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TireTutor's AI-powered tire pricing

 

At Tire Tutor, we lead the industry in programmatic tire pricing, and we're here to demystify how our system works to ensure you're always profitable and competitive without ever needing to guess or calculate margins manually.

Our goal is simple: to make sure that the price you show to the customer reflects the margins you want to maintain, without sacrificing your competitive edge.

How Tire Tutor Protects Your Margins

Our system tracks over 300,000 SKUs and updates the pricing on these products daily. This massive effort is powered by a sophisticated algorithm designed around your unique business rules.

1. Supplier Pricing and Markup Control

We understand that you source tires from a combination of national wholesalers and local suppliers, each with different cost structures. Our system lets you define specific markups for each supplier source:

  • Markup Type: You can mark up based on a percentage or a fixed dollar amount.

  • Supplier Specificity: Apply different rules to different suppliers—if one supplier provides faster delivery, you might choose a higher markup on those tires.

2. Intelligent Customer-Facing Price Selection

For any given tire (SKU), you decide how to present the price to the customer based on all available supplier costs. You have control over which price prevails:

  • Minimum Price: Show the lowest cost available from any of your suppliers (ideal for price-sensitive customers).

  • Maximum Price: Show the highest cost.

  • Median or Average Price: Show a price based on the central or average cost across your suppliers.

3. Built-In Competitor Guardrails

Being profitable is only half the battle—you must also be competitive. We bring local competitor data into the mix to ensure your final price is attractive:

  • Rule Example: You can instruct the system to ensure your final price is always $5 lower than a large competitor's price.

  • Automatic Adjustment: If the price determined by your supplier markup is still too high relative to your competitor rule, the system will automatically adjust the final price down to meet that competitive benchmark.

Layered Markups for Maximum Profit

The flexibility doesn't end with supplier and competitor logic. You can add additional markups based on market factors, ensuring your profit is optimized for every sale:

  • Brand Markup: Add a fixed dollar amount based on the tire brand (e.g., a $15 markup for a premium brand).

  • Rim Size Markup: Add a fixed dollar amount based on the size of the rim (e.g., a $10 markup for larger sizes that require more effort or specialized equipment).

The Final Price Calculation

Let's trace a single tire through the system:

  1. Base Cost: Our algorithm selects the minimum supplier price, which is $63.

  2. Competitor Check: The system verifies the $63 price is also $5 lower than your competitor.

  3. Brand Markup Added: Add the brand markup of $15.

  4. Rim Size Markup Added: Add the rim size markup of $10.

  5. Final Customer Price: The customer sees a final per-tire price of $88.

Tire Tutor's catalog is truly best-in-class because the final price factors in the live market rate and your desired margins based on customization at every level. You can be assured that you'll make money on every tire, and you'll never need to scramble with calculations while a customer waits at the counter. That’s the way a shop management system should be.