Selling the Value of Quality UHP Replacement Tires - Tire Review Magazine

Selling the Value of Quality UHP Replacement Tires

Many tire dealers say the biggest challenge in selling UHP tires is to convince customers to purchase high-quality, high-cost replacement tires. Take the time to explain to customers just how much effort - and expense - goes into developing these tires to help get them on board.

With ultra-high performance OE tires surpassing $300, $400 or even $500 each, how do you keep ’em on OE once they’ve seen lower prices?

A good way to start is to ask the customer, "Do you like how your car rides, handles and performs?"
after receiving the oem's requests, designers at tire companies crunch the requirements through their computers.
If the answer is "Yes," respond with: "(Name of tire company) spent more than three-quarters of a million dollars developing that tire specifically for your car. Since the car company also spent a bunch during the process, the total can be well north of $1 million. That tire is instrumental in how your car handles and performs. You spent ($50,000, $80,000, $100,000) on this car. Why risk messing it up to save a few hundred dollars on cheap tires? Remember, it’s a decision you’ll have to live with for at least a couple of years."

Many tire dealers say the biggest challenge in selling UHP tires is to convince customers to purchase high-quality, high-cost replacement tires. This is especially true since the grippiest tires can be worn out by an assertive driver in 20,000 miles or less.

(I’ve personally worn out tires in less than a dozen miles, but I was drifting, doing smoky burnouts, and generally hooning around at the requirement of a magazine photographer. It was a tough job, but somebody had to do it. (By the way, “hooning” is a New Zealand word that translates roughly as “driving like a teenager with a fake ID and an empty high-school parking lot.”)

Perhaps if the customer understood the development process for an OE tire, he’d be less eager to switch to a bargain-basement replacement. (The $750,000 development cost also is true for mainstream tires on regular vehicles, but I don’t write a column about mainstream tires.)

Creating the Perfect Fit
Car manufacturers don’t just go to tiremakers’ websites, say, “Oh, this one looks pretty good,” and order a half million tires. De­signing a tire for a specific car is incredibly complex, but here’s a rough idea of how it works.

First, the car company’s marketing and engineering departments set benchmarks and goals. Many times, these requirements are in direct conflict with one another. An oversimplified example: Enhanced snow traction and soft ride come at the (partial) expense of reduced grip on dry and damp roads. How­ever, it’s only a slight exaggeration to say that car companies ask for a tire that makes their car handle like a Porsche and ride like a Lexus.

Often the tire is asked to correct, uh, lack of suspension or chassis refinement. It’s much cheaper for the car company to make the tire company fix some ride, handling or noise issue than it is to completely redesign the suspension or chassis (I’m thinking Ford Explor­ers and Firestone tires, circa 2000). Often, the OE tire fitment will work wonders, if not miracles.

But that low-cost replacement, which was likely not designed for a specific vehicle, may reveal the vehicle’s refinement problems – and that replacement tire will probably take the blame.

After receiving the car company’s requests, the designers at the tire companies crunch the requirements through their computers. Notice I said, “tire companies.” There are almost always at least two competing for the job, and often several are in the fray.
When creating a tire for OE fitment, tire designers create several prototypes that will be optimized to what the tire company thinks the car company really wants - and will be safe for drivers.
Almost always, the requested tire will fit into the basic description of one of a tire company’s existing models. Even so, the tire designer likely must have a new mold – sometimes two or more – built for this part­icular tire. Molds ain’t cheap. And there’s much wailing and gnashing of bean-counter teeth when a new one must be made.

Also, it’s not as if the designer can call down to the mold shop and say, “Make me a 225/55R18!”

The Tire & Rim Association allows every nominal tire size to be within a fairly generous window. So, the designer must choose where in that window to place the tire. A slightly taller, slightly wider tire will produce enhanced cornering grip, while earning the same nominal dimension as its cheaper-to-produce shorter, narrower brother. (Another reason not to switch from the OE fitment: Your replacement tire probably will be slightly different in actual measurements.)

Since I mentioned “cheaper to produce,” pardon this aside: Tire companies rarely make money selling tires to automakers. While it is better than in decades past, tiremakers still are heavily counting on the car buyer to choose their brand when it’s time for new rubber. For a tire company, it’s a toss-up as to which is more effective: Spending the money to get an original equipment fitment or using the same funds on consumer advertising and promotions. I don’t understand why tire companies battle to get OE fitments on car models that are more often leased than purchased, inexpensive cars that engender little tire brand loyalty, or others where the owner isn’t a likely bet to stick with the OE tire come replacement time. However, I’m sure there are many with MBAs who can tell me how the company makes up the per unit loss with increased volume.

Now, the tire designer gets to work on the internals of the tire. While outwardly identical, each of four or five prototypes will be optimized to what the tire company thinks the car company really wants. Where there are conflicting requirements, one prototype may, for instance, have a tread compound that gives up a little snow traction for enhanced dry and damp grip. Stiffer or softer sidewalls and belt packages will change ride, steering feel and, perhaps, even noise.

Once these prototypes are produced, testing begins. First, internal tests are conducted. One of the prototypes may, for whatever reason, be a flop. There are many tense and nervous people if two or more prototypes are off the mark.

Next, the remaining prototypes are submitted to the vehicle manufacturer. The design and test team from the tire company may discover that the car company didn’t really want what it asked for. Or perhaps the tire provokes a noise or comfort problem not noticed when the car company fitted 17-inchers instead of the now-requested 20s. Regardless, the tire designer often heads back to the drawing board, while the bean-counters and sales staff chew their fingernails.

The testing is intensive and VERY expensive. Twenty or more subjective and objective tests may be performed on the prototypes. Tests will be conducted at the tire company’s facility, the car company’s test track, and special locations, such as snow-test courses or Los Angeles or Detroit freeways near the car company’s headquarters.

Sooner or later, everybody’s happy. Or at least placated. The chosen tire makes the vehicle ride, handle and otherwise perform in a manner that pleases the OEM customer.

Bottom Line
For ultra-high performance tires, the re­placement market customer will be at your door seeking a cheaper tire within 20,000 to 30,000 miles. (A Porsche dealer once complained to me about the short tread life the OE tire. “The tire company could make a 100,000-mile tire for your cars,” I responded. “Your customers – at least those who didn’t crash leaving the dealership – would hate your cars. And Crown Vic-driving, blue-haired ladies would complain about how Porsche drivers were slowing up traffic.”)

If the customer chooses the low-cost option, that replacement tire will not perform identically to the thoroughly tested and developed ori­ginal equipment tire. The customer may or may not notice differences. He may or may not care about the differences. But rest assured, the differences are there.

If you like how your car rides, handles and performs, why risk messing it up? The customer wouldn’t try to run kerosene in his high-performance engine to save a few cents per gallon, the way old farmers did back in the day. Low-cost replace­ment tires might have similar performance results.

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