Wheels and Tires Discussion about wheels and tires for the S2000.
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No Profit to be made on Tires

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Old 11-18-2011 | 12:18 PM
  #11  
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Gas stations make hardly any money on fuel so why do they sell it? To get people in the door.

Why sell tires? Once you get the wheels off you can inspect brakes, suspension components - tires get people in the door.

Places that only sell tires (like discount tire) make their money on volume so they don't care about servicing brakes, etc.
Old 11-18-2011 | 12:22 PM
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In other words, the tires themselves are not profitable. The mounting/balancing can be, as can extra road hazard protection, etc.
Old 11-18-2011 | 12:40 PM
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Originally Posted by deepbluejh
Remember that the Tirerack gets much lower prices than some tire shop down the road.
I got it Tire Rack has lower prices because they buy in extremely large quantities. So if they're charging me $108 for a tire and and the guy down the road is going to charge me $162 for the exact same tire you don't find that a bit odd. I mean Tire Rack has to make a profit also, so what are they paying for the tire? I really didn't mean for this to turn into a tangent but my goodness people its absolutely insane for me to believe there is no profit in tires. I don't care if you tell me there is only $25 to be made on each complete sale, that's still a profit. You can't bold face tell me there is no profit. Yes you may not be making a killing and by all means you can't contend with super conglomerates like Tire Rack or Discount Tire but you can at least make the attempt to get close or just give me some simple answer like "no Sorry". But don't tell me its because there is no profit to be made at a tire store selling tires. As for gas station guy, really you don't think there is a profit to be made in gas either.. lol, ok.... I can't believe that this has really gone this far.. I just thought i would share a funny, but apparently it wasn't as funny as I thought.. This is funnier..
Old 11-18-2011 | 03:11 PM
  #14  
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Coming from a family who owned a chain of stations...no, there is not much money to be made on fuel. On average, we would clear $1800 a month at each store on fuel sales. We easily made that a day in the store.



*edit* - this is from 2008, but its still a good read - http://www.msnbc.msn.com/id/23904590.../#.TsbnEsNbFKM
Old 11-19-2011 | 09:57 AM
  #15  
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we get it, you're cheap. no shame in that! so what you're saying is that you weren't satisfied with tirerack's already cheap prices so you "tried your best" to help out your local businesses by shopping tirerack's price and since you didn't hear what you wanted, you started calling them names?
Old 11-19-2011 | 06:09 PM
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Originally Posted by aj_40_9
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 $2.10 for that repair that you'll more then likely never really need anyway. What i'm getting at here is the fact that you know just as well as me that if there was no money to be made then you wouldn't sell them, nobody would. Please don't think that i'm writing this to be spiteful and some of you made some great points, but you can't honestly sit there and tell me that it's reasonable to believe that there is no profit here, if there was no profit they wouldn't exist.
If you are going to edit your post, at least spell 'roughly' correctly.
Old 11-19-2011 | 06:22 PM
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Why dont u understand that they have to pay for the friggin store front and all the over head.
Old 11-19-2011 | 08:08 PM
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Thread backfire
Old 11-20-2011 | 02:36 AM
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many or most tire shops in my area price match tire rack or even cheaper. and also provide warranty. for me tire rack is past....
Old 11-20-2011 | 07:40 AM
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Originally Posted by takeshi
Originally Posted by aj_40_9' timestamp='1321592355' post='21166359
Now I have the price from Tire Rack on the screen in front of my face as this pompous ass is going into great detail about why they're so expensive to produce and all the charges they have to eat after shipping. He then finds my tires in the correct size and gives me the price. When he shot me the number I couldn't help but laugh, fist of all Sr. why in the f%#$ 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.
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.

Originally Posted by QuagmireS2k
Most retailers will not price mach internet based companies due to there overhead is a lot less.
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.
+++1

He needs to go find some tires from China, maybe then he will like the price.



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