We try to make $20 per tire on tires that cost us from $0-$80 and $25 on tires costing us from $80-$100. Tire costing us above $100 we mark up $30.00. We then charge $16 for mounting, balancing, wheel weights, valve stems, etc. If I am dealing with phone quotes or walk ins that have never been in our store I will usually trim $5-10 off per tire. We sell on average about $14,000 in tires per month. This has worked fine for us. We have great flexibility on the brand of tires we carry and I try to have what is the best value for the buck. We stock about 200 tires but have access to three major warehouse overnight and local hotshot delivery from four locations. As a rule the local pricing is not as good as our overnight warehouses. This works well for us as I compete by offering some brands that are not what the competition is selling (Kuhmo, General, Continental, Yokohama, Summitomo, etc.) and snag alot of special pricing tires. We have a PepBoys, Walmart, Sams Club, Goodyear dealer, Firestone Dealer, Sears, and two large independents within one mile of us. When I quote prices I quote an installed price plus tax.