January 15, 201610 yr Car tires are made mainly from synthetic rubber, which on it's turn is made from crude oil. It takes about 7 gallons of crude to produce a single tire. With crude oil prices down 80% over the past 2 years, why aren't car tires getting cheaper. They increased in price when oil was getting more expensive, but the opposite seems to be overlooked.
January 15, 201610 yr Prices are actually going down though. What we pay to our supplier for getting tires for our shop has been decreased by more than 40%. What we do now is offer buy 3 + 1 free campaign, but we won't change our selling price, because once you lower your price you got to keep your price that low
January 15, 201610 yr Author Prices are actually going down though. What we pay to our supplier for getting tires for our shop has been decreased by more than 40%. What we do now is offer buy 3 + 1 free campaign, but we won't change our selling price, because once you lower your price you got to keep your price that low Are you in Thailand?
January 15, 201610 yr Oil is a very small part of the cost of a tire. It's the refining, manufacturing, added goodies including belts and carbon black, shipping, wholesale and retail profit, warehousing and all which doesn't change with the price of oil. There's a lot of co-polymerizing involved in making the synthetic rubber. Again, the oil is a small part of the cost of a tire by the time it gets onto your car. Cheers.
January 15, 201610 yr Gasoline should be cheaper than it is.When the cost of material goes down companies don't like to lower the price.Same thing goes for airlines.They might reduce the price A little but not by very much.
January 16, 201610 yr Gasoline should be cheaper than it is.When the cost of material goes down companies don't like to lower the price.Same thing goes for airlines.They might reduce the price A little but not by very much. I'm paying less than 1/2 for gas right now than I was in 2008. Where it used to cost more than $100 US$ for 27 US gallons (102 liters) it now costs about $50 for the same to fill my F-150 4x4 Supercrew pickup. I consider that quite a drop. I just bought gas for $1.89 per US gallon - 3.8 liters. Yes my tank holds 102+ liters. Cheers.
January 16, 201610 yr Why? because those tiers were probably mad e a year or 2 ago and sill pricy at the inventories also, by the same logics, why airfares are not going down where the main cost component of the ticket is fuel cost?.....
January 16, 201610 yr Author Why? because those tiers were probably mad e a year or 2 ago and sill pricy at the inventories also, by the same logics, why airfares are not going down where the main cost component of the ticket is fuel cost?..... My last tires I bought were made less than a month earlier. The production date is on the side of the tire
January 16, 201610 yr Yes, our shop is in Kalasin. Please tell where is your store located in Kalasin ??
January 16, 201610 yr Yes, our shop is in Kalasin. Please tell where is your store located in Kalasin ?? I PM'ed you with the information.
January 16, 201610 yr Yes, our shop is in Kalasin. Please tell where is your store located in Kalasin ?? I PM'ed you with the information. Pity your not in KK need 4 do you know any with same promotion over here please
January 16, 201610 yr Yes, our shop is in Kalasin. Please tell where is your store located in Kalasin ?? I PM'ed you with the information. Pity your not in KK need 4 do you know any with same promotion over here please Let me know what you need. Maybe our promotion can justify the trip to Kalasin?
January 16, 201610 yr Prices are actually going down though. What we pay to our supplier for getting tires for our shop has been decreased by more than 40%. What we do now is offer buy 3 + 1 free campaign, but we won't change our selling price, because once you lower your price you got to keep your price that low Are you in Thailand? They are doing the same here in Australia, 3 for 1
January 16, 201610 yr Some genius is going to look at available stock and say, "Holy inspiration Batman. Let's make tires out of rubber again!"
January 16, 201610 yr one Troll / Flaming post removed. Have a contribution to make - by all means post it.
January 16, 201610 yr Some genius is going to look at available stock and say, "Holy inspiration Batman. Let's make tires out of rubber again!" A tyre for a small hatchback type family car, ie Yaris, Jazz, Mazda 2 etc etc has 1 kg of natural rubber used in the production per tyre. The higher the performance of the tyre, ie racing cars, motorcycles, aircraft etc, the higher the percentage of natural rubber.
January 16, 201610 yr Gasoline should be cheaper than it is.When the cost of material goes down companies don't like to lower the price.Same thing goes for airlines.They might reduce the price A little but not by very much. I'm paying less than 1/2 for gas right now than I was in 2008. Where it used to cost more than $100 US$ for 27 US gallons (102 liters) it now costs about $50 for the same to fill my F-150 4x4 Supercrew pickup. I consider that quite a drop. I just bought gas for $1.89 per US gallon - 3.8 liters. Yes my tank holds 102+ liters. Cheers. Similar for me. When I was in the Dallas TX office 15 months ago, if my F150 was near empty, the ~ $100 credit card limit would shut off the pump before the tank was full. Last month I was in USA, the truck was on E, it took $56 to fill it.
January 16, 201610 yr Oil is a very small part of the cost of a tire. It's the refining, manufacturing, added goodies including belts and carbon black, shipping, wholesale and retail profit, warehousing and all which doesn't change with the price of oil. There's a lot of co-polymerizing involved in making the synthetic rubber. Again, the oil is a small part of the cost of a tire by the time it gets onto your car. Cheers. if oil price goes down, gasoline keeos the price, when back up, gasoline goes up too; Maximising for revenue dep and businesses, customer always the looser;;
January 16, 201610 yr Simple economics, when the price of raw materials goes up there is pressure on prices to increase. When the cost of the raw materials goes down there is no pressure to decrease prices other than competitive pressure. Companies would rather add the profits to the bottom line than pass savings to the customers. Remember, products are not priced based on what they cost to produce, they are priced on what consumers are willing to pay. If there is not a great enough profit margin in manufacturing a product the product is not made.
January 16, 201610 yr Simple economics, when the price of raw materials goes up there is pressure on prices to increase. When the cost of the raw materials goes down there is no pressure to decrease prices other than competitive pressure. Companies would rather add the profits to the bottom line than pass savings to the customers. Remember, products are not priced based on what they cost to produce, they are priced on what consumers are willing to pay. If there is not a great enough profit margin in manufacturing a product the product is not made. And there you have it...one of the most basic principles of economics stated in very simple terms. Prices changes because they "have to". The forces that cause prices to rise always have more impact in the short term than those forces that cause prices to fall.
January 16, 201610 yr Simple economics, when the price of raw materials goes up there is pressure on prices to increase. When the cost of the raw materials goes down there is no pressure to decrease prices other than competitive pressure. Companies would rather add the profits to the bottom line than pass savings to the customers. Remember, products are not priced based on what they cost to produce, they are priced on what consumers are willing to pay. If there is not a great enough profit margin in manufacturing a product the product is not made. While generally true in the short term, when costs stay down, the market kicks in and suppliers start cutting costs to grab market share. Seems like when I was working for $1.65 an hour, a gallon of gas was twenty-four-nine and a tire for my F100 that lasted 20,000 mile was about $30. Doesn't seem like they're going up to me.
January 16, 201610 yr Author Some genius is going to look at available stock and say, "Holy inspiration Batman. Let's make tires out of rubber again!" You think the are made out of concrete? Time to lower your tire pressure
January 16, 201610 yr The tyre industry has known for decades how to make tyres which will last 100,000 km. More profit in tyres with a lower life span. You may as well ask the same question of paint, which has crude oil as the raw material before conversion to various polymers. Other posters have explained in detail why prices don't come down as quickly as they go up.
January 16, 201610 yr So hundreds of tire companies get together and conspire to make crappy tires rather than one of them deciding to be the only company to offer the 100k tire and becoming the most popular brand in the world. You guys crack me up.
January 16, 201610 yr So hundreds of tire companies get together and conspire to make crappy tires rather than one of them deciding to be the only company to offer the 100k tire and becoming the most popular brand in the world. You guys crack me up. And that one guy invented a carburetor that would let any car get 100+ miles per gallon, and the Big Oil companies bought it and buried it.
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