El Paso herald. (El Paso, Tex.) 1901-1931, 1915-02-20
SECRETS0F TIRE manufacturers
ARE Barred IN PRICE CUTTING WAR
One Firm Makes Bold Explanation of Chow Tire Users
Have Been Held Up; Manufacturers Appear to Be
Growing Somewhat Desperate Over Situation; Price
Lists Padded So Larger Discounts Can Be Offered.

~ UR1NG the recent cut in the prices
of tires, som of the manufac-
turers have grown rather des-
pcrate and have exposed a number of
trade secrets" that are of much in
terest to the users or tires. One big
concern takes up 1our columns in
newspape- to tell how the manufac-
turers nave been cooperating with the
dealers to bunco the public. Thisiman-
ufacturer says he has quit the .lrac-
tice Ills statement is mighty inter-
rsung reading to the user of tires.
Here it is, the name of the maniac
turer omitted:
Tire retailers stores are the logical
outlet for tires.
Without the convenience and facility
which tire retailers stores afford the
public, increase in tire sales must be
hampered, and made unsatisfactory to
both manufacturer and consumer.
Therefore we always have, and al
ways viii, do our best to foster the
best interests of tire retailers.
That is why we now tell the public
that it is not the tire retailers who
are chiefly responsible, or chiefly TO
blame, for the seemingly. extortiOnate
profits quoted on tires generally at
price list" figures.
The Public |Skinned.'
The retailer is supplied with the
printed price lists, by each manufac-
uurer
The public therefore assumes that
these price lists are the makers bona
flde valuation, to consumers, OF the
tires they cover.
the public assumes that practically
all reputable tire manufacturers base
the wholesale price of their tires upon
what it costs to make them, and then
print the retail price at a fair profit
or that, for the retailer-at a figure
for which the tire will, in their iudg-
ment, render value received to the
consumer.
This conception covers what ought
to exist but, too generally, does not
exist in the ire manufacturing field
How They Work 1t.
A large number of tire manufac-
turers purposely put retail figures on
their price lists that retailers are not
expected to obtain for the product
there listed.
These padded price lists are printed
up. so the dealer can offer a larger
discount off the price list than II
the tires had been fairly priced at the
beginning.
This is an attempt to trade on the
bargain hunting" spirit-lnstead OF
on a value basis.
So many tire manufacturers adopted
the padded price list system Of selling
tires to retailers ION the claim that
retailers could sell more tires by offer
ing large discounts off price lists that
practically all other price lists became
infected, too.
All Dealers Did It.
Responsible tire manufacturers IN
sidiously contracted the habit Of
pricing up their tires, so the dealer
would still have a profit after meet
ing the discounts of the original DIS
count specially manufacturers.
Now the tire retailer. especially IN
large centers, having established the
custom of disCoUnting padded price
lists thinks the public expects it OF
him to discount other tire price lists
as we'll
He has thus placel himself in such
a false position toward his customers
that he cannot do justice to the best
Cnondiscount) tires and, because MS
customers being supplied through other
sources than that of the legitimate