Why the huge difference in tire price.

   / Why the huge difference in tire price. #1  

dangerdoc

Gold Member
Joined
Dec 7, 2007
Messages
354
I managed to ruin both front tires on my m5400.

I went down to my local tractor tire and wheel shop. For a small town, this is a big business, they send wheels all over the country. They look at my tires and tell me that they don't carry them and I would have a hard time finding them.

I checked out all of the Ag tire places in the area, none of them have the tires. One place can order them in but it will be $900 for the pair, for FRONT tires!!!

I go down to the Kubota dealer, they can order them for $850, a little strange seeing the dealer have a lower price.

Before dropping the money, I check the internet, only can find them at one place and it is $900 plus shipping!!!

I remembered an out of the way but always busy tire place about 40 miles from my house. Yep, they have the tire. Sorry the price is kind of high, $200 apiece. SOLD, I got in the truck and drove directly there and sure enough they have them and the price really is $400 for the pair. But whoops, somebody hit one with the forklift and ruined it, they will sell me the one the have and order me a new one, for the price of...... wait for it.........$200.

I picked up the second tire last week for the promised price. They are Bridgestone, with the same markings of the tires that cost twice as much everywhere else.

What gives, is there that much mark up?
 
   / Why the huge difference in tire price. #3  
I've run into the same thing..just be glad you stumbled on the much better deal.:D

I think it has something to do with what vendors a shop uses, middlemen and profit margins..you're a lucky guy.
 
   / Why the huge difference in tire price. #5  
I think that what's happening in the tire business is being driven by the fluctuations in oil prices. Wholesalers who stock tires don't know how much they will have to pay for replacement inventory - so they jack up the price of the tires they have in stock in hopes of covering it. There are some wholesale distributors who are not trying to anticipate the market so their existing inventory is being sold based on its cost. Although this seems the most fair to consumers it actually threatens the health of those businesses because inventory investment is about to rise, maybe substantially, without planning for it.

I just bought a new 17.5L-24 R4 rear tire - got an American-made tire from an "old school" source for $300 (plus mounting). But I'd seen a lot of prices for this same tire that were twice that much. I'd like to think those guys weren't trying to gouge - but pricing them to cover rising replacement costs.
 
   / Why the huge difference in tire price. #6  
I think that what's happening in the tire business is being driven by the fluctuations in oil prices. Wholesalers who stock tires don't know how much they will have to pay for replacement inventory - so they jack up the price of the tires they have in stock in hopes of covering it. There are some wholesale distributors who are not trying to anticipate the market so their existing inventory is being sold based on its cost. Although this seems the most fair to consumers it actually threatens the health of those businesses because inventory investment is about to rise, maybe substantially, without planning for it.

I just bought a new 17.5L-24 R4 rear tire - got an American-made tire from an "old school" source for $300 (plus mounting). But I'd seen a lot of prices for this same tire that were twice that much. I'd like to think those guys weren't trying to gouge - but pricing them to cover rising replacement costs.

"cover rising replacement costs"..
Didn't the place have to order a new one for the same price ??? $200
 
   / Why the huge difference in tire price. #7  
There are still a few wholesale distributors selling off inventory at old prices. Probably won't last - get 'em while they're hot.
 
   / Why the huge difference in tire price. #8  
I've run into the same thing..just be glad you stumbled on the much better deal.:D

I think it has something to do with what vendors a shop uses, middlemen and profit margins..you're a lucky guy.

I use 5 National Tire Accounts in my rental fleet and all of these major suppliers, ( Goodyear, Michelin, Bridgestone, Continental and Yokohoma) Dealers complain that their credit for the sale of the tire is less than their restock fee. I ask them how they stay in business and they say it keeps the lights on but like kissing your Mother-in-law! HA...go figure that....
 
   / Why the huge difference in tire price. #9  
I have a 7510 with 33" tires, could I put on a truck tire? It is 4wd though.
 
   / Why the huge difference in tire price. #10  
We often find tire prices showing big swings when we go looking for customers. The most common tires we do stock when we can get good pricing but what you found is not uncommon. We normally are priced right with the tire shops in the area.
 
 
Top