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Old April 2nd 17, 03:24 AM posted to alt.home.repair,ca.driving,rec.autos.tech
Jonas Schneider
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Posts: 20
Default I used to buy tires from TireRack - now SimpleTire (how can they do it?)

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%."

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