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Just an idea about salt

Discussion in 'Ice Management' started by Zodiac, Sep 8, 2008.

  1. Zodiac

    Zodiac Member
    Messages: 76

    This might be kinda interesting, I'd like to see it go somewhere but if it doesn't, atleast the idea is out there.

    Anyone (atleast in SE Wisconsin) ever think about a salt co-op type deal?

    I mean, I see lots of people here that are going to need bulk salt, and lots of people have storage and distribution means already.

    I am not sure about the laws of a co-op, as I haven't looked yet.

    But the way I see it, you need a few things.

    Storage, a means to distribute it, members, and a supplier.

    Salt is hard to come by, but if you put in one large order, might be better than lots of small orders.

    Someone that has the means to store the salt would have to either give, or lease the land and storage building to the co-op, for, lets say seven months a year (oct, nov, dec, jan, feb, march, april).

    Members could buy into the co-op for whatever the co-op would decide on. It'd probably be whatever the lease on the land and building would be divded by the membership.

    The members would place their orders with the co-op, and the co-op would obtain the salt and store it, and sell it back to the members for cost. The storage and everything else is paid by your dues.

    Someone would have to look into costs on land and everything.

    But it might work, it'd atleast be a way to guarantee you're getting salt, and guarantee a price to customers and members.
  2. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    its a thought,
  3. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    thats a great idea now why dont you head it up
  4. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    hahaha, lots of talk going on here... if some one true had a concept of how to do this... the only way it would work, is too have all the members pre pay for there loads, almost 1 yr before, other just to get the ball rolling
  5. Zodiac

    Zodiac Member
    Messages: 76

    You're probably right.

    That's probably the only really good way to do it.

    Because if let's say 100 people wanted 1,000 tons of salt, the only way to guarantee a price would be to buy the 1,000 tons right away at a certain price, instead of 500 here and 500 there.

    The storage of this salt would have to be pretty big too.
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Isn't this how With a gain of Salts works it?
  7. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    this is a great idea, farmers have done this for supplies for years

    but this would involve paying up front, in april- may if you would have paid back in may you probably could have bought all you wanted, but who knew this has never happened before
  8. sherwin

    sherwin Member
    Messages: 46

    Our main supplier here is actually a farmers coop- they also supply most of our unilock paving supply and bulk mulch. The farming community has been gobbled up with urban sprawl and they took on these services 3 years ago to adapt.. It has been great for them and all contractors. For mulch and salt we let them know before July what we will need, they get that much contracted at a set price and we don't pay until we use it. Not only do we get better prices on almost everything, but we get a year end dividend from profits too. Last year we got a check for $2200- not bad for something we would have spent the $ on anyways. The dividend is based on amount of purchases, which keeps us coming back for more.
  9. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    That is not so true. I was calling for salt in April, and was told "We dont have pricing yet, call back in August." I called every few weeks all summer long and was told the same thing. Then in August it was "We wont know until the municipal contracts come back". Then it was "Sorry, we don't have any salt for you."
  10. Zodiac

    Zodiac Member
    Messages: 76

    I keep thinking about this idea and I'm overwhelmed with how complex this would probably be.

    Running over some numbers, and keep in mind I have no idea how a farmer's co-op works, but it does.

    I know a guy that owns a co-op, he's pretty busy, but if I run into him I've got to ask him some questions.

    This idea would probably work, once someone reads and understands all the laws and everything, but to be able to do it, and do what I originally thought it would be, would mean someone would volunteer their time to run everything, and personally, I either have no time (will next year), or they won't be willing to volunteer.

    Maybe I'm thinking about this the wrong way...

    Maybe the idea of this co-op wouldn't be cheap salt, but the fact that you're guaranteed whatever salt you order.

    I don't know.
  11. powerjoke

    powerjoke PlowSite.com Addict
    Messages: 1,341

    :eek: who knew running a buisness would be so hard?....even a non-profit one. that everyone wants a peice of the pie and of course.....something for nothin lol

    Ask JAY BROWN about this....he buy's from a co-op and even last year they run out.

    i know what youre going after Zodiac, but when worst comes to worst, a guy needs to take care of himself before his buddies.

    that's why i am hooked up with NASC, they are a high quality dealer. and they have always taken care of me. they have sold me more than i pre-bought, in year's past. (yes even the rough year's, like last).

    they ask that you take 80% of what you pre-order....oh and you don't pay 'em till it get's to youre bin.

    but itis still not wrote in stone that you will recieve youre salt.

    EDIT: oh' and i forgot to mention that NASC is based about 45min from me :D

    Last edited: Sep 20, 2008
  12. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Check your State laws regarding salt storage. You could run into HUGE fines. Main problems would be from storing more salt then allowed on any one site and water pollution from runoff. We've had instances where someone had to dig new neighbors' wells (more than one), plus fines by Federal DEP and State DEP/ Dept of Inland Fisheries and Wildlife.
  13. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,458

    We have a Farmer's Co-Op here that does exactly that.

    And when they run out of salt because of shortages, you're still screwed.

    Good thought, though.
  14. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    This has actually been on my mind for a few weeks now. Now if a few guys were in a position to pre purchase, pay and hold onto 1.5 times the amount of salt they used in prior years. Could they not negotiate some great pricing in the off season, and also have salt for sale when everyone else dries up mid winter? Lets face it, there are lots of 2000 tonne contractors, but if someone co-ordinates 10 of them, and approach the suppliers with a 20,000 tonne pre paid order-could they not negotiate a sweet deal, or are they so ginormous they really wouldnt give a sh!t?
  15. kimber

    kimber Senior Member
    from Ohio
    Messages: 140

    Think about purchasing a boatload...If you like, we can talk about it for next year. I know some dock operators in Wisconsin that may have space available and you could use your co-op idea to get a vessel load of salt and have a plentiful supply at a reasonable price.
  16. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    I have sourced out salt from Chile or Egypt for a riduculously low price- I have ordered some samples and will be getting them next week. I'm meeting with someone on monday to shed some light on transportation (by boat), port fees, etc. I'm seriously looking at bringing in 40,000 to 60,000 should the numbers fall correctly. I have the land in place (properly zoned) to store the product. Guess the deciding factor would be where the "landed numbers" come in at.
  17. kimber

    kimber Senior Member
    from Ohio
    Messages: 140

    Sounds like you have all your ducks in a row...good luck.
  18. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Not yet. Cant count the chickens before they hatch. ~LOL.
  19. musclecarboy

    musclecarboy 2000 Club Member
    Messages: 2,303

    This is pretty interesting. Where are you going to store it? Out in the country?
  20. JohnnyRoyale

    JohnnyRoyale 2000 Club Member
    Messages: 2,935

    Some in Barrie, some in Newmarket, some in Etobicoke.