Casey Gleason
Bend, OR (USA)
Role(s):
Founder/Owner/Principal
All Season Tire Storage
Find More Startups
Startup
Location:
Bend
Industry:
Automotive
Year Founded:
2008
Number Employees:
1-10 people
Description:
Simply put, All Season stores seasonal tires. The set that is not on the client's car resides in our warehouse. This frees up valuable storage space at home for the client, but better still, our clients never have to touch their tires again. On tire change-out day, they drive to our warehouse where our staff will load the tires into the car, they drive to the tire service center where their staff does all the heavy lifting and change out, then the client returns to our warehouse where we store the other set until the next change-out time.
Our current market is Bend, Oregon, however this business model will work in any city with winter conditions harsh enough to cause a significant portion of the population to opt for the use of traction tires.
Bend has a population of approximately 75,000 with perhaps 100,000 to 125,000 residents in the immediate area that do business in Bend rather than other nearby cities. There are three Les Schwab tire centers in Bend and several other, smaller competing service centers. At the three Les Schwab tire centers alone, there are approximately 10,000 to 12,000 vehicles that have their tires switched twice yearly.
Our short-term (1 to 2 years) target is 5% of the Les Schwab customers, or 500 to 600 clients. Our longer-term (3 to 5 year) goal is 10%.
With proper racking systems, between 200 and 250 clients can be served per 1000 square feet of floor space. Current rates for commercial space in Bend are between $0.45 and $0.55 +NNN.
A 3000 square foot warehouse could accommodate between 600 and 750 clients yielding annual gross revenues of between $60,000 and $75,000 at $100.00 per set of tires per year. Rent and utilities on such a facility would be between $24,000 and $30,000.
This operation would only be labor intensive for approximately 4 to 6 weeks twice yearly. Net revenues in the $30k to $45 may not sound all that exciting for this one operation, but when one considers other locations where this formula would work, there would be a substantial profit. Spokane, Washington, for instance, has a similar climate but 3 or 4 times the population. Plus, commercial rental rates are less there on average. Tri-Cities, Boise, Klamath Falls, Yakima, Wenatchee, maybe even Denver.