What if it Snows?

That's a huge markup! Urea NH2CONH2 at the now higher price of $900 a ton means it has a base cost when converted to DEF of about $1.14 a gallon. If your running 100 tons a week the price is down to $400 - $500 a ton.

 

That took more effort than the original estimate. Wet and heavy what we around here call heart attack snow.

 

Midday sustenance break most likely followed by a fat snake nap.

 

How many hands does that pass through to get to the pump.

How much taxes are added throughout the supply chain?

How much is added to the cost per gallon for equipment maintenance throughout the supply chain?

The base cost, transportation costs, and taxes will be marked up by everybody in the supply chain.

Now throw in some sales and other taxes at the end.

Was running about $3.50 a gallon retail a couple of years ago. 15% increase at the pump does not feel out of line to me....

It's a cost of doing business either pay it and move on, Or you can choose to stop doing business.

 

Always good to see old friends.....

Looks like the new guy is treating Casper o.k.?

 

@Blu_Ogre
How many hands does that pass through to get to the pump?
Not that many maybe 3 at the max at the pump. Manufacture, Distributor and Retailer. Being a part of the Chemical Company supply chain just Two manufacture direct to Retailer.

How much taxes are added throughout the supply chain? Actually, none directly on the product itself. We do not have a VAT tax in the US. But we do have a lot of Property tax, Income for State and Fed, Employment Taxes Ect...

How much is added to the cost per gallon for equipment maintenance throughout the supply chain?
Again, not a lot DEF is just Ionized water and Urea, and both are non-corrosive materials. You would have to maintain testing equipment for checking for the purity of the Urea NH2CONH2 but this can be done with chemical test strips that cost about a buck each.

The base cost, transportation costs, and taxes will be marked up by everybody in the supply chain.
Yes, and thank God for that, being that we are all in or have been in the business of shipping stuff. However, shipping in bulk tanker trucks gets really cheap per gal when moving 15k gal of it a time. My guess of wildly high rate of $0.50 per gal for Pick up and drop off a few thousand miles including multi stops. The Base cost is as stated about $0.67 a gal. Repeat on the Death and Taxes.

Now throw in some sales and other taxes at the end.
Again, Repeat on the Death and Taxes.

Was running about $3.50 a gallon retail a couple of years ago. 15% increase at the pump does not feel out of line to me....
This is actually good news in that economically the elasticity of DEF pricing is because it shows the low responsiveness of the variable to a change in another's higher pricing of the product.

It's a cost of doing business either pay it and move on, Or you can choose to stop doing business.
I am looking at it as a business that doesn't have a high barrier to entry to markets and prices will fall as more people get into the business.

I am not a commie. I do love a good mark-up when selling stuff, but this is an opportunity for someone to severely cut the cost at the retail pump and still make money.

 

That Hamburger Gravy... Is it similar to what us redneck southerners call Sawmill Gravy? (Leftover grease, sprinkling of flour, slosh of water and stir rapidly. (Directions from noticing it made, not my construction.)

 

Out on the slopes today as I have for decades since I know the highways be a #### show today with the dump of snow we getting[. Yes i get seniors discount!