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Price Per TON for a Dealer

Post in 'The Pellet Mill - Pellet and Multifuel Stoves' started by schenkp, Jul 28, 2008.

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  1. schenkp

    schenkp New Member

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    I have been wondering how much dealers pay per ton, what type of mark ups they pass onto us the consumers?

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  2. Ductape

    Ductape Member

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    I'm guessing it depends on where they buy their pellets, and how much they buy.

    Our Sams club just had a big promotion (i was unable to get in on) with pellets selling for just over $200 / ton. The dealer whom i bought my stove from sells pellets (from a different manufacturer than what Sams sells) for $275 / ton. He siad he would love to buy a couple tractor trailer loads from Sams to re-sell....... but they have a five ton limit. This leads me to believe he pays more for the pellets he sells than Sam's Club sells them to the public for. It doesn't sund like my stove dealer is making a killing on the pellets he sells...... especially since he needs a forklift and a dry place to store them.

    Like yourself, i'm curious also. As hard as pellets are to get your hands on around here...... i'm already scheming about how i'm going to buy a couple tractor trailer loads to re-sell next spring. There is obviously much more demand than supply around here !!
  3. schenkp

    schenkp New Member

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    Im in CT and have not noticed a supply shotage pellets, you might have to put your name on a list but you will get them. But the stoves themselves might be a different story.
  4. BubbRubb

    BubbRubb New Member

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    Your question is going to have varying answers. If a dealer sells more pellets then they are going to get a better deal from the mill. If the dealer lives farther away from the mill then they will pay higher shipping rates due to fuel costs.
  5. schenkp

    schenkp New Member

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    Understood IM curious as to what the average mark up is in other people experiences.
  6. schenkp

    schenkp New Member

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    I paid HD $249 per ton, wonder howmuch they paid for it.
  7. Iluvwinter

    Iluvwinter Member

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    Probaly $175 a ton
  8. Steveo

    Steveo Member

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    Who cares what they pay unless you are planning on going into business for yourself. If you are planning on going into business plan on investing some money, paying big bucks for lots of insurance and paying lots of other fees for overhead. Owning a business is a real pain in the ass if you ask me, since I have owned mine for over ten years. If the dealers are making $100 per ton, it is really not that much profit when you figure in all the time and overhead. Then if you make a good chunk of money plan on giving alot of it to Uncle Sam lol.
  9. BadDad320

    BadDad320 Feeling the Heat

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    Dealer price is relevant if you want to buy a tractor trailor load (22tons) to split up with a few buddies. 22 tons split between 4 or 5 guys could represent significant savings for everyone.
  10. Steveo

    Steveo Member

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    Very True! I never thought about that and I am always looking for a deal. So does that mean if 4 or 5 people get together and buy a tractor trailer load or two, they will or can get dealer pricing? Has anyone on here done this?
  11. BadDad320

    BadDad320 Feeling the Heat

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    I tried to get 1 or more if possible loads. I was told that they are not accepting any more orders because it was going to be hard to meet current dealer obligations. They needed to meet those obligations 1st. Hey, I'll try again next spring.
  12. kinsmanstoves

    kinsmanstoves Minister of Fire

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    Hmmmm lets see

    I pay rent for a 4,000 sqft warehouse, rent for one storefront, Mortgage on another store, BWC Insurance, Liability insurance, Vendor's license, State Sales Tax, Tow Motor payment, Tow Motor fuel, Tow motor insurance, Commercial license plates on a Ford truck, Commercial vehicle insurance, 7,500 lbs trailer cost, Trailer insurance, I refuse to pay minimum wage to my employees so they need to eat and feed their family, Uniforms for the employees, Corperation tax, accountant fees, Septic inspection, utilities, electric, phones, credit card services, and I know I am leaveing numerous things out so please feel free to remind me what the mark up on a ton of pellets is.
  13. johnnywarm

    johnnywarm Minister of Fire

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    there is a big difference in price if you order 100 tons or more.
  14. schenkp

    schenkp New Member

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    So what does your ton average then prior to marking it up?
  15. schenkp

    schenkp New Member

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    Humm I care becuase im courious and Im not planning on going into business for myself.
  16. schenkp

    schenkp New Member

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    How much of a difference?
  17. kinsmanstoves

    kinsmanstoves Minister of Fire

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    We all have our "secrets". How much is in your checking account? What was the real score of your last golf game?

    Do you ask a car dealer what is the price he paid for the car on his lot? Do you ask the local gas station owner what a wholesale gallon of fuel costs? Do you talk to neighbors and try to by a tanker load of gasoline to save $1.00 a gallon?

    Eric
  18. schenkp

    schenkp New Member

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    I really dont have a clue as to what your on about, you can either answer the question, not answer it or continue on your tantrum. I dont care about the true price of cars, gas or a tanker this thread is about what a dealer pays for a ton of pellets and thats why i started it.
  19. kinsmanstoves

    kinsmanstoves Minister of Fire

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    Relax
  20. schenkp

    schenkp New Member

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    I am relaxed but you seem to be taking this personally, you claim your a dealer yet you wont answer my question. If you have something to contribute great if not go troll somewhere else.
  21. kinsmanstoves

    kinsmanstoves Minister of Fire

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    Got me there. I am done.
  22. johnnywarm

    johnnywarm Minister of Fire

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    i was told its a Deeper discount.it is also allot of pellets.
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