Pellet Co-op

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forya

Member
Feb 18, 2010
269
Bucks County Pa
I have 7 neighbors with pellet stoves, and we were thinking of direct buying a whole trailer from Lignetics or Hammer. That would be 3 tons each for next year. I have access to a warehouse that will let a trailer unload, and we can all pick up from there. Is this possible? has anyone done this before?
 
A couple years ago I contacted the folks at Somerset because I really liked their pellets. When I asked if direct sales were possible, the marketing guy told me they could work out something. I suspect it varies with each company.

I think it's a great concept. Let us know what happens.
 
This very thing was discussed here recently and it HAS been done before. Typically, though, someone has to be the go-to person. Make ALL the arrangements, collect ALL the money, set up the delivery day when ALL the people can pick up within a certain time, have a forklift available to unload the truck, etc. It's not impossible. You also have to talk all the neighbors into burning whatever pellet it is you are having delivered. I can tell you in my local neighborhood there are many pellet burners, and we pretty much all burn something different. Good luck!
 
If the factory won't do a drop shipment for you check with the dealers for the brand you would like. We did that last year a couple of times and because we didn't have to do much work only charged 10 over cost. I think most dealers would be willing to work with you I know NEWP does not sell direct to the public in order to keep the dealer net work alive.
 
Most local pellet dealers will work a Co - Op, Like stated earlier in the post, one person in charge and one invoice for the entire order in full. The person in charge is responsible for all the coordination. At the end of the day not a lot of savings, when you factor in the rental of a fork truck or the charge for someone to take the pellets off the truck. We have done a few truckloads and we have found some people weren't happy because they still had to do a lot of work picking up the pellets and not getting the brand they thought they were getting from the coordinator. One deal PO'd the coordinator because he had pellets in his yard for quite some time until all his buddies came and picked them up. Plus, a lot of customers are not buying a 3 or 4 ton order at once, we are seeing more people going the route of the oil or propane delivery. Buying a ton as they need it or bags for that matter. Money is that tight.
 
I think even the big guys like woodpellets.com will work with you on a trailer load - and you have the advantage of them having the forklift with it to put them where you want them.

I have to wonder whether the savings for other methods will really be savings - if you have to move any pellets by hand, the deal quickly evaporates. It might, however, be a good way to get the exact pellets you need or want - for instance, if you wanted only one particular brand.
 
we do it......have done it for a few years now....the cheapest way to do it is to just have a tractor trailer delivered to a location, and have your own means to unload....that way, you get 20-26 tons/load. We still do charge a freight load charge as well. The other way is to contract with a trucker who has an attatched forklift, but they are rarer, and usually cost more for freight. When we have priced a few loads like that, we found them to be prohibitively expensive. In short, Id say: "ask your local dealer"!
 
At my work we have a forklift and enough warehouse space to unload. As long as everyone picks up all of their pellets in a few days we can do it.
 
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