Tire Dealers Revenue Benchmarks
The average tire dealers business in the United States generates $4.7M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 11,027 tire dealers businesses in the U.S., employing 176,511 workers with an average profit margin of 4.0%.
What Does a Tire Dealers Business Actually Do?
Retail tire shops that sell, install, balance, and align tires. Most also offer basic maintenance (brakes, oil, batteries) to grow ticket size.
Who buys: Vehicle owners needing tire replacement, seasonal changeover (winter tires), or repair.
Average Revenue
$4.7M
per year
Profit Margin
4.0%
industry average
Revenue / Employee
$294K
per year
Total Businesses
11,027
in the US
Est. Owner Income
$188K
small business avg
Labor Cost
15.0%
of revenue
Avg Employee Wage
N/A
per year (BLS)
Market Saturation
3.3
firms per 100K people
How Much Do Tire Dealers Charge?
Tire shops earn 20–30% margin on tires plus installation and service revenue.
| Service | Typical range |
|---|---|
Standard passenger tire | $120–250 per tire |
Truck / SUV tire | $180–400 per tire |
Performance / premium tire | $250–500 per tire |
Installation (per tire) | $20–35 |
Balance | $10–20 per tire |
Alignment | $80–150 |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete tire dealers business plan
A 12-section data-backed business plan for a tire dealers business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the tire dealers industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Cost of goods sold | $61 | $2.9M | Wholesale cost of merchandise purchased for resale. Retail's biggest expense. |
Wages & benefits | $15 | $707K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $8 | $382K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $4 | $191K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $8 | $382K | Utilities, POS fees, shrinkage, insurance, store maintenance. |
Net profit | $4 | $188K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
4.21%
openings/year
Closure Rate
4.45%
closings/year
Net Job Growth
-0.78%
annual
Businesses Closed
1,841
in 2023
Firm Count Trend
Should You Start a Tire Dealers Business?
Startup Cost
$75K – $400K
Break-Even
15 months
5-Year Survival Rate
48.0%
Related Industries
Frequently Asked Questions
- What does a tire dealers business do?
- Retail tire shops that sell, install, balance, and align tires. Most also offer basic maintenance (brakes, oil, batteries) to grow ticket size. Vehicle owners needing tire replacement, seasonal changeover (winter tires), or repair.
- How much do tire dealers charge?
- Tire shops earn 20–30% margin on tires plus installation and service revenue. See the pricing table above for typical rates by service type.
- How much does the average tire dealers make per year?
- The average tire dealers business generates $4.7M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $188K per year at a 4.0% profit margin.
- How many tire dealers businesses are there in the US?
- There are 11,027 tire dealers businesses operating in the United States, employing a total of 176,511 workers.
- How much does it cost to start a tire dealers business?
- Startup costs for a tire dealers business typically range from $75K to $400K, with a 5-year survival rate of 48.0%.
Industry Growth & Survival
The tire dealers industry is relatively stable — with a net job growth rate of -0.8%. Entry and exit rates are balanced at 4.2% and 4.4% respectively.
Approximately 80% of tire dealers businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 1,841 firms in this industry closed permanently.
Industry Trend (2000–2023)
The tire dealers industry has declined 33% since 2000 (from 35,528 to 23,904 firms).
See full historical statistics →Compare Tire Dealers revenue with other industries: