Recently, I was dismayed with the disparity in price of Island BMW compared with the Internet retailer, FortNine. My comparison was for the Michelin Pilot Road 5GT destined for my 2016 BMW R1200RT. At the time of writing, the costs from FortNine are front (120/70ZR17) – CA$205.99 and rear (180/55ZR17) – CA$265.99 equating to CA471.98 per set plus tax and including shipping. My initial quote from Island exceeded $700.
I wholeheartedly believe in supporting local business. Without this support, local businesses will decline and ultimately disappear. Not only do I value the local dealerships, but also see considerable value in the backup service they provide post-purchase. Dealing with a failed or incorrect product obtained from the Net can be a hassle, and often fail to achieve the desired resolution. I value Island’s advice, knowledge and encouragement.
Being competitive with the Internet has to be determined by profitability and availability. FortNine undoubtedly have considerable purchase power and leverage with the tyre manufacturers, whereas the volume of tyres purchased on the Island is relatively small. However, Island could also choose to purchase from FortNine, but what is their time, effort and cost of storage worth? I am of the opinion that a 10-20% markup over the Internet price is a reasonable cost of doing business locally, and am personally quite prepared to pay this premium. This, at 15% markup, would make the combined cost for my RT CA$542.78 plus tax and fitting.
Bill Wallace has kindly aggregated a bulk-tyre order for BMWRVI members in the past, but apparent lack of interest in 2019 meant this was not done in 2019. Most of us have some idea of their tyre usage per year – for me I expect to change once, and achieve around 15,000km on each set. I would be quite prepared to commit to an annual purchase if it meant tyres could be purchased at a bulk discount and stored ready for me at Island BMW.
How do other members feel about this? I’d like your comments and suggestions as they will add to the discussions I’m having with Island at present. I’m sure we can reach an acceptable local solution that maintains Island’s profitability and is financially acceptable to members.
Drop me a line at cd.drake.1@gmail.com.