Pricing Question

Went down to my local specialist paint shop today, and picked up a bottle of 100% methylated spirits to make up some shellac. Whilst there, I started thinking about pricing. Now you will have to bear with me a moment, as I explain my thought process.

I filled up with petrol recently, and paid about $1.45 per Lt for unleaded. Now hands up everyone that thinks we are all being gouged at the petrol pumps. Okay, so that makes it me and several thousand other. Right?

Whilst at the pump, I looked over at the next one, which was dispensing E10, at a lower cost than the unleaded. E10 has (to my understanding) 10% Ethanol added, which reduces the cost. Having said that, I think I have established that the cost of Ethanol is less than $1.45 per litre. It must be, else it wouldn't be able to reduce the cost of the unleaded petrol.

Okay. Now having digressed somewhat, we find me back in my paint store. In my hand, I have a 1 litre bottle of 100% methylated, which I am going to purchase. Now understand this; 100% Methylated spirits is 100% Ethanol, into which a small amount of Methanol (Methyl Alcohol) is added to make it taste nasty. This is done, so that we won't replace the vodka in our orange juice with a much cheaper alternative.

Ah, we have finally arrived at jouney's end now, and I can get to my query.

Why do I have to pay $8.90 for a litre of ethanol (basically) to make up my shellac, when it is worth less thab $1.45 per litre?

Someone is sure making a killing somewherre along the route, from the manufacturer to me.

I fee for you, but in my experience there seems to be no logic in pricing. Here's my recent experience...

In my local store at exactly the same time...

I can buy a single two liter bottle of Pepsi for £2.06 (that's £1.03 a liter)
I can buy a single 750ml bottle for £1.35 (that's £1.80 a liter)
I can buy three two liter bottles (buy two get one free) for £2.00 (that's only 34p a liter!)
I can buy a 330ml can for 79p (£2.39 a liter)

Huh?

:rolleyes:
Whilst I admit it's not quite the same disparity as the fuel, it's still as confusing. :? Same stuff inside, so what am I paying difference for... I'm not getting discount for quantity obviously (apart from perhaps the six liter deal), so it must be the packaging? Work that one out?

Cheers Chrome.

Im still trying to work out how a bottle of acetone i bought was 15 cents more expensive that the other bottle that was half the size????????????????

If you were buying your fuel in 1Ltr bottles instead of slurping it straight into your tank you would be paying about the same. Think about it you have to pay for the bottles and someone to put it in the bottle, it costs more to put bottles in boxes and on pallets instead of in a tanker.That's a start you can go on from there.
Regards

Talking about metho, saddest thing I ever saw was when I used to work in Westfield Towers in 100 William Street in Sydney I used to get the train to Kings Cross and walk down Willam Street there used to be a little hardware store on the corner of Willam Street and I cant remember the cross street used to open early 7.30 or so,any how I was walking down Willam Street,it was absolutely pouring with rain, came across this old fellow of the indigineous persausion sitting in the gutter outside this hardware shop swigging on a bottle of metho,wrapped in brown paper, he had shoes on but no socks, and he was out of it ,his feet were in the gutter and the water was just pouring around his feet,he was soaked to the skin,poor bugger I thought there but for the grace of God etc etc.Dont know whether that hardware store is still there or not been years since I have been up that way,lived in the Cross when we were first married ,very cosmopolitan ,but very safe in those days wouldnt like to live there now though. :(

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Originally Posted by A Duke

If you were buying your fuel in 1Ltr bottles instead of slurping it straight into your tank you would be paying about the same. Think about it you have to pay for the bottles and someone to put it in the bottle, it costs more to put bottles in boxes and on pallets instead of in a tanker.That's a start you can go on from there.
Regards

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Hugh

The bulk aspect and removal of packaging is a big part of it, but sometimes it doesn't quite translate.

I checked the price of a 20L drum of turps at Bunnings and for some inexplicable reason it was cheaper to buy 10 x 2L bottles:?. Same manufacturer:?:?. Has been like this for some time because I keep checking:?:?:?.

Regards
Paul

Chris

Talking of metho can I share a little story with you?:)

Many moons ago I used to work in my cousin's hardware store on a Saturday and he used to employ a retired man who was a master plasterer by trade.

Bill was his name and he had a particular liking for cups of tea. He used to let me know when it was time for a cuppa by licking his lips, rolling his eyes and announcing quietly "It's a dry old place here today."

This was his routine and we all enjoyed his quaint way of announcing smoko. One morning we ran out of tea and I asked him what we were going to do. He went into a ringing of the hands routine, rolled his eyes a little and sheepishly but with an associated impish grin said "there's some metho out the back. We could put it with a little orange juice"

I looked at him and asked him when he last did that. He explained that it was during the war. He had been one of the blokes that walks through the mine fields with the disc on a stick. I think they were called sappers. Anyhow, he explained they couldn't do it stone cold sobber and the only alcohol available was the metho. So that's what they did.

But we didn't:no:.

Regards
Paul

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Originally Posted by chrisb691

Why do I have to pay $8.90 for a litre of ethanol (basically) to make up my shellac, when it is worth less thab $1.45 per litre?

Someone is sure making a killing somewherre along the route, from the manufacturer to me.

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I don't think anyone is making a killing.

your ethanol for blending is probably brewed in Nowra and shipped in a B-Double tanker to Esso at Kurnell for blending -- that's probably 45,000 litres to one destination.

Your bottle of metho has gone in bulk, possibly in a smaller tanker, to a bottleing plant, been packaged into 1 litre bottles, packed in lots of 12 into cardboard boxes, which are then distriibuted through one or two layers of wholesaler and in incresingly smaller trucks till it was delivered to your local hardware store probably as two or three cartons.

Now if you were to buy it in a 20l drum you should pay a whole lot less than $8.90 per litre, and get neat ethanol to boot.

no one is making a "killing" but lots of people in that chain are making a wage.
the emerging "problem" in Australia is that the big retailers are increasingly moving their purchasing up the supply chain to get as close as possible to the manufacturer. This cuts out the middle man and allows a redistribution of value (a bit to the purchaser, a lot to the retailer) but cutting out the middle men also cuts out the jobs they support and in a service economy like Australia's there's only so much other services these displaced workers can move to.

Worked in a hardware store once.
An old guy came in and asked for a 5 litre container of metho.
After I put it on the counter he felt it with his hand and said "You wouldn't have a cold one would you.?
:D:D:D

Some years ago I went into our local Farmers Co-op. I needed a small quantity of super phosphate. They had 2 stores that backed on to each other. You could buy from the main street store smaller items of hardware or garden stuff while the back store had bigger items and bulk stuff, you could even buy your tractor there.
I was looking in the front store for 2kg of super, but I couldn't see any. When I asked the very keen young sales man he answered by saying that they had run out and were waiting for more to come in. He suggested that I should try the back store because they had it in bulk and could use a front end loader. He also remarked that it would be cheaper too because "The more you buy, the cheaper it is". So I came back with...."So if I was to buy enough, it would cost me nothing!" Reply "No, you have to pay for it" so returned, "You said that if I bought a lot it would cost me less" "Yes" he said "That's right" So I came back with "So if I bought enough, I would get it for free" "NO" he said, bewildered by now.
It was a little bit of good fun

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Originally Posted by chrisb691

Why do I have to pay $8.90 for a litre of ethanol (basically) to make up my shellac, when it is worth less thab $1.45 per litre?

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I was in Big W today and 1 litre was $3.15.....

In Tamworth this week I paid $1.59 for diesel and not much less for Caltex 95 petrol.
In 1970 as a fresh faced first year apprentice Carpenter, my boss would give me a $2 note and a four gallon fuel drum to buy petrol for a Volkswagon powered compressor. The attendant would have to jiggle the last cupfull into the drum to make the $2. Now..that $2 gives you just over a litre.

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Originally Posted by chambezio

In Tamworth this week I paid $1.59 for diesel and not much less for Caltex 95 petrol.
In 1970 as a fresh faced first year apprentice Carpenter, my boss would give me a $2 note and a four gallon fuel drum to buy petrol for a Volkswagon powered compressor. The attendant would have to jiggle the last cupfull into the drum to make the $2. Now..that $2 gives you just over a litre.

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So you actually had an attendant pouring for you - a lost breed they are :D

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Originally Posted by _fly_

I was in Big W today and 1 litre was $3.15.....

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That wasn't 100% metho. That's only 96ish % metho + water. Makes a difference when mucking round with shellac. :shrug:

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Originally Posted by tea lady

That wasn't 100% metho. That's only 96ish % metho + water. Makes a difference when mucking round with shellac. :shrug:

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you're better off holding out for the real stuff

the water can really stuff up your shellac results.
are you sure it's only 4% water and not 25%ish