How your price is calculated

Every tire follows the same pricing sequence. Each stage uses a defined input, so an earlier choice can affect every stage after it.

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The six-stage calculation

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1. Mark up distributor costs and select one price

TireTutor starts with each active distributor that has the tire in stock. It adds that distributor’s fixed or percentage markup to its cost. Your pricing scheme then selects one marked-up price. Mean, Median, Min (in stock), Min (6 in stock), and Max each select it differently.

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2. Apply the primary distributor floor

If the primary distributor has the tire, its marked-up price becomes a floor. A lower candidate price rises to that floor. The floor never lowers a price. If the primary distributor lacks the tire, this stage makes no change. The result is the base price.

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3. Add the tire and brand markups

TireTutor calculates the matching Tire Price Markup from the base price. It also calculates the brand markup from the same base price. It adds both amounts to the base price. The two markups do not compound.

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4. Apply MAP

With the standard MAP setting, a price below a manufacturer’s MAP rises to MAP. Some shops use MAP as the exact price instead, and some brands can have MAP enforcement turned off. Contact support to change how MAP applies. This stage produces the unit price. If a tire has no MAP price, MAP makes no change.

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5. Calculate installation and run-flat charges

TireTutor matches Installation Fee and Run-Flat Surcharge rules against the base price, then calculates a percentage amount from the unit price after MAP. Each category applies one matching rule. A run-flat rule adds nothing to a tire that is not a run-flat.

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6. Calculate the installed price

TireTutor adds the unit price, installation fee, and run-flat surcharge. The result is the total installed price per tire.

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Which rules apply

One matching rule applies in each category: tire price, installation fee, and run-flat surcharge. TireTutor checks the rules in Priority order and applies the first rule that matches.

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Worked example

This example uses a Pirelli P6000 in size 195/65R15. Its MAP is $175.

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Distributor prices

The shop uses Min (in stock), so the candidate price is $96. The primary floor raises it to$110, which becomes the base price.

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Tire and brand markups

The matching tire rule adds 10% of the $110 base price, or$11. The Pirelli brand markup adds $30. The result is $110 +$11 + $30 =$151. The 10% markup applies to the $110 base price, not to$140 — the base price plus the $30 brand markup.

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MAP and installation

The standard MAP setting raises $151 to the$175 MAP. An installation rule that matches the tire then adds $50. The tire is not a run-flat, so its run-flat surcharge is $0. The installed price is$175 + $50 = **$225 per tire**.

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Rules that always hold

• A primary distributor floor can only pull a candidate price up.
• Tire and brand markups both use the base price. They do not compound.
• TireTutor applies one matching rule in each category.
• MAP runs after tire and brand markups.
• The standard MAP setting raises a below-MAP price to MAP.
• Some shops use MAP as the exact price. A brand can have MAP enforcement turned off.
• Installation and run-flat rules match on the base price; percentage amounts use the unit price after MAP.
• TireTutor keeps the calculated price without a separate rounding stage.

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Where to go next