Blazer (West Oregon Wood) closed their doors this week

I agree i an afraid of what is to come if oil doesnt rise to $55-60 a barrel. I feel like there is a lot in the pipeline that didnt sell. And that might be driving shutdowns. I phyically dont think upton could bage more product, as there is no place to physically put them. Think abou that they have 6.5+ acres covered in pellets. And they are mostly just a bagging operation.

 

maybe I misunderstand you, but if a retailer is marking up $5/ton, he's losing money, and ALOT of money! (Who said $5/ton?) Definitely agree that folks jumping into the biz this year got hurt, but that's the chance you take, especially when the retailer has no clue what they are doing.
Gouging? yea, maybe it happens, but its all a matter of viewpoint. No one is forcing someone to buy THAT pellet...they can go elsewhere. Caveat Emptor.

 

Yes and no. Certainly if one believes in a laissez faire economy that is true. In our modulated capitalistic society caveat emptor carries little meaning, and it shouldn't.

I doubt the pellet industry would ever accrue the mass where price gouging would become a concern. As long as small regionals remain viable the industry will find relative balance between supply and demand. ...... ALTHOUGH

If current trends continue the industry will soon be controlled by financial markets because only a few large national makers will be able to survive. If that happens we will believe we are being gouged.

 

Ditto. I also know they will have overstock of Salt, Shovels, ice scrapers and Snowblowers. Unavoidable at times.

In the 2007 IIRC, we had a lousy winter, <18" snow. In late February or early March, they had a clearance on Snowblowers. I bought a Toro single stage for 30% off ! New in box They FLEW OFF THE SHELVES, and They still carried them the following years.

 

Bought my snow blower that year too -- Do not remember the discount, but it was large enough to retire one that was far to old and costly to maintain.

 

That's great !

I credit a internet chat group on power equipment for that purchase. Just like pellet pigs, we were all waiting for the " Turn it or burn it " sale. Sale went up unannounced, and we all swooped in.

 

The net is the great equalizer.

 

thanks to LW for all the input. much appreciated!

 

I just picked that figure at random. All I was trying to say is some vendors were most assuredly gouging. Case in point, a local Mom & Pop store down the road was selling Lignetics for $250 a ton through the ACE Hardware distribution network. Another store not far away using the same distribution network and was selling the same pellet off the same truck for $300 a ton. The store selling the pellets for $250 ton assured me they were making money on the sales (I know the manager well) and they were well aware of what the other store was charging and advised the pellets were coming off the same truck. Now the vendor has a right to charge whatever price they think they can sell their product for, but it is what it is and buyers have the final say and boy did they speak with their wallets this heating season an finally caused Lowe's to cave.

 

Well, Lowes is most likely clearing inventory out for Spring.....certainly the weather played a huge role in what folks burned quantity-wise, and with oil being cheap, they could of course burn it....Im not sure I buy it was all the consumers refusing to pay their asking price and waiting Lowes' out........

 

Geez, jay, its quarter to nine at night! Im old....gonna sit down with a book, fall asleep in front of the Harman P61 while it satisfies all my sexual desires!

 

Thanks.
This place has good mojo.
I've been tarred and feathered over at
"darth.com"

 

....ooooof!

 

and thats what I am burning currently as well! lol......gotta get some shades on my windows...Jay must be lurking out there somewhere......

 

eh, don't feel bad.....I got banned there. Couldn't fall in line with the establishment, and was retired to the wayside, along with all the other chaff who weren't seen as having valuable ideas/opinions (that means didn't agree with the far left-leaning mods).....meh, its better here.....

 

Yes it is