System and Method for Identifying Retail Tire Sales

1 . A method of calculating the return on investment associated with establishing a retail tire sales business, wherein the business sells tires to one or more carlines, comprising:

determining a sales goal measured in number of tires to be sold for a period of time;

calculating a tire sales figure for a time period by adding an average retail tire price and a charge for services involved in mounting and balancing a tire to generate a sum, and multiplying the sum by the sales goal;

calculating a service lane tire profit by adding together a total tire gross profit based on the sales goal and the average retail tire price and a cost associated with supplying labor at the tire service center;

calculating the total net profit by adding additional savings and subtracting additional expenses;

calculating the capital investment by adding together cost of purchasing tire installation equipment and inventory investment costs; and

calculating the return of investment by dividing the total net profit and expense savings by the capital investment.

2 . The method of claim 1 , further including calculating a monthly payback by dividing the return of investment by twelve (12).

3 . The method of claim 1 , further including calculating a reduction in number of visits to competitors by dividing the number of tires sold by a loyalty factor.

4 . The method of claim 1 , further including the calculation of inventory space requirements.

5 . The method of claim 1 , wherein an additional expense is a cost of satisfying warranty claims, wherein the cost is determined by multiplying a number of new annual car sales for the dealership by a warranty factor.

6 . The method of claim 1 , wherein an additional savings is a certified pre-owned savings, wherein savings are generated by comparing a cost associated with outsourcing tire replacement for a certified pre-owned car program with a cost associated with internally supplying new tires to certified pre-owned cars.

7 . The method of claim 1 , wherein the tire business is established at a car dealership that sells new, used, and certified pre-owned cars.

8 . The method of claim 1 , wherein the tire business is established at an automotive service center.

9 . A system of calculating the return on investment associated with establishing a retail tire sales business, wherein the business sells tires to one or more carlines, the system comprising:

one or more data processors;

one or more computer-readable mediums encoded with instructions for commanding the one or more data processors to execute steps that include:

determining a sales goal measured in number of tires to be sold for a period of time;

calculating a tire sales figure for a time period by adding an average retail tire price and a charge for services involved in mounting and balancing a tire to generate a sum, and multiplying the sum by the sales goal;

calculating a service lane tire profit by adding together a total tire gross profit based on the sales goal and the average retail tire price and a cost associated with supplying labor at the tire service center;

calculating the total net profit by adding additional savings and subtracting additional expenses;

calculating the capital investment by adding together cost of purchasing tire installation equipment and inventory investment costs; and

calculating the return of investment by dividing the total net profit and expense savings by the capital investment.

10 . The system of claim 9 , wherein the steps further include calculating a monthly payback by dividing the return of investment by twelve (12).

11 . The system of claim 9 , wherein the steps further include calculating a reduction in number of visits to competitors by dividing the number of tires sold by a loyalty factor.

12 . The system of claim 9 , wherein the steps further include the calculation of inventory space requirements.

13 . The system of claim 9 , wherein an additional expense is a cost of satisfying warranty claims, wherein the cost is determined by multiplying a number of new annual car sales for the dealership by a warranty factor.

14 . The system of claim 9 , wherein an additional savings is a certified pre-owned savings, wherein savings are generated by comparing a cost associated with outsourcing tire replacement for a certified pre-owned car program with a cost associated with internally supplying new tires to certified pre-owned cars.

15 . The system of claim 9 , wherein the tire business is established at a car dealership that sells new, used, and certified pre-owned cars.

16 . The system of claim 9 , wherein the tire business is established at an automotive service center.

17 . A computer-readable medium encoded with instructions for commanding the one or more data processors to execute steps that include:

determining a sales goal measured in number of tires to be sold for a period of time;

calculating a tire sales figure for a time period by adding an average retail tire price and a charge for services involved in mounting and balancing a tire to generate a sum, and multiplying the sum by the sales goal;

calculating a service lane tire profit by adding together a total tire gross profit based on the sales goal and the average retail tire price and a cost associated with supplying labor at the tire service center;

calculating the total net profit by adding additional savings and subtracting additional expenses;

calculating the capital investment by adding together cost of purchasing tire installation equipment and inventory investment costs; and

calculating the return of investment by dividing the total net profit and expense savings by the capital investment.