Benfits of Biodiesel?
#31
02-11-2010, 08:06 AM
I think you forgot the most important question. How much? There is a place to get B100 in Madison, WI. If you pay $150 to join the Co-op, you can have the privilage of paying about $0.75 more per gallon than what D2 costs. As a non-member, you pay about $1.25 more than D2.
That's NUTS! B100 is usually the same as D2 here, and B20 is like 10c more. I only run it once in a while, mainly because it's hard to get where I live...
#32
02-11-2010, 08:19 AM
Only because at this time, it is cheaper to give the oil to you as opposed to disposing it. When more get into it, things will change. In fact, some places are getting paid to give away their oil. At that time, your supply will dry up. Also, it is cheaper because you don't pay road tax or labor for it. When you factor that in, $1 a gallon will suddenly be not so much of a reality
AND....I also want to point out that as soon as biodiesel starts competing with market fossil diesel, you can bet they'll drop the price and create a hell for anyone trying to profit from biodiesel.
#33
02-11-2010, 09:29 AM
You want to hear what is more nuts? I asked them "Why are you so much more than D2? How come you are not more competitive?". Their answer was "Well, if we need more customers, we will see about lowering our prices slightly but right now, we have the customers we need." or words to that effect.
#34
02-11-2010, 09:32 AM
That will be a long while away before it can even do that. Besides, what is your point? Business does that. If you ran a company, would you welcome a competitor with open arms and help him out or try run him out of town? I know what I would do. Can you honestly say you would do different? If not, why do you expect any more of others?
#35
02-11-2010, 09:43 AM
Commercial producers have been struggling and failing since then.
I believe we can agree that a retailers view is "how much can i sell it for before customers become reluctant to pay". They expect markup, fuel is a draw item, and yet it is just another item to sell.
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