From Lube Report
Originally Posted By: Lube Report
“These collectors are nervous that if they are the first to charge for used oil collection, their customers will shop around and find someone else who is still picking up used oil for free – or even paying a little for used oil – and they will lose important accounts and market share,” he explained. “From the customer’s perspective, the difference between being paid a few pennies a gallon, or charged a few pennies, can seem like a big deal, even though in real dollar terms it is insignificant. For example, for a typical used oil generator who has 1,000 gallons of used oil annually to be collected, a five-cent swing in their price only represents $50 per year. But the perception that they are now paying for a service instead of being paid for the oil causes some customers to hesitate.”
Do you think that this hesitation will cause people to find other - maybe less environmentally friendly ways of used oil disposal? I understand the rerefiners wanting the extra revenue to make up for their losses due to base oil price depression (why pay for rerefined when virgin base oil is the same or within $0.10/Gal)?
I think that the market should support rerefiners because their products are comparable in quality (most of the time) and it's good for the environment.
Originally Posted By: Lube Report
“These collectors are nervous that if they are the first to charge for used oil collection, their customers will shop around and find someone else who is still picking up used oil for free – or even paying a little for used oil – and they will lose important accounts and market share,” he explained. “From the customer’s perspective, the difference between being paid a few pennies a gallon, or charged a few pennies, can seem like a big deal, even though in real dollar terms it is insignificant. For example, for a typical used oil generator who has 1,000 gallons of used oil annually to be collected, a five-cent swing in their price only represents $50 per year. But the perception that they are now paying for a service instead of being paid for the oil causes some customers to hesitate.”
Do you think that this hesitation will cause people to find other - maybe less environmentally friendly ways of used oil disposal? I understand the rerefiners wanting the extra revenue to make up for their losses due to base oil price depression (why pay for rerefined when virgin base oil is the same or within $0.10/Gal)?
I think that the market should support rerefiners because their products are comparable in quality (most of the time) and it's good for the environment.