What the Makers Say .
Page 50
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CIMULTANEOUSLY with the publica tion of the •Mcirtopolies Commission's Report last Friday. the Tyre Manufacturers' Conference issued a booklet on a number of aspects of the Pneumatic-tyre industry. Among the points made are the following :—. The T.M.C. have no power over 111C111hers. Any manufacturer can decline to discuss a subject or to declare his present method of trading.
Each manufacturer fixes his own retail prices and margins which,' in the motor trade. are collectively maintained by the
British Motor Trade Association. We consider that the individual manufaCtirret should have the•right to name one 'known and fair price' throughout.' the' country 10, each type of tyre he makes." After-sales service must he given and traders should he encouraged to hold an adequate' stock of the various sizes and types of tyres. 'There are 74 giant sizes and 15 types.] These things are done by providing the efficient trader with a discount sufficient to cover the cost of these services and a moderate profit.
Although all makes of tyre are sold at
"level prices " and all Prices change at the same time, each manufacturer is free to charge whatever he likes. He can, but veryrarelydoes, let a rival of comparable standing sell a similar type of tyre at a lower price. Before increasing his prices, a maker tells his competitors, but if they: are unwilling to follow suit, he does,nr4, in practice, do so. if he decides to decrease his prices, his competitors are bound fall into line and level prices result.
For .eyery, £.l which tyre manufacturers receive 'for tyres sold to the public, they make not more. than 7d. profit, after tax. Even smaller peofits are made on supplies to the Government. to the vehicle intim-fey, and public service vehicle operatOrs., British prices are among the lekvest in the world.
Tyre maintenance contracts, which are offered to bus operalors, are awarded at the lowest prices quoted by any manufacturer. They cannot be extended to goods operators because they are applicable only to vehicles running on known routes under known conditions of load, speed and so on. Nev6rtheles's, goods transport operators buy tyres at special prices.