*Calculations use average data for Russia

1. PROJECT SUMMARY

The goal of the project is to organize an automotive goods store in Novosibirsk. The store is located in a residential area with a high population density; there are no similar stores in the immediate vicinity, which is the basis for the competitiveness of the enterprise. The range of goods is relatively limited: consumables and materials, suspension parts. All products are non-original, but are licensed analogues of the original ones. Price category – economy and standard.

Against the backdrop of falling solvency of the population, sales of new cars decreased, which led to an increase in the average age of the vehicle fleet. Many vehicles require more frequent maintenance and repairs. In addition, there is a shift in demand towards non-original parts due to their greater affordability.

Table 1. Project performance indicators

2. DESCRIPTION OF THE COMPANY AND INDUSTRY

In 2016, the number of cars in Russia exceeded 56 million units. Of these, 44 million are passenger cars, more than 6 million trucks, 890 thousand buses, 2.2 million units of motor vehicles, more than 3 million trailers and semi-trailers. Motor transport remains one of the most popular means of transporting passengers and goods.

At the same time, almost 50% of all vehicles operated in Russia were produced before 2005, which means the need for frequent maintenance and repairs. The economic crisis in the country has led to a decrease in the solvency of the population and an increase in the market for used cars while the market for new ones has declined. This has impacted the auto parts market to a large extent.

A distinctive feature of the automotive spare parts market is its high degree of closedness for evaluation due to the high share of counterfeit and smuggled products.

Auto parts market for used cars in 2014 in kind increased by 2% compared to 2013, however, due to the devaluation of the ruble, in in monetary terms market volume decreased by 1%. In 2015, in physical terms, the market also grew by 2%, but the decrease in revenue was already about 3%. Total revenue, according to experts, amounted to 22 billion dollars. Based on the results of 2015, primary automobile market decreased by 37.5%, which led to a further shift in demand towards used car parts.

The most popular categories on the market today are suspension components (which reflects the condition of the country's roads), as well as lubricants and tires. The volume of the tire market in 2013 amounted to $3 billion, or about 15% of the total volume of the auto parts market. About 10% comes from suspension parts – $2.2 billion.

One of the main market trends has been the desire of car owners to reduce maintenance and repair costs. This is usually done by purchasing spare parts directly from the manufacturer or distributor, bypassing the intermediary - an auto shop, or by postponing repairs until the last minute. Savings can also be achieved by servicing cars in budget auto repair shops, rather than at an official dealer or service center high level. In the last two years, the demand for used auto parts, the cost of which is approximately two times lower than the cost of new ones, has also increased. However, the desire to reduce maintenance and repair costs could be a catalyst for sales growth as used and inexpensive goods low quality, as a rule, require more frequent replacement or can even lead to failure of vehicle components and assemblies, which in turn will require repair or replacement.

Earn up to
200,000 rub. per month while having fun!

Trend 2020. Intellectual business in the field of entertainment. Minimum investment. No additional deductions or payments. Turnkey training.

China traditionally leads among manufacturers of non-original spare parts. Chinese products account for about a third of the market. A large share is made up of smuggled products, as well as non-original parts produced without a license - their number is in total volume, according to experts, is about 70%; The volume of counterfeit goods alone is about a third of the market volume. Basically it's consumables and inexpensive parts - brake pads, filters, oils and suspension parts.

The import substitution policy has led to a slight increase in the production volume of auto parts - both for domestic and foreign manufacturers. foreign cars- at Russian facilities, but it is not possible to completely cover the need for them. According to experts, talking about import substitution in this segment is pointless. According to RBC analysts, this is due to the fact that domestic enterprises do not have equipment with which to produce high-quality analogues original spare parts. In addition, the prices of Russian analogues are significantly higher than Chinese ones, with a slight difference in quality.

Due to the weakening of the ruble exchange rate and other negative economic factors, there was a significant increase in prices for auto parts. The cost of some parts increased by up to 100%. Auto parts stores are trying to compensate for this growth through their own profits, but such measures cannot completely contain it.

Figure 1. Price growth rates for original oil filters for cars of various price categories in 2013-2015, rub./unit.

Figure 2. Price growth rates for non-original oil filters for cars of various price categories in 2013-2015, rub./unit.

Figure 3. Price growth rates for original automatic transmissions for cars of various price categories in 2013-2015, rub./unit.

Ready ideas for your business

Original spare parts reach Russia in the following way: from production to a warehouse in Europe, then to a warehouse in Russia, from where distribution is carried out across official dealers. This logistics scheme excludes the resale of goods on the way to the consumer.

“Gray” logistics involves a different route: goods are delivered through various alternative routes to an intermediary or directly to the consumer. For the most part, supplies are organized from the UAE, since original products are much cheaper there.

A distinctive feature of the Russian auto parts market is the small number of warehouses. Due to the wide range of products, retail stores do not store the entire volume in-house, but, if necessary, order the required item from the supplier. This significantly increases the delivery time of goods to the end consumer - up to two to three months.

Ready ideas for your business

There is a shift in purchasing activity towards online stores, which is characteristic of the entire market as a whole. By eliminating some of the costs associated with traditional physical stores, they are able to offer more affordable prices, which is a critical factor today.

According to experts and market participants, the demand for car parts will continue to grow in the near future, which is due to the general aging of the vehicle fleet. Nai in great demand will use spare parts for new and used cars domestic production and used foreign cars. Also, non-original parts will be primarily in demand as they are more affordable.

According to a VTsIOM survey, only 6% of car owners are ready to give up traveling by private car, while 64% said they would not give up their car under any circumstances.

Taking into account all the data presented, we can conclude that the project is highly promising. The project involves organizing an auto parts store with an assortment of budget and mid-price segments. The product line includes high-demand parts such as consumables and suspension parts.

Store location - Leninsky district of Novosibirsk. Novosibirsk is the third most populous city in Russia (1.5 million people), the administrative center of the Siberian Federal District and the Novosibirsk region. Trade, business, industrial and cultural center of federal significance. Leninsky district is the third largest and most populated district of the city, with a population of 298 thousand people.

Ready ideas for your business

The store is located on a rented space on the ground floor of a multi-storey residential building and has a separate entrance from one of the main avenues of the area, which ensures high traffic of visitors. The basis of competitiveness is the following factors:

absence of direct competitors in the immediate vicinity

the assortment includes only popular goods, which ensures fast warehouse turnover

the presence of a direct supplier in Novosibirsk, providing prices on a “wholesale from one piece” basis

3. DESCRIPTION OF GOODS AND SERVICES

The store sells high-demand automotive products. All products are non-original, but produced by licensed manufacturers and are complete analogues of the original parts. Since even with a relatively narrow product line, the list consists of several hundred items, for convenience, product groups and average bill on them. The list of product groups is given in Table. 2.

Table 2. List of product groups and selling prices

As market analysis shows, prices correspond to the market average.

4. SALES AND MARKETING

Sales are carried out through the store's sales area. Target Audience– car owners living in the Leninsky district of Novosibirsk, mostly men aged 22–60 years, owners of domestic cars and inexpensive foreign cars, who carry out some of the maintenance and repair work themselves.

The competitiveness of the project is based on the demand for the products in the product line, as well as territorial proximity to the consumer. The price in this case is neither an advantage nor a disadvantage, since it corresponds to the average market level.

The store premises are located on the ground floor of a multi-storey residential building with a separate entrance from one of the main highways of the area with a lot of traffic - both pedestrian and vehicular. In front of the store there are parking spaces, where you can easily leave your car during the working day, which is important for store visitors.

The entrance is decorated with an eye-catching sign (light box). At the start of the project, promotions are carried out with the distribution of flyers and business cards to car owners parked in the immediate vicinity of the store. Flyers are also distributed along with mail to mailboxes within the Leninsky district. Customers who come with a flyer or business card are offered a discount of up to 10% depending on the product group. Advertising in elevators may also be a relevant advertising option.

Promotion trademark the store is also carried out via the Internet, in particular through social media vk.com, ok.ru. To do this, pages are created filled with various content:

useful information about car care and DIY repairs

information about market innovations and automaker news

entertainment content – ​​jokes, funny pictures

engaging content - competitions, surveys

Direct competitors are located at a considerable distance from the store, which significantly increases the competitiveness of the project. Demand for project products is fairly uniform with minor seasonal fluctuations during the spring and autumn vehicle maintenance period.

Table 3. Planned sales volumes

	PRODUCT/SERVICE	AVERAGE PLANNED SALES VOLUME, units/month.	PRICE PER UNIT, rub.	REVENUE, rub.	VARIABLE COSTS, rub.
	Brake pads
	Suspension parts (struts...)
	Timing belts
	Spark plugs
	Accessories
	Batteries
	Wiper blades
			Total:	753 525	502 350

5. PRODUCTION PLAN

The store is located in a rented premises with an area of ​​30 m2, of which 15 are trading floor, the rest is warehouse and utility rooms. All communications are connected, the premises meet the requirements of supervisory authorities; The room requires cosmetic renovation. Warehouses are equipped with racks, a strict labeling and warehousing system has been introduced to quickly find the necessary goods.

Trade equipment, including cash register equipment, is purchased from suppliers in Novosibirsk. An agreement is concluded KKM service. Cash register corresponds to the latest legislative requirements for electronic transmission of information to the tax service.

The supplier of the goods is a federal wholesale company specializing in car parts. The supplier's warehouse is located in Novosibirsk, which allows us to minimize logistics costs and delivery time. It is assumed that the goods will be picked up by the client.

6. ORGANIZATIONAL PLAN

The legal form of the enterprise was chosen as an individual entrepreneur, the form of taxation was UTII. The project initiator is expected to be self-employed and will perform all management functions, handle marketing and purchasing, and also work as a shift salesperson in the store. To perform leadership functions, the project initiator has all the necessary knowledge and skills, has experience in the field of trade.

The entire process of project implementation can be divided into three main stages: preparatory stage, growth stage, operational stage. During the preparatory stage, the premises are renovated, supply contracts are concluded, and a replacement seller is selected. The duration of this stage is one month. At the growth stage, the project develops until the planned sales volumes are achieved. The duration of this stage is 9-10 months. The operational activity stage is not limited in time and depends on the state of the economic situation.

Table 4. Staffing table and wage fund

	Job title	Salary, rub.	Number, persons	Payroll, rub.
Administrative
	Accountant
Trade
	Salesman
	Total:			RUB 25,500.00
	Social contributions:			RUB 7,650.00
	Total with deductions:			RUB 33,150.00

7. FINANCIAL PLAN

The financial plan of the project was drawn up for a five-year period (Appendix 1). The plan takes into account all income and expenses of the project, and determines the cash flows of each period. Income refers to revenue from operating activities; other types of income are not provided for by the project. Annual revenue after achieving planned sales volumes – 8.6 million rubles; net profit after taxes – 1.5 million rubles.

Investment costs for the project are 785,000 rubles, of which the project initiator’s own funds are 500,000 rubles. The lack of funds is planned to be covered with a bank loan for a period of 24 months at 18% per annum. Loan repayment is carried out in annuity payments, loan holidays are three months.

Table 5. Investment costs

	NAME	AMOUNT, rub.
Real estate
	Warehouse and office renovation
Equipment
	Trade equipment and cash registers
Intangible assets
	Website development
	Rental deposit
Working capital
	Working capital
	Purchase of the first batch of goods to the warehouse
	Total:	785,000 RUR
	Own funds:	RUB 500,000.00
	Required borrowed funds:	285,000 ₽
	Bid:	18,00%
	Duration, months:

Variable costs include the purchase price of goods, as well as the costs of transporting them to the store warehouse (Table 6). Fixed costs include rent, advertising, depreciation and other regular payments (Table 7). The amount of depreciation charges is calculated using the straight-line method, based on the useful life of fixed assets and intangible assets of five years.

Table 6. Variable costs

	PRODUCT/SERVICE	COSTS PER UNIT, rub.	TRADE MARKUP, %	UNIT COST, rub.
	Brake pads
	Suspension parts (supports, levers...)
	Suspension parts (struts...)
	Timing belts
	Spark plugs
	Filters (air, oil, fuel...)
	Accessories
	Batteries
	Wiper blades
			Total:	11,499 RUR

Table 7. Fixed costs

8. EVALUATION OF EFFECTIVENESS

The project's effectiveness is assessed based on an analysis of the financial plan, cash flows and simple and integral performance indicators (Table 1). To account for changes in the value of money over time, the discounted cash flow method is used. Discount rate – 5%.

The simple (PP) and discounted (DPP) payback period of the project is 11 months. Net present value (NPV) – RUB 1,149,027. Internal rate of return (IRR) – 11%. Profitability index (PI) – 1.46. All these indicators indicate the investment attractiveness of the project. A low discount rate is acceptable, since the main investor is the initiator of the project, for which such a rate of return is satisfactory. The bank receives collateral in the form of purchased fixed assets, in addition financial plan indicates the stability of the enterprise.

9. WARRANTY AND RISKS

To assess the risks associated with the implementation of the project, an analysis of internal and external factors is carried out. Internal ones include:

incorrect choice of store location, which will affect visitor traffic and loss of income - this option seems unlikely, since the store is located on the main thoroughfare of the area and has parking in front of the entrance; If this option is implemented, it is necessary to provide for the possibility of promptly moving to another location

incorrect formation of the assortment line, which can also lead to failure to reach planned sales volumes - it is necessary to constantly monitor sales volumes and warehouse turnover, monitor competitors, as well as receive feedback from customers to adjust the assortment.

Main external factor can be considered the emergence of direct competitors in the Leninsky district. In this case, it is necessary to provide for the formation of a pool of loyal customers through high quality service, as well as through loyalty programs - discounts for regular customers, etc. It is also necessary to provide for the possibility of expanding the range to attract more customers.

In recent years, the state has begun to pay great attention to environmental safety. Considerable financial resources are allocated from budgets to maintain the environment and waste disposal.

Used old car tires are classified as solid household waste of hazard class 4. This waste cannot be burned or buried in the ground. When burned, harmful pollutants are released into the atmosphere and soil. A tire takes more than 120 years to decompose in the ground! When stored, worn tires pose a risk of uncontrolled fires, since the burning temperature of the tire is approximately equal to the combustion temperature coal. A tire dump is an ideal breeding ground for blood-sucking insects and snakes that pose a danger to the public.

Over the past 5 years, more than 25 enterprises have appeared across Russia, specialized in the disposal of used tires and other rubber goods. These enterprises, like any other solid waste processing organizations, accept waste raw materials for a fee.

Tariffs for tire recycling depend on the region; in Russia this figure varies from 2 to 14 rubles. for 1 kg.

In addition to recycling, these enterprises also produce valuable raw materials from worn rubber - rubber granules! On this they get a second profitability, which makes this business doubly profitable. Rubber crumbs (crushed R/D rubber, granules) have many areas of application: from the production of durable asphalt for roads, to the production of colored rubber coatings for children's playgrounds and gyms.

There are many cities in Russia where there are no such specialized rubber recycling enterprises yet! This benefit for society is also very beneficial for the processor himself. Since this market niche has not yet been filled, those who want to start a new business have a chance.

The third profitability of a car shoe processor can be obtained by producing the same rubber floor coverings from rubber granules. The technology is very simple: using inexpensive equipment, the crumbs are mixed with a minimal amount of polyurethane glue and dye and pressed under temperature into rubber mats, segments of any configuration, and rubber paving stones.

Due to the low cost of recyclable materials, the coating is inexpensive. It has excellent and unique properties (snow and ice melts off quickly; safety from falls; the load on the joints is significantly reduced; walking on such a surface is very easy and pleasant; excellent anti-slip properties; the surface cleans itself in the rain and does not form puddles on it, and this is only part of list of advantages!).

So, let's summarize the above.

You can make money on worn tires three times:
— Disposal (paid acceptance).
— Processing of scrap raw materials into crumb rubber.
— Production of environmentally friendly floor coverings for recreation and sports.

There are a large number of suppliers of this equipment. They can be found through Internet search engines. There are expensive and inexpensive equipment that are more or less suitable for processing tires into pellets Russian manufacturers.

Those who have money can organize full cycle recycling and retreading of tires by selecting suitable equipment and enlisting the support of the authorities.

Those who have limited finances can start their business from the first stage: “Paid acceptance of tires for recycling.” To do this you need:

— Inexpensive machine for preliminary cutting of tires - “hydraulic shears”. This machine can reduce the volume of waste raw materials by 5-7 times. By chopping whole tires into fragments, we obtain a transportable “semi-finished product” for the production of rubber granules.
— A suitable piece of land where there is 5-10 kW. electricity, storage space for semi-finished products. A city dump, a car depot area, a vacant lot near a tire shop would be suitable...
— Conclude agreements with tire shops and enterprises for the recycling of tires with their delivery of waste materials.
— Individual entrepreneur or LLC with a bank account.

After some time of work, your account will have enough money to purchase machines for processing semi-finished products into rubber granules. Those who don’t want to wait can take chopped tires to existing crumb production plants.

So, without large investments, you can start your own useful, profitable and understandable business.

The issue of recycling tires in Russia has been brewing for a long time.

There is really a lot of waste material; it is thrown into landfills, in places that are not at all intended for this.

It would seem that an ideal environment is being created for a business in the rubber processing sector. However, there are many nuances to this topic, which we will try to shed light on in this material.

Any old material can be “breathed” into a second life and used effectively in any industry.

Let’s take a closer look at what useful benefits old car tires can provide.

Mechanical recycling

In case of mechanical recycling of tires the output is the following material:

1. Tire crumbs of different fractions, which are used for the manufacture of new products.
2. Textile cord that can be recycled by pyrolysis to produce fuel.
3. Metal cord, which is also melted down.

You can learn more about the electromechanical method and its varieties.

There are three fractions of crumbs:

• 1 mm;
• 2-3 mm;
• 4-5 mm.

Each type has its own consumer, but the selling price of crumb rubber is approximately the same.

The technology is also used in China, Europe and the USA reuse tires for their intended purpose by overlaying a new profile on an old tire.

A development plan in this direction was developed at the state level back in the days of the USSR, but failed after its collapse.

Pyrolysis method

There is also a pyrolysis method for recycling old rubber.

Pyrolysis is a change in the formula and properties of the starting material with the splitting of its components.

Speaking in simple language, rubber and rubber included in tires, separated from the court. The end products of pyrolysis are quite suitable fuels and lubricants.

In a number of countries, the use of this method is prohibited by law due to harmful emissions into the atmosphere. However, this issue is now being reconsidered and may begin to gain momentum in the future.

The method of pyrolysis processing of tires and rubber goods is described in more detail here.

Business organization

When considering recycling used tires as a business, it is worth weighing all the pros and possible cons.

Let's focus on the mechanical method, and use the example of one of the production lines to consider detailed business plan processing car tires.

Let’s take the proposed ALFA TIRE RECYCLING 500 platform as a model – electromechanical production line for processing tires of different diameters, including truck tires.

Equipment cost

Starting capital to purchase the necessary equipment:

Below is a table with the name of the equipment within the ATR 500 tire recycling line:

You can learn a little more about this line by watching the video:

It is worth paying attention to the following points:

• prices for individual items of equipment must be clarified with the seller (supplier);
• all obligations regarding warranty repairs and the conditions for their provision are specified in the supply contracts.

The cost of delivering equipment throughout Russia may fluctuate upward depending on the remoteness of the region.

More detailed description this line.

You can also ask prices for equipment from other suppliers, for example, this one.

Requirements for production premises and warehouses

Space will be needed for:

• placement of equipment;
• storage of raw materials;
• storage of the finished product.

To install the line you will need: minimum 200 square meters.

An outdoor unheated hangar or a fenced-in area for unloading recyclables is suitable for storing old tires.

Purchase necessary premises can be an overwhelming burden for a new entrepreneur.

You can use the offered rental options, the cost, depending on the region, can range from 20,000 to 100,000 rubles/month.

Staff

Let's consider the number of service personnel and the monthly payroll.

For smooth operation of the production line with output power finished products(rubber crumbs) 150 tons/month. required staff of about 10 people.

Approximate Fund monthly payment labor - RUB 350,000.

These calculations are presented in the form of an average plan and may differ depending on the region of Russia.

Other expenses

Production will be accompanied by other monthly expenses:

1. Purchase of packaging bags (containers) for finished products. The price of a 30 kg bag will be 8 rubles, based on the monthly consumption we get the amount of 4,000 rubles.
2. Communication – 10,000 rub.
3. Unforeseen expenses - 10,000 rubles.
4. Average data on energy consumption of a production line, designed for the production of finished products of 150 tons/month. equal to about 100,000 rubles/month.
5. Maintenance – 50,000 rub.
6. A separate expense item should be considered the replacement of cutting elements (knives) - 35,000 rubles.
7. Garbage truck services – RUB 20,000.

Adding rental and salary costs to these figures, we get monthly cost part - about 620,000 rubles.

License for acceptance and disposal

Contrary to information on most websites, tire recycling as a business requires a license.

Tires have fourth hazard class. According to the legislation of the Russian Federation, the reception and disposal of this type of waste requires obtaining a license.

Before submitting documents, an entrepreneur must have:

• production areas;
• industrial site with a sanitary zone;
• equipment;
• permits from Rosprirodnadzop, Rospotrebnadzor, fire inspection.

The license cost is 7500 rubles, the deadline for its registration is 45 working days. When using the services of intermediaries, be prepared to pay many times more.

Profitability calculations

Project profitability and revenue generation plan:

1. Finished products in the form of rubber granules, average price 15 rubles/kg. 100 tons = 1,500,000 rub.
2. Metal cord 30 tons at a price of 3,000 rubles/ton = 90,000 rubles.
3. Textiles based on the resulting material being 20 tons and the average market price of 2,000 rubles/ton = 40,000 rubles.

We receive monthly revenue of 1,680,000 rubles. Through simple deductions for expenses and maintenance, we get a net profit of 1,001,000 rubles.

The presented business plan has average calculations and does not take into account some factors:

• location;
• territorial affiliation;
• availability of a sales market in a particular region.

It cannot be taken as a formula, but even despite this, the benefit is obvious.

At favorable conditions The payback for the production of crumbs from old tires will occur 1.5-2 years after the launch of the line.

Pitfalls

When we talk about “favorable conditions” we mean:

• no problems with the supply of raw materials;
• properly functioning equipment of high quality and declared performance;
• well-established sales at reasonable prices.

In reality, not everything goes smoothly. Let's consider a few nuances:

1. Wrong choice of equipment. Our tires differ from foreign ones in that they have a mixed or textile diagonal cord. Most imported machines, which are produced for the domestic market, and not specifically for the Russian Federation, are not capable of processing such products. So, in the absence of experience, you can purchase equipment that will be useless or ineffective in Russian realities.
2. Purchase of defective/faulty units. Again, a common problem when ordering from abroad, especially from China. Faults begin to “pop up” en masse in the first months of active operation; constant breakdowns will cost money for repairs and lead to line downtime.
3. Increased performance. Sometimes the manufacturer can greatly embellish these parameters, especially for sellers from China. If you buy high performance at a much lower cost, you are likely to end up with equipment that does not work efficiently. As a result, the stated payback period of 1-2 years will turn into 5, or even 10 years.

Problems may arise in other areas, for example, in obtaining raw materials. It may not be enough or it may be expensive.

Collect tires and transport them to production capacity enterprises have to do it on their own. Many people buy tires from the population. All this leads to the fact that the cost of tire crumbs increases significantly.

Demand for crumb

Here is a list of the main areas of need for crumb rubber:

1. Seamless floor coverings. Enterprises engaged in laying such coatings are distributed throughout the Russian Federation and are constantly in need of high-quality raw materials.
2. Production of tiles and roll coverings. There are large and small industries that are in need of medium grade crumb rubber.
3. Road surfaces. The main consumer is the Moscow Region, but there are prospects for development in other regions. For asphalt, fine crumbs and rubber dust are used.
4. Government orders for the construction of sports facilities, running track surfaces, and sidewalks.

• gravestones;
• figures for playgrounds;
• rubber curbs, bollards;
• various items in which crumbs act as a filler (bean bags, punching bags, etc.);
• rubber shoes;
• MBR (bitumen mastics), where crumbs are needed as a filler;
• rubber insulation;
• other RTI.

Be that as it may, before opening production, you need to find out which enterprises are located in or near your region in order to identify the demand for crumb rubber.

Trade in tires, wheels and car accessories is an interesting segment. But the success of a business in it largely depends on the right relationships with suppliers. Below you will find typical questions that need to be answered if you are planning to open an online store selling tires and wheels.

In the photo: Igor Karpachev, Development Director of MarketMixer

Below are typical questions that you absolutely need to pay attention to if you are just planning to open an online store or marketplace for selling tires and wheels. If you are already an experienced dealer and are thinking about how to further optimize your work with tire and wheel suppliers, you may also find useful details for yourself.

So where to start?

1. Own warehouse or sale from the supplier’s warehouse?

One of the main questions that online store owners face is the question of selling from their own warehouse or the so-called dropshipping, or sale from the supplier’s warehouse.

Selling from your own warehouse makes sense if you have an active offline business - one or more stores selling tires and wheels at retail, and you are planning to open an online store that will help complement your business with online sales.

Main criterion– this is the availability of premises for a warehouse or the possibility of inexpensive rental of such a location. Maintaining warehouse space (and staff) will be one of the main expenses for your business, so this question need to be converted special attention.

Tires and wheels are voluminous goods. There can also be many options and brands. Therefore, the premises for the warehouse must be selected accordingly.

If you do not have a network of traditional retail stores, then the most realistic option would be to open a business selling tires and wheels using the dropshipping model, i.e. from the supplier's warehouse. The advantages of this approach are obvious. You don’t need your own warehouse, you don’t need personnel to service the dispatch and delivery of goods, you don’t need to deal with logistics, returns and other processes.

About the details of selling tires and wheels using the dropshipping model, which will help you in acceptance right decisions, we will tell you below.

2. Premium brands, middle segment, mass segment or mix?

Another important question is what brands of tires and wheels will you choose to sell? Will your online store sell only premium brands? Or only mid-segment tire and wheel brands? Or do you want to represent mass market models? Or a mix? These are all important questions that it is advisable to get answers to before starting a business.

Premium brands will be able to give you higher margins. However, selling premium brands is more difficult. This is a niche product that will sell well if you have been in the tire and wheel sales business for a long time and have an established customer base. Knowing the needs of your customers, you can more easily select an assortment and focus on demand.

Mid-segment brands focused on clients who know and trust good quality, but not ready to overpay for a premium brand. There are undoubtedly more middle-segment clients. The margin on such sales will be slightly lower, but the sales and marketing themselves will be simpler compared to the marketing and sales of tires and wheels of premium brands.

Brands of tires and wheels from the mass segment will lead to your online store nai more buyers. However, the margin on such sales will be minimal. To sell a mass product, you also need the widest possible marketing support, since you will need to tell the widest possible circle of potential buyers about your product.

Mix of premium brands of tires and wheels, mid-segment brands and mass market brands - this is apparently the most difficult combination to implement. Seeing a combination of different brands of tires and wheels within one online store, customers will not understand who your offer is intended for. A combination of high, mid and low prices and the diversity of brands will most likely scare off a new buyer, who will be lost in the choice. It makes sense to introduce a product mix if you have already accumulated client base buyers of tires and wheels and plan further growth and development of your business.

3. Winter tires, summer tires, all-season tires or the whole range?

Since tires and wheels are primarily seasonal items, it also makes sense to consider whether you plan to offer the entire range, or concentrate your efforts on just a specific season's product.

Most online stores choose the strategy of presenting a full range of tires and wheels - winter, summer and all-season tires. However, again, due to the seasonality of the tire and wheel business, it may make sense to supplement sales of tires and wheels (which will sell well during the season and sell poorly out of season) with other products that will have more consistent sales throughout the season. whole year. Such goods may, for example, be auto accessories or the most common auto parts.

As your online store's sales grow, knowing your sales statistics will help you actively manage, supplement, and update your assortment to achieve the most profitable combination of seasonal and non-seasonal products. Active assortment management will also help ensure increased sales profitability.

4. Updating of assortment and tracking of stock levels?

When choosing a supplier of tires and wheels, pay attention to the requirements and capabilities for updating the range and tracking stock levels both in your online store and in the supplier's warehouse. When selling using the dropshipping model (selling from a supplier's warehouse), the level and assortment of inventory in your virtual warehouse will be directly related to the level and assortment of inventory in the warehouse of your supplier or suppliers.

The issue and problem of tracking inventory levels and assortment updates becomes an order of magnitude more complex if you work with more than one supplier. The complexity of this problem also increases exponentially as the product range expands.

Imagine that your online store presents 1000 products from 5 suppliers. If part of the assortment can be supplied by more than one supplier, and each supplier is able to supply several hundred items, the issue of tracking stock levels and updating the assortment cannot be solved manually in a reasonable time.

Make sure that your online store will receive information about the rate of change in balances for a particular product item in the supplier’s warehouse. For example, if there are less than five items left in the supplier’s warehouse specific product, offering such a product is risky, since it may not be available at the time of sale.

Agree, having spent a lot of money on attracting customers and increasing conversion in the sales funnel, you will be very upset if you lose a customer due to lack of the desired product at the supplier's warehouse.

When choosing suppliers of tires and wheels, be sure to pay attention to the requirements for minimum and recommended retail prices MRP / RRP. It is common practice for some suppliers in the industry to actively monitor retail prices their partners.

Large suppliers ensure that the MRP/RRP is adhered to. In practice, this may mean that the online store may be stopped from further shipments due to non-compliance with recommended retail prices.

If, to select better conditions If you plan to work with several suppliers whose assortment partially overlaps, it will not be easy to comply with recommended prices due to the difficulties of comparing products from different suppliers. Differences can arise even due to a small error in the name of the product, such as the absence of the XL index in the product from one of the suppliers.

Pay attention to the requirement to comply with the MRP / RRP, ask suppliers for recommended prices and always maintain your prices at a given level.

6. Integration with the supplier's internal system?

An essential point, especially with the increase in the range and variability of goods on the online storefront, is the possibility and degree of integration with supplier systems.

Consider how suppliers will send you updated price lists.

• Will this happen once a day, once a week or once a month?
• Is the supplier ready to provide a uniform price list format throughout the period of cooperation?
• How compatible will the data presentation formats of different providers be?
• They will be able to internal systems does your online store accept and process price list update data with the required frequency?

Until now, the issue of updating price lists is often left to content managers. This solution does not scale as the volume of data grows (new employees will need to be hired). When hiring content managers, there is a very high risk of human error. When the assortment and demand changes or the seasonality of sales, it will not be easy to respond to changes in the volume of processed data.

It would not be amiss to add that the content manager may quit and take his knowledge with him, he will need vacations, workplace, he must be smart, diligent and neat, that is, not very cheap. At the same time, his work will be monotonous and can quickly become boring.

Therefore, decisions on working with price lists, updating content, stock levels and assortment on the site, more and more, make sense to trust automation.

7. Data reliability?

Next question for negotiations with the supplier, how much you can trust the data received. Pay special attention to this and check whether the stock levels and assortment accuracy that the supplier conveys to you are accurate.

Find and work with multiple providers and compare them based on the accuracy and relevance of the data they provide. Such an analysis will pay off in full, since the sales of your online store of tires and wheels, especially if you work on a dropshipping model, completely depend on the reliability and reliability of the data of your suppliers.

8. Is the company reliable?

Gather information to demonstrate that your potential tire and wheel suppliers are reasonably reliable. Find out in the market how they work? How well and regularly are bills paid? How are partners treated? Are market participants aware of any scandals involving your potential suppliers? Collect reviews from other online stores that work with the same suppliers.

Such Homework will help you choose the right partners at the start of the project. The more consciously you go about signing a contract with a particular supplier, the more you know about the company at the start, the better prepared your choice will be, the easier it will be to build relationships as you work.

9. Requirements for a partner from the supplier's side?

It is also very important to understand what requirements you will have to meet when working with a given tire and wheel supplier.

If you are a start-up online store and are just waiting for the first orders to arrive, check if the supplier is ready to work with single orders? How many sales does your supplier expect from you per day, per month, per season? This is key information that will allow you to correctly assess your strengths and choose the appropriate supplier at the start.

If you already have good experience In online tire and wheel sales, a clear understanding of supplier requirements will also help you choose the right partner to support your sales levels and growth.

• What discounts does the supplier give upon reaching a certain level sales?
• How does the supplier handle returns?
• Is the supplier ready to keep a reserve in stock for you?

Getting answers to these questions will be a great help in ensuring uninterrupted supply of tires and wheels to your customers.

10. Wholesale, small wholesale, one-time sales?

Tire and wheel suppliers vary in whether they provide large-volume supply, small-volume supply, or can also support one-off sales.

Large wholesale suppliers usually do not work with one-time deliveries, but they can keep a reserve in the warehouse to ensure large deliveries. Large suppliers also likely won't ship retail orders and won't handle returns on a case-by-case basis.

Small wholesale suppliers will be willing to supply goods for one-time deliveries, but may be unable or unwilling to independently supply retail orders and handle individual returns. You need to consider whether you are ready to organize own service delivery or hire a subcontractor to ship orders and handle returns.

Therefore, when reviewing tire and wheel suppliers, be sure to detail whether the supplier will handle retail orders and retail returns. Also clarify what the supplier's expectations are from your online store when transferring orders, paying and handling returns.

11. New tires or used tires?

An online store may also specialize in selling new tires or used products. Just as it makes no sense to mix premium brands, mid-segment brands and mass market brands, it also makes no sense to mix them in one online store new product and goods that have already been used. The buyer will not understand where he has ended up and what level of quality he can expect from such an online store.

If you want to sell both new tires and wheels and used products, it makes sense to open a separate online store and specialize sales in one of the selected areas.

When choosing a supplier of used tires, also pay attention to the level of wear, the brands offered, as well as the general level of quality of the products offered. The rest of our recommendations work both for suppliers of new tires and wheels, and for suppliers offering used goods.

12. Car tires, truck tires, tires for special equipment, tires for motorcycles?

Specializing in passenger tires and wheels, truck tires and wheels, or specialty equipment products also makes sense, as your customer base will be very different depending on the focus you choose for your online store.

Most online stores focus on tires and wheels for passenger vehicles. This is understandable; passenger vehicles are the most popular segment and are represented mainly by retail buyers. You will have many opportunities to choose brand options, seasonality, pricing policy and other details. The market for tires and wheels for passenger vehicles is more local. This means that you can create an online store serving a specific region or city.

However, selling tires and wheels for trucks or selling tires and wheels for special equipment makes it possible to provide more specialized services and develop more loyal and long-term customers. The development of such an online store will likely take longer. However, there is an opportunity to enter a less competitive segment that will provide you with profitability in the long run.

If you decide to focus on motorcycle tires, you will also be able to find and attract exactly your buyer. There may be a shortage of motorcycle tires in your area. If there is such a shortage, it is quite possible to try to occupy this niche.

13. Tires, wheels, accessories or specialist supplier?

Consider choosing between a dedicated online store that sells tires and wheels versus developing a broader assortment that may also include auto accessories and related products.

In addition to tires, the online store may have stamped wheels, alloy wheels, and forged wheels. In addition to tires and wheels, you can also sell related products, for example, kits for repairing car tires and tires, car pumps, compressors for inflating tires, jacks (hydraulic, mechanical), covers for storing tires and wheels, wheel caps, etc.

Including a wide range from the very beginning may seem attractive, as it has the potential to increase sales and reduce the seasonality of supply (remember that tires are mainly a seasonal product).

However, a wide range has many pitfalls that need to be understood and assessed at the start. Wide range involves integration, receipt and exchange of data with different suppliers, according to different types goods, with different features delivery and returns.

The issue of data sharing may not seem significant at the initial stage of business, but it certainly is. The complexity of processing and synchronizing data on price lists, balances and orders increases exponentially as the number of products on the online storefront grows, as the number of suppliers and orders grows.

14. Communication with the supplier and references?

Since you choose a supplier and hope for long-term cooperation (it makes sense to build long-term partnerships with suppliers, since changing suppliers is always difficult and costly for business), take the time and collect references for tire and wheel suppliers that you are seriously considering.

Call customers (customers can often be listed on vendor websites), read and ask questions on professional forums or industry conferences. Find out what are positive aspects working with this supplier, and what problems were encountered in partnership with him.

15. Choose tires or supplier?

If you choose to specialize in rare brands, or the network of suppliers is not so developed in your region, then it may well turn out that the choice of suppliers is not so wide. The rarity of brands and the lack of a wide choice of suppliers can play into your hands, as it will give you the opportunity, for example, to invite a supplier to start working in your region. And you can become the exclusive representative of a brand new to the market.

Exclusivity of product distribution gives good opportunities for marketing and creating your own base of loyal customers interested in purchasing this particular brand of tires.

16. Warranty obligations of the supplier or manufacturer?

Check the warranties for the tires and wheels that your online store will offer. Who gives a guarantee for the product - the supplier or the manufacturer? Or both supplier and manufacturer? (this also happens)

The topic of guarantees is not yet very widespread in the market. However, with the development of trade, consumer protection law is being applied more and more often. In the event of a warranty situation, where should the buyer apply?

Since the buyer bought tires or wheels in your online store, he will call you. It is better to be prepared for such calls in advance and place on the website information about guarantees for goods purchased on the website. And clearly stated warranty and return conditions poor quality goods, clear, transparent rules often become the decisive argument in favor of purchasing on a particular site.

17. Buy from a wholesaler or manufacturer?

More and more tire manufacturers are developing own networks sales This is understandable; manufacturers do not want to share profits.

However, the construction of a distribution network, small wholesale and retail sales– this is not an easy task, requiring significant investments of time and finances.

If you are located in close proximity to a manufacturer's office, and the manufacturer is willing to issue retail orders, accept returns, and work with individual customers, you may want to try working directly with the manufacturer.

In most cases, the tire and wheel manufacturer will supply wholesale quantities to distributors, and you can purchase the goods from the wholesale supplier's warehouse.

Partial list of international tire manufacturers:

• Michelin (France);
• Continental (Germany);
• Dunlop (Germany);
• Goodyear (USA);
• Pirelli (Italy);
• Nokian (Finland);
• Bridgestone (Japan);
• Firestone (Japan);
• Cooper (USA);
• Hankook (Korea);
• Kumho (Korea);
• Tigar (Serbia);
• Toyo (Japan);
• Firenza (China);
• Infinity (China);
• Goodride (China).

Partial list of Russian tire manufacturers:

• Kirov Tire Plant (KShZ);
• Yaroslavl Tire Plant (YaSHZ),
• Moscow Tire Plant "Taganka" (MSHZ);
• Altai Tire Plant (AShK);
• Volzhsky Tire Plant (Voltyre-Prom);
• Voronezh Tire Plant (Amtel-Chernozemye);
• Nizhnekamsk Tire Plant (Nizhnekamskshina);
• Krasnoyarsk Tire Plant (KShZ);
• Omsk Tire Plant (Omskshina);
• Ural Tire Plant (Uralshina).

Trade in tires and car accessories is an interesting segment that, with the right approach, will provide the entrepreneur with stable profits and business growth. After all, car enthusiasts are quite sensitive to their vehicles and, once they receive high-quality service and an excellent product, they become loyal customers for a long time literally “from the first purchase.” This is a difficult segment in terms of interaction with suppliers. And I hope that by answering these 17 questions, you will eliminate some of the difficulties that may arise right from the start.

• About the tire business
• Step-by-step plan for opening a tire store
• How much does a tire store owner make?
• Purchase of equipment
• Preparation of documents
• OKVED and taxation system

The business of selling tires has always been, is and will remain relevant as long as millions of cars drive on our roads. Despite the growing number of cars and car owners, entry into the tire business is not getting easier for new players. The reason for this is huge competition in the market, a large number of online players, and continuous price dumping. Essentially, a newly minted entrepreneur has two options here: either invest millions in creating large store with a huge assortment (to at least somehow stand out among competitors), or open a small service (tire fitting) and, based on it, a small sales department. Both options have the right to life, although the second requires much less financial resources for opening, and accordingly it looks like the least risky business...

About the tire business

The tire business is far from what it was 10-15 years ago. According to experienced businessmen Today, an increasing number of car owners prefer to purchase tires from online stores. Especially in major cities and megacities. This certainly hits the real money hard retail stores. Therefore, in order to survive in an increasingly competitive environment, it is also necessary to move your business online and create an online store (the opening of which costs from 60 thousand rubles).

Although online things are not so sweet either. Other market players also understand the benefits of the Internet, which is why there are more and more online tire stores every year. However, it’s one thing to create an online store; any web programmer will do it for you. Another thing is to promote it and move it as high as possible in search results. Advertising in Yandex Direct is an expensive pleasure, although it is a fairly effective means of attracting buyers. For example, 100 transitions to your website via Yandex Direct will cost you 1,500 - 2,000 rubles.

How much money do you need to open a tire store?

Be that as it may, the investment to open a tire store can amount to several million rubles. Taking into account that the premises will be rented. The main cost item is the creation of an assortment of tires. The main thing here is not to make a mistake with the initial purchase, so as not to overstock the warehouses with non-traditional items. If you have no experience, it is better to consult with experienced market players and study the market and demand as closely as possible. For example, the most popular tire sizes for foreign cars are as follows: 175/70 13, 175/65 14, 185/70 14, 195/60 15, 195/65 15, 205/65 15, 205/55 16. expensive brands cars (Toyota Prado, Volkswagen Touareg, etc.) sizes are in great demand: 225/65 17, 255/55 18, 265/65 17.

Some difficulties may arise with finding tire suppliers. The ideal option, although the longest, is to work for some time in a company that sells tires in your city or region (or find good friends there). This way you can thoroughly study the passenger tire market, which will subsequently greatly increase the chance of successfully building your business in this industry.

Experienced entrepreneurs argue that those stores that, in addition to trade, also develop service, have a greater chance of success. A good tire service that also sells tires will never fail. Tire fitters win customers much faster and easier, especially during the next “tire re-shoe” period. And it’s easier for the car owner - he bought tires from a tire shop and immediately replaced the old tires with new ones. In addition, tire shops sell used tires and earn good money from it. Therefore, the path from opening a tire shop, and then sales department for the sale of tires seems to be much more “cheaper”, reliable and proven.

On the Kolesa.ru forum, a user under the nickname “nbv” published a very interesting material entitled “The tire business has come to an end.” He said that today fewer and fewer businessmen are earning serious money in the tire business. Some large players, in their thirst to overtake their competitors, greatly reduce prices, selling tires almost at cost. As a result, they do not earn money themselves and do not allow others to do so.

Mistake of new entrepreneurs

The mistake of most market players is the pursuit of sales volumes. A wise manufacturer offers all sorts of bonuses to wholesalers; they stock up on thousands of tires, fill up their warehouses, and ultimately don’t know how to sell it all. It turns out that tires are sold with a ridiculous markup of 5-10%, instead of the required 30 percent markup. At the end of the season, such a company earns nothing, its employees quit, the company cannot develop its network, purchase new equipment, etc. The moral here is that you should not try to sell more, it is better to sell less, but at a higher price. high price. After all, in order to sell more tires, you need more managers, more warehouse space, high costs for logistics and so on.