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Thread: About to loose a major supplier

  1. #1
    Join Date
    Jul 2007
    Location
    Canberra, ACT, Australia
    Posts
    333

    About to loose a major supplier

    My main supplier will, in the near future, be swapping to an oil supplier who discounts oil but on the condition they also take the used stuff away. It's already happened at their Woden store and is likely to become the norn at many of the bigger users of oil.

    I was collecting between 100 and 110 ltrs a week from these guys and was trying to get the Woden store for Jasper.

    I can't blame the guys, they are hurting with the escalating price of cotton seed oil. They have been good to me so I can't complain, just lucky I have some other sources of oil but I'm now seriously looking at a more fuel efficient vehicle, the LandCruiser @ 14 ltrs/100 is just chewing to much of a dwindling resource.

    Sorry Jasper, can't help you out with more cotton seed for now.
    Maverick
    Canberra

  2. #2
    Join Date
    Dec 2006
    Location
    Townsville, North Queensland
    Posts
    611

    Re: About to loose a major supplier

    I see only one way to completely ensure your oil supply.

    Do what other companies do.

    Buy the supply. Buy the shop and go into business.

    Only problem is you may find you no longer have the time to process your fuel.

  3. #3
    Join Date
    Dec 2007
    Location
    Wellard
    Posts
    78

    Re: About to loose a major supplier

    why not just match the price that this oil collecting company is paying. So you get the oil, and what they wont discount the oil for the shop owner. Who cares tell the owner you will pay the difference. Plus there are other oil suppliers, the owner has the power! What might it cost you, 50c per litre, more? I dont know. But you had the oil first, you have been loyal, and you have the option (i would think) of matching their offer. Its tough but thats life i guess.

    Also, there are an absolute million of restaurants and lunch bars in australia. It will never (i believe) be impossible to get a supply as long as one is prepared to match any competitors,

    farmy

  4. #4
    Join Date
    Jul 2007
    Location
    Canberra, ACT, Australia
    Posts
    333

    Re: About to loose a major supplier

    You're missing the point Farm Boy. The big guys will only supply the new oil if they can take the old away, it's a packaged deal and one that comes with specialised vats that the old and new oil go into. As I siad, I do have other sources of oil and I was giving a lot of what I was collecting away to another forum member so I will not be running low on oil, but he may in the very near future.

    It's the convenience factor that the store owners are liking as well as the cost benifit. I have offered to pay the guys for the oil but they want the total package, not just the money.
    Maverick
    Canberra

  5. #5
    Join Date
    Sep 2005
    Location
    WA
    Posts
    4,075

    Re: About to loose a major supplier

    Maverick,
    Not all of the oil suppliers have this arrangement. The ones which don't, sell the oil at a price. The ones which do, sell at a different price.

    If the difference in the price can be calculated and if the oil recipient (in this case Quarla) can offer his source the added benefit of providing a lower nett cost of the oil, then providing a good service is provided to the source, he will be likely to continue to provide the used oil to the recipient.
    If there is only one local supplier, then freight costs may be different and this could be allowed for in the price bid for the used oil.

    The answer, is to talk with your oil source and determine what it would take to continue receiving his used oil. There WILL be a price which will make him continue supplying you. you just need to find out whether it is worth it to you, to pay that price.

    One thing to remember, is that doughnut shops buy oil but rarely have any used oil, it all gous out with the product. So how would the "no return oil = no oil supply" work for them? Fish & Chip shops can lose around 50% of the oil with their product.

    Regards,
    Tony

  6. #6
    Join Date
    Dec 2006
    Location
    Townsville, North Queensland
    Posts
    611

    Re: About to loose a major supplier

    Quote Originally Posted by Tony From West Oz View Post
    One thing to remember, is that doughnut shops buy oil but rarely have any used oil, it all gous out with the product. So how would the "no return oil = no oil supply" work for them? Fish & Chip shops can lose around 50% of the oil with their product.

    Regards,
    Tony
    Not only them. There is a chineese shop up the road. Got the misses to go see them as she knows the woman running the place.
    I always thought they change the oil very often and would be a good supply, but not so. She was told. 'We never have used oil to get rid of. We filter it and use it over and over.'

    Scratch that shop off my list and move on.

  7. #7
    Join Date
    Jul 2007
    Location
    Canberra, ACT, Australia
    Posts
    333

    Re: About to loose a major supplier

    The point I'm making, and the one they made to me, is that they want the complete service, vats, pump out, no drums, the works. I can match or beat the price but the rest that the big guys are offering is beyond my means, or at least my desire to try to provide.

    I do have other sources of oil and that is sufficient for my use, I was collecting more than I needed but was supplying the extra to a mate, who now will have to find some more sources quickly. I will probably find some other sources, that's never been an issue for me so I have not been inclined to pay, I acknowledge that the day will come however.

    PS. This is an ACT list, if I wanted to discuss this in a wider forum I'd have posted it in the general forum. Sorry for being blunt but I would have thought the ACT list would have been for the ACT Biodieselers, they were certainly my target audience.
    Last edited by maverick_sr71; 7th July 2008 at 09:47 PM.
    Maverick
    Canberra

  8. #8
    Join Date
    Sep 2005
    Location
    WA
    Posts
    4,075

    Re: About to loose a major supplier

    Maverick,
    Who from ACT replied to your question?
    Forum members offer their comments to anyone, no matter where they are from.
    If you only want replies form ACT members, please make this clear at the start.
    We thought that you wanted help, so we offered it.

    No offence at your bluntness, but we were not to know your intentions.

    Regards,
    Tony

  9. #9
    Join Date
    Jul 2007
    Location
    Canberra, ACT, Australia
    Posts
    333

    Re: About to loose a major supplier

    Perhaps my original post wasn't clear, I wasn't asking for help, I was informing the ACT guys of what is happening in some of the larger ACT WVO users.

    Thanks anyway guys. I guess I'll just e-mail the ACT guys in future if the forum is not dedicated to ACT members. I wasn't aware the forum worked like that so am now educated.
    Maverick
    Canberra

  10. #10
    Join Date
    Dec 2006
    Location
    Townsville, North Queensland
    Posts
    611

    Re: About to loose a major supplier

    Maverick, don't think that what's happening there only concerns ACT members, as the goings-on are sure to flow on all over Oz before too long.

    I'd consider it more a warning of what's around the corner and more a warning to lock in our own oil supplies before some big company moves in on us all.

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