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Converting 10% homes to Pellet Boilers!?
Posted: 02 June 2008 05:22 PM   [ Ignore ]   [ # 91 ]
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I’m not being combative just realistic.
Ever heard of 30% debt to income ratio. This is one of the things the bank looks at to determine wether a company is credit worthy and stable. If it takes $500,000 to start up this business ,it needs to gross $1.5 million/year to be profitable.
Enough said.

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Posted: 02 June 2008 09:52 PM   [ Ignore ]   [ # 92 ]
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PelletOwner - 02 June 2008 04:53 PM


If you don’t have to do as many deliveries, you can make the position seasonal

hey leeswoodco
would you like to depend on am “seasonal” employee to make your deliveries for you?

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steve

burning small grains in two pc-45 harmons 1 ussc 6039hf and 1 dove cornstove

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Posted: 02 June 2008 09:56 PM   [ Ignore ]   [ # 93 ]
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Sting - 02 June 2008 02:33 PM
ugenetoo - 02 June 2008 01:33 PM

i will always remember the town drunk telling me one day when he saw an oil delivery truck go by;” it dont make much sense to be burning that stuff over here. ill bet they dont burn wood over there in the desert.”
i

Thats a great quote Steve!

actually… that quote is from me. our town is so small that we dont have a town drunk.

whoop whoop whoop

we all take turns!

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steve

burning small grains in two pc-45 harmons 1 ussc 6039hf and 1 dove cornstove

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Posted: 02 June 2008 10:03 PM   [ Ignore ]   [ # 94 ]
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I’m gonna close down this thread - getting too long and off course.

I think we know that there are a lot of variables involved.......and that, in business (as ANYONE who has done it can confirm) EVERYTHING costs more and takes longer than what you first calculate. That has always been true for me!

I think it is also clear that there are massive logistics involved in moving millions of pounds of pellets, keeping them dry, getting them paid for, etc.

I would not be surprised if, in the end, the pellet supply business was 100% separated from the boiler part. You CAN make $$ on appliances and installation.

All in all, I’m please that people (and capital) are taking the chances. But that does not make it any less of a risk! Tying oneself to a single source of appliance, service and fuel supply is inherently risky. If a corporation does not do well, they can simply close up shop and there goes the warranty, service and all the other promises and paperwork.

Maine Energy is reaching for the sky - thinking fairly big....and they probably have some $$ to do so. I’m a small time thinker myself, often finding that the taller they stand, the harder they fall.

It will be interesting to watch this all come to fruition.

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