I am on the board of our local coop and I can tell you he makes no more per gallon than your local gas station does. It also depends if he bought in an up market or a down market.
He buys for the same price as the stations unless the station is a chain store and gets a bigger discount even then it still depends on when he bought as to whether he will be cheaper than the others.
Our margins are so much per gallon. If we were getting 22 cents per gallon when gas was $2 we also are getting 22 cents when gas is $4. Margins are not % based.
Most all make money in an up market and most hope not to loose to much in a down market.
Your guy is not making anymore per gallon now then he did when gas was $2 a gallon. I'm guessing he is getting about $120 per 600 gallon deleivery. If it took him an hour to load, to get there and unload he is not getting rich with the overhead he has.
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Today's Featured Article - Seeing an Old Friend - by Joe Evans. Dad had a concrete contracting business starting in 1960. One of his first pieces of equipment was a Ferguson TO-35 with a Davis loader. Dad replaced the TO-35 with a MF 202 Workbull, essentially an industrialized Ferguson 35 I am told. Dad bought the 202 new in 1962, and I recall quite clearly going to the dealer with him to sign for it.
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