iDRY Vacuum Kilns

Sponsors:

Looking for Lumber Wholesale Price Sheets

Started by FeltzE, January 31, 2003, 05:33:44 AM

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

FeltzE

I am looking for a recent copy of a lumber wholesale price listing such as "Random Lenghts" or another commercial publication.

I am not interested in aquiring a subscription to one just get a one time copy of something recent to help me evaluate some business opportunities and make some decisions on what we are going to be doing for the next few years.

Thanks in Advance...

Eric

Ron Wenrich

The Hardwood Market Report used to give out a free copy or two, just so you could see their report.  I'm not sure if they are still doing that.  http://www.hmr.com/

Another one is the Hardwood Review.  http://www.hardwoodreview.com/  I've seen their reports, and I like them better.  I don't know if they'll give you a complimentary copy.

What is it you are looking for?  I've noticed that a lot of wholesalers will use the HMR as a guideline for pricing, but they will change their prices to accomodate their needs.  You will also get different grading specs from different wholesalers.  
Never under estimate the power of stupid people in large groups.

FeltzE

We are considering getting involved in some local timber framing and need to see what the market prices are for various "timbers" and species. I know what the log prices are for the area we just need to find the appropriate wholesale prices and compare to see if it is equitable and potentially profitable.

I don't see much point in buying logs and sawmilling for wholesale as timbers for a price which is less than we charge by the MBF. But the other side is don't cut ourselves too close to the margin either.

Eric

woodmills1

Don't know if this is any help but the hardwood market report only lists green and kiln dried stock prices up to 8/4.  send me a private message and I can give more info If you like.
James Mills,Lovely wife,collect old tools,vacuuming fool,36 bdft/hr,oak paper cutter,ebonic yooper rapper nauga seller, Blue Ox? its not fast, 2 cat family, LT70,edger, 375 bd ft/hr, we like Bob,free heat,no oil 12 years,big splitter, baked stuffed lobster, still cuttin the logs dere IAM

FeltzE

I've dropped them a note and hopefully they will respond with some good information.

If not I'll drop a line.

Thanks for the offer for now.

Eric

Ron Wenrich

I'm not too sure how much value you will get from a market report.  They are dealing in lumber, and not in timbers.  There are a few other things to consider when you're trying to come up with some numbers.

First of all, your production costs are going to go down.  You will be making bigger pieces, which require fewer cuts.  You will have fewer pieces to handle.  And, you will be getting more volume per log, since you won't have saw kerf or over-sized lumber.  Just make sure you can move the bigger pieces.

Secondly, you'll be getting paid straight through for your material.  That means the low grade at the heart will be just as valuable as the outside of the piece.

I use this method for figuring out ties.  Our price is $20.50/tie and I get 44 bf in the tie.  Value is $467/Mbf.  That sounds like anything better than 2 Common should not be thrown into a tie.

But, if I were to cut that down to a piece of blocking, say a 4 x 6, and I get $300/Mbf for that, then I have a piece worth $4.80.  

Out of my outside boards, I will get 2 1x6s and 2 1x7s.   That will give a yield of  17.33 bf.  In order to break even on the tie price, you need to get $15,70 (tie price less cant price) or $906/Mbf.  Any board lower in value will make the remaining board value higher, just to get to breakeven.

I've always used a formula of Profit=Lumber value less log costs less sawing costs.  If you are looking at a breakeven, then profit TF(timber frame) = profit C(currnet).

A lot will depend on the specs needed for the timber frame.  That will probably dictate what type of logs are acceptable.  You may want to consider a risk factor on the logs, as well.

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

FeltzE

Ron,

I've recieved the Hardwood Review and a copy of the Market Report. I havn't taken the time to really go through them. I  have also asked for a copy of Random Lengths and hope they will send me a copy.

I understand your price concepts. My single biggest problem is that I am not going to have a ready market for side boards cut from the log while making the cant's. That lumber will ultimately be kiln dried if it is worth the effort and kept for retail to my local customers.

I want to keep my prices appropriate to the market value so if I am to produce a timber frame and need to buy cants from another mill or logs from a supplier I havn't cut my profit margin too close.

We have cut our first frame and will be putting it up this month. It's a simple 4 post frame for a storage shed. The next frame is going to be a 2 horse stall set for display at our local horse park. I need to establish the appropriate kit prices for the potential customers.

Eric  :P

FeltzE

FYI,

The Random Lengths office has replied to me and they have a single subscription price of $6.00. Which actually seems fairly reasonable for someone like me who may only need one or two copies a year.


Thanks for the help

Eric

Thank You Sponsors!