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July Graph

The graph above displays a couple of interesting points. For runflat tires, the H-rated product has the most expensive average price level, with average price descending to Y rated product. For standard tires, price ramps up from S-rated to H-rated as expected, but stays essentially flat through the V-rated and even dips a bit to W-rated before ramping back up to Y. There are two key reason for both these trends. 

Original equipment tires play a big role in what you see here. The H-rated category is dominated by OE in both standard and runflat fitments, and as these tires are fitted to late model German imports like BMW and Audi, the price is driven to a premium, especially in the runflat category. The second big factor is saturation. There are approximately 4X as many treads available in V-rated and W rated as there are in either H-rated or Y-rated. The older OE tires that populate the higher speed ratings and a wider range of aftermarket competitors lower the prices for both standard and runflat products. Will you take advantage of the high revenues by stocking new OE product, offer your customer a competitive value option or both?

The supporting data for this graph can be obtained in Tire Intelligence's Price Monitoring services. Contact us to see how we can help you create more insightful analysis and make more informed pricing and product decisions.