Just the facts, nothing but the facts

thebubbleboy Posted By thebubbleboy, Jun 26, 2008 at 1:20 AM

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  1. thebubbleboy

    thebubbleboy
    Member 2.
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    Jun 13, 2008
    15
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    Loc:
    Eastern Ohio
    All these posts on here where really starting to worry me so I went out to buy some pellets early. I have a ag supply store about 3 miles from my house. I went in asked about pellets....and , presto....3 tons (pick-up by me) for $195/ton. I thought that it was going to be worse due to all of the posting on here. I do feel better about being stocked for this winter. My location is Northeastern Ohio.

    Bubble
     
  2. begreen

    begreen
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    Nov 18, 2005
    63,843
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    Sounds like a great deal. What are the Brand and type of pellets? What are you burning them in?
     
  3. kilarney

    kilarney
    New Member 2.
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    Mar 1, 2008
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    Loc:
    Vermont
    Ahh... the midwest. Affordable pellets. Affordable housing. Makes me wonder why I live in New England!
     
  4. Wet1

    Wet1
    Minister of Fire 2.
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    Apr 27, 2008
    2,529
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    Loc:
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    I can certainly understand why housing is so much cheaper, but can someone please explain to me why pellets are so much cheaper?????????????????????
     
  5. kilarney

    kilarney
    New Member 2.
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    Mar 1, 2008
    168
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    Loc:
    Vermont
    That's a really good question that I would love an answer to. There are pellet mills in the northeast, yet we pay much higher prices. So it can't be just a transportation issue. One guess I have is that natural gas is much more widespread in the midwest. Therefore, pellets are competing with a cheaper fuel source. But I'd love for someone to give a definitive answer.
     
  6. MaineEnergySystems

    MaineEnergySystems
    Member 2.
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    Jun 17, 2008
    16
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    Loc:
    Bethel, Maine
    There's some sort of beetle that's killing ash trees in Michigan, and the resulting timber is creating somewhat of a glut in wood.
     
  7. cheri25

    cheri25
    New Member 2.
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    Jun 14, 2008
    10
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    Loc:
    Colorado Springs, CO
    Here in Colorado there is a pine beetle that is killing off millions of trees and they will be used for making pellets here - we had 2 mills open this year just for this purpose. They are still negotiating contracts with dealers in my area, so I'm not sure what the price will be, I'll post it as soon as I know. Plus it is true that most around here have natural gas (unfortunately I'm in an area only serviced by propane) which is pretty inexpensive so pellet use in my area is no where near what it is back east. We just had our Harman P68 installed on Tuesday and I asked about shortages of stoves, more installs, etc and he told me he had heard nothing of stove shortages and installs were on par with last year. In fact I bought my stove on the 11th of June, no wait, and they could have installed it as soon as the 16th of June.

    Cheri
     
  8. webbie

    webbie
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    Nov 17, 2005
    12,185
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    Loc:
    Western Mass.
    Pellet stove sales in the NE are FAR above that of most areas - so demand is vastly higher. Also, the general cost of living is higher, meaning that all the people involved in the sale and distribution of pellets have to make more $$$ - wages are higher, employment is fuller, etc. - for everyone from the person who cuts the tree to the truck driver.

    My guess, anyways......in general, people are not being gouged. Stove dealers (most) don't even like to sell pellets, because even the best possible profit they can make is not really adequate for keeping their doors open.

    Oh, also is important as to competitive fuels - as you go west there is less fuel oil and more Natural Gas. So the pellets have to be sold cheaper to compete. Economics 101.
     
  9. thebubbleboy

    thebubbleboy
    Member 2.
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    Jun 13, 2008
    15
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    Loc:
    Eastern Ohio
    They are Somerset pellets and the stove is a Breckwell P23.

    Bubble
     
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