Pellet Buying Co-Op

[fedtime]

Does anyone have any tips on forming a pellet buying co-op?

I've had it with the lack of competition in this part of Canada and figure if I don't take the bull by the horns, I should stop complaining about the insane prices we pay. Why is it that Canadian made pellets sell for less in the USA? Volume plays a role no doubt, but $6.50 per bag at the start of last winter in Halifax? Even $6.00 is way too high. We have three pellet choices: Eastern Embers, Cozy and LG and, go figure, they were priced the same almost all winter. EE sets the price, and the others fall in line, from what I can see.

I figure if I can get a group together that will purchase 30 or 40 tons at a time, that should be a good start. Or is this number way too low? What would be a good target to get a decent price on pellets?

What are the ups and downs? Any suggestions on how to approach suppliers? Am I in dream land on this?

 

[smoke show]

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[hossthehermit]

Does anyone have any tips on forming a pellet buying co-op?

I've had it with the lack of competition in this part of Canada and figure if I don't take the bull by the horns, I should stop complaining about the insane prices we pay. Why is it that Canadian made pellets sell for less in the USA? Volume plays a role no doubt, but $6.50 per bag at the start of last winter in Halifax? Even $6.00 is way too high. We have three pellet choices: Eastern Embers, Cozy and LG and, go figure, they were priced the same almost all winter. EE sets the price, and the others fall in line, from what I can see.

I figure if I can get a group together that will purchase 30 or 40 tons at a time, that should be a good start. Or is this number way too low? What would be a good target to get a decent price on pellets?

What are the ups and downs? Any suggestions on how to approach suppliers? Am I in dream land on this?

People that I have talked to have said it's not too hard to do. Generally, you'll need to commit to at least 1, usually 2 trailer loads, at around 23 ton / trailer. If you can get enough people, start contacting a few manufacturers, see what they'll do for ya. Let 'em know your shopping. Be aware, you'll probably need a forklift, and someone that can operate it.

 

[fedtime]

Thanks to you both for the replies.

Anyone in or around Halifax interested in this? Be warned: I'm told (Piercy's) that the price in the fall will be $6.49 per bag again. Let's do this and make things better for pellet stove owners.