Generally, you get what you pay for. In this case, it’s a little different.
SUNF Tires takes pride in saying it chooses to maintain control of the supply chain which involves everything from planning, manufacturing, warehousing, transportation, distribution, sales, post-sale support and more! This allows us to fine-tune and maintain a healthy profit without the need to use outside distribution or unnecessary services which will only bring up the consumer price.
- Planning: Anticipating the quantity of products that will be sold in each time frame and deciding what products will be produced, and in what quantities.
- Manufacturing: Organizing, scheduling, and controlling the production process. Checking and ensuring the produced items meet specified quality standards.
- Warehousing and Storage: Storing and managing inventory. Selecting and preparing orders for shipment to retailers or customers.
- Transportation and Logistics: Determining the best mode and route for shipments. Coordinating the efficient movement of goods through the supply chain.
- Distribution: Selling goods directly to consumers. Also, selling goods in larger quantities to be retailed by small shops with loyal customers.
- Consumption: In-house sales and customer service providing support and managing returns or other issues.
- Post-Sale Support: Returns management and ensuring ongoing customer satisfaction and managing feedback.
- Additional: Information Flow, Financial Management and Risk Management.
Let's say it costs $80 to manufacture and land a tire in the United States. We may sell it for $100 before calculating any taxes or shipping. If we use a 3rd party distributor, they will want 30-40% profit which will make the tire cost $130-$140. They will in turn sell it to a retailer who also wants 30-40% profit, which brings the overall cost to about $175. Add in misc. fees and markups and you're left with a tire that cost $80 to make, selling to consumers for $200. We would rather manufacture, and sell directly to you; resulting in a more affordable purchase price.