Deal or no deal?

[Big_Eddy]

Sounds like it worked out for the best.
I would have been tempted with the initial offer - he sells you cut and split wood in bulk, and you season and retail it at 100% markup.
I wouldn't go anywhere near the last offer - you do all the cutting and splitting and he get's half the sales.

As for partners - no way, no how, not ever. Lone Wolf is right there.

 

[lone wolf]

So what seemed to be too good to be true appears to be just that. He hasn't delivered any wood at all and we spoke today. He has come at me with a partnership plan again. As I said before, I trust him, but I do enjoy being my own boss and answering to no one. His idea is to supply the logs and let me use his TW-6 with log lift and 6 way wedge. I process and we share delivery duties for a 50/50 split. I have already thought about scaling things down after this year so I don't continue to destroy my back and to spend more time with the family. He knows my concerns and countered with lets give it a one year try. I have some thinking to do.

Trust no one!

 

[lknchoppers]

I passed on the offer. I got a call from a guy who owns an excavation business who was clearing land and looking to unload logs. He dropped off 3 30 yard dumpsters and 2 20 yarders. I also have picked up around 5 cords of free cut oak and have a few more feelers out there for really cheap/free wood all within 10 miles. So long story short, I will have more wood to process than I have time.

I think you did the right thing. Having partners in the firewood business is tough. To me it is not a great business unless I can keep all the profits or invest it back into the business. I also like it because of it's simplistic nature and I get a little break in the summer. Your customer base is what is very valuable. I know what you mean about wearing out your body, I am feeling the affects of moving so much wood mostly alone. As we get older we need to do less work and produce more $$. There are three ways to accomplish this from what I see. Broker more wood, Automate more and slowly raise your prices over the future years without becoming the highest priced guy out there of course. Any wood dropped at my wood yard I do not pay for and there seems to always be more than I can process. I spend a lot of time negotiating deals on large amounts of wood ready to be delivered (I only buy wood that is split).

 

[lone wolf]

???

 

[jrider]

???

I passed on it. Never got everything cut and split that I had and am already have people waiting on delivery of 20+ cords.

 

[lone wolf]

I passed on it. Never got everything cut and split that I had and am already have people waiting on delivery of 20+ cords.

I noticed its starting because the cool weather also.

 

[jrider]

Deliveries start this weekend. Have 32 cords ordered so far. Nothing like starting behind.

 

[Guswhit]

Trust no one!

Yes indeed, trust NO ONE! This spring I hunted around for someone to help me split. Split only and I had all of the blocks precut and stacked nicely so you could just keep moving the splitter over as you split. Thought I found a descent younger kid(21 years old) that was going to work out. He happened to land a pretty good job before things took off on my end and he said he wouldn't be able to work. No problem right? Well imagine my surprise when I see a firewood stand setup right outside a park I supply with a cut rate price on the bundles!

 

[jrider]

Yes indeed, trust NO ONE! This spring I hunted around for someone to help me split. Split only and I had all of the blocks precut and stacked nicely so you could just keep moving the splitter over as you split. Thought I found a descent younger kid(21 years old) that was going to work out. He happened to land a pretty good job before things took off on my end and he said he wouldn't be able to work. No problem right? Well imagine my surprise when I see a firewood stand setup right outside a park I supply with a cut rate price on the bundles!

It was him I take it?

 

[sundance]

Yes indeed, trust NO ONE! This spring I hunted around for someone to help me split. Split only and I had all of the blocks precut and stacked nicely so you could just keep moving the splitter over as you split. Thought I found a descent younger kid(21 years old) that was going to work out. He happened to land a pretty good job before things took off on my end and he said he wouldn't be able to work. No problem right? Well imagine my surprise when I see a firewood stand setup right outside a park I supply with a cut rate price on the bundles!

Don't know what you offered, but he will likely find that once the costs accumulate his price is losing money. Of course if dad is covering a lot of the expenses it may look different. Unfortunately it will impact your season sales.

 

[sb47]

Is he going to do everything? Cut split and haul to your farm? Finished product? Or is he still going to drop off rounds and you still have to split and stack?
I see several things that could happen here. He can cut you off completely by not giving you anymore wood.
Or he could do it for short time and decide it's not worth his trouble.
You will be giving up most of your quality control but you can inspect the product to see if it meats your standards.

If you decide to go it alone, your gonna have to secure a new material source and compete with him for sales.
You do have an advantage over him with your customer base. However people will quickly go for a lower price that's offered even if it's just to try them out.
I would consider working with him, but I would try to get the best of the deal.

I've been stocking up this summer so I can start a price war with my competitors this year.
Good luck!

 

[jrider]

Is he going to do everything? Cut split and haul to your farm? Finished product? Or is he still going to drop off rounds and you still have to split and stack?
I see several things that could happen here. He can cut you off completely by not giving you anymore wood.
Or he could do it for short time and decide it's not worth his trouble.
You will be giving up most of your quality control but you can inspect the product to see if it meats your standards.

If you decide to go it alone, your gonna have to secure a new material source and compete with him for sales.
You do have an advantage over him with your customer base. However people will quickly go for a lower price that's offered even if it's just to try them out.
I would consider working with him, but I would try to get the best of the deal.

I've been stocking up this summer so I can start a price war with my competitors this year.
Good luck!

You haven't had the time to read this thread completely it seems. I didn't go for the offer but I can't understand why anyone would want to start a price war with firewood...there's too much damn work that goes into to cut myself short. I sell my firewood for the price it's worth to me, not to try and drive someone else out of business. And not to sound too cocky but most of my customer base isn't going anywhere...I have such a good reputation on the local facebook pages, I could raise my prices significantly and still probably sell out.

 

[lone wolf]

You haven't had the time to read this thread completely it seems. I didn't go for the offer but I can't understand why anyone would want to start a price war with firewood...there's too much damn work that goes into to cut myself short. I sell my firewood for the price it's worth to me, not to try and drive someone else out of business. And not to sound too cocky but most of my customer base isn't going anywhere...I have such a good reputation on the local facebook pages, I could raise my prices significantly and still probably sell out.

Well if someone had 2 or three hundred cords and they had to move a lot of it you would see a big drop in their price. That is one scenario, the other is if they don't know any better!

 

[jrider]

Well if someone had 2 or three hundred cords and they had to move a lot of it you would see a big drop in their price. That is one scenario, the other is if they don't know any better!

I would hope that if someone had 200-300 cords ready to go, they would know if their market could support that much more volume without having to drop prices.

 

[lone wolf]

I would hope that if someone had 200-300 cords ready to go, they would know if their market could support that much more volume without having to drop prices.

Well if they do they wont be able to get rid of it fast enough around here anyway so they drop the price so they dont get stuck with 3 y/o rotten mushroom wood. Down where you are there is less Oak available am I right?

 

[jrider]

Well if they do they wont be able to get rid of it fast enough around here anyway so they drop the price so they dont get stuck with 3 y/o rotten mushroom wood. Down where you are there is less Oak available am I right?

There's plenty of oak around here and it's fortunately very easy to move.

 

[muddstopper]

I've been stocking up this summer so I can start a price war with my competitors this year.
Good luck!

Kind of like buying watermellons for a dollar and selling them for a dollar and trying to make it up with volume. Might move a lot of watermellons, but you might not make much money.

 

[sb47]

Kind of like buying watermellons for a dollar and selling them for a dollar and trying to make it up with volume. Might move a lot of watermellons, but you might not make much money.

Well obviously I wouldn't cut my own throat, and I haven't decided if I will drop prices just yet.
Like jrider my wood comes delivered from a tree company. That makes my profit margin quite a bit higher then others who scrounge for wood.
I have only thought about it because sales have been slow so far this year. I haven't put my finger on exactly why yet.
I get spells where sales drop off quite a bit, then it's like someone opened the flood gates. I've been through this before and I held fast to my prices and everything worked out in the end.
I'll play it by ear as time goes on and see what happens.
It was really more of a thought then a plan. Though I am stocking up a little more then normal, Just in case.

 

[jrider]

Well obviously I wouldn't cut my own throat, and I haven't decided if I will drop prices just yet.
Like jrider my wood comes delivered from a tree company. That makes my profit margin quite a bit higher then others who scrounge for wood.
I have only thought about it because sales have been slow so far this year. I haven't put my finger on exactly why yet.
I get spells where sales drop off quite a bit, then it's like someone opened the flood gates. I've been through this before and I held fast to my prices and everything worked out in the end.
I'll play it by ear as time goes on and see what happens.
It was really more of a thought then a plan. Though I am stocking up a little more then normal, Just in case.

Slow sales is a different story but hold tight on your prices if you can especially since you don't have a lot invested into the final product.