Pellet Shortage ??????

More of a distribution problem. A couple of store managers told me they can order enough pellets but lining up the trucking is their biggest problem. Part of this is growing popularity that the manufacturers haven't kept up with yet, but will in time, and part of it is panic buying. During the gas shortages of the seventies and eighties, studies after showed the panic buying had much more to do with the shortage than lack of supply. Everyone was topping off their tanks rather than staying with normal buying patterns and it screwed up distribution. Same as folks cleaning out a supermarket just before a big storm, even though it's totally unnecessary.

No pellets in any lowes around me

Same deal in this part of the continent. But it's not just trucking - I think it's right through the chain starting at the raw material supply.

Maybe it has something to do with the lawn mowers and pool chemicals I see being pushed this week. And the fact I cant get sheer pins for the snow blower at sears and roebucks but can get a new bathing suit. There lies the problem on what these stores are ordering and pushing

I had a shortage over here also since last week, Some just came in this morning.
Wow.... shortage and I'm 30 miles from the Cubex plant.

"Shortage" at every HD except Londonderry (maybe Keene?) in southern NH - even those that have scheduled deliveries aren't getting them, or getting them late. Does sound more like a distribution issue, like Peterfield said - around here anyway.

No shortage at my house.

LordmetalZ28 said:

And the fact I cant get sheer pins for the snow blower at sears and roebucks but can get a new bathing suit. There lies the problem on what these stores are ordering and pushing

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Profit is the American way anymore. One ton of pellets may make a retailer $100.00 in profit but one ton of swimsuits will make them several thousand.

The local dealer in town looked at me like I wash high when I asked about pellet shortages a few weeks back. They have parking lot full in town and he says their supply silos at their packaging facility are all currently full too. For the record the only smoke I breathe in comes from my pellets or my plasma cutter.

elevenMracing said:

The local dealer in town looked at me like I wash high when I asked about pellet shortages a few weeks back. They have parking lot full in town and he says their supply silos at their packaging facility are all currently full too. For the record the only smoke I breathe in comes from my pellets or my plasma cutter.

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Keep in mind that things as we know them (in the midwest) change dramatically once you cross the Delaware Water Gap in Eastern Pa.

What happens in the east, may or may not apply to the rest of the country.

SidecarFlip said:

Keep in mind that things as we know them (in the midwest) change dramatically once you cross the Delaware Water Gap in Eastern Pa.

What happens in the east, may or may not apply to the rest of the country.

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I've kind of gathered that from what I've seen posted here. I don't often travel far from home, but it seems that as you head South or East from here most everything gets more expensive. Glad I live where I do, even when it's cold as a witch's teat in a brass bra and re-snowing sideways like it is here right now.

Far as I can tell, only east and not south for inflated prices. Must cost more in transportation fees to ship things out east or something.

And if you are in North-East it's a double banger...just came back from Rona at 6.29/bag for a less quality one.
They were 5.50-5.68 in December.....
As far as I know it's not because of Gas Prices

funflyer said:

Profit is the American way anymore. One ton of pellets may make a retailer $100.00 in profit but one ton of swimsuits will make them several thousand.

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FYI- profit on a ton of pellets is no where close to $100, closer to 1/2 that amount.

Love the Heat said:

And if you are in North-East it's a double banger...just came back from Rona at 6.29/bag for a less quality one.
They were 5.50-5.68 in December.....
As far as I know it's not because of Gas Prices

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For comparison, took the attached pic at my dealer about a month ago:

shortage = conspiracy to drive ip prices in order to raise profits. We've seen in the petroleum industry, food industry, beef, pork, and poultry industry. It was only a matter of time until they got greedy.

SidecarFlip said:

What happens in the east, may or may not apply to the rest of the country.

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+++

Douglas Fuhr said:

FYI- profit on a ton of pellets is no where close to $100, closer to 1/2 that amount.

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$50 profit?.. we wish....

Dan

elevenMracing said:

For comparison, took the attached pic at my dealer about a month ago:

View attachment 153576

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Hummm...Makes me feel a little better cheers

Last year my store was making 38 cents a bag profit on pellets... that was on the per bag price before the $10 off for buying a full ton.

Despite being a windbag, I will leave the name calling to others...
It's not worth getting in to it.

I always try to make understood, that my comments are relative
to OUR area, and not everywhere..

The one positive thing I can offer, is that I actually work with pellet sales.
Maybe the Lord Z28 does too, he just has a different business model.
Ours has worked for quite a while, but... whatever.

For sure, I can tell you, at least here, there is no $100 or even $50 profit on a ton of pellets.
Believe what you want.

I know some of you guys believe this conspiracy deal, but with all due respect, it is flawed thinking...
Today, because all the nearby BBS are out, and our supply is limited,
we were selling a15 bag limit. We load for you, bag by bag.
Most of these people would have taken a ton or two.
You sell a ton, you load the pallet on their vehicle in minutes.
Now you do the math... Sell 50 bags in minutes, or load bag by bag, 15 to a customer
in their back seats, or trunks, or under pickup covers.
It's labor intensive. Added labor is time and money..

As for the distribution.
I've mentioned this before. The truckers that bring our material down from Canada,
do not like to go back there empty.
If they can't broker a load back, they don't come down.
And you can't absorb the price for them to go back empty.

So the result is, the product that would like to be sold here, is sitting in a yard.
If it sits in the yard, nobody wins.
It's not that complicated. At least to those that understand how things really work,
and not how others claim it works...

Now I hope some read this stuff, and get it.
If you don't, that's fine, but I see no value in childish name calling...
Or trying to convince those that do, otherwise.
But we have nothing to gain at all, by not telling you how it is.