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TARGET COSTS ,FUEL REASON

Discussion in 'Shooting Related Threads' started by break25, Mar 25, 2012.

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  1. break25

    break25 TS Member

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    Have been told that the purchase cost of Targets has increased because of the increase in fuel. How does that effect the Biodegradables?
    I realalise that the shippimg is also a added factor.
    We were also informed, that the other type was raised because of the use of pitch in the manufacture.

    CHAZZ
     
  2. grntitan

    grntitan Well-Known Member

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    I'd say that since 70% of all freight is moved by truck in the US that price is a direct reflection of fuel costs. Remember its not just the finished product that is trucked but the ingredients to the factory as well. That 70% is a very conservative figure too.
     
  3. Nutso

    Nutso Member

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    Its the freight charge for shipping, to the wholsaler, and then to the club. And when fuel get higher there can be fuel surcharges in addition to the freight charge.

    I know this as I've paid many a bill for truck and semi loads of targets, its a trackable feature that is a line item on invoices, just ask your club teasurer.

    Like I've said before on this site, if you want to learn the true cost and expense of providing a shooting venue, or club, then spend time in the treasury position. It can be eye opening, it was for me.
     
  4. birdogs

    birdogs TS Member

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    I don't know the specifics but fuel is consumed both in the manufacture and the shipping of these items - and they are heavy relative to their bulk.
     
  5. AveragEd

    AveragEd Well-Known Member

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    A co-worker of mine has a brother who contracts to FedEx Freight. His fuel expense in 2011 was $55,000. I watched a race car hauler refuel a few weeks ago - at $4.19 per gallon, the pump finally stopped at $999.71.

    When you think about how much oil is beneath U.S. soil but not being harvested, things like that make you angry.

    Ed
     
  6. Joe Potosky

    Joe Potosky Well-Known Member

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    Also, the increases in health care cost (Obama Care) for each company in the manufacture and delivery of products, also need to be considered, as the business is passing them along to the consumer.
     
  7. break25

    break25 TS Member

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    TO NUTSO:
    BEEN THERE AND STILL DOING IT.
    To all:
    Like I wrote and asked, besides the shipping,how else is the fuel inpacting on/in the manufacture of the target? Especially the BIOS?


    CHAZZ
     
  8. tanda1

    tanda1 Active Member

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    It is most likely related to fuel costs

    Reasons other than fuel costs?

    In theory, as a lower cost substitute, Bios would see upward pressure on its demand curve from an increase in pitch target prices. This would result in higher prices for bio-targets.

    Or another way to look at it: In an effort to maximize profits, the price differential between pitch and bio will remain substantially unchanged. As pitch targets increase in price, so do the bios.

    Read through the link above.
     
  9. tanda1

    tanda1 Active Member

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    Chazz, are you asking why bio targets have increased in price even though pitch is not used in them?
     
  10. break25

    break25 TS Member

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    Yes. BIO vs Pitch.


    THANKS
     
  11. Baber

    Baber TS Member

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    A major reason for the problem is lack of pitch to make the targets. Pitch is a waste byproduct of the refining process. Many refiners are improving their systems to cut down on the waste so pitch is not as available as it once was. Its also more expensive.

    Looks like we are going to have to live with the Bios or find a source overseas like China maybe???

    T
     
  12. Joe Potosky

    Joe Potosky Well-Known Member

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    RE: Looks like we are going to have to live with the Bios or find a source overseas like China maybe???

    There was a company from China that posted here sometime back offering to sell targets in the states. You had to purchase a shipping container of them.

    A number of posters here said no way!

    As prices head north you may have to swallow hard.
     
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