It's recently came to my attention that my local retail outlet for B100 typically charges a 25¢ - 35¢ "handling fee". So if I go directly to Austin BioFuels I can get fuel for $2.65/gallon, but at my closest retail store (who shall remain nameless) is currently charging $2.89/gallon but I have paid as high as $3.10/gallon in recent months.

To me it seems weird to charge that much of a premium just to collect peoples money. The fuel is delivered for free, the pumps and tanks are provided by ABF for free so there is literally zero investment on the end of the retailer. They just have to be open and have a 120V plug for the pump.

I know that Houston BioFuels is currently charging $2.40/gallon at their pumps, so just knowing that I am spending 50¢/gallon just because I live in Austin instead of Houston really irks me.

What do you guys think, is charging a 25¢-40¢ handling fee acceptable? Does anyone know what the typical markup the dinodiesel receives from the retailer? I was expecting the profit margin to be more in the area of 05¢-10¢ for the retailer.

How can you expect alternative fuels such as biodiesel to catch on when the retailer is taking advantage of their customers like that?

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-justin

1987 300TD, 1987 300TD
2008 R32, 2000 Passat Wagon

It sounds like Texas has some pretty strange policies! I live in Arizona and I'm currently paying $2.85 a gallon and it doesn't fluctuate. I don't think it's right to charge a handling fee unless they are going to the source to get it, but I know that the state can effect pricing policy. Do you want to go to the source with a 55 gallon drum in a truck and fill up from there is the question!

I've already priced it out, why do you think I'm posing the question here

Delivered to my house, no charge for the 55 gallon drums or delivery, I can get it at $2.65/gallon. 110 gallon minimum.

Once I sell one of my 4 cars, I'll probably do that

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-justin

1987 300TD, 1987 300TD
2008 R32, 2000 Passat Wagon

Greed. What do you expect? Making money is the whole point of owning a business.

Perhaps. But let biodiesel peddlers get your business, 'cause they ain't gonna get mine. Ever notice how bio-D always costs more than diesel, even at $3-plus a gallon? As long as bio makers peg their prices on dino, and not the cost of veggie, they can burn it themselves.

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'91 300D 2.5 Turbo 330K
'00 VW TDI Golf, 190K
'67 BMW R50/2
'73 Norton Commando Interstate

In Madison, they used to be worse. You could buy B100 at over 50 cents the cost of regular diesel. Look at the prices http://www.prairiefirebiofuels.org/ and compare it with $2.61 that I got. Their lower price is after I pay the $150 a year membership.

__________________
01 Ford Excursion Powerstroke
99 E300 Turbodiesel
91 Vette with 383 motor
05 Polaris Sportsman 800 EFI
06 Polaris Sportsman 500 EFI
03 SeaDoo GTX SC Red
03 SeaDoo GTX SC Yellow
04 Tailgator 21 ft Toy Hauler
11 Harley Davidson 883 SuperLow

I don't really expect them to catch on, at least not until the price of petro fuel gets much higher (maybe by a factor of 2 or 3).

I agree, and it will.

__________________
-justin

1987 300TD, 1987 300TD
2008 R32, 2000 Passat Wagon

OTOH, they are having a space set up, processing the payments, etc, etc so why not tack on a handling fee? Why would they allow me to set up a hot dog stand there for nothing? One of the Home Depots has a hot dog stall there that sells pretty decent hot dogs. They definitely charge him money for setting up a stand there. If you pay with a credit card, they lose 3-6% off the top.

__________________
01 Ford Excursion Powerstroke
99 E300 Turbodiesel
91 Vette with 383 motor
05 Polaris Sportsman 800 EFI
06 Polaris Sportsman 500 EFI
03 SeaDoo GTX SC Red
03 SeaDoo GTX SC Yellow
04 Tailgator 21 ft Toy Hauler
11 Harley Davidson 883 SuperLow

The thing about that is that this is a normal retail store that sells everything in the world, the biodiesel thing is practically an afterthought for the store. Other than reserving a single parking space for biodiesel customers (which is sometimes taken by oblivious customers), I don't see the need for the markup.

What I really wanted to see was if anybody knew what a typical gas station charges for their fuel, on top of what they by it for. Obviously this really just applies to individually owned gas stations, not chains.

__________________
-justin

1987 300TD, 1987 300TD
2008 R32, 2000 Passat Wagon

Well, if you want me to sell YOUR stuff while I am doing mine, should I do it for nothing? You pay with a CC and I lose 5% off the top. Would it affect my insurance? Maybe. Space rental. Should the be free too?

__________________
01 Ford Excursion Powerstroke
99 E300 Turbodiesel
91 Vette with 383 motor
05 Polaris Sportsman 800 EFI
06 Polaris Sportsman 500 EFI
03 SeaDoo GTX SC Red
03 SeaDoo GTX SC Yellow
04 Tailgator 21 ft Toy Hauler
11 Harley Davidson 883 SuperLow

come on aklim, it's not that I don't expect a markup. This guy is making biodiesel accessible and for that I am willing to pay, but for me there is a fine line between charging a markup for a service you provide and charging a markup just because you know you can. I think this markup falls under the "because I can" category. I wanted to see if other people felt the same way but I guess not.

__________________
-justin

1987 300TD, 1987 300TD
2008 R32, 2000 Passat Wagon

Yes it falls under the "because I can" category. Because they know environmentalists will pay for it so they make more per gallon than D2.

__________________
01 Ford Excursion Powerstroke
99 E300 Turbodiesel
91 Vette with 383 motor
05 Polaris Sportsman 800 EFI
06 Polaris Sportsman 500 EFI
03 SeaDoo GTX SC Red
03 SeaDoo GTX SC Yellow
04 Tailgator 21 ft Toy Hauler
11 Harley Davidson 883 SuperLow

I have to travel over 100 miles....one way.....to purchase any bio-diesel......period.....so I do the 110 gal (2x55 drums) trip in my gasser F-150 at 16 mpg.....so it costs me about $30 in gasoline to run bio-diesel in my car and tractor......hope to find a VW caddy that isn't rotted out to cut this cost.....but till then I live with it.....

Who owns your Bio-Diesel service station?? If it's an independent dealer....maybe they are charging a bit much. BUT, I'll bet it's a major oil company...and they don't want the price of Bio to be cheaper than Petro.....there should be some Federal Legislation requiring that say 10% (or whatever seems reasonable) of ALL Fueling Stations carry Bio-Fuels.....both E-85 and B-100......that's the only way it will ever get closer to me......

SB

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Diesels:
'85 300D, "Max, Blue Benz", 155K, 27.0 MPG
'84 190D 2.2, "Eva, Brown Benz", 142K, 40.2 MPG
'77 240D (parts car)
'67 Eicher ES 202 Tractor "Otto" (2cyl, Air Cooled, 30HP)
Gassers:
'94 Ford F-150, "Henry", 170K (300 Six) 17.5 MPG
'85 190E 2.3, 148K....Parts Car
'58 Dodge W300M Powerwagon (Flat Fenders) Less than 10 MPG

BD will become widely available only if/when the economics support it and the major diesel manufactures endorse it's use. Until them it will be limited to the lunatic fringe. The bubbas with the new domestic diesel pickups are not going to be interested unless they can save some money without risking their warrantee. The big trucks will use whatever the guy in the office tells them to.