Thanks Pell it...that is a very good idea...I should probably look into that.... I guess the packaging plant we have in Upton doesn't qualify huh?.......We have "super glorified" horse bedding....big difference.....
Doug I'm going to agree and disagree with some of what you said , I worked in the garden dept of the orange Big Box and before that spent 20 years working for several Nursery / Garden Centers on the East Coast,so you understand I'm not talking out my azz Most of the bagged goods come in on flat beds , it can come in a van ,it's going to cost more in labor takes 2 guys to load and unload ,fork lift driver and a guy in the van with a pallet jack . I agree it's a smaller window 8 months long peak months mid April to end of June . Never saw anybody lined up at the big box for topsoil or mulch , but on a weekend in May we can move several trailer loads of each and run out and have customers pizzed that we are out and waiting for the next delivery ,just like with pellets . Bottom line to me is that it's basic supply and demand with the available trucks , they got the upper hand for now and can demand top $$ for their service ,and if you aren't willing to pay some else is , In the end the consumer pays more as the costs are passed along . So shoot a hole in it if I'm off base
No, I won't disagree with this....but there are far more 53' dry vans in use than 48' flatbeds....but you are correct, it all comes down to how much you are willing to pay either per hour or per mile....but basically you are paying for someone's time. Something with more margin in it can afford to pay a little more for trucking... Pellets on the other hand are a low margin business, but an easy haul, but we certainly can't overpay for trucking, or this board would howl even louder than they currently do ...cause of the prices they have to pay......
Don't get confused again. No one HAS to pay for pellets. The consumer has many different options on how to heat their home. I currently have three and can switch between them with ease depending on convenience and cost. Every one has their own equation of what makes sense for their home. But savings is normally the number one factor.
Correct...but they normally have to pay for something to heat their homes with and pellets for a great many are their #1 choice....I have no confusion about that whatsoever......
Doug ,before you say it I know that you don't set the retail price ,but you do have an influence on it .
But why is it their number one choice?? Savings, that is why (a few exceptions exist). If you are not especially careful with cost you lose your only advantage to other sources.
Okay fellow firewood hoarders, and especially you will711 . It's time for a little English Grammar Lesson with an education on the importance of the comma.... Read the following sentences and note the emoticon at the end. No Beer can be served 24/7. No, Beer can be served 24/7. Carry on with your discussion!!
No I really don't. Every dealer is free to set their own price, depending on what their market will bear, how much margin they feel they need to make to cover overhead and make a fair profit. They didn't get in business to have me...or anyone else dictate to them what they should be charging for what they sell. I have very few conversations with dealers about pricing....other than what they are paying us...which is why if you Google or use my dealer locator, you find prices run the range ..... some sell more than others, some deliver, some carry only one of my brands and some carry all three. With some dealers, I am the only pellet they carry, other carry over 20 different brands. Every dealer has their own set of needs and they are free to charge what they feel they need to.....as do we.
Without getting into a long drawn out discussion, what I hear most is that they prefer the "kind" of heat that pellets produce...and there are plenty of people that buy pellets that price or saving is not even close to their #1 reason for buying them...it boils down to a matter of choice ...some do it for the savings, some just really like using pellets...who am I to argue with them....I'm supplying a product that there is a demand for...nobody forces them to buy my brand or anyone else's, and since our sales are growing, I would say the market likes what they are getting...but you can say that about the pellet home heating in NE generally.....pretty blanket statement.
This is true ,but you set the base line from where the dealer can figure how much he can charge, wholesale sets retail ,that's all I'm saying . I know you don't tell them what to charge . Agree it's what their market will pay.
There wouldn't be one single pellet manufacturer in the world if they only sold to those that "enjoy the kind of heat" as the primary motivating factor. You could add up all the other none monetary factors as well, and you still wouldn't have one plant that could stay in business.
One thing we forget are the pellet burners that are burning them because they can not afford a minimum fuel oil or propne delivery, so they are buying a few bags of pellets every few days. Gary
