Blazers
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Boobo0
Member
kniffin you got it made from where you're located, I'd be all over that! I'm in the 95/495 belt and there's just no sensible way to get there ..........BS!
Okay, most of the folks talking about Blazers at $239 or so, are referring to Home Depot's price. The other places that have any kind of DF pellets are all in the mid-$300s, just like you found. That's why people are snapping them up, they're a bargain. Can you tell us if the Blazers an hour west of you were at a HD or not?
Tonyray
Minister of Fire
I paid 5.16 a bag at HD Couple weeks ago.
picked up 35 bags since my basement has 5 tons and had to really scrimp for some room.
thought it was a mistake at those prices....[and many people we're still going for the pallets of Stove Chows since they thought the blazers we're just another Ashy shoulder brand from HD..] my win/there loss..
Peterfield
Minister of Fire
Pete Zahria
Minister of Fire
You should really look into what it costs to sell pellets.
With all due respect, I don't think you know what it cost to be a vendor..
Let's forget HD and Lowes.
You are talking local vendors.
If you had to order 24 tons of pellets and send a check for ~$7200 to get them
But you need to order say 10 loads.. say $72,000.
And yes.. you pay for them first.
what would you charge?
And you had to buy a $25,000 forklift to unload/load.
A $55,000 truck for deliveries.
Have a couple of acres to store product.
Rent, or build a building.
Heat it... lights... insurance..
And a bunch of other crap needed to run this business.
And try to make a week's pay, maybe two if you can afford help..
Seriously.
Try to figure a price you'd have to get per ton, to do that.
What would you sell a ton of Blazers for?
I'd really be interested in what you think you could sell them for.
Peterfield
Minister of Fire
I was thinking of big box stores and I am obviously not in the business but wonder why the same pellets are $1.50 more per bag in one year at the same store. Wages haven't gone up, trucking costs haven't gone up and with fuel costs significantly less than last year, it wouldn't be unreasonable to project that they went down some. I'm saying that in a capitalistic system like we have, some businesses will gouge the public without hesitation. Forget pellets and talk about gas stations. When there is a gas shortage and I'm old enough to remember a few of those times, some stations raised their prices well above others, and the kicker is they got the gas off the same truck and from the same distribution center. This forum is ripe with examples of the same store charging 20% to 30% more for the same brand of pellet this year. I believe it's not just business costs that drove the costs up. You might be right, but if the temperate weather holds much longer, I highly doubt prices will stay where they are now.
Tonyray
Minister of Fire
Not to be a wiseguy here, but I wouldn't include cost of equipment
and land that the owner prob already had for years.....might make big difference...
Pete Zahria
Minister of Fire
We took delivery of a brand new forklift yesterday.
The used one before was bought for the same purpose.
The only thing sold here is pellets and coal.
How can you possibly not figure that in?
But even still. Go ahead. Take it put of the equation.
You tell me what you or Peterfield would sell Blazers or a good quality DF pellet for.
I'm just curious. Maybe we figure it wrong.
Peterfield
Minister of Fire
Pete, you have insight most of us don't have. I guess the layman's answer would depend on how good a negotiator I was when establishing a wholesale price to procure them. I am assuming you all have similar costs of doing business. For instance, wouldn't most have a fork lift? Don't you all pay similar shipping costs? I make it a point to visit both big box stores and Mom and Pop stores and I agree pellets are more expensive than at the big stores and I figure volume has a lot to do with that. What I can't figure out how similar sized stores sell the exact same pellet for a $1.00+ more a bag. I can only surmise their costs of operating are markedly different or one got a much better wholesale deal than another. As a consumer, I can be sympathetic with a particular store's plight but I need to stretch my purchasing power as much as I can and if we are talking the same exact product, I would be inclined to buy the $5.00 bag versus the $6.00 bag.
Pete Zahria
Minister of Fire
Don't get me wrong... I am not getting on your case at all..
But the most of your comments have been directed toward non BBS.
That said.. I am guessing you are referring to local guys. Small businesses,
Feed stores, hardware stores etc... That is the only option to chains.
For those (like us) there is no "negotiating". You deal with a distributor.
Here is the price... That's what it is. You mark it up enough to cover costs
and a pretty small profit. Or else you won't sell anything.
When we were the only place to have pellets last year we paid as much as
$285 a ton for Orford, Satisfaction, Ambiance.. Whatever we could get our hands on.
Sure some may charge a buck more. But they may turn the same profit
as a place with lower overhead.. In other words someplaces could charge $.50 more
but make less profit. Established stores, those that have been around for a while,
didn't get that way by being gougers... Don't lump BBS, Craigslisters, and small owners together,
is all I ask...
But the most of your comments have been directed toward non BBS.
That said.. I am guessing you are referring to local guys. Small businesses,
Feed stores, hardware stores etc... That is the only option to chains.
For those (like us) there is no "negotiating". You deal with a distributor.
Here is the price... That's what it is. You mark it up enough to cover costs
and a pretty small profit. Or else you won't sell anything.
When we were the only place to have pellets last year we paid as much as
$285 a ton for Orford, Satisfaction, Ambiance.. Whatever we could get our hands on.
Sure some may charge a buck more. But they may turn the same profit
as a place with lower overhead.. In other words someplaces could charge $.50 more
but make less profit. Established stores, those that have been around for a while,
didn't get that way by being gougers... Don't lump BBS, Craigslisters, and small owners together,
is all I ask...
Peterfield
Minister of Fire
LordmetalZ28
Minister of Fire
Last night I saw green teams for 7$ at one box store then the other box store around the corner had awf white pine for 4.99$ a bag. I mean SERIOUSLY. You can't tell me thats not gouging and unnecessary. The better pellet for far cheaper.
Tonyray
Minister of Fire
My assumption was that a pellet dealer does not buy a new fork lift or land every year to do business.
Pete Zahria
Minister of Fire
Whatever.
I never said they did.
But how do you pay for your equipment if you don't figure it in to
your cost? Where does this money come from?
I'm all done with this thread... It seems pointless..
Tonyray
Minister of Fire
fine but if dealers are not making a profit like any business that has to figure Costs,
they would all be out of business by now and it would be Big Box stores or nothing.
A bad year now/then but not year after year.
Just a couple of things. First off, any Blazer's showing up in the North east are a product of HD making a HUGE mistake being under supplied in that market, or predatory pricing. I live within 300 miles of the plant and Blazer's sell here at $249.00 per ton at the stores. The FOB mill price at Blazer's is 184.00 per ton. There is no way to get them to the Northeast for less than $100 per ton, rail truck or intermodal. Btw even with the price of fuel going down the rate surcharge is STILL 30.5%.HD can afford to take a huge hit on freight, no local dealers can. All pellet mills have seen a large escalation in their costs. Energy and raw materials shortage's have been pushing costs up. One area of particular concern is liability insurance. many pellet mills have seen their premiums double of triple. With all the dust in plants, explosions are common. some mills are paying 5 figures PER MONTH for coverage. Finally, very few of the dealer's gouge.Gone are the days of making big margin's on pellets.
- Dec 30, 2013
- 273
If someone is willing to buy it for that price then there is a demand .. Peter bussiness can't be that bad if u just bought a brand new forklift ..
I hope HD keeps making the same mistake year after year so I can keep getting Blazers for $239 a ton. All jokes aside, thanks for the insight, I was hoping someone from out West would chip in with some local knowledge. Thanks!
Pete Zahria
Minister of Fire
When did I say it was bad?
I believe I was explaining that it is a tough business..
If you have a cheaper/easier way to unload trailer loads of product
by all means pass it on..
F4jock
Minister of Fire
I just scored 5 bags of Blazers at a far-off HD for $4.98 per. Gonna test them against my Lignetics.
Tonyray
Minister of Fire
just may be the cleanest pellets u will ever burn..Douglas Fir..
I bought 1 bag at HD few weeks ago to try.
next day I went and picked up 30 some bags when I saw barely any ash night before.
paid 5.16 Bag...
F4jock
Minister of Fire
Gonna have to go some to beat the Lignetics I'm using but I've heard so much about them I had to grab a test batch. Wife thinks I'm nuts 'cause we have tons of pellets but. . . .
Tonyray
Minister of Fire
Understand..
we have 5 tons in the basement and I somehow made room for 30 bags of blazers.
wife thinks I'm nuts .." your not even gonna use all we have this winter".
she doesn't understand that once you go low ash, ya don't go back if u can avoid it..
[It's a long ways from HD Stove Chows to the great stuff].
I have Energex golden pellets 0.5 ash but the blazers are even less ash...
F4jock
Minister of Fire
Yeah. They had Stove Chow as well. Passed them by. Waiting for the hopper full of Lignetics to empty as much as practical before I load the Blazers. Probably gonna be tomorrow. Problem is that this is the first time I've EVER seen Blazers around here so even if they beat the Lignetics I don't know if I can get a reliable supply.
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