Mix & Match Pellet Tons (interesting purchase option)

[abrucerd]

A place near me is offering a "Pellet Power Packages", where they package different types of pellets by the ton. I thought it was an interesting idea... gives you the advantage of buying in bulk, but still getting a little variety.

(broken link removed to http://pelletsdirect.com/2012%20Power%20Packages.htm)

What do you guys think? Any packages jump out at you?

 

[joescho]

It is interesting. I like the idea of having the variety, however although the ad says its a cost saving solution, but it looks a little pricey to me. I can get 4 ton of Allegheny for $992 and I'll bet I can get 4 ton of Barefoot for about $992.

 

[IHATEPROPANE]

I like the idea of mixing pellets in case you get a bad run. Their prices are competitive for our area.

 

[Mike D]

I like the concept, I'll bet others may try this at some point to move slower selling inventory. If necessity is the mother of invention, perhaps competition is the father.

 

[imacman]

Especially nice idea for the new pellet burner who needs some variety to see what burns best in their new stove.

 

[AbetterChimneynm]

I think this is a great idea, the only reason i don't offer it at my store is where we are it does not get as cold as back east and people dont care they just buy it by the ton...

 

[smwilliamson]

Wow! What a marketing concept! Ordering different flavors by the ton. Seems like you could have done that anyway and arrived at the same price...clever, they are pushing the 3-4 ton purchase.

 

[Lousyweather]

In my cursory look at the website given, it basically just seems that they are selling multiple tons, just tons of different product. I am relatively sure that any retailer of pellets, who sell more than one brand, can do the same (in fact, its quite common). Most folks do it to try out a new brand of pellets.....maybe they burn 4 tons per year, for instance, but they want to try another brand, so, they order 2 tons of the brand they burn most, then try another two brands....4 tons! I dont really see how this is clever marketing (unless Scott was being facetious!).....its in fact very commonplace. Given that there arent any real cost savings here, I just dont "get" it, I guess. Heck, if its too hot in the room, why not try being energy concious, and turn your stove down! (Just send the checks to me for this great idea)

 

[thedude110]

I would prefer a "mix-and-match" ton, where I can go to a web page, select x bags of each brand, pay a per-bag rate (maybe .05 cents more per bag for the labor), and then have "thedude110's mix" ton delivered.

The product as advertised on the linked site is too constraining -- what if I want one of the brands in a power package but not the other?
It's a great way for a vendor to get rid of excess product, but from a consumer's perspective it's more constrictive than just buying single brands by the single ton.

 

[Lousyweather]

the single "mixed ton" approach is an interesting one, but for $.05/bag, that works out to $2.50/ton.......now, consider someone has to open another skid, hump the bags onto a new skid, then re-shrinkwrap the skid for pickup or delivery, and the $2.50 probs wouldnt cover the cost...so, I guess the question might be how much MORE would you pay for a "mixed skid"? I figure, from a retail standpoint, and the fact that I need to pay someone AT LEAST minimum wage, plus a skid, plus the shrinkwrap, plus some modicum of profit, it would probably need to be at leat $20/ton more, at a minimum.....what say you?

 

[smwilliamson]

(unless Scott was being facetious!)....

 

[Don2222]

I think Scott is right.

Most people I know around here, always buy the cheapest brand of wood pellets to save money. I always buy regular gas. No costly HiTest!
So the store ends up with alot more of the expensive brand left over!

So buy mixing in the more expensive brands they are doing two things.
1. Selling more pellets by giving a deal to lower the cost!
2. Selling more of the more expensive brand!

 

[thedude110]

the single "mixed ton" approach is an interesting one, but for $.05/bag, that works out to $2.50/ton.......now, consider someone has to open another skid, hump the bags onto a new skid, then re-shrinkwrap the skid for pickup or delivery, and the $2.50 probs wouldnt cover the cost...so, I guess the question might be how much MORE would you pay for a "mixed skid"? I figure, from a retail standpoint, and the fact that I need to pay someone AT LEAST minimum wage, plus a skid, plus the shrinkwrap, plus some modicum of profit, it would probably need to be at leat $20/ton more, at a minimum.....what say you?

It's an interesting question. Would I pay $20 markup for being able to select my own ton? I'm not sure I would, but I think a lot of people would, especially if it were labeled a "convenience fee," or if people got a coupon with that purchase for $5 off their next customizable ton, or whatever.

There may be opportunities for other ideas like "curated tons" or "regional tons." Would I pay $20 for a ton that was "designed by jtakeman?" As a newb, I might. Would I pay $20 extra for the "New England Ton" (10 Vermonts, 10 MWP, 10 Corinth, 10 Geneva, 10 NEWP)? I'm not sure, but I do shop at the Farmer's Market, and I pay a premium there to support my local economy.

I guess that's a circular way of saying that I think variety packs, especially if assembled on demand, are pretty low-risk from a vendor's persective and have the potential to appeal to consumers.

 

[Lousyweather]

It's an interesting question. Would I pay $20 markup for being able to select my own ton? I'm not sure I would, but I think a lot of people would, especially if it were labeled a "convenience fee," or if people got a coupon with that purchase for $5 off their next customizable ton, or whatever.

There may be opportunities for other ideas like "curated tons" or "regional tons." Would I pay $20 for a ton that was "designed by jtakeman?" As a newb, I might. Would I pay $20 extra for the "New England Ton" (10 Vermonts, 10 MWP, 10 Corinth, 10 Geneva, 10 NEWP)? I'm not sure, but I do shop at the Farmer's Market, and I pay a premium there to support my local economy.

I guess that's a circular way of saying that I think variety packs, especially if assembled on demand, are pretty low-risk from a vendor's persective and have the potential to appeal to consumers.

agreed, I dont think it'd be a good idea to preassemble, but I think you are lobbying for the possible need of a mixed ton, while I lobby not really for the need, but rather, the potential profitablility of such an option being available and viable. The local factor is somewhat nil in this case, since most areas do have pellet retailers, or retailers who deliver to that area.
Call me pessimistic (who? me?!! ), but I do not feel that the great majority of folks would pay for the "convenience fee" of around $20. Also, please note, that $20 is probably not making much at all, if anything, in additional profit for the retailer. Why not just buy 10 bags and try them? Many retailers these days sell multiple brands, some of which are ruled out immediately due to their quality or price (cough! infernals)....so, in reality, most retailers would have two or three brands that any consumer is seriously considering given their buying choice (price, quality, etc). As a retailer these days, we tend to get beaten over the head with prices from the Big Boxes (who generally have NO choice but one), and folks might see more expensive pellets at our places (often different brands), but SO many folks refuse to pay much more, or even any more, that it really does not give much incentive to entertain money-losing propositions when the Big Boxes are in a price war and selling below cost........

 

[Cowdogz]

My local guy has a "try before you buy" option. For $10 you can get any three bags of pellets, either all one brand or mix-and-match. You can do this once a season.

 

[Lousyweather]

My local guy has a "try before you buy" option. For $10 you can get any three bags of pellets, either all one brand or mix-and-match. You can do this once a season.

yep, not at all uncommon either.....beleive it or not, most of the retailers out there want their customers to be happy with the product......let em make their own minds up!