Tire and Tube Merchant Wholesalers Revenue Benchmarks
The average tire and tube merchant wholesalers business in the United States generates $19.1M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 1,146 tire and tube merchant wholesalers businesses in the U.S., employing 42,886 workers with an average profit margin of 4.0%. The average employee in this industry earns $71K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Tire and Tube Merchant Wholesalers Business Actually Do?
Tire and Tube Merchant Wholesalers: Businesses that buy goods in bulk from manufacturers and resell them to retailers or other businesses.
Who buys: Retailers, manufacturers, institutional buyers.
Sector-level description — a more specific write-up is available for high-traffic industries.
Average Revenue
$19.1M
per year
Profit Margin
4.0%
industry average
Revenue / Employee
$509K
per year
Total Businesses
1,146
in the US
Est. Owner Income
$762K
small business avg
Labor Cost
12.0%
of revenue
Avg Employee Wage
$71K
per year (BLS)
Market Saturation
0.3
firms per 100K people
How Much Do Tire and Tube Merchant Wholesalers Charge?
Tire and Tube Merchant Wholesalers: Wholesalers earn a spread of 5–20% between what they pay manufacturers and what they charge retailers. The specifics vary within the tire and tube merchant wholesalers category — the ranges below are typical for the sector.
| Service | Typical range |
|---|---|
Commodity wholesale (food, chemicals) | 3–8% gross margin |
Specialty wholesale (electronics, medical) | 12–25% gross margin |
Distribution fee (3PL) | 3–7% of goods handled |
Sector-typical ranges — individual services within this industry may fall higher or lower.
Complete tire and tube merchant wholesalers business plan
A 12-section data-backed business plan for a tire and tube merchant wholesalers 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 and tube merchant wholesalers 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 | $66 | $12.5M | Cost of inventory bought from manufacturers for resale to retailers or businesses. |
Wages & benefits | $12 | $2.3M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $8 | $1.6M | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $640K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $7 | $1.3M | Warehouse operating costs, freight, insurance, POS/ERP systems. |
Net profit | $4 | $762K | 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
6%
openings/year
Closure Rate
6.94%
closings/year
Net Job Growth
+1.56%
annual
Businesses Closed
992
in 2023
Firm Count Trend
Should You Start a Tire and Tube Merchant Wholesalers Business?
Startup Cost
$50K – $250K
Break-Even
2 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a tire and tube merchant wholesalers business do?
- Tire and Tube Merchant Wholesalers: Businesses that buy goods in bulk from manufacturers and resell them to retailers or other businesses. Retailers, manufacturers, institutional buyers.
- How much do tire and tube merchant wholesalers charge?
- Tire and Tube Merchant Wholesalers: Wholesalers earn a spread of 5–20% between what they pay manufacturers and what they charge retailers. The specifics vary within the tire and tube merchant wholesalers category — the ranges below are typical for the sector. See the pricing table above for typical rates by service type.
- How much does the average tire and tube merchant wholesalers make per year?
- The average tire and tube merchant wholesalers business generates $19.1M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $762K per year at a 4.0% profit margin.
- How many tire and tube merchant wholesalers businesses are there in the US?
- There are 1,146 tire and tube merchant wholesalers businesses operating in the United States, employing a total of 42,886 workers.
- How much does it cost to start a tire and tube merchant wholesalers business?
- Startup costs for a tire and tube merchant wholesalers business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the tire and tube merchant wholesalers industry?
- The average employee in the tire and tube merchant wholesalers industry earns $71K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The tire and tube merchant wholesalers industry is relatively stable — with a net job growth rate of 1.6%. Entry and exit rates are balanced at 6.0% and 6.9% respectively.
Approximately 70% of tire and tube merchant wholesalers businesses survive their first 5 years. This is above the national average (~50%), making it a relatively safe industry to enter. In 2023, 992 firms in this industry closed permanently.
Employment & Wages
The average employee in the tire and tube merchant wholesalers industry earns $70,794/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 2,389 establishments employing 33,752 people, the typical business has about 14 employees.
Industry Trend (2000–2023)
The tire and tube merchant wholesalers industry has declined 22% since 2000 (from 16,532 to 12,831 firms).
See full historical statistics →Compare Tire and Tube Merchant Wholesalers revenue with other industries: