Evidence of Pellet Price Gouging?

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"all the way up with a red hot poker" wow! unbelievable! All that reading of history has finally paid off, and on Hearth.com, no less! pick me, teacher! Edward II! right? its how they killed him.....his father was Edward I, the "Hammerer of the Scots".........
 
SmokeyTheBear said:
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NYMEX futures are currently 40.03/Barrel , we just entered a new trading month, I have no idea how the prior month settled as I don't pay that much attention to oil.
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I read an article a couple of days ago about why the price of gasoline is rising when the price of oil is dropping. The author said the American public is not reading the market correctly. He continued that the price of gasoline is not tied to NYMEX because the oil for refining gasoline does not get traded on NYMEX.

What a croc. Seems to me that when the price of gasoline was rising back in the summer/fall that every time I saw the NYMEX price rise, the gas stations in my area rose too. Seems tied to NYMEX to me.
 
I bought a bag of (crappy) Appling County pellets (to tide me over until a shipment came in) for $8.99 a bag, and the next day literally drove around the block to a different store and bought my LG's for $4.70 a bag.
It pays to shop around.
I actually said to the guy at the first store "holy crap! I can buy pellets from Co-Op for WAY less than that!" and he said "Well, I guess you should buy them there then, shouldn't you" He was quite snippy about the whole thing, and I felt like saying: maybe if you lowered your price to compete with the rest of the stores, you wouldn't have three tons sitting in your warehouse taking up room!!! Turns out even if the were $1.00 a bag I still wouldn't have bought them!
 
Appling County is out of Georgia...Ive used them, they dont seem bad at all......but the transportation costs are huge.
 
Novah, I see you're from Milton. We summer up there at my friends campground. The little bar on Rt 125 just before Townhouse Rd sold pellets this past summer. Do you know what they were and how much? I like to support the little guy if I can.

Chandler
 
Lousyweather said:
[......
We are in the Northeast, and the last flatbead load of pruduct we got, from PA, cost us $1500 to bring in. If there are 22 tons of pellet per truck, thats $68/ton, just to get them to the dealer. Noone expects the dealer to eat those costs, so they pass them on to the end user. This increases the cost, obviously. .....

Not trying to be sarcastic, but out of curiosity who handles the transportation logistics for shipping
pellets to the dealers? The individual dealers or the mills?

A $1500.00+ freight bill for a flatbed from PA to New England seems very high.
Somebody is getting bent over.
 
tinkabranc said:
Lousyweather said:
[......
We are in the Northeast, and the last flatbead load of pruduct we got, from PA, cost us $1500 to bring in. If there are 22 tons of pellet per truck, thats $68/ton, just to get them to the dealer. Noone expects the dealer to eat those costs, so they pass them on to the end user. This increases the cost, obviously. .....

Not trying to be sarcastic, but out of curiosity who handles the transportation logistics for shipping
pellets to the dealers? The individual dealers or the mills?

A $1500.00+ freight bill for a flatbed from PA to New England seems very high.
Somebody is getting bent over.

Ive seen it done both ways, tink. We've set up deliveries, so have the manufacturers...the price isnt really much different at all....the truckers simply charge more because they typically dont have a backhaul to make money on. Yea, I know, the backhaul isnt our problem, but its made to be. The price IS very high, but the option would be to have expensive product, or no product at all. Personally, I'd rather have expensive product than none.
 
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