TheCruncher Posted January 15, 2016 Share Posted January 15, 2016 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. Link to comment Share on other sites More sharing options...
hansnl Posted January 15, 2016 Share Posted January 15, 2016 It is called profit maximalisation. That is why. You need tyres, you buy them. Link to comment Share on other sites More sharing options...
JoeW Posted January 15, 2016 Share Posted January 15, 2016 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 Link to comment Share on other sites More sharing options...
TheCruncher Posted January 15, 2016 Author Share Posted January 15, 2016 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? Link to comment Share on other sites More sharing options...
JoeW Posted January 15, 2016 Share Posted January 15, 2016 Yes, our shop is in Kalasin. Link to comment Share on other sites More sharing options...
NeverSure Posted January 15, 2016 Share Posted January 15, 2016 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. Link to comment Share on other sites More sharing options...
thrilled Posted January 15, 2016 Share Posted January 15, 2016 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. Link to comment Share on other sites More sharing options...
NeverSure Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
ezzra Posted January 16, 2016 Share Posted January 16, 2016 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?..... Link to comment Share on other sites More sharing options...
TheCruncher Posted January 16, 2016 Author Share Posted January 16, 2016 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 Link to comment Share on other sites More sharing options...
gerry123 Posted January 16, 2016 Share Posted January 16, 2016 Yes, our shop is in Kalasin. Please tell where is your store located in Kalasin ?? Link to comment Share on other sites More sharing options...
JoeW Posted January 16, 2016 Share Posted January 16, 2016 Yes, our shop is in Kalasin. Please tell where is your store located in Kalasin ?? I PM'ed you with the information. Link to comment Share on other sites More sharing options...
Sutty Posted January 16, 2016 Share Posted January 16, 2016 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 Link to comment Share on other sites More sharing options...
JoeW Posted January 16, 2016 Share Posted January 16, 2016 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? Link to comment Share on other sites More sharing options...
mihalis Posted January 16, 2016 Share Posted January 16, 2016 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 Link to comment Share on other sites More sharing options...
JoeW Posted January 16, 2016 Share Posted January 16, 2016 It's the only way to justify a price increase in the future Link to comment Share on other sites More sharing options...
FangFerang Posted January 16, 2016 Share Posted January 16, 2016 Some genius is going to look at available stock and say, "Holy inspiration Batman. Let's make tires out of rubber again!" Link to comment Share on other sites More sharing options...
seedy Posted January 16, 2016 Share Posted January 16, 2016 one Troll / Flaming post removed. Have a contribution to make - by all means post it. Link to comment Share on other sites More sharing options...
mosquitobill Posted January 16, 2016 Share Posted January 16, 2016 The price of tyres has always been inflated Link to comment Share on other sites More sharing options...
thaiguzzi Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
mgjackson69 Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
Doc46 Posted January 16, 2016 Share Posted January 16, 2016 Supply and Demand,,,You Need it ,They Supply it at their price. Link to comment Share on other sites More sharing options...
mango66 Posted January 16, 2016 Share Posted January 16, 2016 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;; Link to comment Share on other sites More sharing options...
Ulic Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
mgjackson69 Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
mogandave Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
TheCruncher Posted January 16, 2016 Author Share Posted January 16, 2016 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 Link to comment Share on other sites More sharing options...
bazza40 Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
mogandave Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
mgjackson69 Posted January 16, 2016 Share Posted January 16, 2016 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. Link to comment Share on other sites More sharing options...
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