tyre price myths

Submitted: Friday, Feb 17, 2012 at 00:17
ThreadID: 91909 Views:4626 Replies:9 FollowUps:11
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ok ive now been in the tyre game 20 odd yrs
almost every day theres a post about how much 4wd tyres are costing.
ive worked in little tyre stores that just sell the cheapest tyres
ive worked for a cooper dealer 7 years
and i am curently working for bridgestone 4 yrs
years ago blokes would walk in and say you gotta look after me im gonna buy 4 x 4wd tyres.around $800.
now days the average set(265-70-16)is around $1000.
guess what thats a cheap set of tyres.
an example is holden commodore 18inch $1600 for a decent set
commodore 16 inch $800 a set
good tyres on a falcon\camry etc $700 a set.
last year toyota were telling me for the 19 inch on the kluger standard set of alloys and tyres ( 5 wheels inc spare)was $10000 yes 10 grand.have come down now.
some bmw/mercs with run flat tyre are nearly(in some cases)$900 per tyre.
20 yrs ago when i started working in tyres 205-65-15 falcon/commodore were around $90 now there around $110.
these are your common every day car.
mazda 3 and 6s about $1000 a set.
car companys are now using so many odd size tyres thats why there so dear
prices im quoting are for good quality tyre
sure theres cheaper around but believe me there rubish in a lot of cases. eg
monday one of the cars we serviced was due tyres.we changed from cheap tyres(the car yard had fitted) to one of our best sellers(not top of the line)and they came back just to tell us they didnt know how good this car was to drive till they left(no road noise and drove so much better)and there was a guy selling his commodore with 18 inch wheels that was selling it so just wanted cheapies.guess what he came back complaining they were a bit noisier than the ones he had.$440 vs $150 per tyre.i did tell him before i sold them to him that these tyres arnt anywhere near as good as the ones he had ,they will be a little noisy/wont handle as well etc.but still just wanted the cheapest tyre.after another 1/2 an hour of talking.he went to the next level of better tyre $250.so we replaced all the tyres fitting/balancing etc for no extra charge.(except the price difference)
to be honest were lucky if we make $40 per tyre.thats our mark up.
for that we have to fit the tyre/balance/disposal(around $2.50).new valve etc and free balance and rotation for the life of the tyre. then we offer an racv discount a booklet with free puncture repaires.not much money to be made now is there.i dont think thats to bad(just get a plumber to come over and fit a washer in a leaking tap)and see what your getting for your money.
most tyre places make there money from wheel alignments/mechanical repairs etc.
we have 1 tyre fitter.im the mechanic and have recently put on an apprentice mechanic.thats what keeps us going .theres more money in mechanical/wheel alignment than tyres.
another thing we notice is most husbands dislike there wifes and kids.
i need a set set of tyres
what are you after?
cheap middle of the range or top of the line
na just cheapies its only for the other car(mums taxi)she just goes around town .takes the kids to school does the shopping etc(they should be the best tyres)
but while im here can ya gimme a price for me 4by tyres.
what are you after?
cheapies /middle of the range of top of the line.
oh mate i need the best.i go of road a cpl of times a year.and tow the van for 2 weeks a year.
dont wanna get stuck
its true i hear it all the time
well thats my rant
cheers
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Reply By: Rockape - Friday, Feb 17, 2012 at 00:49

Friday, Feb 17, 2012 at 00:49
Mate,
just today I purchased a new I30 Hyundai with metallic paint, $500 worth of extras and drive away for $16360. Now in 2000 I bought a Camry that was 5 years old with only 16000k on it and the price was $16000.

The Camry has been a good car with bugger all problems but on the other hand my very, very fast 1999 Hyundai XL (white lightning) as she is known has been just as good a performer. Total cost to date is one intake temp sensor.

So here is the punch line. I have bought a brand new car for the same price as a 5 year old car 12 years later. I know it is not apples for apples but hell have a look at the numbers.

Tyres. I just had Pirelli tyres fitted to the very, very fast XL at the hugh price of around $80 a wheel. Having the odd tropical downpour here they have been great with no aquaplaning at all. So for $320 I have reshod my vehicle in 2012.

Yes my 4wd tyres have gone up (285/75/16) tyres from around $285 over 5 years ago to $370 this year. If I had chosen the same apple for apple I could have bought the tyres for $ 350. Not going to mention names as all we end up doing is have a tyre war.

Have a good one
RA.
AnswerID: 477962

Reply By: ross - Friday, Feb 17, 2012 at 00:57

Friday, Feb 17, 2012 at 00:57
I cant understand why tyres are so cheap in the US compared to here.
For example the rear tyre on my motorcycle cost $460,yes $460,and you can get it for $180 or even cheaper in the US.
The tax is likley higher here and most likely the tyre fitter are better paid here,but where does the rest go.
As nowimnuberone pointed out,the tyre shops are not wearing diamond rings,so it must be the distibutors.
AnswerID: 477964

Follow Up By: Rockape - Friday, Feb 17, 2012 at 01:21

Friday, Feb 17, 2012 at 01:21
Ross,
I think I can answer some of your question and here goes.

Yes we can buy and import from the states much cheaper than we can source here and I do buy from the states when I know I am getting ripped off.

So here goes. The Australian business has these costs to bear.
1. GST. No I am not Jerry Harvey.
2 Lease cost of their premises. Much lower in the states.
3.Wages. $9 an hour over there and this multiplies for every bit of handling.
4. Floor stock. They import and have a very large stock of X sitting there waiting to be sold.
5. They wear the warranty, it still costs them even though the supplier pays for the defects.
6. Insurance is much higher than in the states.
7. With labour cost comes workers comp. Not cheap.
8. Insurance. If your vehicle is damaged they pickup the tab.
9. Council rates and charges.
10. EPA charges.

No I don't own a business but I can see their side of things.

Just another way of looking at the big picture.

RA.



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Follow Up By: Member - nick b - Friday, Feb 17, 2012 at 07:41

Friday, Feb 17, 2012 at 07:41
LIKE IT....


Cheers Nick b
VKS 737 ( 0915 )

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Follow Up By: ross - Friday, Feb 17, 2012 at 10:53

Friday, Feb 17, 2012 at 10:53
They still have to pay sales taxes,tyre disposal,cover warranties,insurance and possibly a few things we dont pay.
And at $9 an hour you would not be getting the most efficient workers.

I think they must get the tyres cheaper even when they come from Japan or Europe
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Follow Up By: ozjohn0 - Friday, Feb 17, 2012 at 11:10

Friday, Feb 17, 2012 at 11:10
The only State paying around $9 per hour would be New York and one or possiible two other north eastern states.
In most states the workers be be getting around $7 with a few as low as $6.15.
One weeks anual leave, 6 public holidays and no Superannuation.
OJ
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Follow Up By: ross - Friday, Feb 17, 2012 at 13:10

Friday, Feb 17, 2012 at 13:10
I bet they got no unions sticking their noses into peoples business either,lucky bosses.
But there is some glimmer of hope for US tire fitters,some of the job ads in Cali and Texas were offering $12-$17 an hour and some were offering substantial benefits including commissions on top of that.
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Follow Up By: SDG - Friday, Feb 17, 2012 at 14:44

Friday, Feb 17, 2012 at 14:44
What size bike tyre you getting?

One thing that you did not mention. We need tyres more often. On average a rear bike tyre, regardless of price, will only get you around 10 000km (give or take a bit). One a year for me, sometimes two.
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FollowupID: 753425

Reply By: Life Member - Phil B (WA) - Friday, Feb 17, 2012 at 05:01

Friday, Feb 17, 2012 at 05:01
I hear you nowimnumberone,

They will spend $50K plus on a vehicle then risk it all by fitting crap tyres.

As to the
"she just goes around town takes the kids to school does the shopping etc"
That also astounds me, as you say they should be going for the best.

As a mate of mine once said
"There's nothing stranger than folks"

cheers

There is a lot of difference between
‘Human Being’ and ‘Being Human’.





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AnswerID: 477970

Follow Up By: eighty matey - Friday, Feb 17, 2012 at 08:04

Friday, Feb 17, 2012 at 08:04
I've been going through thepricing of tyres. On a previous thread during the last few days I've come to the conclusion that I will buy the best quality tyre forme and pay the price.

Having shopped around a few local dealers the variation is about $25 a tyre, so they're all giving honest prices.

One thing is, 2 years ago the dealers/importers had all those costs and the Aussie dollar was $0.89. Inflation has been staedy but the prices have risen 15% for Wranglers.

I'll have to suck it up and hand over the cash whatever the reason,

eighty matey
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FollowupID: 753386

Follow Up By: ross - Friday, Feb 17, 2012 at 13:35

Friday, Feb 17, 2012 at 13:35
The problem for the masses is that when they go to buy a tyre,they are often sold whatever the shops wants them to buy.
If the shops gave out credible information about comparative braking distances in wet and dry conditions and other factors affecting tyre safety,then drivers might be willing to pay more for the tyre.

Overall the automotive industry in Australia is not something that can be considered 100% honest in its dealing with its customers.
For example there are still registered mechanics selling fuel polarisers and Hiclones to customers even though they have been roundly condemned as scams by every majoring motoring organisation in the country.

I myself went into a tyre shop in Perth once and they wanted to take my car somewhere else to have some work done on the front end.
When I asked to be shown exactly what needed fixing ,they clammed up and the person dealing with me disappeared and someone else came out to fit the tyres.
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FollowupID: 753410

Reply By: Keith Berg - Friday, Feb 17, 2012 at 11:31

Friday, Feb 17, 2012 at 11:31
Don't forget that almost all of the material ingredients in tyres come from oil - carbon black, synthetic rubber, material for the cords - you name it.
So you'd expect the cost of tyres to partially reflect the escalating cost of oil. That's my theory anyway.
AnswerID: 477999

Reply By: Member - Ian F (WA) - Friday, Feb 17, 2012 at 11:51

Friday, Feb 17, 2012 at 11:51
Hi nowimnumberone,
Many people are happy about spending their cash to make their vehicles faster and more powerfull, but road holding and stopping ie good brakes and tyres!! Cheapest that they can get.
Ian
AnswerID: 478001

Reply By: ck56 - Friday, Feb 17, 2012 at 12:35

Friday, Feb 17, 2012 at 12:35
US tyres (or anything) are cheaper because of supply and demand, they have a population of over 300 million

Cheers
AnswerID: 478004

Reply By: The Landy - Friday, Feb 17, 2012 at 12:51

Friday, Feb 17, 2012 at 12:51
Whilst the discussion wasn’t intended to be about importing tyres from the USA, the discussion also comes up frequently.

What is often overlooked in the discussion about price is that when you import them yourself, you take all the risk on getting the goods you paid for, that they are exactly what you wanted, and if they aren’t you are left to resolve with someone in another country.

So whilst it might be cheaper on a straight dollar basis, you have now assumed all the risks associated with importing it. And perhaps many do this successfully, it only takes one to go wrong and it might cost you your whole outlay.
AnswerID: 478006

Follow Up By: Member - TLC 001 - Friday, Feb 17, 2012 at 15:52

Friday, Feb 17, 2012 at 15:52
Hi The Landy,

The financial risk of the wrong product or buyer remorse is mitigated with ebay. :)

The financial risk of non delivery can be mitigated with insurance.

The questions is "is the juice worth the squeeze?"

regards

Marcus
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FollowupID: 753430

Follow Up By: The Landy - Friday, Feb 17, 2012 at 16:11

Friday, Feb 17, 2012 at 16:11
Not an expert on E-bay, I'll take you at your word...

However, those buying directly from Retail outlets in the USA (as evidenced on the many posts appearing on here) are taking on considerable risk, versus walking into a local retail outlet and viewing before any money changes hands. And that is the point I'm making here...

Cheers,
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FollowupID: 753431

Reply By: Rockape - Friday, Feb 17, 2012 at 19:44

Friday, Feb 17, 2012 at 19:44
I am going to post this in 2 forum posts,

I see that the delivery to Australia from tire rack is $435 and the price of KM2 BFG MUDDERS is $265 each. So $265x 4 = $1065. + $ 435 = $1500. Not mounted or balanced.

Now the cost of the same tyres in Mackay. $375x4 = $1500. + I got a seniors discount which bought it down even further.

Hell isn't that great. I have new tyres on my vehicle mounted and balanced + all the warranty that goes with them for the same price as the imported, not mounted, not balanced tyres with warranty as long as you send them back where they came from.

Beware the cheap price and count your blessings that you live in one of the best countries in the world..

Go the overseas tyres but do your sums first.

Nownumberone maybe just right on the money.

AnswerID: 478030

Follow Up By: Rockape - Friday, Feb 17, 2012 at 19:46

Friday, Feb 17, 2012 at 19:46
In my case I should have stressed 285/75/16 tyres.

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FollowupID: 753452

Reply By: Holiday Maker - Saturday, Feb 18, 2012 at 07:39

Saturday, Feb 18, 2012 at 07:39
Recently I looked around for two new tyres for the 4WD.

255R60/17 Pirellis.

BJ first in queue for quote,

"This is the best price ever for you, $390ea. If you can better that, come back and talk to us."

"Why would I come back, if I can better this price you have been lying."

Another tyre dealer, same tyres $314ea.

Not a bad profit margin BJ, $76 a tyre difference!

From my experience in the automotive industry, the tyre companies and the petrol companies are in collusion and inflate prices.

I call that greedy.

Dusty
AnswerID: 478047

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