When will fertilizer prices level out?

Discussion in 'LESCO' started by HydroRI, Oct 24, 2005.

  1. HydroRI

    HydroRI LawnSite Member
    Posts: 120

    I have been hearing that price of fertilizer is going up. I purchase most of my material at Lesco in season. I usually go online in late fall and early winter to check product costs. This way I can figure out my cost per Sq. Ft. and quote my customers appropriately. My customers usually hear from me by the end of the year for there program total for the following season.

    When will be a good time to go online to check for pricing. Or is there a percentage I can expect where I can figure out my prices now.
  2. upidstay

    upidstay LawnSite Bronze Member
    from CT
    Posts: 1,348

    I would expect them to peak mid winter and level out for spring. It's the cost of natural gas to make the stuff and then the cost of diesel to ship it.
  3. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    I'm pretty sure it's January. You can still lock in your prices if you do your ordering now. They have a deffered payment and 0 interest plan. No payments until like June, I believe.
  4. Bob West LESCO

    Bob West LESCO Sponsor
    Posts: 176

    Runner - your question is a good one. I wish we knew the answer. The challenge has been the fluctuating (generally climbing) energy costs - oil, diesel, natural gas. Those climbing prices are all working together to drive fertilizer prices up.

    We expect that prices will increase anywhere from 10 - 20% between now and Jan. 1. If you want more specific information, you should be able to go into your LESCO Service Center and review your lawn care program for next year and get an idea how much different products will go up. Plus, as HydroRI noted, our Grow With Us Sale is going on through Dec. 31, and it's a great opportunity to save money, beat the price increases and not pay a penny until July 2006. The guys in the store can fill you in on this as well.

    We recognize that fertilizer prices are a challenge for a lot of people, and that includes us. We want to work with our customers to help them minimize the impact on their businesses, so please let us know if you have further questions.

  5. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Yes but will the prices decrease when your fertilizer supplier starts using cheaper gas to make the product. :D
  6. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    that would be a no...
  7. quiet

    quiet LawnSite Senior Member
    Posts: 720

    Urea is derived from natural gas. All energy related commodities at the consumer level follow the same pattern: Prices go up like a rocket, and fall like a feather.

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