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What I found to work really well for filling and compacting (not for a telescope pier though) was to fill the hole with sand (after putting the pier in of course), then lots of water, and then poke it with a thin rod right to the bottom lots and lots. Also make sure to vibrate the rod too. Then put something on the pier to vibrate it for quite a while. This makes the sand settle very nicely, and you'll see bubbles come out. The water helps the sand to compact as well. When it's done, make a little formwork box and pour about 150mm thickness of concrete for a small area around the pier to stop it from moving over time. Keep the concrete wet for as long as you can so it slows the reaction and prevents cracking.
I've had a tall beehive sitting on one such pier (although it was aluminium) for a couple of years now, and it's as rock solid and level as the day it was installed, even though it's subject to all the elements (including some very strong winds) which I assume yours won't be with the shed around it.
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