So I'm calling around to find a good deal on a new set of treads for the S. I found the ones I wanted on Tire Rack but I try to do my best to help out the local businesses, without grabbing my ankles and giving the thumbs up. I called about 5 different local businesses trying to get at least close to the total price of Tire Rack after shipping. I called one place and as he's looking for the correct tire size I simply asked if he did price matching. His response was "oh we can't price match, Tires are so expensive these days that there just isn't any profit to be made on tires". Now my immediate response was "oh really?". Now I have the price from Tire Rack on the screen in front of my face as this pompous ass is going into great detail about why they're so expensive to produce and all the charges they have to eat after shipping. He then finds my tires in the correct size and gives me the price. When he shot me the number I couldn't help but laugh, fist of all Sr. why in the f%#$ are you in the tire business if there is no money to be made, second why is your price $50 more then the price staring me in the face, and third are you serious right now. Do you really tell this to everybody or am I a special case, something in my voice must scream to you that i'm some a$$ clown with no options and money to burn. So needless to say I bought the tires off of Tire Rack and chalked it up to "at least I made the attempt".

 

cant go wrong with tire rack

 

As someone who works for a tire manufacturer, what that dealer told you is actually true. Tire Rack buys direct from manufacturers and have a decent amount of buying power. Independent dealers typically buy from distributors (who mark the tires up) leaving a much smaller margin (or a larger sell out price) from independent dealers.

That being said, while TireRack tire prices are generally the lowest, you still have to take them somewhere to get them mounted and balanced, have to pay shipping (and tax in certain states such as IN, LA, GA that TireRack has warehouses), not to mention having a place to get if something goes wrong with the tire and you need to use the manufacturers warranty.

Tire prices are rising (something like 3 price increases this year) due to increasing raw material costs, demand due to the OE market making a comeback, and people keeping cars longer (subsequently needing 2nd, 3rd, and maybe even 4th replacement sets of tires).

Not bashing you, just letting you know the dealer wasn't fully lying to you.

 

He was correct in the info he gave you. Tire shops make money on installation and very little on the tire itself. So calm down. People need to make an honest living too.

Tire Rack is able to sell at such a low price due to volume. Most retailers will not price mach internet based companies due to there overhead is a lot less. Try price matching the dealer with some online price and watch them laugh in your face.

 

^^ very true, some places will even sell tires at their cost and just make money off the mount and balancing.

 

Be careful tossing the ass label around so freely. Why do you think every retailer pays the same price? Larger retailers have more buying power and can more easily absorb lower pricing and loss leaders since they can rely on volume sales. Have you never heard of a chain called Walmart? They have so much buying power that they can actually dictate terms to their suppliers.

If you don't understand you can ask or research the matter without being a pompous ass yourself.

This too. Consider that B&M's need locations in prime spots (as they rely on customers walking in the door) which costs big money. Online retailers can purchase and utilize relatively cheap spaces since they don't have to deal with B&M locations and only have to ship products to their customers.

 

We do price match, but tires are consistently NOT a money maker for us. Even when we don't price match, we still make VERY little on tires. We sell tires because we sell wheels, and service cars. We know that our customers want and/or need tires, but we make our money other places.

$50 seems like a fair fee to buy locally. I've paid $100 extra for stuff bought locally and didn't think it was unfair. Like someone else said, Tire Rack makes their money by buying in huge volume and selling a ton of tires. Local shops just can't do that. Their overhead is usually higher (on a percentage basis), and they pay more for tires.

Good luck on your search for tires.

 

OP Your logic is simply flawed. True it might only cost them $2.00 to mount and balance each wheel. However, a good tire mounting machine will cost about $2,000-$10,000 and good balancing machine another $2,000 - $10,000. So we are looking at an average of $10,000 for both. That means I would need to mount and balance $625 rims/tires to make back what i spent on the machine. Also, lets say Joe Snufy can mount and about about 5 rims/tires in an hour taking his time like most minimum wage people do. Here's the math 625 rims.tires/5 rims.tires per hour = 125 hours x $8.00 an hour = $1,000.00. Not including the SS tax, FUTA, medicare, etc. Then we need to also allocate the property taxes, property insurance, wear and tear on the equipment, Joe Snufy answering his phone or dicking around with his co-workers at work, or fkin up the machine or the rims and tires he is working, the maintenance of the machine, etc. These a fk load more cost i havent even mentioned that can be allocated to the price we receive but as far as being fked by the cost of tires, it only happens at max once a year(to those who dont race there car). How about how bars charge $3.00 for a beer when a 6 pack cost $7

 

I have a hard time believing there is little money to made in tires, even if that's slightly true, this particular company not only marked the price exactly the same for both front and back, which are two different sizes. He's then going to charge me another $16 to mount and balance each tire. People, I got it, everyone's got to make a living but there's making a living and there's jabbing me cause you know you can. Lets do the math, we're talking ruffly $664 before taxes for all four out the door. Lets say the tires cost $100 for the back and $90 for the front. That leaves us with $284 to cover expenses. shipping the tires might have cost $50. Now im pretty sure it might cost the company $2 to actually mount and balance all 4 wheels with new valve stems and weights. They've got to pay Joe Snufy his $8-9 an hour. That makes ruffly $61 to get the job done, now the rest of that $223 is going to what.. Some of you would say the electricity to operate the machinery, lights, insurance, maybe even the rent for the building. We'll be generous and knock off $50 for all that. Now that still leaves $173 that the company just made off that one sale. For what, giving you the mental comfort of a warranty on tires, so when you pick up a nail or something you can have them fix it. Lets knock off another $2.10 for that repair that you'll more then likely never really need anyway. What i'm getting at here is the fact that you know just as well as me that if there was no money to be made then you wouldn't sell them, nobody would. Please don't think that i'm writing this to be spiteful and some of you made some great points, but you can't honestly sit there and tell me that it's reasonable to believe that there is no profit here, if there was no profit they wouldn't exist.

 

There is NO WAY a shop makes $173 off the sell of (4) $95 tires. Your numbers are way off. Remember that the Tirerack gets much lower prices than some tire shop down the road.

Regardless, look at these small, local tire shops. Most of them are run down shacks in the sketchy part of town. They aren't making much money off this stuff. The guy really had no reason to lie to you. I have no idea why you've run off on this tangent.