Cost price of tyres

geek84

Hi Folks

I am thinking of replacing the tyres on my car. It seems as though the cost price of a tyre is much more than the selling price at local tyre dealers.

Can someone please explain why this is so?

Thanks in advance.

Scooby_Doo.

geek84 wrote: »

Hi Folks

I am thinking of replacing the tyres on my car. It seems as though the cost price of a tyre is much more than the selling price at local tyre dealers.

Can someone please explain why this is so?

Thanks in advance.

Are you serious?

diable

Is there a competition one?

pendulum

The true cost price of a tyre cannot be higher than the selling price, otherwise they would be selling at a loss...
Perhaps you are not comparing like-for-like tyres, or you've found expensive retailers online which a local tyre dealer can beat.
You have not explained your question very well.

bengalknights

Are you trying to buy directly from a manufacturer because that would explain why it more expensive for you then say tyre fitter ltd who prob buys in bulk and get the deal.

Also the likes of HiQ would always make a profit as they get heavily discounted tyres from Goodyear from being part of them.

geek84

Hi Folks

Thanks for your replies, so far. I did phone up one of the local tyre dealers who said their selling price is a lot cheaper than the cost price of a tyre from the manufacturer. He did not explain why. He just put the phone down!!

So, I presume it is because the retailer buys in bulk from the manufacturer and so they get a discount on the cost price, which in turn enables them to sell at a cheaper price. Am I correct?

Thanks

victor2

He's a salesman.

bengalknights

geek84 wrote: »

Hi Folks


So, I presume it is because the retailer buys in bulk from the manufacturer and so they get a discount on the cost price, which in turn enables them to sell at a cheaper price. Am I correct?

Thanks

Yes this is correct i know for a fact that HiQ can get goodyear CT5 for between £13-£27 (overheard them ordering it in) yet sell them for £50 plus

mikey72

The cheapeat places such as Camskill, Nytyres etc have about 100% markup, so that sounds about right.

MX5huggy

A manufacture of almost anything will not undercut his normal supply chain, most won't even consider selling direct to the end consumer. You can't buy baked beans cheaper from Heinz than tescos.