FFE expanding to the oil fields

[ForrestGump]

http://www.marketwatch.com/story/ffe...ces-2011-11-09

Not sure if I posted the link the right way or not, but I thought this was an interesting read.

[RickG]

http://www.marketwatch.com/story/ffe...ces-2011-11-09

Not sure if I posted the link the right way or not, but I thought this was an interesting read.

They'd better bid cheap to compete with Schneider .

[123456]

there goes another decent gig,

down the toilet.............

[stranger]

It's the same in everything. The big boys let the small fries try something until it is seen as steady and profitable, then the big guys root out the little man.

I was part owner and general manager for a fairly large mom and pop hardware store for a few years. When "Great Stuff", the expanding foam sealer, first came out, no big chains would keep it. It could only be found in the independent stores that decided to carry it. At that time the cost to me was $3.79 per can, and we sold it for $5.49. Since this was new, and you had to talk customers into buying it the first time, plus sales being slow with a new product with very little national advertisement, the markup was not much for what it took getting it off the ground.

As people used it, they loved the way it worked. We had many repeat customers, and these customers would tell their friends. This went on at every small hardware around the country. We did the hard work of convincing the public to purchase the product and get the name out with our local sale circulars.

Two years later I went into the local Home Depot to check their prices and inventory, as I did on regular basis in order to compete with them. Low and behold, there was a whole end cap stacked full of Great Stuff with large signage giving the price at $3.99 per can.

The big boys used all us small fry to do the expensive work of getting the word out, carrying the inventory of an unknown product, then when it was a sucess, swoop in and try to take all the business by undercutting us.

Same with Glidden paint. Used to be it was only in independent stores. We had to order 44 cases at one time to get it shipped to us. The quality was great, and it was a good selling paint.

Suddenly K Mart had this paint, advertising it on tv for one cent a gallon above our cost. We were blindsided and stabbed in the back. Most small guys dropped Glidden paint, and it ended up mostly in the box stores, who now told Glidden how much they would pay per gallon. Since Glidden had burned their bridges with mom and pop, they had no choice but to comply. In order to meed the price demands, the quality of the paint had to be decreased until it went from number one, to a paint way down the quality line that it is today.

Funny thing is that Glidden came back trying to get us to become a dealer again, and lowered the order quanity and the price as an incentive. I told them to forget it.

[RickG]

It's the same in everything. The big boys let the small fries try something until it is seen as steady and profitable, then the big guys root out the little man.

I was part owner and general manager for a fairly large mom and pop hardware store for a few years. When "Great Stuff", the expanding foam sealer, first came out, no big chains would keep it. It could only be found in the independent stores that decided to carry it. At that time the cost to me was $3.79 per can, and we sold it for $5.49. Since this was new, and you had to talk customers into buying it the first time, plus sales being slow with a new product with very little national advertisement, the markup was not much for what it took getting it off the ground.

As people used it, they loved the way it worked. We had many repeat customers, and these customers would tell their friends. This went on at every small hardware around the country. We did the hard work of convincing the public to purchase the product and get the name out with our local sale circulars.

Two years later I went into the local Home Depot to check their prices and inventory, as I did on regular basis in order to compete with them. Low and behold, there was a whole end cap stacked full of Great Stuff with large signage giving the price at $3.99 per can.

The big boys used all us small fry to do the expensive work of getting the word out, carrying the inventory of an unknown product, then when it was a sucess, swoop in and try to take all the business by undercutting us.

Same with Glidden paint. Used to be it was only in independent stores. We had to order 44 cases at one time to get it shipped to us. The quality was great, and it was a good selling paint.

Suddenly K Mart had this paint, advertising it on tv for one cent a gallon above our cost. We were blindsided and stabbed in the back. Most small guys dropped Glidden paint ,and it ended up mostly in the box stores, who now told Glidden how much they would pay per gallon. Since Glidden had burned their bridges with mom and pop, they had no choice but to comply. In order to meed the price demands, the quality of the paint had to be decreased until it went from number one, to a paint way down the quality line that it is today.

Funny thing is that Glidden can back trying to get us to becime a dealer again, lowering the order quanity and the price. I told them to forget it.

People don't realize how true that is with the big chains . Levi's bought at WalMart are not the same quality as Levi's sold at department stores . Several manufacturers have a cheaper line made exclusively for WalMart . Working people cut each other's throat by shopping at WalMart .

[stanman63]

i dont think these big comp. like ffe and shcndr. will make it to long out here. the oilfields are a little diffrent and there not going to put up with these mega trucking companys playing there games! and there driver turnover rate will be ungodly. ill laugh my ### off the first time i see one of there drivers get ripped by one of these guys out here!(deer in head lights)lol

[Gr8oldies]

i dont think these big comp. like ffe and shcndr. will make it to long out here. the oilfields are a little diffrent and there not going to put up with these mega trucking companys playing there games! and there driver turnover rate will be ungodly. ill laugh my ### off the first time i see one of there drivers get ripped by one of these guys out here!(deer in head lights)lol

Having a huge turnover rate just will not work in the oil patch or oil industry as whole.This biz requires a little more than hauling toilet paper into grocery warehouse. IMHO it's a lot more specialized.

[Gorgeous George]

Having a huge turnover rate just will not work in the oil patch or oil industry as whole.This biz requires a little more than hauling toilet paper into grocery warehouse. IMHO it's a lot more specialized.

That might have been true a few years ago. Since this latest "boom" as started in earnest, SHELL has invited not only Schneider into the patch to haul their oil, they have also invited Dillon Transport....who has also jumped into the drilling fluids haul business....Altom....who is coming back into the patch to haul oil....and Reynolds Nationwide...who is hauling crude and getting into drilling fluids as well.

Down here, Schneider has jumped the truck count up to 40 tractors, and has ordered a bunch of non-insulated stainless steel tanks, that are outfitted with rear unload and a drop line to the front with dryheads on either side. When they tire of hauling oil.....or the chemical business rebounds....those trailers can easily be placed into chemical service.

[Logan76]

We had some kuhnle tanker drivers hauling fresh water with us for awhile. They had insulated tanks and just hauled fresh watee only, seemed like a good group of people too.

[pathfinder1361]

We had some kuhnle tanker drivers hauling fresh water with us for awhile. They had insulated tanks and just hauled fresh watee only, seemed like a good group of people too.

how about QC quality carriers? does anyone know if they are hauling
for the oilfields/gasfields.