Has anyone tried starting a local pellet co-op ?

[squeed]

I'm a new pellet insert owner and I had my stove installed in February, so I'm working on the original ton of pellets that I bought from the dealer when I got the stove, plus a few runs to the Depot for some "Stove Chow". But I'm thinking ahead to next season where I'll probably buy 4 tons. I'm thinking about starting a local pellet co-op by advertising in the paper for people that want to join. The plan being to bring in a truck load and split it up. I have access to a parking lot at a local business, who will agree to let me keep the truck load there for the weekend while people can come to pick up what they bought. Here are my questions.

1. Has anyone set one of these up and how did you advertise it ?

2. Since the first time you do this you're dealing with strangers, how do you handle the money, you might not trust them and they might not trust you ?

3. Are regular people, aka non-dealers, able to buy a truck load from the mill ? Or do you have to go through someone like PelletSales.com ?

-S

 

[InsaneWayne]

I think that a truck load is 22 tons. They should be individually sealed, but you don't want them sitting out in the rain. You will also need a fork truck.
The local lumber supply house was paying just over $200/ton - selling for $300 ton delivered. Having them deliver saved me ~ $40 in hassle and gas.
If you can figure a way to keep them safe and dry, then I'd say go for it! Just make sure of the quality of the pellets.

Remember some got stuck with: Future fuel II Nothing but horse bedding. Not worth more than $2.20 a 40lb bag.

Good luck

 

[squeed]

I have access to a forklift at the location where I would have the truck load delivered. A 2 question.

Are you saying that $200/ton is what dealers typically pay ?

When you order a truck load, do you have to take it off of the truck when it arrives or do they do it ?