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No Shortage this year....

Post in 'The Pellet Mill - Pellet and Multifuel Stoves' started by MainePellethead, Sep 2, 2008.

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  1. MainePellethead

    MainePellethead Minister of Fire

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    This past weekend I had breakfast with the owner of Corinth Pellet Co. as we were visiting my father in law. My father in law knows him well. Actually offered my wife an office manager job in the office. lol. But we arent moving way up Maine even though both of us was raised up there. lol. They are balls to the walls(so to speak) at the mill. He sees absolutely no shortage with pellets this year at all. He has installed thousands of dollars in equipment to begin using whole logs. They use alot of chips there now with sawdust. They have started and looking to increase a third shift there. He was telling me he burns 30 tons a day just for operations in making the pellets...the drying. We was going to tour the mill but didnt have time.

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  2. lessoil

    lessoil Minister of Fire

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    Thanks for the info.
    I talked to them last week and they felt comfortable with the supply in the future.
    We just had our stove installed last week and now are waiting for pellets.
    We ordered through a Corith dealer. (5 tons)
    If pellet supply/price are a non-issue, then my decision to get a pellet stove will be an excellent one.


    Hey, put in a good word for me!!!

    Thanks
    :)
  3. richkorn

    richkorn Minister of Fire

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    Good news, I have 3 tons of Corinth on order for delivery at end of month (i hope).
  4. j00fek

    j00fek Feeling the Heat

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    might not be a shortage but in the auburn, lewiston area people are getting ***** by the dealers.

    i paid 235/ton for greenteam in june, now i see athens pellets for 295.99/ton. i wonder if there is a way to investigate like gas price gouging....
  5. DiggerJim

    DiggerJim Feeling the Heat

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    ROTFLMAO!!!! And how did those gas price gouging investigations work for you? :)


    BTW, did anyone catch the news that Exxon Mobil paid more taxes last year than the bottom 50% of all Americans?
  6. Turbozcs2003

    Turbozcs2003 New Member

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    Careful, all the libs here think any business which marks up there product by 8%(Profit on each gallon the oil companies make) is making a windfall and should be taxed to death since the owners and stockholders are not entittled to a profit that large LOL Better the goverment gets more money to waste, of course the extra "windfall" tax will be priced into the product so the consumer can pay for it;)

    Per the pellet gouging maybe the cost went up for transportation, hence the increase in price.
  7. j00fek

    j00fek Feeling the Heat

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    people dont understand that my uncle just picked up 22 tons at athens for 180/ton, used the ip truck and their gas. what a deal

    so why the $100 markup? id like to know
  8. MainePellethead

    MainePellethead Minister of Fire

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    I agree. Even the big box is doing things different right now. I really feel they are waiting to see where oil prices go before you see any relatively good deals.
  9. webbie

    webbie Seasoned Moderator Staff Member

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    ????????

    What part of "a seller of goods can put ANY markup on them they want" don't you folks understand???

    Customers don't set the "fair" markup or price - they just decide whether to buy at the stated price. One dealer may have a business model to sell fewer pellets at a high price and another might sell a lot of pellets at a low price. Neither one is "better", just different.

    Look at fuel oil prices and you will see a difference as large as 50 cents or more per gallon. That does not mean one dealer is gouging.....lots of factors involved.
  10. mullet

    mullet New Member

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    Thanks for the info dude that's awesome.
  11. MainePellethead

    MainePellethead Minister of Fire

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    Holy Cow Craig.....I friggin found it! Something I agree with you on! lol :)
  12. DiggerJim

    DiggerJim Feeling the Heat

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    There's a big difference in buying 22 tons in one transaction than in 7 with the resulting interim storage, potential for damaged goods allowance, paperwork, labor, etc. etc. etc.

    Why does it cost me $1.79 for 18 oz of Coke & a cup of ice at Burger King but I can buy a 2 liter bottle on sale for 99 cents at the supermarket? Why does a Starbucks coffee cost me $4 but Dunkin Donuts only $2.50 and neither costs them more than a nickel?

    It's because someone will pay those rates. If you don't like the markup a seller adds to a product, don't buy it. If enough people agree, the price drops or the seller goes out of business.

    Read, Adam Smith's "The Wealth of Nations". (Is that not required reading in school anymore? <sigh>)
  13. mysticfalcon

    mysticfalcon New Member

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    Its not always the retailer either. I sell pellets and our manufacturer has increased our price by $70/ton since may
  14. JustWood

    JustWood Minister of Fire

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    If an order for 22 tons is placed through Home Depot or a similar retailer they direct deliver from their supplier or main warehouse which saves on extra handling,trucking and warehousings costs which in turn is passed onto the consumer .Essentialy bulk sales gets you a huge discount.

    We offer bulk cordwood, green, straight off the processor delivered to the customer in 5 cord increments at a 30% discount compared to smaller loads of seasoned wood that gets handled 3 times before delivery and sits in a pile not making us any money for 1-2 years.

    It's called wholesale vs. retail pricing.
  15. slls

    slls Minister of Fire

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    Lowes in Brewer has Penningtons for $5.99 a bag and no takers, must be no shortage or the bad press.
  16. Turbozcs2003

    Turbozcs2003 New Member

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    Most retailers mark every thing up 100%. if they pay 100 you are paying 200. Then they put 20% sale for 160. something like that.

    Anyhow I paid 270 a ton in June plus another 10/ton for delivery. Bought 5 tons form Compressed Wood Supplier, Ohara Ice in Biddeford and they are the Athens Maine Wood Pellet pellets.

    Now if I could only see my stove some day :)
  17. globewyre

    globewyre Member

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    The home depot here is sold out after 2 weeks. Just 1 out 6 HD within 20 miles of me was selling pellets. The walmarts said they should get some in september.
  18. sinnian

    sinnian Minister of Fire

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    :bug: Holy cow I found something I can agree with DiggerJim on (jk)

    I have said the above over and over................ WE are the ones that drove up the price the most. Sure transportation costs went up, but not to the degree pellets have. There are dealers around me that WERE charging $250 per ton with $1.25/mile one way. Now they are $275 per ton and $1.50/mile one way. Though still a reasonable price to some, it did not cost the dealer any more ~ they just found that people were willing to pay it.

    Collectively if we ALL said we will not buy pellets unless they were $225 per ton and stuck to that, eventually they would be $225 per ton. However, if they started at $275, sure as heck someone would panic and buy at $250 ruining it for everyone else (that was just a extremely brief example)

    (Unfortunately DiggerJim it is not required reading for the majority of high schools, but can be found on a lot of college economic syllabuses )

    We (Mainers) will also see an increase in supply and a decrease in price (as long as we don't buy at the inflated prices) of out of state pellets due to having to only pay the shipping cost one way. Until the 'taters are harvested we or the sellers (then us) have and will be paying for the trucks return trip. When the 'taters get harvested the trucks will have something to go back with.
  19. MainePellethead

    MainePellethead Minister of Fire

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  20. imacman

    imacman Guest

    The HD near me had 40 tons in stock a week ago (@$279), and when I went by last night, it looked to be still at least 30-35 tons still there....guess the "panic" buying is starting to slow down.
  21. j00fek

    j00fek Feeling the Heat

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    good call, i forgot about the panic buyers (4-7 tons at once), im sure thats what it is... hope next year we will have plenty of stock, more people will be switching still but not as many as this year.
  22. MainePellethead

    MainePellethead Minister of Fire

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    I was at Lowes in Biddeford Maine yesterday....they are taking orders for hard wood pellets for 5.99 a bag but only sold by the pallet. ....they said they should be in in a couple weeks. They had softwood pellets for 5.49 a bag and they would sell by the bag or pallet. I bought a ton of them to try.
    HD didnt have any and said they was hoping to get some in a couple weeks.
  23. Panhandler

    Panhandler Minister of Fire

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    Not sure what Lowes is doing this year. Both stores is my area (St Clairsville & Wheeling WV) are not offering a ton price. When I called a few weeks ago, they both said bag price ($5.99 per) only and the Wheeling store said they were limiting purchases. I'll have to check back with them but it kind of ticked me off. I bought my stove at a Lowes 3 years ago and have bought almost all my pellets from them since. It may have something to do with the fact that Pellet stoves haven't really taken off here as far as I know. Got 3 tons for $239.50 each at Tractor Supply. Want one more to be sure.
  24. chrisasst

    chrisasst Minister of Fire

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    I called around today, lowes & home depot (40 minutes away) and they have non in stock and not sure when they will. My tractor supply store said they are backed ordered 200 tons !!! from their presale in august. I finally found and bought 5 tons (empires) making 6 tons that I will have on hand (which I am still probably 2 tons short). went through 1 ton a month last year...
  25. JustWood

    JustWood Minister of Fire

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