On Tue, Oct 30, 2012 at 1:36 AM, clay monroe <redgh...@comcast.net> wrote: > seller is a criminal. Well, more a profiteer. There is a feedstock > variability, but if he is going through his tanks that quickly, he should > invest in another location to feed the demand.
My Father-in-law used to work with the coop local to him. When he started the price was keyed to costs + maintenance, and if I remember right it was $3-something per gallon - a bit higher than the cost of street Diesel, the price covered only immediate expenses and maintenance. When Diesel prices jumped, they found that they were always sold out, and they were running the coop at a capacity they couldn't maintain. At that point they set a price floor - the old formula - but the selling cost was tied to $.10 over the current cost at some nearby station to reduce demand. It seems irrational to justify selling a comparable product for less money just because the cost of manufacture is lower. Of course the coop was completely honest about this, and the money was reinvested into bigger and better equipment, so that was fine, whereas in your situation at first blush it would seem the gas station was just lining its pockets - but in reality I doubt the station has much relationship to the biodiesel producers, and presumably they were the ones charging higher prices so as to be able to keep up with demand. Best, Tim _______________________________________ http://www.okiebenz.com For new and used parts go to www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
