Forum Discussion
pigman1
Mar 20, 2020Explorer
Yes on the small business and yes on the markup. If you're in the business of dealing in a commodity that is as volatile as the oil business and are not offsetting your risk and ensuring your profits in the futures markets you should not be in that business. A simple look back into the futures/retail spreads will give you a good idea of historical profit margins and markups. Today's numbers are telling the gouging tale. The guy who doesn't offset costs and volatility in these ways is either stupid or too lazy to learn and figures he'll make a killing when times are good and then quit when things go bad. Transportation costs are the same issue. If you're getting gouged by your local transporter, find a way around it. Cooperative ventures with local owner operators, leasing equipment and space on trucks are also ways to control costs and risk, but you need to get off your butt and learn the system and the ways to get around in the road blocks. There are folks out there who are smart enough and resourceful enough to do this and still deliver a good product at a fair price but too many are willing to succumb to the lure of the fast buck for a quick hit and out.
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