Agora Tire Provides the First Spot Market Price Index for OTR Tires
25 October 2007
Agora Tire, Inc. recently announced the addition to their website of the first ever spot market price index for OTR (Off The Road) tires. Taking a cue from other industries such as metals and plastic resin that have made commodity pricing available in order to establish a benchmark for fair pricing; Agora Tire has taken on the responsibility of providing this information to the OTR industry.
Brad Harris, President of Agora Tire, explained: "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. Dedicated 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.
Harris continues: "To our knowledge, this is the only OTR tire price index that is available to the public, and it’s 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.
Harris continued: "It's 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."
ABOUT AGORA TIRE
Agora Tire Inc. is a trusted business partner and supplier of choice to many of the world's leading companies in the mining, exploration, construction and earth moving industries. Customers look to Agora for the most specialist OTR tires and rely on them to deliver results. Utilizing a worldwide network of suppliers and manufacturers, Agora is a reliable, solutions-oriented resource for any OTR tire need.
