How Garages Increase Profit Margins Using a Tyre Wholesaler

Mechanic scanning tyres in a garage with stacked new tyres and workstation, showing tyre wholesale and profit margin management

How garages increase tyre margins

Garages increase tyre margins by buying direct from a tyre wholesaler, reducing unit cost, improving availability, and avoiding distributor mark-ups.

Where margin is lost

Garages often don’t realise this.

  • Buying small quantities

  • Using multiple suppliers

  • Paying distributor premiums

  • Delayed deliveries

Each one cuts profit.

Example: margin comparison

Purchase routeCost per tyreTypical resaleMargin
Retail source£72£95£23
Distributor£62£95£33
Wholesaler£48£95£47

Wholesale access changes the maths.

Why wholesalers outperform distributors

  • Larger stock holdings

  • Direct import pricing

  • Faster daily deliveries

  • Trade-only pricing

Distributors sit in the middle.

Wholesalers don’t.

What garages also search next

  • Do wholesalers deliver next day?

  • Can I order mixed sizes?

  • Are budget tyres reliable for resale?

  • Can I hold trade credit?

These are trade questions — not consumer ones.

What happens next?

Most garages:

  • Consolidate suppliers

  • Move volume to one wholesaler

  • Improve margins within weeks