Magazine for the professional tire industry
Issue link: https://mtd.epubxp.com/i/449261
MTD January 2015 T here are more than 550 consumer tire sizes available in the afermarket, according to the Tire & Rim Associa- tion, too many to seriously consider stocking. If you were building an inventory from scratch, however, stocking the two most popular sizes would be a good place to start. Te top two replacement passenger tire sizes in 2014 were hardly surprises: 205/55R16 and 215/60R16. Other top sizes (P-metric and metric combined) included the following: 195/65R15 225/50R17 235/70R16 225/60R16 215/70R15 215/55R17 205/65R15 265/70R17 215/65R16 195/60R15 235/70R16 225/65R17 One of the sizes to look for in the near future is the 235/50R18, which has been OE on the hot-selling Ford Escape. Te top-selling P-metric light truck tire sizes were 265/70R17, 235/75R15, 235/70R16 and 245/65R17. LT245/75R16 has been the number one replacement LT size for the last six years; it also was the top OE LT size from 1993-2010. (See Chart 21 for the most popular OE LT sizes from 2011-2013). Major brand versus low-cost radial pricing Te average advertised price for the 215/55R17 tire is $138.27, broken down as follows: $144.53 for a major brand, and $98.24 for a low-cost radial (see Chart 24 on page 53 for benchmark pricing). Overall, the price diferential between the two is nearly 50%. Advertised prices for higher cost major brands and low-cost radial LT tires are closer. Te percentage diference ranges from 15.1% for the LT245/75R17 to 24.9% for the LT245/75R16. Te split is similar when speed rating is taken into account, at least for the H- and V-rated tires. Tire Intelligence LLC, which tracks tire pricing on a daily basis in seven countries and has a database of 540,000 prices, broke down the domestic 215/55R17 price structure from T- through V-rated tires. Advertised pricing breakdown, 215/55R17 Speed Major LCR Diference Overall V-rated $148.26 $97.33 52.3% $140.97 H-rated $147.10 $102.16 44.0% $143.95 T-rated $138.21 $123.96 11.5% $137.08 According to a recent Modern Tire Dealer survey of indepen- dent retail and wholesale tire dealers, the average proft margin on a passenger tire is 26.4%. For a light truck tire it falls to 24%. Te average wholesale passenger tire sales margin is 12.4%. Car dealerships vs. quick lubes Quick lubes accounted for 34% of the installed lubricant business, based on volume, in 2002. According to Kline & Co. Inc. research, full synthetic motor oil accounted for an average of 12% of all oil used at quick lubes, while synthetic T Facts section: Tire sizing and pricing Start with 205/55R16 Ten worry about the the other 500-plus sizes Chart 22 TOP U.S. PASSENGER TIRE SIZES, 2013 Replacement (Top 10 = 22.5%) 1. 205/55R16 6. 195/65R15 2. 215/60R16 7. P215/60R16 3. 225/60R16 8. 195/60R15 4. P235/75R15 9. 215/65R16 5. P265/70R17 10. P225/60R16 Chart 23 TOP U.S. LIGHT TRUCK TIRE SIZES, 2013 Replacement (Top 10 = 68.9%) 1. LT245/75R16 6. LT285/75R16 2. LT265/75R16 7. LT245/75R17 3. LT265/70R17 8. 31x10.50R15 4. LT225/75R16 9. LT215/85R16 5. LT235/85R16 10. LT285/70R17 Source for Charts 21-23: Rubber Manufacturers Association Chart 21 MOST POPULAR DOMESTIC OE PASSENGER AND LT TIRE SIZES 2013 OE P-metric/metric Size % of total P215/55R17 6.1% P265/70R17 4.0% P275/55R20 3.2% P275/65R18 3.1% P215/60R16 3.1% 2012 OE P-metric/metric Size % of total P215/55R17 6.1% P265/70R17 4.4% P215/60R16 3.8% P275/65R18 3.4% P205/65R16 3.1% 2011 OE P-metric/metric Size % of total P215/60R16 9.1% P265/70R17 5.1% P215/55R17 4.2% P235/70R16 3.2% P275/65R18 3.0% 2013 OE light truck (LT) Size % of total LT245/75R17 21.9% LT245/75R16 14.0% LT225/75R16 11.3% LT265/70R17 8.9% LT265/75R18 8.1% 2012 OE light truck (LT) Size % of total LT245/75R17 22.1% LT245/75R16 14.7% LT225/75R16 11.1% LT265/70R18 8.1% LT265/70R17 7.7% 2011 OE light truck (LT) Size % of total LT245/75R17 22.3% LT245/75R16 15.6% LT225/75R16 11.9% LT265/70R17 7.8% LT265/70R18 7.0% 52