How to manage a tire shop

This guide covers the things that decide how smoothly a small tire shop runs: the daily workflow, tire inventory control, tire sales estimates, tread depth and DOT codes, and seasonal storage. It works with a notebook and a spreadsheet, and it gets easier with the right tool.

A daily workflow for a tire shop

Every job should follow the same path, so nothing depends on somebody's memory. A simple version for tire shop daily operations:

1. Check in: customer name, phone, vehicle, and what they asked for.
2. Inspect: measure tread depth on each wheel and note the tire condition before quoting anything.
3. Quote: write an itemized estimate and get a yes or no before the car goes on the lift.
4. Work order: the approved estimate becomes the job ticket for the bay.
5. Invoice: bill exactly what was quoted, plus anything the customer approved along the way.
6. Close out: update stock, and note when the customer should come back.

Tire inventory control: count, organize, reorder

Inventory is the biggest pile of cash in a tire shop, and the easiest to lose track of. A basic system for a small shop:

• Organize by size first, then brand. Customers ask "do you have a 225/65R17?", not "do you have Brand X?".
• Set a minimum for each fast-moving size. When the count hits it, it goes on the reorder list. Don't rely on remembering.
• Count on a schedule. Fast movers weekly, everything else monthly or quarterly. Small gaps found early are cheap to fix.
• Watch the age of your stock. The DOT date code tells you when a tire was made. Decide what age is too old to sell as "new", and move old stock first.
• Track cost and price. Knowing what you paid for a tire is the only way to know your margin on it.
• Find your dead stock. Anything that hasn't moved in a year is money on a shelf. Discount it or stop reordering it.

Tire sales estimates that close the job

The estimate is where customers decide whether to trust you. A good tire estimate is easy to read and hard to argue with:

• Itemized lines: tires, mounting, balancing, valve stems, TPMS service if needed, disposal fees, tax. No surprises at the counter.
• Two or three options: good, better and best, so the customer chooses between tires and not between "yes" and "no".
• A clear reason: "front tires are at 3/32, rear are at 6/32" is more convincing than "you need tires".
• A valid-until date: prices move, and it gives the customer a reason to answer.
• A follow-up: if there is no answer in a day or two, call or message. Many quotes are won on the second contact.

Tread depth and inspections: show, don't tell

Measure each wheel with a depth gauge and write down the number, in 32nds of an inch. In most US states the legal minimum is 2/32", and many shops start recommending replacement at 4/32" because wet-road grip drops off well before that. Here is a short version of what each reading means:

Recording depth wheel by wheel, with the date, gives the customer evidence and gives you a history: next visit you can show how much the tire has worn since the last one. For every reading from 12/32" to 1/32", the penny and quarter tests, and truck tires, see the full tire tread depth chart.

How to read a DOT code on tires (and check a tire's age)

Every tire sold in the US has a DOT code moulded into the sidewall. For a shop, the part that matters most is the date code: the last four digits, which tell you when the tire was made. The whole DOT tire code reads, from left to right:

• DOT: the marker that starts the code.
• Plant code: the first two characters after DOT identify the factory where it was made.
• Tire size code: the next two characters.
• Manufacturer's optional code: up to four characters, specific to the brand.
• Date code: four digits. The first two are the week and the last two are the year. So 2523 means the 25th week of 2023.

Tires made before the year 2000 use a three-digit date code, so a tire with a three-digit date is very old and shouldn't be sold or refitted.

Why it matters for a shop: rubber ages even when a tire is never used. Many tire makers recommend an inspection once a tire is around five years old and replacement at ten years regardless of tread, but check the manufacturer's guidance for the brand you sell. Read the date code when stock arrives and before you sell a "new" tire, and log it against the item so you can sell the oldest stock first.

Seasonal tire storage: how to do it right

Seasonal tire storage means swapping winter and summer sets and keeping the off-season set until it's needed. It is a service many shops offer, and a steady source of repeat visits. It has two parts: how you store the tires, and how you keep track of them.

Storing the tires properly

• Cool, dry and dark. Heat and direct sunlight age rubber faster.
• Away from ozone sources such as electric motors and sparking equipment.
• Mounted on rims: stack them flat, keeping the stack short, or hang them.
• Without rims: store them upright, and turn them from time to time to avoid flat spots.
• Clean them first, and use a tire bag if you want to keep dust and dirt off.

Keeping the records straight

Treat each stored set like a small inventory item. For every set, record:

• The customer and the vehicle.
• The rack or bay it sits on.
• The date it came in and when it's due back.
• The condition and tread depth at drop-off, so there is no dispute at pickup.

If you charge for seasonal tire storage, price it per set per season, and set the fee to cover the floor space and the handling time, not just the rack.

What to measure each week in a small tire shop

You don't need a dashboard full of charts. Five numbers are enough to know how the shop is doing:

• Tires sold this week.
• Gross margin per tire.
• Estimates sent vs. estimates accepted.
• Appointments booked vs. no-shows.
• Stock below its minimum, and stock that isn't moving.

Where software helps (and when a notebook is enough)

You can run all of this from a notebook and a spreadsheet, and many shops do. It starts to hurt when the same information gets typed three times, when the stock count and the shelf disagree, or when you can't find last year's tread numbers for a customer standing at the counter.

That is what OwnDesk Tire was built for: inventory by size and brand with low-stock warnings, work orders, tread depth by wheel, DOT tracking, seasonal storage, appointments and branded invoices, on one computer, with a one-time payment.

Frequently asked questions