Is $6.30 a Bag Price Gauging ?

Maybe elevated, but probably not gouging. $315 a ton is not too far off of some of the prices from earlier this year on premium pellets. If this is coming from a local dealer, then it is likely even less to be gouging. They don't have the inventory management chain to help reduce prices. Based on what we're seeing right now, it's not a ridiculously crazy price.

In 2008 when demand spiked, some of the cheap pellets were selling for $280 a ton or more. And for most people, if the price gets too high, they'll just switch the furnace back on.

Best of luck!

No it isn't. From a purely economic standpoint when supply dwindles price must rise to curb demand.

john193 said:

No it isn't. From a purely economic standpoint when supply dwindles price must rise to curb demand.

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Not necessarily. When demand outstrips supply, you go without or find another heat source (coal). What could very well be happening is, to meet demand, mills are running overtime paying time and a half and double time plus perhaps using more costly electricity during peak hours. This would also force their raw material suppliers to work overtime.

UpStateNY said:

Is $6.30 a bag for Pacific Clean Fire Pellets price gauging when I just purchased 50 bags of pellets at Lowes for $3.99 a bag ?

Now I know right now finding a bag of wood pellets at Lowes and HD is extremely hard and close to impossible. My highest respect to both HD and Lowes for not increasing the price on wood pellets when they can sell 22 tons of pellets in a matter of hours. I also appreciate the Pacific Clean fire Pellets is an excellent product since I burned 1.5 tons this winter. With Pacific Clean Fire lower ash, I did not have to clean my stove as often this winter. With the shortage of pellets the Pacific Clean Fire price has increased significantly this winter when Lowes and HD have held the line on price increases.

I am all for supply and demand. I just think Pacific Clean Fire seller is taking advantage of the low supply and high demand just a little too much.

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That's cheap I'm selling box store pellets $8 a bag

dlavigne7324 said:

That's cheap I'm selling box store pellets $8 a bag

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now that IS gouging

UpStateNY said:

Is $6.30 a bag for Pacific Clean Fire Pellets price gauging when I just purchased 50 bags of pellets at Lowes for $3.99 a bag ?

Now I know right now finding a bag of wood pellets at Lowes and HD is extremely hard and close to impossible. My highest respect to both HD and Lowes for not increasing the price on wood pellets when they can sell 22 tons of pellets in a matter of hours. I also appreciate the Pacific Clean fire Pellets is an excellent product since I burned 1.5 tons this winter. With Pacific Clean Fire lower ash, I did not have to clean my stove as often this winter. With the shortage of pellets the Pacific Clean Fire price has increased significantly this winter when Lowes and HD have held the line on price increases.

I am all for supply and demand. I just think Pacific Clean Fire seller is taking advantage of the low supply and high demand just a little too much.

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Your not comparing apples to apples. The BBS pellets are alright and many find them very adequate for their stoves. The Cleanfire Pacifics are definitely a step up from them and are well worth the price diff.

Phoenix Hatchling said:

Your not comparing apples to apples. The BBS pellets are alright and many find them very adequate for their stoves. The Cleanfire Pacifics are definitely a step up from them and are well worth the price diff.

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Nice Weim. Keep you on your toes...

Ktm300 said:

Nice Weim. Keep you on your toes...

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Yeah he's a cool boy. Definitely more reserved than my first one.

Vermont Wood Pellets at the mill $6.00 per bag, 10 bag limit.

Sounds like you pellet heads need to get on a 3 year plan......

dlavigne7324 said:

That's cheap I'm selling box store pellets $8 a bag

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And you're proud of that????

tjnamtiw said:

And you're proud of that????

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Evidently.

UpStateNY said:

Is $6.30 a bag for Pacific Clean Fire Pellets price gauging when I just purchased 50 bags of pellets at Lowes for $3.99 a bag ?

Now I know right now finding a bag of wood pellets at Lowes and HD is extremely hard and close to impossible. My highest respect to both HD and Lowes for not increasing the price on wood pellets when they can sell 22 tons of pellets in a matter of hours. I also appreciate the Pacific Clean fire Pellets is an excellent product since I burned 1.5 tons this winter. With Pacific Clean Fire lower ash, I did not have to clean my stove as often this winter. With the shortage of pellets the Pacific Clean Fire price has increased significantly this winter when Lowes and HD have held the line on price increases.

I am all for supply and demand. I just think Pacific Clean Fire seller is taking advantage of the low supply and high demand just a little too much.

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If he was selling them for $4.00 would you buy a couple of ton? Yep probably. And then there wouldn't be any for anyone else. That's just the way it is at the end of a long cold winter.

UpStateNY said:

Is $6.30 a bag for Pacific Clean Fire Pellets price gauging when I just purchased 50 bags of pellets at Lowes for $3.99 a bag ?

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Absolutely not. I'm guessing that those $6.30/bag pellets are from a small dealer..
No way can you buy pellets for the same contract price as the BBS...
They have been going up and up and up for smaller dealers for the last 6 weeks.

My highest respect to both HD and Lowes for not increasing the price on wood pellets when they can sell 22 tons of pellets in a matter of hours.

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I have no respect for them when they do that.
In our area, people are driving an hour to pick up 5 bags from local dealers.
I've seen people nearly in tears that they found some pellets, as they
woke to a 50° house. And can't afford the 100 gallon min of oil at $3.79.
One dealer nearby had gone to a two bag limit. he won't forever, but it was today.
When the BBS sells 22 tons in an hour, that is the easy way out.
You help 22 people.
When you sell 5 bags a whack, you help 220.
But the work/money involved in doing it that way, bag by bag, is astronomical
compared to loading a skid on a truck and waving good bye..
So... you pay more.. it costs more to sell them.... so you make less/work a lot harder,
and you try to keep the price affordable.
Gouging? I think not... Trust me.

Dan

What did you initially pay for the clean fires? I always thought that dealer overcharged year round.

Right now I would pay $8.00 a bag if I could find them, the good news is I don't have to empty my hopper to vacuum fines, it has been done "naturally"

UpStateNY said:

Is $6.30 a bag for Pacific Clean Fire Pellets price gauging when I just purchased 50 bags of pellets at Lowes for $3.99 a bag ?

Now I know right now finding a bag of wood pellets at Lowes and HD is extremely hard and close to impossible. My highest respect to both HD and Lowes for not increasing the price on wood pellets when they can sell 22 tons of pellets in a matter of hours. I also appreciate the Pacific Clean fire Pellets is an excellent product since I burned 1.5 tons this winter. With Pacific Clean Fire lower ash, I did not have to clean my stove as often this winter. With the shortage of pellets the Pacific Clean Fire price has increased significantly this winter when Lowes and HD have held the line on price increases.

I am all for supply and demand. I just think Pacific Clean Fire seller is taking advantage of the low supply and high demand just a little too much.

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Think you mean "gouging" but we know what you mean... I paid $5.78/bag for Okanagans which is the normal price for a ton.

UpStateNY said:

My highest respect to both HD and Lowes for not increasing the price on wood pellets when they can sell 22 tons of pellets in a matter of hours.

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me too...

Pete Zahria said:

I have no respect for them when they do that

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Proof there is two sides to every argument...BTW HD and lowes has the personnel in place to sell pellets by the "tablespoon" so saying its "the easy way" doesn't hold water with me...just saying...

Personally I hate HD and Lowes....cheap crap....but I buy there because they have cheap...crap Please no flame intended

Woody1911a1 said:

now that IS gouging

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Unless you know what he paid for them you can't know whether it's gouging or not.

When the cost differential between oil and pellets gets closer I`ll turn up the thermostat on the boiler .
Each of us has a benchmark for that situation , based on whether we feel the extra work associated with burning pellets is worth the savings.

MCPO said:

When the cost differential between oil and pellets gets closer I`ll turn up the thermostat on the boiler .
Each of us has a benchmark for that situation , based on whether we feel the extra work associated with burning pellets is worth the savings.

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I see a pellet "mill " in my future... we will see... at current prices its not worth my time...BUT....

iceguy4 said:

...BTW HD and lowes has the personnel in place to sell pellets by the "tablespoon" so saying its "the easy way" doesn't hold water with me...just saying...

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It takes a lot less time and effort, to load a ton with a forklift, than it does to
break down pallets, move them into the store, and help people load them into
the trunks of their Camrys..
The number of people you have has no bearing on this.
The more people/time you spend on something, the less you make on the deal.

Just sayin'...

Dan

tjnamtiw said:

And you're proud of that????

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Hey people are willing to pay it so there is a demand Not bad for $400 ton sold 6 tons .. And people say the economy is don't good .. I bet to differ