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A few questions on selling lumber.

Started by oakiemac, March 05, 2004, 12:50:27 PM

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oakiemac

I'm thinking about selling some of my lumber green. Here are a few questions that I have come up with. Any input is more than appreciated.
1) What is meant by FOB from sawmill?
2)What comprises a trailer load? (How many board feet) RO, Cherry-green.
3) Can I sell less than a trailer load? Like half a trailer load.
4) Who usually pays for shipping? The buyer?
5) When loaded on a trailer, how is the lumber protected from the elements? Is it the sawmills responsibility to wrap the lumber in something to protect it like plastic?
6) Is it standard practice to have the lumber graded? Can you sell ungraded lumber?
7) Is lumber stickered when placed on trailer or just dead stacked?

Well I guess that's enough questions for now. Thanks again for your input.
Mobile Demension sawmill, Bobcat 873 loader, 3 dry kilns and a long "to do" list.

Kirk_Allen

oakiemac:
1. FOB= Freight on Board.  
2. Depends on who is buying the lumber.  The buyer should be able to tell you what amounts they will take.
3. Yes - Small buyers
4. I charge shipping to the customer, except with some minor exceptions.
5. If its green lumber the elements should not be a problem if being delivered in a timely manner.
6. Depends on your buyer.  All of the wood I have sold was not graded, yet I was able to explain to the customer what the grade was and I provide them a copy of the grading rules for there own benefit. Its an added touch that tells your customer you have there best interest in heart.
7.Dead stacked is how I have sold green lumber.

I by no means have sold enough lumber to say that my answers are the correct ones.  They are simply based on my experience.
Hope it helps.

ADfields

#1
If you say FOB my mill you are saying the price includes loading on a truck at your mill.   Freight on Board.   The term is used quite loosely today so it's good to be sure you and the buyer are on the same page with it.

#2
A load is 40,000 to 47,000 lbs including dunage to a trucker so that would be the upper end of it that will get the best shipping price.   You can ship less but it's more pre pound that way.

#5
Thats the truckers responsibility, he will tarp it or take the risk of damage himself.   Most outfits that wrap lifts in Tyveck (sp?) do that so they can save on their storage and sit it outside till the truck gets there.   I don't think it would be good to wrap green wood in plastic.  Tyveck will breath, stop most rain, is tuff and light, and is on the cheep side.

Thats the ones I can help with from what little I know.
Andy

Frickman

Are there any concentration yards/brokers in your area? A broker is not going to have the highest price, as they must make a living too, but they tend to buy various species in mixed and less than trailer loads. That's their business, combining different mills' lumber into larger loads. They will usually have a price sheet detailing what they're buying, the prices, and any special considerations, such as sorting for length. Until you develop your own customer base this can be a good way to move lumber. Of course direct sales to the end user are preferred, but not always possible. Even large mills use brokers occasionally.

Many if not most brokers will grade all the lumber coming in, whether it has been graded before or not. This allows small operations to sell ungraded lumber. We have a yard nearby that will buy well manufactured lumber from any mill, large or small. In fact, I've seen small bandsaw mill outfits hauling in half a bundle of cherry at a time. We move some lumber through them on occasion. Even though I grade some myself I sell it ungraded and allow them to tally the load. These guys are pretty honest with everyone so I don't worry about it too much. Selling a little to a concentration yard is a good way to get your feet wet and some experience under your belt.
If you're not broke down once in a while, you're not working hard enough

I'm not a hillbilly. I'm an "Appalachian American"

Retired  Conventional hand-felling logging operation with cable skidder and forwarder, Frick 01 handset sawmill

Pretend farmer when I have the time

Ron Wenrich

We sell primarily trailerload lots of green lumber.  We don't grade the lumber.  Usually it is graded on the other end, and we can telll whether we got a good grade or not.

Some buyers will truck the lumber, and for others, we have to truck it.  Some buyers pay for the trucking, some don't.

There are buyers for small lots.  But, usually, the lower end is about 1 Mbf.  I do have a guy with a small kiln that will take smaller amounts, but he wants something pretty specific.

I would start by contacting your state forestry office for a list of potential buyers.  They should have a list of secondary processors.  Visit the operations before you sell.  A lot of guys will give terms like 2% discount if payed before a certain amount of time.
Never under estimate the power of stupid people in large groups.

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