Age old question: How much to charge?

[MTU Husky]

I have a customer that wants (2-3) 10"x12"X16'-0" pine beams. Typically, I've been charging $0.50-$0.70 per bd ft. (depends on board width - is this consistent with your pricing?) plus 8% sales tax. I have left over logs from the truck load we bought for a barn. On average a log cost $45.00 each. We will get some left over 1x's from the logs which we can use or sell. Would you charge less ($0.50 per bd ft.) since there would be less labor/milling involved or would you stick with the $0.70 per bd ft. due to size of beam? I will be using a manual MP-32 and parbuckling logs onto mill.

Last weekend I cut about 600 bd ft. of oak out of 2 logs. The customer delivered the logs and supplied a tractor with forks (Customer operated tractor). Mostly cut 52 boards of 1 1/2"x6"x12-0" with 16 boards ranging from 1x6 to 1x12. It took about 4 1/2 hours which includes uncovering mill, set-up, clean-up, and covering mill. Inexperience with loading logs onto mill and turning logs with forks did not help on our hours. Also, we had to stop several times and trim the logs with a dull chainsaw for the posts on the MP-32 to clear. The customer is my business partner's wife's uncle and owns a logging company. He can bring us a lot of work. I don't want to charge him to much but then again I don't want to undercharge either. I've seen other posts were people charge $0.30 per bd ft for labor or $30-40 per hour. We still have about another 10-12 Oak logs to cut. How much would you charge?

I'm using Cook's super sharp blades that have been resharpend twice on the oak logs. They seem to be cutting ok. The saw dust seems to fine. Would you recommend using a different blade? The oak logs are from trees that were blown down in a storm 2 weeks ago.

Do you charge for the additional 4-6" on a log? For ex. our 16'-0" logs measure from 16'-4" to 16'-6"

[tyb525]

I charge $.35 per board foot  of lumber cut, regardless of size or length. On small,crooked, or difficult logs, I charge $50 an hour.

Simple, easy way to do it. Be careful charging people different prices, that might not turn out too well.

Oh, and I wouldn't worry about your sawdust if the bands are cutting ok. My sawdust varies from sand-like to flour-like, depending on species.

[Brucer]

... Would you charge less ($0.50 per bd ft.) since there would be less labor/milling involved or would you stick with the $0.70 per bd ft. due to size of beam? ....

The value of your product is determined by the customer. Large structural beams are nearly always more valuable then lumber because they are not as common. Whether you include the value of the side lumber in your calculations depends on how likely you are to sell it quickly.

For a 10x12 Douglas-Fir beam, #1 Structural grade and less than 20' long, I charge $16.00 per linear foot. The log costs account for that and I don't consider any recovery from the side lumber as that stuff may sit around for a year or more before I can sell it. Also, Douglas-Fir is the strongest of the structural grades and that makes it more valuable.

There are a couple of outfits that charge less than I do. Once people have seen my work they come to me instead -- my timbers have no wane (even though it's allowed in the grading standard) and the timbers are square. I also sell to the nearest whole foot -- everyone else around here sells to the even foot.

You will have to do some research. What are large beams selling for in your area? Can you make the product more valuable to the customer (by making it free of wane, for example)?

Don't feel guilty about charging more for large timbers. They require extra handling to get off the mill, and often extra machinery.

Do you charge for the additional 4-6" on a log? For ex. our 16'-0" logs measure from 16'-4" to 16'-6"

I always charge to the whole foot, but cut them a few inches long -- about 3" for every full 8' of length. There may be end checking and in any case the customer will probably want to trim the timber. It's a lot easier to trim a big timber if you've got an inch or two to play with.

[Brad_S.]

As Brucer said, you are supplying a specialty product which commands a premium.
When I was sawing, I charged 60¢ a bdft. for pine 1&2x's and $1.00 for beam material. The time it takes to handle large timbers is greater so that extra 40¢ was not all pure profit.

[paul case]

As Brucer said, you are supplying a specialty product which commands a premium.
When I was sawing, I charged 60¢ a bdft. for pine 1&2x's and $1.00 for beam material. The time it takes to handle large timbers is greater so that extra 40¢ was not all pure profit.

i am charging $.30 for sawing. $.60 for lumber. the lumber price will only be beat at the lumberyard on 2x4. i havent heard before of someone charging $.60 for sawing before.

sometimes a helper who doesnt know how to or what to do is not much help and will cost you more than what you charge. that said, your last weekend sawing 600bdft in 4.5 hours works out to $40/ hour if you were charging $.30bdft. thats right where i would want to be. can a manual mill cut more 2x's in 4.5 hours? yes but you never know just what effects you are having  for your future. you said that this might drum up more business so putting up with a slow operator may pay off. chances are he will get better. most of those guys would get  a lot of quicker after he has done the job a bit.

i sawed a lot of 1x lumber out of small logs for a neighbors son. he and his dad paneled the inside of his horse barn with it. the job came at a slack time and i needed the work. cutting 1x4's , 4 at a time is a slow way to make a living. but in the last year i have cut trailer flooring, project lumber, and corral boards for folks who have seen this boy and his dads stable. one trailer flooring job came from folks who heard about me from someone who saw the barn. 

word of mouth is the best advertising.

it takes years to gain a good reputation. only 1 bad job sawing to ruin it.

pc