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Tire hotel  03.07.2013 18:31

Tire hotel
What is tire hotel ?

Cars became an essential part of our lives. In turn, the automobile tires are essential part for each vehicle. At the same time, almost any motorist uses different types of tires for different seasons: summer, winter or all-season. And if, for example, it is all clear with summer tires in the warmer months: set in the car and drove off, then where to store winter tires properly? Some keep them in garage or in balcony, but tires are bulky enough and occupy a lot of space. Moreover, this way of storing does not provide necessary conditions and proper maintenance for tires and as a result, they may become frozen, overheated or deformed. That’s way car owners prefer to use tire hotels more often. Tire hotel – a place, where your tires that are not used in the current season,
will be kept at the right temperature, humidity, and other important conditions. Tire hotel - a place where you can get services such as cleaning of tires, mounting/dismounting of tire on the rim, installation or removal wheel on the vehicle, etc.

Tire hotel as a business idea.

The number of vehicles in our country grows steadily, wouldn't you agree?

The number of new cars sold in 2012 grew on 11% in comparison with 2011 and reached 2 935 111 units. The car owners understanding of reasonableness of proper storage of tires grows as well. After all, this is directly influence on tire service life. So, why not use it to create your own business? Or, if you already have an automotive business, to add such service as tire storage.

Financial prospects (example).

Imagine you are renting a warehouse of 100 sq. m. Approximate annual rental fee per 1 sq. m. – 9000 rubles. Thus, annual rental fee for the whole warehouse will be 900 000 rubles. Add to that a cost of utilities and you will get around one million rubles per year – a running cost of the warehouse.
The cost of shelving equipment, which allows to place to 1100 tires, would be 350 000 rubles per 100 sq. m. Thus, the cost of equipment per single tire as little
as 318 rubles. Maintenance of the tire hotel requires two people. Two people will be needed to maintain a tire hotel. Expenses for the payment of wages and taxes for two people per year - 624 000 rubles.

Considering current rates for tire storage (150 rub. per month per tire) and with 100% occupancy of the hotel, we will get an income of 1 980 000 rubles a year.

 

Warehouse annualrentalfeeper 100 sq. m(rub.) 900 000
Annual cost of utilities (rub.) 100 000
The cost of shelving equipment (rub.) 350 000
Annualexpenditures for staffof 2 people (rub.) 624 000
100% occupancyincome (rub.) 1 980 000
1styearprofit (rub.) 6 000
2ndyearprofit (rub.)

356 000

The above table shows that within the first year of work, the tire hotel reaches its self-repayment. After all, income was calculated only on the basis of the tire storage. Let us add to this additional services (washing of tire, pumping the wheels and many others) and the prosperity of your business will be inevitable.

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Calculations were made on the basis of height of warehouse that equal to 3 meters. But most warehouses have a greater height, therefore, it will be right to  use the entire storage volume. And this is possible! META shelving structure systems allow to resolve the problem of rational utilization of facility space. The table below shows the calculations and comparison of the tire hotel at different storage heights.

Rent of warehouse

Shelving system type

Single tier

Multi-tier

Warehouse area (sq.m.)

100

100

Maximum storage height

3

5,5

Approx. annual warehouse rental fee per 1 sq.m.

9 000r.

Approx. annual warehouse rental fee, total

900 000r.

Annual cost of utilities

100 00r.

Total warehouse expenditures

1 000 000r.

Investments

Shelving equipment cost

350000r.

1200000r.

Maintenance staff expenditures

Maintenance staff

2 people

Average annual salary (~20.000 r/month)

480 000r.

Taxes (~30%)

144 000r.

Total staff expenditures

624 000r.

Income

Number of stored tires

1 100

2 000

Cost of 1 tire storage per month

150r.

Annual profit (100% occupancy)

1 980 000r.

3 600 000r.

1st year profit

6 000r.

776 000r.

2nd year profit

356 000r.

1 976 000r.

Annual profit (80% occupancy)

1 584 000r.

2 880 000r.

1st year profit

-390 000r.

56 000r.

2nd year profit

-40 000r.

1 256 000r.

As can be seen, usage of the entire height of the warehouse gives us a significant advantage. And again, do not forget that the income was calculated only for the storage of tires. A provision of the additional services will significantly improve the profitability.

There are other options of tire storage. For example, the use of META MULTIBLOC mobile racks, which allows to maximize the storage capacity of tires.

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