Home Depot hasn't seemed to realize pellet burning season is almost over....$$$

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imacman

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Now, maybe it's just me, but wouldn't you think that the HD bigwigs would realize that their not going to sell many pellets now if they keep the same as it's been all winter, and if they don't they'll just have to store them all summer?

I was just at the local HD in Newburgh, and they have about 20 tons of Stove Chow that they must have just gotten in this week, as there wasn't any there on Monday.....Price???...$5.98/bag or $299/ton....same price all winter long.

Am I missing something here?
 
Yesterday at Lowe's I also saw pellets for $298 a ton. It was about this time last year they dropped to $200 a ton to clear out for the spring landscaping plantings. I wonder if they also realize that the burning season is over and people will be VERY unlikely to purchase in bulk at those prices this time of year.

BTW - I visited a listing in Craigslist for $200 pellets. The owner had sold the stove earlier this winter, and the purchaser never came back for the pellets. They were New Englands and burn VERY well! I'll take multiple tons of them at $200/ton!
 
hmmm....April is one of our busiest pellet sales months, historically.......go figure.
 
Historically speaking I don't believe pellets have reached this high a price, I think most data collected on sales/prices over the last 10 years is no longer valid with the current times. Going forward I think people will be waiting for the best price, and that maybe after April. With that said there will also be a lot of people that wait to long and miss the best prices! :(
 
i am sure the price would drop if it was in the 60s and looked to stay that way.. but we are headed back to the 40-50s but still in the 20-30s at night for at least 2 more weeks so i can understand why the price hasn't dropped.... in my area hd, lowes usually drop april 15th or around there ... alotta hilltowns still get colder than us in this area
 
kast said:
Historically speaking I don't believe pellets have reached this high a price, I think most data collected on sales/prices over the last 10 years is no longer valid with the current times. Going forward I think people will be waiting for the best price, and that maybe after April. With that said there will also be a lot of people that wait to long and miss the best prices! :(

very well put, i agree in all aspects. Its likely many people this year might be saying something like "damn! I shoulda bought in April....!"

ive found that this pellet biz changes every year, and what works last year most likely wont work this year.
 
Since the prices seem to be so uncertain as to whether they will drop significantly or not. I plan to buy part of my supply in April, then watch the market to get a feel for later on. Maybe purchase the rest mid summer. The prices will then be either cheaper or about the same.
 
kast said:
Historically speaking I don't believe pellets
have reached this high a price, I think most data collected on sales/prices over
the last 10 years is no longer valid with the current times. Going forward I think people
will be waiting for the best price, and that maybe after April. With that said there will
also be a lot of people that wait to long and miss the best prices! :(


Exactly.

For the newbs and naysayers, March is not premature for the early buy programs.
I think the folks who wait too long are going to be disappointed.
 
zeta said:
kast said:
Historically speaking I don't believe pellets
have reached this high a price, I think most data collected on sales/prices over
the last 10 years is no longer valid with the current times. Going forward I think people
will be waiting for the best price, and that maybe after April. With that said there will
also be a lot of people that wait to long and miss the best prices! :(


Exactly.

For the newbs and naysayers, March is not premature for the early buy programs.
I think the folks who wait too long are going to be disappointed.

None of us really know for sure, but even now, we are seeing alot of inquiries into truckloads........so, SOME folks are thinking the price will remain the same or go up. Doesnt mean they are right though. I do know we've gotten costs from many mills and allocations, and as of right now, I dont see any downward movement. There just arent alot of pellets around for this time of year. Supply and demand? maybe.......I guess we will see.....
 
codebum said:
Since the prices seem to be so uncertain as to whether they will drop significantly or not. I plan to buy part of my supply in April, then watch the market to get a feel for later on. Maybe purchase the rest mid summer. The prices will then be either cheaper or about the same.

I am thinking about taking the same approach this year. I used to do this with oil back in the day. Pre-buy half the amount needed for the season at the best possible price. Then buy the balance through the season on the spot market as it were. It's a good strategy to hedge your bets a little and minimize risk if prices are unpredictable. You may buy high early and low later or the other way around, but it tends to average out in the long run. Some years I lost but other times I came out way ahead.
 
BDPVT said:
codebum said:
Since the prices seem to be so uncertain as to whether they will drop significantly or not. I plan to buy part of my supply in April, then watch the market to get a feel for later on. Maybe purchase the rest mid summer. The prices will then be either cheaper or about the same.

I am thinking about taking the same approach this year. I used to do this with oil back in the day. Pre-buy half the amount needed for the season at the best possible price. Then buy the balance through the season on the spot market as it were. It's a good strategy to hedge your bets a little and minimize risk if prices are unpredictable. You may buy high early and low later or the other way around, but it tends to average out in the long run. Some years I lost but other times I came out way ahead.

Yepper, it seems like a real guessing game at this point. I think the outcome may be different depending on your locality due to raw material supply short in some areas but maybe not in other areas.

It's good to hear that someone else uses the same strategy. My fingers are crossed for better prices.
 
for most using pellets it is an option..... and i gotta believe IF.....IF gas stays low (supposed to be huge drop in may over here) and oil stays stable 2.35 or less ....pellet companies will have to get the price lower to say 250 or less a ton... if not people will use their other options..... now if oil,gas,propane go back up to 3.00 gall pellets will stay the same if not rise a little..... remember new home construction was up 22% this past month... if those numbers stay level the price should def come down a bit

***this is speculation****

but i know this past year i didn't even burn a complete ton because of the prices.......pellets really need to get down to 4 a bag again.... with all the pine bark beetles and whatever the bug was here in mass eating tress i dont see why the mills dont just snack that wood up
 
Home Depot and Lowes around here don't have any more pellets in stock so I went to a local stove shop. A little more out of the way, that is why I didn't go there first. I asked the OWNER at the counter if he had any pellets in the store, and he said that he did. When I asked what brand he had in stock, he asked if I had bought a stove from him. I said no... and he told me that he could not sell me any pellets and told me that I should go down the road to the Agway and see if they had any!!! I only needed about 10 bags or so, but it is not like pellets are in short supply. I certainly will not do any business with this stove shop in the future. Last fall, I would have expected this... but not when the heating season is running down. The Agway that I ended up at had just gotten 12 TONS that day!!! I paid a little more than I wanted to, but I got the pellets that I needed.

Go figure... shoot yourself in the foot on a sale because someone did not buy their stove from you?? Crazy...
 
Home Depot and Lowes around here don’t have any more pellets in stock so I went to a local stove shop. A little more out of the way, that is why I didn’t go there first. I asked the OWNER at the counter if he had any pellets in the store, and he said that he did. When I asked what brand he had in stock, he asked if I had bought a stove from him. I said no… and he told me that he could not sell me any pellets and told me that I should go down the road to the Agway and see if they had any!!! I only needed about 10 bags or so, but it is not like pellets are in short supply. I certainly will not do any business with this stove shop in the future. Last fall, I would have expected this… but not when the heating season is running down. The Agway that I ended up at had just gotten 12 TONS that day!!! I paid a little more than I wanted to, but I got the pellets that I needed.

Go figure… shoot yourself in the foot on a sale because someone did not buy their stove from you?? Crazy…

I know a lot of shops were doing this at the beginning of the season when supply looked to be a problem. I dont understand doing it now unless he figures a lot of his customers still need pellets and he wants to have some on hand. He probably made some good dough this year.
 
whippingwater said:
All this talk about the end of heating season and early buy seems a little premature. Its only mid March and it's 4 degrees out right now.

You know something, you have a VERY GOOD point there. It's not Spring till the fat lady sings and she ain't chirpin yet. I just took the snow tires off the car so you can guarantee another month of snow weather. It isn't time to get out the shorts and t shirts yet and they know it. It is time to start keeping a watchful eye on those prices though.....................
 
darkstar said:
Home Depot and Lowes around here don't have any more pellets in stock so I went to a local stove shop. A little more out of the way, that is why I didn't go there first. I asked the OWNER at the counter if he had any pellets in the store, and he said that he did. When I asked what brand he had in stock, he asked if I had bought a stove from him. I said no... and he told me that he could not sell me any pellets and told me that I should go down the road to the Agway and see if they had any!!! I only needed about 10 bags or so, but it is not like pellets are in short supply. I certainly will not do any business with this stove shop in the future. Last fall, I would have expected this... but not when the heating season is running down. The Agway that I ended up at had just gotten 12 TONS that day!!! I paid a little more than I wanted to, but I got the pellets that I needed.

Go figure... shoot yourself in the foot on a sale because someone did not buy their stove from you?? Crazy...

While we dont practice this "did you buy a stove from me?" folderall, there is some sense to it. I'll go out on a limb here and try to explain it. Some dealers, due to locale, finances, allocations, have a VERY limited supply of pellets. Their first order of business is to TAKE CARE OF THE PEOPLE WHO SUPPORT THEM, not the people who go to Lowe's and Home Despot first, and then when they cant get them there, go to the stove shop as their 3rd choice. Id much rather tell someone who doesnt frequent my store that Im holding my pellets for my LOYAL customers, rather than the folks who are scurrying around with me being their 3rd or 4th choice, when their "favorite" source falls short. The guy who forked over $3000, who I see everyday, or every weekend, should get more of a nod than the guy who Ive never seen before, bought his stove somewhere else, and only gets his pellets somewhere else and buys "10 bags or so" a year, at best, to "get him through"........like I said in another post, its kinda a 2-way street here (Sorry, Gio, but now ya see my point?).

Sure, I know many folks will come in saying that by selling pellets to them I might get a customer for life, and you are partly correct. But if pellets are in short supply, like they ARE in some spots RIGHT NOW, the better thing to do is support those who support you.

Flame on.
 
Again I agree with you on this lousyweather. We don't practice that "if you bought your stove here" lingo either. But doesn't it say something for the dealer, that he is taking care of the people who do patronize his store. If a person had purchased the stove there in the 1st place instead of HD or Lowes, they would have pellets for them. Yes I know times are tough and everyone is pinching pennies but the extra dollar spent at his store may save running around trying to find pellets. BTW, our suppliers as I'm sure most other suppliers do, have you commit to a certain tonnage and in my case they cut our supply back from last year and we couldn't get all we wanted last year. We have 4 suppliers and sold 1200 ton and could have taken another 2-300 ton. Looks like our numbers may be down down unless some raw material pops up. This may be why he sells only to his customers.
 
Lousyweather said:
darkstar said:
Home Depot and Lowes around here don't have any more pellets in stock so I went to a local stove shop. A little more out of the way, that is why I didn't go there first. I asked the OWNER at the counter if he had any pellets in the store, and he said that he did. When I asked what brand he had in stock, he asked if I had bought a stove from him. I said no... and he told me that he could not sell me any pellets and told me that I should go down the road to the Agway and see if they had any!!! I only needed about 10 bags or so, but it is not like pellets are in short supply. I certainly will not do any business with this stove shop in the future. Last fall, I would have expected this... but not when the heating season is running down. The Agway that I ended up at had just gotten 12 TONS that day!!! I paid a little more than I wanted to, but I got the pellets that I needed.

Go figure... shoot yourself in the foot on a sale because someone did not buy their stove from you?? Crazy...

While we dont practice this "did you buy a stove from me?" folderall, there is some sense to it. I'll go out on a limb here and try to explain it. Some dealers, due to locale, finances, allocations, have a VERY limited supply of pellets. Their first order of business is to TAKE CARE OF THE PEOPLE WHO SUPPORT THEM, not the people who go to Lowe's and Home Despot first, and then when they cant get them there, go to the stove shop as their 3rd choice. Id much rather tell someone who doesnt frequent my store that Im holding my pellets for my LOYAL customers, rather than the folks who are scurrying around with me being their 3rd or 4th choice, when their "favorite" source falls short. The guy who forked over $3000, who I see everyday, or every weekend, should get more of a nod than the guy who Ive never seen before, bought his stove somewhere else, and only gets his pellets somewhere else and buys "10 bags or so" a year, at best, to "get him through"........like I said in another post, its kinda a 2-way street here (Sorry, Gio, but now ya see my point?).

Sure, I know many folks will come in saying that by selling pellets to them I might get a customer for life, and you are partly correct. But if pellets are in short supply, like they ARE in some spots RIGHT NOW, the better thing to do is support those who support you.


To a point I agree... but when someone down the road just had 12 tons delivered that day??? There is not shortage here... even though they are crappy Corinth pellets.
Flame on.
 
My inlaws used to own a hardware store and they never took the position of turning customers away (which could be future customers) for any reason. Wouldn't it be better for the stove shop to say compromise a bit and maybe cultivate a future loyal customer. Maybe set a limit of say 7 bags (or whatever) for the guy who never bought a stove from you. Keep a punch card or log of how many times he buys from you. Then when he reaches your target, he should be allowed to buy the same quantity your stove buyers are allowed to purchase. That keeps him coming back to the store and he spreads the kind word about your shop and that creates possible future sales. Make sure the paying counter is at the back of the shop so that pellet customers have to walk by all the nice stoves to pay for the pellets..... maybe they might wish to upgrade their stove etc.. FWIW. :coolsmile:
 
CanadaClinker said:
My inlaws used to own a hardware store and they never took the position of turning customers away (which could be future customers) for any reason. Wouldn't it be better for the stove shop to say compromise a bit and maybe cultivate a future loyal customer. Maybe set a limit of say 7 bags (or whatever) for the guy who never bought a stove from you. Keep a punch card or log of how many times he buys from you. Then when he reaches your target, he should be allowed to buy the same quantity your stove buyers are allowed to purchase. That keeps him coming back to the store and he spreads the kind word about your shop and that creates possible future sales. Make sure the paying counter is at the back of the shop so that pellet customers have to walk by all the nice stoves to pay for the pellets..... maybe they might wish to upgrade their stove etc.. FWIW. :coolsmile:

hardware isnt really the same kind of business, as most of the things they sell are basically not limited in quantity, and folks dont depend on their products to heat their homes and keep their loved ones happy. If the porduct is limited, for whatever reason, I still stand by taking care of those who take care of you. That "7 bags" you sold to the person who used you as their 3rd or 4th choice? I would much rather sell them to the guy or gal who bought their stove from me, put food on my table, and paid my paycheck, rather than the person who Ive never seen, from far and wide, who, and we all know this, will go right back to the Big Boxes as soon as they get pellets in. As for the punch card thing, pain to administer, and Im still shorting my loyal customers, arent I? Again, assuming the quantity available is short, of course. Its counterproductive for retailers to hoard pellets...they are all in business to make money.....
 
iceman said:
for most using pellets it is an option..... and i gotta believe IF.....IF gas stays low (supposed to be huge drop in may over here) and oil stays stable 2.35 or less ....pellet companies will have to get the price lower to say 250 or less a ton... if not people will use their other options..... now if oil,gas,propane go back up to 3.00 gall pellets will stay the same if not rise a little..... remember new home construction was up 22% this past month... if those numbers stay level the price should def come down a bit

***this is speculation****

but i know this past year i didn't even burn a complete ton because of the prices.......pellets really need to get down to 4 a bag again.... with all the pine bark beetles and whatever the bug was here in mass eating tress i dont see why the mills dont just snack that wood up
Yeah what ever happened to the winter moth there in the coastal region of New England?
It was trying hard to destroy all my maples the last couple of years that I lived there.
 
The way I'm looking at it is how much can I realistically expect the price to go down (if it does go down)? I know that Barefoot burns the best for me out of all the brands I have tried in my stove and I know I'll pay a little more for them but its not worth it to me to get something else because its cheaper and then battle with them all winter. With that said, I know I can get them for $289 a ton right now. If I waited, how much would they go down? $10, $15 a ton? I only need 3 tons for next season so we're only talking $45 savings. I spend more than that to take the family out for dinner. For me, its a small price to pay for the piece of mind that I'm all set for next winter and I don't have to worry about finding them.
 
The last couple of years my wood supply has been off 80% so I have used this "existing customers only" method also. I have cut most advertising to save money and only sold wood to customers who have bought from me before. Don't see anything wrong with it and anyone who complains of this practice is a sore loser that wasn't prepared ahead of time.
 
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