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Sunday, October 2, 2016

How to Start a Tire Service Repair Center in Nigeria


If you wish to start an automobile tire service business in Nigeria, exercise a little patience as I share a few details with you on how to go about it. First though there is a high demand by car owners in Nigeria for tire service owing to the peculiar nature of our bad roads and the constant use of second hand tires has resulted in an increase for various automobile tire services such as; gauging, wheel balancing, alignment, tire patching and even sales of tires. The opportunity is so vast that mentioning an exact market size is not feasible – most operators in this business operate from the informal sector. This is a business venture that can churn out at least N80,000 per day in sales with gross profit at over N48,000 per day if well run and the business has a solid marketing strategy.

Opportunities
  • More than 8 million cars in Nigeria
  • Second hand tires are more likely to require tire servicing than new ones
  • Less than 2 million cars in Nigeria use brand new tires
  • Bad roads reduce the lifespan of tires
  • Brand new tires are very expensive and as a result a lot of Nigerian car owners are settling for second hand tires which are often not the best for their use
  • On average Nigerian car owners visit tire service centers at least once every 4 months
  • The average car owner spends at least N2,500 on wheel balancing and alignment
Success Factors
  • Suitable location
  • Efficient Power Supply – if you are using electrical powered machines
  • Skilled Manpower
Marketing Strategy
  • Your key marketing strategy should incorporate the following
  • Location
  • Excellent Service
  • Relationship marketing

Startup Requirements
  • Stock of tires – N1,500,000
  • Stock of tire accessories – N300,000
  • Rent – N600,000
  • Electric Powered wheel balance machine – N1,200,000
  • Administrative startup expenses – N250,000
  • Contingency – N300,000 
  • Total – N4,150,000
Looking to write or prepare a solid business plan? Give me a call: 0803 206 4106 to get one professionally written for you.

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