2000-2001 was bad, and the Great Pellet Panic of summer 2008 was worse. I saw pellets going for $500.00 per ton on Feebay and a Harman P61 went for $5200.00. simply insane....
Now LW, about your delivery situation. If you cannot deliver pellets at a timely manner what do you think will end up happening to those customers? Just because you cannot or do not want to pay for more trucks you seem to be putting the burden on the customer to buy pellets earlier. Most customers probably don't want to or cannot shell out the money all at once six months in advance. And probably cannot store all they need at one time. I would think a lot of customers would be pushed away from pellets since it seems as if they need to do this. Doesn't seem like blaming or putting the burden on the customer is the best solution.
I know several people that can't store more than a ton at a clip. They are doing what they did late last season. Turning on the oil and using what pellets they can find as an offset. One is now burning horse bedding at $6.50/bag(from TSC and Blue Seal) because the local pellet dealer has a ten bag limit and at $7.50/bag.
To add more fuel to the fire, maybe if you don't have the space (just like wood) one shouldn't burn pellets or make more storage area so you can store more. Remember the standard oil tank holds over two tons of pellet equivalent in fuel. Maybe your freind/whatever needs to go places other than pellet dealers, there's Wallmart, Aubuchon, Lowe’s, Home Depot, TSC, etc .... If TSC hasn't got pellets then supply is likely part of the issue. I know that the local Blue Seal feed and needs store is having problems getting supply. There is currently an application that is being readied for filing with DEP for a new pellet plant in Maine. We will watch the proceedings with interest. Up here you have to publish a notice of intent to file and place the plans on file for the public to comment on and possibly request a full public hearing on. If people treat it as a seasonal matter then they shouldn't be surprised that the pellet dealers don't have another truck and more staff all year long. Even the big boxes remove the pellets in favor of patio junk and flowers for half of the year. I'm just a dummy that doesn't know much and am trying to forget what I did know as fast as possible so I can just answer, I don't know, to every question I might be asked.
I for one would not be going out of my way to buy horse bedding at 6.50 a bag. Too many other options. My concern is that if the local dealers do not figure out a strategy then the pellet industry will take a step backwards. Now I don't have any answers, but what's happening today and buy early is not the correct one.
Me neither. I told this fella several times to by a portable shed and fill it with fuel when they are available. IMHO, he has more $$$ than brains!! He didn't even get a ton when TSC had a lot full. He waited until he needed them before he bought his first bag. Well golly gee, They are out already, Go figure!! TSC should be getting a load today. If he hasn't bothered to check or have a ton put aside. That's his problem!
I'm seeing brands around here that I haven't seen in years. Nothing exotic, but it seems the Michigan pellets are a bit more scarce. I picked up 5 bags of AWF hardwoods this morning at Menards, and they have the AWF super premium softwoods also. I haven't seen those in at least two years. Not complaining, but it looks like the box stores are hauling in brands from farther away than the local mills.
What part of the country are you operating from? I'm just sure sure whether "Wanker's Corner, OR" is a joke.
I may be wrong on the price, though I think they help me out as I bought my stove and other things from them 9 years ago along with many tons of pellets. I usually go Blazers or Vermont. ( I have never bought a bag of pellets of any other kind, but that is going to change since I have joined this crew!!) I have the room in my garage for a lot of pellets so I will start grabbing some bags for sure!!
I love Robbins, it's literally less than a Mile from my house. I just cannot justify paying $300 a ton when I got TSC early buy for 225. Granted, it's a little more work but it's a lot of money saved. I bought my stove there as well and up until this year bought most of my pellets from them. Good people.
here is a listing from mainline Pellet Pricing SizeNew EnglandDry CreekVermontOkanagan 40lb Bag$6.50$7.00$7.00$8.00 Half Ton (25 bags)$150.00$160.00$165.00$185.00 Ton (50 bags)$275.00$299.00$299.00$345.00 Pricing and availability subject to change. We Accept Credit Cards Certifications & Associations mainline which is right down road from me:
I agree with you, but the time I do not have to pickup. I work 6-7 days a week. So delivery works well for me. I have not used more than 1-2 tons as I am never home and would rather not run a stove to keep 2 dogs warm! Does TSC/HD etc help you load your truck?
HD will deliver in most area's. TSC will help load, My wife is out of work So she stops down to get them, They load them for her and I unload when I get home.
Well, I imagine they can go somewhere where they can deliver the product faster (if they have the product). I have a responsibility to the folks who ordered their pellets earlier to deliver theirs earlier.....basically first come, first served. As for buying another $200-$250k truck, and hiring a driver who will work maybe, what, 3 months a year....no. The truck would sit, as well as having to lay a driver off doesn't sit well with me. I would have to sell ALOT more pellets to pay for the driver and the truck.....and right now, you cant GET the pellets...so, that same truck would be sitting.....which really isn't good for equipment, or the dude who would be laid off. I don't see me as putting the burden on the customer when the customer cant seem to plan ahead. Fact is, historically, pellet prices are lower in "off" months. I don't really subscribe to putting the blame on everyone else because someone waits till the eleventh hour to cover their heating needs. Besides, for those folks in a rush, we have them on the ground....pick them up. Rent a truck....borrow a truck.....make multiple loads with the van......etc. We probably wont see this issue in the same light...you as the consumer, me as the retailer. But, simply to me, it doesn't seem sensible to wait until its cold to cover your heating needs.........everyone is due their opinion tho!
agreed...something in the system broke down somewhere......or changed. Such as overseas shipping, etc. I don't think buying early is the wrong move though, especially given the circumstances. Now, certainly, if one doesn't have the funds at the time...sure.....valid point. Save even more money, and pick your pellets up! As for putting it all on the dealers......cant support you there. The dealers don't produce pellets, and like the end-user, many dealers simply don't have the room or funds to store thousands of tons of product. Some dealers were cut off at the knees by suppliers who wont ship their 4th quarter pellets....what can they do? Buy from their competition? Spend $6-10 MILLION and build their own mill? It doesn't make much sense either to buy a bevy of trucks that will only run when the customer decides to buy product, whenever that is. Apparently I don't have the answers either. We TRY to get folks to buy early, as there are many advantages therein. Product is usually cheaper and more available. It allows us to get to the back 40 when the weather is good rather than traverse snowdrifts in a forklift. There's not as much immediacy...no ones gonna freeze in June.....so, I guess that's MY strategy...it works for some folks who have the room or funds to buy early. It doesn't work for the folks who don't have the funds, room, or foresightedness to order early (procrastination). I guess my answer for those folks is to pick their product up?
Your preaching to the choir lousy weather. We are living the same craziness, just on opposite seasons. I go through this every spring. Ray
it is a joke, Hitch. I go to great lengths here not to profit from any site I contribute to....this allows me to speak like I want, and no one can accuse me of pushing my own product.
