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gasisoutrageous

We can already see Speedway's effect on area pricing

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I took a look at the charts for Lansing, and if only I knew in January that this was coming. Lansing went from having only two stations that carry it, to 4, within a week. In my belief... partially due to the drop in etoh stocks, partially due to Speedway's presence... prices in this area are not only better than they were this time last year, but they're continuing to go down.

 

I'm watching a Speedway under renovation on the south side... an area that still has a gap in E85 retailers. Finally, we have competitive prices.

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Glad to see you folks "up north" of us are enjoying the Speedway Effect as well.  I've been watching the guys to the west have all the fun for 4 years, now it's our turn to join in with some competitive pricing!

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what is really neat is watching "competitors" that previously had a corner on the market being forced to compete with good prices.  ALL OF A SUDDEN, even with more pumps across town, they are selling more fuel in a week then they probably did in 1-2 months at the previous price...  SHOCK!

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So I figured this would be a good time to give an update.

 

I stopped into the south Cedar Speedway on Monday night, and asked about their E85 sales. The shift manager I spoke to told that they re selling quite a lot of it. She has seen people blending their fuel a lot as well. She showed me a printout of the fuel inventory, and it was at 2,600 gallons or so in the E85 tank. She told me that the capacity is 4,000 gallons, and they had just had a fuel delivery a couple days before. Not bad at all.

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So I figured this would be a good time to give an update.

 

I stopped into the south Cedar Speedway on Monday night, and asked about their E85 sales. The shift manager I spoke to told that they re selling quite a lot of it. She has seen people blending their fuel a lot as well. She showed me a printout of the fuel inventory, and it was at 2,600 gallons or so in the E85 tank. She told me that the capacity is 4,000 gallons, and they had just had a fuel delivery a couple days before. Not bad at all.

 

There is something that drives me crazy- station owners with small minds thinking small. A 4000 GALLON TANK!!!!!! E85 priced right will easily sell over 1000 gal/day in the right town- even in an unattended station!! Furthermore to buy cost effectively direct from an ethanol plant means getting a full load (8100 gal) plus airspace in the tank top, plus inventory enough to carry you the hours between safe order and safe (fitting in tank) delivery. This means 12,000 gal tank which costs only about $3-4,000 more than a 4,000 gal tank. With a 4,000 gal tank these folks are stuck pulling ethanol from an oil terminal and paying more for it, while juggling split loads with gasoline. Trust me- ultimately they will just raise the price at retail to make life simple.

 

It is nice seeing some competition- and yes, two competitors who get it priced right will each far exceed total sales and net income than trickling out a few gal at 60-80 cents gross/gal like I have seen them try.

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The Shell in Lansing is now competing! It is currently at $2.79 ($2.89 on the sign), which is the lowest in the area. It is 30¢/gal below the two Meijer E85 stations in the area, one of which is only a couple miles away. It's also at a lower price and better spread (70¢) than Speedway! That station usually only competes with the Meijer. Progress, progress.

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