What are appropriate pricing strategies for tires?

Answer 1

This question refers to the sales pricing and tiering of the automotive wheel and tire industries. The common pricing strategy employed regards aggregating tire lines by level (economy, middle, and premium/oem) and creating their profit margins based on them. Middle level house brands, which are major tire companies producing custom named tires for major retailers may have the highest profit margins and are thus pushed and heavily marketed as their price point strategy. OEM and premium tires may have the smallest or largest price point depending on the merchant. The budget and economy tires may have the lowest quality, but they are also sold at minimum price points.