Where is the Fish Hook In Selling Bagged Firewood?

[wkpoor]

Talked to a retailer about selling bundled FW to them. They currently pay 2.50 for a 1/2cu.ft. bundle 6 small pieces. They sell these for about 5 bucks a bundle. Seems like this would be good money but I haven't been there done this yet.

 

[TreePointer]

All the $5-6 wood bundles (usually .75 cu. ft.) I've seen in my area are kiln dried.

 

[Coldfront]

You can get away with it if you live by a big campgrounds.

 

[Curlycherry1]

Talked to a retailer about selling bundled FW to them. They currently pay 2.50 for a 1/2cu.ft. bundle 6 small pieces. They sell these for about 5 bucks a bundle. Seems like this would be good money but I haven't been there done this yet.

I studied this business for a B-school class I took. So for you to get their business are you going to sell it to them for less than $2.50/bundle? Say you come in a $2.25. The original supplier wants the business back so he drops to $2. You counter with $1.75, etc......you see where this goes?

Slicing up a pie into smaller pieces makes everyone go hungry. What you need to do is find a new place or customer base to sell wood that does not already exist, or you need to find a way to sell quality wood for more than the average schmoe on the street is charging.

A good rule to live by in business is that you cannot win in a commodity business if you are not the absolute cheapest supplier. Someone that can produce it cheaper is going to come along and undercut you the first chance they can. If you cannot be the cheapest, then you need to add value to your product that nobody else can add and as such charge a higher price.

The hook in the bag firewood business is that Joe Schmoe with a pickup and an axe is going to take your business from you as soon as you get it.

I sold bulk quantities of firewood to people that heated with it and I let them have a payment plan. I delivered 10 face cords for between $300 and $450 and I let them pay me (if they wanted) in up to 6 payments spread out over as much as 6 months. Some paid all at once, but about 50% took the payment plan. I had all the business in the summer I could handle and I sold 30-50 face cords per week (in 10 cord loads only) in the summer. Much of the wood was cut in the winter, just not split. My angle was that they did not have to shell out a lot of $$$ all at once. This was back in the early 1980s so the price of the wood would be higher now.

 

[wkpoor]

I studied this business for a B-school class I took. So for you to get their business are you going to sell it to them for less than $2.50/bundle? Say you come in a $2.25. The original supplier wants the business back so he drops to $2. You counter with $1.75, etc......you see where this goes?

Slicing up a pie into smaller pieces makes everyone go hungry. What you need to do is find a new place or customer base to sell wood that does not already exist, or you need to find a way to sell quality wood for more than the average schmoe on the street is charging.

A good rule to live by in business is that you cannot win in a commodity business if you are not the absolute cheapest supplier. Someone that can produce it cheaper is going to come along and undercut you the first chance they can. If you cannot be the cheapest, then you need to add value to your product that nobody else can add and as such charge a higher price.

The hook in the bag firewood business is that Joe Schmoe with a pickup and an axe is going to take your business from you as soon as you get it.

I sold bulk quantities of firewood to people that heated with it and I let them have a payment plan. I delivered 10 face cords for between $300 and $450 and I let them pay me (if they wanted) in up to 6 payments spread out over as much as 6 months. Some paid all at once, but about 50% took the payment plan. I had all the business in the summer I could handle and I sold 30-50 face cords per week (in 10 cord loads only) in the summer. Much of the wood was cut in the winter, just not split. My angle was that they did not have to shell out a lot of $$$ all at once. This was back in the early 1980s so the price of the wood would be higher now.

Yep I offered to do em for 2.00. And I am that Joe Schmoe in a way. I might do a couple loads and decide its too much work also. I know many have been there done that before me so I thought it would be interesting to hear what others have to say.

 

[CRThomas]

Bag firewood

I do bagged firewood $5.00 delivered $3.00 you pickup. We stop and talk to our customers most are old and want some body to talk to. My grand son delivers 6 to 8 hours a day summer and winter. We don't advertise or have a place set up we do it out of our home. There is a good business in firewood. Most firewood venders want dump and go. My grandson even gets little jobs on the side from it. Later

 

[RandyMac]

Back in the'80s, I teamed up with a guy who sold firewood to all the condos and apartments near Lake Tahoe. He used heavy duty wheeled trashcans. I filled them for $10, he delivered and was paid $50 a piece. The buyers liked the service, no mess, clean, dry storage.

 

[STLfirewood]

Don't cut the guys price offer a .75 bundle for the same money. One average you will get 155 bundles from a cord of wood. How much wood can you cut in a year? I ask because I have found out that if you want to get a good price for your wood you need to have an account that Joe pick up can't handle. My biggest account is around 75-80 cords a year. Your normal guy workingn a 9-5 can't do that much wood and have it on hand every week through rain,sleet ,snow,and now 100 degree weather. The price of wood really goes up when you cut the very little guy out. I have turned down some bagged firewood this year. I just didn't have the supply and I am not set up for it yet. But it was going to be in the $2.50-$2.90 range for a .75 bundle. If I had the supply I would take it on. One call was for 2k bundles. I didn't want to say yea and not be able to do it.

Look for wood fired pizza kitchens in your area. They want to wood split small(2"x3" is max) It takes around 600 pieces to make a 4'x8' stack.The only good thing about wood split that small is it seasons really quick. A lot of the places don't know that they need the wood that small. The wood needs to be that small to control the heat. You control the heat in a brick over with the coal base. You control the coal base with the small size wood. Take them a sample of good seasoned wood that size and see if they want to switch. Restraunts are leary about switching suppliers if you are unproven. If you don't supply they can't cook. Take them pictures of your wood lot even let them come out and see your supply. They need to know that you aren't going to run out. The only good thing about wood split that small is it seasons really quick.

Try making some swedish candles and selling them. Make sure they are dry. I'm going to kiln dry some candles pretty soon and take them to a wine bar that buys wood from me. They think they can rent a patio spot this fall to people to drink their wine and eat cheese with a cool swedish candle burning. I'm hoping to be able to sell them for $10. We'll see what happens

 

[D&B Mack]

Talked to a retailer about selling bundled FW to them. They currently pay 2.50 for a 1/2cu.ft. bundle 6 small pieces. They sell these for about 5 bucks a bundle. Seems like this would be good money but I haven't been there done this yet.

If you are thinking about getting into selling bundles, I would say go for it. Here is what I have learned over the past year and a half.

1. You have to be a salesman, if you are starting small you will be competing against some big companies that supply bundled wood.

2. I didn't get a customer for the first two months or so. Went back to the drawing board with my sales techniques. Came up with the idea of offering the rack and first load of wood set-up and delivered for free, then the customer would pay me for the wood sold when I came to re-stock. Cash flow is a major issue for businesses right now, this worked and got me a half a dozen customers in the following two weeks. You just have to be able to front the initial shipment.

3. Find your target customers. For me it has been gas stations, single owner and no current supply. Campgrounds haven't panned out too well for me, some had suppliers they were happy with and others say they can't sell it because their campers won't pay $5.00 for something they can walk around the surrounding woods and pick up.

4. Don't be so concerned over what the competition sells for. I originally priced this way, $2.50 to $2.85 per bundle wholesale. But if you give your customer a price range to sell in, some will sell for more than $5.00. Like one station owner told me, "If a customer is here and they see the wood and think to themselves that it would be a good idea to have a fire that night. Are they really going to go somewhere else to save $0.50? Most likely not. Know your costs, and sell it for what you need plus a profit.

5. I only sell the interior wood from my rounds, no pieces with bark. This is just for marketing and the packages look cleaner without bark and they tend to stay cleaner as well. I still haven't figured out a fast and efficient way for me to strip bark. I sell the "waste" wood as bulk firewood.

6. I sell wholesale only. Here in the state of PA, bundled firewood is not sales tax exempt like bulk firewood. If you sell retail, you may have to collect sales tax pending upon your state.

7. I do this as a second source of income. But I set up a company for it for tax reasons mostly, but also, the PA Dept. of Agriculture Division of Weights and Measures requires it officially. And if you are going to sell to gas stations, your bundles will be checked since they are coming by the stations anyway.

8. Make sure you have a consistent supply of wood. This is my problem right now. Noone around here has any bulk logs at a reasonable price, and now I am starting to run low.

9. My best selling month so far has been May, so don't assume Winter will be the best. Most of my sales are people having campfires or in their fire pit. My best sales territory isn't near campgrounds our state parks, but near upper middle class neighborhoods.

10. What I like most about selling this way, once you get some customers it is all repeatition and I like constant. Same customers, same delivery location. Don't have to drive through developments with a dump trailer in tow trying to find an address. I also make all my deliverys with just the pickup truck now. Once you get the sales trends down (and trust me I am still learning) you can figure out when to over-stock certain locations so you don't have to make so many trips.

Good luck, hope some of my experiences can help you.

 

[woodman6666]

Yep I offered to do em for 2.00. And I am that Joe Schmoe in a way. I might do a couple loads and decide its too much work also. I know many have been there done that before me so I thought it would be interesting to hear what others have to say.

At $2 a piece I think you will grow tired of it quickly. Find a niche and raise your price at least a dollar.

 

[woodman44]

We have sold bundles for a few years now and do ok but it is alot of work. You may try adding a fire starter in your bundle to get more people. One thing we do for campgrounds is offer free adv. on some of our web sites and refer people to them locally.

 

[Wood Doctor]

Here are My Secrets

Beating the super markets and gas stations is going to be the toughest problem. They have the one-stop convenience and locational advantage. People will often pay that extra amount to avoid a second stop for firewood alone.

I teamed up with a bar/restaurant owner near a state park and that seems to work. He sells beer, sandwiches, and other beverages to people who often buy refreshments in addtion to the firewood when camping. I offer the bundles at $4 apiece and throw in quantity discounts. The super markets can't match that. I also sell larger bundles of seasoned firewood (8 to 10 logs per bundle). Half the time the bundles at other places are green, hardly burn, and only have six logs.

End result is a growing business. Last year I sold 150 bundles, and I've already sold that many this year. I usually mix elm with cottonwood, maple, and sycamore. These work very well for campfires. If you sell denser woods, it is going to be tough for many of your customers (elderly and ladies) to carry them. Keep that in mind.

I use heavy baling twine and supply a handle made with 5" of old garden hose that I cut up. My complaints do not exist. I find it fun and great exercise.

 

[woodman44]

wood doc is correct location is very important. Our place is next to a major resort and we sometimes sell more than 15o bundles in one day.

 

[TMFARM 2009]

Where is the Fish Hook In Selling Bagged Firewood?

just like a lot of people on here i sell wood to old bags too!!!!:hmm3grin2orange::hmm3grin2orange:

 

[Wood Doctor]

Commercial Bundler?

Wood doc is correct location is very important. Our place is next to a major resort and we sometimes sell more than 150 bundles in one day.

I guess I need to move to your location. 150 bundles x 8 logs/bundle = 1200 logs per day. That's at least 3 split cords, and at $300 per split cord, that's $900 per day.

I doubt that many firewood sellers are pulling in that much bread, but I suppose it is possible. Can you show us a Pic of whatever you use to bundle that much up? Last I heard, a commercial firewood bundler was worth at least a couple grand.

 

[woodman44]

here is the one we use I think it was around 850 plus ship


Johns Welding Shop LLC | Firewood Bundlers

We sell our bundles for 3.5 retail and 2.5 whosale. We normally do about 150-300 bundles per week but on bridge Day at the New River Gorge we do over 150 that day. I am considering getting out of it because I am not sure there is a future in it and there will be little on no equity in the business. We are moving more into fire starters which I think may have a future.

I guess I need to move to your location. 150 bundles x 8 logs/bundle = 1200 logs per day. That's at least 3 split cords, and at $300 per split cord, that's $900 per day.

I doubt that many firewood sellers are pulling in that much bread, but I suppose it is possible. Can you show us a Pic of whatever you use to bundle that much up? Last I heard, a commercial firewood bundler was worth at least a couple grand.

 

[oppermancjo]

Hi guys,

I just started doing bundled wood in Central Michigan this year and it's turned out pretty decent I must say. I've been cutting off of our property as all of the Ash are dying from the EAB. Contacted a couple of campgrounds this spring and one of them bit. The guy he had been using previously didn't tie his bundles very tight so they just fell apart and apparently he wasn't too reliable. The campground wanted softwood but all I really had was hardwood. I plan to work on a bunch of soft wood to prep for next year so that way I'm not giving him the higher value hardwood.

I sell it to him for $2.50 a bundle and he takes about 100 bundles every week to 2 weeks. My bundles are substantially larger than your run of the mill gas station variety. Am I leaving money on the table? Perhaps, but I figure as a first time supplier I can consider this a piece of base business. I run a Marriott hotel as my day job and we frequently do that. You book a few groups at a lower rate and then for the rest you can raise your rates higher as demand will then be higher as well.

I wrap my bundles in stretch wrap and then staple a handle to the top piece. The campground has been seemingly happy with them. I usually deal with the owner but was chatting with an employee one day and he said all of the campers have been happy with them. I feel the larger bundle offers a substantial value to the product. When you really think about it, all I have invested into this is my time. On a per-bundle cost, the gas & oil for the saw, stretch wrap, and handle are quite nominal costs. To make my bundles a little larger and have happy customers is worth it. If this was my full time job however, that would be a different story.

I liked the comment earlier about only using the inside pieces for bundles as the look cleaner. I just may start doing that.

All in all, I'd say that if you have the demand in your area, go for it. Contact campgrounds, gas stations, grocers, or even just find someone that will let you put some in their yard with a cash box near a campground. I usually sell face cords in the winter but demand for entire FCs in the summer is pretty low. You may have to accept a lower profit margin with the bundles but you're still making a profit and creating cash flow.

 

[blackdogon57]

Don't cut the guys price offer a .75 bundle for the same money. One average you will get 155 bundles from a cord of wood. How much wood can you cut in a year? I ask because I have found out that if you want to get a good price for your wood you need to have an account that Joe pick up can't handle. My biggest account is around 75-80 cords a year. Your normal guy workingn a 9-5 can't do that much wood and have it on hand every week through rain,sleet ,snow,and now 100 degree weather. The price of wood really goes up when you cut the very little guy out. I have turned down some bagged firewood this year. I just didn't have the supply and I am not set up for it yet. But it was going to be in the $2.50-$2.90 range for a .75 bundle. If I had the supply I would take it on. One call was for 2k bundles. I didn't want to say yea and not be able to do it.

Look for wood fired pizza kitchens in your area. They want to wood split small(2"x3" is max) It takes around 600 pieces to make a 4'x8' stack.The only good thing about wood split that small is it seasons really quick. A lot of the places don't know that they need the wood that small. The wood needs to be that small to control the heat. You control the heat in a brick over with the coal base. You control the coal base with the small size wood. Take them a sample of good seasoned wood that size and see if they want to switch. Restraunts are leary about switching suppliers if you are unproven. If you don't supply they can't cook. Take them pictures of your wood lot even let them come out and see your supply. They need to know that you aren't going to run out. The only good thing about wood split that small is it seasons really quick.

Try making some swedish candles and selling them. Make sure they are dry. I'm going to kiln dry some candles pretty soon and take them to a wine bar that buys wood from me. They think they can rent a patio spot this fall to people to drink their wine and eat cheese with a cool swedish candle burning. I'm hoping to be able to sell them for $10. We'll see what happens

Excellent post. Commercial customers want reliable quality and service and will pay top dollar to get it. Stay away from commercial accounts that are fixated on price.

 

[Patrick62]

easy money?

Second year here doing bundles.
My sizing system is based on what a 5 gallon bucket can hold together. Wrap the ends tight with stretch wrap. Works out to right at .8 cubic ft, and I wholesale them to two locations at $3.00 each. No handle is needed, just dry tightly wrapped wood split a little small.
I would not get into a "bundle war". Provide a quality product at a reasonable price. Previous supplier to one of my locations tried to underbid me and get the location back. Didn't work. Jeff told him that "We like our supplier"...

 

[woodman44]

How would you guys deal with this?

I live between a 4lane and a resort and have sold bundles for a few years on a stand in my lawn. The last 2 weekend a guy has set up in a truck by the 4lane at the turn and it is costing me. One simple way to deal with it I think is to park a truck there and put a sign in it at half his price and leave one of my kids there to collect money until the guy sees he is going to have to leave. (I have better things to do than sit along the road all day myself I thought this guy would to but it seems he has no life as he is there all day.) I would give the kid all the money for sitting there until the guy is gone. Any other ideas?