Re: Re: Profit margin on tires

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Posted by Tire Guy on August 18, 1999 at 23:08:24:

In Reply to: Re: Profit margin on tires posted by Bradley on August 13, 1999 at 20:15:51:

The mark-up on tires varies on many things. A national retailer selling their name brand tire (ie., a Goodyear store) makes more per tire. They paid less for it. It also depends on the tire store's buying power. How deep does the store buy into the brand. Billy Bob's Tire Shop isn't geting a good deal when he buys them, he doesnt buy enough for the wholesaler. In turn, he makes his money mounting them, and all the other good stuff that goes with it. A place like Pep Boys normally makes 3-10% on a tire (normal retail mark up is 32% average), because they sell a house label tire made by Cooper. They too make their money installing the tires. Mounting is free, lifetime balancing 8.99, valve stems .50, and so on. Like most anything, shop around, find your best deal, and try not to think about how much the store is making. PS, markup on jewerly is usually between 200-500%.

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