The State of Tire Sales
According to the U.S. Automotive Tire Market Research Report, the retail tire market is bigger than ever before. Sales are estimated to reach $41 billion – and that’s just the start. That $41B market is made up of over 39,000 outlets, but few of these are national competitors, and most of them don’t take full advantage of the existing customer base. Here’s how the tire replacement industry looks today:
A majority of vendors are small automotive repair shops and local retailers. They may have a group of loyal customers in town, but they struggle to grow and contend with large chains. That’s because these stores lack the retail merchandising sophistication and purchasing power necessary to compete with corporations. Without in-depth analytics, insights into industry trends, and competitive pricing, they aren’t able to meet customer demand in the same way as a larger entity.
The national chains have addressed these particular issues – with fixed prices and significant purchasing power, they can offer a wider array of tires to customers. However, national chains lack the flexibility of smaller retailers. While local auto shops may work with low-income customers through payment plans and financing programs, national tire replacement giants generally neglect this share of the market. This is a huge loss for the customers and the chains.
At RNR Tire Express, we consider this segment to be our ideal customer base. We combine the flexibility and excellent service of small businesses with the strength and capabilities of national corporations.
The RNR Tire Express Difference
RNR Tire Express has secured a unique brand position in a multi-billion-dollar industry. We specialize in serving an underserved market: those who have a limited amount of cash or available credit (or simply don’t have the cash or credit cards on hand) to pay for replacement tires and custom wheels. We believe that those without credit still need access to quality products. The solution? Our franchise has crafted a groundbreaking financing option for customers of all income brackets.
Here’s how it works.
RNR Tire Express franchisees implement an innovative lease-purchase financing model that benefits both customers and the business. With this approach, customers are granted the time and payment flexibility required to acquire the products they need. This model also allows franchisees to make money on the sale of tires or wheels, the delivery of related services, and the receipt of lucrative lease payments. Additionally, lease-purchase plans prevent franchisees from falling into the cycle of steep discounting, which is common among tire franchises. Since our financing options are so competitive, we are able to offer standardized prices for improved margins across the board.
While most chains don’t offer this financing option, we have seen it as an astounding opportunity for growth. Today, this lease-purchase model makes up over 80% of our business. We have found that this allows RNR Tire Express locations to flourish even directly next door to other tire chains; our approach allows us to be competitive in any circumstance.
Award-Winning Tire Replacement Franchise
Our success has been documented by national outlets like Entrepreneur, which named us No. 1 in the Automotive – Wheel and Tire category on their Franchise 500 ranking. When deciding who will be named to the list, Entrepreneur analyzes a franchise’s performance with more than 150 data points. This evaluation resulted in recognition for RNR Tire Express’ performance in the areas of size and growth, franchise support, brand strength, cost and fees, and financial strength and stability.
When the rankings were released, Larry Sutton, RNR Tire Express’ CEO and founder, stated, “This ranking is a true testament to the hard work and dedication of our corporate support team, but more importantly, the passion and drive of our franchisees.”
Along with our sustained growth and continued expansion, accolades like the Franchise 500 ranking illustrate just how successful RNR Tire Express’ unique approach has been. We anticipate that this trend will continue in the years ahead.
The Future of Tire Replacement
This market is growing exponentially. In 2020, researchers from Hedges Company found that there were 287 million registered cars in the U.S. – this is a sharp jump from the 258 million they counted in 2015. There are more cars on the road today than at any other time in history, giving RNR Tire Express franchisees a long runway to future success.
Additionally, the tire market is well-insulated from other players like online retailers, including Google and Amazon. While many consumer goods have been monopolized by digital purchases, tires need to be balanced and aligned by professionals. This means that the industry remains defensible against corporate involvement, offering RNR Tire Express franchisees a unique brand position in a multi-billion-dollar industry.
About RNR Tire Express
RNR Tire Express is one of the largest, fastest-growing tire and custom wheels retailers in the United States. More than 80% of our franchisees are multi-unit owners, which demonstrates the strength of our business model. It also showcases the value we add to the franchisee-franchisor relationship.
Since our founding, RNR Tire Express has proven to be a wise investment for franchisees across the country. To learn more about our innovative lease-purchase model, available territories, and our profitability, download the franchise kit.