The Stats on Tire & Auto Repair Businesses
You can find lots of people who will tell you that investing in a tire and auto repair business is a promising idea. They will give you lots of reasons as to why investing in a tire and auto repair business is a promising idea. And many of those reasons will be valid and persuasive. But what do the cold hard facts say? Are there any statistics that indicate tire and auto repair businesses are a sound investment?
Vehicles on the Road
One of the main reasons why a tire and auto repair business has such exciting potential for profit lies in its very large base of potential customers. Because anybody who drives their own vehicle is a potential customer. And there are a lot of vehicles out there on the road. We know, we checked. There were an estimated 268.8 million vehicles registered in the United States in 2016. That’s a significant number and what’s more, each of those 268.8 million vehicles will need to be serviced and will need to be repaired at some point. That’s where auto service franchises get their business.
But it’s not just the number of vehicles on the road, it’s also the nature of tire and auto repairs and maintenance. All those vehicles need regular service and will likely need to be repaired more than once over the course of their lives. If a tire and auto repair business does an excellent job of servicing and repairing those vehicles, they are likely to win themselves repeat customers, possibly even regular, loyal customers for life.
The tire and auto repair business generate a lot of revenue. According to IHS Economics, the tire and auto repair business made an estimated $44 billion dollars in 2016, up from $41.92 billion in 2015. And that’s just in the United States alone. Why the increase in revenues?
One reason for the increase in revenues for the tire and auto repair business is that Americans are, on average, hanging on to their vehicles longer. According to an IHS Automotive survey, the average age of a vehicle operating in the America is 11.5 years, which is a record high. Moreover, approximately 14 million vehicles on the road are 25 years old or older. The number of vehicles that are older than 12 years is projected to rise by 15% over the next five years. These are all good signs for the tire and auto repair business because older vehicles require more maintenance and repairs than newer ones.
The Stats for Tuffy & Tire Auto Service
The gross sales of Tuffy Tire & Auto Service franchisees in 2017 ranged from $286,434 on the low end to $2,155,196 on the high end, based on the 96-franchised stores that had been in operation for at least two years and have at least six bays. Clearly, Tuffy franchisees can get a substantial chunk of all that revenue in the tire and auto repair business.
Get in Touch
If you would like to learn more about the tire and auto repair business, or get started on acquiring your own Tuffy Tire & Auto Service franchise, please contact us today.Back