dealer prices ??

[GreensvilleJay]

OK, I may need a new left tire for my BX23S( plug should work but...) so I ask for a price.
Smiling Sam says $500 for the tire.
me: yeesh..probably best to get ,ugh, two......
She says I can sell you tire on the rim for $350.
me: sorry ,I'm hard of hearing, did you say $350 ?
She says 'yes'.

So... can anyone explain WHY I can buy tire on rim for HALF the price of just the tire ????

 

[TheOldHokie]

So... can anyone explain WHY I can buy tire on rim for HALF the price of just the tire ????

Because thats how they want to sell them.

Personslly I would be talking to a tire dealer.

 

[jyoutz]

Go to a shop that sells heavy truck and equipment tires. They will be cheaper and also be able to order most anything you want.

 

[Daferris]

The difference is that the tire only is thru parts. The tire and rim is thru the sales dept (AKA the way the new tractors are sold with the tires of choice). The markup to put it politely somewhat different between the two sales channels.

 

[Bearcatrp]

Went through this last spring. Put a hole in front tire. Called dealer. Was told tire alone was more than tire with rim. That’s a head scratcher but did buy rim and tire. Now have a fixed spare for the next time I put a hole in my front tire.

 

[GreensvilleJay]

yeah, it's still crazy.... I can SAVE $150 AND not have to dismount/mount the new tire onto my 5 year old rim ???
I'm still trying to figure out Korporate Kubota's logic selling the same item for less , 'and ,wait ,there's more, we'll even throw in a brand new rim',and we'll even mount the tire on the rim , for free' !

 

[Donystoy]

A couple of years ago I purchased replacement Carlyle front tires for my original b7200 from a Tirecraft dealer. Around $100 each at the time.

 

[SDT]

yeah, it's still crazy.... I can SAVE $150 AND not have to dismount/mount the new tire onto my 5 year old rim ???
I'm still trying to figure out Korporate Kubota's logic selling the same item for less , 'and ,wait ,there's more, we'll even throw in a brand new rim',and we'll even mount the tire on the rim , for free' !

It's not Kubota but dealer policy.

Kubota does not sell tires but does sell tire/wheel assemblies and dealers have many/most sizes in stock.

If you insist on tire alone, parts dept will buy tire, most likely from local tire dealer, send truck to get it, mark up tire, and charge you for everything including pick-up. Dealer does not want to be bothered and would rather sell you assembly from stock.

 

[ehenry]

If the hole isnt too big put a tube in it. Way cheaper than $350.

Plug cheaper than tube if it will seal.

 

[GreensvilleJay]

The tire just needed to be plugged, I'm just trying to figure out Kubota's pricing policy.

 

[lugbolt]

if you buy them through wholegoods they're less expensive. Those are rim/tire already mounted. Tire alone through parts is expensive, as you've found out.

I think the reasoning is due to them sellin parts at a different overall markup than wholegoods. I may be wrong.

 

[DustyRusty]

I doubt that Kubota mounts tires on rims at the assembly plant, but instead has the rims delivered to the tire plant where they are mounted, and then the completed unit is put on a truck and delivered to the Kubota factory and packaged with the machine when it is delivered to the dealer. The reason that the dealership can buy the complete assembly for less is that Kubota wants to keep the volume up for better purchasing ability with both the rim and tire manufacturers. Dealers need to replace tires on tractors as they get damaged, and the last thing that the service department wants is to become a tire shop.

 

[whitetiger]

Kubota does not sell tires but does sell tire/wheel assemblies and dealers have many/most sizes in stock.

If you insist on tire alone, parts dept will buy tire, most likely from local tire dealer, send truck to get it, mark up tire, and charge you for everything including pick-up.

Kubota sells tires, we order tires just like ordering a cabin door. The local Kubota warehouse in Edgerton KS has thousands of new unmounted tires in stock which are usually cheaper to the dealer than if purchased locally.

The mounted tire being cheaper than just a tire depends on several things. At times it is cheaper to buy just a tire.
I priced new worksite tires for my RTV on Thursday, the mounted tire and 5-bolt wheel are $40.00 more than a bare tire.

 

[ZTMAN]

Just went through the same experience with a front tire on a BX. Shale took its toll over six years. Called Messicks and the front tire and rim was right at $100 with tax.

I did not realize the R4s were directional until the Messicks rep asked me what side I needed.

 

[07wingnut]

When I purchased a used BX23 some years ago, it needed new tires all around. Purchasing a new set with rims thru the whole goods department was no more than just new tires. Now the old rims and tires have on winter chains and in the fall I just swap all the rims. It goes faster than mounting chains.

 

[GreensvilleJay]

OK, this is still bugging me....

given these good numbers...
new tire $500, bare tire,tad more but nice number
tire and rim $350,same tire on rim, full of air
shop labour $100/hr,probably more but easy number for me
r/r new tire 1hr, seems about right
r/r tire/rim 1/4hr, I did it in less..

Jay's business model..

client needs new tire,installed ....quote $500 + 1hr time

shop installs new tire and rim
MY profit is (500-350) + (100-25) = 150+75= $225 AND 45 minutes shop time

Inform client, 'we installed new rim free of charge' you get 'BONUS points'
So please, tell me what's wrong with my 'model' ?

BTW local dealer does a LOT of tire installs and repairs.

 

[GeoHorn]

Tires on rims are considered inventory for whoever is storing them on the books.
Inventory is valuable.
The Tax Man cometh by the end of January.

 

[GreensvilleJay]

NO, inventory is 'bad', counts as an 'asset'... black numbers in ledger, reduces PROFIT , increase tax burden.

 

[NorthwoodsLife]

It's actually simply profit margin. Kubota probably ships complete sets of mounted tires for various tractor models. Kubota probably buys tires in quantities of a thousand. Buy one tire, it's $350 each. Buy 500 and they are $125 each. K sells them to the dealers in sets, after adding their profit margin on what K paid.
Dealer buys one tire for you, unmounted... Dealer pays $350 only for the tire, then adds his standard markup. So it's $500. A mounted tire AND wheel from Kubota cost the dealer $245. Standard markup makes it $350. All my markup percentages and wholesale prices are guesses. But you get the idea.

Go to the local market and buy one can of chili. Its $3.99. Go to Costco and buy a 12 count case of the same chili, it's $18.00 for 12. OR $1.50 a can.

The dealer is not gouging you, or ripping you off. He's selling them by what he pays for them with dealer management markup. You are getting the bulk Costco price if you buy the tire and wheel, mounted. Because Kubota bought them in bulk and the savings gets passed on to the dealer. And to you, the consumer. You are not getting a bulk savings, if you just buy a tire.

 

[Butch]

Because thats how they want to sell them.

Personslly I would be talking to a tire dealer.

Check out Miller Tire.... they have been good to me and have quality stuff