You're right, DSR should not take a loss or break even, DSR should make a profit.
Would DSR sell to VP for the new price, last I heard $1400.00?
That would be a profit of over 50% from the reported $900.00 he is currently selling it for. Btw, that is over 500% greater gain than the "evil" oil companies are making.
VP would not make a dime, actually they would lose with operating costs incurring, but, they would meet their obligation to NHRA and more importantly, the racers.
What say you DSR?
If, as has been mentioned, Don Schumacher originally bought the nitro as a hedge against runaway pricing, why should he be forced to be a part of the action he sought to avoid?
I'm curious as to the price Wego is currently charging for later deliveries. Just because VP (and by proxy, NHRA) is stating the new retail price is $1400 doesn't necessarily mean that it's the same for any supplier.
The argument that gas prices are exploding at the pump is a nice example of setting up a straw man. I'm unaware of the process that would produce nitromethane from Texas (or even Iraqi) crude. We're not talking about the production of Sunoco 260 here.
I'm not convinced that VP's acquisition price is the going rate. If you can't buy from the leading supplier bad things will happen. They would include:
Having to buy $6000 plane tickets to scour China for smaller suppliers willing to sell.
Paying the premium price that comes from middlemen/brokers/distribution companies adding their markup.
Paying the premium price that smaller suppliers have to charge since they lack the economies of scale that a larger supplier (or manufacturer) enjoys.
Companies other than VP may not have to pay the extra costs mentioned above. What kind of markup VP expects is another issue. An exclusive supplier deal reminds me of the cost-plus contracts once common in the aerospace industry.
That folly had serious repercussions where I live; The once proud McDonnell Douglas no longer exists and the Boeing that bought it out is on its last legs here.
Maybe it's just me, but I can't help thinking that a $1400 less-than-55-gallon drum of nitro is exactly like a $1500 hammer or a $8000 toilet seat.
I'd be happy to be corrected with actual numbers.