On Sat, 1 Apr 2017 20:58:20 -0400, Ed Pawlowski > wrote:
>> On a typical ultra high performance tire which is, say, $75, that means
>> that 1/3 the cost is pure profit online.
>>
>
> What is pure profit? Are you talking the difference between the price
> they pay and the price they sell the tire? That is far from pure.
> OTOH, if you did a cost analysis of the labor and overhead of running
> the business I may agree.
Your question is a fair question, since my original assumption was that
tires are a commodity, where it's not the general nature of a commodity to
sell much above it's cost.
Let's go back to that number to see what it was saying exactly.
http://www.moderntiredealer.com/uplo...issue-2015.pdf
That PDF says that there are 200 million replacement tires sold each year,
where, on page 52 of that document, we find the exact words:
"According to a recent Modern Tire Dealer survey of independent
retail and wholesale tire dealers, the average profit margin
on a passenger tire is 26.4%. For a light truck tire it falls to 24%.
The average wholesale passenger tire sales margin is 12.4%."