Quote:
Originally Posted by Modena
I don't know that it's the dealers doing the ripping off, perhaps more the whole supply chain from manufacturer down into Australia. I'm not sure that a tyre franchise makes all that much money.
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Its been a while like 17 years but in a former life I was a ' Rubber Grub '- ie worked in the tyre industry (some say I'm still a grub-however that's another story entirely!!
) The margin then was 10-15% & I can't see that it would have changed all that much. As Modena says the margin is at the distributor end not at the retail end. The tyre market was/is all about unit sales more so than GP dollars, with generous rebates based solely on the number of units flogged-hope this helps explain the situation. The margin is skinny which explains why tyre retailers now try & flog you an ' insurance/road warranty policy for $x 's-its solely to add to the bottom line as in reality the number of claims they they have to payout on is very very low !
Rog
