I am confused because I figured every one would be seeing low prices on pellets this year. We have Cubex for $225 and NEWP at $218 and they're not bad prices but I figured with all the pellets out there prices would be much lower. Granted Cubex's factory price is very good the trucking kinda brings that up due to distance. Guess I am just wondering if other people had the same thought as me and sit here scratching their heads.
Confused Pellet Dealer
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I thought the prices were going to be lower too, but it never seemed to materialize. But $225 for Cubex is still VERY good in my book (boy, do I wish you guys were closer to me)......a far cry from the $300/ton I paid for NEWP's in my first burning year of '08 ( I must have been nuts!).
But, we must realize that we are in the Northeast, and we get screwed for EVERY energy source because we're all rich! >:-(
But, we must realize that we are in the Northeast, and we get screwed for EVERY energy source because we're all rich! >:-(
to realize a payback on the initial investment.
after all we do this to save money.
might never save any money(in this area).
after all we do this to save money.
might never save any money(in this area).
Hard to argue that free is too much...
I'm not a pellet burner so I really don't have a dog in this fight. Pellets are a commodity just like NG or oil and the price will go up and down based on supply and demand. It's one of the things that gave me the nudge toward cordwood. I've scrounged all my wood until this year when a little one came along to take up my time.
I don't think the "how many plants do you want to go belly up argument" is fair. To the consumer, if the product is not worth the price, he won't buy it. IIRC, many of the burners on this forum started burning oil and NG last year when the price was low. I don't think it was anything personal... It's the free market until the govt decides to screw with it in the form of subsidizing the industry.
Matt
I'm not a pellet burner so I really don't have a dog in this fight. Pellets are a commodity just like NG or oil and the price will go up and down based on supply and demand. It's one of the things that gave me the nudge toward cordwood. I've scrounged all my wood until this year when a little one came along to take up my time.
I don't think the "how many plants do you want to go belly up argument" is fair. To the consumer, if the product is not worth the price, he won't buy it. IIRC, many of the burners on this forum started burning oil and NG last year when the price was low. I don't think it was anything personal... It's the free market until the govt decides to screw with it in the form of subsidizing the industry.
Matt
Yes there is a glut on pellets out there. Check this thread and read post 19. https://www.hearth.com/econtent/index.php/forums/viewthread/56853/#641554
hoop priced sommersets at $136/ton from the mill. Freight brought the price to $227/ton. We may have seen pellets drop but the freight is still holding and effecting prices.
You can bet you bottom dollar the price of pellets and oil will rise come fall. It always does once heating gets to full swing!
hoop priced sommersets at $136/ton from the mill. Freight brought the price to $227/ton. We may have seen pellets drop but the freight is still holding and effecting prices.
You can bet you bottom dollar the price of pellets and oil will rise come fall. It always does once heating gets to full swing!
The year of the pellet shortage we had NEWP for $195 picked up. So for me being new to the business this is the highest price I have seen so far. This is year number 3 for me and pellets are to close to natural gas and oil right now in the upstate NY area anyways. What I would like to see is a pellet at my door for $185 then I can sell it for $195 and be happy it is under $200.
I'm starting to see some medium quality pellets for 205 but I'm waiting to see what green team comes in at for shoulder season and Okies for winter. Now if I can get Okies at or around $225 down here in Albany NY then I'll come home with three tons that day.
smoke show said:
Then burn oil until pellets get cheap enough for you. We pay about $200 a ton landed at our shop. Pellets are selling so cheap right now I wont even bother selling them. I just tell folks where to go buy them cheap. Id rather do that than run a forklift and have the liability to make $15-$20 per ton.
I'll leave that to my buddies in Bernhards Bay
Pellets are about 25% less at the retail level as last year. Fuel oil is way down from 2008. There is no secret formula for making pellets always 30-40% cheaper than oil or propane. Buy owning a pellet stove and having another primary source of heat you have the option to use whatever fuel is best for you.
If the cost to manufacture pellets ever dips down to the level we saw 5-10 years ago, it wont be for a long time. You need access to plenty of raw material for that. Slow housing starts and furniture sales dont help.
Want cheaper pellet prices? Go buy some more made in the USA furniture!
Franks said:smoke show said:
I'll leave that to my buddies in Bernhards Bay
Sounds good to me. We buy our fuel oil and off road diesel from you and rumor is you will be selling propane soon also.
Meneillys Woodland Products said:Franks said:smoke show said:
I'll leave that to my buddies in Bernhards Bay
Sounds good to me. We buy our fuel oil and off road diesel from you and rumor is you will be selling propane soon also.
Sounds like a nice NYS Route 49 Cooperative. ;-)
Meneillys Woodland Products said:Franks said:smoke show said:
I'll leave that to my buddies in Bernhards Bay
Sounds good to me. We buy our fuel oil and off road diesel from you and rumor is you will be selling propane soon also.
Yeah, we're actually up and running with the propane as of this week. Let me know if you want a salesperson to get in touch with you for pricing. My personal email at work is [email protected]
I have sent a couple of folks your way so far. Not sure if they have bought yet or not.
BTU said:
Yeah, that explains why Athens pellets are cheaper in Connecticut than they are 50 miles away from the mill at my house. I can't even buy them at the mill for what jtakeman was paying.
It's too bad that plants don't sell at their door. Small plants serving locals could probably really keep costs down... and help local employment. Schuylerville, mentioned in one of the other threads here, is less than an hour away. I remember reading about a big plant in the Mohawk Valley also. The MV plant is in a great place transportation wise... The area has many rail lines, the NY turnpike and possibly the cheapest of all, the river system leading to the ocean one way and the great lakes the other.
If I (and many others) could pick up pellets for $136 a ton (mentioned in the other thread) or so and bypass the high freight costs I might consider burning them.
Matt
If I (and many others) could pick up pellets for $136 a ton (mentioned in the other thread) or so and bypass the high freight costs I might consider burning them.
Matt
I don't mind paying a fair price for my pellets. Here in central Maine Cubie's Okies etc. go 285-300 a ton regularly. No breaks around here. Bangor has to
be the worst area to buy anything without paying a premium. I would feel lucky to score any top notch pellet for 250ish. I just got done my annual deep cleaning
and burning good pellets made a big difference this year. The stove was very clean overall.
be the worst area to buy anything without paying a premium. I would feel lucky to score any top notch pellet for 250ish. I just got done my annual deep cleaning
and burning good pellets made a big difference this year. The stove was very clean overall.
EatenByLimestone said:
dont some mills sell to folks at their doorstep? I know, as a dealer, I wont buy from a manufacturer who sells direct to the customer, rather, I would support the manufacturer who supports me. Some mills will certainly sell direct, and have to deal with the myriad of issues we deal with, such as hand-loading a ton into a Plymouth van (and the customer always has " a bad back"), or "I cant get it all now, I'll be back next weekend for 5 more bags" (and the ensuing issues therein), or, on the phone, "I know youre almost closed, but Im only 15 minutes away", or "I dont want THAT bag, or THAT one....", bounced checks, credit card fees, damage to customer's Cadillac Esplanade because the skid scratched the bed, etc...lol...need I go on?
And you want to go through that hassle for $10-20 dollars a ton profit?
Do you think you would be in direct competition with many plants? It seems to me most people still wouldn't have the ability to pick up pellets at the mfgr either because of a lack of vehicle/trailer or distance to the plant.
Matt
Do you think you would be in direct competition with many plants? It seems to me most people still wouldn't have the ability to pick up pellets at the mfgr either because of a lack of vehicle/trailer or distance to the plant.
Matt
The consumer does not and should not care about the problems of manufacturers. Cheap enough is probably 1/2 the cost of the alternative fuel (oil or lp)....or, as one customer said it....free.
Sorry, but that is the way the marketplace works. When I was a stove dealer the economics times were very hard and I occasionally was able to purchase stoves from manufacturers at substantial discounts - even sometimes at less than manufactured cost! I never shed a tear, and I don't think the manufacturers cried for me when they went around and set up other dealers nearby.
It's a hard knock life, as little Orphan Annie told us! Only the strong survive. I didn't make the rules - only a casual observer!
As with any product the price determines the quantity sold. There are SOME people who would pay $400 for a ton of pellets. There are more people who would pay $300. There are a LOT more people who would pay $200.
I have never invested in any pellet or pressed log company specifically because of all this. Heck, Intel just announced 67% profit margins for selling melted sand chips........i
Sorry, but that is the way the marketplace works. When I was a stove dealer the economics times were very hard and I occasionally was able to purchase stoves from manufacturers at substantial discounts - even sometimes at less than manufactured cost! I never shed a tear, and I don't think the manufacturers cried for me when they went around and set up other dealers nearby.
It's a hard knock life, as little Orphan Annie told us! Only the strong survive. I didn't make the rules - only a casual observer!
As with any product the price determines the quantity sold. There are SOME people who would pay $400 for a ton of pellets. There are more people who would pay $300. There are a LOT more people who would pay $200.
I have never invested in any pellet or pressed log company specifically because of all this. Heck, Intel just announced 67% profit margins for selling melted sand chips........i
BTU said:Lousyweather said:
So....who wants to pickup product at my mill?.....Im only about 2900 miles away in BC Canada....but its a very pretty drive...!
What's the price at your mill if I pick up their?
Lousyweather said:
In all fairness to the dealers. If the mills will sell at the door. The price should be at or near retail. Unless there buying large bulk orders.
And I have to admit it. I am one of those pains in the arse's. Local guy hates me when I ask him to rip open a ton for a 2 bag test burn sample(20 some odd times)! Sorry about that.
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