What's the profit margin on tyres?

[CoolHands]

Anyone know? I know it varies on brand etc but what's the rough difference between trade price and retail?

[greygoose]

Garages don't make a profit on tyres, they make it all up on MOT repairs.

[sinizter]

What about tyre places then ?

[Dracoro]

It depends who's selling for one. e.g. Tyre X from garage A may be £100 but from garage B it may be £90.

It depends on the deal a garage/fitters get from their suppliers. e.g. Garage C gets them in at £60 a tyre but garage D can only get them in at £80 a tyre.

Then the manufacturers make/sell to suppliers who then sell to you/garages, all of which probably get different rates.

[mcdjl]

greygoose said:

Garages don't make a profit on tyres, they make it all up on MOT repairs.

I wonder how the places that just sell tyres survive then? I know theres profit in the fitting but I'm hoping I'm having a whoosh parrot moment.

[cptsideways]

There's generally a 30-40% markup in the retail trade, but there is a lot of competition out there. Own brand & budget tyres often have better margins than mainstream brands. The likes of Camskill have very low mark ups.

[greygoose]

mcdjl said:

greygoose said:

Garages don't make a profit on tyres, they make it all up on MOT repairs.

I wonder how the places that just sell tyres survive then? I know theres profit in the fitting but I'm hoping I'm having a whoosh parrot moment.

coolhand's previous topic

[V8mate]

If his wholesaler carries the tyre I ask for, my local indie tyre dealer has always matched, and sometimes improved upon, Camskill/Blackcircles prices. So there must be margin there for him to play with.

The only thing he can't get me are my R888s, but for that eBay beats Camskill/usual suspects by a huge margin.

[CoolHands]

greygoose said:

mcdjl said:

greygoose said:

Garages don't make a profit on tyres, they make it all up on MOT repairs.

I wonder how the places that just sell tyres survive then? I know theres profit in the fitting but I'm hoping I'm having a whoosh parrot moment.

coolhand's previous topic

err yeah, thanks?

[jonstable]

Bugger all profit for most people selling tyres these days thanks to the internet. Good for consumers, not great for retailers.

[v8will]

cptsideways said:

There's generally a 30-40% markup in the retail trade, but there is a lot of competition out there. Own brand & budget tyres often have better margins than mainstream brands. The likes of Camskill have very low mark ups.

C.30-40% Net? I doubt many retailers are on that.

Stack it high and sell it cheap has been the model for many a year (or busy fools as some called it). Camskill would be on a minimal markup but they are shifting a lot of stock so probably get very good discounts.

All those small margins of £20 - 30 soon add up if you are doing enough of them

[Jobbo]

Would there be any mileage in running a business not stocking any tyres, simply fitting people's internet purchases...? Hmmm. Possibly not since the overheads are going to be similar to a place that stocks tyres.

[V8mate]

Jobbo said:

Would there be any mileage in running a business not stocking any tyres, simply fitting people's internet purchases...? Hmmm. Possibly not since the overheads are going to be similar to a place that stocks tyres.

Blackcircles pay tyre fitters £10 per unit. Valve, fitting, balancing, labour. Hardly a money spinner.

[Dog Star]

My ex-next door neighbour is the national sales director for the one of (if not the) UKs largest used car retailer, and he told me that tyres were one of the biggest profit margin items going in the automotive market. I forget the details now (I moved house in '03) but I suspect the online retailers will have changed things a bit since.

[V8mate]

Dog Star said:

My ex-next door neighbour is the national sales director for the one of (if not the) UKs largest used car retailer, and he told me that tyres were one of the biggest profit margin items going in the automotive market. I forget the details now (I moved house in '03) but I suspect the online retailers will have changed things a bit since.

That's probably because large/main dealers charge a fortune for tyres fitted during servicing.

A friend of mine said that Blackcircles was half the price of his local Nissan dealer when he took his 350Z in for a service and they recommended new tyres.

[.:ian:.]

Depends on the brand, if you ask for a recommendation, they`ll flog you some DiYung Fireballs that are "basically the same as Dunlop/Michelin cos they are made in the same factory/country/hemisphere" at no doubt huge mark up.

I asked one place for price on a Dunlop (~£90 a corner) and he tried to sell me some unknown name for £60 a corner,, says it all...

[RemainAllHoof]

.:ian:. said:

Depends on the brand, if you ask for a recommendation, they`ll flog you some DiYung Fireballs that are "basically the same as Dunlop/Michelin cos they are made in the same factory/country/hemisphere" at no doubt huge mark up.

I asked one place for price on a Dunlop (~£90 a corner) and he tried to sell me some unknown name for £60 a corner,, says it all...

Couldn't care less about the mark up. DoYung's Dungballs are cheaper and will last 5 times as long as the leading brands since they're made primarily of plastic.

[otolith]

v8will said:

C.30-40% Net? I doubt many retailers are on that.

Some of Kwik Fit's walk-in prices are 30%-40% more than Camskill's retail prices - and presumably Camskill are making some money on them. Unless Camskill's price for a rear RE050 for a 350Z is going to go up substantially when they get stock in (and I suppose it might) Kwik Fit is currently selling them at 50% more than Camskill off the street or 22% more if you order and pay online.

[v8will]

otolith said:

Some of Kwik Fit's walk-in prices are 30%-40% more than Camskill's retail prices - and presumably Camskill are making some money on them. Unless Camskill's price for a rear RE050 for a 350Z is going to go up substantially when they get stock in (and I suppose it might) Kwik Fit is currently selling them at 50% more than Camskill off the street or 22% more if you order and pay online.

Yeah but that's st Fit for you!

How do you think they run their 4 for the price of 3 offers!!

I was told that Halfords parts prices run at 70% mark up... Nice if you can get it.

[craig7584]

I've been told by numerous local tyre shops in the past that they cant possible beat my tyre quote from the likes of camskill/blackcircles/mytyres because thats cheaper than what they get them from the supplier..

I would recommend they change their supplier, but if there is any truth in this then they dont make an awful lot.