How viable is an alloy wheel business?
Let’s look at the UK market statistics. You will be surprised!
When you’re considering buying a franchise, the viability of the sector you’re looking at is just as important as the way the franchise model is set-up. Which is why we’re bringing you an industry update, to help you make sense of how profitable your The Wheel Specialist business can be, with the right mindset.
Every year, 33% of cars in the UK are being driven with damaged alloy wheels, with estimated costs around £890 million to fix.[1] More often than not, the damage is caused by kerbing which, 80% of people polled by Škoda, blamed on a family member! The other culprit for damaging our wheels, are the reported 1.5million potholes[2] across the UK meaning wheels are 1.6 times more likely[3] to be impacted by potholes than 17 years ago.
What does this mean for your business?
Whilst some people are content to drive around with damaged alloys, many are not! The type of drivers who aren’t, tend to use premium-classified tyres – and, based on the customers of our network services, these are your target market. People who understand the importance of premium, when it comes to the performance of their wheels.
According to Transparency Market Research, Inc., the alloy wheel market is worth an estimated $31.6 billion, and expected to grow at a CAGR of 8.1% to reach $ 44.2 Billion[4]. Making the prospect of running your own The Wheel Specialist fairly attractive. Especially, when you consider the network collectively quotes for over £30million of work queried each year. And our network of The Wheel Specialist franchise owners, report they’re carrying out increasing numbers of wheel straightening, buckles and welding, to fix damaged wheels.
Our customers don’t hesitate to use us, in recognition of the old adage “you get what you pay for”. So, when they see the unit you and your team will work from, to the highest of standards, they feel reassured their cars are in safe hands… it’s why some of our franchisees are working on cars worth millions at any one time. Customers want the security of knowing their cars won’t be damaged whilst work is carried out – so they trust us.
The Wheel Specialist knows!
How do we know our model works? Our first franchisee, Andy Thompson, bought his (the very first franchise!) The Wheel Specialist centre in 2007. He’s since invested in a second unit, and is now the UK network’s Technical Director. His expertise and experience are being put to full use, to support the rest of the franchise network to grow their own profitable businesses with us.
And we’re doing something right. At our last annual conference, we measured a number of key metrics to show the network’s growth in 2022. We highlighted 30 specifics which showed significant growth network-wide, with some of our services showing a 175% & 213% increase YoY.
Your opportunity, with our support
As a management franchise, The Wheel Specialist offers you the chance to grow a business exponentially. With our easy-to-follow model, and the many additional services which give you additional income streams, you can experience a return on your investment within three years. You could also enjoy profits in excess of £190k (based on the audited adjusted accounts from a high-performing franchisee, rather than submitted accounts).
And, like Andy, as your business meets demand, and grows, you could open multiple-units, to further accelerate your business growth.
Carpe Diem
Don’t put off until tomorrow, what you can start today, and build for a better tomorrow! Contact us today, to discover what The Wheel Specialist could mean for you.
[1] https://totallossgap.co.uk/blog/post/the-costs-of-damaged-wheels-in-the-uk-ps800-million-plus/573
[2] https://www.rac.co.uk/drive/advice/driving-advice/rac-pothole-index-statistics-data-and-projections/
[3] The Pothole Index
[4] https://www.alliedmarketresearch.com/alloy-wheels-market-A31905