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Anyone else thinking that we should be getting some relief from last year's spike in tire prices pretty soon? Oil has come down a whole bunch, which is a big part of production cost, and demand has to be weakening...when are we going to start seeing price cuts?

Yeah, I know, probably about as likely as monkeys flying out of my...

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In slow, out fast.
In fast, out backwards.

Marketing 101:  Prices are very "sticky" in the downward direction.

Unless the competition forces the prices down, don't hold your breath.

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Ted

2004 Z16/Z06 SS

TedDBere:

Marketing 101:  Prices are very "sticky" in the downward direction.

Unless the competition forces the prices down, don't hold your breath.

Marketing 201: when pricing goes against you, better to be first to cut, than last...he who depletes inventory first, wins

JK, I don't disagree with you, at all.

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In slow, out fast.
In fast, out backwards.

mwood:

Anyone else thinking that we should be getting some relief from last year's spike in tire prices pretty soon? Oil has come down a whole bunch, which is a big part of production cost, and demand has to be weakening...when are we going to start seeing price cuts?

Yeah, I know, probably about as likely as monkeys flying out of my...

You made a funny .

On a bit more serious note, I have been using (consuming!!!!) 18" Hoosiers on my A/S Sky and have seen very little change over the past two seasons. Kuhmos may be a different issue due to shipping and exchange rates. To answer your question - think "when hell freezes over". 

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Bob Buxbaum
Lee's Summit, Mo.

When pigs fly, hell freezes over, etc... 

Dave G.

talon95:

When pigs fly, hell freezes over, etc... 

Dave G.

Dave, don't tempt fate. We both live in tornado alley (you more than me). Flying pigs happen here in the midwest.

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Bob Buxbaum
Lee's Summit, Mo.

Most likely they just won't raise the prices for 2009, or very little anyway.  Gas prices are cheaper regarding towing to events, but many are hurting, losing their jobs etc.  So the tire budget could reduce attendance if people just don't have the funds to put fresh rubber on their cars for the National events.

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Gregory Lloyd
77 ASP
2003 AE Convertible (Z06)
2008 VR Z06 Corvette

Well...the primary reason tire prices went up last year was due to oil costs, as (evidently) 60% of the manufacturing cost of a tire is petroleum based. Given oil at $50/bbl, there's a ton of room for tire costs to come down without hurting margins. It's also pretty clear that, in a weakened economy, that tire budgets are going to be cut back...doesn't sound like a good environment for the tire manufacturers to hold the line on the historically high pricing we've seen over the last twelve months. In the DOT R area, I'll bet Team K cuts prices back to pre 2008 levels, at least. Team H will probably not respond, right away...do they ever?

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In slow, out fast.
In fast, out backwards.

Not going to happen. As has been said, the best we can hope for is probably no increase. That basically is a cut since the raise prices just about every year. Dave G.

Well you can't blame the man for dreaming.  Just a month or two ago I found an 8 year old Tire Rack receipt for a set of 315 Hoosier's and I paid $900 with shipping.  This year I paid $1400.  Maybe the strong US dollar will help with Kumho prices, which just might, (and it's a very week "might" at that) help Hoosier lower their prices.

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#57 ESP 1998 Camaro SS
MLS Motor Racing

Major_Lee_Slow:

Well you can't blame the man for dreaming.  Just a month or two ago I found an 8 year old Tire Rack receipt for a set of 315 Hoosier's and I paid $900 with shipping.  This year I paid $1400.  Maybe the strong US dollar will help with Kumho prices, which just might, (and it's a very week "might" at that) help Hoosier lower their prices.

Bar tender --- I'll have a double of what HE is having.

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Bob Buxbaum
Lee's Summit, Mo.

I auto-x on a shoestring budget.  I just keep a keen eye out for older batches/compounds to go on sale (Hankooks-bought a set of Z214's for $85 per tire last season-they were slightly skinnier than i wanted but were great for local events--and still plenty of meat left for the beginning of this season). And once or twice a week, I religiously plug in the size and brand of tire I need into an ebay search, and if I find an auction, use an ebay sniping service to place a ridiculously low bid for me.  After 3 or 4 tries I got lucky and got a set of brand new Kumho V710s (in the size I wanted) shipped to my door for $430. I also keep an eye out for road racer take offs and even some from other autocrossers that will let them go cheap.  Ive done really well in stretching my tire dollar. Ive got enough rubber stacked up in the garage to last me into 2010 possibly running two separate club's events.

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Dominic Stone #77 2005 Dodge SRT-4 ACR >:) -- G-Stock

Oregon Region Chief of Safety
myspace.com/vvt4me

snaponbob:

Major_Lee_Slow:

Well you can't blame the man for dreaming.  Just a month or two ago I found an 8 year old Tire Rack receipt for a set of 315 Hoosier's and I paid $900 with shipping.  This year I paid $1400.  Maybe the strong US dollar will help with Kumho prices, which just might, (and it's a very week "might" at that) help Hoosier lower their prices.

Bar tender --- I'll have a double of what HE is having.

This thread is just so entertaining!   Hey Bob, maybe GM will give us both brand new C6Z's to drive next year to go along with our cheap R tires! 

Dave G.

talon95:

snaponbob:

Major_Lee_Slow:

Well you can't blame the man for dreaming.  Just a month or two ago I found an 8 year old Tire Rack receipt for a set of 315 Hoosier's and I paid $900 with shipping.  This year I paid $1400.  Maybe the strong US dollar will help with Kumho prices, which just might, (and it's a very week "might" at that) help Hoosier lower their prices.

Bar tender --- I'll have a double of what HE is having.

This thread is just so entertaining!   Hey Bob, maybe GM will give us both brand new C6Z's to drive next year to go along with our cheap R tires! 

Dave G.

Let me see if I got this right ------------------

CHEAP + R-Comps = ????????????????????

??????????????????? = BARTENDER -- cut him off. He is hallucinating again.

Free C6's and cheap r-comps. Dude, you need to take this show on the road. Just make sure you book Solo events, because nobody else will understand the humor.

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Bob Buxbaum
Lee's Summit, Mo.

Tire manufactures may have panicked and hedged when they saw oil pointing toward 200 dollars.  If they did then they may still be buying most of their oil in the $100-120 range even though we see prices in the $40's.  So at this point in time their manufacturing costs may be just as high as they were before.  Though shipping and energy costs to produce the tires may be much lower.  They may not lower prices at all.  IMHO the best we can hope for is that they are hedging now at a lower price and that prices will not go up at all or will decrease slightly...

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Mathew Riley
2008 Mugen Civic Si #22 of 1000
42 TGS

Spotpkt:

Tire manufactures may have panicked and hedged when they saw oil pointing toward 200 dollars.  If they did then they may still be buying most of their oil in the $100-120 range even though we see prices in the $40's.  So at this point in time their manufacturing costs may be just as high as they were before.  Though shipping and energy costs to produce the tires may be much lower.  They may not lower prices at all.  IMHO the best we can hope for is that they are hedging now at a lower price and that prices will not go up at all or will decrease slightly...

I'm not sure they would have bought futures out on the speculative spike we saw this summer...but, yeah, they probably did lock down a portion of their forecasted need.

Anyhow, I'm calling for a 10% decrease in tire prices by next spring, on average...in other words, don't bogart that j, my friend

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In slow, out fast.
In fast, out backwards.

There you go,

https://www.hoosiertire.com/pricescr.pdf

talon95:

There you go,

https://www.hoosiertire.com/pricescr.pdf

Not much, but up they are.

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Bob Buxbaum
Lee's Summit, Mo.

I'm not giving up the dream...Kumho will start the price war!!!!

 

seriously, I would never expect Hoosier to drop prices, first...if it happens, it will be BFG or Kumho that gets the ball rolling...but, I'm not holding my breath, just wishin'...

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In slow, out fast.
In fast, out backwards.

The only way prices will fall is if demand falls, and that happens for a period of time.  I doubt it will happen long enough or deep enough to have an impact.  Although----personally, I went through 4 sets of A6s and one set of rains last year.  I am looking at cutting my purchases to just 3 sets in 2009.  If everyone did that, prices would drop.  If Kumho dropped prices, I'd probably get a set of those for the local season. 

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Jer
1993 MR2 #196 ES
2005 Lotus Elise (retired)
2002 diesel Ford Excursion 4X4 tow vehicle
1993 Miata (future LeMons car)
1987 Corolla Lemons car
1984 Citation Lemons car