Kak
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Hi @Tahoma
I have worked in commodity chemicals, but our business primarily deals in our own proprietary blends right now. The commodity stuff, for me at least, has always just been the "good old boys club" type of deal someone knew someone and we put a deal together on contract for a long time. OK margins at best, but the value is in the fact that it just goes forever. They are not company builder deals, but they are bill paying.
Is it possible to broker a sale between a buyer and a seller? Yes. Absolutely.
I would say it is better to put your own financing and transportation together and bill the customer yourself. I would want to be the only connection between the two companies or they can cut you out.
Bottom line with a commodity, if you can get product under market, you can get business. If you are one penny over market, your supplier is useless. Also with razor thin margins on commodities, transportation costs are a HUGE decider of profitability. It is often more profitable to sell as near the source as possible to minimize these costs.
I don't know what you are selling, but if there is someone also mining for it and selling it closer to your intended customer, they will probably be able to undercut you profitably.
My advice is to see what kind of quotes you can get on material do some research on how competitive that is and how much room there is for you.
I have worked in commodity chemicals, but our business primarily deals in our own proprietary blends right now. The commodity stuff, for me at least, has always just been the "good old boys club" type of deal someone knew someone and we put a deal together on contract for a long time. OK margins at best, but the value is in the fact that it just goes forever. They are not company builder deals, but they are bill paying.
Is it possible to broker a sale between a buyer and a seller? Yes. Absolutely.
I would say it is better to put your own financing and transportation together and bill the customer yourself. I would want to be the only connection between the two companies or they can cut you out.
Bottom line with a commodity, if you can get product under market, you can get business. If you are one penny over market, your supplier is useless. Also with razor thin margins on commodities, transportation costs are a HUGE decider of profitability. It is often more profitable to sell as near the source as possible to minimize these costs.
I don't know what you are selling, but if there is someone also mining for it and selling it closer to your intended customer, they will probably be able to undercut you profitably.
My advice is to see what kind of quotes you can get on material do some research on how competitive that is and how much room there is for you.
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