Big news as giant tire retailer Discount Tire just acquired giant tire retailer Tire Rack.
But what about all of that SCCA support?
The SCCA’s Heyward Wagner shared this on the SCCA Time Trials Nationals Facebook group:
This is very exciting news for SCCA’s longest standing partner- We got the “head’s up” call a bit ago. Tire Rack brand will …
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Great press release, but how long will that arrangement last? In how many of these "takeovers" in the past, has the company "taken over" thrived?
I wonder how this is going to affect the development of the Tire Rack ASAP mobile installation service.
My tires just got more expensive.
For 20 years, I bought from Tire Rack exclusively. Then they built a warehouse in my state and, subsequently, we had to start paying sales tax on the tires. So I switched to Discount Tire, exclusively. Now it looks like they own a warehouse in my state.
In reply to Woody (Forum Supportum) :
Me too. I've picked up several sets from Windsor Locks but recently have ordered tires/wheels from DTD.
Both great organizations, I hope that TR continues to support SCCA and DTD stays with NASCAR.
I've had good experiences with both vendors but Discount Tire's site totally sucks compared to Tire Rack's, and their wheel/tire fitment calculator was making some bizarre errors when I was shopping for my NC. They lost a sale on a $1200 set of wheels because the site literally would not let me order them.
Hopefully this acquisition introduces good synergies instead of bringing out the worst aspects of each company.
I have no experience with Discount Tire but I've always been happy with The Tire Rack. I hope that doesn't change.
I was always a Tire Rack person.
Not sure how I feel about this.
I gotta say: the term "omnichannel", or the number of times it was used in the above, doesn't fill me with the "feel goods"
Woody (Forum Supportum) said:
My tires just got more expensive.
For 20 years, I bought from Tire Rack exclusively. Then they built a warehouse in my state and, subsequently, we had to start paying sales tax on the tires. So I switched to Discount Tire, exclusively. Now it looks like they own a warehouse in my state.
Uh, we started having to pay sales tax on all online purchases based on where it was being delivered last year...
In reply to sleepyhead the buffalo :
"omnichannel"="all your base are belong to us"
My take as someone not at all involved in the industry:
I've seen TR employees on other forums saying they're happy about it, or at least not sad/concerned/worried/looking for other employment. TR's (now former I guess) owners will still be involved and the TR CEO will be on the DT board. All motorsports ties (and other support deals) are staying. Functionally it seems like nothing is really going to change.
As for pricing, and this is where the "not in the industry" part comes in, I don't really think anything will change. From what I've seen tire prices are set by the manufacturer, not the retailers, and there's still a ton of competition at the manufacturer level, even if there's only one place you can purchase any of them from. Any major brand tire I've looked at has been the same price on DT and TR within a few bucks (even closer since TR went to free shipping), and the couple of times I've looked also the same price as direct from the manufacturer (specifically goodyear). TR's value add is free road hazard protection and good customer service, DT's is selling super cheap crap and their semi-frequent flash sales. I suppose it's possible those get weakened over time (though I kind of doubt it since there are still some other competitors) but I can't imagine the actual tire prices are going to change any, because they're not really in control of that.
Hmmm. I feel a bit concerned that TR will go downhill. I hope I'm wrong.
I see absolutely no potential benefit for anyone buying tires here. And plenty of potential future downsides. Both companies do essentially the exact same thing (sell tires & wheels), so this is basically reducing competition and choice, no matter how they spin it.
15f80
New Reader
12/4/21 11:26 a.m.
Reducing competition is bad. I hope they don't change the website and keep doing the tire reviews. I have been recommending TireRack.com to people as one of the best sites for researching tires online for at least 14 years.
I don't know for sure how long it's been but I think I have been buying from Tire Rack for almost 40 years. It might take me a week to find the receipt, assuming I still have it.
So tires are commodity. They don't really have a fast expiration point but there is one and they require certain parameters regarding care and storage. As with any commodity the buying power and the quality of your distribution and logistics is what matters pertaining to price more than true competition within the marketplace.
Where pricing as it relates to competition will come into play is DT/TR will now be able to absolutely drown out and bury every regional distributor, resulting in a significant decrease in competition at that level within the next 24-36 months. When that occurs they will become the go-to default supplier at the wholesale level for shops for OE dealership networks who will likely be leasing DT/TR warehouse space to house tires that are owned by the OE distribution chain.
The biggest thing that the end consumer will see and notice, is that NTB, Merchants, Goodyear and Firestone shops Will not be able to compete price wise within the market for tires when compared to dealerships and independent shops, as their distribution networks, NTW I'm looking at you, will not be able to compete at a competitive price point. They've always been at the very fringe of competitive with regards to maintaining profit margin anyway. Losing those outlets will be a death of the poor business model and everyone will benefit.
But that is not even why DT/TR or making the move, it is just a repercussion of it. Costco And their distribution network and strategy and abilities to hold profit margin and move volume is the reason that the move is being made. They need to maintain an improve their competitiveness within the market against Costco, who does it right. It's not that Costco is a bad evil entity It's just that they have buying power they have systems there are efficient and they execute to plan. DT/TR has been working on developing a remote install program that matches Costco's in store program with regards to price point for tires installed for a little more than 2 years now. I suspect that economies of scale in the two brands effectively joining together under one umbrella is needed to make it happen.
I've been a wholesale Tire Rack distributor since 1986. I have always had a good relationship with them & have always had good results.
On the Discount Tire side, I have had a few utterly terrible transactions with them. Mostly my local Discount Tire store so I hope those problems were based on bad employee's there.
Unsure if this will be a good thing as competition promotes better business practices. Now that they are "one", I'm also not sure if this makes me feel "warm & fuzzy"...
I've had good experiences with both companies.
Tire Rack's test reports are the most valuable pieces of information in the entire industry, with the possible exception of GRM's actual tire tests. I hope DT lets them keep doing that.
I would have liked it better if TR purchased DT. Can we have a do over or TR 2.0?
Shadeux said:
In reply to sleepyhead the buffalo :
"omnichannel"="all your base are belong to us"
someone set us up the bomb
pointofdeparture said:
I've had good experiences with both vendors but Discount Tire's site totally sucks compared to Tire Rack's, and their wheel/tire fitment calculator was making some bizarre errors when I was shopping for my NC. They lost a sale on a $1200 set of wheels because the site literally would not let me order them.
Weird.
I have had great experiences with both vendors. I'd say 95% of TR's site is better than DTD, but DTD will let you search by wheel size, which Tire Rack has never allowed and has been a gripe for many people.
stuart in mn said:
I have no experience with Discount Tire but I've always been happy with The Tire Rack. I hope that doesn't change.
I have used both. Lately discount tire because they swap tires for me winter to summer and summer back to winter if I buy them from them.
I use TR wholesale daily a work. They better not Berkley this up.