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No new customers for bulk!!!

Discussion in 'Ice Management' started by hickslawns, Aug 26, 2008.

  1. hickslawns

    hickslawns Senior Member
    Messages: 613

    I called for bulk today and was rejected. They are not taking on any new customers. I am sure glad I spent thousands of dollars since last winter for bulk salt capabilities. This sucks! Not the suppliers fault I guess, just sucks for me. There may still be some come available, but I guess I won't put the tailgate spreaders on the market yet. Maybe bags one more year will do. Hope you all are having better luck.
  2. Clapper&Company

    Clapper&Company PlowSite Veteran
    from NE OHIO
    Messages: 4,413


    Were having the same problem
  3. Snowgeek

    Snowgeek Junior Member
    Messages: 27

    Similar probs in SE Michigan
  4. Flipper

    Flipper PlowSite.com Addict
    from CT
    Messages: 1,180

    When its a light start to the winter they will be calling you to take it. Happened to me a couple years ago. We had no snow prior to January. In December we bought salt at 1/2 our price because the supplier needed to move it because he was already locked into new deliveries and had no more room.

    It kind of sucks that they didn't plan. Plenty of salt here and the supplier tells me there is no shortage in production only in transportation, storage and distribution in the midwest.

    MRUSSELL Member
    Messages: 67

    same problem in my area when i called for salt i was told they can't give me a price on bulk salt yet and that they mat not even sell it to me anyways. hard to get bigger accounts if you cant bid salt or even get it for that matter
  6. Dailylc

    Dailylc Senior Member
    Messages: 226

    The county next to where I live was told they were not going to get any salt this year. They are in a big panic. i'm going to have to buy bagged salt this year, which will cut into my profits big time. On top of that, my bagged supplier said to buy early because they were only guarnteed 70% of what they baught last year, and that was over 200 ton. Hope we get some snow this year to pay for all of it.
  7. Goose1

    Goose1 Junior Member
    from Indiana
    Messages: 1

    ANy supplier names in the midwest appreciated. we are hitting a brick wall. Cargill in Indianapolis is selling only to munincipalities this year....We are all hosed!
  8. Sno4U

    Sno4U Senior Member
    Messages: 480

    Don't feel too bad Hicks. We too are in the same boat! I dropped some $$$ this summer getting ready for more bulk usage but now the price is prohibitive to go that way! Might as well stay w/ bagged product and buy a semi load at a time. I have been assured there will be "adequate" supplies of bagged material avaialble. (however they didn't say at what cost!:angry:
  9. plowman4life

    plowman4life Senior Member
    Messages: 557

    we already started getting bulk salt. picked up 2 loads 2 weeks ago with the big dump trailers. will be enouph for most of the season.

    was just enouph to overfill the salt bin.
  10. We got in 150 ton a month ago at last years prices. Could not resist. Although it does not seem we will have an immediate shortage in the Northeast. We are ready to sell locally..
  11. rblake

    rblake Senior Member
    from dayton
    Messages: 291

    got a confirmation for 300 tons from a new supplier this year at $97 per ton. Quite a difference from last year.
  12. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    was wondering what the price difference would have to be to make bulk cost prohibitive
  13. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    I hear ya bro! I dropped a 1k deposit on a 3k spreader awhile ago and I'll be lucky to run even a few hundred pounds through it! One local place wont even open thier salt bins til' LATE OCTOBER!!!!!! Not even a price yet. I should have went with my gut and got into liquid salt!
  14. hickslawns

    hickslawns Senior Member
    Messages: 613

    My problem with liquid is our customers around here are so old school and conservative they don't want to change. We also get a lot of rain changing to snow which defeats pre-treatment. I am getting ready to drop some coin and buy 3 semi loads of bags I guess in the next week or two. Hate to do it, but don't want to be short. The storage is going to be an issue. Guess I will rent some storage units for our mowers, tillers, and other lawn equipment for the winter. Maybe make the wife park her vehicle outside and use the garage on the house as well as the barn and my shop.
  15. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,034

    It won't snow for sure, if you do all that.:D

    MRUSSELL Member
    Messages: 67

    phil where are you getting your bagged salt from ? i wanted a semi of bagged salt but dont know where to get it
  17. Boast Enterpris

    Boast Enterpris Senior Member
    Messages: 745

    Same problems in central Missouri!!!!!!!!!!!!!! "Sorry we are not accepting any new customers at this time, check back in January" What the ****!!!! "Sorry we cant plow your lot today, check back next week"???
  18. Showmestaterida

    Showmestaterida Senior Member
    Messages: 407

    Same here!!:angry:
  19. The MAG Man

    The MAG Man Junior Member
    Messages: 26

    Do your homework on this subject.

    Watertown, NY:

    Terre Haute, IN

    Des Plaines, IL

    St. Mary's OH

    Do these articles suggest to you that this problem is going to go away? It will not improve this season.

    Supply does not meet demand. Add to this the problems from Hurricanes Hanna & Ike which remove a 1MM ton/yr plant in a market that is now over 2MM tons short and you have your answers.

    Those who are thinking they will get out of this jamb with liquids might want to make sure they are not jumping from the frying pan into the fire. With only two domestic liquid calcium producers east of the Rockies, and both of them sold out, finding liquids might not be as easy as you think. Magnesium chloride liquids come from either the Netherlands or Great Salt Lake, both a long distance and high freight cost away.

    At the risk of repeating myself; if you don't have what you need for the season before the first flakes fly, you will have to be better than David Blaine at making illusions appear to get your customers deiced this winter.

    Quoting the newspaper in one of their articles on the subject:
    North American, Cargill, Detroit Salt, Morton Salt, American Rock Salt, International Salt, Central Salt and Eastern Salt all declined to submit a bid to Auglaize County this year...Cargill is not bidding on the state contract because 70 percent of its stock is already under contract.

    You can't squeeze blood from a stone. The coasts have salt because of the deep water factor. Those supplies are backfilling the Midwest and soon will be all committed for the season. As bad as bulk salt is, packaged deicers are much worse off. This is what happens when WalMart mentality of "lowest price" drives the decision. There's more to commodity supplies than lowest price. If your customers beat you senseless over price, eventually you go out of business leaving fewer providers who realize that the prices they were competing against bankrupted them. Unfortunately, there is no government bailout for this problem. We can mine our way out if you can guarantee Al Gore is wrong and winter will be back for a decade or two which is what it takes to finance and recover the cost of opening a new salt mine after you buy the mineral rights. Of course, if prices continue to climb, that payback period might be shorter.

    The closer you get to winter, the more junky the quality of salt you can expect when you do find it because now "Johnny-come-lately" brokers are scrambling to get salt anywhere they can and from unproven sources.

    Think of it this way:
    Quality, Availability, and Price - Pick any two
  20. hickslawns

    hickslawns Senior Member
    Messages: 613

    Good to know Mag Man. I am about 1-2 miles north of Auglaize county. Guess I will salt the roads on my way to my commercial accounts in Wapakoneta. lol I dropped my check off and take delivery of 72 pallets in bagged form next week. 172,800 pounds plus the 8 pallets left from last winter. 96 ton total will get me through the winter with my existing customers. Some may call it hoarding. I call it being pro-active, and using foresight in order to service my existing customers. I forked out most of my winter nest egg in September in hopes for an average winter (not to get greedy) and I am paying for storage to top it off. You sometimes have to pay in order to get paid. Cost of doing business. I am in at comparable to last year pricing. We will not sub-contract for those without. It is business 101. Take care of your customers and they will take care of you. Don't take care of them, and they can call me next year. :gunsfiring: