Is $6.30 a Bag Price Gauging ?

[tjnamtiw]

Agreed, but let's not confuse change in demand with shift in demand. You can't just 'switch' to coal if you have a pellet stove, per my prior post a couple weeks ago when I ran out of pellets. Your point is well taken, though. The laws of supply and demand apply to pellets also, and vendors have a right to set their own price just as we have a right to not buy them if we lacked the planning to prepare. I paid $6-ish a bag for pellets recently and was glad to get them.

I keep asking this question, but many folks just don't get it.

Is there any less 'gouging' or greed in wanting for a price to be low, rather than high?

I just had 2 tons delivered for $4.65 a bag. Delivery charge from 30 miles away > $11 total! This boy is happy he didn't have the wear and tear on his van and trailer!

I want the price to be low, of course. My philosophy when I go car shopping is be as ruthless as possible. They are NOT your friends. They will forget you as soon as you drive away. They will NOT sell you the car if they are not making any money and conversely, if they cry and moan BUT sell you the car, they made money! It may be hidden in all of the nooks and crannies that they've developed but it's there.

As a case in point for pellets, last year the Lowes nearest me wanted $6 a bag. It just so happened that someone on here from New England had posted a picture of their local Lowes selling the same brand pellet for under $5 (can't remember exactly the price). My Lowes wouldn't budge so I sent the picture and a letter to Lowes Corporate asking why the price was so different especially when the pellets were made in North Carolina, which is closer to me that the other guy. The next day, the store manager at my Lowes called and said I could have as many tons as I wanted for the price in the picture! Now was I gouging to get the same price instead of paying $6 a bag? No, I was being frugal and using the tools we present here.

 

[SwineFlue]

I just had 2 tons delivered for $4.65 a bag. Delivery charge from 30 miles away > $11 total! This boy is happy he didn't have the wear and tear on his van and trailer!

I want the price to be low, of course. My philosophy when I go car shopping is be as ruthless as possible. They are NOT your friends. They will forget you as soon as you drive away. They will NOT sell you the car if they are not making any money and conversely, if the cry and moan BUT sell you the car, they made money! It may be hidden in all of the nooks and crannies that they've developed but it's there.

As a case in point for pellets, last year the Lowes nearest me wanted $6 a bag. It just so happened that someone on here from New England had posted a picture of their local Lowes selling the same brand pellet for under $5 (can't remember exactly the price). My Lowes wouldn't budge so I sent the picture and a letter to Lowes Corporate asking why the price was so different especially when the pellets were made in North Carolina, which is closer to me that the other guy. The next day, the store manager at my Lowes called and said I could have as many tons as I wanted for the price in the picture! Now was I gouging to get the same price instead of paying $6 a bag? No, I was being frugal and using the tools we present here.

And that is capitalism: it is only efficient when there is free dissemination of prices. When there are plenty of pellets, prices are low and consumers buy more. During shortages, prices rise and consumers only buy what they really need. Price "gouging" is an opinion of an unjustifiably higher price, but it's hard to know if it was the retailer, the mill, a middle-man, or just higher costs. But IMO, an accurate tag of gouging is a way to inform consumers that they should buy elsewhere if possible.

 

[RKBAGUY]

...it's hard to know if it was the retailer, the mill, a middle-man, or just higher costs. But IMO, an accurate tag of gouging is a way to inform consumers that they should buy elsewhere if possible.

Or the higher price is a combination of all the above, including tjnamtiw's point about shipping overseas. Another accurate tag of gouging is that it's a way to inform customers that they should have planned better, and to stop blaming high prices on any other factor than our own lack of preparation. And for the record, I include myself in that group, which is why I paid $6 a bag (and would have paid more if necessary) a couple weeks ago.

 

[Pete Zahria]

Another accurate tag of gouging is that it's a way to inform customers that they should have planned better, and to stop blaming high prices on any other factor than our own lack of preparation..

I don't think that is fair, in all cases.
Those that have over the years, consistently bought, for example, 4 tons, and have done well,
can't be blamed for not buying 5 tons each year, "just in case".

I don't buy an extra gallon of milk "just in case". I buy what we have normally used
up in a week.
same with fuel.
If over the last decade, I have used 4 tons of pellets, in June when I get
my next supply, I can't expect to know what the winter will be like.

People that buy month to month or week to week, are the ones that got hurt this season....

This winter just had some circumstances played out, that could not have
predicted, without an accurate crystal ball...

Dan

 

[RKBAGUY]

I don't think that is fair, in all cases.
Those that have over the years, consistently bought, for example, 4 tons, and have done well,
can't be blamed for not buying 5 tons each year, "just in case".

I don't buy an extra gallon of milk "just in case". I buy what we have normally used
up in a week.
same with fuel.
If over the last decade, I have used 4 tons of pellets, in June when I get
my next supply, I can't expect to know what the winter will be like.

People that buy month to month or week to week, are the ones that got hurt this season....

This winter just had some circumstances played out, that could not have
predicted, without an accurate crystal ball...

Dan

And those suppliers who had to scramble around at the last minute and pay higher delivery costs or unexpectedly pull working capital out of their pockets designated for other seasonal merchandise to accommodate those of us who didn't predict how this winter would 'play out' are entitled to their profit. You can't have it both ways.

But, if you care to debate me on this matter, I encourage you to bring in an entire truckload of pellets, tie up three or four thousand dollars, and sell them at Home Depot prices yourself, if you think it's "not fair".

In the meantime, I'm sure there's a tent leftover from the 'occupy' movement you can sleep in while everyone else climnd on your back to get what they need without acknowledging your risk of investment to do so.

Respectfully submitted, of course...

 

[pen]

.....and I do believe it is time to close this thread.

Fortunately, the price of doing so hasn't changed any

Have fun.

pen