Does this sound like BS to you?

[strangemainer]

I noticed a dealer selling a very good pellet at a very good price. I knew of one other guy in my area carrying the same
brand. I called him and he was $24 a ton higher. He told me he had an agreement with his supplier to sell them at that price.
I was like good luck with that.
Thoughts?

 

[Stentor]

Sure it's possible. Whether it's smart or enforceable is another question.

Now and then you read a story about manufacturers setting a price floor for their products and maintaining it legally. Usually the reason is that they make a premium product and don't want it to be "cheapened" by low prices. Think name brand fashion clothing or expensive wrist watches. Whether that sort of agreement goes into place in the pellet business is something only someone in the business can say. Pellet brands are not really that differentiated, as you can see by the many comments here. Stoves? I don't know.

 

[MainePellethead]

I mentioned similar in a post before. Berniers on Rte 4 directly told me that TWO plants in Maine will not sell to him because he was undercutting Jr. across the road at D & J and others. The Pellet plants have done that and its very unfair to the consumer when they can dictate price to the distributors of their product.

I noticed a dealer selling a very good pellet at a very good price. I knew of one other guy in my area carrying the same
brand. I called him and he was $24 a ton higher. He told me he had an agreement with his supplier to sell them at that price.
I was like good luck with that.
Thoughts?

 

[strangemainer]

mainepellethead - thats exactly the place I was talking about. Maybe its not BS...but its not right.

Like BTU said, why do they care if they are given away? they made their money!
This is America last time I checked. Dealers should be able to sell them for whatever price they want!

 

[Romy]

Don't believe everything Bernier tells you. The guy is a vacuum cleaner salesman selling pellets...

I mentioned similar in a post before. Berniers on Rte 4 directly told me that TWO plants in Maine will not sell to him because he was undercutting Jr. across the road at D & J and others. The Pellet plants have done that and its very unfair to the consumer when they can dictate price to the distributors of their product.

I noticed a dealer selling a very good pellet at a very good price. I knew of one other guy in my area carrying the same
brand. I called him and he was $24 a ton higher. He told me he had an agreement with his supplier to sell them at that price.
I was like good luck with that.
Thoughts?

 

[MainePellethead]

I agree..... but.... in the past they have had a price war with each other... but remember....he came back from retirement....he doesnt have to do that. Jr(D and J) is an idiot and is raging because he sells pellets and keeps him in check with prices. The Stove shop I bought my Quad from.... if he finds out you bought your stove there....he wont sell you pellets...lol I know 3 people he did that with. ALSO....a Phillipino lady at work had her stove put in awhile back....she had been buying pellets from Jr for 3 seasons. This past season he refused to sell her any because he told her that her stove was getting older and she really should buy another(from him!) She said she was all set and stove worked great!.... He shut her off on pellets. She's done with him.

Look for changes at that site as well though. He is in talks with a stove company for a stove shop and pellet sales... he will move his Vacuum business to the other side of building.

Don't believe everything Bernier tells you. The guy is a vacuum cleaner salesman selling pellets...

I mentioned similar in a post before. Berniers on Rte 4 directly told me that TWO plants in Maine will not sell to him because he was undercutting Jr. across the road at D & J and others. The Pellet plants have done that and its very unfair to the consumer when they can dictate price to the distributors of their product.

I noticed a dealer selling a very good pellet at a very good price. I knew of one other guy in my area carrying the same
brand. I called him and he was $24 a ton higher. He told me he had an agreement with his supplier to sell them at that price.
I was like good luck with that.
Thoughts?

 

[Pellet-King]

Pellet prices are a ripoff, back 5 yr's ago they were under $150, it cost's barely nothing to produce once you have the equipment.

 

[summit]

Pellet prices are a ripoff, back 5 yr's ago they were under $150, it cost's barely nothing to produce once you have the equipment.

5 years ago they were giving away sawdust at nearly every lumber mfg plant there was, now its a precious commodity.

 

[MainePellethead]

Yup...thats correct. I remember one dealer of stoves back about 5 years ago telling me....theres no money in pellets that he only carried them as a service. And that was about the 150 range back then...5 years later they doubled....they have MADE it a $$ maker. But thats ok....like oil....at times they'll have huge stockpiles....but unlike oil...they wont be able to sit on it. Hence..."fairly" decent prices.

Pellet prices are a ripoff, back 5 yr's ago they were under $150, it cost's barely nothing to produce once you have the equipment.

 

[defield]

BTU,

I must admit that I enjoy reading your information and insights about the pellet industry. Especially when you get a little cranked up!!

Also, I looked at a display of Okanagan pellets recently and they look like a quality product. Willl try some this fall.

Regarding your post:

" . . . . Just ask Maine’s Choice how it worked out for them this year. " Is that the mill that had the explosion recently? Do you have any updated information about their plans to rebuild?

Additionally, having a wife who is a former English teacher, she has made me way too aware of misplaced modifiers. Your statement "…actually you can bid on one that went bankrupt in VT next week…" makes the sentence read as if the mill went bankrupt next week. If stated as . . . actually, next week, you can bid on the one that went bankrupt in VT . . . .You would have spoiled my fun. Sorry, could not help myself . . . . . . .

Please keep the posts coming and ignore my pickiness.

Old Ranger

 

[MainePellethead]

Maine Choice(geneva) will be fine....they'll rebuild. Maine looks very well as far as Pellet Plants. Also a plant that my cousin is the Manager of Operations at in Burnham plans to come online around mid winter(their capacity will go to 100,000 tons a year). So....pellets wont be as bad as last season as far as supply. Besides....buy EARLY is the key. Buying in December is not kosha.

 

[rona]

There is a growing large market in Europe for pellets made in Canada and the US. So there will be no freebies in the wood pellet industry.
If you want cheap pellets maybe you should get together with someone else and buy a pellet making machine and have a go at it.
People have a right to make a profit in a business whether it be producing pellets or any other business. If there was no profit people wouldn't risk investing in a business. But the consumer has the ultimate power because if the product is to expensive the consumer will walk away. A example of that is why did you get a pellet stove in the first place? Save money on house heating bills as oil was to high or electric was to high. Buy a pellet stove and save cash.
As wood pellets get more expensive there will be Bio-mass pellets made from waste products that will take their place.

 

[Stentor]

....
I have said this many times, that the real competition comes from Europe as they set the world price for pellets since they use so much more than anyone else. If any mill’s (in the future or current) production can get a better price there, then here domestically, they will probably find a way to sell to them. That is capitalism and we do that better than just about anyone else. If the consumer won’t pay the price here, but they will overseas, the manufacture will sell overseas. Most of the production coming out of the south (LA, GA, AL, FL) is already going there and have long term contracts to that effect.
....

The question for me is what effect heavy demand for industrial pellets in Europe will have on residential pellets here in the Northeast. Your Okanagan pellets work great for me because of their residential features - - low ash, few clinkers, good heat, availability, acceptable price. But a large pellet furnace somewhere in Germany could probably burn lots of lower quality wood than premium pellets like yours and the ash or clinkers wouldn't matter. They'd have filters and be cleaned by a team with heavy duty equipment, not an individual with a shovel and brush and ash can. The industrial and residential product lines might complement each other but shouldn't be in direct competition.

 

[THE ROOSTER]

I have looked for pellets made in China, but no luck...

 

[rona]

When I have a choice of ways to heat my home I usually use the more economical method that works for me.
The phrase (too high) was meant as given a choice of fuels to use one would be higher priced then the other. If LP in cheaper then electricity I will use it. Same as the choice between pellets and corn.
Eventually you will see more crop residue being made into pellets which will become another alternative fuel.