Tyre buying policies need urgent review
05/06/1998 in NEWS
The report estimates that replacement tyres should cost fleets between £7.50 and £9.50 per car per month, but said short term costs can fluctuate enormously due to the volatility of the tyre market. It attributes this to a combination of factors, including manufacturing over-capacity and over-supply, currency exchange rate fluctuations and fierce competition between tyre wholesalers and fast-fit companies.
'The factors creating price instability in the tyre market are likely to be with us for some time to come. This leads to the inevitable conclusion that you should continually test the market,' said the report. A mystery shop by David Openshaw Associates found the retail price of a popular premium brand tyre could differ by as much as 30% between leading fast-fit companies. The consultancy will continue to monitor retail prices on a regular basis.