PLUMBING PRACTICAL BUSINESS IDEAS Using electricity to generate development

PLUMBING 'lTD
HOW MUCH DOES THE SERVICE CHARGE? G PRACTICAL
SOLUTIONS FOR

In the market, the average price for repairing a car tire with a patch is S/. 2.00; If the cost of providing this service is S/. 1.14, to set POVERTY

the sales price we could offer the same market price or at a lower price but above costs. Everything will depend on the competition
WHAT DOES A PLUMBING BUSINESS DO?
and location of the business.

It is suggested to offer this service at the same market price (S/. 2.00) but with good customer service.
It is a business dedicated to the repair service of vehicle tires through hot and cold
The sales prices of other items offered in the business, such as cameras and pitons, are set taking into account the purchase price vulcanization or the use of plugs.
plus a percentage of profit.

WHAT SERVICES DOES THE LLANTERING BUSINESS

PROVIDE?
WHAT IS THE PROFIT IN THIS BUSINESS? Tire shops mainly offer vehicle tire repair services through vulcanization.

For the repair, gutta-percha is used for rubber, which is glued to the chamber using the electric tire vulcanizer, which in turn uses a mechanical
Profit is the difference between the price charged to the customer and the cost of repairing a tire. That is, the profit we have left after covering all press. For tubeless tires, repair is done by applying plugs to the holes with cold patching.
costs.

In the example presented, the cost of repairing a car tire with a patch is S/. 1.14. If we set the sale price for this service at S/. 2.00; then our profit
for each tire repaired would be S/. 0.86. WHO ARE THE CUSTOMERS?

OTHER ASPECTS TO TAKE INTO ACCOUNT WHEN OPENING A TIRE BUSINESS The potential clients of the tire shops are:

• Owners of motor vehicles (motorcycles, motorbikes, motorcycle taxis, cars, vans, minibuses and trucks).
Minimum requirements for its operation:
• Owners of bicycles and tricycles.
• RUC obtained from SUNAT.
• Operating license, granted by the Municipality.
WHO ARE YOU COMPETING WITH IN THIS BUSINESS?

The competitors are the other businesses dedicated to tire manufacturing, located in the areas near the business.
• The business must be located in places with a lot of vehicular traffic, such as streets or highways, access roads to cities; close
to garages, mechanics workshops, land terminals; and where there is traffic of people.

• Network with vehicle owners, mechanic shops, garages, taps, transportation companies, to promote the tire service. HOW MUCH DO YOU CHARGE FOR TIRE REPAIR SERVICE?

• Offer complementary items to the tire service such as: patches, bicycle parts, cameras, air gauges, brake fluid, among others.
The approximate prices for tire repair services are:
• Offer good customer service. You can check the tires for free, correct the air pressure according to technical standards and
clean the vehicle's windshield. • Bicycle and tricycle tire S/. 1.50 for each patch.
• Car tire, minibus S/. 2.00 for each patch.
• To set the sales prices for repair services for different types of tires, take into account the cost structure of the services, the • Truck, bus tire S/. 2.50 for each patch.
competition's sales prices and the customers' ability to pay.

HOW ARE TIRE REPAIR SERVICES SOLD?

Tire repair services are carried out directly on the premises. In some cases, it is possible to perform service at the location where the vehicle is
“Micropower Plant Promotion Fund - 2nd Phase” Project. Financing and Technical Cooperation Agreement Nos. SP/EM-00-03 and ATN/EM-6922 - PE.
Credit and Technical Cooperation Project. located.
More reports :
LIMA: Av. Jorge Chávez 275 - Miraflores CAJAMARCA: Las Casuarinas 738, Urb. The wit JAEN: Diego Palomino 1607
Telephones: (01) 447-5127 / 446-7324 Telephones: (076) 824024 / 828861 Telephone: (076) 733085
Email: energia@itdg.org.pe
 TIREWORK TIREWORK

WHEREWHAT SIZE OF PREMISES DOES THIS BUSINESS CAN YOU PURCHASE EQUIPMENT, ACCESSORIES AND SUPPLIES FOR THE BUSINESS?
REQUIRE?
This type of company requires adequate physical space, sufficient to locate the air compressor, the electric vulcanizer, the electric grinder, the HOW MUCH SHOULD YOU INVEST IN THIS BUSINESS?
service counter, the display case, the tool cabinet and a space to carry out disassembly and handling. assembly of vehicle wheels.

The business should be located, preferably, in places where there is vehicular traffic or in areas where many people pass by. EQUIPMENT AND RAW MATERIALS AND
ACCESSORIES SUPPLIER
INPUTS SUPPLIES ADDRESS
SUPPLIER EQUIPMENT ADDRESS
Equipment & Equipment, tools, patches, Av. Manco Capac 190 Av. Argentina 401 Lima Tel.:
Service Trading The victory Retreads, tires, rubber, 425-0710 425-1658
cameras. Heinntz patches, balancing, rims.
SA Tel.: 331-1543
HOW DOES A TIRE SHOP WORK? Fax: 425-0720

Antonio Olivera 1020 San Juan de

Vulcanizers, tire removers, Miraflores
Incoan EIRL balancers, tools.
Tel.: 466-9165/883-4321 Tires, retreading materials, Av. July 28, 1860
TIRE REPAIR Konty retreader tubes, pitons, patches, rubber The victory
tools. Tel. 330-9978
Jr. García Naranjo 178
In the tire repair process, the following operations are generally performed: Fleischman & CIA Jacks, tire removers, tools. The victory
Tel.: 423-0829/4235073
1. Wheel disassembly. Av. Alfredo Mendiola 4058
Rims, tubes, pitons, patches, (Panamericana Norte)
Llerena retreader
2. Disassembly of the tire. Espinoza Sale of compressors and spare Av. Manco Cápac 1316 La
Victoria
rubber. Independencia Telefax: 521-
Compressors parts. 5356
3. Camera review. Tel.: 471-6948
4. Fault marking.
5. Cleaning the surface using the electric grinder.
6. Repair of the fault using the electric vulcanizer.
7. Repair test, using the air compressor.
8. Rim mounting.
The references correspond to companies located in the city of Lima.
Implementing a tire business with basic equipment requires an approximate investment of S/. 3,115.
RAW MATERIALS AND INPUTS Gasoline for surface cleaning 0.05 ITEM REFERENCE COST (S/.)
The following components are basically used to repair tires: Labour 0.54 Equipment and Accessories 2,695.00
STAFF Machinery cost 0.05 Raw materials and inputs (one 175.00
A tire business can be started with one person, who will carry out Water and light 0.07 month)
Local 0.18 Electricity, water (one month) 70.00
EQUIPMENT AND UTENSILS APPROX. COST (S/.)
PRODUCT PRESENTATION COST (S/.) Other expenses 0.05 Other expenses 175.00
Eraser Kilo 14.00 Total costvulcanizer pedestal with 3 plates
Electric 1.14 350.00 Total inversion 3,115.00
Gasoline Gallon 7.69 60 Gallon, 2 Hp air compressor. 1,400.00 Reference prices. Area: Lima Date: February 2003
Gutta-percha Dozen 2.40 1/4 Hp electric bench grinder. 87.50
3 ton lizard cat 245.00
Reference prices. Area: Lima Date: February 2003
air pressure gauge 17.50
Inflation nozzle - large 17.50
the administrative and operational tasks. This person can be the Service desk 175.00
owner himself with knowledge of tire repair or the services of a Scaffolding 105.00
person with experience in tire repair can be hired. 12'' French wrench 35.00
French wrench 10'' 35.00
EQUIPMENT AND TOOLS Keyset 70.00
The equipment and tools used in tire repair are the following: Pliers 35.00
COSTS ball hammer 17.50
Costs are the values of the resources used to provide the service. small jump rope 35.00
For example: the cost of electricity used to repair the tires each time Beak 35.00
it is used or the cost of a patch. If the costs are calculated for each Levers 35.00
product or service, the unit cost is obtained and if the production
Total 2,695.00
costs are calculated for a given time, the weekly, monthly or annual
Reference prices. Area: Lima Date: February 2003
cost is obtained.

The following table shows the costs for repairing a car tire: Reference prices. Area: Lima Date: February 2003
Product: Repair of a car tire (1 patch)
CONCEPT TOTAL COST (S/.)
Manufacturing cost
Patch 0.20