how to figure my prices?

[leastofthese]

had some gentleman come by and ask about some lumber this evening. they want 4 2x8 and 80 2x6 all 16'. i have the trees but need to figure the price for lumber from my own trees. any suggestions?

[Kirk Allen]

I normally try to price stuff like that at the same ball park price as the box stores.  Now for me, a box store is 23 miles in any direction so that is a fuel cost they dont want to encure. 

If its priced competitive the real question is can you afford to cut your own trees down for that kind of price?

I tend to cut all my construction stuff from Southern Yellow Pine telephone poles.  No cost to me and other than sawing expense they are pure profit!

[leastofthese]

i kind of agree, after doing some coursory figureing while i was doing my evening milking. one friend said the going rate for that kind of work was 300 dollars a 1000bd/f while i can have my own lumber sawed by portable bandmill for 200 per. so that makes 100 dollars for a 1000 bd/f, doesn't seem like much.

[leastofthese]

by the way mr. kirk ,where do you come by free poles?

[joasis]

That is why I would not try to compete with a lumber yard, but rather do only timbers for a specialty purpose. I made several hundred dollars just doing mantles for fireplaces.

[Kirk Allen]

I get the poles from the local power company.   I cut for several of the linemen and when they get storm damage poles the take care of me!

[HaroldCR]

 First off, that $100.00 is the difference between YOUR having them sawn, and someone ELSE having them sawn. That 20 cents bd/ft X 1000 bd/ft = $200.00 JUST for sawing. NOW, add in the cost of getting the logs TO the mill + the COST of the LOGS.

  If you are trying to sell your trees as lumber, you need to figure in ALL of YOUR costs. What's your trees-logs worth, and your time and expense to fell and skid them + your sawing charge

 Lets figure just this. a 2 X 6 X 16' has 15 bd/ft/ At $1.50 bd/ft MINIMUM, that's $24.00 each. How many can you get from an average one of your trees   Do knots matter or are your trees over 34' to the first limbs I'm allowing 2 ' for bucking square ends, after felling the trees.

  ME??? I would sharpen my pencil AND see what I could buy them for already sawn. Make some phone calls.

[leastofthese]

this is a small community and i'm possible trying to enter the sawmill business, i thought it might be a good deal for the practice and getting the word out that i'm available. i did not plan to saw all my trees for other peoples lumber, those are to build my house with.  the 80 2x6x16 are $640 at lowes, which would seem a fair price to me for the lumber i would saw, just off the top of my ahead of course, thats not figuring any of the expenses like haroldCR mentioned.  as far a cutting specialty timbers, it sounds good but doesnt seem like there would be enough demand around here for that, but i could be wrong like usual.

[HaroldCR]

 

the 80 2x6x16 are $640 at lowes

  You telling me that Lowes sells 2 X 6 X 16' for $8.00 EACH 

  I'm headed out on Tuesday, to saw 4-5 trees. Not sure how many bd/ft of logs, but, I'm charging the equivalent of .35 bd/ft. This will be 1 X 4's nearly exclusively, sawn with a Swing Blade Mill. Slow going, but, I thought up a way to increase output, MAYBE, so, I will see how that goes.

  This is the second time for this customer.

  Neighbor bought a NEW LT15, couple years back. He told me a couple days ago, he sold the mill. He was charging equivalent of .10 bd/ft. and couldn't make any money. 

  When I told him what I charge, he almost had a Coronary attack.    I went to watch them saw one day, and they had NO idea what efficiency meant. I could have tripled production, but, competition is tough around here. NOW, I got NONE. Other guys saw all day long with Alaskan type mills. Guess what THEY charge   10 Cents equivalent.    Gasoline alone is 4 something a gallon. 

[Kirk Allen]

Nothing like working smart instead of working hard!

[joasis]

The local mills around here charge .35 up to .55 a bd/ft typically. Primarily why I bought the big Meadows.

I may get a wind hair and sell the Mr Sawmill and buy a larger mill, since I just can't leave it alone, but what I want to saw has nothing to do with construction material. Problem is, except for ERC, there isn't enough black walnut, or other hardwoods to make it practical to own a mill.

[leastofthese]

i talked to  an older man sat. that still has a circle mill. he charges .50 bd/ft. which of course sounds alot better. so i called to local lumber yards. a 2x6x16 is 5.59, thats .35 bd/ft. thats pretty cheap. i told the guys who wanted the lumber  where to go buy it cause i ain't selling my trees that cheap. but i would saw free trees for that price. i went and did some welding for my neighbor today, he has 4 nice size pines to give me, so maybe i will be able to sell some lumber in the future.

[HaroldCR]

 I never saw your location, so, my suggestions were "Off the cuff", so to speak. Are you comparing similar types of wood  

  Sounds like you have a good idea what you need to get. 

[Clyde]

Good Evening Everyone. I'm sure Frank Pender had given up on me by now, but I'm still here. Just my two cents on this topic. Up here in Minnesota, at least around here where I live, it has become very difficult to compete with the large lumber yards. It is even hard to cut for your own use, not including hardwoods. We have some real nice red pine, but the retail price is quite low. It sells in the range .20 to .25 a board foot. That dosen't include kiln drying which can double the price. Then you really aren't making money. White pine sells much better,but generally is not  sold at construction grade prices. By the way, the lumber comes into the Midwest by of I-Falls MN by train. The trains can be as long two miles , all lumber. Hard  to compete with Canada. Clyde

[Frank Pender - AKA "Tail Gunner"]

I charge $0.855 a board foot for my Douglas Fir.  If they do not want the lumber, I do not cut my logs.  If they furnish the log, I charge $0.295 a board foot for the Fir.