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Drying Rate $$ for DH Kiln

Started by Woodey, February 19, 2012, 11:21:30 AM

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Woodey

I'm in East Texas and I'm building a 2,500 BF Kiln, will use a Nyle L200 system. I installed a separate meter to measure electric use.
Need help on how to set rate on how much to charge for Kiln Drying.

How much per BF should I charge on my lumber when selling?

If a customer bring lumber how should I factor charges? ( I have a sawyer friend that want me to dry 10,000 BF of red oak. This will be my first 4 loads.) Should I give him a discount for repeat business?

Does customers help sticker or is that factored in price?
Also finished product does customer help take off sticker?

When lumber is finished is time stated for pick up? Do you charge extra if you have to store lumber?

Should I get contract signed stating charges or will a hand shake do?

If customers bring small amount do you charge extra or wait until kiln is full?

I built kiln to hold lumber 18 ft. in length. If customer bring random lengths of lumber and space is wasted on loading kiln how do you charge for that?

Thanks for your advice.

WOODMIZER LT40HDD34CAT w/accuset
JLG SKYTRAK 6036 Telescopic Forklift
NYLE L200 KILN
BAKER M412 MOULDER

stevareno

Is this 4/4 Red oak?   If so, I would figure somewhere around 30-35 cents per bd ft.  I would do my own stickers and unloading.  I suppose one could negotiate a discount if the s&u the material.  Also, it's not a bad idea to take a photo of a few boards which have defects prior to kiln loading.  I have seen checked lumber when it arrived at our facility.  Cover your basis prior to kiln drying. 

Okrafarmer

You need to know how much it costs in electricity per day to operate the kiln, as well as other costs involved (don't forget things like depreciation!), whether they be per day or per batch, and add them all up, and divide by the *normal* number of bf that the kiln will accomodate at one time. Then you need to put in a fudge factor to account for the fact that the kiln will rarely have the normal amount in it, because of length inconsistencies, and so on. You can use a fudge factor of 10%, or 20%,  or whatever you think is reasonable, to increase your price by. Then you also need to make sure you factor in a worthwhile profit margin, whatever you feel is reasonable. Then you should have a ball-park of what to charge.
He that dwelleth in the secret place of the most High shall abide under the shadow of the Almighty. Psalm 91:1

Operating a 2020 Woodmizer LT35 hydraulic for Upcountry Sawmill, Dacusville, SC

Now selling Logrite tools!

Writing fiction and nonfiction! Check my website.

jdtuttle

I charge .30 BF for 4/4, & up to .60 for 8/4. Thicker the lumber the longer it's in the kiln.
jim
Have a great day

scsmith42

Woodey, this topic has been discused before, and there is some good information in the archives about it.

Here is a link to a thread back in 2009 where I included a detailed analysis with my response (about 1/3 of the way down on the first page).

https://forestryforum.com/board/index.php/topic,39231.msg567303.html#msg567303

You've got to be competitive with the market, but at the same time you need to fully understand your true costs; otherwise in a few years you'll be closing up shop.
Peterson 10" WPF with 65' of track
Smith - Gallagher dedicated slabber
Tom's 3638D Baker band mill
and a mix of log handling heavy equipment.

Okrafarmer

ditto on what scsmith said. Also remember that location and quality can be factors allowing you to charge more than competitors. If you do a better job, or are the only one nearby, you may be able to charge a little more than otherwise. Also, don't forget that your ability to work with people and your personality can help you get business too.  :)
He that dwelleth in the secret place of the most High shall abide under the shadow of the Almighty. Psalm 91:1

Operating a 2020 Woodmizer LT35 hydraulic for Upcountry Sawmill, Dacusville, SC

Now selling Logrite tools!

Writing fiction and nonfiction! Check my website.

LOGDOG

Quote from: scsmith42 on February 19, 2012, 05:07:25 PM
Woodey, this topic has been discused before, and there is some good information in the archives about it.

Here is a link to a thread back in 2009 where I included a detailed analysis with my response (about 1/3 of the way down on the first page).

https://forestryforum.com/board/index.php/topic,39231.msg567303.html#msg567303

You've got to be competitive with the market, but at the same time you need to fully understand your true costs; otherwise in a few years you'll be closing up shop.

Yep, that thread was a good read.

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