Thanks for the Tip on the MWP @ BT's. Hauled in 4 tons so far for my Brother and me. Oink Oink. [/URL][/IMG]
WOW. Lets see..... I can get Spruce Pointe for 290, LaCrete for 299 or 279 for what Lowes has. Tough call .....NOT
Oil is down to $2.10/gal here now. If the price remains this low (and I know, that's a big IF), I suspect it's going to be difficult for many folks to justify heating with pellets this season. Also of interest - from everything I'm reading, the price of pellets is only going to go UP. Hmmm...could this be the season when the pellet supply / demand situation stabilizes? Possibly tip in the other direction, where supply exceeds demand again? Many of the pellet burners I know don't even start looking to fill their stash until Sep - Oct. If oil prices are still low at that time and the best deal to be had is $269/ton at HD or Lowes, I can definitely see them skipping pellets for the year. I for one am very interested to see how this will play out over this winter.
I was at Walmart on Sunday so I stopped in the garden section and asked the kid to verify the price of the Penningtons. Confirmed $5.64/bag. He asked did I want to know the price for a ton, he could check with the manager. I said don't bother. Really wish we could get MWPs, and for the same price you get them!
Using your figures, and average efficiency numbers for both, that will have oil $3 cheaper per million BTU's. From what I've heard, oil is supposed to continue it's downward price slide through the rest of the year. Could be a rough winter for pellet producers. http://www.oil-price.net/en/articles/top-6-reasons-oil-price-are-headed-lower.php Doug, you out there?
I am, but did take a quick trip 3 day trip to the West Coast for some family and see some friends.. I don't have a crystal ball, so I have no idea what the future holds, but I do know my sales in NE are up over 100% so far this year. We have signed several new customers and current customers on average are buying more from us than last year and their sales seem to be very good so far this year and strong so far....for the most part. I will say that is if someone has bought a stove from $2500-$5000+ common sense would dictate they probably are going to use it....I know I would, regardless of the price of oil...and everyone is aware of the advantages of burning pellets over whatever else. Will we loose some sales to heating oil this year?..maybe, I don't know....time will tell and we will do our best to supply the market as best we can...if they want to keep using pellets and our product.
Up 100%, impressive! Is this across the board for all of your flavors?? Is any one in particular doing better than usual?
IMO, last winter will have a lot of people scared and buying pellets as "insurance", but I'm not sure about you're comment about people burning their stoves just because they have them. People want to save $$, and if dino/gas are cheaper throughout the winter, I think that's what their going to use. And your statement that YOU would use pellets....LOL.....well, duh, if I were you, I would too....LOL.
I have belonged to an energy buying group since 2001 where I have the option to pre buying or gambling on Rack Plus oil pricing and pay as you go. As of yesterday, the oil provider for my area was at 2.0036 for Rack Plus and has been trending down. They have not offered a pre buy yet but man I wish I had 2 or 3 tanks in the basement right now because I would fill them all. Pre Buy is likely to be around 2.30-2.40 so Rack Plus is very attractive if oil doesn't spike. My plan this year is to get a few pallets of pellets, maybe 300 gallons of pre buy and then gamble on Rack Plus for the rest. If oil spikes, I will have at least 3 ton of pellets to get me through. Here is my Rack Plus pricing for the month of July
My pellet house says the same as his sales are through the roof last year and this year too. Heck he has sold 200 ton of Oike Douglas Fir at 360/ton this year alone. Dont forget that most pellet stove owners still have a furnace that still works as well. I bought my stove in 2009 so it has been paid for and continues to run great (Love my Harman P68 !!). That being said the stove is paid for in many ways and I have no problem using the stove less and oil more if it makes financial sense for this year. Next year may be different if the pellet produces come to their senses. Unfortunately they will most likely take the easy route and send their product overseas while filling their pockets.........
Rural King has pellets for $200/ton, but I didn't recognize the bag, and couldn't get the plastic wrap pulled back far enough without ripping it, so I left them alone. Historically Rural King has had pretty chitty pellets, so I'm not that interested. I already have three tons of Sets in reserve, and will likely burn mostly propane and corn this year anyway.
I bet the majority would go with the cheapest. I know I would. If electric was cheaper, My stats would be turned up/on and pellets would be used as back up/reserve. "IF" I can find some cheap firewood, I'm seriously considering using the old wood stove when we are home and turning the pellet stat down to 60ºF.
Paid just as much for my furnace...So I will use whatever fuel is cheaper! What is my advantage burning pellets over propane....Enviromental?
I got somersets for 249.50 a ton on sale. The price now went up by 30.00 dollars a ton. It is crazy the prices here this year. I called home depot, and they want 270.00 a ton. At least you found the good buy at TSC as well!
