VP PRESIDENT – “NO PRICE INCREASE”
Wed, 2008-08-13 23:35
CompetitionPlus.com has confirmed with VP Race Fuels leader Steve Burns
that nitromethane prices will not increase beyond the current price of
$1,822 when the NHRA tour reaches Indianapolis. This statement comes
after multiple sources told CompetitionPlus.com the price of
nitromethane will increase to beyond $2,000 at the event.
Burns added the price is likely to drop after the NHRA Fallnationals in Dallas, Texas.
“The price won’t go above $1822,” Burns said. “Most likely the price will decline after Dallas. I’m looking at the trends and the prices don’t appear to be getting any higher. CompetitionPlus.com has confirmed with VP Race Fuels leader Steve Burns that nitromethane prices will not increase beyond the current price of $1,822 when the NHRA tour reaches Indianapolis. This statement comes after multiple sources told CompetitionPlus.com the price of nitromethane will increase to beyond $2,000 at the event.
Burns added the price is likely to drop after the NHRA Fallnationals in Dallas, Texas.
“The price won’t go above $1822,” Burns said. “Most likely the price will decline after Dallas. I’m looking at the trends and the prices don’t appear to be getting any higher.
“What must be realized is that we bought product at really high prices. That product is just now getting here. What people are doing is taking shots at us to make us look expensive. They fail to look at our expenses and realize what it costs to do business.”
For health and safety reasons, you just can’t take delivery of a drum of nitro and just say, ‘Here you go, have at it.”
Burns added, “There’s a lot factors that must be taken care of before the product is turned loose and all of this adds up.”
Burns acknowledged VP Race Fuels has been under unfair scrutiny over their pricing. He’s adamant to clear up the rumors that are circulating throughout the racing community.
“We’re not upping the price on the nitromethane because of race gas sales,” Burns said. “We’re not giving the NHRA any kind of kickbacks. Such talk is ludicrous and not fair. There is no conspiracy out there to gouge the racers. I promise you that.”
In a prepared statement VP Race Fuels defended their handling of the recent shortage scenario.
“In other postings on the internet, it’s been suggested VP was not proactive in preparing for the nitro shortage. The fact is VP was as proactive as possible given the information available to us at the time. First, until earlier this year we were at the mercy of importers, i.e., middlemen. We ordered nitromethane in October 2007 from our supplier, fully expecting delivery in time for the beginning of the 2008 season. When our supplier failed to fill multiple orders, we became almost entirely dependent on VP’s existing inventory of nitro that, fortunately, was sufficient to see NHRA through the first part of this season. That inventory originally was destined for not only NHRA but our hobby fuel and industrial customers. In the end, it essentially saved the beginning of the 2008 season for NHRA. While dealing with these supplier issues through the off-season we, along with the rest of the nitromethane industry, were simply unaware of the impending worldwide shortage of nitromethane. The fact that the shortage did subsequently occur simply accelerated an already difficult situation.
“Note that VP itself didn’t escape injury from this shortage. By earmarking 100% of the nitro inventory for NHRA, VP had to forego all the business and profit we normally would see from the hobby fuel and industrial markets, both of which are more profitable to us than drag racing. It’s uncertain at this point if we’ll ever get all that business back. But the point is NHRA Drag Racing and drag racing in general is our core business.
“What has VP done since then? We’ve negotiated long term supply agreements direct with producers in China and also plan to open our own office in China. This will greatly facilitate our supply line and give us more influence on quality, shipping and other issues. We’ve secured storage bunkers for stockpiling a year’s supply of nitromethane, so drag racing will never again be held hostage by producers, government embargos or natural disasters.”
Burns added the price is likely to drop after the NHRA Fallnationals in Dallas, Texas.
“The price won’t go above $1822,” Burns said. “Most likely the price will decline after Dallas. I’m looking at the trends and the prices don’t appear to be getting any higher. CompetitionPlus.com has confirmed with VP Race Fuels leader Steve Burns that nitromethane prices will not increase beyond the current price of $1,822 when the NHRA tour reaches Indianapolis. This statement comes after multiple sources told CompetitionPlus.com the price of nitromethane will increase to beyond $2,000 at the event.
Burns added the price is likely to drop after the NHRA Fallnationals in Dallas, Texas.
“The price won’t go above $1822,” Burns said. “Most likely the price will decline after Dallas. I’m looking at the trends and the prices don’t appear to be getting any higher.
“What must be realized is that we bought product at really high prices. That product is just now getting here. What people are doing is taking shots at us to make us look expensive. They fail to look at our expenses and realize what it costs to do business.”
For health and safety reasons, you just can’t take delivery of a drum of nitro and just say, ‘Here you go, have at it.”
Burns added, “There’s a lot factors that must be taken care of before the product is turned loose and all of this adds up.”
Burns acknowledged VP Race Fuels has been under unfair scrutiny over their pricing. He’s adamant to clear up the rumors that are circulating throughout the racing community.
“We’re not upping the price on the nitromethane because of race gas sales,” Burns said. “We’re not giving the NHRA any kind of kickbacks. Such talk is ludicrous and not fair. There is no conspiracy out there to gouge the racers. I promise you that.”
In a prepared statement VP Race Fuels defended their handling of the recent shortage scenario.
“In other postings on the internet, it’s been suggested VP was not proactive in preparing for the nitro shortage. The fact is VP was as proactive as possible given the information available to us at the time. First, until earlier this year we were at the mercy of importers, i.e., middlemen. We ordered nitromethane in October 2007 from our supplier, fully expecting delivery in time for the beginning of the 2008 season. When our supplier failed to fill multiple orders, we became almost entirely dependent on VP’s existing inventory of nitro that, fortunately, was sufficient to see NHRA through the first part of this season. That inventory originally was destined for not only NHRA but our hobby fuel and industrial customers. In the end, it essentially saved the beginning of the 2008 season for NHRA. While dealing with these supplier issues through the off-season we, along with the rest of the nitromethane industry, were simply unaware of the impending worldwide shortage of nitromethane. The fact that the shortage did subsequently occur simply accelerated an already difficult situation.
“Note that VP itself didn’t escape injury from this shortage. By earmarking 100% of the nitro inventory for NHRA, VP had to forego all the business and profit we normally would see from the hobby fuel and industrial markets, both of which are more profitable to us than drag racing. It’s uncertain at this point if we’ll ever get all that business back. But the point is NHRA Drag Racing and drag racing in general is our core business.
“What has VP done since then? We’ve negotiated long term supply agreements direct with producers in China and also plan to open our own office in China. This will greatly facilitate our supply line and give us more influence on quality, shipping and other issues. We’ve secured storage bunkers for stockpiling a year’s supply of nitromethane, so drag racing will never again be held hostage by producers, government embargos or natural disasters.”
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