firewood buisness

[dinomay]

this has been posted SEVERAL times on the site, i am more of a reader than an active poster. for the last ten years i have always sold a few loads of wood for a little extra fun money, well this year was different. since May, i have cut split and sold 43 cords of would and i think buy the end of November i will have 50. Doing the math, i have made an extra $1,000 dollars per month for the last 6 months after all my costs (fuel, new saw, new front end for the truck.) I have done this working 1-2 days a week outside of my regular job, the money has been EASY. I practicaly have a part-time firewood buisness already, but i want some feedback on what i would need to transition into a full blown small buisness. there are a few reasons why i think a legit buisness would do well...

1) i am in Eastern Oregon, comercial wood tickets are $10 per cord and you can buy as many as you want to cut on forest service land.

2) a local logging outfit can sell me dry logs (Tamarack, red/white fir, spruce, and pine) for $900 per load, 10-11ish cords per load.

3) and i have acsess to the land to process large quantities of logs once they are delivered.

4) there is only one outfit in the area where i am that does large-scale firewood. I know the market for it is good, i got all my orders from a one month ad in the classifides for $24. The last month or so, i have been turning down orders for more wood.

so there you have it, there are all the reasons why i want to start a legit buisness, it really does seem like it is too good to be true. what are your opinions, am i better off doing what i am doing with my truck, saw and maul? what are some key pieces of equipment to invest in? i would liek to here from some guys that are in the firewood buisness, what are the biggest draw-backs and expences?

i have thought of all the positives... having a hard time with the negatives, lay em' on me!

fyi, i sell my wood delivered and split for $190, and in the round for $170 with a delivery fee if needed.

 

[jrider]

So you are only charging $20 to split a cord of wood? This doesn't make any sense to me and just off that alone, I would advise you to not try going into business.

 

[tomtrees58]

i sell 150 cords a year at 200 a cord thats 30.000 a year then their small sales 8.000 then there's my pizza restaurants 4,500 a year each there 2 i sell to this is just a side biz o yea its all cash remember i am a full time arborist

 

[dinomay]

its only $20 more because it only takes me an hour longer for a cord and its not that tough... i wish i made $20 per hour at my real job!... not sure what tomtrees58 is trying to tell me.

 

[tomtrees58]

there is money cutting fire wood you just have the right eq

 

[HappyTreesLLC]

with all DO respect.
As you described with this business plan you better work for McDonald.
Here is "run business rule" : you need to make minimum $300 profit (not gross) per day 5 days a week 45 weeks per year. If you not making this go work for some one and NOT spoil market with low ridicules prices.

 

[CRThomas]

That net profit depends on your area. I make $250.00 a day with bundled fire wood that comes to gross $80.000.00 a year. That is only for my wholes sale wood I have bundles that go for $5.00 to $10.00 a bundle. When a business fails it is the management.

 

[CRThomas]

When going in the firewood business you got the need a case of beer or a carton of cig. Firewood sellers. They under cut you but the customer most likely gets wet and not a rank is what is sold in.my area if your wood is dry the right amount and you are reliable. You have to be a seller year round I sell as much in the summer time as the winter. There was a fellow about 10 miles from me was the biggest sell in 50 miles his attitude put him out of business. He said it's my way or the highway he is broke and mad all the time.

 

[CRThomas]

You have to take care off your customers so many firewood sells look like bums my customers tell me about the last guy that delivered firewood still had egg in his beard. He smelled like he hadn't took a bath in months.

 

[bigremovals]

You need to raise the prices don't be working for free haha .....get a dump bed so much easier than jumping in the back every wheel barrow load.

 

[CRThomas]

If you work in a area were the pay is 10.00 and hour if your area pay is 20.00 and hour. Thats the way you should set up your mini pay pay then you ad your equipment cost

 

[CRThomas]

My wife and I have bundled firewood business I do the work and she does the paper work. We have about $300.000.00 worth of equipment. I have extra equipment do to my age.

 

[Pud]

just keep cutting the stuff and get boat loads ready for next season figure out what u could potentially make and go from there i would say , i try talk myself into going full scale all the time but always chicken out . Some years it has been all ive done and made really big dollars but i just end up getting sick of it . The best thing for me was finding a job that i can just work part time in winter and spend 3 or so days cutting firewood that what its really just a hobby for me that happens to pay really well and can be tax free also.
The only negative thing i can think of i dunno how consistent your winters are but where i am a warmer than average and drier winter WILL easily half my income from it if i didnt have a lot of regulars ive looked after for a long time i almost have to give it away

 

[ChoppyChoppy]

I went full scale last year and it was really really tight for a while. I put about 150k into equipment, labor, fuel etc.

I merged with another guy this year, we have 2 log trucks, 2 skidders, feller buncher, delimber, 2 dozers, an excavator, 6 or 7 delivery trucks, 2 processors, a sawmill, etc, etc.

I do about 15-20 cords a week in firewood, and that's not pushing too hard. Around 1200ish a year between the two of us.

To go from "hobby" to real job, from woods to firewood, expect to fork out 200-300k minimum. Some of the timber sales we have were 20k minimum bid.

Plan in having at Least 1-2 guys working for you too. A counter person too to answer phones and handle paperwork.

 

[StihlRockin']

Keep in mind, if you value your time, this is an old post brought back up and the OP hasn't replied. With that said, I'd throw in my .02 cents too, but he's not here and "hasn't been seen" since last year.(2013, being logged in)

And I know of course other's benefit from the replies regardless if the OP isn't here, but he started the thread.

StihlRockin'

 

[Pud]

Dont u hate it when that happens

 

[CRThomas]

I have to split and cut year round doing firewood right is a year round business. I'm in the woods everyorning splitting and stacking in a

 

[lknchoppers]

I would like to see an update from the OP. Wonder how he did?