I picked a place I know that is stockpiling hay trucked in from 800 miles away, because they can't find hay any closer for the price. They sell 4x5 rolls of fertilized grass hay for $180.00 per roll. Let's guess it weighs 1000 lbs. Normal times would go for $40.00 per roll. Are they a hay gouger? Looks like it at first glance......BUT:
Freight cost: 800 miles deliver 800 miles return trip @ $4.00 per mile =
$6400.00 for 42 rolls = $152.38 per roll (Just freight charges.) Seller was selling the hay for $25.00 per roll. 42 X $25.00 = $1050.00
Freight $152.38 + Cost of Hay $25.00 = $177.38.
Now where is the gouging taking place? Could it be the Trucker? Is there an organized price fixing going on? Truckers conspiring to fix the price of hauling the freight at an unreasonably high price? Sure isn't the hay seller or the reseller. If the trucker gets a back haul, he still keeps the $3200.00 from the customer and gets mice twice. Or if he's coming down to Texas to pick up a load to go somewhere else, he just made $3200.00 for his deadhead trip. Good for him, bad for poor cow owner just trying to keep his cows alive. I can see where freight prices need to go up because of the cost of operating a truck has gone up, but has the freight prices gone up too much in this case?
This post was edited by Hay_Man at 06:21:25 08/21/11.
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