pellet prices inconsistent in ma

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JRA

JRA

Feeling the Heat
Nov 24, 2014
343
north shore ma
Purchased blazers on a prebuy special for 299 per ton with a 57 dollar flat delivery charge from pellets r us in acton ma. This came out to 318 delivered.They are now at 339 per ton w/o delivery. Up 40 dollars per ton.

Pellets direct was doing direct ship in April for blazers at 309 now they are up to 319 w/o delivery only up 10 dollars per ton

Robbins garden Oxford was at 318 per ton for blazers prebuy now at 328 w/o delivery. Up 10 dollars a ton.

Now for the finally. South shore wood pellets had blazer for 349 at prebuy april-june w/o delivery!!!!! Now up to 359 w/o delivery??? That's like Okie fir price.

Robbins garden and pellets direct seem to be in the ballpark, however there is still a significant discrepancy with sswp and pellets r us.

Like going to the gas station at one end of town for 2.59 per gallon, while the other gas station at the other end of town is selling gas for 3.00 per gallon. It's funny how you still see people at that second gas station filling at almost 50 cents more per gallon. I always do my research and try to save whenever I can.
 
jfunk138 said:
Heating oil is under $2/gallon throughout Massachusetts, several spots showing up at $1.80. http://www.discountheatingoilprices.com/ If you are really looking to save money, you won't be burning pellets this winter at least not at these $300 a ton prices I keep seeing.
Click to expand...

I'm in northern CT and been calling around everywhere. Prices are between $2.20 to $2.55 a gallon right now. Prices can vary by cash, credit or payment plan as well. Cash being the cheapest. It also depends on how much you need on delivery, price drops the more you order. Right now, in in my area the average price seems to be about $2.44/gallon

I estimated what I need using this site:
http://www.travisindustries.com/CostOfHeating_WkSht.asp#

I also considered what my oil company estimated and what I used last winter to project. That said....

I'm basically breaking even right now and that's with buying some premium pellts (see sig) and being able to keep the house about 4-5 degrees warmer. Pellets came out slightly ahead, but I'm erasing that as I'm sure there will be "some" oil consumption when all is said and done.

That's just me, I'm sure it's different for everyone depending on where you live.
 
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$40 increase per ton seems appropriate as the season kicks in. Personally I love seeing good companies that do good work make money. That allows them to stick around and continue in business.

"Wha....they raised the prices .75 cents a bag....they're gouging me!"

Cmon people get it together. Maybe order your pellets in May when these companies are scrounging for cash flow. Supply and demand, how many times do you have to be taught this lesson?

Gouging is when nobody has pellets and the one dude who does is charging $800 a ton, three ton minimum.
 
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It is a normal capitalism rule - supply and demand. What also occurs is the vendors are seeking out the price a customer will pay. As such, many of the "pre-sale" prices this year are close to the end of season prices last year. If folks buy them at the inflated price (vs. 2014 prices) then that's the market and it will set up the rest of the season. If a lot of folks decide to use oil or propane, both much cheaper than last year, demand for pellets will decrease and prices should fall a bit. Pellets are just like any other commodity, nothing special about them.
 
smwilliamson said:
$40 increase per ton seems appropriate as the season kicks in. Personally I love seeing good companies that do good work make money. That allows them to stick around and continue in business.

"Wha....they raised the prices .75 cents a bag....they're gouging me!"

Cmon people get it together. Maybe order your pellets in May when these companies are scrounging for cash flow. Supply and demand, how many times do you have to be taught this lesson?

Gouging is when nobody has pellets and the one dude who does is charging $800 a ton, three ton minimum.
Click to expand...
Wow, don't like the tone of your preaching!!
 
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jfunk138 said:
Heating oil is under $2/gallon throughout Massachusetts, several spots showing up at $1.80. http://www.discountheatingoilprices.com/ If you are really looking to save money, you won't be burning pellets this winter at least not at these $300 a ton prices I keep seeing.
Click to expand...


As the oil price finds a parity with pellet prices then it would make sense for the class of efficient oil burners that have their pencils out comparing net costs might either not be buying pellets right now or sitting on the ones they've bought and plan on burning oil for heat this year. If your oil boiler is in the burns 2 gallons per hour class pellets might still be a bit cheaper. that's the advantage to dual heat systems - you get to pick which works best for you, financially or otherwise.

So far, IMO, pellet prices seem to be reflecting manufacturing costs. I have read nowhere of an industry-wide collusion to fleece customers by artificially keeping prices from natural market fluctuations. I hope none of the smaller pellet makers don't have such an awful season that they can't turn a profit and shut down not just temporarily but permanently. Too often the small guys or the guys working on too small a margin are the first to go in a downturn.
 
smwilliamson said:
$40 increase per ton seems appropriate as the season kicks in. Personally I love seeing good companies that do good work make money. That allows them to stick around and continue in business.

"Wha....they raised the prices .75 cents a bag....they're gouging me!"

Cmon people get it together. Maybe order your pellets in May when these companies are scrounging for cash flow. Supply and demand, how many times do you have to be taught this lesson?

Gouging is when nobody has pellets and the one dude who does is charging $800 a ton, three ton minimum.
Click to expand...
Its not so much the increase for the actual product after early buy it's more about pointing out start of season prices between 4 dealers. 319 the cheapest and 359 being the most expensive offering at this moment for the same product.


Companies that do good work you like to see make money? Are you implying the pellet dealers?


My experience with pellet dealers in this area is that they are all just okay as far as customer service is concerned. They all have functioning trucks, and for the most part, deliver on time (that's never a guarentee). Nothing extrodinary stands out that makes me want to seek out the highest price per ton for the same product. With that being said, if you are talking about the stove service portion of the buisness then yes I would pay a mark up for an incredible tech that does a great job on my stove.


Glad I bought at pre buy for 299! Will be ordering in June next year to.
 
JRA said:
Its not so much the increase for the actual product after early buy it's more about pointing out start of season prices between 4 dealers. 319 the cheapest and 359 being the most expensive offering at this moment for the same product.


Companies that do good work you like to see make money? Are you implying the pellet dealers?


My experience with pellet dealers in this area is that they are all just okay as far as customer service is concerned. They all have functioning trucks, and for the most part, deliver on time (that's never a guarentee). Nothing extrodinary stands out that makes me want to seek out the highest price per ton for the same product. With that being said, if you are talking about the stove service portion of the buisness then yes I would pay a mark up for an incredible tech that does a great job on my stove.


Glad I bought at pre buy for 299! Will be ordering in June next year to.
Click to expand...
Some dealers get much better pricing than others. Some have higher delivery costs or costs of doing business than others. Some don't know what they are doing. Free market pricing allows these dealers to conduct their business as they see fit. Consumers have choices. I don't know dude, sounds like like healthy business practices to me. As we gear up for the busy season it's only natural that businesses would scale up their pricing. Celebrate. It s all good.
 
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Guy up the street from me supplies my pellets. He's about $30 more per ton than a few others I know. I use 7 tons. I pay $210 more. If he said that he was raising prices again I'd probably just pay whatever he was asking. I trust him. He isn't a close friend or anything but runs a business in town at the end of my street and I like seeing him make a living. He has a few guys that work for him that also have other part time jobs delivering pizzas and the like. Two years ago my wife broke down on RT 44 and one of his delivery guys stopped and gave her a ride to the shop. It's called community. Searching the world far and wide to save a few bucks, since all pellets are pretty much the same son ds like a great idea because you save money but I'll tell you like I tell my kids, money isn't the most important thing in the world.
 
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smwilliamson said:
Guy up the street from me supplies my pellets. He's about $30 more per ton than a few others I know. I use 7 tons. I pay $210 more. If he said that he was raising prices again I'd probably just pay whatever he was asking. I trust him. He isn't a close friend or anything but runs a business in town at the end of my street and I like seeing him make a living. He has a few guys that work for him that also have other part time jobs delivering pizzas and the like. Two years ago my wife broke down on RT 44 and one of his delivery guys stopped and gave her a ride to the shop. It's called community. Searching the world far and wide to save a few bucks, since all pellets are pretty much the same son ds like a great idea because you save money but I'll tell you like I tell my kids, money isn't the most important thing in the world.
Click to expand...
I have a dealer who has his Pellet wharehouse less than 1/4 mile from my house..
that said, he want's 70.00 to deliver a ton to my house. so much for community.[on his end]
needless to say unless I pick up the pellets myself, I will not give him my business..
 
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smwilliamson said:
Guy up the street from me supplies my pellets. He's about $30 more per ton than a few others I know. I use 7 tons. I pay $210 more. If he said that he was raising prices again I'd probably just pay whatever he was asking. I trust him. He isn't a close friend or anything but runs a business in town at the end of my street and I like seeing him make a living. He has a few guys that work for him that also have other part time jobs delivering pizzas and the like. Two years ago my wife broke down on RT 44 and one of his delivery guys stopped and gave her a ride to the shop. It's called community. Searching the world far and wide to save a few bucks, since all pellets are pretty much the same son ds like a great idea because you save money but I'll tell you like I tell my kids, money isn't the most important thing in the world.
Click to expand...
That's a great story and I can see in that instance why you would choose to pay that price if you are in a financial situation to do so. Some folks have to save throughout the year to buy certain things they need and also have second jobs. I have a house north of Boston, two car payments and a ton of other bills like most here (not complaining just stating the facts). There are exceptions when I can justify paying more for a service or product. I go to the local farmers market every sunday and pay top dollar for breads and veggies I can get at a supermarket for half the cost. I like supporting local buisness just as much as you. Just not when it comes to gas hho or pellets.
 
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Tonyray said:
I have a dealer who has his Pellet wharehouse less than 1/4 mile from my house..
that said, he want's 70.00 to deliver a ton to my house. so much for community.[on his end]
needless to say unless I pick up the pellets myself, I will not give him my business..
Click to expand...
And then there are those people too...takes all kinds.
 
JRA said:
That's a great story and I can see in that instance why you would choose to pay that price if you are in a financial situation to do so. Some folks have to save throughout the year to buy certain things they need and also have second jobs. I have a house north of Boston, two car payments and a ton of other bills like most here (not complaining just stating the facts). There are exceptions when I can justify paying more for a service or product. I go to the local farmers market every sunday and pay top dollar for breads and veggies I can get at a supermarket for half the cost. I like supporting local buisness just as much as you. Just not when it comes to gas hho or pellets.
Click to expand...
I understand. I have bills too. Lots and lots! I ran out of pellets once and my guy told me to come over to his house and get 10 bags. I didn't, but appreciated the gesture. Another time I was kinda short on cash and needed a ton and he fronted me for two weeks. Yeah, some people have a steelhead ingrate down the street that wants a $70 delivery for 1/4 mile delivery. I'm grateful for the community of people I depend on for stuff and I'm very loyal. After a couple years of running into each other and doing business a relationship does form and maybe there is some benefit outside of just passing cash back and forth. Look around people, see who your community and neighbors are. Support them and wear a smile, it often contagious.
 
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