Forum: HoseHeads Sprint Car General Forum (go)
Moderators: dirtonly  /  dmantx  /  hosehead

We all know by now about the tire shortage situation. 

There are three other tire choices allowed to be used according to the WoO rules, which all 410 tracks follow those rules.

So here is my simple question.  Did Hoosier stop making those other tires, I mean did they not make these compounds for years now? Because  if they didn’t  completely discontinue those tires then why not just make all the teams run those tires.  And don't say it would be a disadvantage,  a disadvantage  to who if all teams are on the same right rear.

I have seen two or three articles about races might have to be canceled but the suggestion of running these other tires was never even mentioned. 

You guys live in a free economy. If the supply can not meet the demand find a different supply.

If you have a contract with a company and they can not supply the contract should be ignored for failure on the suppliers end.

If Hoosier can not supply the tires Hoosier should be willing to let teams use something else.

Even though I may not know you, I 
care what most of you think!

Let teams for rest of year say you can use any brand of tire you wish as long as it has a certain durometer reading or  more, even allow 18 inch tires.  I will bet you on one thing when nylon again becomes readily available they will not reduce the price of tires.

Ditch the rules. Run Watcha Brung

Brand AR says they can't get nylon to build tires and are also in a shortage situation.

some big block modified group cancelled the whole season.

Not sure this ends anytime soon.

Exactly!

Not enough tires, WoO & all the other sanctioning bodies should just open it up to free competition

The economy will cycle, like it always has, and there will be a complete "flip" of the current situation.   It's going to be a bad correction--------likely worse than the "Great Recession" just 13 years ago.  When's it coming?  It's hard to tell.  We might be at the start of it now, but it may be 2023 or 2024.  We've been in similar situations before----and it always ends the same.  

---when your dollar doesn't go as far as it did last month, you spend the same, but get less

---when you get less, you use less supply

---when you use less supply, supply goes up, and demand goes down

---when demand goes down, companies margins go down

---when companies margins go down, they cut costs------especially when they had to raise payrolls at break-neck speed

---people will buy less products, that they are now "overpaid" (In the eyes of corporate America) to produce the products they can no longer afford to buy  

---free government money is going to have to come to an end soon  (eviction moratorium ends, child tax credit advances end, free covid money ends) and these people who have 20-40% more money than they've ever had, don't have it to blow on our economy anymore   (Because they sure as hell weren't saving it)

Need a new truck?  Just hold tight---you'll be able to get one for pennies on the dollar soon.  Can't afford a $7 Starbucks coffee----don't worry, they'll be giving them away when the drive thru's dry up.  Shortage on tires?  They'll be so many extra tires when no one is using them it won't even be funny.  Sick of all of those costs going up at break neck speed?  Get ready for the price crash in the next 12-24 months.  Prices aren't driven by fuel.  Prices aren't driven by taxes.  Prices are driven by demand.  When no one wants something, it's price will decrease in a hurry-----because there is plenty of profit margin for much lower prices.  

Prices are driven by demand, period.  Fuel prices will cause a price increase ONLY if there is a demand for the product.  If no one wants the product, it doesn't matter how much it costs to ship it, make it, etc.----no one wants it.  

Well yes maybe. But when your other things happen fuel prices will come down also. When fuel prices are up everything that uses fuel to produce will go up. If it cost more to run a truck than anyone will pay for freight, guess what the truck will sit and products will sit in a warehouse. Fuel prices make or break an economy. There is a difference between wants and needs. The wants will come down the needs have to be produced and moved no matter what the cost. Some things have to be used no mater the economy such as fertilizer and agricultural production. I have seen people post other places, just don't use fertilizer this year. Well try growing food without it and me know how that works out. If one quarter of farms went organic you would see food shortages like never seen before. 

ASCOC has postponed the Bedford race thinking poor supply of tires may result in low car counts. Ok. I get it but  why is it one race here and not all races until things change?

Even though I may not know you, I 
care what most of you think!

Because at the end of the day all of it is a business. If they get a reduced car count then they are likely to get a reduced spectator count.  It costs money to run these rigs up and down the road and if the track or the sanctioning body doesnt think its gonna make money they have to do what they gotta do. 

........................becasue there's demand.  The cost of a new car or truck is up because there are none to be had-----------not because they are more expensive to make.  Once there is an abundance of cars again, the prices will have no choice to go down regardless of inputs.  When supply is plentiful, the consumer will give a rat's ass how much it costs GM, Chevy, or Ford to produce it.  They will haggle a price with the dealer willing to take the lowest cost.  Right now, dealers don't have to haggle and prices are up.  The margins, regardless of the inputs, are through the roof on most of these durable goods.  They are taking advantage of the buzz.  

Also, there is no way groceries are up 50% nationwide.  Pockets or certain areas---maybe I'll buy that.   Mine are probably up 15%------------which is horrible.  But not 50%.  I have definitely noticed some incredible inflation in the 10-20% range.  50% inflation across the board would be catastrophic.  We have not come anywhere close to that other than in a few areas like fuel and energy.  That 10-20% will be enough to put us in a recession within the next 12-24 months if not sooner.  

Live in Canada and you got the Liberal government Carbon Tax above the increases and Just went up again on April 1, and that is NO april fools joke either..Carbon Tax on everything,gas,groceries heating your house..Everything..

Bedford used to draw a couple cars west of there location. Pa and Ohio, not anymore. The central pa guys, beside maybe 3 to 5 teams, Macri, Marks, DD, maybe Lucas Wolf,  have little interest in traveling. Costs and shortages are I'm sure part of that reasonning, I think a lack of interest  is the real reason they cancelled.  

The moral of the story is that many ingredients are produced long before finished products arrive. People sat on their asses and collected what they thought was free money  We are now reaping what they sowed. It could be years before this mess is cleared up. The current political climate is delaying that time.

Groceries across the board are not up 50%.  Eggs in my area are up 300-400%.  Meat is up 50-75%.  There are a lot of items that are up big.  Some items have not even increased 5%.  Overall groceries, if you are buying a cart-full of groceries, are not up 50%.  Not even close.  I have a family of 4 and our grocery budget has not gone up even close to 20%.  

So, if you buy nothing but eggs and fresh meat, yes, your groceries are up HUGE!  Most people don't just eat the items that have sky-rocketed.  

By now you should be familiar enough with the forum to realize that Strawser's hobby is agueing.

Having a durometer reading rule instead of a tire manufacturer rule would be the best way to run things in any year. Unfortunately, that doesn't allow for some middlemen to take a cut.

I'm no economics major but I think it's pretty clear that prices are being driven by supply right now.  Take for instance sprint car tires.  Is there more races happening?  Are tires being used up quicker?  Are there more sprint cars racing today than 2 years ago?  I don't have exact numbers but from what I can tell the answer is no to all of those questions.  So demand hasn't changed from an obvious standpoint but the prices increased.  They work together it's not just demand that drives prices.

Low supply creates more demand for what is available.  I will clarify-----supply and demand.  There is a shortage, hence, thus, therefore, the supply is down meaning the demand for what is available, is up.  Period.  If 1/2 of the race teams in America fold up shop this summer, and costs for fuel, rubber, etc. stayed exactly the same, the price of tires would go down dramatically.  Why?   No demand.  

Ask a farmer if they can ask more for hogs or cattle simply because the price of feed goes up.  They will tell you no.  The price of hogs or cattle is driven by supply and demand.  The commodities markets couldn't care less what you spent to feed out a hog.  They sell based on supply and demand.  Eventually, the price of feed will dictate cost because less farmers will feed livestock, creating less meat, creating more demand, creating higher prices.  Everyone can pretend all they want that raw materials and fuel prices have driven prices up all they want.  That is a long term issue.  In the short run there is a supply problem creating huge demand for products no one has.  Soon, no matter what the fuel and raw materials prices are, things are going to be dirt cheap-----because most people will not be able to afford them.  Watch car and home prices over the next 12-24 months.  (cue sound of a bomb dropping)