Price differences on wood

[sb47]

I’m trying to understand something and would like some logical explanations.

I see a lot of post about wood pricing and I see a big difference in prices depending on species.

What I don’t understand is why.

A cord of wood (any wood) all cost the same to work up and produce.

So why is the price different?

I understand not all wood is the same as far as heat and burn time but why would someone work up a cord of (lets say pine) and sell it for 75 dollars a cord but will charge 150 for oak?

I don’t mess with anything but oak just because oak sells faster and makes the most money.

I understand oak is not available in all areas but the practice doesn’t seem to make since.


I suspect some of the cost issue is do to split sizes. Most of the wood I see is split in fairly large splits, witch would cut down on processing cost and time.


Can someone give me a logical explanation why the big difference?

 

[robespierre]

It's good to have a mix of softwood and hardwood to get a fire started as oak is a pain to get started even when completely dry however due to the density of Oak for example you don't have to go get a piece of wood from the pile every 10 minutes. Also fires coal better with oak and don't send out sparks onto the carpet or floors like pines do with their pitch.

 

[jdhacker]

Well dry pine will burn up as fast as you put it in the stove. I sell firewood hickory,oak for the most part. some times ash but always hardwood. I charge the same for wood. But I do have a few people I split hickory down to smaller size, and they use it for smoking meat. I get more for that wood.

 

[blackdogon57]

Around here is virtually no market for softwood firewood. Hardwood is a different story. Whether it is mixed hardwood or all one species of hardwood the price is about the same. Even hardwoods like white birch can fetch full price.

 

[Whitespider]

Economics One-Oh-One... Supply & Demand.

Four basic rules to the principle of Supply & Demand in a free market... and none of them have anything to do with the cost or amount of work to produce.

1. Supply remains unchanged and demand increases... the price increases.
2. Supply remains unchanged and demand decreases... the price decreases.
3. Supply increases and demand remains unchanged... the price decreases.
4. Supply decreases and demand remains unchanged... the price increases.

There is, always has been, and always will be a higher demand for dense hardwoods like oak... therefore the price is, always has been, and always will be higher for it.
Oak takes longer to season, and longer to grow, meaning the supply is somewhat limited when compared to other species... therefore the price is, always has been, and always will be higher for it.

Why is gold more expensive than nearly any other metal?? Supply & Demand my friend, Supply & Demand.

 

[rspeters]

+1 It's a simple concept really. Not much to it.

 

[sb47]

Economics One-Oh-One... Supply & Demand.

Four basic rules to the principle of Supply & Demand in a free market... and none of them have anything to do with the cost or amount of work to produce.

1. Supply remains unchanged and demand increases... the price increases.
2. Supply remains unchanged and demand decreases... the price decreases.
3. Supply increases and demand remains unchanged... the price decreases.
4. Supply decreases and demand remains unchanged... the price increases.

There is, always has been, and always will be a higher demand for dense hardwoods like oak... therefore the price is, always has been, and always will be higher for it.
Oak takes longer to season, and longer to grow, meaning the supply is somewhat limited when compared to other species... therefore the price is, always has been, and always will be higher for it.

Why is gold more expensive than nearly any other metal?? Supply & Demand my friend, Supply & Demand.

 

[sb47]

Your logic seems flawed just like your logic about bartering is from another thread.

So you’re saying that supply and demand dictates price. If that were true then my marketing approach would keep me from selling wood.

I sell firewood and cooking wood and I am priced 20% higher then anyone else in my area. My price never changes, it’s the same year round and year after year and I always sell out.

If your example were true then my yard should still be full of wood.

I find it to be quite the opposite. I stock pilled 150 cords of oak firewood this year (50 more then last year) and I have 6 cords left in stock to sell, and it hasn’t even gotten cold yet.


Everyone else in my area is selling cords for as low as 130 per cord. My cords are 220 per cord. Yet I still sell out.


So again like in the other thread where you desperately try to defend the new car sales compared to wood sales is not accurate.

Your saying I should set my prices in accordance to the local market and constantly change pricing do to supply and demand.

Then I should barter with customers to make sales.

If that were true, I should be out of business by now.

My sales receipts say otherwise.

 

[kodiak]

Your results as compared to your competition may be due to other factors besides your price. Perhaps you offer better service and a better product?

 

[sb47]

Your results as compared to your competition may be due to other factors besides your price. Perhaps you offer better service and a better product?

Bingo! We have a winner!

 

[autoimage]

you proved spiders point the demand for your product is high it sells out fast hence the high price

 

[svk]

Availability of species is a big thing.

Up here aspen is everywhere. Red maple, black ash, and white birch are the primary high grade firewood species which most of you would consider mid-grade at best. You've got to drive two hours south to get into oak and even there it's red oak.

If I could get red oak or better up here without paying top $$ I would definitely consider selling wood as a hobby. But the work necessary to sell seasoned aspen at 70 bucks a cord doesn't make it worthwhile.

 

[philoshop]

Oak vs pine (or cottonwood, willow, poplar, etc) is simple. A cord of oak weighs X. A cord of the others will weigh about 1/2 of that. It's about cost per BTU (read cost per pound). As long as you're talking about seasoned wood and not water-weight, it's about how much weight of wood you get for the $. Your cost for processing, delivery, etc doesn't really matter to someone trying to heat their house.

 

[flotek]

Same reason a dually 3500hd sells for a lot more than a 1500 work truck .. It's a lot better and given the choice most everyone would rather have it

 

[Whitespider]

So you’re saying that supply and demand dictates price.

I din't say that... I said nothing of the sort. I never said anything about dictating prices.
The question was why the difference in species prices when the amount labor and expense to produce it is the same.
Just a bit touchy, are we??

Are you seriously gonna' try and tell me the the law of Supply & Demand is just bogus crap invented by evil capitalists to justify ripping-off customers??

So again like in the other thread where you desperately try to defend the new car sales compared to wood sales is not accurate.

Desperately?? Really??
Who was it scouring the internet for 6-year-old links and international financial statements in an attempt to prove me wrong??
And when in-the-hell did I compare new car sales to firewood sales...
The only thing I did was defend the entirely ethical practice of the "haggle"... as you were the one making the unfounded claim that a haggler and/or car dealer is the same as a crook and shyster.

Climb down off it man...

 

[NSMaple1]

I’m trying to understand something and would like some logical explanations.

I see a lot of post about wood pricing and I see a big difference in prices depending on species.

What I don’t understand is why.

A cord of wood (any wood) all cost the same to work up and produce.

So why is the price different?

I understand not all wood is the same as far as heat and burn time but why would someone work up a cord of (lets say pine) and sell it for 75 dollars a cord but will charge 150 for oak?

I don’t mess with anything but oak just because oak sells faster and makes the most money.

I understand oak is not available in all areas but the practice doesn’t seem to make since.


I suspect some of the cost issue is do to split sizes. Most of the wood I see is split in fairly large splits, witch would cut down on processing cost and time.


Can someone give me a logical explanation why the big difference?

So have you tried selling pine for the same $$/cord as oak?

 

[Whitespider]

you proved spiders point the demand for your product is high it sells out fast hence the high price

L-O-L !!
Yeah... I know he proved my point... but I can pretty much guaranty he won't see it that way.
He believes it's solely because he has a superior product and nothing more...
He is unable to see that superior product has created a demand much higher than the supply (he runs out every year), which allows him to price higher than the competition... a classic, text book example of Supply & Demand.
He's a capitalist and don't even know it... L-O-L!

 

[Kfd518]

Heh heh compare the wood to a chainsaw… there are low quality saws midline saws and high quality saws.
The low quality one wont last long at all and you end up buying another to replace it. You throw soft wood in the fire it doesn't last long you have to get up quicker to replace it. And will burn much more of it.
Midline saw will last much longer and provably get you through. Same with average quality/species firewood.
High quality is going to cut as long as you maintain it it's made to better standards better alloys more time and money put into it better machining…
High quality hardwood seasoned well is going to give you more bang for your buck. More btus per volume of wood and going to last you longer per burn than low quality wood…


Regular unleaded, mid grade, premium!

 

[sb47]

I din't say that... I said nothing of the sort. I never said anything about dictating prices.
The question was why the difference in species prices when the amount labor and expense to produce it is the same.
Just a bit touchy, are we??

Are you seriously gonna' try and tell me the the law of Supply & Demand is just bogus crap invented by evil capitalists to justify ripping-off customers??


Desperately?? Really??
Who was it scouring the internet for 6-year-old links and international financial statements in an attempt to prove me wrong??
And when in-the-hell did I compare new car sales to firewood sales...
The only thing I did was defend the entirely ethical practice of the "haggle"... as you were the one making the unfounded claim that a haggler and/or car dealer is the same as a crook and shyster.

Climb down off it man...

First off the thread was less then a week old so I don’t know where you got the ides I dug it up form the archives.

Secondly I never brought in any financial statements to prove anything. (You must have me confused with someone else)

http://www.arboristsite.com/community/threads/big-houses-shallow-pockets.246421/page-4#post-4567838


Next I never said the buyer was a crook, only the seller. You never seemed to grasp that concept in that discussion.


And last, there’s nothing ethical about jacking up a price on “anything” then leaving it up to someone’s bargaining power to get the best deal. By your definition, you’ll gladly overcharge a customer if they don’t ask for a discount.

 

[sb47]

By the way 2 more cords just left the yard in the past hour.lol

Down to 4 cords now.