More Rubber Cost Less
Posted by: info | May 24, 2007
Some things in life aren’t fair and don’t make any sense. For instance new tires on my truck can cost anywhere from $270-$500. I can get a tire size of 275-75-15 for $68 per tire. For tire size 275-60-15, the cost is $104 a tire. The bigger tire cost $36 less. This is for the same brand of tire. Why does more rubber cost less?
The tire sales person explained that the 60 series tires are in more demand and harder to come by. He said this was most likely the reason for higher cost. It would seem that the tire with the most materials would cost more. The 75 series tires have quite a bit more material on them. However, they cost a lot less.
This seems to be a big problem in America. Prices go up simply because they can. When the Atkins Diet was so popular, the price off eggs soared. The market almost doubled in cost.
Consumers can find similar problems with gasoline. The price of gas rises in a moments notice. If the price of oil goes up, the price per gallon of gas rises the next day. However, if the oil prices goes down, the price of gas may never decrease. The price of oil might have to drop for several weeks before consumers see any relief at the pump.
Similar to tires is furniture. A love seat is about 12-24″ shorter than a sofa. However, the price of the love seat is almost identical to the sofa. Even though a sofa can be 1-2′ longer, consumers sometimes find a love seat only $11-$25 cheaper than the sofa.
Many consumers may never figure out the law of pricing. These are some weird examples that come to mind. Are there anymore that was missed?
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