Everything You Need To Know About Why Wheel Prices Are Increasing
June 18, 2021
Why are tire prices so high? They're inflated. 😏
As cheesy as that GREAT dad joke is, it's not too far off right now. BUT, now it's happening with wheels too. If you aren't already aware, wheel prices are increasing right now for a multitude of reasons. And by no small amount either.
This unfortunate news has already made a huge impact on the aftermarket wheel industry and will only continue to do so until the world gets back into order, which isn't any time soon due to the aftermath of COVID-19.
So, let's break down why this wheel increase is happening and what it means for you, an innocent bystander in this whole fiasco.
Why Are Wheel Prices Increasing Right Now?
Wheel prices are starting to increase across almost every wheel brand on the market. And like I said before, this increase is by no means a small amount. Some companies will be raising wheel prices up to 15%.
To put this in perspective, if you were looking to grab a set of very popular Moto Metal MO962, for example, which originally were priced around $1.2K, you’re now going to pay almost $1.4K.
So, why is this happening in the first place? Well, I know everyone is used to hearing this by now, but the biggest culprit here is COVID-19. Another huge contributing factor in all of this is the Suez Canal blockage that happened back in late March 2021.
While COVID-19 is the root cause of the wheel price increase, supply chains have been severely disrupted which has caused some major backorders and delays in raw materials across the industry.
Many wheel manufacturers use a JIT, or “Just In Time”, inventory system which means that production schedules are created based on raw material orders, so when raw materials are delivered late, that pushes production schedules.
Once upon a time when COVID-19 didn't exist, JIT inventory systems worked well for wheel manufacturers.
On the other side of things, when the massive boat blocked the Suez canal, which accounts for around 12% of global trade, it not only delayed orders due to the containers on that ship itself, but it also delayed the other boats that were blocked for approximately 6 days.
6 days may not sound like a lot at first, but when you consider just how many other boats were blocked and the fact that the main boat has a capacity to fit 20,000 20-foot shipping containers, that’s a lot of products and raw materials that are late and/or missing.
Photo from BBC News
So, to put things in simple terms, the reason why wheel prices are increasing is due to major disruptions in global supply chains which is ultimately due to COVID-19.
Wheel companies are not getting the materials they need which mean they have to compensate for the small inventory they do have by raising prices to make up that difference.
The truck wheel brands under WheelPros that are going to feel this the most are:
And for cars, these wheel brands under WheelPros are going to be hit the hardest:
What This Means For You.
So, what does all of this mean for you?—the innocent bystander that just wants a nice and new set of wheels on their truck and/or car.
Well, that price increase is going to hurt your wallet a little more than you probably anticipated before this industry-wide price increase unless you grab some new wheels now.
In other words, take a break from trimming your bushes and watering your baby grass so you can buy your wheels RIGHT NOW because some wheel brands have yet to up their prices.
If you find that the wheels you’ve been waiting to buy have already gone up in price, then you’ll either have to eat that price increase or find a different set of wheels that suit your taste (and your wallet’s taste) better.
Just like your list of DIY projects around the house that you’ve been putting off, you’re going to want to start tackling this sooner rather than later.
Wheel companies started to install this price increase on June 15th, 2021, so the purge has already begun.
All in all, we know that this price increase is a huge bummer because some popular wheels might have already stretched out your budget, which at the time was manageable, but isn’t anymore.
Well, I do have some good news to lighten the mood. SD Wheel offers FREE shipping, mounting, AND balancing on all their wheel and tire packages if you find some wheels (and tires) that still work for your budget.
Also, we offer as low as 0% APR financing so you can buy your wheel and tire setup now, and pay for it later.
Not a bad deal.
Stay tuned to find out more information about this in the future.