Where I was leading you with this is that the GREAT majority of those old tyme neighborhood stores no longer exist, for various and sundry reasons....poor management, people stealing, ever-changing marketplace, inability to compete with the low-priced big box chains, hassles of government regulations, and a myriad of other reasons. Due to competition these days, retail is a daunting task.....long hours, working weekends, etc., it generally isn't something you can appreciate unless you've lived it...I'm sure some of you have. Retail is NOT losing money....most modern hearth shops, etc., simply don't have the cash reserves or financing that their modern big box competition has. I maintain your store to be a VERY rare devil indeed, in that most of the old neighborhood stores we all recall and love no longer exist. We cant simply "match the prices" of our stupidest (or richest) competition and hope that those losses (so often put off as "the cost of doing retail business these days") will be offset by those big scores we make in other areas....big scores are fewer and far between these days. We simply have to watch our margin, watch our shrinkage, watch our costs....knowing these things, or attempting to forecast them at least, is what keeps us in business. We were incorporated in 1874....been around awhile. Don't forget also that the public has become increasingly mercenarial these days.....its easy to sell stuff when you're the cheapest, much more difficult to impart value in an items that's more money. Some folks see it, some never will, and that's their choice. I'm afraid maybe I am too close to the issue, but I cant really compare a $1000 deli loss to keeping over a million dollars in inventory. And the pellet buying pool is a fairly shallow one....there just aren't a lot of pellet mills and wholesalers. Business has become considerably more difficult over the years, and it doesn't appear to be getting better. Tough question.
When did the EPA get involved with pellet heating and what regulations have been imparted on the industry so far? I am sure the shortages are bound to get worse!!
You know, as the store converted to serving gas and fast food, the bussiness grew. We had a much larger grocery store open nearby, also two other fast food places. The grocery came over and braged how he was going to put us out of bussiness. Well, the two other shops and the grocery store are no more! What we found in food was to offer varity and make it delux. Ok to cover the cost with the right offerings. Trying go do it on the cheap didn't work. Use fresh products and make them full. Think of what you would want the product to be if you were buying it. Then be consistent. What one makes, the other helps needs to put out the same product. We also offered lobster and lobster sandwiches. Pizza was made with our own dough and with a full layer of each topping. As I said, don't skimp and they keep comming back.
Think of what you would want the product to be if you were buying it. Then be consistent." I love this concept!
Local Lowes is out. HD is oversold( either 4 or 40 tons in the red!) , not taking any orders. Unsure if any more arriving. The smaller shops are all out. And some of the local hardware stores are rationing 10 bags at a time. And it was 60 today, and 60 tomorrow.
If you are in an area that runs shortages, that leaves you little option but to be an early bird. However, these shortages don't define the pellet market. Most areas still still have plenty. It is a sorry situation when there is a retail oppertunity that is not be properly addressed. Even in last year's shortage game, we were able to get quality pellets. I was very impressed at the distance some of these places went to keep people supplied.
Im glad I always buy early, and convinced several others too. Right now its tough to find pellets under $300 a ton ! That's a real hardship !
Oil is under $3 now. Id use it for the quick heat up in the Am. Pellet stove is for the long, cold haul. I'm using my GAS boiler for now, but pellets once the cold rolls in Friday. Hmm, guess ill have to remove the RUM from the stove
I've been giving kudos to HD since then. I don't know if it was corporate providing for this area or the local manager, but it seemed like our local HD had pellets when others didn't. Larry and I benefitted greatly by this.
And many of these folks are still trying to supply their customers......but, well, product is scant. Some retailers are buying from other retailers, at nearly full retail, to get their folks over the hump....I know, we've sold to others....and they are good folks, just trying to "make it work". We've been bringing in railcars from out west (fir pellets), but lemme tell ya, THATS a learning experience as well.....not entirely reliable, and there can be significant damage. Problem with the distance is the investment and the cost......VERY expensive to do this, and ya have to buy the pellets in 100 ton lots (and pay for it when it ships), and then there is the time factor......weeks before you see the product....if you're LUCKY. Who knows what the market will be weeks ahead? Could be sitting there with 100 tons of expensive pellets that wont sell, and maybe with another car rolling?
which is good, but the HD in our area has none.....biggest retailer in the world, in the biggest pellet market in the country, and they run out.......
Just want to add something to this. When it comes to Lowes, HD, and TSC I am convinced the inventory manager at the store has a lot to do with this. Case in point. Within the past couple weeks, someone said they had been to Lowes and were told that not only did they have no pellets, but they didn't have any on order either. OK, someone needs to have their head checked there. On the other hand, the manager down at TSC told me a few months ago that they have a weekly manager call where each attendee places their pellet order for the week. He told me he was requesting 1o truckloads every week, and while I obviously can't verify that, I can tell you the place has had more than enough pellets to go around this whole season so far. It's like that picture I posted a couple weeks ago, these two TSC stores must have in excess of 450 tons each. I'm not saying this is the norm, or what should be expected of every store of course, but just that in some cases the lack of pellets isn't because there aren't any - it can sometimes simply be that the folks placing orders for the store are not doing a great job at ordering enough product for their customers. To not have any on order at this time of year is just crazy.
Agree x2. One of my brothers sold pellets and stoves for a few years. His invatory had a lot to do with his being proactive in ordering pellets. He did this 2008-10 then sold to another person who still does the same.
IHP did you ever grab any of those Purcells over at Robbins? I saw an old thread where you mentioned it and was just wondering. One of the ladies over there told me she prefers the Purcells over Blazers and North Idaho Energys, however I don't know what her criteria was for saying that. I wanted to pick some up for testing earlier this year before committing to a whole ton, but they got a little out of hand with their per bag pricing so I just passed on it. Still would love to try them one day though, every comment I have seen about them has been positive.
LW....welcome to my world...now do it with a bulk fleet of several dozen cars, both coming and going, with 3 different brands...the packaging and distribution. It's much ...much harder than it looks....and some people question why pellets cost what they do when you have to move them that far. But then again, I guess if it was easy (or inexpensive) then everybody would be doing it.... next year we plan to double the fleet again.....so we can also help service our clients with even more product...trust me, its A LOT of work and A LOT to keep track of. (I wish I only had to buy 100 tons at a time....multiple that by 10-15+)
I thought I hit the lick today. Then I went inside the agway. AWF white pine 9$ pet bag at agway. Limit 10 bags person. And a nice pretty sign with awf wp graphics 10 for $89.00. The kid said "because of the shortage ya'know." Sparing him the pedestrian economic lecture! I declined the less than noble offer I went out and scooped up an impulse ton of Vermonts, from local house.
It is a small place on State st. Next building down from the gas station. He was selling Athens then, napoleon and a few other stoves. He was also sellng Verizon cell phones at the same time. That first year, the Athens were horrid. They later cleaned up their act and now are called MWP. When he sold out to a partner, he had a surplus of stoves. They sell another brand of pellets now. Not sure what because I don't shop there.
