When should I buy pellets in a five year cycle?

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Stentor

Member
Apr 3, 2009
337
North of Boston, Mass
I'm trying to settle on a longer term strategy for buying pellets, like once a year over five years or more. It seems that pellets on average (meaning "most years") tend to be cheaper in late spring. Some years that's not true but it seems reasonable to:

1. select a time to buy annually
2. have one or two favorite pellet brands
3. have a fairly dependable supplier year in and year out

That assumes that I:

1. would be willing to tie up a lot of my heating money for the next season in May even when I don't expect to burn until late September.
2. have the storage space for my seasonal supply (four tons in my case).
3. want to use the stove for at least the next several years, preferably more than five years.
4. get information from a forum like this one but as an ordinary residential user, not plugged into the business and not getting any special insight into price trends.

(The analogy is to investing savings on the "dollar cost averaging" method by buying in a disciplined way whether prices are up or down.)

Does does this make sense to you?
 
Stentor said:
I'm trying to settle on a longer term strategy for buying pellets, like once a year over five years or more. It seems that pellets on average (meaning "most years") tend to be cheaper in late spring. Some years that's not true but it seems reasonable to:

1. select a time to buy annually
2. have one or two favorite pellet brands
3. have a fairly dependable supplier year in and year out

That assumes that I:

1. would be willing to tie up a lot of my heating money for the next season in May even when I don't expect to burn until late September.
2. have the storage space for my seasonal supply (four tons in my case).
3. want to use the stove for at least the next several years, preferably more than five years.
4. get information from a forum like this one but as an ordinary residential user, not plugged into the business and not getting any special insight into price trends.

(The analogy is to investing savings on the "dollar cost averaging" method by buying in a disciplined way whether prices are up or down.)

Does does this make sense to you?

I deal with Ken at southshorewoodpellets.com, give him a ring. He may have some insight into the biz from a distribution standpoint, a very stand up guy and local pellet burner. You could save a lot if you bought 15 tons or so...You would also get into the pellet pig club!
 
That's the way I think. For the last several years I've been shopping in spring, usually taking delivery in June or July. Always top shelf stuff, no box stores,and I shop around to avoid delivery fees. I used to give business to the locals, but they've been unwilling/unable to come close the last couple of years, so I ordered from one of the fine sponsors here. Space can be an issue, I had 8 tons in my basement and it looked like a Hogan's Heroes tunnel down there for awhile. I've still got over 5 tons left, some I'm good to go through next year. A tank of HHO will easily last 5 years, so we've got 0 expenses for quite awhile for heating fuel. There aren't too many heating systems that allow you to do this, pay ahead and have the product, it feels good to be insulated from market whims for a couple of years.
 
Not sure about 5 years out as I have limited space, but I do usually purchase my winter stock in the spring every year.
I am in the same general area as Souzafone and feel the same about the local prices.
Definitely pays to shop around and buy in bulk.

I usually have 10-20 bags left over by seasons end, but this year I expect to have close to 2 ton left over because I got
some extra last summer through a barter deal.

This is not enough to get me through a full winter, but if money gets tight or the prices stay nutty, it gives me a cushion
on how much I would need to purchase for the following seasons.
 
My dealers early buy starts next week....I think. But I'm always broke this time of year so it does me no good.
 
Franks said:
Save up some money and contact a manufacturer about getting a truckload (22-24 tons)

and if you find a manufacturer who is willing to sell a truckload to an end-user, please let us know here....Im sure other members of this forum would be interested....the pellet-users as well as the pellet retailers!
 
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