Re: [MV] Tires and tire discounts

From: MV (MV@dc9.tzo.com)
Date: Mon Aug 08 2005 - 20:15:46 PDT


The manufacturers I was referring to were manufacturers of trailers in
this case. The wholesalers sell tires in bulk to these manufacturers.
Most of them seem to be mounted on rims before they are shipped.

But I was offered substantial discounts for simply setting up an account
with another company in Cincinnati. By substantial, I mean 20-25% which
I think is very significant in a market as competitive as tires. I had
no idea they had margins like that to play with. But a lot of these
tires are now being made in Asia so their costs must be fairly cheap if
they by via containers of tires. Even the Goodyear tires I was looking
at were made in Asia. I think the Goodyear Steeltex (sp?) tires on my 2
ton truck were made in Brazil.

Dave

Sonny Heath wrote:
> You say that you can deal with tire wholesalers who supply tires to
> manufacturers. I don't quite understand that statement, would you
> please give an example of what you mean there? Why would a tire
> manufacturer need a wholesaler to supply him with tires if he makes them?
>
> I own a small tire business and I agree with Arthur 100%, been there,
> done that, for twenty five years now.
>
> Sonny
>
>
> ----- Original Message ----- From: "MV" <MV@dc9.tzo.com>
> To: "Military Vehicles Mailing List" <mil-veh@mil-veh.org>
> Sent: Sunday, August 07, 2005 11:54 PM
> Subject: [MV] Tires and tire discounts
>
>
>>
>> Arthur,
>>
>> I have to take partial exception to what you say. I run a business
>> and have a few trailers and a couple of trucks. I have found that
>> since I have a business I can deal with tire wholesalers who supply
>> tires to manufacturers. Sometimes these companies are distributors
>> who have no retail areas at all. Othertimes I have dealt with larger
>> retailers and they have even offered further discounts with them if I
>> setup an account with their company. I just bought 6 tires from a
>> wholesaler last week for a triaxle trailer and the tires mounted on
>> new rims were $60 each. The same tire, if you were to buy from a
>> retailer would be $70 without a rim. Retail demountable rims such as
>> the ones supplied go for about $35 each retail. If I was to buy the
>> same tires from my local tire dealer, they would have been $70+$35+$7
>> for mounting or $112 each. So I saved about $52 per tire and wheel.
>> Now this is probably the extreme situation (I think?) but it
>> illustrates how things can work.
>>
>> The only way I was able to do that was due to the fact that they are a
>> wholesaler and they only want to deal with other companies. I knew
>> what I wanted and the transaction took about 5 minutes.
>>
>> You can bet that trucking companies are not paying normal retail to
>> setup their rigs also.
>>
>> There is a seller on Ebay selling used 11x20 NDT tires in the midwest
>> (Iowa I think) at rock bottom prices. Like $25 each, etc. Shipping
>> isn't cheap but perhaps a ride with a trailer in tow might be worth
>> the savings.
>>
>> Dave
>>
>>
>>
>>
>> m35products wrote:
>>
>>> Your ideas are great, but unfortunately, a bit naive.
>>>
>>> To get a "good deal" on tires, you and your friends, or even your fellow
>>> members of MVPA (once you join) will need to purchase an amount slightly
>>> greater than 30 tires. Try 3,000, 30,000, or 300,000 tires. That
>>> amount will
>>> get the attention of the manufacturers. They may even allow you to
>>> consider
>>> yourself a dealer, but it's doubtful. Their other dealers might get a
>>> bit
>>> upset, and call you names. The dealers who sell tires and who
>>> advertise in
>>> the MVPA journal already have figured out how to discount their
>>> products to
>>> the max, and still make a living. If it could be done, it would have
>>> been
>>> done already. I needed 500 military tires for an overseas contract. I
>>> paid
>>> close to retail. I wasn't even allowed to talk to the factory for that
>>> "small" amount of tires. Do you want to buy more than 500 tires at a
>>> time?
>>>
>>> How many tires does your local tire RETAILER sell each year? The
>>> number is
>>> probably in the 10,000 to 100,000 range in a suburban setting. Find
>>> out, and
>>> then ask him if he needs a partner. Mention that you need thirty
>>> tires. When
>>> he stops laughing, spend the money to buy thirty tires at his asking
>>> price,
>>> and be content with the knowlege that he stands behind his products,
>>> will
>>> honor warranties without question, and that he does this after paying
>>> for:
>>>
>>> delivery,
>>> storage,
>>> tools,
>>> inventory,
>>> disposal fees,
>>> licensing,
>>> industry group memberships,
>>> travel,
>>> training,
>>> advertising,
>>> mortgage,
>>> accounting fees,
>>> phone/fax/internet,
>>> office machinery,
>>> paper supplies,
>>> furniture,
>>> repairs,
>>> postage,
>>> rent,
>>> taxes,
>>> security,
>>> payroll,
>>> insurance,
>>> heat/light/AC,
>>> donations to the ambulance and fire departments,
>>> and coffee, donuts, and benefits for his employees.
>>>
>>> With the above business details in mind, why not set yourself up as a
>>> major
>>> tire distributor, then advertise in MVPA and other enthusiast
>>> magazines, and
>>> sell at a deep discount to other MVPA members? Then you will have
>>> accomplished your goals. It should be easy, as I'm sure you have
>>> thought all
>>> this out. These expenses listed above are some things to consider when
>>> formulating your business model. (You'll need to justify all of these to
>>> your investors, by the way. It takes a huge chunk of money to start a
>>> company up, and to keep it going. You're looking at a 10- to 20-year
>>> payback
>>> on investment.)
>>>
>>> How many MVPA members are there? How many buy NEW tires each year for
>>> their
>>> HMV's? How many of these fellows have the disposable income for
>>> tires, even
>>> at wholesale prices, rather than at surplus prices? How many miles
>>> does each
>>> HMV get driven each year? You're not talking the DoD, Verizon, Roadway,
>>> FedEx, or the US Postal Service, here. I put 200 miles on one M35
>>> last year.
>>> The 20-year old tires are a bit funky looking, but they hold air.
>>> That is my
>>> criterion for replacement. When my Fire Department needed 10 tires
>>> for its
>>> M35, we bought them from Saturn Surplus, and got a great deal. They were
>>> matched, 90% tread, less than ten years old, came mounted on rims,
>>> and cost
>>> around $100 each, including delivery. Will you be able to beat that
>>> price?
>>> If so, put me down for ten tires.
>>>
>>> To get a good deal on other products and services, the same rules
>>> apply. Ask
>>> yourself what benefit any manufacturer would receive by selling a
>>> ten-thousandth of a percent of his inventory to you and your buddies
>>> at a
>>> discount. You have suggested a scheme to get tires cheaply. That is
>>> commendable, but the expression that comes to mind is "Been there, tried
>>> that, got rebuffed." This hobby, even more so than your average
>>> vintage-car
>>> club collecting, is not a poor man's hobby. And being in business in
>>> this
>>> hobby is being in a hobby business. Most of us have our day jobs, too.
>>>
>>> Step up to the plate, join the MVPA, and write the check for the
>>> tires. As
>>> Woody Allen said: "The high point of my childhood was going out with my
>>> family and buying something retail."
>>>
>>> ***This email has been inspected, and is certified free of any
>>> name-calling.***
>>>
>>> Arthur P. Bloom, Pres.
>>> www.M35products.com
>>>
>>> Discount on all products for MVPA members.
>>>
>>> MVPA member #20238
>>> Small business owner.
>>>
>>>
>>>
>>>
>>>
>>> ----- Original Message ----- From: <santoken@bright.net>
>>> To: "Military Vehicles Mailing List" <mil-veh@mil-veh.org>
>>> Sent: Saturday, August 06, 2005 11:10 PM
>>> Subject: Re: [MV] ASSISTANCE REQUESTED & The MVPA
>>>
>>>
>>>
>>>> On another note, would anyone be interested in teaming up and perhaps
>>>
>>>
>>> trying to get some better deals on stuff that we all need? I for one
>>> need
>>> 10 tires, my close buddy here needs 20 tires. That's 30 tires.
>>> Anyone else
>>> need tires?
>>>
>>>
>>>
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>>
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>>
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>
>



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