Thinking about purhasing trailer loads of pellets.

[Wood Pirate]

One of my relatives owns a large vacant warehouse in the catskill mountains just outside of Kingston, NY. A large part of the warehouse is vacant right now and he is thinking about distributing such items as bagged mulch, topsoil, softner salt and wood pellets.

He has a friend who has a tractor trailer and is always making round trips to Maine and New Englands. Assuming he can become a distributor, does anyone know how much he should be paying for a trailer load and how many pallets come on a trailer. Also any ideas for the best selling or most preffered pellets (hardwood /softwood) etc..

I have never burned pellets so dont know anything about them.

Thanks

 

[Lousyweather]

Im told the New England pellet Co isnt taking any more customers this year, and tend to preferentiallly go after stove DEALERS.....

 

[imacman]

I agree with what Lousyweather said above. But you CAN order a truckload from some of the midwest companies. The shipping costs become the issue. I researched this a few months ago, and was interested in doing a group buy for a truckload, but the best price i could come up with after adding shipping was about $239/ton.

Then, we also needed a place to deliver them (you have that covered already).

Plus a forklift to unload them (truck driver does NOT do this).

Tractor trailer loads are typically 22-23 tons.

I live near you (Newburgh), so if you come up with a better deal, and need a buyers, contact me.

 

[Wood Pirate]

He has the warehouse (10,000sf). Has a forklift. The warehouse used to be a factory so it also has beams with bearings along the ceiling that that were used with an electric winch to load materials.

The only problem I see is in order to turn a profit you would have to be able to purchase for $150 - $200 a pallet in order to make in worth while.

 

[wil lanfear]

One of my relatives owns a large vacant warehouse in the catskill mountains just outside of Kingston, NY. A large part of the warehouse is vacant right now and he is thinking about distributing such items as bagged mulch, topsoil, softner salt and wood pellets.

He has a friend who has a tractor trailer and is always making round trips to Maine and New Englands. Assuming he can become a distributor, does anyone know how much he should be paying for a trailer load and how many pallets come on a trailer. Also any ideas for the best selling or most preffered pellets (hardwood /softwood) etc..

I have never burned pellets so dont know anything about them.

Thanks

You might contact Eric to see what he can do for you.

(broken link removed to http://www.kinsmanstoves.com/wholesale.html)

 

[Lousyweather]

He has the warehouse (10,000sf). Has a forklift. The warehouse used to be a factory so it also has beams with bearings along the ceiling that that were used with an electric winch to load materials.

The only problem I see is in order to turn a profit you would have to be able to purchase for $150 - $200 a pallet in order to make in worth while.

Agree with BTU, gonna be difficult.......also, dont forget the myriad of other costs associated with selling pellets.....shipping, loadperson, officeperson, insurance, bookkeeper, and if youre gonna deliver them, a truck, with CDL driver, etc.........

I guess I see new guys in the market every month or so, trying to get their hands on the millions to be made in the retail pellet biz.......well, folks, its not as easy as you might think....in reality, youve got to make the money in VOLUME.....people are quite mercenarial these days with the economy and all, so if you arent the cheapest, or at least competitive, forget it. I think once upon a time, New England Wood Pellet, LLC (Down in Connecticut) was the cheapest....uh...where are they today? I guess his business model was less than ideal.