Starting a wood pellet business can be a good venture when you plan yourself well. When beginning a wood pellet business, the most you need will be a good supply of raw materials, the right equipment, and know-how. If you would like to go now to start the business in your compound, there would be no need to rent a place.
However, if you do not have your own space to start the business, you can rent a place to build your wood pellet workshop. It is essential to note that it might come with an added cost when you rent a place. Therefore, the price should be manageable when selecting a place to rent, especially when starting from scratch.
Nonetheless, a good biomass supply will be critical for the start of the business. Other things you would need include a complete set of equipment for wood pellet production and overhead costs such as electricity, transportation, and labor. Having a complete set of equipment and requirements will help you work efficiently in every stage of the business regardless of the type of pellet production you want to invest in.
Can you make wood pellets from pallets?
Pallets will not produce quality pellets because pallets are residues and usually bumpy. Producing quality pellets requires you to have relatively good quality raw materials. Suppose you are using a hammer mill. In that case, it will help break the pallets into consistent small sizes.
You may choose from the two types of hammer mills: the diesel or electric hammer mill. Each of them can do the same job but at varying efficiencies. Electric hammer mills have greater efficiency than diesel-operated hammer mills.
Can you sell wood pellets?
You can sell wood pellets in the market in various ways. Choosing the correct way to sell the wood pellets is essential because you need to go through multiple processes. Suppose you decide to sell the wood pellets as an individual. In that case, you may need to work together with another company for marketing reasons.
On the other hand, if you decide to work with a team of experienced marketers, you need to draft the best strategy to market effectively. To succeed in marketing the wood pellets to the right customers means you may expect a good flow of customers to the business. Most important is to give the new customers an excellent deal to spread word of mouth to newer customers.
How much do wood pellets sell for?
The average price of pellets in the market is forty pounds of wood pellets for five dollars each. However, the price may change depending on where you order the pellets and their type. You should expect a price range of four to nine dollars for every forty-pound bag of pellets you purchase.
In the case of your pellet business, you should pay attention to the quality of the pellets. Good quality pellets will attract high prices and profits in return. In contrast, poor quality pellets will barely attract reasonable prices, thus making losses in the long run.