"Natural campfire bundles"

[woodchuck357]

We haul our limbs to a private dump for later processing into firewood. The boys have been bundling small limbs and dried noodles with up to 3inch limb wood and some split wood tied up with sisial binder twine. They charge almost double the price straight bundles sell for at camp grounds.

 

[Wood Doctor]

You Doubled the Price?

We haul our limbs to a private dump for later processing into firewood. The boys have been bundling small limbs and dried noodles with up to 3-inch limb wood and some split wood tied up with sisial binder twine. They charge almost double the price straight bundles sell for at camp grounds.

You doubled the price? How is that possible? I'm out. Ridiculous in my book. Show some Pics to justify that and maybe we can discuss it. I average about $3.50 a bundle for all the split hardwood logs (7 to 9) that a person can carry--about 30 lb a bundle. That works.

 

[woodchuck357]

High school kids, their folks own the field we dump on, They figured some folks would pay more for non factory looking "natural" bundles. They used the market research method of pricing. They kept raising prices until it took all Saturday morning to sell their pickup load. Not saying their bundles are going to put any one else out of business, but seemed like an idea worth passing on.

 

[Wood Doctor]

Pricing Strategy

High school kids, their folks own the field we dump on, They figured some folks would pay more for non factory looking "natural" bundles. They used the market research method of pricing. They kept raising prices until it took all Saturday morning to sell their pickup load. Not saying their bundles are going to put any one else out of business, but seemed like an idea worth passing on.

Well, marketers call that penetration pricing. Start with a low price to gather in a quick market. Then raise price until the market starts walking away. After the price reaches a peak, the market suddenly evaporates. You have sold some product earlier and made some quick money. However, your business dies with the high price and even the original core customers look elsewhere. It might work in the short run, but in the long run, you are toast.

My price for firewood sold in bundles and by the truckload has not changed in 10 years. I'm still in business. Even if I had Lady Gaga helping me deliver good firewood, I doubt it wood make a difference in January when people are trying to stay warm and get through the winter.

 

[woodchuck357]

I doubt their customers are using the campfire to keep warm in july!

 

[stumpy75]

I saw some wood at Giant Eagle labeled as Fine European Campfire Wood for $7.99 per bundle. It was small split, debarked birch... Laughed all the way to my car, but I'm sure some people were buying it, as there was some missing from the stack!

 

[jrider]

Well, marketers call that penetration pricing. Start with a low price to gather in a quick market. Then raise price until the market starts walking away. After the price reaches a peak, the market suddenly evaporates. You have sold some product earlier and made some quick money. However, your business dies with the high price and even the original core customers look elsewhere. It might work in the short run, but in the long run, you are toast.

My price for firewood sold in bundles and by the truckload has not changed in 10 years. I'm still in business. Even if I had Lady Gaga helping me deliver good firewood, I doubt it wood make a difference in January when people are trying to stay warm and get through the winter.

If you haven't raised your prices in 10 years, I either envy you for getting so much back then or pity you for not adjusting for inflation. I know I wouldn't still be selling firewood at all if I were currently getting 2003 prices.

 

[woodchuck357]

Rain today so I went visiting the boys dad. He said they put in about 12 man(boy) hours after school to fill their pickup with bundles. They spend 3 to 6 hours selling Saturday mornings and take in between $500 and $600. Pretty females in bikinis often get free or steeply discounted bundles so some Saturdays they make a little less!

Their bundles contain 5 or 6 split pieces and are about 2.5 cubic feet in size. There were no scales in the barn so I'm just guessing they weigh 40 to 50 pounds. The handle is a 1.5" limb. The noodles are in a paper bag with a sheet showing how to set up and start a campfire.

Their raw materials are mostly free to them and mostly scrap anyway, so 24 hours work gets them close to a man's 40 hour paycheck. Not bad for a pair of 16 and 17 year olds. Dad does let them use part of the barn for storage, but they own their saws, axes and truck.

 

[zogger]

Rain today so I went visiting the boys dad. He said they put in about 12 man(boy) hours after school to fill their pickup with bundles. They spend 3 to 6 hours selling Saturday mornings and take in between $500 and $600. Pretty females in bikinis often get free or steeply discounted bundles so some Saturdays they make a little less!

Their bundles contain 5 or 6 split pieces and are about 2.5 cubic feet in size. There were no scales in the barn so I'm just guessing they weigh 40 to 50 pounds. The handle is a 1.5" limb. The noodles are in a paper bag with a sheet showing how to set up and start a campfire.

Their raw materials are mostly free to them and mostly scrap anyway, so 24 hours work gets them close to a man's 40 hour paycheck. Not bad for a pair of 16 and 17 year olds. Dad does let them use part of the barn for storage, but they own their saws, axes and truck.

Way cool!

I need to apply for a job with..err..16 and 17 year old entrepneurial bosses...

Oh drat.....

 

[Wood Doctor]

Old Ads

If you haven't raised your prices in 10 years, I either envy you for getting so much back then or pity you for not adjusting for inflation. I know I wouldn't still be selling firewood at all if I were currently getting 2003 prices.

Take a look at this. Neither ad is mine, but they were running these about 10 years ago:

That's very close to the same price that I charge today and I saw several ads similar to these in December, 2012.

 

[Fred Wright]

From the sound of it the boys have found a niche market. Overpriced perhaps, but people are buying those rough bundles. I can't fault anyone for making money.

Speaking of boutique wood bundles, I saw a stack of 'em outside the local convenience store over winter. Like none I'd seen before, they were square bundles of what appeared to be 1x1 nailers, cut short, planed and smooth. Kindling, ya think?

 

[cantoo]

woodchuck, those are interesting numbers.

 

[GeeVee]

From the sound of it the boys have found a niche market. Overpriced perhaps, but people are buying those rough bundles. I can't fault anyone for making money.

Speaking of boutique wood bundles, I saw a stack of 'em outside the local convenience store over winter. Like none I'd seen before, they were square bundles of what appeared to be 1x1 nailers, cut short, planed and smooth. Kindling, ya think?

Mill cast offs.

 

[Wood Doctor]

Trashwood

Mill cast offs.

Precisely. That's junk that nobody wants, not even the sawmills. Makes good kindling. Some of it probably has nails in it, and they don't even want to throw it into the chipper.

I'm surprised they were able to find someone willing to bundle it.

 

[kodiak]

Organic?

I always thought that if I got into the bundled firewood business that I'd advertise it as ORGANIC. No doubt there are some that would pay more for this.

 

[D&B Mack]

My price for firewood sold in bundles and by the truckload has not changed in 10 years. I'm still in business.

I am assuming you have increased production (more efficient)? Cause I know your direct costs have gone up over that time. Or did you start with a very large profit margin and now have diminished that?

 

[SpiralAcacia]

Even if I had Lady Gaga helping me deliver good firewood, I doubt it wood make a difference in January when people are trying to stay warm and get through the winter.

My guess is Lady Gaga can't reverse a truck up to a firewood shed for the life of her, not to mention with a trailer behind, so there you go, don't bother.

SA

 

[Hddnis]

I might be wrong but I don't think Lady GAGa got rich with firewood being the kind of wood she produces.:msp_wink:



Mr. HE

 

[Wood Doctor]

I am assuming you have increased production (more efficient)? Cause I know your direct costs have gone up over that time. Or did you start with a very large profit margin and now have diminished that?

I started with no proft margin at all. Just a desire to get good exercise and enjoy fresh air.

 

[Hddnis]

I started with no proft margin at all. Just a desire to get good exercise and enjoy fresh air.

Worthy objectives, but hardly a standard business model and far from the reality of running a business. You have no basis to compare your selling firewood to these boys and the wood they are selling.




Mr. HE