SE WI / Pellet Price Up $1.10 per bag??? New Trend?

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Snowmobileaddict

Burning Hunk
Oct 12, 2012
133
Cedarburg, WI
I plan on also including a note in the pellet price report section of the message board, however I also wanted to start a dialogue here as well.

Does anyone know if this is going to be a normal price now for pellets in WI? I've been burning Somersets from Menards at $3.89 per bag for all last year's heating season. They have been that price for nearly one year.

From last week to this week they jumped to $4.99 per bag at every Menards in WI. Thats a big jump. I thought typically the summer months was when the price became more reasonable.

Any ideas as to why the price increased? Home Depot has the same trend now for its Pellets however they never really have a brand worth buying. I realize that this new price falls more in line with what folks pay on the eastern seaboard, but this quite a bit more than what us midwesterners paid last season. Yikes.
 
Lowes ( by me ) raised their prices last spring/summer for wood pellets then lowered them in Sept when everyone else started to get them in.
 
Prices here are up about 5% by the ton lately. Not sure if its seasonal, or some wood product price pressure. OSB is down to $11 a sheet again, after peaking at $16. 2x4s are still high though, over $2.50 for an 8 ft. board.
 
Menards around my area did the same thing. They went from 3.50/bag to 4.49/bag.

At this point my local pellet dealer has the same prices as last year. We'll see what fall brings.
 
I hope they pull back some from $4.99. That's kind of a bummer. At least we only use pellets to heat our finished basement. The rest of the house has natural gas forced air.
 
I buy in spring(March-April) and prices were normal then.
 
When oil equals pellets, oil wins.
 
Why the price increase, simple, cost of electric, NG, and fuel is all up. That and the bulk of pellets produced state side are shipped over seas, where they turn a better profit.
 
Still considerably cheaper then oil which would have to be around ~$2.25 to equal a $5 bag of pellets. It will go down again, Menards will have there 12% rebate weekend Lowes has 10% of coupons. You can usually buy 10% HD coupons on ebay. And pellet prices go down in the fall when the big box stores put up the big signs saying pellets have arrived.
 
I stocked up for the upcoming heating season in April when Somersets were still $3.89 a bag. Yesterday I was thinking up picking up some more just to increase my stash and noticed the big price hike. We'll see what happens in the coming months I guess.
 
Lowes still has pellets for 4.38 a bag. Order them online with a scavenged 10% off code from a deal site. Use your discover card and get a additional 10% off ( 5% using shop discover 5% for home improvement stores ). Pellet price is $3.56 a bag for someone in NE. One of the cheapest way to get pellets at least in New England. Basically how I bought most my pellets last year even found some $20 of $100 coupons online making the price $3.17 a bag using the method above.
 
Still considerably cheaper then oil which would have to be around ~$2.25 to equal a $5 bag of pellets. It will go down again, Menards will have there 12% rebate weekend Lowes has 10% of coupons. You can usually buy 10% HD coupons on ebay. And pellet prices go down in the fall when the big box stores put up the big signs saying pellets have arrived.

This year high grade pellets, oil is same.
5 X 50 = $250, rule 250 pellets 250 oil
 
This year high grade pellets, oil is same.
5 X 50 = $250, rule 250 pellets 250 oil

Not sure where your finding $2.50 oil or that rule.

This is a pretty good comparison tool for various heating types:

www.eia.gov/neic/experts/heatcalc.xls‎

Assuming a oil burner is 85% efficient and a pellet stove is 75% efficient break even is $2.38 for oil for $250 a ton in pellets. Play with the numbers a bit its kinda interesting.
 
Not sure where your finding $2.50 oil or that rule.

This is a pretty good comparison tool for various heating types:

www.eia.gov/neic/experts/heatcalc.xls‎

Assuming a oil burner is 85% efficient and a pellet stove is 75% efficient break even is $2.38 for oil for $250 a ton in pellets. Play with the numbers a bit its kinda interesting.

Too many numbers. I decided to burn oil this coming winter Dec through March, pellets the rest, oil is just too convenient.
 
You'll see a lot of offerings at the end of the summer (pre-season) higher than during the season. There are people who don't shop around and are compulsive, as a retailer, it's always better to start from a higher target and reduce the price as more buyers come in to the market than to start off low and hope to regain profits at a later time. Don't be fooled, a lot that drives the retail fuel price is speculative and everyone is waiting to see what everybody else is doing.
 
Did you know that 86% of all of the profit made from oil leaves our country? So from the moment the oil reaches us to be refined, delivered, home delivered etc... we're doing all that on 16% of the total profit. Read my sig about how to create 140,000 new jobs. Even if it costs a few dollars more for pellets...wouldn't it be worth it? There is a lot more riding on the cost of things than the cost of things if you know what I mean.
 
When you get into your mid seventies, pellets don't look so good, especially at -10 or -15 deg F. 40 lb gets even heavier.
Natural gas is 100 yds away, that's another story.
 
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