rsbob 

In the words of Steve Martin, “I HAVE A SPECIAL PURPOSE!”

terrymorse 

When does "supply and demand" become "price gouging"? It depends on where you sit in the supply chain.

The further downstream you sit, the more gougy it feels.

PeteHski

It depends a lot on your disposable income in the market. There is no monopoly on bike tyres so pricing will be market dependent. There are supply issues at the moment, so that is likely driving up prices. I waited a long time to pick up a spare Conti GP5000S TR as they were out of stock everywhere for months. There was no chance of a discount on those.

Koyote

Define "price gouging."

Koyote

The problem with this thread (and some others on bf, as in the broader world) is that people express opinions as if they are facts. However, opinions on tire prices do not somehow replace the facts; and so far, all of these tires that have been used as examples of $100+ prices are actually available for less than $100. Sometimes a lot less.

For all of the internet's problems -- and they are legion -- it has promoted competition in many markets. An easy internet search can easily turn up the lowest price, and this drives many sellers to offer more competitive pricing -- as well as more attractive shipping options, etc.

Again, I sometimes patronize my LBS (if I have one - I have spent much time in rural US) without regard to price -- so I understand using their prices as a benchmark. But, when we do that, we're choosing a more expensive option.

terrymorse 

You know it when you see it.

tomato coupe

Those that see gouging seem to be blind to ordinary supply and demand.

PeteHski

Like when there is a real monopoly on supply?

Carbonfiberboy 

I always figured that it's that there are a zillion different bike tires, manufacturers X models, all chasing after a small market = low volume = high price. Considering how thin they are and how well they work, it's all quite amazing really.

jadmt

there is a movie that was so funny but would probably never be allowed today..

SkinGriz

SkinGriz

jaxgtr

Yea this is where I got my truck tires from and then took them to the tire shop and they put them on for me for less than $60. Tire Rack warehouse in GA, is not that far from me, and I could have gone to get them, but since they ship for free, sure, I will let them do that. Funny, when I tried to buy these same tires from the manufacturers store, they could not get them, but Tire Rack had hundreds of them in stock.

NoWhammies

Like most things, shop the sales if you can. If you can hold out for price drops or sales codes from PBK sometimes you can get pretty good deals on tyres. I have not been paying too close attention to prices BUT I am noticing that availability is an issue. I really had to hunt around to find a pair of Michelin Pro TLR tyres. I ended up ordering them from Merlin and will eat the import duties. For me that's the real kick to the nads. Shipping and import fees. The exchange rates do not help either.

jaxgtr

Yep, my wife's car tires have a faster speed rating and all, so it requires a different structure than the truck. Same on the bike, running tubeless, so it requires higher requirements and build quality which ends up costing more.

Koyote

Your answer is a copout, Terry. It is also completely un-actionable in legislative and other regulatory terms. In other words, it’s useless.

There certainly are cases of monopolistic and oligopolistic power which tend to raise prices, and there are also plenty of different types and examples of other anticompetitive practices – – such as price-fixing. Those are definable economic terms, and subject to legal prohibitions. Beyond that, though, no one has ever been able to define “price gouging.“ Including you. As tomato coupe has suggested, most claims of price gouging are actually rather simple examples of supply and demand operating through the marketplace to allocate scarce goods and services.

Koyote

Your answer is a copout, Terry. It is also completely un-actionable in legislative and other regulatory terms. In other words, it’s useless.

There certainly are cases of monopolistic and oligopolistic power which tend to raise prices, and there are also plenty of different types and examples of other anticompetitive practices – – such as price-fixing. Those are definable economic terms, and subject to legal prohibitions. Beyond that, though, no one has ever been able to define “price gouging.“ Including you. As tomato coupe has suggested, most claims of price gouging are actually rather simple examples of supply and demand operating through the marketplace to allocate scarce goods and services. But many people tend to dislike market outcomes when they translate into higher prices for the goods they desire.

SkinGriz

^ This.
The alternative to “price gouging” is a price ceiling leading to zero availability.

Everything is worth what someone is willing to pay for it.

terrymorse 

Nonsense.

Dozens of states have laws defining price gouging, and there are several court judgements on the books penalizing companies for price gouging.

And it’s not just state law. The US Courts have weighed in:

Brooklyn Company Sentenced for Price Gouging KN95 Masks During COVID-19 Pandemic

Koyote

A price ceiling does not lead to “zero availability.” It does, however, reduce the quantity supplied, which typically leads to a shortage— which is not the same thing.

Koyote

So give us an objective, actionable definition. Should be easy enough to provide.

SkinGriz

The point is putting a ceiling doesn’t solve the fundamental problem of limited resources, unlimited desires.

wolfchild

We have the same laws here in Canada. Things got so bad during the last Covid 19 pandemic that the government had to crack down on businesses that were charging unreasonable amount of money for some of the essential products.

terrymorse 

See the Defense Production Act, Section 102.

I don’t see the text of the law, but here’s the commentary from DOJ:

Combating Price Gouging and Hoarding

rosefarts

In the mid 90’s, a really good tire was $40. I still remember this because my dad was mad at me for wanting to spend as much on a bike tire as a car tire. I earned $4.25 an hour as a lifeguard and gas was between $.75 and $1.10 depending on the season.

Fast forward to now. I can usually get tires for $40-$50. Occasionally I’ll splurge and get some absolutely sweet ones for $55-$75. Occasionally because there are usually sales.

I make a “tad” more now than then and everything else is way more expensive.

If anything, adjusting for inflation, bike tires are cheaper than they used to be.