tire retreading and wholesale tire distribution belong to other industries, so the StartFigures scope excludes them.

  • 2023 Annual Integrated Economic Survey: Tire Dealers
    U.S. Census Bureau · primary · accessed September 15, 2026

    Reports $44.803 billion of sales, $8.603 billion of annual payroll and 171,139 employees for national Tire Dealers under the older 2017 NAICS 441320 classification. It is broad national sector context, not a local demand forecast, competitor count or margin benchmark.

  • Automotive Service Technicians and Mechanics
    U.S. Bureau of Labor Statistics · primary · accessed September 15, 2026

    Reports a May 2025 national median annual wage of $50,620 for automotive service technicians and mechanics. The occupation is broader than tire service and does not set a local wage offer, staffing plan or employer cost.

  • 29 CFR 1910.177 — Servicing Multi-Piece and Single Piece Rim Wheels
    Occupational Safety and Health Administration · primary · accessed September 15, 2026

    Sets training, equipment and safe-operating requirements for covered rim-wheel servicing, including restraining devices or barriers, inflation equipment, manuals or charts and trajectory controls. Exact duties depend on the wheel and task.

  • Tires and TireWise
    National Highway Traffic Safety Administration · primary · accessed September 15, 2026

    Provides consumer safety guidance on selecting the correct tire size, balancing new tires, alignment and rotation. It supports the operating scope but does not establish shop prices, demand or technician competence.

  • Apply for an Automotive Repair Dealer Registration
    California Bureau of Automotive Repair · primary · accessed September 15, 2026

    States that a California business diagnosing, servicing or repairing motor vehicles for compensation must register as an automotive repair dealer and lists a $200 application and $200 annual renewal fee. It is one jurisdictional example, not a national license rule.

  • Special Taxes and Fees Rates — California Tire Fee
    California Department of Tax and Fee Administration · primary · accessed September 15, 2026

    Lists a $1.75 California tire fee per new tire and directs retailers to applicable registration, collection and reporting requirements. The fee is a dated state example and must not be applied nationally.

  • Waste Tire Generator Requirements
    California Department of Resources Recycling and Recovery · primary · accessed September 15, 2026

    Explains California waste-tire generator duties, including use of registered haulers, a Tire Program Identification number, trip-log handling and receipt retention. It is a state example, not a complete national disposal rule.

  • R76ATR and DST30P Tire Changer and Wheel Balancer Package
    BendPak · vendor · accessed September 15, 2026

    Displayed a $10,795 price for one tire-changer and wheel-balancer package when accessed. It is a component quote and excludes the complete three-bay equipment set, freight, installation, utilities, calibration and shop fit-out.

  • Alignment Lifts
    BendPak · vendor · accessed September 15, 2026

    Displayed alignment-lift examples from $11,615 to $23,805 when accessed. These are individual lift configurations and do not include an alignment measurement system, freight, installation, electrical work, calibration or a complete bay.

  • Calculate your startup costs
    U.S. Small Business Administration · primary · accessed September 15, 2026

    Provides a framework for separating one-time and monthly startup costs. It does not provide a tire-shop budget, rent quote, equipment package or reserve requirement.

  • Publication 15 (2026), Employer's Tax Guide
    Internal Revenue Service · primary · accessed September 15, 2026

    Provides federal employer payroll-tax guidance. Workers' compensation, unemployment insurance, overtime, benefits, leave and local employment costs require separate calculation.

How should you compare another service business?

No measured national benchmark or comparable local sample is supplied here. Compare the actual operating scopes before comparing outputs.

Keep the comparison consistent

  • Opening budget and reserve coverage.
  • Paid owner labor and employer burden.
  • Daily units, travel time and operating days.
  • EBITDA versus cash available for distribution.

Available scenario comparisons

These compare illustrative models on StartFigures, not observed industry averages.

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What else do people ask?

How much does the StartFigures tire shop case cost to open?

The authored base allocation is $700,000, with a $200,000 low case and $1.5 million high case. These are planning scopes, not national averages, contractor quotes or distributor commitments.

What counts as a completed tire shop order?

It is one vehicle whose authorized tire and service lines were completed, received by the customer, invoiced and collected, with units, direct cost, technician and bay time, discounts, credits and rework recorded.

Is $650 a recommended tire shop price?

No. It is an authored weighted retained order across minor service, two-tire, four-tire and higher-scope outcomes. Local matched quotes and collected invoices must replace it.

How many daily orders does the three-bay case need?

At a $650 retained order, 45% contribution margin, $57,083 monthly fixed cost and six trading days per week, continuous operating break-even is about 7.51 orders per day. Eight is the practical simplified threshold.

What is included in the 55% sales-linked cost pool?

The case groups tire inventory, valves, weights, service materials, card fees and other variable leakage. Replace it with invoice, receipt, rebate, return, credit, shrink and payment data.

Does the base case include general auto repair?

No. It covers tire sales and defined tire-related services. Broad mechanical repair, inspections, towing, mobile roadside work, retreading and heavy commercial-truck service require separate authority, skills, equipment, insurance and modeling.

Does the paid financial model fit a tire shop?

Yes. The verified workbook uses store visitors, conversion, repeat buyers, orders, units, category mix and prices. The shop must still add a service-line and bay-capacity reconciliation.

What should be tested before signing a full lease?

Obtain site, equipment, distributor, insurance and payroll evidence, audit named local offers, and complete 60 paid orders while recording conversion, units, service mix, direct cost, technician time, bay time, rework and collection.

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