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Old 03-26-2010, 12:20 AM
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ioilyouin ioilyouin is offline
LawnSite Senior Member
Join Date: Oct 2009
Location: Illinois, no I do not live near Chicago
Posts: 710
Originally Posted by all ferris View Post
I assume you work for municipalities and townships. Probably really close to me (trenton)??? To be honest, as a tax payer, I expect my tax money to go as far as possible. However, I also like to see my money go to the local economy. Do you bid only local or do you travel. I have seen a few "out of town" paving (asphalt) crews at some of the hotels I maintain.

good thread and very interesting that you choose to share your numbers. Although, we have no idea what those numbers represent and if you do get the bid it will probably be public knowledge.
County, township, and towns are my bread and butter, but I also do 10-15% private as filler. We can't travel too far as costs begin to rise and the ability to effectively schedule goes out the window. I travel the Metro East and will cover up to a 100 mile radius for certain customers.

I assume you're referring to the fly-by nights at Caseyville? Last year an out of town crew had a local on the hook for a ton of money for an O&C job. They were suspicious, called the sheriff, who called the county engineer, who called me. He wanted to know what I thought of the price and I gave an honest opinion of what I would do the job for, and what I thought an outrageous amount would be. The guys finished the work and ended up taking only my outrageous amount, which was less than 50% of what they were asking.

Yes my bids are public knowledge so I see no need for the smoke and mirrors. The bid was a total of four line items for furnishing and applying oil for an entire county and furnishing and mixing oil and rock at various jobsites for road repair.

Originally Posted by all ferris View Post
I'm not sure how you buy oil but maybe the price of oil will go down and your margins will go up. Where do you guys get all the oil from??? I know your not going to Rural King and buying 55 gal at at time.... Oelze????
That won't happen. My suppliers quote me materials for the entire year because that's how the bids are set up. I wish that the State would use a price index that would fluctuate with the market but they won't. So in turn my suppliers have to protect themselves against swings in the market. In theory it should work, but my competition will just lower his price and keep his same margin instead of try to make a little extra.

Oelze is just a crude oil producer, they are selling to refineries, who in turn make gas, diesel, liquid asphalt, etc.. They sell to my suppliers who are buying refined material, which they in turn blend into the various grades that I shoot on the roads. There may be a couple other hands in there, but that's the chain in a nutshell.
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