Nick Name
Nitro Member
- Joined
- Jul 8, 2006
- Messages
- 2,110
- Age
- 80
- Location
- Willow Springs Raceway
Just speculation:
Suppose you were representing an American manufacturer of nitro and together you became the official supplier of fuel to a sanctioning body by paying a "fee" for each barrel sold. To keep some happy, you hire your previous competitor who brings his Chinese brand of nitro with him. After a short time you notice you make a bigger profit with the Chinese brand and start pushing it over your American brand. As the American brand supplier what would you do?
Over time you get greedy or through mismanagement, you keep raising the price to your consumers and they find other sources. In the meantime, you are falling behind in payment to your Chinese supplier and the amount in arrears is approaching a cool million. As your Chinese supplier, what are your options? Especially when there are at least three other importers of nitro that will buy your product and pay their invoices on time. And these importers have viewed large wharehouses filled with drums of nitro ready to ship.
It seems there is only a shortage of nitro with one company, and that company created their situation. It will affect the sanctioning body, but they have talked to other suppliers that can pay their "fee" and still sell a 52 gallon drum of 100% nitro for $900.00 and make a profit. Others refuse to pay the "fee" and want open and fair competition among suppliers, which should be the American way.
Again, this is all just speculation on my part. Any similarities to real situations or actual people is just a coincidence and should not be taken as fact.
Virgil;
Always enjoy reading your post. You are not on these boards nearly enough these days.
Jay