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Lumber to concentration yards...

Started by SawDust_Studios, October 12, 2006, 11:09:41 PM

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beenthere

south central Wisconsin
It may be that my sole purpose in life is simply to serve as a warning to others

SawDust_Studios

Opps. ;D

Well, i thinkthe .05$ was more accurate, but it was .95$
Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

DR_Buck



Did I miss something here?


QuoteGot the tally today!

FAS 5@ .05
1F   64@ .94
1c   132@ .50
2c    342@.36
----------------
543 bdft @ $254.03
+
3c    110@.100
------------------
Total 662bdft @ $265.93  - 2% for early pay = $260.61   Thats less than .40/bdft


I get .30 bd just for sawing someone elses lumber.   I'd burn it for firewood before I let is go at that price after sawing it.
Been there, done that.   Never got caught [/b]
Retired and not doing much anymore and still not getting caught

SawDust_Studios

DR

That is what we get for customing sawing.  Which is why I'm so upset at this place. I can get over .30 bdft taking the low grade stuff up to a local pallet place.  Which is probably what they do...  I was cheated, I have no doubt.  No much recource for the small guy though.

Live and learn...
Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

beenthere

Sawdust_Studios
That will be your option to not do business with this outfit. But that is the business they are in, and if they don't get enough lumber from you and others, their price will likely go up. They apparently buy low and sell high. The difference is expenses + profit.
Have they been in business long? 
If they paid you market price at which they sell it for, then they don't make any money (seems to me). I'd think all concentration yards would work in a similar manner. Then, I could be wrong ( :) it happens :) ).
south central Wisconsin
It may be that my sole purpose in life is simply to serve as a warning to others

SawDust_Studios

The prices on up in the post are what they currently paid for RO.  They then kiln, edge trim and sell.

The original "gripe" was that they where completely off and unfair in their tallys.
Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

Ron Wenrich

The below grade price is what kills you.  Remove the 3 Com and your price was $460.  That's not a great price, but, maybe they weren't great logs.  If you're not sawing blocking, then your lumber prices will drop pretty hard.

Many companies that we sell to pay $0 for boards that are below grade.  We also have one company that will not buy dead wood.  They have to handle them and many just make stickers out of them.  Like any operation, you have to limit the amount of non-profitable material from the product flow.  I can't make money on small logs, and they can't make money on below grade material.

The business of the concentration yard is to market lumber.  Log buyers do the same thing.  They are taking a market function that small mills cannot do and make it profitable.

The problem lies in the grading.  Not all mills will grade the same, because lumber graders do not sit down and measure cutting units on a board.  They do it by sight, and sometimes are off.  Who's to check unless it is regraded?  We know when the markets change just by the way the graders do their job.  We also know that different graders from the same company will give us different values. 

Some yards will upgrade and give it to the mill, some won't.  They don't have to.  If you send a board to a yard that grades 2 Com and they can upgrade it to 1 Com, they get the profit. 

I would try another yard, just to see if its you or them.   
Never under estimate the power of stupid people in large groups.

SawDust_Studios

That is my plan.   We've been loggin the last week in the evenings, so we are sawing this weekend.  I plan on taking some lumber up to the other place that is nearby.  They seem pretty nice as I've meet the guy who owns it. 

They only pay every 30 days which is a negative, but if that is the only downfall, I can accept that.   I'd like to get a good relationship going with someone in my area.
Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

WH_Conley

SawDust, you graded the last load. Try to get the very same tally with the next load to the other yard even if you have to pick the load. The reason I say this is that I have seen and have been guilty myself f having more than one load laying on the ground (logs) loading 2 trucks and sending them to 2 different mills. If not very careful the first truck will have better logs on. Now that I mill I beleive the same thing can happen with lumber. You know what you sent last time, try to make it is the same load.
Bill

SawDust_Studios

Exactly what I plan on doing. I have about another 700-1000 bdft of lumber to saw from the same batch of logs, which should yield fairly similar. If not, at least I can judge what I feel is the difference and go from there.  I'm hoping to take it up this week after we saw it Saturday.  Only bad thing is that they only pay every 30 days.  But I can live with that if the prices are fair and the tally is fair.
Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

BBTom

I haven't found a  concentration yard yet that pays in less than 30 days.  even though they say they do.  It must take them 2 weeks to get it graded, then they pay 2 weeks after the office gets the tally.  One yard does pay 50% of estimated value within a week, which is nice, but you wait about a month to get the rest. 

The outfit I am now using is working it as a true broker.  I pay 60$/m for the grading plus 8% of what he gets out of it.  He is selling his own sawmills lumber at the same time, so he gets a good price for me.  I do have to wait till he is paid, but I can live with that.
2001 LT40HDD42RA with lubemizer, debarker, laser, accuset. Retired, but building a new shop and home in Missouri.

SawDust_Studios

The place I took it may not be a true concentration yard, as I believe they do some sawing, at least pallets, etc.  But they do get a large percentage of the lumber from local mills.  They pay in 7 days and take a 2% cut for early pay.

The next place I'm taking to is a concentration yard, as they do no sawing or logging.
Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

Duncan

Around here I am not aware of any "concentration yards" but I have met several lumber brokers.  I also made a trip down to the local hardwood kilns and was put off of the brokered lumber.

#1  I got the used car salesman feeling from every broker that I talked to.
#2  The kiln manager strongly suggested that in low volumes of say 10K every two to three weeks I would be so low on the priority lists that my lumber would sit until convient for the kiln to process.

I would love to skip most of the marketing for hardwoods and just produce lumber but I haven't found an outlet except for the hard marketing.

If any sawyer has a reputable broker or dealer in the area of Portland, OR or Vancouver, WA let me know.

Kelly
Kelly

farmerdoug

Sawdust_Studios,

Have you sold any lumber to the other concentration yards yet?

Farmerdoug
Doug
Truck Farmer/Greenhouse grower
2001 LT40HDD42 Super with Command Control and AccuSet, 42 hp Kubota diesel
Fargo, MI

oakiemac

Saw dust

I had a similar problem with a concentration yard. They graded everything extremely hard. I know I had a lot more upper grade then they said. I solved the problem by not selling to them anymore. As a matter of fact I quite selling to any of them.
I know a lot of mills grade and mark their lumber before it goes to the yard so they know what they have for sure.
Mobile Demension sawmill, Bobcat 873 loader, 3 dry kilns and a long "to do" list.

SawDust_Studios

Quote from: farmerdoug on November 07, 2006, 08:03:26 PM
Sawdust_Studios,

Have you sold any lumber to the other concentration yards yet?

Farmerdoug

Yes, I did. But they only pay every 30 days, so I should be getting a check very soon.  I'm ready to take up another load, just wanted to see how they do. I have one other yard I can take to, but if this one is fair, I'll just do business with them.
Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

SawDust_Studios

UPDATE!!

I just got the check from the other yard.  I took some other stuff up too, but I took 540 bdft of the same type of material from the same batch of logs.  $370 for the 540 bdft.  So a far cry from over .$32 bdft or whatever they other yard gave me.  $.69 for this batch.   8) 8)

That's all I ask is that I'm treated fair.
Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

Onthesauk

Good for you!  A good deal is when both sides walk away happy.
John Deere 3038E
Sukuki LT-F500

Don't attribute irritating behavior to malevolence when mere stupidity will suffice as an explanation.

SawDust_Studios

Quote from: Onthesauk on November 10, 2006, 06:28:02 PM
Good for you!  A good deal is when both sides walk away happy.

Oh, and another thing.  This yard also knows the product they are selling, but still treats the sawmill fair!!  I had one large log in this that I turned to get some rift and q-sawn out of. They pay extra for r-qs.  Their prices are
1750mbf for FAS and 1F
1025mbf for 1C
650 mbf for 2c


Making Sawdust on a Woodmizer LT40SHD CAT 51 /WM Twin Blade Edger and WM DH Kiln

Ron Wenrich

Never under estimate the power of stupid people in large groups.

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