Yes, we formed a Co-op to purchase pellets......

Cincinnati Kid Posted By Cincinnati Kid, Mar 2, 2010 at 10:20 PM

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  1. Cincinnati Kid

    Cincinnati Kid
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    Jan 6, 2009
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    Cincinnati
    I saw a post on this board about forming a co-op to purchase pellets. We did that locally last year and it was very successful. In fact, we just had a meeting last night to discuss specific's for buying this year.

    We got 8 guy's together. One person started the Co-op by posting a message on Craig's list asking if anyone was interested in joining together in purchasing woods pellets I got involved through word of mouth by a neighbor.

    The leader called several pellet companies and we made the decision on who to purchase from. The organizer collected the money (either cash or check) and then obtained a certified check from his bank made out to the pellet company.

    I setup an appointment with the producer and hand delivered the check. I even took a tour of the plant which was great.

    The producer arranged the transportation and 24 tons of pellets were delivered to a designated address.

    The only area where we need to improve in is the local delivery, once the 24 tons was delivered to a specific location. Most of the guys have their own pickup trucks but I did not. I had to arrange with one of the members to have the delivery made. This added to my overall cost but still saved a nice amount of money.

    I just called a producer this morning and we are in the process of ordering 24 tons. Delivery will be made in May.
     
  2. buildingmaint

    buildingmaint
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    Jan 19, 2007
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    And how much did you save ?
     
  3. Cincinnati Kid

    Cincinnati Kid
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    Jan 6, 2009
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    Last year we saved $100.00 per ton. This year it looks to be more like $110.00 per ton.
     
  4. andyc

    andyc
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    Feb 28, 2010
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    Can you tell us what brand of pellets and how much per ton?
    A few friends and neighbors of mine did the same last year.
    44 tons maine wood pellets $217.00/ton delivered.
    They were good heat but more ash,possibly doing the same this year.
    Andy
     
  5. Lousyweather

    Lousyweather
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    wow! in our market here in MA, in a GOOD market, we dont even make half of that figure in GROSS profit.....unbelieveable how different makets are! I still think your comparison is skewed pricing against a high-priced retailer.....still cant beleive the margins if the are getting $110/ton! amazing
     
  6. Souzafone

    Souzafone
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    Oct 12, 2007
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    You will?
     
  7. hot-n-bothered

    hot-n-bothered
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    Feb 11, 2009
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    How did you unload the pellets off the truck, did you have a high-lo, and did you have a loading platform? Did you have to load everyones pick-up by hand? I was thinking of doing something like this and I have a platform and storage space but only have a manual skid dolly and I can't see my self handling 24 ton of pellets by hand.
     
  8. MCPO

    MCPO
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    May 1, 2008
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    You`d have to have a safe, secure staging area to put 24 tons. All participants would likely have to have a proper vehicle to load and cart off their share and do it quickly if the area isn`t secure.
    A great idea for those who could pull it off.
     
  9. Fsappo

    Fsappo
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    Apr 9, 2008
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    Please find a way to get prices to folks out in central ny. I wont have to bother selling pellets, and at 210 per ton, folks may actually start buying pellet stoves at a better pace.
     
  10. bail6590

    bail6590
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    Nov 8, 2010
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    Loc:
    Cincinnati, OH
    Hi Cinn Kid,

    I live in Cinn also. I just purchased a house that is 20 years old with electric heat and it is already freezing!

    It is a 2200 sq ft ranch with an open floor plan with 17 ft cathdral celings. I am trying to talk with someone that has either a wood or pellet stove.

    We have an existing zero clerance fp and are thinking of either putting in an insert or a free standing. We want something that will keep the main living areas (kitchen, dining room and fam rm warm this winter.

    Do you think a pellet or woodburner is better? I had Vonderhaars out yesterday measuring and they are going to pric out options.

    Does a pellet stove really heat a house that well?

    any advice you can give will be greatly appreciated.

    Thanks-Cathy
     
  11. Cincinnati Kid

    Cincinnati Kid
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    Jan 6, 2009
    290
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    Loc:
    Cincinnati
    Bail 6590,

    I purchased my Harman P-38 pellet stove from Vonderhaar's. They are a great company to work with in my opinion.

    To answer your question, yes, I believe a pellet stove would be the way to go.....look at the Harman Accentra Insert. A wood stove will crank out much more heat but the pellet stove is more consistent heat. It is easier handling bags of pellets rather than chopping and storing wood.

    I live on the SE side of Cincinnati. If you are close by and choose a pellet stove, please call me if you are interested in purchasing pellets. We buy from Somerset direct and they are some of the best pellets on the market.

    Good luck with your decision!

    Steve
    513-753-8117
     
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