How does being sold out leave money on the table?
Firewood in the round
- Thread starter jegushee1
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How does being sold out leave money on the table?
TreeTangler
ArboristSite Guru
Basically, customers who wish to buy your product but send their funds elsewhere.
lknchoppers
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Jrider, I know you do a tremendous amount of business in a short time and that is awesome, but we still have a long winter ahead. You probably could double your business if you still had product to sell all winter. This could be only the halfway point for some folks.
I get the spreading it out part but a guy can only produce so much cut and split wood. I honestly don't know if I could produce more wood in a given year. I was questioning this summer, if I really needed to be working as much as I was. I do know I could have sold triple what I had last year and this year probably won't be any different.
But if you produced all you could and sold out, you left nothing on the table. I wish I had the time to do more because I know I could easily move it but I'm maxed out.
Selling out of inventory while demand remains indicates a low price point and or low supply. Or "leaving money on the table".
Edit: But if you're doing all you can do you can't change the supply side. Maybe an increase in prices is in order to reduce the demand side a little?
Edit: But if you're doing all you can do you can't change the supply side. Maybe an increase in prices is in order to reduce the demand side a little?
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I get that as a true business model but as a side thing, I see it differently. I did raise my prices from last year because I really had a hard time keeping up with the demand. This year was more manageable and there were plenty of people who went with other options because I was too high for them. I really enjoy being sold out early and not having to deal with cold and digging piles out of the snow.
I don't blame you one bit. As they say: a bird in the hand is worth two in the bush.
Time value of money could also be considered here. You converted your firewood to cash that you can now do something with as opposed to it sitting in firewood form through the winter.
lknchoppers
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You did a very impressive quantity of wood for one man. If you set your goal and met it that's all you can hope for. Nice job.
I wish they'd do that type of selling around here. I'd be buying tons of it in rounds for a reduced price.
Too many sellers are advertising split and seasoned firewood that isn't any of those. But the cost stays the same as seasoned and split firewood.
It usually is split so large that you need to split it again anyways and almost always is never seasoned, or maybe only a few weeks or days cut.
I was doing some thinking about the whole selling in rounds ideal. I decided to call up a guy advertising firewood for sale just to see if he would sell me an unsplit load of wood. The answer was yes, but he wouldnt lower the price any. Jut one persons opinion and he is a small time operation, so I guess he needs to maximize the income on the volume of wood he sells, even if it does mean more labor for him.
