Quote Originally Posted by Antiplastix View Post
"Low margin" ?? You ll find that the shops selling way under the prices of normal tyre shops are parallel importing their tyres by the container load and cutting out the local importer. Good luck if you have a warranty issue. The average shop buying from a recognised importer is lucky to make 20 % mark up. Not a lot when you consider wages, rent etc.
Not neccessarily, some are just good businessman & work on turnover & low margins.

I worked for one of the originators of the "wholesale tyres to the public" concept. You buy a bulk lot of legitimate imports off Dunlop AUS - say 400 tyres & you get a massive discount because the sales rep is chasing units to get his bonus that month. You then madly phone around the discount tyre stores which are regular customers down your way or up the coast or in the Western suburbs & try & flog off 300 of the tyres at a margin per tyre which still makes the tyres cheaper in that quantity than the Dunlop rep can sell them. Hopefully you sell them quick because your own storage area only has enough room left for 200-300 tyres & you've done 4 other deals for similar quantities with the other reps & they're earmarked for delivery over the next 10 days.

You then flog off the rest to your retail customers at a price that makes money & steals sales off the surrounding tyre places taht are trying to make triple the margin. You've got to have a busy store to do it & a reputation that keeps the forecourt busy & the phones ringing.