Learn about actual and potential costs
How much should I pay for Automobile & Light Truck Tires?
What is the average price of Automobile & Light Truck Tires?
This procurement report includes pricing information to help you purchase Automobile & Light Truck Tires. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.
Has the price of Automobile & Light Truck Tires been rising or falling?
Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.
I’m not ready to purchase Automobile & Light Truck Tires yet. Will I pay more if I wait too long?
We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.
What other costs are associated with purchasing Automobile & Light Truck Tires?
Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Automobile & Light Truck Tires with a reduced risk of unexpected costs.
See how we display average pricing information, trends and market data.
Find the vendor to meet your needs
Where can I purchase ?
The automobile and light truck tire market is moderately concentrated, with a small number of companies having dominated the market for decades. The top four suppliers operate dozens of subsidiaries and distinct brand names, and together they account for between 30.0% and 50.0% of market revenue in 2021. Overall, there... Subscribe to learn more.
Questions to ask potential suppliers
How can I gain leverage during negotiations?
Experience and Expertise
How long have you provided these products to your longest-tenured client?
What qualifications does your staff have and what measures do you take to keep those qualifications up to date?
What industry do you most commonly supply this product for?
To what extent will ordering multiple products from your firm allow me to save on costs?
What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?
Supply Chain Risk
Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?
Has the availability of raw materials tightened due to the coronavirus outbreak?
Over the past three years, what percentage of your revenue has been dedicated to labor?
How have fluctuations in input prices affected the prices of your products during the past three years?
How do you mitigate sudden price increases in raw materials?
When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?
How, if at all, has your supply chain been affected by import tariffs levied in 2018?
How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?
How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?
What ongoing training procedures do you provide for your staff?
Have you ever been found to be noncompliant with regulatory frameworks?
Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?
What systems do you have in place to ensure accurate order fulfillment?
How many steps are necessary to fulfill an order?
Do you employ electronic order tracking?
How do you deal with incorrect shipments? How quickly have you responded in the past to similar situations?
Are you in compliance with all NHTSA and DOT regulations?
Are you a member of any industry associations?
When was the last time a change in regulations had an effect on your business? What was the effect?
Have you ever had to change any aspect of your business to comply with regulations?
Supply Chain Risk
Are you vertically integrated with any of your suppliers or downstream distributors?
How do you deal with changing input prices? More specifically, how are you handling the plummeting price of crude oil amidst the COVID-19 pandemic?
How long have you been buying from your current rubber and steel suppliers? When was the last time you switched suppliers? Where are your suppliers located? Is your supplier base diversified by region?
Can you offer protection against input costs spikes or will you increase tire prices if input costs increase?
What percentage of your revenue is dedicated to rubber costs? What percentage is dedicated to other inputs such as steel and synthetic fibers?
Who are your immediate competitors?
Do you match your competitors' prices?
How have you stayed competitive in the past? Can you give an example of a change you have made in order to stay ahead of your competition?
How large is your inventory in relation to your competitors'?
What shipping supplier do you use? Have you had issues with them in the past?
Do you employ dedicated shipping personnel?
Do you offer expedited shipping if needed? How much would that cost?
Do you allow for items to be picked up rather than shipped?
Do you expect any delays in shipping as a result of the COVID-19 pandemic?
What kind of warranty comes with your tires? Does the manufacturer provide the warranty or is it an aftermarket warranty?
What are the terms and conditions of the warranty? Does the warranty require paperwork to redeem?
What can void the warranty?
Do the tires come with a manufacturer's special warranty or trial period?
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Key elements for every RFP
What should my RFP include?
Buyers should specify the total budget for the tires.
Vendors should include a cost schedule for their tires, as well as any other costs for which buyers are responsible (e.g. shipping, disposal fees).
Buyers should evaluate the extent to which the tires meet their specifications.
Buyers should evaluate vendors based on their costs, including shipping.
Buyers should evaluate the useful life of the tires.
Buyers should ascertain the warranty provided for the tires.
For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.
Buyers should include the date when proposals are due and any other relevant dates (e.g. interviews, inspections) prior to the contract award.
Buyers should include the date by which they must receive the tires.
Evaluate major factors to mitigate risk
How risky is the supply chain?
Suppliers in the automobile and light truck tire market face a moderate level of supply chain risk. Changes in the price of rubber present a considerable risk for tire manufacturers. Because the vast majority of natural rubber is produced in a small region of Southeast Asia, unfavorable weather or agricultural... Subscribe to learn more.