Agora Tire has added to its website (www.agoratire.com), what it claims is “the first ever spot market price index for OTR tires.” The company says it is making “pricing available in order to establish a benchmark for fair pricing. [It] has taken on the responsibility of providing this information to the OTR industry.” Says Brad Harris, President of Agora Tire, “We simply felt compelled to provide this knowledge to the end-users in the industry in the midst of all the chaos in the market.”
Assembly of the pricing chart on the Agora website requires daily input from scores of vendors, manufacturers and other suppliers buying and selling OTR tires in the spot market. Agora staff input the data and a custom database compiles and sorts the data. Reports are run that show the average monthly pricing by size and tire type. Says Harris, “To our knowledge, this is the only OTR tire price index that is available to the public, and its no secret that it was sorely needed.” What Harris refers to is the shortage of OTR tires over recent years and the subsequent escalation of pricing, sometimes up to four times what would have been previously paid for the same tire. “We’re committed to continuing to help end-users by providing this tool for a more stable business environment.”
In fact, Agora is willing to go a step beyond providing the general pricing index. Harris says, “We also have the capability of doing more detailed analysis upon request. For instance, if an end-user is preparing to negotiate a sale and needs a pricing index for a specific type of tire that isn’t listed on our website, we can help them out.”
While the Agora Tire price index is a welcome reference tool, Harris cautions OTR tire suppliers and end-users not to use the index as the sole means for determining selling prices. The index is a useful guide, but it can’t capture buying or selling practices and nuances that are unique to a given business and/or relationship. Says Harris, “Its not that we lack confidence in the accuracy of our numbers. There are multiple dynamics that could contribute to a higher or lower actual sales price. The real purpose of this index is to provide a tool for benchmarking historical pricing and predicting future trends which will enable anyone engaged in purchasing or selling OTR tires to make better informed decisions. Supplier and end-user negotiations will still dictate final purchase agreements between a given supplier and end-user.”