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Author Topic: Organization of mobile Mill in Russia. Need advice.  (Read 3393 times)

Offline ssshnitco

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Organization of mobile Mill in Russia. Need advice.
« on: October 16, 2012, 09:35:50 AM »
Hello to everyone. I own a small sawmill that is operating below my willings. The price of logs rises much faster than my customers' prices.
My log suppliers are situated in 100km from my mill and i'm thinking of making it portable enough to deploy near the logging sites. How do you  cut such costs at your mills?
Thanks in advance.

Offline Stevem

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Re: Organization of mobile Mill in Russia. Need advice.
« Reply #1 on: October 17, 2012, 12:13:08 AM »
Hello to everyone. I own a small sawmill that is operating below my willings. The price of logs rises much faster than my customers' prices.
My log suppliers are situated in 100km from my mill and i'm thinking of making it portable enough to deploy near the logging sites. How do you  cut such costs at your mills?
Thanks in advance.

Welcome to our little world.  We are really getting international. ;D

What kind of mill do you have?  Band, circle saw, swing blade. dimension, or something else.

Lots of good people her with lots of information and experience.

Where I live, the mill tells the log supplier what they are paying for delivered logs.  If the mill can't get logs then he has to raise his price until he can get logs.

Then you calculate what it cost to produce lumber (labor, log cost, fuel or energy, etc.) and a little wear and tear on equipment.  To that cost you add what is reasonable profit/wages for your labor and time.  

The result is what you HAVE to HAVE to operate and survive.

Then the mill tells the customer what the price of lumber is.  Customers will always try to get you to take less money BUT if they buy your product your price is right. You don't want to be the cheapest supplier, That is a losing game. Just be the best!

Moving the mill closer to the log supply should reduce the cost for the log supplier and therefor what they have to receive to survive and profit.  You can move the mill but can you love your customers?

Does that help?

Stevem
Because you can doesn't mean you should!