jotul?
Burning Hunk
These pellet threads are fascinating. I may troll around CL this winter to see if I can find a used pellet stove cheap just so I can get in on this.
This Forum is Creating the Pellet Panic!!
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NE WOOD BURNER
Minister of Fire
- Dec 30, 2012
- 754
you can buy a basket and burn them in your stove. get in on the fun.
A large part of the problem is trucking. There is a 35K driver shortage in America today. The economy took out alot of smaller operations, fed regs are discouraging others. Pellets are trucked at a rate of about 3-4 $/ per mile loaded. When other industries are paying above that the pellets are not attractive. Couple that with CT-RI-MASS, have NOTHING to haul back, truckers don't even want to come to those states or the up charge is so much that pellets cost $350+ per ton.
One thing that would help the most is if people would buy early. Dealers pay for those trucks 2-4 weeks after delivery year round there is no delayed payment program, low profit margin (15-17%), can't afford to to stock pile 100K worth of product and wait till Oct. for return. Think about it, you don't want to part with your $$ sooner than you have to neither does a dealer.
Also if your one of the people that goes to HD all year, please don't get upset with the local dealer when you go there in a bind and they can't bail you out.
There are enough pellets for everyone-There are not enough for everyone all at once- thats the way it's always been.
One thing that would help the most is if people would buy early. Dealers pay for those trucks 2-4 weeks after delivery year round there is no delayed payment program, low profit margin (15-17%), can't afford to to stock pile 100K worth of product and wait till Oct. for return. Think about it, you don't want to part with your $$ sooner than you have to neither does a dealer.
Also if your one of the people that goes to HD all year, please don't get upset with the local dealer when you go there in a bind and they can't bail you out.
There are enough pellets for everyone-There are not enough for everyone all at once- thats the way it's always been.
No problem. HD and Lowe's are it for pellets here. No local dealers. And the online outfits don't deliver to this area.
Mr._Graybeard
Feeling the Heat
Amen, brother. I brought home a ton from TSC and had to return five bags because they had obvious clumps from water intrusion. Beyond that, EVERY bag on the skid had some moisture on it. I'm done with them.
Even Menards keeps their pellets under cover in these parts.
NE WOOD BURNER
Minister of Fire
- Dec 30, 2012
- 754
What is the point of a dealer if they don't stock what they sell?
"You can't sell from an empty cart"
The reason a dealer has a mark up is because they invest in inventory to resell.
"You can't sell from an empty cart"
The reason a dealer has a mark up is because they invest in inventory to resell.
Regardless of the reasons the shortage is real. I went down to the local HD and paid for 3 tons a month early and they haven't called with a delivery date because their waiting on the trucks. Lowe's wouldn't take an order because they couldn't guarantee a delivery of the cheap stuff. I see big stacks at all the local TSC branches and that seems to be moving out early too! As of now, there is an unusual shortage of pellets in Concord NH. Does it last? If the pellet pigs are laying stock for next ice age, it may last a season or a month. I feel bad for those of us that can't afford the $800 to cover the winter. If the price gouging starts again there will trouble. Cord wood is pretty cheap in this area. I see myself changing over if things get out of hand. I may lay in a cord or three this winter just in case need it in a couple years. I can always sell it and make a few dollars if the pellet thing calms down.
Pete Zahria
Minister of Fire
I was burning wood in 98'. I had no idea there was a wood pellet stove available. So what happened to cause the shortage?
TimfromMA
Minister of Fire
There are a few theories.
1. Pellet companies make more money exporting pellets leaving less for locals.
2. After last years late season shortages, people are hoarding them.
3. This is just temporary. Most pellet burners have bought their entire season's worth already and supplies will rebound since they have no need to buy more this year.
wsar10
Burning Hunk
If you allow this forum to fuel a pellet shortage, than your one of the sheeples that cast a vote based on what the media tells you ! Quite unfortunate, but the case most of the time. People are too lazy to research ANYTHING anymore.
That being said, I did not run out and buy 10 tons last year because the "forum" said there was a shortage, I simply observed my local market and verified there was no shortage within my local market. I also have a clear understanding (based on simple logistics and economics) that there will always be shorter supply in certain geographical locations.
Locally there are hundreds of tons currently available, and there was last year ALL YEAR as well.
That being said, I did not run out and buy 10 tons last year because the "forum" said there was a shortage, I simply observed my local market and verified there was no shortage within my local market. I also have a clear understanding (based on simple logistics and economics) that there will always be shorter supply in certain geographical locations.
Locally there are hundreds of tons currently available, and there was last year ALL YEAR as well.
Enzo's Dad
Feeling the Heat
TimfromMA
Minister of Fire
I always buy my entire season's worth in April when my dealer offers his early buy discounts. Over a typical season, I'll burn 3 1/2 tons. While I didn't run out, I did run low last year due to the longer than usual burn season. I bought 2 extra tons this year just for some extra breathing room bringing my total on hand to 6 tons. Next year, everyone who bought up pellets this year will only have to buy enough to replenish what they used this winter.
We are going on 10 months of low inventories east of the Mississippi River (west, not so much). More of the inland mill production is being distributed to areas where they will fetch a higher $ (coastal).
Your results this next winter/spring will likely be very different.
Pete Zahria
Minister of Fire
5. People are spending less on cabinets, wood flooring, etc etc that creates source material for mills to press pellets out of
This doesn't help people in our area right now. http://www.middletownpress.com/busi...t-seeks-to-shutter-middletown-pellet-business
The problem with the dealer I use is that the "early buy" price wasn't even a discount. It was the same I paid last year, so I waited not wanting to store pellets all summer. I ended up paying the same price I paid before when I ordered just recently.
Pete Zahria
Minister of Fire
A lot of people in this area, thought the same thing. why buy early if there is no discount?
The only advantage I can see, is right now when they call for their order, they are finding out
there aren't any.. so waiting might not have been the hot setup.
Everyone has their own strategy. Some may change theirs next year..
You are lucky your area has them. Others don't.
Dan
Enzo's Dad
Feeling the Heat
I guess for me it's the practice of advertising a "special price" that isn't really that special. But I suppose that's better than preying on the fears of people with "get them now so you don't get left out in the cold" kind of marketing, whether true or not.
I liken it to the practice of oil companies getting you to pay early for the season's oil in hopes that the price will actually drop for them so they make more money than if you just buy as you need or when the price is favorable.
Pete Zahria
Minister of Fire
To be honest, I don't think there are many dealers that have been doing it for a while, that resort to the scare tactic.
We started preaching the "buy early", in late spring, because we had that gut feeling it was going to hit the fan.
And the worse that could happen, would be that you had your stuff early.
Naturally, the downside was you might not get what you want if you wait too long.
And here we are.... no stock.
As for the 'discount/special price', as it turns out, the prices are starting to rise now, so early on, even though
not advertised as discount, turns out to actually be one..
Things hopefully will get better.. we kept getting told it will. But that isn't helping a lot right now.
And that opinion does not carry a guarantee...
Dan
the pony boy
Member
I haven't been called lazy before. That is interesting. I'm a bridge maintenance superintendent. We don't do lazy 150' up on a beam in -10 with the wind blowing. What do you do for a living?
I was actually asking what caused the shortage of pellets in 1998. There is lots of data available for the 2005 shortage. It looks like spikes in demand from new users plus a cold winter is a common cause. I guess the mills don't make pellets just in case we have an extra cold winter. The cold obviously puts stress on the production cost too.
I was actually asking what caused the shortage of pellets in 1998. There is lots of data available for the 2005 shortage. It looks like spikes in demand from new users plus a cold winter is a common cause. I guess the mills don't make pellets just in case we have an extra cold winter. The cold obviously puts stress on the production cost too.
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