According to Khabar Online, the spokesperson of Sanat Tire announced the transfer of the authority to determine the price to the manufacturers of passenger tires while maintaining the profit ceiling of 17% and said: This decision is a key tool to curb the black market and create “operational courage” in factory managers. Referring only to the recent decision to liberalize tire prices, Mustafa stated: In the first seven months of this year, the tire industry faced a drop in production capacity of about 30%, the main reasons for which were due to special conditions, a sharp and unpredictable increase in production costs, and especially problems related to the transportation of raw materials and the supply chain.
IRNA wrote in a news: Referring to the daily challenges of supplying inputs in the global and domestic market, he added: In the situation where the prices in the global markets change momentarily, the transportation costs have become a very decisive phenomenon and have made it impossible to calculate the final price for the next orders, the factory managers were always in a difficult dilemma.
He continued: If the factory manager imported the raw material at any price to prevent the lines from stopping, he would have faced the obstacles of the pricing structure; So he had to spend a lot of time looking for longer but cheaper methods. This type of conservative management ultimately led to a drop in production capacity and wasted time.
Delegation of pricing authority; A step forward for production dynamics
The spokesperson of the tire industry stated: In order to get out of this impasse, the competent authorities made a strategic decision to leave the price determination to the producers themselves while monitoring the maintenance of the pricing rules. This action can eliminate the conservatism of managers and give them “management courage” to use the maximum capacity of factory machinery, not to waste time on providing raw materials and spare parts, and to respond to the market’s needs on time. Emphasizing only that delegating pricing authority does not mean abandoning the market, he noted: This decision is subject to two important principles; First, solving the problem of capacity reduction and production development; And second, the continuation of the producers’ own monitoring of the market.
He pointed out that producers do not disclaim responsibility for regulating the market and are obliged to prevent the creation of a black market through strict supervision. Pointing to the phenomenon of double prices and significant price differences (sometimes 5 to 6 million tomans difference in a pair of tires between the actual price and the prices listed on some sites and the open market), he emphasized: By delegating pricing authority and increasing supply, it is expected that the gap between the factory price and the open market will be repaired and the goods will reach the end consumer in better conditions.
The spokesperson of Sanat Tire pointed out: Also, the previous rules, including the application of maximum profit of 17% by the support organization, will still be maintained as the main framework.
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