Protectionism?

[Karolis]

Hello All,

My company are from abroad and I am selling wood pellets, but this is not commercial, just little survey. I have read that most of You tried various kind of pellets and the quality did not matter that much. My question would be whether or not regular Swede would buy good quality and cheaper wood pellets from abroad supplier? Or is there protectionism for Sweden production?

Thank You for replies

P.S. Pellets are 6 mm and may be packed in big bags and 15 kg sacks. May that be unattractive?

[psau]

For most burners and augers used in boilers the 8mm pellets is better suited the 6mm works better in pellets stoves.

But for most pellet users we tend to go for the cheapest option except for a few who require premium quality. But the main market is price sensitive to say the least.

/Peter

[Ulf Rasmusson]

I agree that the 8 mm is the best pellets for most of the useers. What I have seen from pellets produced abroad even with Swedish company is that the quality is bad and uneven. High quality and a good price would make it interesting to try. Where is the pellets produced and what would the price be in Sweden?

[Jakob]

The problem is the local distribution. This part is protectionistic and expensive, to say the least.

To make the business work you need to be able to supply the pellets throughout the country to the customers doorstep. In small scale (or in fact any scale) the distribution is very expensive due to swedish salary- and tax levels on fuel, etc.

Maybe one could do it cheaper with foreign trucks driven by foreign staff......?

Regards

[Karolis]

Thank You for answers.

I think I have a bit better view of Sweden market now. The pellets has Din plus certificate that most pellet stoves producers gives warranty. The price is quite competitive as I do not know the price of transportation and fees.

[Icecap]

A "normal buy" for a "normal" customer is between 3-6 units of 832kg or 900kg (depending on bag-weight). So a full truck has to deliver at several locations, this demands crane and takes quite some time. Even with clever delivery the customers will be apart quite a bit.

Thus it's not a question of delivering cheap wood-pellets, anyone can do that. The trick is to deliver the correct amount at several locations - and have good prices.

But it's possible to contact the local sellingpoints and let them do the point-to-point delivery and then "only" export full loads to one point.

[Karolis]

So it does not matter that much if pellets is 6 mm or 8 mm diameter? Because I have been told, that in the southern Sweden it is more popular 8 mm and in the north of the Sweden 8 mm.

[Icecap]

For stoves the perferred size is 6mm and for burners (furnace) it's normal with 8mm. The difference is simply a matter of the size of the mecanics in the stove and burner.

[rod02]

Sweeden is not protectionistic. We rather see our own pepole die in helthcare, than spend our whelth on our selves.
There is a saying "low prices are long forgotten when....". I've forgotten the rest. And many seems to never have known....
Don't missunderstand me. I'm positive to buy from other countries, if they buy someting from us. Tradebalance.

Edit:
A quick google gave “The bitterness of poor quality remains long after the sweetness of low price is forgotten.”

[Ulf Rasmusson]

"The bitterness of poor quality remains long after the sweetness of low price is forgotten.” This is really tru but most people will not admit it. As I see it there is no need that the quality shall be worse than the Swedish. It is just to do a good prouction work and have good "wood" materials. Sweden was once known for this (good quality) but it is not the case today. The price is the only factor that counts for many buyers but a combination of price and cost will be a winner! Where will the production be and what will the price end up to?

[danei]

Yes, Price and cost are the most important factors.

[rod02]

It's clear that everybody don't know the difference between cheep and priceworthy....

[danei]

My post were because of that Ulf wrote: " The price is the only factor that counts for many buyers but a combination of price and cost will be a winner!"

But when I order pellets and it is up to it the standard then is only the price important. If it is not according to standard then do I expect a lower price than for the pellets that is according to standard. Some want a quality that is above the standard, but I do not need that. Actually I do not want the hard pellets that most people seams to like.

[teufel]

An american saying is "Buy quality - cry once!" which is much the same, but in other words.

I have tried baltic produced straw pellets for use as bedding in horse boxes. However, eventhough the quality of the straw pellets doesn't mean so much in horse boxes as with wood pellets for heating, it still was a problem when it comes to saw dust and foreign objects.
Saw dust that remain in the air cause breathing problems both for stable staff and the horses.

If this was pellets for burning, the saw dust may cause problem for some burners, and foreign objects is a no-no that really can mess up the machinery.

As someone else here said, make sure that you deliver an even quality of high standard, and that you meet up with the swedish ISO standard for wood pellets. After all, it's a matter of trust between the end user, the reseller and the manufacturer.

Good luck, and please keep us informed about how your business proceeds.

[danei]

ISO stands for International Organization for Standardization. The ISO standards are not Swedish. I have no problem with some sawdust in the the pellets. I would buy pellet even if was not up to the standard consumer pellets, if the price is right. But if you sell pellets as normal consumer pellets for the same price then of course the quality has to as the normal standard stands.