pallet cants

[paul case]

i am not wnating to pry into anyone elses business, but i was aproached about cutting a tt load of paller cants. i have not cut any pallet cants before and most all of the pallet lumber i cut i deliver. they would be wanting to pick this up at my mill. the only requirement would be that they want me to cut at least a tt load a month.
price is the thing i dont know about. i am currently cutting boards and i can cut $ 4.80 worth of boards out of a 4x8. i was wanting to know what most of you fellas get for 4x8 and 4x6 -10' or 8'. any input is appreciated. thanks

[Kansas]

My guess is they are going to try and get you to do it for 40 cents or under a bd foot. Unless you really need the work, I wouldn't get in a hurry. Every pallet mill I have talked with is swamped in work here in the area. Ron will have a better handle on how the price is moving on east.
On another note, I talked with a pallet maker this morning. He says the price has dropped coming out of Canada for softwood pallet lumber. He is paying .355 delivered for 3 1/2 x 3 1/2 on a fake board foot basis delivered in.  (paying for a full measure 4x4) That comes out to about .47 cents on a true board foot basis, if my figuring is right. That is for number 2, whatever that means on the softwood market. I would suggest you push to the west, and check out the pallet people in the Wichita/Mcpherson/Oklahoma City area given where you are at. Given the size of your operation, see if you can find people wanting odd  pallet lumber or unusual cant size. You are going to need to be at least 50 cents or more bd foot to make money. Try advertising on Craigslist in those areas, you might be able to get some dunnage in smaller amounts and get better than that from construction companies, etc. In that case, kick the price up to .60 or more.

[ARKANSAWYER]

  Here it is going for $280 mbdft.  You will have to have logs cheap and be able to shuck them fast to make any money.

[Peter Drouin]

Kansas. Is that buying logs and cutting them in to 4x4 or whatever and selling for .50 bf? pete ???

[Kansas]

Yes it is. I am figuring about .20 cents a bd ft per log, which leaves .30 cents for cutting. That isn't great, but its above starvation wages. By just a little.

[Ron Wenrich]

We're up to $420/Mbf on the pallet cants.  That's just a little under what ties are paying.  The most popular size is a 3 1/2 x 6.  So, that 8' piece, I'm getting $5.88 without cutting it into boards. 

I don't like the idea of cutting pallet boards.  First off, they don't pay nearly as good for us.  Secondly, I make more money cutting good lumber than I do cutting pallet wood.  I always am looking to put my log into the biggest piece of blocking, without leaving on the good grade.  Every cut of pallet I make is one less cut of good lumber I can make.  Time is not a renewable resource.  Sawing expenses go up the longer it is on your headblocks.

Sometimes you have to get a pencil out to scratch out what's the best thing to do.  Profit = lumber value - log costs - sawing costs.   To compare cutting patterns, just plug in the numbers.  Log costs are not a factor when comparing, as the log costs are the same for both operations.  So, you are only figuring lumber value less sawing costs.  Which yields the best income?

[Kansas]

  Here it is going for $280 mbdft.  You will have to have logs cheap and be able to shuck them fast to make any money.

Arky, surely you do not mean you are trying to buy the logs and cut the lumber for .28 a board foot. Is that someone providing the logs and you cutting it for .28?

And I know, I shouldn't call you Shirley.

[ARKANSAWYER]

  No that is you sawing the cants out of your logs.  Since it cost $0.25 to saw you have to have really cheap logs or some by products you have to get rid of.  3b lumber is going for $0.17 bdft and they split that for pallet deck boards.  No money in pallet stock here.