We now have locked in prices for March and April. Cubex $225 picked up Delivery ranging from $249 for one ton to $238 for 4 tons. NEWP $210 picked up Delivery ranging from $235 for one ton to $223 for 4 tons. We are on a list to get only new product from NEWP so we don't get into the stuff made last fall if there is any. Hope the other pellet dealers and get the prices down some they seem high in the north east.
2010 Pellet Prices - Early Buy Program
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90% of dealers make between $.80 and $1 per bag. In the northeast trucking seems to drive the price up.
tinkabranc said:
they may well have but that was the one that emailed me.Will not be buying at that price and will see what th spring brings.I have 4 neighbors and we have been doing a group buy for 10-12 tons,alst year it was 287per ton delivered for Maine Choice (best we deal we could find),they brought along a pallet jack to move them into the garages which a big plus.
Will see this year,lumber yard has unnamed Premium at 279 delivered.
Meneillys Woodland Products said:
how do you know if you are getting "new" stuff or "old" stuff?
preacherbiggin
Member
Lousyweather said:
I love it, one dealer says "we only make $10 a ton" another says it's $20 now something closer to $40 or $50 comes up and they don't say it's wrong they start talking about "net". Well if you net down everything there is no markup in anything.
mascoma said:
Its important to talk net or gross, because there is such a big difference in the two numbers. There are certain costs associated in doing business.....things like insurance, taxes, licenses, payroll, equipment, shrinkage, and the list goes on and on. To poo-poo these costs is simply ignorant to the conditions that businesspeople face. I guess if you have sucked at the "gummint" teat long enough (in its various forms), you lose (or never get) a realistic viewpoint of what the the folks in retail face. You sell a ton of pellets and gross $30 per ton...you dont simply put $30 in your pocket. You hope to make something after you "net down everything"...if you dont, you dont stay in business. Need I remind you, even in this forum there are great examples of businesses who gave "amazing prices", but when it came time for the "rubber to hit the road", they couldnt deliver.....possibly search for a few names in the forum.....Creative Biomass, New England Pellet (Suffield, CT), Allegany Pellet...need I go on?
Unfortunatly I have been in retail for many years. When I sell a peice of furniture I say I make $300 on an $800 sofa, yes gross. I do not say I make $32 selling that sofa even thought that is about my net after all the things you listed.
Everyone has a right to make a living, I hope you do well, it's just that some folks seem to want people to think they give they stuff away.
BTW, you can choose to do something different, as can I if retail is so tough.
AND
How the heck did you pull in the government into this?
Everyone has a right to make a living, I hope you do well, it's just that some folks seem to want people to think they give they stuff away.
BTW, you can choose to do something different, as can I if retail is so tough.
AND
How the heck did you pull in the government into this?
mascoma said:
well, I dont know anyone in business who is there to give stuff away.......why toil away when there is no gain? Although I do submit that many folks not in retail have no idea how hard it is to make money. Thats where the gummint comes in....they are the world's largest employer, and many of these folks have no idea what "the rest" of us do, day-to-day. I'd rather not go into certain gummint positions, so as not to offend some of those folks here, suffice to say most of them have no idea what the "perks" they are given actually cost (the taxpayer), etc.....
Ladderlieu
New Member
Lousyweather said:
At the risk of leading this off topic a bit... Many years ago in my "single" days I was a member of a dating website (gasp!). Saw a profile of a viable candidate who lived nearby and her occupation was listed as "government employee". Woo-Hoo! I thought. Someone with a well paying job! During our first date I found out she was on welfare... I guess in a broad sense of the term, she was a government employee. We didn't have a second date...
Ladderlieu
New Member
Lousyweather said:
We crack open the pallets and look at the bag code and get the date off from it. They would have to re bag the old stuff in order to changed the bag date so we are 99% sure it is new stuff. Also we gross $20 on pick up prices. More than willing to show customers the receipts from shipping and such if they want to question. High volume low cost that is the business plan. Worked so far 2 years in business and sold 2060 tons last year.
I wonder then, what they are doing with the "old stuff"? If its re-bagged, thats ok, as long as the "Longs" arent there. You guys actually tear into every new skid, open a bag, and check the lot number (its easier to do from the inside of the bag, actually)? The lot number is usually on the upper right hand corner of the back of the bag...its not printed, its punched. We got a fair amount of the New York "long" pellets this year, but we are closer to the Jaffrey plant, where they didnt have thse issues. Im thinking they have quite alot of those pellets still, unless they have rebagged them, and those pellets are still in New York. I know the new pellets from Schuyler are better, as they did some "personnel cleaning" after the problem arose. I am told they have rectified the issue as well.
Volume is the only way tomake money in the business, and it sounds like you are well on your way to becoming a major dealer in New England Pellets! Good luck!
Volume is the only way tomake money in the business, and it sounds like you are well on your way to becoming a major dealer in New England Pellets! Good luck!
They are marking the out side of the pallets for us then we get into random ones from the load coming in to make sure they match. We have had around 30 tons returned to us and at the $20 gross we lost money going to get them and swaping them out. NEWP has worked on the product and they are QCing the old stock to make sure it is good before shipping. That is as far as I know. What we have been selling is a good product again but the bad pellets did alot of damage and now we need to make sure the customers are happy so they come back hence the new Cubex product and the lower NEWP price. So far every one says increase in May or June.
yep, thats what we see as well.
The folks at NEWp are nice folks, and Im sure they rectified their problem, since it surely costs them more in the long run not to rectify it!
Cubex is also a good brand.....we sold it for a while, but didnt sell enough of them......because of shipping, we found it hard to compete with them....our client base wouldnt pay the extra for the product over a few cheaper varieties such as New Englands, Alleghenies, etc. They were a nice product as well, though, but we couldnt justify not making the margin with the product that we need to make to stay in business, believe it or not.
The folks at NEWp are nice folks, and Im sure they rectified their problem, since it surely costs them more in the long run not to rectify it!
Cubex is also a good brand.....we sold it for a while, but didnt sell enough of them......because of shipping, we found it hard to compete with them....our client base wouldnt pay the extra for the product over a few cheaper varieties such as New Englands, Alleghenies, etc. They were a nice product as well, though, but we couldnt justify not making the margin with the product that we need to make to stay in business, believe it or not.
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