First, I have always been told that the contingency tires come from the advertising budget and don't effect the price of the tires? That doesn't make a lot of sense to me either, but what I have been told numerous times?
Second, the tires are too expensive! They were far less when we started, I believe $138? Some one can correct me if wrong. The reasoning i get back is well look how much you would be paying if it was the R7 and not the sm7... I really don't care about that and it is a weak argument. There should have been clauses in the contract to hold the price stable. If I were king for a day, our next contract would be a $125 tire bc I believe we have the buying power to support it.
IMO, there is no reason the tires are not still under $150 each and a contingency in place. I do not believe the price would discount $30 plus a tire with no contingency, if it did. I would support that as it would average out pretty close for me personally and be better for the class. I believe it would be more like $8 a tire less. If that is the case, I prefer the contingency. Jim
I’m very familiar with the shell games that separate pots of money in corporations. Bottom line, literally, not our problem. They want our business or they don’t. If they do they will make it work.
I agree that $30 sounds way high, but even if it’s only $8 that’s per tire, every tire, for everyone. Of course you would stick with status quo, it’s clearly in your favor, it just isn’t fair.
I can all but guarantee you that the contract includes price increase limits, and have little doubt that they have been maxed out each year. I haven’t compared to the inflation rate but I’d wager a tire that the increases are higher. That is probably justified by the big “discount” relative to the equivalent non SM which like most Hoosier road race tires are obscenely overpriced compared to some of their other tires and tires from other manufacturers. They can get that in a free market when their tires outperform the competition, and pay contingencies as part of their marketing, but they have no competition for our business and their faster tires don’t do us any good.