What to sell wood for this year (I need advice)

[Patrick62]

Last year we started at $135 and ended up asking $145. Then I got to thinking, this is central Colorado, gas ain't so cheap the the trucks are not economy cars. let's dig into history for a bit. Go back a few years.
I asked what wood was selling for around about 1970. $65
Then again around 1980. &75-80
1990? $95 or so....

So I then kick in the computer and do a little checking... Hang on :bang:
If the 1970 $65 cord was adjusted for 2007 inflation it would be $340
There simply ain't no way that I could convince people to pay that for wood!

Work it backwards, the 145 cord is worth $27.71 in 1970...

This product doesn't track inflation very well at all. The only thing that makes any sense is basing it on what 1 man is willing to do in one day. In 1970 clearing $50 wasn't too outragous... Last year clearing $100 wasn't real bad. This is for only 1 cord. Cut, split, delivered. I suppose a real man could do 2 cords (not me).

So I figure that $145 is probably fine again this year, unless I have to drive it 35 miles at over $3.00 gallon fuel . Then I might invent a delivery charge!

What do you guys think??

-Pat

 

[Ductape]

Out here in New Hampshire i see green cords selling at up to $180/cord... and seasoned wood selling $220 - 250 / cord.

 

[hbbyloggr]

Out here in New Hampshire i see green cords selling at up to $180/cord... and seasoned wood selling $220 - 250 / cord.

My wood sells for $ 230.00 green and $ 270.00 seasoned. We also have kiln dried wood for $ 375.00 per 1/2 cord.
Before you sneeze, we buy in our " processor " logs, buy in our fuel in bulk, make truck payments, make processor payments, make loader payments, pay our mortgage, taxes, food, and try to make a living.
We sell 1000 cord per year. If I sold my wood at 180 either the business would have to go or the family would have to sell out.
Sell a good product ,provide excellent service ,and charge what that is worth.

Hbbyloggr

 

[logbutcher]

"Good Product, ..Excellent Service, and Charge...Worth"

My wood sells for $ 230.00 green and $ 270.00 seasoned. We also have kiln dried wood for $ 375.00 per 1/2 cord.
Before you sneeze, we buy in our " processor " logs, buy in our fuel in bulk, make truck payments, make processor payments, make loader payments, pay our mortgage, taxes, food, and try to make a living.
We sell 1000 cord per year. If I sold my wood at 180 either the business would have to go or the family would have to sell out.
Sell a good product ,provide excellent service ,and charge what that is worth.
Hbbyloggr

Advice can't get better than this.

Add a few things to this ( full disclosure: we've harvested our firewood for too many years along with pulping and TSI each winter. 24/7 heat with 2 stoves. ) :

1. You're selling a commodity. Price it for the added value to the customer. Your costs are only the beginning of price. Customers don't give a ___ :monkey: about cost anyhow...for anything.

2. If it helps you, push the green loads. Educate customers as to why they should buy in late winter/early spring. You get money, they get a "deal".

3. Add something to the mix that's adds value to the price. How about "stacking included" for $XX./cord ? Hire a high school jock for their exercise. Most people who buy wood ,think that's it's a PITA to even stack.:deadhorse:

4. You've already got the value-added "kiln-dried" offer. How about thinking about "premium" wood like all hickory, hard maple, oak, or even apple ? We don't have much of those Downeast. Send some from wealthy NH:hmm3grin2orange: .

5. And finally, get down with wood sources that need to get rid of wood: developers, municipalities, landowners, site workers, arborists,etc...

Tough business. Close margins. Be creatively selfish.

 

[Ductape]

Hey..... i wouldn't sneeze at your prices. This past winter i worked for a farmer who logs off his property and of course tops and non-sawmill logs all become firewood. I don't know exactly what he gets for a cord of wood, but i CAN tell you he is selling it at a loss.... because he doesn't know how much it costs him to make it firewood !

 

[BlueRidgeMark]

i CAN tell you he is selling it at a loss.... because he doesn't know how much it costs him to make it firewood !

That kills a lot of businesses. If you don't know your costs, you'd better have a very good profit margin, or you are going to fail.

 

[ADAMH]

locally its going for

1 cord =128cuft hardwood split

green=$220 cdn
seasoned=$270cdn

I will be selling green at $200, seasoned at $260

 

[Buzz 880]

Hardwood firewood goes for $240 green and $270 cut split and delivered.But with the way the pulp markets are here i can see the prices falling off because the big contractors are letting loads of wood drags go for nothing just to get rid of them.Now everybody is selling firewood.

 

[Patrick62]

Hard wood? here?

Not likely. Around here I have various variety's of pine, and some aspen.
People around here know to expect pine.

It blows my mind when I see somebody loadind a couple of those grocery store bundles of wood.... :newbie:

I could drive 6 minutes out of town and manufacture that much wood with my boots!

Anyway, thanks for the ideas, I ain't so far off as I thought. Maybe a little cheap. This is lots easier to say when my arms are still sore from cutting a load today!

-Pat

 

[treeman82]

I've never sold green wood before, but I think I am gonna give it a shot this year for $150 - $200 per cord. Seasoned next winter is gonna be $250 - $300 per cord. All oak and locust for the seasoned stuff.

 

[ShoerFast]

Not likely. Around here I have various variety's of pine, and some aspen.
People around here know to expect pine.

It blows my mind when I see somebody loadind a couple of those grocery store bundles of wood.... :newbie:

I could drive 6 minutes out of town and manufacture that much wood with my boots!

Anyway, thanks for the ideas, I ain't so far off as I thought. Maybe a little cheap. This is lots easier to say when my arms are still sore from cutting a load today!

-Pat

Pat,

Douglas Fir is as good as it gets here, or what the USFS recommends.

Selling wood in the Front Range area , I get / will get $225 a true cord, and sell out every year. All sold on free ads and a customer base I had built over the last few years.

This year will be my best yet, leased a huge wood lot, my target is 100 cords (the gold ring) will see how time developed as summer progresses.

 

[A100HVA]

$175.00 per cord within 15 mile of woodyard.extra outside 15 mile area

2 cord load unloaded here

 

[Mr. Firewood]

I am going from $185 a cord to $200 a cord delivered within 10 miles of the shop

 

[ThatWoodGuy]

It's interesting to see different prices all over. Here in N Cali this is what I get for seasoned full cords,

Madrone $360
Oak $250
Mixed $220
Fir $200


This is delivered and stacked, I don't have a stacking charge and my "free" delivery is up to 75 miles, after that I do have to charge for mileage. The phone rings all day long for Madrone, don't sell much of the oak or softwoods.

 

[logbutcher]

Real green Wood Sales

I've never sold green wood before, but I think I am gonna give it a shot this year for $150 - $200 per cord. Seasoned next winter is gonna be $250 - $300 per cord. All oak and locust for the seasoned stuff.

It's another market for firewood, a win-win: you get the $$$ early in the season, and space for storage when thnings are slow. Joe (Josie ) customer gets a big discount.
When we didn't have the time, land, or chances to cut firewood in a past life , we'd buy green CSD from our local logger. Over beers he told us that he was glad to get rid of freshly cut and split stuff. Handled once for him. Good deal all around. Dumped in our yard, seasoned for the summer.
That price for CSD seasoned oak/locust is cheap for N.Y. Don't go below $200
for green oak/locust. ( Send it here )

 

[Firewood Guy USA]

Last year we started at $135 and ended up asking $145. Then I got to thinking, this is central Colorado, gas ain't so cheap the the trucks are not economy cars. let's dig into history for a bit. Go back a few years.
I asked what wood was selling for around about 1970. $65
Then again around 1980. &75-80
1990? $95 or so....

So I then kick in the computer and do a little checking... Hang on :bang:
If the 1970 $65 cord was adjusted for 2007 inflation it would be $340
There simply ain't no way that I could convince people to pay that for wood!

Work it backwards, the 145 cord is worth $27.71 in 1970...

This product doesn't track inflation very well at all. The only thing that makes any sense is basing it on what 1 man is willing to do in one day. In 1970 clearing $50 wasn't too outragous... Last year clearing $100 wasn't real bad. This is for only 1 cord. Cut, split, delivered. I suppose a real man could do 2 cords (not me).

So I figure that $145 is probably fine again this year, unless I have to drive it 35 miles at over $3.00 gallon fuel . Then I might invent a delivery charge!

What do you guys think??

-Pat

Hi Pat, I guess you can ask any price for firewood. Just make sure you retail your firewood more than what it cost you to manufacture it.

 

[Patrick62]

Cost of production... is the key!

I have to settle down and figure out what it costs to get wood in the yard.
Then I have to figure out what it costs to load up and deliver.

Then I will have my answer!!opcorn:

Some of these "customers" are gonna scream bloody murder if I ask for more $$$ for wood. Let them scream a bit. I can't do it for free. Truck likes gas.

-Pat

 

[bassman]

I have to just say this.....
what are other guys sellin it at in your area??
I have seen cords go for $400 in the city to people in $700 000 dollar houses that have chimnaya's (spelling)
I would have a hard time spending more than $100 a cord but what do i know....
again I would think your areas competition will tell you what you can get.

 

[logbutcher]

Price, Value, Market

Think value guys. Most of you are undercutting yourselves by selling too low. Dropping a price that will not fly is easier than raising your price.
Think about what consumers pay for : bottled water, milk, fuels, iPods, software games,.....Inflation prices are right on target: gas, milk,electric.
Then, why sell firewood for so little ??:deadhorse:
Your selling price STARTING POINT should be your cost of production. Then go on to the market and value to your consumer.
With costs of fossil fuels heading up (and much more in Europe and Canada), use it for pricing your CSD firewood.
Is your labor worth so little ?
Now a question: how much would a cord (hardwood like maple or oaks)cost if it matched BTU to BTU for say heating oil @ $2.50/gallon ??? :chainsawguy: Talking close to $ 600/cord ? There you go.

 

[hbbyloggr]

Think value guys. Most of you are undercutting yourselves by selling too low. Dropping a price that will not fly is easier than raising your price.
Think about what consumers pay for : bottled water, milk, fuels, iPods, software games,.....Inflation prices are right on target: gas, milk,electric.
Then, why sell firewood for so little ??:deadhorse:
Your selling price STARTING POINT should be your cost of production. Then go on to the market and value to your consumer.
With costs of fossil fuels heading up (and much more in Europe and Canada), use it for pricing your CSD firewood.
Is your labor worth so little ?
Now a question: how much would a cord (hardwood like maple or oaks)cost if it matched BTU to BTU for say heating oil @ $2.50/gallon ??? :chainsawguy: Talking close to $ 600/cord ? There you go.

Right on LB,

We don't want to compete with someone that might not be in business next year because they can't afford logs ,gas or found they work for nothing. They didn't get what it was worth to begin with . But, when they advertise their low rates it sure does spoil the legitimate playing field.
We should all be in the $ 300+ dollar range.