News You Can Use

RTA NEWS YOU CAN USE
October 14, 2015

OUR GOOD FRIEND HARRY PRICE OF RTA MEMBER BESTREADS SENT THE EMAIL SHOWN BELOW, AND SINCE WE FOUND IT EXTREMELY INTERESTING, WE DECIDED TO SHARE IT WITH YOU. PLEASE UNDERSTAND THAT WE ARE NOT ENDORSING HARRY'S SUGGESTION, NOR ARE WE NOT ENDORSING IT. RATHER, WE ARE PRESENTING IT FOR YOUR INFORMATION ONLY. IF YOU WISH TO COMMENT AND WOULD LIKE US TO PRINT YOUR COMMENT IN A FUTURE RTA NEWS YOU CAN USE MEMO WE WILL BE HAPPY TO DO SO. IF YOU PREFER TO HAVE YOUR COMMENT POSTED ANONYMOUSLY, JUST LET US KNOW AND WE WILL HONOR YOUR REQUEST.

Harvey,
As you know, there has been a robust debate about Chinese tires and their effect on retreading.
So far the debate has been China bashing (low quality) and "the gov't should do something!" and wishful thinking; ("tire prices will have to go up sometime")
I believe that the RTA can be pro active, since the low cost tires are not going to go away.

I suggest a two part approach;

1)- Recognize that low cost new tires are cannibalizing cap & casing sales.
-Casing prices must come down.
I get calls every day from my wholesale dealer customers wanting me to buy casings.
It seems that every tire dealer in my area has a warehouse full of truck tire casings.
When I discuss price, the first thing out of their mouth is, "I allowed $45- $60. on the casing when I sold them a new tire!" That practice needs to stop today!
When you sell a new tire, if you don't have a home for the trade casing, allow little or nothing for it!
When trade in prices fall and casing cost falls, cap and casing sales will pick up.

2)- Not all Chinese casings are junk, in fact many of them are retreadable.
Let's recognize the good casings and spread the word.
Remember when the Retreaders Journal ran an annual "Most Retreadable Casing" contest?
The RTA can do something similar. This would be a two step process:

Step one would be for RTA members to submit the names of Chinese casings that they have had good success retreading.
These names would  be put on a ballot and published on the RTA message board.
Step two would be for RTA members to rank the retreadability of the casings
Tabulate the results for the world to see.

The sellers of the quality casings will be able to use this ranking to promote their product.
This is a positive approach, rewarding the good manufacturers.

I remember when Bandag was independent of Bridgestone.
When you asked Bandag people, "What is the most retreadable casing?", they would reply with a smile, "We retread all of them!".
That is the world that we live in.
We need to be able to retread all of the good casings. Just hoping that things will get better is not an option.

Harry Price
BesTreads
harry@bestreadsinc.com

THANKS, HARRY!

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THOUGHT FOR THE DAY

"Creative people do not see things merely for what they are.
They see them for what they can be."
~ Julie Israel