Buying for next year mailing already - Seriously?!?

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ducker

Feeling the Heat
Apr 22, 2008
409
Leominster, MA
So I just got a spring pricing flier in the mail for prices good through the end of April only. The shocker is that the pellets price has gone up about $15 or so a Ton, as well as a 5% increase on their transportation costs.

This is a local smaller shop, which had very competitive prices, such that they were often lower then the larger vendors. Now with their prices not being and better, it has me seriously questioning whether or not to give them my business.

Why would I buy pellets this early in the season if the price isn't good at all, and the snow hasn't even melted from last season!!

That being said when given the option of NEWP for $250 vs LG Super Premium for $239 a ton, even though I'm familiar with NEWP - I think I'd take a chance and see what the LGs are like.

Maybe its just sticker shock and/or the fact that it's sooooooo early.
 
There is a post a bit down from this one about pellets going up this year due to mainly Higher FUEL costs. Everything takes energey, from the guy with a saw cutting the wood, loaders moving the saw dust, toi the trucker transporting the pellets. Plus with reported raw material shortages, potentially less choices and quantities. We seem to be in a cycle of pellet shortages every 2nd season.

Prices mght be best now, and shoot up once people realize come this fall that #2 heating oil is still $4 a gallon.
 
Good point ducker. Seriously. Good point. Do this...wait until August or September and buy your pellets rather than pay these "high" prices now. Then do us a favor and post another thread and tell us what you paid for your pellets in the summer or fall and we can all gaze in envy at the deal that you get. ;)
 
It's a gamble either way, whether you buy now or later - buying now will either pay off because for some reason (oil prices, etc.) wood pellet prices may go up by this Summer or Fall; OR, if oil prices come down (they are already because of the Japan disaster) then it's only logical to conclude that the prices of pellets may fall along with oil prices. However, with new pellet mills coming online every so often, supply and demand could play into lower prices next season also - if there is an over-abundance of wood pellets next year, I would not be surprised to see $150/ton or lower become the norm next season.

Pellet prices went up in February but I have seen prices fall again recently, a few local stores around my area are back to charging as low as $3/bag ($150 per ton) for premium grade wood pellets, probably because it's the end of the heating season and these stores are trying to get rid of their overstock. No one can predict the future - some guys will tell you to hoard pellets now to avoid paying higher prices later this year, others will say the opposite. I'm not into hoarding for a variety of reasons, so I'll take the gamble and buy my pellets for NEXT season later this year. Then again I only burn 1/2 bag per day avg. so my pellet consumption per season is 1-2 tons, others burn 4+ tons per season. If I burned that many I would probably stock up throughout the year.
 
My neighbor who burns pellets (just got him hooked on Curran Softwood) explained it to me this way:

"I burn 4 tons a year, I can go crazy trying to save 10 or 20 bucks a ton, spend hours researching, driving all over, or I just stock up in the spring when they should be the cheapest, dont sweat the 80 bucks and spend more time fishing and working on the car this summer"

I said "well, 100 bucks a year is 100 bucks a year" He said, "If I was so worried about saving 2 bucks a week, I would drink one less cup of coffee per week"

Keep in mind, this is the same guy who has natural gas in his home but still chooses to burn 2 pellet stoves. Unless you want to make a hobby of it, I guess you do need to put a price tag on your time.
 
I would say that those prices are excellent comparing price & quality to what the big box stores have for pellet prices and quality.
Inflation is coming due to how the government bailed out the financial, insurance, banking crooks. The past couple of years was a "quick fix" which we now have to deal with for 10s of years.
Raw material prices have stabilized but will soon rise so the flat line may be headed up in the fall.
 
vettechick said:
Good point ducker. Seriously. Good point. Do this...wait until August or September and buy your pellets rather than pay these "high" prices now. Then do us a favor and post another thread and tell us what you paid for your pellets in the summer or fall and we can all gaze in envy at the deal that you get. ;)

well that's just silly... :/

I believe last year I bought early... like end of april/may early. It just seems as if Mid-March is crazy early.

From what I usually see on the forums, people are quite comfortable with paying $279+ a ton quite regularly; and to be honest, I feel as if that price per ton is on the high side when compared to prices out side of the NE area. Sure, I can't really buy pellets from that far away, but still the comparison exists.

I understand prices were expected to go up. What I wasn't expecting to see was a smaller, previously good-prices, location to all of a sudden jump up higher then woodpellets perhaps its time for me to make the switch.
 
I just purchased 6 tons for next season over the weekend.

I bought Somersets from Tractor Supply.

$189 per ton.

Couldn't pass it up. I hope to have my fuel for next season in the basement by 4/1. I have moved 2 of the 6 tons already.
 
I have been wrong before. I suggest to grab the grenade now and throw it to save the squad then wait and see who gets hit by the shrapnel later.

Eric
 
ducker said:
I believe last year I bought early... like end of april/may early. It just seems as if Mid-March is crazy early.

From what I usually see on the forums, people are quite comfortable with paying $279+ a ton quite regularly; and to be honest, I feel as if that price per ton is on the high side when compared to prices out side of the NE area. Sure, I can't really buy pellets from that far away, but still the comparison exists.

I understand prices were expected to go up. What I wasn't expecting to see was a smaller, previously good-prices, location to all of a sudden jump up higher then woodpellets perhaps its time for me to make the switch.

I agree it is early. Keep in mind cost of living when comparing prices to other regions of the country. Typically NE cost of living is higher than most places in the USA and much higher closer to the cities. Take a look at housing cost and go from there.
You can cost average by buying half of what you need now and half later on. That way you don't miss out on a "deal" or pay top buck later for all of them later on. That is what I just did for my stock. Half was at 168/ton and the other half was 187/ton so it averaged out to 177/ton. I was taking a gamble that they would drop to 150/ton when they were at 168, but it when the other way and I had to buy again before it got worse.........which it did and now at 212/ton.
 
ChrisWNY said:
It's a gamble either way, whether you buy now or later - buying now will either pay off because for some reason (oil prices, etc.) wood pellet prices may go up by this Summer or Fall; OR, if oil prices come down (they are already because of the Japan disaster) then it's only logical to conclude that the prices of pellets may fall along with oil prices. However, with new pellet mills coming online every so often, supply and demand could play into lower prices next season also - if there is an over-abundance of wood pellets next year, I would not be surprised to see $150/ton or lower become the norm next season.

Pellet prices went up in February but I have seen prices fall again recently, a few local stores around my area are back to charging as low as $3/bag ($150 per ton) for premium grade wood pellets, probably because it's the end of the heating season and these stores are trying to get rid of their overstock. No one can predict the future - some guys will tell you to hoard pellets now to avoid paying higher prices later this year, others will say the opposite. I'm not into hoarding for a variety of reasons, so I'll take the gamble and buy my pellets for NEXT season later this year. Then again I only burn 1/2 bag per day avg. so my pellet consumption per season is 1-2 tons, others burn 4+ tons per season. If I burned that many I would probably stock up throughout the year.

Very true, it's a gamble either way , because no one can predict the future. If you can let me know who's going to win the Kentucky Derby then I will bet a bundle. At any rate, I gambled on prices not being anywhere near they were with the big box stores until just recently, and therefore I loaded up on Green Team and Stove Chow.

If oil prices and pellets go up, I win. If they go down less than 175 -200, which is what I paid, then I'm still a happy camper and load up for 2012!
 
Well with the price of diesel above 4 dollars a gallon what do you expect? The price of pellets, even though they have gone up a little, still beats the price of propane or oil by a long shot. What they need to do is invent the electric powered tractor trailer truck. That would cut down the fuel surcharges.
 
my dealer has always offered his early buy in mid march.
works out great for me thats when the tax refund is coming in.
the deadline for pick up is in july and I only need to put 30% down when I commit to my tonnage.
 
CJ-SR4ever said:
Well with the price of diesel above 4 dollars a gallon what do you expect? The price of pellets, even though they have gone up a little, still beats the price of propane or oil by a long shot. What they need to do is invent the electric powered tractor trailer truck. That would cut down the fuel surcharges.

I think a truck running on wood pellets would be better. Electric will never happen, but wood has a chance if the gas could be cleaned enough. Or just go with a Stirling engine.
 
I agree. Or maybe its time for the steam engine to make its return!
 
My thinking is to have one year ahead neatly tucked away, then this year be working on the following year. That way you have all the wiggle room you want seeking out the best buys.
 
Put it this way, whether I buy now or later for future heating seasons, if the price of a bag of pellets is jacked up (let's say $6 or $7 per bag), I simply won't buy them (unless propane also doubles). Not worth the time spent hauling, stacking, etc. unless my savings are significant.
 
ducker said:
So I just got a spring pricing flier in the mail for prices good through the end of April only. The shocker is that the pellets price has gone up about $15 or so a Ton, as well as a 5% increase on their transportation costs.

This is a local smaller shop, which had very competitive prices, such that they were often lower then the larger vendors. Now with their prices not being and better, it has me seriously questioning whether or not to give them my business.

Why would I buy pellets this early in the season if the price isn't good at all, and the snow hasn't even melted from last season!!

That being said when given the option of NEWP for $250 vs LG Super Premium for $239 a ton, even though I'm familiar with NEWP - I think I'd take a chance and see what the LGs are like.

Maybe its just sticker shock and/or the fact that it's sooooooo early.

I cried because I had no shoes. Then I met a man who had no feet.

You east coast guys slay me. I just paid $325.72 for a ton of Bear Mountain premium pellets just last week. That breaks down to $6.51 a bag. Last year during sale time they cost $303.85/ton; $6.08 a bag. I'm in Washington (the state) and Bear Mountain pellets are made in Oregon. Back in '06 a ton of Bear Mountain cost me $285.60.
It's still cheaper than using the electric furnace.

Take care
 
Roadstar said:
ducker said:
So I just got a spring pricing flier in the mail for prices good through the end of April only. The shocker is that the pellets price has gone up about $15 or so a Ton, as well as a 5% increase on their transportation costs.

This is a local smaller shop, which had very competitive prices, such that they were often lower then the larger vendors. Now with their prices not being and better, it has me seriously questioning whether or not to give them my business.

Why would I buy pellets this early in the season if the price isn't good at all, and the snow hasn't even melted from last season!!

That being said when given the option of NEWP for $250 vs LG Super Premium for $239 a ton, even though I'm familiar with NEWP - I think I'd take a chance and see what the LGs are like.

Maybe its just sticker shock and/or the fact that it's sooooooo early.

I cried because I had no shoes. Then I met a man who had no feet.

You east coast guys slay me. I just paid $325.72 for a ton of Bear Mountain premium pellets just last week. That breaks down to $6.51 a bag. Last year during sale time they cost $303.85/ton; $6.08 a bag. I'm in Washington (the state) and Bear Mountain pellets are made in Oregon. Back in '06 a ton of Bear Mountain cost me $285.60.
It's still cheaper than using the electric furnace.

Take care

They saw you coming.
 
I cried because I had no shoes. Then I met a man who had no feet.

You east coast guys slay me. I just paid $325.72 for a ton of Bear Mountain premium pellets just last week. That breaks down to $6.51 a bag. Last year during sale time they cost $303.85/ton; $6.08 a bag. I'm in Washington (the state) and Bear Mountain pellets are made in Oregon. Back in '06 a ton of Bear Mountain cost me $285.60.
It's still cheaper than using the electric furnace.

Take care

Go to Sumner Animal Grub. Bear Mtns for $285/ton. Personally, the Blazers at HD ($187) are working just fine for me! But, I tried a bag of Bear Mtns and boy are they HOT! Not sure they are worth the extra $100/ton though...
Flynfrfun
 
pellchecked_word">flynfrfun</SPAN> said:
I cried because I had no shoes. Then I met a man who had no feet.

You east coast guys slay me. I just paid $325.72 for a ton of Bear Mountain premium pellets just last week. That breaks down to $6.51 a bag. Last year during sale time they cost $303.85/ton; $6.08 a bag. I'm in Washington (the state) and Bear Mountain pellets are made in Oregon. Back in pellchecked_word">'06</SPAN> a ton of Bear Mountain cost me $285.60.
It's still cheaper than using the electric furnace.

Take care

Go to Sumner Animal Grub. Bear pellchecked_word">Mtns</SPAN> for $285/ton. Personally, the Blazers at pellchecked_word">HD</SPAN> ($187) are working just fine for me! But, I tried a bag of Bear pellchecked_word">Mtns</SPAN> and boy are they HOT! Not sure they are worth the extra $100/ton though...
pellchecked_word">Flynfrfun</SPAN>

My thoughts on the extra cash part. If your stove is maxed out in the cold season with the cheaper pellet and you are still cold. Then the extra buck might be worth it.

I have adjusted my heat level for years with a hotter pellet. It started with my smaller stove that had a hard time in the cold. So now(with my new beast) I keep my stove idling on the medium setting. Lesser pellets in the shoulders to save cash and good hot pellets in the cold. I just don't like maxing out the stove with a lesser pellet as I feel it shortens the life of the unit. A steady cruise is easier on it than an all out full bore marathon! Just my 2 on it.
 
If you hang around this site and pay attention, you should save yourself both headaches and money. You had to be blind not to see the box store pellets going for $219/ton or less. That was enough to motivate me to stash away a couple of tons for the 2011-12 season.

Inflation and fuel costs are going to be BRUTAL. I guess a lot of guys here don't buy the groceries and see the 5-10 cents added on to the cost of consumable products every couple of weeks. That Pepsi cube your wife dragged home that used to hold 24 cans at $4.99 now has only 20 cans. You will surely wish you could find gasoline at $3.60/gal next year.

At this point, any top quality pellets under $240/ton are a steal at this time. Pick your own trigger point to purchase. February pellet prices are history! I just got word that Pellets Direct in Uxbridge MA will be stocking a site favorite, Green Team. Do you really think you are going to see them there at $209/ton?

And as a poster mentioned earlier, even if you are paying $30-50/ton more than what you had to pay to drag a ton in your car/truck, what is your time really worth? Does an extra $150.00 increase in your pellet fuel cost from last year to the upcoming year break your bank?

If you see it and can buy it with cash, do it! It is going to cost you more tomorrow, period! Welcome to the new normal, I-N-F-L-A-T-I-O-N !!!!!
 
Talked to 2 Dealers this week that had some Really Good Pricing. One Dealer was $185/ton and the other that Finally contacted me today (Left him 2 messages in a week), is offering them at $190. Both are Higher than what I paid for my last 9 tons (5 tons at $177-4 tons at $175). So the Wife has been thinking that "Thats what they cost". So its taking a little convincing on my end, to try and get another 3-5 tonsin the bunker. Having 5 tons in the basement is a lot (But NEVER Enough), but would like to have enough for 2 years. If the prices stay up, then I made out. If the prices drop lower, then I lost the gamble. Either way I'm gonna pull the trigger on a few more. Anything under the $250-$235 I paid in past years is a good deal in my mind. This year just made me really greedy too. Love me some Cheap pellets. Should have bought 10 tons of the Somersets when Menards had them for $175. Great Pellet at an even Better Price.....What was I thinking!!??!!
 
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