Most of you are familiar with the sourcing and selling of second-hand clothing items. Many of you understand that business because you even buy second-hand clothes. Whereas some of you could be selling second-hand clothes. A lucrative area given its rapid growth in Zimbabwe but have you ever considered second tyres as a business focus in Zimbabwe? You could be missing out on a business idea that can work out well for you. Today let us discuss this area so that you get a better appreciation of the business.
The Second Tyres Industry In Zimbabwe
There are a significant number of motorists in Zimbabwe who use second-hand tyres. Be it they are replacing a damaged tyre or simply purchasing tyres, some people go for second-hand tyres. This is because they will be relatively cheaper. Do a snap survey of vehicles you see around you. If you know the owners or can strike up conversations with them you will see this. Chances are high that at least one of their tyres will be second-hand tyres. At times it can be the spare one that will be a second-hand tyre. There is no question about how broad and diverse the market for second-hand tyres is in Zimbabwe.
Key Approaches & Requirements
The core focus will be to source and sell second-hand tyres. If you want to capture more clients you must include installation services as well. That way if a client wants to install them right away you can provide the service. The idea is to offer comprehensive services to make your spot a one-stop spot. This implies you should also provide tyre repair services and pressure services as well.
You can even include retail of other vehicle-related products. For example, rims can be a smart inclusion in your inventory. Then items such as oils, lubricants, coolants, and the like can come in handy too. That is the beauty of the second-hand tyre business. It is scalable and can be diversified or pivoted to several other focuses. Your revenue streams can be several such that daily you realize revenue.
All this calls upon you to operate from a spacious location. You would need to have a workshop or garage kind of setup. This will be essential to allocating dedicated spaces e.g. the working area and stock (plus retailing area). As you can see you will need the equipment necessary for the services you will offer. Some of the equipment you can source second-hand as well. It is important to pick a location that is visible and easily accessible.
Keys To Success
Ensure that you have a wide collection or range of second-hand tyres. This should be informed by consumers’ buying habits. Do thorough market research to know what is most sought after. Create a framework that ensures you do not turn away clients due to a lack of tyres needed. This means you must have different sizes and types of tyres. Your market research will inform you on which vehicle types to major on. For some, it might suffice to just dwell on second-hand tyres for light motor vehicles. For some, they might include tyres for trucks, haulage vehicles, tractors, and the like. The other important key is to source the second-hand tyres from good sources.
You need to have second-hand tyres that look almost as new. You can source them from outlets that sell them and then resell them. You can also get them from places like vehicle-breaking yards. Another option is to engage companies or people who retread used tyres. Alternatively, you can source used tyres and retread them yourself. That would require you to get the relevant equipment to do that. Another way to source second-hand tyres is to allow people to come to sell them to you. Do not forget to check out auctions; they can be a strategic place to find good second-hand tyres.
Pricing is an important variable in this business. Your pricing should be such that people will opt to buy second-hand tyres rather than brand new ones. However, your pricing should also align with their age – there should be a balance. In principle, if a second-hand tyre was lightly used it should cost around 50 percent less than brand new tyres. The more it was used and the extent of its wear, the less it will cost. You must factor in other players’ prices and seek to price slightly lower than them. You have to ensure though that you are still being profitable.
When all is said and done, if you have tyres that cannot be used or sold anymore, monetize them. Nothing should go to waste! Recently I did an article where I mentioned rubber waste as trash to cash business idea. This is to further show you that the second-hand tyres business is limitless. Most players I know do this second-hand tyres business informally. You can set yourself apart by formalizing your operations. Getting registered and proper branding can distinguish you.