N.Y. legislation flawed
The Tire Business article in the May 26 issue pertaining to the New York state tire abatement fee does not mention the serious flaw in this legislation that will impact New York tire dealers.
The legislation will prohibit the tire retailer from charging any fee to recover the tire retailer's cost of actually disposing of the scrap tire. Our company currently pays $1 to $1.75 per tire to the authorized scrap tire disposer. In addition, we incur the additional cost of placing the scrap tires in storage and loading the scrap tires for transport to the disposal site.
Taking into account these disposal costs, we believe our current $3 per tire disposal fee to the customer is reasonable and certainly at a break-even point. While our current fee, along with the proposed fee, would result in a disposal fee of about $5 to $6 per tire for the consumer, I believe most consumers would support the charges as long as they are assured the funds are dedicated to eliminating the scrap tire problem.
The legislation will provide 25 cents out of the $2.50 fee to the tire retailer-hardly enough to recover our cost.
I am also puzzled by the Rubber Manufacturers Association's support of this legislation, since it financially hurts the tire retailer, and the majority of the funds will go to the state's general fund and not to solving the state's scrap tire issues.
Our local representatives have advised tire retailers to hide our disposal cost in the retail price of the tire. I have advised them that the automotive repair industry is one that is under constant scrutiny by the public and government for deceptive business practices and hidden charges.
Their suggestion is a slap in the face to the majority of tire retailers who have worked hard to restore honor and integrity to our industry by providing fair and up-front pricing and eliminating deceptive business practices, such as hidden charges.
This legislation will not provide solutions to New York's scrap tire issues. It will only place additional financial burdens on the tire retailer.
Family Tire & Auto Service Center
* * *
The business climate in New York is already very unfriendly, and here we go again with a new law to assess a $2.50 fee on new tires for scrap tire abatement.
I like my business, but I really dislike being the state's ``fee'' collector. Consider that the Rubber Manufacturers Association is so much in support of this ``arm twisting'' budget bailout for New York state, why don't they pay for it and get out of the businesspeoples' pockets?
Between the taxes and insurance fees required here in this state, I must seriously reconsider expansion. Maybe we'll just move.
DeMuth Tire Sales
Darien Center, N.Y.
Stop bashing Goodyear
Enough! I just returned from a Goodyear trip of 40-plus winning dealers who are confident of Goodyear's future.
They've invested their lives in their business, and Goodyear is a major part in that business.
Upon my return, I once again find Tire Business, in the May 12 issue, seeking to bash Goodyear by countering a Goodyear dealer's support with a so-called ``expert'' opinion. How about the opinion and support of all the ``expert'' Goodyear dealers?
It is looking more and more as though Tire Business is rooting for our failure as well.
Big State Tire Supply