22.5 Tons Delivered by Penn Keystone

 
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traderfjp
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Post by traderfjp » Sat. Jul. 19, 2008 2:03 pm

I would think that most homeowners would prefer bagged to loose. Bagged is easy to handle, easily stored, convenient and doesn't require the construction of a coal bin. I'm surprised that more breakers aren't selling bagged. Once they invest the dollars for the machinery they could get another 40-60 a ton for the same product. It's like potato chips. When you buy a big bag of chips you get the most value. If you're too lazy to grab a handful and put it into a bag for lunches then you'll pay a premium for the smaller bags. To really promote anthracite a major stove co. should strike a deal with Ace hardware. Show them how to setup and maintain the stoves in their stores. Ace will save big dollars on heat and will also showcase the benefits of coal. Then the consumer could buy their stoves through Ace and bagged coal. It's a match made in heaven. Where I'm at there are only two dealers that sell stoves and one dealer that is a reliable source for coal. The problem is that these stove companies can't fill the orders right now but they should be thinking big and making plans to ramp up production. Timing is everything in life and now is the time to take advantage of this opportunity.

 
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e.alleg
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Post by e.alleg » Sat. Jul. 19, 2008 4:08 pm

My dealer bags his own. It's a slick setup; he has a huge funnel shaped hopper that they fill with bulk coal via an auger, then the workers bag and tie off each bag. It's nice for him because he makes the profit, not the bagging plant, and it's nice for me because the quality of the bagged coal is known. It's the same as the bulk coal just costs more. If I sold coal that's what I'd do. BTW, how much did it cost to rent a bobcat?

 
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Post by traderfjp » Sat. Jul. 19, 2008 4:23 pm

My dealer bags his own too. I did notice that the bags I got from Penn were a definite step up from the ones my dealer uses. Also my dealer uses metal ties which rust out. I paid 175.00 for a half day rental but after gas, delivery, tax, and the damage waiver it came to 366.00.

 
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coal berner
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Post by coal berner » Sat. Jul. 19, 2008 5:02 pm

traderfjp wrote:I would think that most homeowners would prefer bagged to loose. Bagged is easy to handle, easily stored, convenient and doesn't require the construction of a coal bin. I'm surprised that more breakers aren't selling bagged. Once they invest the dollars for the machinery they could get another 40-60 a ton for the same product. It's like potato chips. When you buy a big bag of chips you get the most value. If you're too lazy to grab a handful and put it into a bag for lunches then you'll pay a premium for the smaller bags. To really promote anthracite a major stove co. should strike a deal with Ace hardware. Show them how to setup and maintain the stoves in their stores. Ace will save big dollars on heat and will also showcase the benefits of coal. Then the consumer could buy their stoves through Ace and bagged coal. It's a match made in heaven. Where I'm at there are only two dealers that sell stoves and one dealer that is a reliable source for coal. The problem is that these stove companies can't fill the orders right now but they should be thinking big and making plans to ramp up production. Timing is everything in life and now is the time to take advantage of this opportunity.
First if you live in Anthracite country every house that was built before the 80's has a built in coal bin already Most are
under the front porch Or on one side of the House There are coal delivery man that bring the coal to your house Second Bagged coal is twice the Price even down here in the hart of Anthracite for 6.00 I can buy 100lbs of loose coal Bagged coal for that same price is 40lbs some is 7.50 a bag for 50lbs I am 6 miles from the two biggest bagging Anthracite co. It does to Pay the local's to buy bagged coal No Need for it


 
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Post by Paulie » Sat. Jul. 19, 2008 5:49 pm

Yes, bagged is way more. But.......it is neat as a pin. Except for really old places, there is no existing coal storage in the homes in my area. Bags make a nice, albeit expensive, option. So, I believe as time goes by, more people who change to
coal will go bulk. In the short term, most newbies will burn bagged. Stove users will probably stay with bagged.
Marketing wise, just look at the wood pellet craze. There, bulk is not an option(probably), so the consumer is looking at
bags. Furnace users I am sure will be focused on bulk, in time.
Bagging your own is pretty cool, maximizes profit. Packaging costs, but may ultimately lead the expansion of the Anthracite
Industry. :idea:

 
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Post by traderfjp » Sat. Jul. 19, 2008 6:04 pm

Like Paulie said if you don't live in Anthractie country a coal bin is not even in a persons vocabulary. Most people outside of PA don't understand coal, how it burns, the nice heat it gives off and the maintenance required for a coal stove. Old timers in NY used coal. They had older stoves that needed to be shacked down and they remember ash all over the place. I have a girlie stove and rarely see any ash exceopt for the ash bin. When buying in bulk bagged coal is not that much more than loose. Sumit wants 140 a ton plus 38 a ton for delivery. I paid 190 a ton plus 30.00 a ton for delivery. I went out and bought all the supplies for a coal bin and it would have cost around 900.00 and that was with a floor made from cement board. If I poured a floor we are talking another several hundred dollars. I guess if I was buying a ton at a time from the local dealer maybe loose is a better deal. Oil prices retreated 16.00 in 4 days. Oil could go back to 75.00 a barrel in the next 2 years. It will find a level when investors say hey this is too scary I need to take profits. This will create strong downward momentum and the price of oil will fall. My point is that now is the time for the Anthracite community to think big and promote their product. Most Americans are too fat and lazy to deal with loose coal.

 
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Post by e.alleg » Sat. Jul. 19, 2008 10:47 pm

Believe me, after hauling in 10 tons by hand which is 400 50# bags bulk coal looks a lot nicer. It's cheaper and easier than bags. My problem is I'm too lazy to re plumb and rewire my basement to have a nice coal bin near a window, so I stack up bags in every corner.

 
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Post by traderfjp » Sat. Jul. 19, 2008 10:58 pm

If you can get bulk coal delivered and they can put it where you want then yes it's more convenient. If you have to build a coal bin and shovel coal into a bucket and then stack those buckets then I'm not convinced it's easier.


 
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Post by coalkirk » Sat. Jul. 19, 2008 11:03 pm

Easier? No. Less expensive and worth it, YES. $6.00 per 50 lb bag as opposed to 140 a ton? No contest unless you are infirm or a paraplegic.

 
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Post by traderfjp » Sat. Jul. 19, 2008 11:27 pm

I paid 190 a ton. I paid a 50.00 premium over bulk. That is 1,100 for the 22 tons I purchased. It would have cost me 900.00 to build a coal bin and all the aggravation and time spent. We all have our needs but for me bagged was worth the extra dollars. Also, I now have enough coal for 7 years so when you spread out the difference it really isn't much of a premium. If you already have a coal bin or shoot the coal into your basement then loose makes more sense for sure.

 
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Post by Paulie » Sun. Jul. 20, 2008 1:22 am

Yes oil has burned off a few bucks a barrel. But if you think you will ever see anything under 100/barrel, you are dreaming.
It may come down more, but as soon as a camel poops on a valve...........those 16.dollars will be back and then some. Sit
tight, it is going to be a bumby ride! :o

 
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Post by nuthead » Sun. Jul. 20, 2008 4:15 am

was the 190/ton including the del charge?, and how many miles was it from penn to yuor place?

 
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Post by traderfjp » Sun. Jul. 20, 2008 8:33 am

Oil didn't go up in a straight line and it's not going to take a fast nose dive either. I would say we'll most definetely see 100 a barrel oil again. You'll see - people get greedy and start taking loans to buy oil commodoties and then the smart money pulls out and then the downward momentum begins.

190 was for the coal. I was quoted a shipping price of 30.00 a ton but that was 2 months ago and he honored the price. I'm about 250 miles away from the breaker.

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