Merchant mark up

Irishmale

Everyone going mad about the cost of growing grain around here. How much of a mark up are merchants making on fert and chemical does anyone know?

Is there a big difference between a cash price and an account price?

Thanks

simx

Irishmale wrote: »

Everyone going mad about the cost of growing grain around here. How much of a mark up are merchants making on fert and chemical does anyone know?

Is there a big difference between a cash price and an account price?

Thanks

Well in local glanbia theres €20/ton in difference in fert paying on day towards acc.

newholland mad

Fert is generally low margin (for those who shop around not anyone buying
"on account") but the markup on chemicals is massive. merchants love customers who draw out imputs all year without asking any questions and then draw all their grain in, again without any questions ie. take what their given and every grain merchant has loads of these loyal suckers,

bob charles

Irishmale wrote: »

Everyone going mad about the cost of growing grain around here. How much of a mark up are merchants making on fert and chemical does anyone know?

Is there a big difference between a cash price and an account price?

Thanks

No point worrying about what the mans margin is either backwards or forwards in the supply chain. Merchant is usually low margin, high turnover business.

simx

newholland mad wrote: »

Fert is generally low margin (for those who shop around not anyone buying
"on account") but the markup on chemicals is massive. merchants love customers who draw out imputs all year without asking any questions and then draw all their grain in, again without any questions ie. take what their given and every grain merchant has loads of these loyal suckers,

got a couple cans of rosate 96 lately and between glanbia and another merchant there was 11e in the difference on each can, if spraying off a good few acres the difference might be a night in the pub

Farmer Pudsey

simx wrote: »

got a couple cans of rosate 96 lately and between glanbia and another merchant there was 11e in the difference on each can, if spraying off a good few acres the difference might be a night in the pub

I priced generic gysophate lately cheapest was 96 euro dearest was 115.

stand on!!

Farmer Pudsey wrote: »

I priced generic gysophate lately cheapest was 96 euro dearest was 115.

Only 85euro round here for the 20lt of gysophate

tabby aspreme

Pays to ring around alright, early in the summer was quoted €200 for 40L of mcpa, got the 40L mcpa and a litre of Grazon for €178 with another call.

loveta

tabby aspreme wrote: »

Pays to ring around alright, early in the summer was quoted €200 for 40L of mcpa, got the 40L mcpa and a litre of Grazon for €178 with another call.

Not in the grain/crop end of things but are any of ye guys in purchasing groups??? you would have to laugh at what guys are paying for stuff at the local merchant versus bulk buying and shopping around!!!

reilig

Most of the merchants will have a minimum 20% mark up. In saying that, the average mark up is approx 40% with 100% mark up on many products.

I suppose at the end of the day they have to have mark up to stay in business. There's nothing stopping anyone from shopping around if they are not happy with prices :-!

Irishmale wrote: »

Everyone going mad about the cost of growing grain around here. How much of a mark up are merchants making on fert and chemical does anyone know?

Is there a big difference between a cash price and an account price?

Thanks

Farmer Pudsey

loveta wrote: »

Not in the grain/crop end of things but are any of ye guys in purchasing groups??? you would have to laugh at what guys are paying for stuff at the local merchant versus bulk buying and shopping around!!!

It goes without saying that you have to shop around. How many people have landlines and will not sit down for an hour with the yellow pages to price materials. Generic ivermectin can be got 4X500mls for 100 euro. Yet in local co-op store it is over 40 for 500m bottle. In general to bulk buy your vetinary once a year will cut 40-50% off the overall price along with diesel saved running to local co-op ever now and again.

Bag rations in single bags cost 8-9+ euro/bag 350/ton often for pretty poor feedstuff. If you call with a trailer taking half to a ton you will get it for 300ish/ton and if you get a pallet (1.75 ton) delivered you will cut 20/ton again off it.

Fertlizer by buying in bulk at start of year or even splitting into two lots will save 30/ton at least as opposed to running into local co-op for a ton now and again not to mind what happens if you but it in smaller lots.

Even force local co-op to give you a price for a few months ration. For fertilizer in general I get 5-6 euro/ ton for cash I think as opposed to paying with a months credit. Generally co-op charge about 1% interest on overdue accounts now they will knock off most of it for paying within 60 days but you generally get no other discount.

pms7

loveta wrote: »

Not in the grain/crop end of things but are any of ye guys in purchasing groups??? you would have to laugh at what guys are paying for stuff at the local merchant versus bulk buying and shopping around!!!

Very true! You got in before me. Highly recommend purchasing groups.