ScoobyDooLondon
Active Member
What's the retailer markup on tyres? Both online and instore.
First year of MB ownership and first 'decent car' so was happy to read the forums and learn for myself. Confused by a lot of the pricing methodology.
Three examples spring to mind:
1) First off, asked Pneus-Online to price match their tyre at £152 vs £146 at competitor site (Michelin 255/45/18 Y99 MO).
Likewise for the rears, which is 275 version of the above £186 vs £172 at competitors site.
Reply came back:
"We are sorry to inform you we cannot match the price of our competitor. Our best offer: £152.06/product.
A £4.66 voucher is available for the next 24h in your customer account for the purchase of:
2 Michelin Primacy HP MP FSL 255/45 R18.
Unfortunately for the second request we were not able to offer you a better price, we would sell the tyre at a loss"
2) Asked Camskill to match TyreLeader's prices but they refused, email response:
"Sorry but as per the website we only attempt these against UK online retailers, Tyreleader are a German company".
Fair enough, Camskill, in my minimal experience, were the cheapest UK supplier. But as I understand it, Camskill don't hold stock (certainly for my tyres) and they would be ordered from Michelin. In which case, there is no holding charge, no risk on their part as they take payment first - so how come they were not able to match the Germans (Tyreleader and Oponeo) both of which:
i) hold inventory
ii) cheaper price than any UK online retailer
iii) and ship it here for no additional charge
What are the Germans doing that we can't do!
3) Various tyre retailers, as recommended on these forums. Rang a few and none of them came close to approaching what was available online, including the fitting charge.
Martin Tyres was mentioned, very likeable chap I spoke to, but the 255's fitted came to £194-ish. He was happy to charge £10 per corner if I supplied the tyres (which cost £145 online).
What I don't understand is, even if they order at retailer consumer prices, they would still be better off! All sites have a trade discount, but not sure what that discount typically is - anyone care to know?
Whilst I understand, no one wants to advertise a very low rate, but for the odd customer, surely its better to take a lower margin, close the deal, build up goodwill and future sales, then to lose it altogether.
Not sure what to make of all this, can anyone with an insight into tyre pricing and margins shed any light on such disparate pricings and what is the typical margin on tyres?
First year of MB ownership and first 'decent car' so was happy to read the forums and learn for myself. Confused by a lot of the pricing methodology.
Three examples spring to mind:
1) First off, asked Pneus-Online to price match their tyre at £152 vs £146 at competitor site (Michelin 255/45/18 Y99 MO).
Likewise for the rears, which is 275 version of the above £186 vs £172 at competitors site.
Reply came back:
"We are sorry to inform you we cannot match the price of our competitor. Our best offer: £152.06/product.
A £4.66 voucher is available for the next 24h in your customer account for the purchase of:
2 Michelin Primacy HP MP FSL 255/45 R18.
Unfortunately for the second request we were not able to offer you a better price, we would sell the tyre at a loss"
2) Asked Camskill to match TyreLeader's prices but they refused, email response:
"Sorry but as per the website we only attempt these against UK online retailers, Tyreleader are a German company".
Fair enough, Camskill, in my minimal experience, were the cheapest UK supplier. But as I understand it, Camskill don't hold stock (certainly for my tyres) and they would be ordered from Michelin. In which case, there is no holding charge, no risk on their part as they take payment first - so how come they were not able to match the Germans (Tyreleader and Oponeo) both of which:
i) hold inventory
ii) cheaper price than any UK online retailer
iii) and ship it here for no additional charge
What are the Germans doing that we can't do!
3) Various tyre retailers, as recommended on these forums. Rang a few and none of them came close to approaching what was available online, including the fitting charge.
Martin Tyres was mentioned, very likeable chap I spoke to, but the 255's fitted came to £194-ish. He was happy to charge £10 per corner if I supplied the tyres (which cost £145 online).
What I don't understand is, even if they order at retailer consumer prices, they would still be better off! All sites have a trade discount, but not sure what that discount typically is - anyone care to know?
Whilst I understand, no one wants to advertise a very low rate, but for the odd customer, surely its better to take a lower margin, close the deal, build up goodwill and future sales, then to lose it altogether.
Not sure what to make of all this, can anyone with an insight into tyre pricing and margins shed any light on such disparate pricings and what is the typical margin on tyres?
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