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Supply and demand

Discussion in 'Ice Management' started by Ipushsnow, Feb 5, 2009.

  1. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    We got hammered with snow in December and beginning of January. And about a month ago I started getting worried that I would run out of salt, so I started calling around to get more. EVERY contact I have as far as getting salt had their prices so jacked up I said screw it and decided I would roll the dice as far as running out.

    Well, it hasn't snowed here in about a month now and there is NONE in the 10 day forecast. Funny how these same suppliers that gave me ridiculous prices a month ago are now calling and e-mailing me trying to unload salt at prices that are dropping lower every day.

    I am glad my gamble paid off and I didnt waste thousands of dollars on salt I wont need this year. I am also glad to have the opportunity to tell them I would buy salt from them, but their price gouging a month ago really made me question their business ethic.
  2. grasmancolumbus

    grasmancolumbus Senior Member
    Messages: 148

    Good call!
  3. CK82

    CK82 Senior Member
    Messages: 189

    I second that! Good call...its unfortunate that the market has come to that! Last year it was impossible to get a hold of salt, now there are suppliers coming out of the woodwork. Despite many new suppliers, the cost continues to rise. Yes I understand the cost to the suppliers goes up in all aspects, but they definitely are price gouging.

    REAPER 2000 Club Member
    from 60050
    Messages: 2,230

    That is eggselent!!! :redbounce

    There is going to be a lot of these middle men that tried to corner and or hoard the market to create inflated prices and using scare tactics to get the cost up. I expect more than a few will be holding on to mountains of salt over the summer scratching their heads. ussmileyflag
  5. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    So no more snow this season? shall we take the plows off? I'm glad a month ago that we went ahead and filled our bins at a slightly higher price than what we normally pay, that piece of mind is worth a lot.
  6. Sno4U

    Sno4U Senior Member
    Messages: 480

    Ya, its been nice to have the time to fix all the "stuff" that got broken in those 6-7 weeks of winter that we had!
    We're sitting good on salt also, got enough to hold us for at least 4 BIG storms rite now-and that was bought on sale!:D
  7. redman6565

    redman6565 PlowSite.com Addict
    Messages: 1,411

    consider yourself lucky. since thanksgiving, the biggest break we've had where we didn't plow or salt has been maybe four days max.
  8. blowerman

    blowerman PlowSite.com Addict
    Messages: 1,275

    Lately I've been getting the same calls and faxes.. The price hasn't been cut in half, but it has dropped by quite a bit. As the temps get warmer, we use less salt. At this point in the season I hate to have a huge stock pile.
  9. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,194

    I would risk having 300 ton left over, rather then running out, cheap insurance in my books and reduces ulcers.
  10. SnowMatt13

    SnowMatt13 PlowSite.com Addict
    Messages: 1,559

    For what some of the companies did with the price of salt this year.....I hope they choke on their salt piles. And I thought price gouging was only for gas...........
  11. cet

    cet PlowSite Fanatic
    Messages: 7,257

    That's a tuff game to play. I know I wouldn't sleep too well. I'm glad it worked out for you. I had over 100 ton left last year and that was OK by me.
  12. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    Is anyone that isnt willing to purchase salt as much as 1.5 years ahaed of time, pay fot it, transport it, store it and guess how much you need, really in a position to ***** about the price when you want to buy it on demand? IDK
  13. leon

    leon Senior Member
    Messages: 872

    salt and the market place

    This is specifically why I mentioned establishing a salt buying co-op for bulk and bag and elimnate being gouged due to the process of salt allocation when supplies of salt are non existant.

    A signed contract for a supply of salt in bags or bulk gives you huge leverage legally and financially

  14. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    Well, at the rates I was getting quoted that would be $60,000.00 in salt. There is no way I could sit on that much money for a year.

    And to be clear, I wasn't out of salt, or even close to out, I was just thinking that if things kept up the way they were going I MIGHT need to get some more.

    And to cretebaby, I think your post was unfair. I do buy my salt as early as possible and don't expect to "buy on demand". I titled this thread "Supply and Demand" for a reason. A ton of salt is worth what people are willing to pay for it. Whether its $35 or $235, the consumers are the ones that set the price. And at $200 per ton I refused to buy it, and I guess a lot of other people around here refused to pay it too cuz now the salt suppliers want to sell me the same salt for $140 per ton. Come April it will probably be $85 a ton and I will buy my supply for next year!!
  15. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    i have about enough salt to last 1- 1 1/2 years, because i've been stocking up and just got another bin rented recently. NOW is the time to buy! salt is as cheep as it is going to get. trucking is the biggest part in the cost of salt, and i doubt fuel is going to get much cheeper.
  16. TCLA

    TCLA 2000 Club Member
    Messages: 2,707

    You bet it is.

    Couldn't agree more.

    Very well said. These three know what they are doing. :salute:
  17. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    That wasnt really directed towards you:drinkup:
  18. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    What are you thinking now Longae? Record high of 54 yesterday, they are calling for 60 Tuesday, and still no snow in the forecast. 60 freakin degrees in Wisconsin in February? That aint right! Man, the white stuff better start falling! :confused:
  19. redman6565

    redman6565 PlowSite.com Addict
    Messages: 1,411

    guys guys guys, it's onyl one week into February...idk about you but i'll believe spring is here when the first week of April hits, until then you don't know. all our weather is all screwy, it always has been and it always will be.
  20. redman6565

    redman6565 PlowSite.com Addict
    Messages: 1,411

    to talk about winter being over or the talk about not buying salt to try and survive is ridiculous and unfair to your customers. you signed a deal with them to provide services and now that your profits might take a hit because you couldn;t plan ahead is your problem, not your customers. live and learn, take notes and don't make the same mistake twice. i ran out last year and paid out my ass. this year i made provisions, got paid a little more upfront and stocked up for the year. my salt bin is 75% full right now and i have no worries, but that's the mentallity you have to take.