Never Before

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Have I seen the tire industry quite so disorganized. Bought tires from one distributor for over 25 years. Had Cooper and Cooper house brands, as well as Kelly Springfield and some of their house brands. For all those years had consistent supply. Now it seems every week order will only about 75% fill. Rest are out of stock or on backorder. This company has allways seemed well run, with high focus on customer satisfaction and order fill rates.

After a while, missing part of my inventory began to cut into my bottom line, plus, if you price a tire just a bit too high, a customer will usually check back when they have another need, if you tell them you don't have a source or no idea when product will be available, they often write you off as unprofessional.

To augument supply I've started buying from the largest independent supplier in the state, also one of the larger independents natonwide, "American Tire and Wheel Distributors" with Gdyr,FS/[censored] (yea, I think Bridgestone should be sensored too, but just not for usig their initials),Mich/BFG/Uni, and others. With Kumho as their prefered house brand. NOW,WOW ho'od a thunk it,,,,their fill rate is no better than 75& either! Now I'm balancing supplier against supplier based of availability as well as price. What I've got as a top-tier tire this week may be something else entirely next week. And the bottom of the price level stuff most customers now want is a total jumble of product, as both suppliers can only spot buy a container of junk here and another container there. Sooo, I've started telling customers "here it is, it's cheap, it's new, now you know as much about this particular tire as I do". If it's cheap enough, they still buy it. Must be hitting price points faily well, as probably 2 of 3 call in price checks show up.

Used tire sales are still increasing, partly because word of mouth is reaching more, and I've kept a decent supply.

Every tire line is saying prie increase every 3 months, but some seem more frequent.

Bob
 
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This may be the result of having the tires now manufactured overseas. The extra 4-month lead time for shipping means they can't respond to market demand as quickly as domestic production.

Price increase is mostly due to the falling value of the dollar in the international market.
 
Bob,

There are a number of factors going on.

1) Tire size proliferation: When I started in the tire industry, there was one page of tires sizes - about 18 different ones. Now there are over 15 pages worth.

When I started there were two types of tires - regular and snow. Now there are All Season, All Terrain, UHP, All Season UHP, Winter, Winter UHP, etc, etc, etc.

This has affected pretty much every manufacturer in the industry. Supply is a problem and will continue to be a problem until the we get past this transition from high aspect ratios to lower aspect ratios, and the market decides how to sort itself out regarding Speed Ratings, and All Season vs Summer only, etc.

2) Since 2001, the price of natural rubber has risen 500% - yes 5 times. This is being caused by China stockpiling rubber to provide a steady supply for its industries. The effect of this has been HUGE!

Similar cost increases in oil and carbon black!

It is hard to pass on these costs increases quickly, so the only way to do it effectively is to tighten the supply. One way to do that is not to produce tires which are unprofitable - low volume sizes.

All of this is against the backdrop of an increasing flow of tires from low labor cost countries, such as China. This flow has the effect of slowing down the cost increases that are passed on - but they also are going after the popular sizes.

The net effect is that it is increasing difficult to make a profit in high volume tires and it is increasing difficult to justify producing tires in odd sizes.
 
Bob,
CapriRacer has a good point re proliferation of sizes.

We are finding with big bearings as well, with low inventory being the order of business these days. Some bearings, we are told that a "run" is not scheduled for 18 months, or until we get sufficient orders, rather than "yes sir, they will arrive in a week".
 
I had a pretty good handle on the "whys", just needed to do a bit of whining! Yea, the size proliferaton has got me constantly looking for another spot in the shop where I can store another new seller.

Best,

Bob
 
This proliferation of tire sizes is strangling the poor shop owner who wants to keep a healthy stock of fresh tires available for his customers. The same thing goes on in the automotive industry (e.g., the Caravan/Voyager once had a choice of four different V6s for their models!)

I hate to say this, but these are the instances where I sometimes envy the communist system, where they keep things simple.
 
I was just reading an article about how the auto industry is looking at cutting back on the # of option combinations. they figure they can cut costs (read as: keep CEO salary high) by making things simpler.
funny though, back in the day (50's, 60's) there seemed to be WAY more choices in a particular model. like a mid 50's Chevrolet- 2 door, 4 door, 2 and 4 door wagons, post AND non post doors, multiple engine options, few different manual trannies, 3 different trim levels, etc. now, I feel like I have less choices in a particular model; h3ll, you can't even get a manual trans most times!
as for tires, my VUE had what WAS an odd size: 235/65 16. but, by the time I needed new ones, there were more options, AND my local 2 man tire shop had them IN STOCK. now that was REALLY odd.
 
Odd sizes? Heck, my Scion xD came with 195-60-16's. I started researching before I bought the car and NO ONE made that size (as listed at Tire Rack and Toyota). Now, there are only two tires available, one of which is the OEM one. I will be 0+ sizing to a 205-55-16 where there are plenty of available options when the time comes.
 
My Metro uses 145-80-12's. Ever tried looking for 12" tires? Fun. I believe it's the only car that uses them. On the plus side, when I did find them they were only $39 apiece IIRC. And the tire guy had a giggle pulling them out of the back. "Baby tires".
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They actually had A/S and snow 12's, I was surprised. They were house brand (Motomaster) but I'm told they're made by Goodyear, though they don't list any on their website.

Hi-performance tires? It's a Metro.
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$39 for a 12" tires is a rip off:) I paid same $39 for high performance 14"'s:))! It was 2 years ago though.
 
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