Large Diameter
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Why do larger diameter tires with smaller sidewalls cost so much?
Is there really a significant more amount of rubber being used to produce larger diameter sized tires? It wouldn't seem so since the sidewall on large diameter/low profile tires are so small.
As the other person stated, you are paying for the technology utilized to develop the materials and construction science needed for those particular types of tires. You are also paying for the R & D that must be done before any new product can be subjected to the public. If it costs say $3 million dollars to develop a new tire then the cost of constructing that tire (materials and labor) plus an allocation for distribution costs, sales and profit must be built into the price along with the original cost for the R & D. The more of a particular tire the company believes they will sell the less they have to recoup on each unit. However, if it is a somewhat specialty tire then they may infer that they may not sell that many million of them so they must recoup more of their costs on each tire thereby making each tire considerably more expensive. In addition, a great many of the tires produced are utilitarian in nature (they are round, hold air, and do what a tires is supposed to do) low profile tires are often a status statement or accessory for a high performance vehicle and the people who own and drive these types of vehicles are much more willing to pay more for the look and the performance.
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