The I LOVE TIRES tool was developed by Dave Crawford and Tire Review for tire dealers, owners and managers to compare the profitability of selling tires versus selling service work.
Plug in your numbers and see how you do. The comparison is for a single bay in your shop, comparing it to what you can make in an hour on average service work versus average tire installation.
Want to play around? Feel free to enter different numbers if you want to see how selling “add-ons” or creating a new pricing level will affect profitability.
Service Calculations
Your shop's hourly labor rate:
Average hourly wage of a technician:
Hourly Labor Revenue:
Hourly Labor Cost:
Hourly Labor Profit:
Hourly Parts Revenue:
Hourly Parts Cost:
Hourly Parts Profit:
Hourly Total Profit from Service Work:
Tires Calculations
Single tire - average wholesale cost:
Single tire - Average Gross Profit %
Retail selling price x 4 tires:
Avg retail installation pkg per tire:
Revenue - install of 4 tires:
Avg price of tire protection plan:
Revenue - protection of 4 tires
Avg price of TPMS rebuilds:
Revenue - TPMS rebuilds 4 tires:
Nitrogen price per tire:
Revenue - Nitrogen - 4 tires:
Average hourly wage - tire tech:
Total “Loaded” hourly cost – tire tech:
Wholesale cost x 4 tires:
Hourly Revenue per bay (4-tires):
Hourly Cost per bay (4-tires):
Hourly Total Profit from Tires Work:
If the number below is black, you are making more money selling tires. If the number below is red, you are making more money selling service:
Visit TireReview.com for more information on keeping your business profitable. Questions? Contact Tire Review Editor Mary DellaValle at [email protected].