Camouflaged Tire Pricing

Sept. 11, 2014
We are always looking for the best pricing on all parts, tires and supplies that account for approximately 50% of vehicle cost. The items most often put out for bid or prices hammered are those that make up the most expensive part of vehicle CPM (cost per mile). So in the last few years’ rubber, tire pricing, went thru the roof, and many of my counterparts complained about the escalating costs of tires. As pricing escalated, the industry started looking for alternatives on and off shore. Many of us found aggressive priced alternatives that fit the needs. Now that a different position has taken place and all the rubber trees seem to have doubled in size, pricing is becoming more attractive for those brands that raised pricing at record rates. Now they want the business again.
So my question is why don't the quotes include FET in the price. We can't buy the tires without FET. We can't go over a state line and buy the tires without FET. So why camouflage the real  price then whisper “plus FET”, or have it show up on an invoice, or worse let us assume we got a fair price then the FET surprises us because we also assumed it was in that price? 
About the Author

Darry Stuart | President

Darry Stuart has more than 45 years of experience in the transportation industry. As President/ CEO of DWS Fleet Management Services, he has been providing “Limited Time Executive" services in transportation and fleet equipment management to a variety of companies.

An ASE-certified master technician, Stuart began his career on the shop floor before moving on to fleet management executive positions at Perdue Chicken, BFI (Browning-Ferris Industries), United Truck Leasing, the  Keen  Companies, and Cumberland Farms/Gulf Oil.

For 35 years, Stuart has been an active member of the Technology & Maintenance Council (TMC) of the American Trucking Assns., serving as the group’s general chairman from 2007-2008. He is the recipient of numerous industry awards, including TMC's Silver Spark Plug, which is given in recognition of an individual's outstanding contributions to the cause of excellence in heavy-duty vehicle maintenance management. He has been cited as an industry expert or authored over  250 articles on equipment and fleet management topics.

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