Home » Public Forums » GMCnet » [GMCnet] $30 tires
| [GMCnet] $30 tires [message #303500] |
Wed, 13 July 2016 07:15  |
Kingsley Coach
Messages: 2691
Registered: March 2009
Location: Nova Scotia Canada
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Netters
On good authority, I was told yesterday that the price a tire dealer pays
for a $100 tire is $30 (approx. for both figures).
Do we have any tire dealers or former retailers of tires who would know how
accurate that statement is??
Just wondering...??
Mike in NS
--
Michael Beaton
1977 Kingsley 26-11
1977 Eleganza II 26-3
Antigonish, NS
Life is too short to hold a grudge; slash some tires and call it even !
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| Re: [GMCnet] $30 tires [message #303509 is a reply to message #303500] |
Wed, 13 July 2016 09:55  |
Carl S.
Messages: 4186
Registered: January 2009
Location: Tucson, AZ.
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Kingsley Coach wrote on Wed, 13 July 2016 05:15Netters
On good authority, I was told yesterday that the price a tire dealer pays
for a $100 tire is $30 (approx. for both figures).
Do we have any tire dealers or former retailers of tires who would know how
accurate that statement is??
Just wondering...??
Mike in NS
--
Michael Beaton
1977 Kingsley 26-11
1977 Eleganza II 26-3
Antigonish, NS
Life is too short to hold a grudge; slash some tires and call it even !
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That doesn't even sound close. I would guess the average mark-up on tires is about 20% - 25%.
But, even if they only pay $30.00 for a $100.00 tore, keep in mind all the expenses they have to recover with the money they make on that tire. They have to pay for:
Labor, their building, parking lot, equipment (lifts, compressors, tools, mounting & Balancing equipment, etc), insurance (liability, health, vehicle, workers compensation, etc.), utilities, employee benefits, advertising, uniforms, corporate or franchise expenses...the list goes on and on.
Tire dealers, like every other business, are in it to make a profit. In order to do that, they need to charge enough for their product to cover all those expenses and still come away with enough to make taking all those risks worthwhile.
Carl Stouffer
'75 ex Palm Beach
Tucson, AZ.
Chuck Aulgur Reaction Arm Disc Brakes, Quadrabags, 3.70 LSD final drive, Lenzi knuckles/hubs, Dodge Truck 16" X 8" front wheels, Rear American Eagles, Solar battery charging. GMCSJ and GMCMI member
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| Re: [GMCnet] $30 tires [message #303510 is a reply to message #303500] |
Wed, 13 July 2016 09:50 |
jimk
Messages: 6734
Registered: July 2006
Location: Belmont, CA
Karma: 9
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I can say that they pay $ 70 for a $100 tire.
There is NO phenomenal mark up on any generic merchandise.
I was dealing with tire dealers when I was a branch manager for Tool and
equipment co.
On Wed, Jul 13, 2016 at 5:15 AM, Kingsley Coach
wrote:
> Netters
>
> On good authority, I was told yesterday that the price a tire dealer pays
> for a $100 tire is $30 (approx. for both figures).
>
> Do we have any tire dealers or former retailers of tires who would know how
> accurate that statement is??
>
> Just wondering...??
>
> Mike in NS
>
> --
> Michael Beaton
> 1977 Kingsley 26-11
> 1977 Eleganza II 26-3
> Antigonish, NS
>
> Life is too short to hold a grudge; slash some tires and call it even !
> _______________________________________________
> GMCnet mailing list
> Unsubscribe or Change List Options:
> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
>
--
Jim Kanomata
Applied/GMC, Fremont,CA
jimk@appliedairfilters.com
http://www.appliedgmc.com
1-800-752-7502
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Jim Kanomata
Applied/GMC
jimk@appliedairfilters.com
www.appliedgmc.com
1-800-752-7502
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| Re: [GMCnet] $30 tires [message #303511 is a reply to message #303510] |
Wed, 13 July 2016 10:19 |
k2gkk
Messages: 4452
Registered: November 2009
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I was told that the same pay/msrp ratio also applies to new RVs!
Dealer pays about 21k for a unit with MSRP of 30k.
This from an RV salesman friend with 25 years in the business!
Mac Macdonald in OKC
'76 Palm Beach (sort of)
"The Money Pit"
Sent from my iPad
> On Jul 13, 2016, at 09:51, Jim Kanomata wrote:
>
> I can say that they pay $ 70 for a $100 tire.
> There is NO phenomenal mark up on any generic merchandise.
> I was dealing with tire dealers when I was a branch manager for Tool and
> equipment co.
>
> On Wed, Jul 13, 2016 at 5:15 AM, Kingsley Coach
> wrote:
>
>> Netters
>>
>> On good authority, I was told yesterday that the price a tire dealer pays
>> for a $100 tire is $30 (approx. for both figures).
>>
>> Do we have any tire dealers or former retailers of tires who would know how
>> accurate that statement is??
>>
>> Just wondering...??
>>
>> Mike in NS
>>
>> --
>> Michael Beaton
>> 1977 Kingsley 26-11
>> 1977 Eleganza II 26-3
>> Antigonish, NS
>>
>> Life is too short to hold a grudge; slash some tires and call it even !
>> _______________________________________________
>> GMCnet mailing list
>> Unsubscribe or Change List Options:
>> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
>
>
>
> --
> Jim Kanomata
> Applied/GMC, Fremont,CA
> jimk@appliedairfilters.com
> http://www.appliedgmc.com
> 1-800-752-7502
> _______________________________________________
> GMCnet mailing list
> Unsubscribe or Change List Options:
> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
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| Re: [GMCnet] $30 tires [message #303516 is a reply to message #303515] |
Wed, 13 July 2016 11:15 |
Rob
Messages: 651
Registered: November 2013
Location: Victoria, BC
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I think you'd also find that EVERYBODY would be in the tire business…
Rob
Victoria, BC
76 Royale - Rear Twins/Dry Bath
On 2016-07-13, at 9:07 AM, Emery Stora wrote:
> Mike
> Many dealers wish that were true but I think the numbers are wrong. I think its more like the dealer
> paying 70% for the tires. My dad was in the tire business for several years.
>
> If it were 30% you would see a lot more tire sales way below the suggested list price.
>
> Who is your “good authority”? I would suggest that you find another source for that information.
>
> Emery Stora
> 77 Kingsley
> Frederick, CO
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Rob -
Victoria, BC -
76 Royale - Rear Twins/Dry Bath
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| Re: [GMCnet] $30 tires [message #303526 is a reply to message #303516] |
Wed, 13 July 2016 14:44 |
jimk
Messages: 6734
Registered: July 2006
Location: Belmont, CA
Karma: 9
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Our Air filter side landed the air filter framing system at Apple Computers
last week for couple hundred thousand, and our margin was around 3-4%.
On Wed, Jul 13, 2016 at 9:15 AM, Rob wrote:
> I think you'd also find that EVERYBODY would be in the tire business…
>
> Rob
> Victoria, BC
> 76 Royale - Rear Twins/Dry Bath
>
> On 2016-07-13, at 9:07 AM, Emery Stora wrote:
>
>> Mike
>> Many dealers wish that were true but I think the numbers are wrong. I
> think its more like the dealer
>> paying 70% for the tires. My dad was in the tire business for several
> years.
>>
>> If it were 30% you would see a lot more tire sales way below the
> suggested list price.
>>
>> Who is your “good authority”? I would suggest that you find another
> source for that information.
>>
>> Emery Stora
>> 77 Kingsley
>> Frederick, CO
> _______________________________________________
> GMCnet mailing list
> Unsubscribe or Change List Options:
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--
Jim Kanomata
Applied/GMC, Fremont,CA
jimk@appliedairfilters.com
http://www.appliedgmc.com
1-800-752-7502
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Jim Kanomata
Applied/GMC
jimk@appliedairfilters.com
www.appliedgmc.com
1-800-752-7502
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| Re: [GMCnet] $30 tires [message #303528 is a reply to message #303500] |
Wed, 13 July 2016 15:41 |
Chris Tyler
Messages: 458
Registered: September 2013
Location: Odessa FL
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Keep in mind that most products go through at least one layer of distributorship before going to retail. I cannot speat to margins on tires, but I do have some insight on margins that is perhaps dated as I have been out of business mgt for ~25 yrs.
When I was parts mgr for Lazy Days [at the time the largest RV dealer on one site] the margin on parts overall was 30%. On small and special order items it was higher. On large ticket and competitive items it was much lower.
Even with our buying power and volume, we still had to go through distributors for most items. I did have a direct deal with Faulkner to try to compete with Camping world on apples vs oranges, but in the end, it was benificial to go with A&E due to discounts on non awning items and stocking percs.
Camping world could often sell retail for less than I could buy for. I interviewed with them when they opened a location here. Apparantly they are their own distributor.
Margins on RVs vary, more on the higher end coaches. As I recall the average margins on sales were somewhere around 15%. Not sure if they employed dealer holdbacks and floorplan discounts like they do in the car business to make more on the back end.
In the retail auto parts business [Rose auto] we had to buy via the wherehouse wholely owned by Rose auto. Store margins were ~20% and they had multiple ways to pencil you to keep emplyees from making bonus. District mgr accidently left a spreadsheet that listed the warehouse cost for inventory items that showed about 50% markup to the stores. I remember there wasnt a single item on the chemical shelf that cost them more than .10 cents [this was 1979]
We didnt sell tires though.
76 Glenbrook
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| Re: [GMCnet] $30 tires [message #303530 is a reply to message #303528] |
Wed, 13 July 2016 15:55 |
powerjon
Messages: 2446
Registered: January 2004
Karma: 5
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When I bought tires for our first coach I got them at dealer cost which was about 30% off retail. My brother was in the car business and they bought a lot of tires for the dealership.
JR
> On Jul 13, 2016, at 4:41 PM, Chris Tyler wrote:
>
> Keep in mind that most products go through at least one layer of distributorship before going to retail. I cannot speat to margins on tires, but I do
> have some insight on margins that is perhaps dated as I have been out of business mgt for ~25 yrs.
>
> When I was parts mgr for Lazy Days [at the time the largest RV dealer on one site] the margin on parts overall was 30%. On small and special order
> items it was higher. On large ticket and competitive items it was much lower.
> Even with our buying power and volume, we still had to go through distributors for most items. I did have a direct deal with Faulkner to try to
> compete with Camping world on apples vs oranges, but in the end, it was benificial to go with A&E due to discounts on non awning items and stocking
> percs.
>
> Camping world could often sell retail for less than I could buy for. I interviewed with them when they opened a location here. Apparantly they are
> their own distributor.
>
> Margins on RVs vary, more on the higher end coaches. As I recall the average margins on sales were somewhere around 15%. Not sure if they employed
> dealer holdbacks and floorplan discounts like they do in the car business to make more on the back end.
>
> In the retail auto parts business [Rose auto] we had to buy via the wherehouse wholely owned by Rose auto. Store margins were ~20% and they had
> multiple ways to pencil you to keep emplyees from making bonus. District mgr accidently left a spreadsheet that listed the warehouse cost for
> inventory items that showed about 50% markup to the stores. I remember there wasnt a single item on the chemical shelf that cost them more than .10
> cents [this was 1979]
> We didnt sell tires though.
> --
> 76 Glenbrook
>
> _______________________________________________
> GMCnet mailing list
> Unsubscribe or Change List Options:
> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
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J.R. Wright
GMC GreatLaker
GMC Eastern States
GMCMI
78 30' Buskirk Stretch
75 Avion Under Reconstruction
Michigan
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| Re: [GMCnet] $30 tires [message #303532 is a reply to message #303526] |
Wed, 13 July 2016 16:14 |
Ken Burton
Messages: 10030
Registered: January 2004
Location: Hebron, Indiana
Karma: 10
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jimk wrote on Wed, 13 July 2016 14:44Our Air filter side landed the air filter framing system at Apple Computers
last week for couple hundred thousand, and our margin was around 3-4%.
That is the same mark up we were dealing with on PC's. I could not even respond to a bid for a quantity of less than 1,000 and that had to be part of a contract for other services or equipment.
I sent those less than 1,000 requests to SOHO / consumer dealers.
Ken Burton - N9KB
76 Palm Beach
Hebron, Indiana
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| Re: [GMCnet] $30 tires [message #303535 is a reply to message #303500] |
Wed, 13 July 2016 17:07 |
jhbridges
Messages: 8412
Registered: May 2011
Location: Braselton ga
Karma: -74
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There ain't no magic in commodity items. When I look at an RV dealership, he's got 20 - 30 coaches, half a dozen are hi bux diesel pushers, nothing under 100K retail. Now, if he floor plans at 3 - 4% and they sit for as much as a year before they move, a 30% gross on retail ain't a lot of money.He's gonna discount 10 - 15% off list, and now he's got to make his plan on 15 gross. Life ain't easy.
My boss at the Ocean Springs International Airplane Patch many years ago also had a filling station. He taped the invoice from Goodyear for his tires in the window and sold them for $3 over invoice. He said that was about what the tire stores were making off their stock, and his way made people think they had a bargain. (this in 1972).
--johnny
Foolish Carriage, 76 26' Eleganza(?) with beaucoup mods and add - ons.
Braselton, Ga.
I forgive them all, save those who hurt the dogs. They must answer to me in hell
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| Re: [GMCnet] $30 tires [message #303536 is a reply to message #303535] |
Wed, 13 July 2016 17:37 |
Kingsley Coach
Messages: 2691
Registered: March 2009
Location: Nova Scotia Canada
Karma: -34
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Senior Member |
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Thanks for the input gents!
My source was a guy who owns a transmission shop talking to his buddy, a
tire dealer.
Having read what y'all (Southern talk from a bluenoser) wrote, it appears
there may have been a bit of the Captain (white rum brand) involved and one
may have been trying to impress the other..
Thanks again..
Mike in NS
On Wed, Jul 13, 2016 at 7:07 PM, Johnny Bridges via Gmclist <
gmclist@list.gmcnet.org> wrote:
> There ain't no magic in commodity items. When I look at an RV dealership,
> he's got 20 - 30 coaches, half a dozen are hi bux diesel pushers, nothing
> under 100K retail. Now, if he floor plans at 3 - 4% and they sit for as
> much as a year before they move, a 30% gross on retail ain't a lot of
> money.He's gonna discount 10 - 15% off list, and now he's got to make his
> plan on 15 gross. Life ain't easy.
> My boss at the Ocean Springs International Airplane Patch many years ago
> also had a filling station. He taped the invoice from Goodyear for his
> tires
> in the window and sold them for $3 over invoice. He said that was about
> what the tire stores were making off their stock, and his way made people
> think they had a bargain. (this in 1972).
>
> --johnny
> --
> '76 23' transmode Norris upfit, 76 26' Eleganza(?) with beaucoup mods and
> add - ons.
> Braselton, Ga.
>
> "Sometimes I wonder what tomorrow's gonna bring when I think about my
> dirty life and times" --Warren Zevon
>
> _______________________________________________
> GMCnet mailing list
> Unsubscribe or Change List Options:
> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
>
--
Michael Beaton
1977 Kingsley 26-11
1977 Eleganza II 26-3
Antigonish, NS
Life is too short to hold a grudge; slash some tires and call it even !
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| Re: [GMCnet] $30 tires [message #303537 is a reply to message #303500] |
Wed, 13 July 2016 17:42 |
rcjordan
Messages: 1913
Registered: October 2012
Location: Elizabeth City, North Car...
Karma: 1
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>3-4%
>There ain't no magic in commodity items
We own a wholesale electrical & plumbing supply house. In this biz, you see commodity bids at 2-5%. If the manufacturer is quoting a special price, the wholesaler will will pad the bid quantities and put those in inventory at the reduced cost.
SOLD 77 Royale Coachmen Side Dry Bath
76 Birchaven Coachmen Side Wet Bath
76 Eleganza
Elizabeth City, NC
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| Re: [GMCnet] $30 tires [message #303539 is a reply to message #303536] |
Wed, 13 July 2016 18:13 |
jimk
Messages: 6734
Registered: July 2006
Location: Belmont, CA
Karma: 9
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Senior Member |
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you people have missconception about usiness.
When we pay ore technicians 30/hr they do not realize all the insurane and
tax we need to pay the fed and state and laor for paperworh, ren ,light and
other overhead.
The Small Business Adm says 70% of start up companies fail during the first
year.
I have lot of people that come to me and tell me they want to go into
business.
Most have had no experience or knowledge, so I tell them to go work at a
similar business and see how things work there, then I will advise them.
On Wed, Jul 13, 2016 at 3:37 PM, Kingsley Coach
wrote:
> Thanks for the input gents!
> My source was a guy who owns a transmission shop talking to his buddy, a
> tire dealer.
> Having read what y'all (Southern talk from a bluenoser) wrote, it appears
> there may have been a bit of the Captain (white rum brand) involved and one
> may have been trying to impress the other..
> Thanks again..
>
> Mike in NS
>
> On Wed, Jul 13, 2016 at 7:07 PM, Johnny Bridges via Gmclist gmclist@list.gmcnet.org> wrote:
>
>> There ain't no magic in commodity items. When I look at an RV
> dealership,
>> he's got 20 - 30 coaches, half a dozen are hi bux diesel pushers, nothing
>> under 100K retail. Now, if he floor plans at 3 - 4% and they sit for as
>> much as a year before they move, a 30% gross on retail ain't a lot of
>> money.He's gonna discount 10 - 15% off list, and now he's got to make his
>> plan on 15 gross. Life ain't easy.
>> My boss at the Ocean Springs International Airplane Patch many years ago
>> also had a filling station. He taped the invoice from Goodyear for his
>> tires
>> in the window and sold them for $3 over invoice. He said that was about
>> what the tire stores were making off their stock, and his way made people
>> think they had a bargain. (this in 1972).
>>
>> --johnny
>> --
>> '76 23' transmode Norris upfit, 76 26' Eleganza(?) with beaucoup mods and
>> add - ons.
>> Braselton, Ga.
>>
>> "Sometimes I wonder what tomorrow's gonna bring when I think about my
>> dirty life and times" --Warren Zevon
>>
>> _______________________________________________
>> GMCnet mailing list
>> Unsubscribe or Change List Options:
>> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
>>
>
>
>
> --
> Michael Beaton
> 1977 Kingsley 26-11
> 1977 Eleganza II 26-3
> Antigonish, NS
>
> Life is too short to hold a grudge; slash some tires and call it even !
> _______________________________________________
> GMCnet mailing list
> Unsubscribe or Change List Options:
> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
>
--
Jim Kanomata
Applied/GMC, Fremont,CA
jimk@appliedairfilters.com
http://www.appliedgmc.com
1-800-752-7502
_______________________________________________
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Jim Kanomata
Applied/GMC
jimk@appliedairfilters.com
www.appliedgmc.com
1-800-752-7502
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| Re: [GMCnet] $30 tires [message #303545 is a reply to message #303500] |
Wed, 13 July 2016 19:15 |
Steve
Messages: 506
Registered: September 2013
Location: East Greenville, Pa
Karma: 1
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Senior Member |
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There is an old saying in business that is not too far from the truth. "We lose money on every sale, but we make it up in volume". Business is tough. Those of us who are business owners and managers know the hard cold realities of being in business. Once in a while you might have a really good year and everyone thinks you are greedy. They don't focus on the years where you worked for free or fed capital into the business. Its sell sell sell or die.
1978 GMC Royal
Eastern Pennslyvania
1968 Chevrolet C20 396 Camper Special
1969 Chevrolet C20 Camper Special
1985 Buick Electra Park Avenue
1992 Camaro 25th Anniversary Heretage Edition Black
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| Re: [GMCnet] $30 tires [message #303562 is a reply to message #303545] |
Thu, 14 July 2016 00:25 |
jimk
Messages: 6734
Registered: July 2006
Location: Belmont, CA
Karma: 9
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Senior Member |
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I can remember the good days when I was just a sales engineer.I earned
great compensation.
Now that I have a corporation , I do not have that type of income.
We have one product line on the Air Filter side where the margin is around
45-50%, but we need to spend lot of time to earn it.
On Wed, Jul 13, 2016 at 5:15 PM, Steve Adams wrote:
> There is an old saying in business that is not too far from the truth.
> "We lose money on every sale, but we make it up in volume". Business is
> tough. Those of us who are business owners and managers know the hard
> cold realities of being in business. Once in a while you might have a
> really
> good year and everyone thinks you are greedy. They don't focus on the
> years where you worked for free or fed capital into the business. Its sell
> sell sell or die.
>
>
> --
> 1978 GMC Royal
> Eastern Pennslyvania
> 1968 Chevrolet C20 396 Camper Special
> 1969 Chevrolet C20 Camper Special
> 1985 Buick Electra Park Avenue
> 1992 Camaro 25th Anniversary Heretage Edition Black
>
>
> _______________________________________________
> GMCnet mailing list
> Unsubscribe or Change List Options:
> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
>
--
Jim Kanomata
Applied/GMC, Fremont,CA
jimk@appliedairfilters.com
http://www.appliedgmc.com
1-800-752-7502
_______________________________________________
GMCnet mailing list
Unsubscribe or Change List Options:
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Jim Kanomata
Applied/GMC
jimk@appliedairfilters.com
www.appliedgmc.com
1-800-752-7502
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| Re: [GMCnet] $30 tires [message #303576 is a reply to message #303562] |
Thu, 14 July 2016 08:42 |
Jeanette
Messages: 118
Registered: May 2013
Karma: 0
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Senior Member |
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Thank you to all the individual business folks who keep the world n our GMCs going. We understand your pain. And thank you for the customer service u provide.
Sent from my iPhone
> On Jul 14, 2016, at 12:25 AM, Jim Kanomata wrote:
>
> I can remember the good days when I was just a sales engineer.I earned
> great compensation.
> Now that I have a corporation , I do not have that type of income.
> We have one product line on the Air Filter side where the margin is around
> 45-50%, but we need to spend lot of time to earn it.
>
>> On Wed, Jul 13, 2016 at 5:15 PM, Steve Adams wrote:
>>
>> There is an old saying in business that is not too far from the truth.
>> "We lose money on every sale, but we make it up in volume". Business is
>> tough. Those of us who are business owners and managers know the hard
>> cold realities of being in business. Once in a while you might have a
>> really
>> good year and everyone thinks you are greedy. They don't focus on the
>> years where you worked for free or fed capital into the business. Its sell
>> sell sell or die.
>>
>>
>> --
>> 1978 GMC Royal
>> Eastern Pennslyvania
>> 1968 Chevrolet C20 396 Camper Special
>> 1969 Chevrolet C20 Camper Special
>> 1985 Buick Electra Park Avenue
>> 1992 Camaro 25th Anniversary Heretage Edition Black
>>
>>
>> _______________________________________________
>> GMCnet mailing list
>> Unsubscribe or Change List Options:
>> http://list.gmcnet.org/mailman/listinfo/gmclist_list.gmcnet.org
>
>
>
> --
> Jim Kanomata
> Applied/GMC, Fremont,CA
> jimk@appliedairfilters.com
> http://www.appliedgmc.com
> 1-800-752-7502
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