Local tire pricing

[Big Sky]

For many years I bought my tires from the Internet. Why? Because the local franchised dealers all wanted full MSRP pricing, then sometimes even up to $50/wheel for mounting/balancing. For one, I won't throw away $150-$200 several times a year.

A few years ago a reputable guy opened a service shop (he also sells used machines). He was the former Honda dealer of many years and lost the franchised store to his wife in a divorce.

I went to see him. I said I would rather spend my money with locally owned businesses than send it god-knows-where with Internet purchases, but that I couldn't afford to pass up the savings.

He said, bring me your best Internet prices and let me see how close I can come. Since then I've probably spent $7,500 or so with his business for tires (10 or 15 sets) and many other services, parts, accessories. He has come within $5-$20 of my best Internet tire prices. Then he gives me a deal on mounting/balancing: I bring him the wheels, $17.50 each and they are done right.

I just went to see him about a new set of Pirelli Angel GTs. I found Internet prices for a front/rear set (FJR stock sizes), no shipping charge, of $122 for a front, $155 for a rear - $277. He said, I have those in stock. He checked his cost and said, $127 for the front, $162 for the rear - $12 more than the Internet, right here in town, not seconds, or blemished or old stock and he'll run flack for me in case of a warranty issue. This is why I do business there.

I'm just wondering if any of your local dealers - franchised or independent - could or would work this way. I think my guy sees the big picture: he still makes a reasonable profit on the tires (has over 400 in stock), makes a few bucks on the mount/balance, positions himself in the local marketplace as the go-to tire store in town, then gets all the rest of my residual business while I keep my money circulating in the local economy. He is smart and is very successful.

Comment?

 

[Intech]

I do the same thing for mounting the motorcycle tires. I give all the rest of my business to them for my vehicle tires. He is at or just a few dollars above any internet prices on them ,but is still way off on MC tires. It may just be a volume thing. For most anything I will pay a little more to buy locally.

 

[MCRIDER007]

If I had a dealer like that close by then I never would have bought a tire changer....but I'm surprised that he can be competitive on tire prices. The Internet dealers buy tires by the 100 and usually get some pretty deep discounts, they may only make $10 a tire but really do offset the small profit margin with huge sales volume. My favorite dealer told me that he could not even buy tires from his supplier at the Internet prices and advised to me keep buying on the Internet. That was several years ago and maybe pricing has changed but now that I have a tire changer I prefer to change tires myself so there isn't any reason to buy locally when the Internet tires are delivered to my door.

 

[MadRussian]

My buddy owns a small shop and he orders my tires at best price he can find on line, delivered to his shop.

I ride my bike in, have a drink and smoke, while he changes my tires, free of charge.

Usually we will grab lunch after and I will buy.

 

[bigjohnsd]

The tire deal is always changing. As an ex-dealer the only way I could be competitive was to buy a bunch of tires early in the season, even then it was impossible to beat the internet deals.

The Labor is what it is, I think the flat rate manual is about 200% high on tire changing from Yamaha.

They would like to get an hour for each end, I know it doesn't take that long.

One hour to do both ends is reasonable, $100 seems fair to me to remove,replace, mount, balance and reinstall while checking brake pad wear and greasing drive shaft splines.

FJRay can do it, I watched him. The Yamaha dealer in Bend OR was competitive on tire prices, cheaper than some internet deals on PR4GT"s last summer and he charged $100 in labor. Can't remember the name of the store but they own three or four and must buy in quantity.

Most dealers belong to "20 groups". A 20 group is a group of non geographically co located dealers with similar stores in similar sized market areas. They get together three or four times a year and share financial data and business practices. Someone always has a better way to make money in the tire game. These schemes seem to ripple their way through the industry.

Bottom line is you can't stay in business losing money on every sale. Ideally you make 20% margin on the tire and at least that much on your shop labor too.

 

[Bugnatr]

I buy my tires on line but spend money at both the local Honda shop and the independent for mounting or other parts as I don't want them to go away. It would really suck if they were gone as the next nearest dealers are 45 minutes away.

Support the local guys when you can.

 

[HotRodZilla]

The R&S Motorsport dealers in Albuquerque claim to sell tires at or below wholesale, but sometimes, one store will have a lower price than another on the same tires. It's weird, but if buying tires from them, it's smart to shop around.

To make up for their tire prices, R&S charges $45 per rim, wheels on or off the bike, which is a total rip off. My Yamaha dealer, Bobby J's refuses to reduce tire prices, which are outrageous, and their selection sucks, but their service dept changes them for $25ea off the bike. So, I usually buy from the Internet or R&S and take them to Bobby J's for installation.

I recently picked up this Cycle Hill/NoMar changer, so from now on, the plan is for me to mount my own tires. Hopefully it'll work out well.

We also have a Cycle Gear, but I haven't seen them have a relevant tire sale yet. Sport bike tires are always on sale, but never good ST tires. If bought in store, mounting is $30 per rim. If tires are brought in, it's $35 each. However, I've had two times when the balance was extremely out of whack. Having to take my front wheel off, drive across town, wait, drive back across town to pick it up, reinstall it and then hope for the best is a bullshit proposition, so I won't go there unless I'm forced.

 

[escapefjrtist]

Supporting local dealers is always a good idea and I do so at every opportunity. Seems they can generally get close on gear and stuff.

Tires are a non starter for me. My closest dealer attempts to match internet pricing but on the couple occasions they had the tire I wanted in stock, set pricing was $80 higher, plus sales tax. Not going to happen...

Mounting would be great, but off bike prices are $25 a tire if purchased there, and IIRC $55 a tire off bike for internet tires. Considering I can mount and balance a set of tires [off bike] in less than 45 minutes, $110 plus tax and a couple hours of my time isn't going to happen.

My cheapo HF changer has paid for itself many times over!

--G

 

[rbentnail]

We have 2 dealerships around me, Honda and HD. HD won't install a tire even if I bring an empty rim. Honda guy charges $23 to replace a tire, wheel off, regardless if you get the tire from him or not. He has maybe 40 tires in stock, all for GoldWings and CBR's. So I get the best internet deal I can and take them to him with just wheels. He's only 3 miles up the road so I drop stuff off, go home for brake inspection, shaft lube, etc. then go and pick the stuff up later. He'll even mount car tires if you want, "Yeah, we put them on GW's all the time, why not?"