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Just got some pellets in!

Post in 'The Hearth Room - Wood Stoves and Fireplaces' started by HarryBack, Feb 28, 2006.

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  1. HarryBack

    HarryBack New Member

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    And boy are they expensive! Brought them in from Canada (Energex)....premium softwood....Im looking at the invoice right now.....lets see:

    1. The pellets....
    2. AA) Res Freight.....................$829.00
    3. Temp. Fuel Surcharge............$114.00
    4. Foreign Exchange Surcharge...$253.00
    5. Rawmat FSC & Plastic S/C......$138.00
    I think thats around $1334.00 for transportation....ugh.....oh....and thats for 23 tons of pellets!
    :sick:

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  2. Sundeep Arole

    Sundeep Arole New Member

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    What the heck is a "foreign exchange surcharge"? Commission to convert US funds to canadian? That is over $10 per ton. $10 per $200 converted is a huge forex surcharge!
  3. HarryBack

    HarryBack New Member

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    Not sure if it doesnt have something to do with a duty correction, but Im calling Energex today to find out.
  4. elkimmeg

    elkimmeg Guest

    wwoow!! about $60 per ton Does not look as prices are comming down
  5. HarryBack

    HarryBack New Member

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    astute observation, Elk!, as usual. I dont think they are coming down...much. My point was really its not only the cost of the pellets, but the transport, and whatever other weird cost the supplier tacks on to justify their price, rather than building it into the cost of the product.
  6. CK-1

    CK-1 Feeling the Heat

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    Prices go up when there is a huge demand..
  7. efaubert1

    efaubert1 New Member

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    Ok, heres my beef about this. In September I was paying $1.99 for a bag at 3 retail outlets. Now they are up to $4.98 at TSC and $4.50 at Menards. Now, there has always been some shipping costs involved no doubt, but for the sake of argument we will pretend there wasn't, ever. So if you divide up your $1343 shipping to a per bag surcharge from original price of $1.99 per bag last year, it still only adds $1.16 per bag to bring it to a total of $3.15 per bag......NOT $4 PLUS!!! There is a price gouge somewhere, because I have personally spoken to 3 different pellet manufacturers and they all claim they have not raised THEIR price. So you tell me, what gives?
  8. Sandor

    Sandor Minister of Fire

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    I think its called capitalism.

    Ya know, supply and demand.

    (Man, that was a "Dylanesque" type response)
  9. Sundeep Arole

    Sundeep Arole New Member

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    The manufacturers maybe haven't raised their price, but I bet you that haven't been able to raise their supply either. If they could, you bet they would be producing more as they can sell all they can make. There is the problem - there are willing buyers out there who would pay $4.98/bag just to get some of the few bags there are. The people who have the pellets to sell aren't altruists - they will be happy to get the profit they can. Had the prices of pellets gone down, would you have been willing to pay a higher price to the poor dealer just because he got stuck with a product he bought at a high price and would have to sell at a loss if he charged the same as another dealer down the street? No - you wouldn't. You would go buy from the dealer who has them cheaper. It's how the system works, someties you make a profit, sometimes a loss, sometimes a big profit, sometimes a big loss.
  10. HarryBack

    HarryBack New Member

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    Been selling pellets 15 years now.......Have NEVER seen them, exclusive of shipping, cost me $100.00/ton.....never.
  11. Sandor

    Sandor Minister of Fire

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    I would expect to see a direct corrolation between the price of coal, gas, oil and wood pellets.

    And the price of those first three have doubled or tripled in the last 3 years. I imagine pellets would catch up over time.
  12. BrotherBart

    BrotherBart Hearth.com LLC Mid-Atlantic Division Staff Member

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    Yep, it's called FOE. Fuel Oil Equivanlents. The prices of all move in a linear fashion with the smaller components always lagging a bit.
  13. MountainStoveGuy

    MountainStoveGuy New Member

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    It takes natural gas to produce pellets, it takes deisel to get them to ya, it cost money to warehouse them. I make 15% on pellets at 5 dollars a bag. I consider it a curtesy to my customers to carry them. When people whine to me about my pellet prices in invite them to shop elseware. Pellet prices have gone way up wholesale. There was a time my regular distrubitor ran out and i had to fill in with lignetics. They were 265 a ton (or there abouts i dont remember the exact number) landed to my warehouse. I charged 309. Dealers make about as much profit on pellets as gas stations do on gas. Buy early, stock up, and dont go looking for deals on pellets in feb.
  14. hearthtools

    hearthtools Moderator Emeritus

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    I will say this again and again
    the price increase on pellets is Shipping
    I paid a little over 1,300 per 21 ton truck this summer
    now Im paying over $2,400 per 21 ton truck now
    FOR SHIPPING

    My cost on the pellets UP TO THIS MONTH have only gone up $10 in the past 3 years.
    but I just received work I have a $20 increase on any future loads.



    I always get my pellet from Canada and NEVER PAY A DUTY TAX
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