To Buy and Sell oil or not

[SUZUDDIS Senior Member Find all posts View Profile Close SUZUDDIS]

It's not the place I wanted to be at but I got asked the question today as I approached a potential WVO supply.
The first question I got asked was how much will you pay to take it away ? It takes a lot to not laugh but she was serious..

As I explained that I provide a nice clean pickup for free and won't be paying for oil her response was Cro@kers pays for WVO my only come back was you actually have to buy the oil to have Crookers pay for it back.
I was asked if I sold oil as well but where does one buy oil ? I made mention that the used oil would have to be good for me to offer to buy back though.
Have I gone over board ? this client hasn't yet signed up with anyone yet but has many drums sitting on their loading dock just waiting for pickup.

Are there any ideas from the brains trust ?
I would be happy to buy and sell but I'd have to make money to cover my freight costs.

Michael

[Captaincademan Senior Member Find all posts View Profile Close Captaincademan]

Re: To Buy and Sell oil or not

Michael,

I approcahed a wholesale mob some time ago, cant remember who they are, but they were bulk food distributers. I do remember that you could buy vege oil by the pallet off them in 15 or 20 litre drums. it was a very competitive price, and was worth doing to sell on with a tiny markup to cover storage and handling costs. all you needed to trade with the merchants was an ABN, which I am sure you would have anyway. It undercut the likes of cookers and supermarkets massively. anyway give it a go.

[SUZUDDIS Senior Member Find all posts View Profile Close SUZUDDIS]

Re: To Buy and Sell oil or not

Thanks Cade.
there are plenty to look at but I'll need to talk to a few possible clients first I guess to work out what type of oil they prefer.
that way I can find a good priced oil that suits the client.

Michael

[gilfish Senior Member Find all posts View Profile Close gilfish]

Re: To Buy and Sell oil or not

I have often wondered about this as down my way PFD the main distributor suddenly jacked up the price of lard so everyone turned to oil then auscol and others moved in to remove the oil ? me being paranoid smelled a rat and thought they were in cahoots to corner the oil supply/bio production market, add to this that ARFA is owned by shell and is in all capital cities. I thought about doing the supplying but don't have the time I flatly refuse to pay for it but feel it will go the way of the Europeans where the oil distributors and bio producers corner all the best bulk oil and backyard bioers are left to haggle over poor quality oil/water mixes.

[brenden Senior Member Find all posts View Profile Close brenden]

Re: To Buy and Sell oil or not

Michael I supose you need to look at a few questions. How much bio do you need? how much time do you have? Storage, transport regs, delivery issues. Aaaand how will it affect any excise issues. We don't pay for any oil, and there is no $ change hands in any transactions. Food (oil) for thought.
Cheers Brenden

[SUZUDDIS Senior Member Find all posts View Profile Close SUZUDDIS]

Re: To Buy and Sell oil or not

Brendan

Thanks for that input. I wasn't too concerned about money changing hands because as long as I'm not making bio out of the wvo then there isn't an issue is there

I have an abn but would probably get another for the oil transactions only. My concern after all the thinking is I would have to declare oil disposals and I would imagine the question would be asked.

Although if I was selling new oil at a reduced cost then I wouldn't need to buy wvo back , just offer to kindly take it away.

I have another source to chase up and hopefully this one will work out.
after all this thinking as well , i am considering a job offer that comes with a fuel card so I'm really not sure right now.
I am in the middle of building a new processor too.

Michael