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 - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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