Cypress Pacific Newsletter
OCTOBER 2010 
In This Issue
Standard vs. Premium Pellets
Industry News: Hot Demand for Wood Pellets
Customer Spotlight
Quick Links
Stocked with Okanagan Pellets? 
Winter is fast approaching; it's time to raise the roof with premium Okanagan Pellets.
 
Please Note: Viridis does not recommend storing pellets in a basement unless it is dry and well ventilated. 
Standard vs. Premium Pellets 
In many parts of the country, our thermostats switched on for the first time in a long time.  For pellet stove owners, this marks the beginning of the heating season.  What's important this season? 
 
Increasingly, customers need to be able to rely on their heating source.  Pellet stoves work well and require less maintenance when pellets burn clean.  With low moisture content, higher BTU rating and no contaminates in the pellet, Okanagan Pellets produce less ash which results in better performing appliances and will require less cleaning and further maintenance.
 
Premium Okanagan Wood Pellets
In 1995, the Pellet Fuel Institute established national standards for residential pellet fuels.  While the standard grade pellet fuel has up to 3% ash content, premium grade pellet fuel has less than 1% ash content.  Standard pellets should only be used in stoves designated for their use whereas premium pellets can generally be burned in stoves calling for either standard or premium fuel.
 
Since ash content for premium pellets is under 1%, there could be a difference anywhere from .25% to .8%.  Burning a high ash pellet of .8% versus a low ash pellet could be the difference between 1lb of ash buildup to over 3lbs of ash after burning only ten 40lb bags. 
 
Ash content is one of the key characteristic in determining fuel grade because of its role in maintenance frequency.  At the Okanagan Pellet Company our pellets are consistently tested by third-party laboratory analysis and are superior to the industry average, testing at .39% ash content.  We have confidence in our product, providing quality fuel. 
 
Which product would you buy?
Industry News: Hot Demand for Wood Pellets
 

The Europeans are well ahead of North Americans with respect to deploying pellet fuel sources and currently have over 100 coal plants co-firing with biomass such as wood pellets.  Currently, there are none in North America; the majority of the pellet fuel Europe requires comes from North America.  Demand for pellet fuel continues to grow at an expansive rate.  If North America follows the same renewable energy mandates as Europe, this could provide a huge opportunity for national economic growth and security, and substantially decrease the availability of pellets for the residential market.

 

More companies and residents are turning of coal and switching on biomass.  The government of Ontario has mandated to phase out coal-fired generation by 2014 (Ontario Ministry of the Environment, 2010). In support of Ontario's Green Energy Act, the Atikokan Generating Station is switching from coal to biomass in the form of wood pellets. Ontario is a large advocate for wood pellets and is now a step closer to eliminating coal-fired electricity generation. As a result, 200 construction jobs and an estimated 20 to 25 supportive jobs will be added in Ontario and will sustain further jobs within the forestry sector. Once the plant is converted, 150 million kWh of renewable power is expected to be generated. That is enough to power 15,000 homes each year! Even more spectacular, the annual fuel requirements for the plant are expected to be less than 1% of the total allowable forest harvest in Ontario each year.

 
 Source: Canadian Biomass Magazine, August 27, 2010
Customer Spotlight
 

Scott Williamson, founder of Pellet Stove Service, has discovered the value of premium Okanagan wood pellets - a product which provides clean, high heat and efficient burning, which is no secret to you. Williamson is so pleased with the value premium pellets provide that he even wrote a blog to share some thoughts and ideas on the market.  In his blog, Williamson speaks of the value of quality product presentation and his reasons for advocating our premium Okanagan pellets.  He also believes that "generating new customers are way more expensive than maintaining a customer base."  No matter the size of your shop you can learn a lot by tracking your sales and shop data.  Who is buying your products? How much are you selling to new customers versus existing customers? And the big question on every seller's minds, how can you sell more products? In this blog post, Scott demonstrates how you can answer and address these questions.  

 
 
My name is Scott Williamson; I am the owner of
pelletstoveservice.com, an independent service company for pellet burning appliances in New England.  I cover a lot of territory (6 States) and keep myself super busy fixing, maintaining, modifying, cleaning and installing pellet stoves.  Doug Middleton, Sales representative of Cypress Pacific, and I have been working together this year to offer my customers a chance for something completely new; a trouble free heating season.

 

To do this I needed to align myself with a pellet I knew I can depend on.  I have been burning Okanagan Pellets for a couple of years and have come to rely on them.  During the busy heating season there are times when I will be on the road across New England, not coming home for days.  Since my home is heated with pellets exclusively, my family needs something that is trouble free from the time I leave, until I return.

 

It is important to note that I am a customer of Okanagan Pellets, NOT a dealer.  I depend upon retailers throughout New England to supply my customers with product.  If your business is in New England, you may very well have heard about my business endeavor.  Likewise, if you supply stoves and pellets but do not have a service department, feel free to contact me and I'll do my best to promote your products for you while fixing your customers' stoves.  After all, if they ain't burning you ain't selling!

 
Consider this...pellet stoves work well for busy people.  They get to enjoy the cost savings of burning wood with all of the automation they are used to with centralized heating.
 

Recently, I was in a convenience store for batteries and had an experience that I would like to share which took place in a little corner store in the Town of Millbury, Massachusetts.  I wasn't hungry when I went in, but to take one look at the deli counter, I was intrigued.  There were wooden signs all over the front of the store exclaiming the quality of each ingredient for every sandwich. The one that caught my eye: "perfectly sliced pastrami, moist and spicy, served warm with a lightly soggy roll, deli mustard, caraway, hops and melted provolone, mm good!"

 

As a hobby brewer, I wondered how they used hops in a sandwich.  I started to inquire with the fellow behind the counter and instantly he came from behind the counter with some pastrami on a plate for me to sample.  "Here ...", he said, "take a bite, savor the flavor of this meat.  We have been slow cooking this for 16 hours, it's perfect.  Isn't it great!  Do you taste it?  What is that, Caraway?  Yes, and hops...here, here, try this", he says as he runs behind the counter.

 

"This is some of the juice from the pot, we use this to soggy the roll...just a little, but taste the meat in this juice.  The secret ingredient is...hops.  We brew in some caraway and hops like tea, not too much, just a little bit, that's what gives this sandwich that extra bite! Don't you love it?  Ah, the smell is terrific. Each Tuesday we make this roast, lucky for you today is Tuesday.  You want one, yes?  Good, you are just in time."

 

Well, I have to say, it was the best pastrami sandwich I have ever had. Was it the sandwich?  Was it the presentation?  What happened here?  Basically, I was sold an experience.  The marketing lured me in.  The enthusiasm of the owner captured my interest.  He offered my senses something to explore and delivered a product that was remarkable; I was sold.  The sandwich was $9. Normally I wouldn't pay that much for a sandwich.

 

Consider this...you may be standing in the way of your customers' luxury purchase.   Always start the sale by offering your top of the line, premium products.  You should look for ways that capture their interests, not your own.

 

My sandwich maker never gave me the opportunity to say 'no' to his sales advances.  He was quick to lure me in and build a rapport. Never did he offer a choice when it came to the purchase.  He controlled the sale.  He was not aggressive at selling me the sandwich, he was enthusiastic with his art and informed me of the benefits while allowing me to share that experience with him!

 

Regardless of your prospects' lead-in questions, use your professionalism to find in-roads to sell towards Okanagan Pellets.  You can create simple and effective sales tools that allow you to switch from price to showing them quality.  Look at the color and purity; smell the pellets (and they do make great air fresheners displayed in a bowl), if you are burning a stove in the store, show them a lasered temperature reading.  Make pellets fun!  Fill a sand box with Okanagan pellets for kids to play in while the parents shop.  Okanagan Pellets are free from any chemicals and additives so they can be used in various ways.
 

Consider this...generating new customer's are WAY more expensive than maintaining a customer base.

 
A premium customer naturally gravitates towards a premium line of products.  As an Okanagan dealer, how do you approach selling a premium product?  Why do you offer a premium product?
 

Okanagan Pellets allows you the ability to maintain customer loyalty. Premium customers are very loyal.  Just look at L.L. Bean, people drive 200 miles just to shop there.  I drive 20 miles out my way to get sandwiches. You do not have to look any further than the independent reviews from hearth.com to know that our shared customers keep coming back for more Okanagan Pellets.

 

When a customer has a bad experience with a brand of pellet you can be certain that if you sold it to them, they are gone forever.  Do not give them reason to go away.  Give them a reason to come back.

 

Consider this...people spend money when their gut feeling tells them to; regardless of the price they will pay.

 

Start off your presentation by selling the best possible product you have.  Be upbeat and be completely conversant in your knowledge of why and how your product is better than most.  This will yield more sales, more satisfied customers, more loyal customers and more referrals to other quality-oriented customers.

 

It's not just about "the sale" but "the SALES".  You need more than one; you need many.  You need to sell everyone a sandwich and let them tell their friends to come in and get one too! Become REMARKABLE.  Selling an average pellet will just not do as you will always have unsatisfied customers! Everyone is selling those but you have a chance at increasing your competitive advantage.  How are you going to be different?

 

For more information on how your company can provide better service or to establish a service provider for your pellet customers, please contact Scott Williamson, 508-245-6508 or visit pelletstoveservice.com.

You have a savvy business and you just know you have a good industry story or experience with premium Okanagan Pellets. Would you like to share?  We will be featuring a dealer or customers' testimonial each month to share experiences and valuable industry information to our readers.  If you would like to be featured in our newsletter, you can contact us at (604) 739-9973.  We value feedback and tips successful entrepreneurs like you talk about.  
 
Sincerely,
 
Cypress Pacific Marketing
a Viridis Energy Inc. Company

For Sales or product inquiries, please contact our sales office at 604.739.9973 or email cypac@telus.net

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