Selling wood for profit

[IchWarriorMkII]

I have done some searching on this subject, I will probably be doing more searching as I come up with different keywords to try, so if this is a hashed out subject, I apologize.

A friend and I have kicked the idea around of selling firewood during the summer months as a way to make a little bit of fun money on the side. This would be a pretty simple operation, basically cutting more wood than we would need for ourselves, and selling the rest. We also have a pair of massive cotton wood trees that are about to go, and we could probably sell that to get us started.

Is this a mildly profitable business, as long as one accepts the large amount of physical labor is involved? Im attempting to draw out a basic plan here, figuring in the cost of fuel, saw maintenence, but Im curious as to how one figures the price of the wood?

I would imagine the less desirable wood would go for $100 (Cottonwood) a cord, and $150 for Aspen, Fir, Pine and maybe $200 for Juniper. Im not sure if there is an 'industry standard' but is there a website/link/brochure that would help me start pricing out the wood? I figure my next option would be to call people already selling firewood and see what they charge for wood.

I'd like to hear some opinons on the idea and subject, as its still a pretty rough cut plan... I might just say to hell with it

 

[Fogwarning]

Business Plan

Ahhhh.... You are developing your business plan. Very smart move. Before attempting to start a business, too many people fail to find out what the available market share is, what expenses they might occur and how much time is required to be profitable. Then they wonder why they fail.

Personally for me, making a living cutting wood is too much like work. Interestingly, cutting and spitting wood for my own use is therapy. I do have a friend who does very well at it. He states that too many people don't want to do it and he makes good money keeping them in wood.

You are doing well asking people on this site their opinions. There are many knowelgable folks that can provide insight with their real life experiences.

Good luck in whatever path you choose.

Bill

 

[drmiller100]

i've only cut wood for profit for one year, so take my advice with a grain of salt or 3.

your price is dictated by what folks around you sell for, and your marketing skills, and your sales skills.

You will be paying your customers to sell wood at 100 bucks a cord though.

I put an add in the paper. "Mixed Firewood, 150 a cord." People would call. They would ask "is that delivered?"

I would respond - the 150 price is in the rounds, you come get it. for 195 a cord, it is split and delivered.

I sold 2 cords of wood in the rounds, and 28 split and delivered. We no longer stack for less then 100 bucks a cord, which means we don't stack it.

With a gas splitter it took 1 man hour to buck a cord, and 2 man hours to split a cord. I figure I am HAPPY with figuring labor costs me 25 an hour. and I was paying 50 a cord for the wood.

so, my math says it cost me 125 a cord to produce the wood (with some profit already in it, but not much.)

I would be interested to hear from folks how they can get logs for less tehn 50 bucks a cord, and happy to learn if people have different numbers then mine.

 

[Spotted Owl]

We are going to be doing this very thing come spring and summer. We don't have a hard plan persay but we have done our home work. We contacted the small local papers and websearched the larger papers. We found historical prices of wood by species&mixes, seasoned or not, amounts for sale and delivery. We have a very good idea what getting wood ourselves will cost, we are still working on what log length truck loads dropped here will cost. We have a delivery fee for radius's of 0-50 miles and 50-100 miles over 100 will have to be worked out at the time with volitile fuel prices. Stacking on delivery site will also be an extra fee. We figure that we will still come in about 50-75 bucks per cord lower than most others if we get the wood ourselves.

One thing I have held hard on so far is that we don't bend on pricing. Single parents, little ole ladies, single guys and families all get the same price. We have seen others fall when their prices started wavering for some situations and not others.

Sell good dry wood for reasonable cost and word of mouth will spread your business. Be honest and up front all the way through the deal and word of mouth will spread your business.

Just our thoughts and ideas

Owl

 

[IchWarriorMkII]

Are you figuring in your man hour costs?



Current factors Im figuring:

Saw maintenence per trip

Vehicle gas per trip

Permits/other expenses


I count myself as a free.


Our final prouduct would be piled, seasoned and split enough to make the pieces managable.

Thanks for the advice

Thanks for the help

 

[feller]

Forget the softwood

I have done some searching on this subject, I will probably be doing more searching as I come up with different keywords to try, so if this is a hashed out subject, I apologize.

A friend and I have kicked the idea around of selling firewood during the summer months as a way to make a little bit of fun money on the side. This would be a pretty simple operation, basically cutting more wood than we would need for ourselves, and selling the rest. We also have a pair of massive cotton wood trees that are about to go, and we could probably sell that to get us started.

Is this a mildly profitable business, as long as one accepts the large amount of physical labor is involved? Im attempting to draw out a basic plan here, figuring in the cost of fuel, saw maintenence, but Im curious as to how one figures the price of the wood?

I would imagine the less desirable wood would go for $100 (Cottonwood) a cord, and $150 for Aspen, Fir, Pine and maybe $200 for Juniper. Im not sure if there is an 'industry standard' but is there a website/link/brochure that would help me start pricing out the wood? I figure my next option would be to call people already selling firewood and see what they charge for wood.

I'd like to hear some opinons on the idea and subject, as its still a pretty rough cut plan... I might just say to hell with it

First of all, softwood actually costs as much to cut, truck home, and process as the price you get for it. Therefore your equipment goes to hell, then you bail out. The industry standard for hardwood is, "All pieces of wood will be EXACTLY 16'' length, or they will not pile (or measure) into exact cords. Wood that is not processed by proffessional equipment is hard to sell for the going rate of $250 per cord Canadian (cut, split and delivered) Wood that is not all exactly uniform in length and size is also hard to pile and build nice fires with. This is extremely important to those of us who burn it as a sole source of heat. Your awkward, manually processed cord of hardwood may be worth as much as $200 per cord, cut, split and delivered. (canadian) Selling firewood can definately be compared to an apple orchard. A bushel of apples sells for about $10 or $12. The average picker can only pick a couple of bushels an hour (give or take) Meanwhile, the owner pays them $8 per hour (and think of this farmer's costs !!!) Firewood is exactly the same thing. It only pays off if it is done in MAJOR QUANTITY. Ive been in the tree business for 15 years, so obviously, ive had more than a few oportunities to sell more than a few cords. My business partner used to have 80-100 cords processed per year and didnt make too much profit from it. So- invest some money ($50,000 anyway) or save your back. Even if you do invest, you'll still screw your back, and not to mention your truck(s). :bang:

 

[feller]

Firewood for profit

We are going to be doing this very thing come spring and summer. We don't have a hard plan persay but we have done our home work. We contacted the small local papers and websearched the larger papers. We found historical prices of wood by species&mixes, seasoned or not, amounts for sale and delivery. We have a very good idea what getting wood ourselves will cost, we are still working on what log length truck loads dropped here will cost. We have a delivery fee for radius's of 0-50 miles and 50-100 miles over 100 will have to be worked out at the time with volitile fuel prices. Stacking on delivery site will also be an extra fee. We figure that we will still come in about 50-75 bucks per cord lower than most others if we get the wood ourselves.

One thing I have held hard on so far is that we don't bend on pricing. Single parents, little ole ladies, single guys and families all get the same price. We have seen others fall when their prices started wavering for some situations and not others.

Sell good dry wood for reasonable cost and word of mouth will spread your business. Be honest and up front all the way through the deal and word of mouth will spread your business.

Just our thoughts and ideas

Owl

Interesting thoughts to read. Some good advice, too. Especially the kids thing. But I still think that there is no long term profit in firewood unless it is done in HUGE QUANTITY with a very significant investment. It has supplemented my pogey for years during layoff (before I became self employed four years ago) Looking back at all of my costs, I really made no money at it on a small scale. (10 cords per winter, only to supplement my work on the side and my pogey)

 

[drmiller100]

we cut and split 30 cords in december. Sold it all December/january.

total net, I probably broke even if I ignore wear and tear on the skid steer, trailers, and trucks.

next year goal is 200 cords cut and split in December by 2 guys.

If I can do that, I will make decent money.

we load trailer with a skidsteer, and empty with hydrualic hoist.

I figure every time I touch a piece of wood I am losing money.

 

[Patrick62]

Atleast we are in the same state!

I have sold a little wood. I work with a bunch that has sold many, many cords.

Things I have learned, so far.
You would be wasting your time with the cottonwood, in my opinion.
Pine, aspen, juniper, etc all pay the same.

I don't know where you are exactly, but here we get $145 cd. Split, delivered, but not scacked. We avoid stacking. We will not short anybody on the volume.

A dump truck helps bunches. Go cut a few cords in blocks and time yourself, and keep some kind of idea on oil, gas, chain, truck, gatorade, etc. Then figure what it takes to split it, and re-load it to deliver it. You can make a little $$

Oh, and everything works just great until the engine in the truck explodes.

-Pat

 

[livewire]

IchWarriorMkII

I've been thinking about getting a little more involved with selling myself.

However, I think I will get more tangible profits by selling pre bundled wood to stores, etc and even at our lake cabin in the summer.

I've asked a couple guys here what their experiences were going this route and I got some good feedback.

I have a small army (3) of child laborers to help with the bundles too!

Think about this aproach and crunch some #'s I think you'll be a little surprised.

 

[drmiller100]

yes.

the smaller the unit, the more you make.

 

[Greenthorn]

Beer money...only profit here.

Selling firewood for a living...hmmm..., nah better keep my day job.

Around these here parts, cord goes for around 100-150, pickup truck load 50-75 depends on who the seller is. IMO I don't see how it could be profitable.


Site may be helpful?

http://www.talewins.com/homepreneurs/firewood.htm

 

[stumpguy]

there are a lot better ways to make money than selling firewood.

 

[GLM]

I sold a few cords two seasons ago because I was getting more thatn I oculd use, in my case i was picking the stuff form a tree company from there truck moving it to my house, minimal cutting some of the longer pieces and splitting it. My buddy and I made real good money selling the extra because a seasoned cord here goes for $310 delivered, we were selling green wood for $120 delivered locally and could had no problem selling 12 cords on one saturday day by word of mouth alone, people loved the low price for next years wood and we got some cash and all or our wood for the next year to boot. This was a good scenario because the wood was free ,minimal bucking most of it was already cut to lenght and my four way splitter is really productive, I have split a cord in 45 minutes with nice size logs that needed to be fed through once. If you are already neck deep in wood splitters saws and trucks by all means sell some off a little cash is never a problem. If I had more room I would let my stuff season and sell it for full price but space is limited as it is and I already have 14-16 cords of my stuff all over the yard as it is. If I had to buy log length or harvest it myself the amount I made per hour would drop big time and probably not make it worth while. We had a good situation and made the best of it. It was very worth while in our case. Good luck

 

[firebuckeye]

So if there is no money in selling firewood, why do most of us gather are own? Seems it wouldnt be worth are time. Just curious.

 

[livewire]

So if there is no money in selling firewood, why do most of us gather are own? Seems it wouldnt be worth are time. Just curious.

There is money in it. Otherwise people would never do it. 'How much $ does it take to make it worthwhile?' is a better question when you factor in time, fuel, maintaining equipment, and so on.

For myself, I don't have time or space for a full scale OP. So I've been leaning toward selling bundles to campers and convenient stores, NOT enough to quit my day job but definately enought to help fund some new toys!!!

Just ramblings here.

 

[grandpatractor]

So if there is no money in selling firewood, why do most of us gather are own? Seems it wouldnt be worth are time. Just curious.

It is so we can justify our addiction to chainsaws, silly boy!:hmm3grin2orange: :crazy1: :greenchainsaw:

 

[Firewood Guy USA]

there are a lot better ways to make money than selling firewood.

Oh Really ! Name a few "better ways" ?

 

[barkies]

I sell firewood part time I cut oak and hickory and usually throw some other off-species in for filler when I can. I sell it green and delivered within 10 miles for 35.00 thats three racks on a toyota truck

 

[IchWarriorMkII]

Some good discussion in this thread...


I'm really looking only to make a little bit of play money with the equipment I have. Making a living, definately not. Making my time in the woods playing with my saws a little more worth it? Thats about all Im hoping to get out of it.

If I made $1,000 I would feel plenty successful. Thats net of course. Really enough money to buy another saw (probably not, but my friend might) or put some money down on my OWB.