On 4/1/2017 10:24 PM, Jonas Schneider wrote:
On Sat, 1 Apr 2017 20:58:20 -0400, Ed Pawlowski wrote:

On a typical ultra high performance tire which is, say, $75, that means
that 1/3 the cost is pure profit online.


What is pure profit? Are you talking the difference between the price
they pay and the price they sell the tire? That is far from pure.
OTOH, if you did a cost analysis of the labor and overhead of running
the business I may agree.

Your question is a fair question, since my original assumption was that
tires are a commodity, where it's not the general nature of a commodity to
sell much above it's cost.

Let's go back to that number to see what it was saying exactly.
http://www.moderntiredealer.com/uplo...issue-2015.pdf

That PDF says that there are 200 million replacement tires sold each year,
where, on page 52 of that document, we find the exact words:
"According to a recent Modern Tire Dealer survey of independent
retail and wholesale tire dealers, the average profit margin
on a passenger tire is 26.4%. For a light truck tire it falls to 24%.
The average wholesale passenger tire sales margin is 12.4%."


That is a pretty small margin, Far from pure profit. You have to take
out rent, labor, utilities, insurance, supplies for office, shipping,
maintenance,taxes.