Pete Zahria
Minister of Fire
If you can get pellets for $239 a ton, they are basically the same..I just checked and local oil prices are at $1.96 a gallon...at that price oil is a better deal than pellets right now...
so then it becomes just a matter of if you enjoy the heat you get from a stove or baseboard...
how long will those low oil prices last, who knows but if they last most of the Winter the pellet dealers who refuse to acknowledge that oil is the better deal and adjust their prices accordingly to try and get people to switch back will be screwed!
People need to understand the difference between 'suppliers', and 'dealers'..
Most 'dealers' do not set the price of pellets based on what they can charge,
but rather by how much you have to sell them for to make a profit.
Dealers aren't stupid. They "get it", that oil is cheaper...
But they can't lose money trying to compete.
When the suppliers go up, usually the dealers go up...
and the inverse is true, at least for us, it is, it's the only way to stay close to the BBS.
They will always have an edge over a small guy selling a few thousand ton a year.
But there hasn't been many 'drops' in prices, from suppliers...
and when there is, it's maybe 5-7 bucks a ton...
but this notion that dealers gouge, or get rich on pellets, is just not reality.
And you can't compare 'dealers' with BBS... different animal entirely.
When you saw BBS selling stuff last spring for $199 or even less, they were losing money!
Dealers can't buy stuff for that... how can we sell it for that?
Those thinking that dealers pay $150, and charge $279 are dreamers...
Dan