pellet prices in western ma

  • Active since 1995, Hearth.com is THE place on the internet for free information and advice about wood stoves, pellet stoves and other energy saving equipment.

    We strive to provide opinions, articles, discussions and history related to Hearth Products and in a more general sense, energy issues.

    We promote the EFFICIENT, RESPONSIBLE, CLEAN and SAFE use of all fuels, whether renewable or fossil.
Status
Not open for further replies.
im not....no comments in my column...I dont know whether its good or bad...lol....the not answering the phone one is my competition tho...hehe
 
HarryBack said:
im not....no comments in my column...I dont know whether its good or bad...lol....the not answering the phone one is my competition tho...hehe
Are you village grain?
 
:red: Harry.... you do realize I was kidding seee--------> :lol:
You know that BB would have done that if I didn't get to it first. ;-)
 
HarryBack said:
No way, GVA, BB is a NICE guy! :coolhmm:
I found your store the name was a bit deceiving though(you sell corn too?) How are the softwood pellets working out and what if any is the price difference? :long:
 
CORN!? shhh..GVA..its a secret!

The softwoods are $30.00/ton less. So far, so good. Im burning them this season, and even tho Im only through 15 bags or so, Ive got to say they seem as good as hardwoods...ask me again in 4 months!
 
Three years ago pellets(New England or dry creek) was $160 a ton!!
Damn price gougers!
 
*in my best Gabby Hayes voice*:

Why, lemme tell ya, sonny....why, I remember when bread was 5 cents a loaf! We kept warm by sleeping with the cows! We fought Indians on the way to our one room unheated schoolhouse, uphill, both ways, in snowstorms, even in June!
 
Jon said:
Three years ago pellets(New England or dry creek) was $160 a ton!!
Damn price gougers!
Actually you may be surprised how much costs have gone up on everything....... in manufacturing and in shipping.
Most manufacturers have to pass their costs on to the consumer or close the plant, which would lead to pellet shortages etc. The gougers are the ones that are still selling a ton for $300 plus still.
 
I can't imagine sawdust going up by 70% in three years!

4x8 engineered 1/2" sheets at Home Depot are $7.99 - made of wood, so prices of raw materials can't be that high!

There simply have been too many pellet stoves bought for the supply of pellets, and the result is increased prices. Think about it - when you go to sell your used car, do you take much less than what someone will pay? Well, the pellet makers think the same as any business person.

If it makes anyone feel better, the pellet makers are not driving around in Rolls Royces or flying in private jets - rather they are investing excess profits in growth. This hopefully will bring prices down in the future.

Hearth.com has a new sponsor that is working with pellet makers, truckers, stores and consumers to bring prices down. As of now they are mostly in New England, but I think they intend to take their business model national and also deal in corn and other biofuels. This is the kind of thing that is needed.

Check out http://www.pelletsales.com . I don't think they are for the person that wants a ton - but for larger amounts and flexible delivery time, they might work out well.
 
That is true - they are around 250 plus delivery....I think. But I can imagine if 4 or 5 neighbors shared a 20 ton truckload, it might be better.

As they build up volume, trucking and other economies of scale, they could end up being competitive with the best prices out there. Although your company is doing it right (large volume, dedicated trucks, etc.), you have to know that the vast majority of stores are not! Some limit the quantity or only sell to those who bought stoves from them. In short, pellets are hard to get, and even harder to have delivered in quantity.

I have heard horror stories about the way folks have been treated when trying to buy pellets. This is not right. There will be a continuing market for MANY players in the fuel biz, and anything which can keep the price down will benefit everyone. The basic rules of business will assure that no one can really undercut the market - lots of weight involved!
 
I was talking about manufacturing costs rising not the sawdust prices.
I keep getting price increases from all of my suppliers based on energy surcharges, and raw materials such as plastics which is a product of petroleum.
And I know places like NE pellet have upgraded their plant more and more over recent years which added to the cost
 
I posted this comment in another thread but it is also appropriate here as well;


Would love to see fuel oil drop just half as much as gasoline has here in the northeast and then see if these arrogant pellet makers keep hanging up on customers. What they all need is a dose of competition again. Last year our local DRY CREEK retailer couldn’t even get these jerks to pick up their phone and one time they accidently did, they hung up on him. All he was trying to do was get a approximate date when his next PREPAID order of pellets were expected. My understanding is that retailers aren’t making a killing on the sale of pellets and if I were a retailer, I’d tell them to pack it in their shorts. Never know the amount you ordered is coming or not and one day out of the blue a tractor trailer pulls in and your expected to drop whatever your currently doing and run around like a mad man on a fork lift getting the load off the truck. Over the short term, we as the end consumers would all would be hurt but if 80% of the retailers decided to tell the pellet manufacturers were done dealing with you, I bet there be a BIG change in attitude real quick like. The manufacturers need to be reminded that all they are selling compressed waste saw dust and get the chip off their shoulders.
 
Are they cutting those surcharges down now that fuel has come down? Some metals have also come down on their highs and yet I don't see those prices falling from the makers. The market will always get what it can for a product, regardless of the cost.

I agree that places need to invest in their plants, but....

Isn't Henry Ford the ultimate example here? As he grew his plants and increased production, and therefore economy of scale, he was able to sell the car for the same price or less...even with vastly improved and additional features.

As you know, improvements should be amortized over the service life of the equipment. I'm certain they would not improve and upgrade the plant unless it allowed them to produce MORE for LESS, while also figuring in a return on the investment. In other words, everybody benefits...hopefully.

This is a very young industry and as such it is likely to make mistakes. Although there is no price fixing, a number of independent operators are causing the price and supply to be less than perfect. I think that the entire industry would benefit from relatively consistent pricing and more ample supply. No one can wave a magic wand and make this happen, but competition from corn, firewood and other fuels will help.

We have to run some numbers.....the NE Pellet plant is approx 100,000 tons a year, or enough to supply 25,000 households with 4 tons each. So how many Pellet stoves already exist in New England and how many have been sold last year and this year?

Tough question - harryback sold over 50 one summer weekend. That's one store! So, let's say he sells 400 a year and 20 other dealers in Mass, plus combined internet, direct, big box and all other sources sell a bunch - how does 6,000 units in this state sound...in one year. So that is 12,000 in two years. Let's add Ct and RI and double that.....so we are at 25,000 new units in the last two years. Add in NH, VT, Maine, parts of NY State and Pa that are within reasonable distances, then add in the tens of thousands of pellets stoves that are older than that.....anyway, I am speaking out my butt here - but there are a LOT of these babies out there! And a LOT more headed in that direction. Sounds reasonable that there will be 100 to 200,000 working units total in a few years. Even 150K units at 3 tons each = 450K tons. Yes, there are other plants - energex, etc...

This does not figure in increased industrial and light commercial use - which will be growing if the price stays right. Given the right set of circumstances, would we consume 1 million tons just in New England?

I'd be interested if I am anywhere in the ball park...someone here probably knows and answer!
 
Unfortunately no the surcharges have not come down for us, still no explanation why.
Last november we added a fuel surcharge of $5 to every customer we deliver to......There was such a fallout from this that we stopped charging the surcharge within 3 weeks to keep from losing our customer base.
 
Status
Not open for further replies.