Rock Products

MAY 2019

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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Page 42 of 95 ROCK products • May 2019 • 41 tire costs $550 and is projected to deliver 10 percent more mileage or 123,000 miles, you'd be at $0.004471 per mile (or $4.47 per 1,000 miles). So, even if your evaluation tire didn't outperform the incumbent tire in mileage, it did best it in cost-per-mile, and that's the metric that's most important. If you expect to sell the casing and not retread it for your own use, then there is another step in the calculation to account for the casing resale. (And this example assumes that 100% of casings are retreadable.) Take your purchase price and subtract the retread casing resale value to determine the net cost of the tire, then divide the result by your mileage. For example, if you paid $400 for the tire and expect to sell the casing for $40, your net cost would be $360. If you received 112,000 miles on that drive tire, your cost-per-mile of tread would be $0.003214 (or $3.21 per 1,000 miles). Tire Original Tire Price Casing Value Net Tire Cost Tire Mileage Cost per mile of tread Tire A $400 $40 $360 112,000 0.003214 Tire B $550 $50 $500 123,000 0.004066 After the Evaluation If your evaluation tire outperformed the incumbent, as in our example above, do you make a wholesale change in up-fitting your equipment? Our recommendation is to move forward to confirm your findings, but not all the way forward. If you have followed through properly, you have completed a very important evaluation, which now gives you confidence in the new tire and how it should outperform the incum- bent. It won't take long to see the proof on a grander scale. So, begin to purchase 50 percent of the "new" tires for six months – both in replacement and through your truck OE if available – and then at a year, move forward on full-scale standardization. It is my hope that this information has been helpful as you work to assess the various tire options you have available with an eye on reducing costs over the long term. While it takes time and effort to conduct your own testing, it can be done and its well worth it as you work to gain a competitive edge for your fleet. Phillip Mosier is manager of commercial tire development, Cooper Tire & Rubber Co.

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