ROI: Tire Rotation/Wheel Balancing

Aug. 1, 2005
Are tire rotations really that profitable? You do the math.

Many technical speakers have discussed the merits of performing tire rotations to increase profits. All you need to get started is a Bend-Pak model P-6 or P-6F Pit Lift. To increase this lucrative service's profit earning potential, it helps to combine wheel balancing along with the rotation.

Tire rotation only - 4 wheels.
Are tire rotations really that profitable? You do the math.

Price per service: $16.95
Parts/Supplies: $0.00
Labor Costs: (Based on an average hourly wage of $20.00) $5.00
Profit per service: $11.95
Frequency: 60 jobs/month.
Total profit/month: $717
Cost of unit: $2,000
ROI timeframe: 2.8 months to recoup the cost.
1st year profits: $6,604.00
Annual profits: $8,604.00

Tire rotation with wheel balance - 4 wheels.
A Ranger model DST-1000 wheel balancer was designed for virtually all domestic and foreign automotive and light truck wheels.

Price for service: $60.00
Parts/supplies: $6.00
Labor: $20.00
Profit per service: $34.00
Frequency: 40 jobs/month.
Total profit/month: $1,360
Cost of unit, lift: $2,000.00
Cost of unit, balancer: $1,950.00
ROI timeframe: 2.9 months
1st year profits: $12,370.00
Annual profits: $16,320.00

For information contact Bend-Pak/Ranger at 1-800-253-2363; Fax 1-805-933-9160; Or visit their web-site www.bendpak.com or www.rangerproducts.com.

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