Leverage our used tire shop pitch deck and get funded

Issue

The used tire market is a complicated industry. Ordinary people continually struggle to find the right place to dispose of their used tires, and many of them end up polluting the environment. Additionally, low-income households face significant challenges in finding affordable tires for their cars.

One day, Maria, a local single mom, faced a flat tire problem she couldn’t afford to fix. She looked for a cheaper alternative but couldn’t find one. One tire shop charged him an exorbitant price, while the others refused to offer him a lower price. Eventually, she had to borrow money from friends and use it to buy a new tire.

This problem is common in low-income communities. People in this demographic frequently rely on used tires to save money without compromising their safety, but the scarcity of tire stores and high prices for new tires often leave them vulnerable. Additionally, few stores are prepared to properly dispose of old tires, leading to an increased risk to the environment and road safety.

Relevance of the issue

The issue of affordability and scarcity of used tire stores is a widespread problem in the United States. In cities where low-income households make up the majority of the population, new tire prices are too high for them to afford. As such, they turn to used tires to save money, which isn’t always the safest option. Additionally, existing tire stores are too few and too far from where many people live, making it an additional challenge for people to access affordable tires. Consequently, the industry contributes to the environmental risks caused by tire waste improperly disposed of by tire shops.

Current solutions for the problem

Currently, the only practical solution to finding affordable used tires is to scour the internet for used tires in the area. The scarcity of tire shops specializing in used tires and the fact that only a few provide proper disposal services means that there are very few alternatives. Unfortunately, the cost of traveling to a distant location to access a used tire store is usually more than the price of buying new tires. Families often work long hours and are on a tight budget, which also makes such trips impractical. The few tire shops that exist that offer used tires on load for their services.

Reasons for the existence of the problem

The scarcity of used tire stores is a direct result of an underdeveloped industry, with few opportunities for new entrants. Small companies seek to focus on new tires that offer a better profit margin, while larger companies often view used tires as obsolete and unprofitable. The lack of legislation around tire waste and the disposal of old tires in specific locations, hinders the development of the industry, leading to companies hoarding unusable tires.

The unsustainability of the used tire industry is slowly destroying the environment causing significant hazards on the roads. It is high time the industry addressed its all-serving waste disposal and pricing structures with the ultimate goal of striking the right balance between environmental sustainability and affordability.

Solution

Our solution is to open a used tire shop that offers affordable and reliable options for people who need their tires changed but can’t afford brand new ones. We buy high quality used tires that are still in excellent condition and sell them at a fraction of the cost of new tires. This solution addresses the problem of people who need tires for their vehicles but cannot afford new ones or are hesitant to purchase used tires from unknown sources.

Our used tire store acts as a reliable and trustworthy source for used tires. We only accept tires that meet our high standards for safety and quality, and our knowledgeable staff inspects each tire before selling it. This ensures that our customers can confidently purchase used tires without worrying about safety issues or inferior quality.

We aim to make buying used tires a stress-free and enjoyable experience for our customers. Our store is designed to be comfortable and welcoming, with friendly, knowledgeable staff who are always ready to help customers. We also offer a range of tire services, such as tire installation and balancing, to provide complete solutions for our customers.

How we found the solution

Our team has extensive experience in the tire industry, and we have noticed a growing demand for affordable tire options. We also recognize that many people are hesitant to buy used tires due to safety concerns and lack of trust in used tire sources. After doing extensive research and testing, we realized we could provide a reliable and affordable solution that people could trust.

To further demonstrate our commitment to quality and safety, we have partnered with leading tire manufacturers and industry experts to ensure that our used tires meet or exceed industry standards. We also offer a warranty on all of our used tires to give our customers peace of mind and confidence in their purchase.

Customer benefits

• Access to high quality used tires at affordable prices
• Trusted source for reliable and safe used tires
• Comfortable and welcoming shopping experience
• Full tire services available

Our solution effectively addresses the problem of affordable and reliable tire options, and our commitment to quality, safety and good customer service ensures that customers will come back. Our solution is amazing because it not only solves a problem, but also delivers value to customers and establishes trust and credibility in the used tire market.

Market validation

The used tire market is a lucrative field, with a total addressable market size of .4 billion in the United States alone. There are over 225 million vehicles on the road, and each one will eventually require tire replacement.

One of the key market details addressed is that tires have a limited lifespan and the customer must purchase replacements regularly. Average tires last about 50,000 miles, and with Americans driving about 13,000 miles a year, that means people buy tires every three to four years.

Starting a used tire shop is a great idea as the industry continues to grow, and there is a consistent demand for high quality used tires. Additionally, used tires are becoming increasingly popular as more and more people look for affordable tire options. Customers can save 50% or more by buying used tires rather than buying new.

The used tire market is growing, with the size of the industry expanding at a rate of 2.2% per year. Additionally, environmental concerns have led more and more consumers to look for environmentally friendly alternatives to buying new tires. As a result, the used tire market is becoming increasingly important and the demand is expected to continue to increase in the coming years.

Customers are willing to pay a significant price for used tires. A set of four used tires can cost between 0 and 0, depending on the brand, type and condition of the tire. With growing industry demand, consumers are willing to invest in quality used tires to save money in the long run.

• The MPR for the used tire market is .4 billion in the United States alone.
• The average tire life is around 50,000 miles, with replacement required every three to four years.
• Starting a used tire business is a great idea as the industry continues to grow and the demand for environmentally friendly and affordable tire options.
• The used tire market is expected to grow at a rate of 2.2% per year.
• A set of four used tires can cost between 0 and 0, depending on the brand, type and condition.

business model

Our strategy at the Used Tire Shop is to provide affordable and reliable products to our customers while making a profit. Our main sources of income come from the sale of high quality used tires and rims, as well as tire services, such as tire mounting, balancing and repair.

Our pricing strategy is to offer competitive prices lower than those of our competitors. This is possible because we source our tires directly from wholesalers and individual sellers rather than manufacturers. This allows us to offer our customers significant cost savings while providing top quality tires.

• Sales revenue: Our primary source of revenue is selling used tires and rims. We aim to increase our product offerings as we expand our market reach. We project generating total revenue of .5 million in the first year.
• Tire Services: We provide services such as tire mounting, balancing and repair, which will also contribute to our revenue. We plan to offer these services at competitive prices, which will attract more customers and encourage repeat business. We estimate to generate a total revenue of 0,000 in the first year of tire service charges.
• New Tire Sales: We also aim to generate revenue by selling a small selection of new tires. By offering these new tires at competitive prices, we can provide our customers with more options while making a profit.

To reduce our costs, we will maximize our inventory turnover rate by making bulk purchases of used tires and maintaining only essential inventory. We will also implement effective inventory management practices to eliminate the need for unnecessary warehouse space and mitigate costs associated with inventory management.

In order to streamline operations and minimize expenses, we will leverage technology to automate some of our processes, such as inventory management, ordering and invoicing. We will also use social media and online marketplaces to promote our products and services and expand our customer base.

With this business model, we project strong investment returns and steady revenue growth. We aim to expand our reach and open new locations as we continue to grow our customer base and build our reputation as a reliable supplier of high quality used tires and rims.

Competition

Who are your competitors?

Our competitors are other used tire stores in the local market. The biggest competitors are XYZ Motors, which operates in the same locality as us, and ABC Tires, which is a well-established brand across the city. Other smaller competitors like PQR Tires and LMN Wheels operate in our locality but have a smaller customer base compared to our main competitors.

Who could do what you are going to do?

There is always the possibility of new market entrants choosing to open a used tire shop, but the barriers to entry into this industry are relatively low. There are also local mechanisms that sell used tires, but they lack the expertise to offer a transparent service, which gives us an advantage over them.

What makes you better?

We have a comprehensive understanding of the used tire market, which enables us to offer high quality products at competitive prices. Unlike some of our competitors who sell defective and poor quality products, we only sell well maintained, high quality tires that give our customers value for their money.

What are your USPs?

• Expertise in the used tire market
• High quality products at competitive prices
• Great customer service
• Qualified technicians who install tires in a short time
• Online tire ordering and reservation system

Who steals your customers and how?

Our competitors are notorious for stealing from our customers by offering lower prices for the same products. However, they often sell low quality products which do not give our customers value for their money. We continually educate our customers on the importance of quality products, which has helped us retain our customer base over the years.

Founding team

Our founding team is made up of highly qualified and experienced individuals who have a passion for the tire industry and business.

John Smith – Founder and CEO

• Graduated from XYZ University with a degree in Business Administration
• Over 10 years of experience in the tire industry, including the management of five tire shops
• Successfully launched and sold a previous business

John’s extensive experience in the tire industry, combined with his business knowledge and successful track record, makes him an ideal leader for our team.

Jane Doe – CFO

• Certified CPA
• More than 20 years of experience in financial management
• Worked for Fortune 500 companies including Xyz Corp

Jane’s exceptional financial management skills, including budgeting, forecasting and financial analysis, make her a valuable asset to our team.

Mike Johnson – CTO

• BS in Computer Science from ABC University
• Over 15 years of experience in software development
• Founded and successfully sold two software companies

Mike’s extensive experience in software development, including building e-commerce platforms, will allow us to create a robust and user-friendly online store for our customers.

Tom Lee – Service Manager

• Over 18 years of experience in the tire industry, including managing service teams at multiple tire stores
• ASE Certified Master Technician
• Expertise in tire service, including installation, repair and maintenance

With his in-depth knowledge of the tire industry and exceptional management skills, Tom will lead our services team and ensure that we provide top-notch service to our customers.

Aim

Our goal is to provide high quality, affordable used tires to our customers while providing exceptional service and customer experience. We strive to be the pre-owned tire shop in our region, and our founding team’s expertise and passion for the industry will enable us to achieve this goal.

SKILLS

Our team has extensive experience in the tire industry, business management, finance, software development and customer service. We believe these skills are crucial to our success.

The right people for the challenge

We are the right people for the challenge, as we have the skills and experience to make this endeavor a success. Our team has a proven track record of launching and running successful businesses and excelling in our respective fields. Together we are confident that we can make our used tire store a hugely successful business.

Traction

In second-hand tyres, we have steadily progressed and gained ground in the market. Since our launch six months ago, we have seen a 10% increase in monthly sales , and our customer base has grown by 15% .

We have found that customers love our products and services, and we consistently receive positive feedback and reviews. Our Net Promoter Score is 9.5 out of 10 , which is a clear indication of our commitment to customer satisfaction.

Our goal has been to achieve product market fit, and we have achieved this by analyzing our key metrics and ensuring they improve. One of our critical drivers has been customer acquisition, and we’ve seen a substantial increase in the number of leads coming in each month. Our customer acquisition rate has increased by 20% in the past three months alone.

We were also able to significantly reduce our customer acquisition costs, by 15% , through targeted marketing campaigns and word of mouth referrals. Additionally, we were able to increase our customer value 25% increase in repeat customers .

There is massive growth potential for the tire shop industry, and we have been able to grab a significant chunk of our market share. Our goal, going forward, is to expand our reach by opening new locations, increasing our online presence and partnering with other companies in the automotive industry.

• 10% increase in monthly sales
• 15% growth in our customer base
• Net promoter score of 9.5 out of 10
• 20% increase in customer acquisition rate
• 15% reduction in customer acquisition cost
• 25% increase in repeat customers

Fund raising

Our used tire store is seeking 0,000 in seed funding to fund our plans to expand and acquire inventory over the next year. Our unique value proposition is selling quality used tires at affordable prices that appeals to individuals and small businesses on a budget.

Funds raised will be allocated to the following:

• Acquisition of inventory: We plan to purchase a significant quantity of quality used tires from reliable sources to meet the growing demand for our products.
• Marketing: We aim to advertise our business through social media, billboards and other forms of advertising to increase market awareness.
• Equipment: We need to buy equipment that can handle the extra volume of tires we plan to sell.
• Staff: We need to hire additional staff to handle the increased volume of customers we will attract.

With these funds, our goal is to increase the visibility of our market and expand our customer base by offering quality used tires at affordable prices. Our expansion plans include opening a new location in a strategic location, increasing our inventory selection and offering additional tire maintenance services. We aim to achieve the following milestones:

• Increase revenue by 50% in the next fiscal year.
• Grow our customer base by 25% over the next fiscal year.
• Reduce inventory turnaround time from six months to four months.
• Provide tire maintenance services to customers within six months of opening the new location.

Investing in our used tire store offers investors the opportunity to capitalize on a growing market demand for quality used tires at affordable prices. With our experience, expertise and commitment to client satisfaction, we are confident that we can deliver strong investment returns to our investors.