Hey guys, so I had a really short firewood season this year. I only managed to get my hands on 3 cord of paper birch during the summer. That sums up my season. A pitiful one at that, and I'm hurting from it. It definitely set me back. Around here its been really hard to find that dead wood that is legally takeable.
Other then that, it would have to be from log truck deliveries. So thats the route I'm going.
I managed to get "in" with the fellas who are running a logging company. They are the nice ones to let me take some of their firewood. At the time, I was going to burn the birch myself. So really, if I had burned it, I would not of had any season this year. Due to me being layed off (AGAIN!) I sold the wood.
Any boy, the man who bought it drove 4 hours one way just to buy it! :biggrin:
Anyways, these men who are running the log op are selling the birch for firewood because around here mills dont want it. So, they get to sell it as firewood instead. They have plenty of it to keep me busy!
They estimate 8-10 cords on a load and they sell it to me for $500 a load. Plus driver to deliver and unload which is about $300. So I total to about $800 for 8-10 cord. This puts me at an $80-100 figure per cord.
Now, seeing that I want a better year, I figure starting earlier this time would keep me busy through the year. I'm trying to push people into getting their firewood earlier instead of letting the winter hit them and they frantically search for their wood and get caught with their pants down and left victim to the roadside warriors.
It seems that this year there were not as many, but those who are around have upped their prices dramatically. Or I'm just seeing the regulars doing their usual business. I was seeing cordwood of tamarack and red fir going for $130 at times! DELIVERED! Now they are pushing their limits selling these species from $175 which I say is reasonable, to $200-$250! Some of these more expensive loads are still in ROUNDS! Its amazing!
So, here is my deal. I put an ad on CL today to see if I can start getting prospects. I had a man bite today 3 hours after I posted the ad. He is located 93 miles from my location. I listed a delivery restriction of no more than 100 miles. That covers my region pretty well.
My dilemma here is not the fact that he wants a good order of 10 cords, but the delivery. I'm in a bit of a pickle with this part. I have a regular bed 3/4 ton cummins and I could only fit 1 cord at a time in the bed. Now that is not going to be the least bit cost effective for either of us to make 1 cord deliveries 93 miles one way.
I really want his business, and hope I'm not getting greedy because of the potential to get me busy soon and off the soup line. I do not own a trailer. This is my problem. I was seriously considering a trailer. I would love to get a gooseneck to haul atleast 3 cord a time, but a good one is gonna cost good money. More than I would make selling the 10 cords to this guy.
I thought about renting a trailer to do this but that may not make it worth doing either. Once I figure in the cost of delivery and the trailer rental, it would be a bad deal.
Even if I could haul 3 cord amounts, it still may not be enough to spread the cost to be reasonable.
I need some suggestions here and whether or not anyone thinks there is a way around this. Besides having the wood fairy use her wand magically transporting it for me...
I have a single axle trailer down to the frame that I was pondering on whether or not I should work on it to make it a useable trailer but it needs work, and I would have to add a 2nd axle. I suppose its better than buying a trailer that costs more than to fix.
Also, anyone have some opinions on delivery charges? Here is my breakdown:
My truck averages 14mpg loaded or unloaded, fancy that...
I figure to make my mpg rating 13 instead to err on safer sides. With a 100 mile restriction, that can be a 200 mile round trip.
I use diesel, not gas. Diesel averages about $4.20 a gallon here. If I use my mileage and fuel price, and instead of charging by compensating for gas and instead figure for the cost per mile I get about $.32 per mile to drive. Dictated by my mpg and fuel costs. If I also factor in wear and tear and drive time, I really would be busting at the seams.
I figure on a conservative estimate I can process a cord from cut, split, stacked in an 8hr period. This works me out to about a $15 an hour pay rate. If I drive 60mph on avg. it would cost $46.50 in drive time to deliver.
As you can see, what should I do? Should I charge for 1-way or round trip? Should I charge for wear, tear, and drive time? Anyone have an idea on how to structure this, or is this it?
I plan on selling the cordwood at $200 a cord. This is cut and split. $150 for just rounds and $250 to palletize. Which also brings me to the fact I would have to rent a forklift... Thats another budget problem.
ugh.... :help:
Other then that, it would have to be from log truck deliveries. So thats the route I'm going.
I managed to get "in" with the fellas who are running a logging company. They are the nice ones to let me take some of their firewood. At the time, I was going to burn the birch myself. So really, if I had burned it, I would not of had any season this year. Due to me being layed off (AGAIN!) I sold the wood.
Any boy, the man who bought it drove 4 hours one way just to buy it! :biggrin:
Anyways, these men who are running the log op are selling the birch for firewood because around here mills dont want it. So, they get to sell it as firewood instead. They have plenty of it to keep me busy!
They estimate 8-10 cords on a load and they sell it to me for $500 a load. Plus driver to deliver and unload which is about $300. So I total to about $800 for 8-10 cord. This puts me at an $80-100 figure per cord.
Now, seeing that I want a better year, I figure starting earlier this time would keep me busy through the year. I'm trying to push people into getting their firewood earlier instead of letting the winter hit them and they frantically search for their wood and get caught with their pants down and left victim to the roadside warriors.
It seems that this year there were not as many, but those who are around have upped their prices dramatically. Or I'm just seeing the regulars doing their usual business. I was seeing cordwood of tamarack and red fir going for $130 at times! DELIVERED! Now they are pushing their limits selling these species from $175 which I say is reasonable, to $200-$250! Some of these more expensive loads are still in ROUNDS! Its amazing!
So, here is my deal. I put an ad on CL today to see if I can start getting prospects. I had a man bite today 3 hours after I posted the ad. He is located 93 miles from my location. I listed a delivery restriction of no more than 100 miles. That covers my region pretty well.
My dilemma here is not the fact that he wants a good order of 10 cords, but the delivery. I'm in a bit of a pickle with this part. I have a regular bed 3/4 ton cummins and I could only fit 1 cord at a time in the bed. Now that is not going to be the least bit cost effective for either of us to make 1 cord deliveries 93 miles one way.
I really want his business, and hope I'm not getting greedy because of the potential to get me busy soon and off the soup line. I do not own a trailer. This is my problem. I was seriously considering a trailer. I would love to get a gooseneck to haul atleast 3 cord a time, but a good one is gonna cost good money. More than I would make selling the 10 cords to this guy.
I thought about renting a trailer to do this but that may not make it worth doing either. Once I figure in the cost of delivery and the trailer rental, it would be a bad deal.
Even if I could haul 3 cord amounts, it still may not be enough to spread the cost to be reasonable.
I need some suggestions here and whether or not anyone thinks there is a way around this. Besides having the wood fairy use her wand magically transporting it for me...
I have a single axle trailer down to the frame that I was pondering on whether or not I should work on it to make it a useable trailer but it needs work, and I would have to add a 2nd axle. I suppose its better than buying a trailer that costs more than to fix.
Also, anyone have some opinions on delivery charges? Here is my breakdown:
My truck averages 14mpg loaded or unloaded, fancy that...
I figure to make my mpg rating 13 instead to err on safer sides. With a 100 mile restriction, that can be a 200 mile round trip.
I use diesel, not gas. Diesel averages about $4.20 a gallon here. If I use my mileage and fuel price, and instead of charging by compensating for gas and instead figure for the cost per mile I get about $.32 per mile to drive. Dictated by my mpg and fuel costs. If I also factor in wear and tear and drive time, I really would be busting at the seams.
I figure on a conservative estimate I can process a cord from cut, split, stacked in an 8hr period. This works me out to about a $15 an hour pay rate. If I drive 60mph on avg. it would cost $46.50 in drive time to deliver.
As you can see, what should I do? Should I charge for 1-way or round trip? Should I charge for wear, tear, and drive time? Anyone have an idea on how to structure this, or is this it?
I plan on selling the cordwood at $200 a cord. This is cut and split. $150 for just rounds and $250 to palletize. Which also brings me to the fact I would have to rent a forklift... Thats another budget problem.
ugh.... :help: