Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/630954
MTD January 2016 Facts section: then and now Automotive services fnancial profle Service % ofering service average ticket/job number of jobs/month proft margin Air conditioning 63% $367.30 19 57% Alignment 88% $96.54 60 68% Batteries/electrical 91% $155.08 27 35% Bearings/seals 95% $264.83 15 48% Brakes 95% $287.44 44 53% Chassis/suspension 91% $329.32 32 51% Chemicals 77% $114.43 22 49% Cooling systems 80% $172.14 14 48% Electronic diagnosis 70% $84.11 21 60% Engine repair/diagnostic/tune-ups 71% $301.11 17 63% Exhaust systems 53% $295.00 8 53% Ignition and spark 74% $183.94 10 63% Mounting and balancing 98% $64.50 220 62% Oil and lubrication 91% $39.18 129 35% Shocks/struts 98% $427.57 11 45% Tire pressure monitoring systems 88% $93.87 26 41% Visibility (wipers) 86% $26.98 31 40% Service bays per outlet % of dealers having Number of bays 5% 1 9% 2 11% 3 6% 4 9% 5 15% 6 3% 7 18% 8 2% 9 7% 10 2% 11 1% 12 0% 13 1% 14 2% 15 9% 15+ Technicians per outlet % of dealers having Number of technicians 11% 1 17% 2 20% 3 21% 4 12% 5 4% 6 2% 7 2% 8 1% 9 1% 10 2% 11 2% 12 0% 13 2% 14 0% 15 3% 15+ Tire dealers with one location 5 Average number of service bays per outlet 7 Average number of technicians per outlet 60% ASE Master tech 0 10,000 20,000 30,000 40,000 50,000 60,000 Entry-level Mid-level Highest level Average wages for technicians and engine repair and diagnostics services are responsible for $1.5 billion, $1.3 billion, and $1.2 billion in sales, respectively. Tire pressure monitoring system (TPMS) service is a $747 million business for dealers. When sales from other service work (chemicals, cooling system, electronic diagnosis, exhaust system, ignition and spark plug, wipers) are included, the total amount of auto service work performed by independent tire dealers tops $26.6 billion annually. Dealers report margins of 68% for alignments, making it the most proftable service category. Te least proftable categories are bateries and electrical and oil and lubrication, both with margins of 35%. Average sales and earnings from automotive service for independent tire dealerships have remained relatively constant 42