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Might Be Time For a Pricing Change

Started by DR Buck, April 14, 2014, 11:40:56 PM

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DR Buck

I haven't made any changes in how I price jobs for at least 6 or 7 years.   Almost all of my jobs are done at a board foot rate of 35¢.  I get 60¢ a board foot for kiln drying.    On the rare occasions when I charge hourly to mill, I charge $65 per hour.

This past Saturday I did 3 different smaller jobs that were brought here to me  at the farm.   Everyone of them was short logs.  :-\     I couldn't use the log lift because they were shorter than the span of the arms.   After fooling around getting each of them on the mill, I then had to mess with using backer boards when I lowered the backstops so they wouldn't fall off the backside of the mill.

I like using board foot rates because $65 per hour sounds like a lot of money to some people and shakes them up a bit.  Whereas,  35¢ sounds real cheap.   :D    So with this in mind, I think I am going to start charging 70¢ a board foot for all logs under 6 feet in length.   ;D     

I might not make anymore money, but I will sure feel better about sawing shorter logs.  :)
Been there, done that.   Never got caught [/b]
Retired and not doing much anymore and still not getting caught

POSTON WIDEHEAD

Ya never know unless you try it.
Good post. Can't wait for more replies.
The older I get I wish my body could Re-Gen.

Tom the Sawyer

DR_Buck,

Shorts and small diameters really put a dent in your efficiency and I agree that it is appropriate to charge differently for them.  When I did an analysis of my efficiency with various log sizes I found that productivity slowed down when the logs were shorter than 6' (my loading arms are 63" apart) or less than 10" in diameter.  Although it isn't an absolute rule, generally that is when I switch from bf rates to hourly ($60).

Balancing short logs on a single arm may work for smaller ones (if you have a helper) but I ended up welding up a grid of angle iron and square tubing that I attach to the arms when I have several short logs to mill.  It takes a few minutes to put it on the arms, and it interferes with pulling boards from that side of the mill, but is much safer and saves a lot of time if you have several to load.
07 TK B-20, Custom log arch, 20' trailer w/log loading arch, F350 flatbed dually dump.  Piggy-back forklift.  LS tractor w/FEL, Bobcat S250 w/grapple, Stihl 025C 16", Husky 372XP 24/30" bars, Grizzly 20" planer, Nyle L200M DH kiln.
If you call and my wife says, "He's sawin logs", I ain't snoring.

YellowHammer

I also have a price break at less than 10 inches diameter and/or less than 8 feet long.  I upcharge to 75 cents per Bdft which comes out to just about $75 per hour due to the decrease in efficiency, which is what I used to charge for these runts anyway.  Having a price jump really motivates the customer to "cut em long and big" and most folks make it a point to meet the minimums the next time they bring logs.
YH
YellowHammerisms:

Take steps to save steps.

If it won't roll, its not a log; it's still a tree.  Sawmills cut logs, not trees.

Kiln drying wood: When the cookies are burned, they're burned, and you can't fix them.

Sawing is fun for the first couple million boards.

Be smarter than the sawdust

JustinW_NZ

Do you find it annoying with the other way around with lots of massive timber?
Both width and length?

I keep getting full length logs and find you have so little room to get them centred on the bed and when there big logs even with the hydraulic toe board rollers they can be a pain to centre up.

I only charge by the hour for work (machine hour), so its not all bad, but still sucks time messing around with these things.

Cheers
Justin
Gear I run;
Woodmizer LT40 Super, Treefarmer C4D, 10ton wheel loader.

Ianab

I think it's fair that any "non-standard" work gets done at an hourly rate, not a bd/ft rate.

Logs that a too small, too big, too short, too long, too bent, too rotten etc.

Otherwise you are sawing for 1/2 pay, and double aggravation. On an hourly rate, you still have the aggravation, but at least you can comfort yourself with the thought that you are being paid for it.  :D

Ian
Weekend warrior, Peterson JP test pilot, Dolmar 7900 and Stihl MS310 saws and  the usual collection of power tools :)

backwoods sawyer

I set my bft rate then set my hourly rate to equel my average bft rate. works for small or over sized logs.
Lay a 2x6 on the loading arm to load a short log ;)
Backwoods Custom Milling Inc.
100% portable. . Oregons largest portable sawmill service, serving all of Oregon, from our Backwoods to yours..sawing since 1991

Brucer

First-time customers often prefer a price per BF because they have an idea of how much they're going to have to pay.

I have a two-tiered pricing system when I saw the customer's wood. They know in advance what the BF rate will be, and can decide whether or not they want the job done.

I'm going to have to raise my timber prices. My log supplier just increased his prices by 12%. Mind you, that's the first increase in 6 years so I can't really complain. I knew it was going to happen one of these years.
Bruce    LT40HDG28 bandsaw
"Complex problems have simple, easy to understand wrong answers."

red oaks lumber

 small logs, big logs, crooked logs, dirty logs, these are all common if your in the sawing business it comes with the territory. hey, if your customer will pay over .60 b.f. for sawing . good for you
the experts think i do things wrong
over 18 million b.f. processed and 7341 happy customers i disagree

Magicman

If/when I saw shorts by the bf, they are always scaled as 8'.  I normally charge my hourly rate of $60 for irregular or nonstandard sawing.
Knothole Sawmill, LLC     '98 Wood-Mizer LT40SuperHydraulic   WM Million BF Club Member   WM Pro Sawyer Network

It's Weird being the Same Age as Old People

Never allow your "need" to make money to exceed your "desire" to provide quality service.....The Magicman

Larry

I don't enjoy sawing junk and no amount of money would change my attitude.  I've learned to just say no.  Eventually they get the idea.  If they spread the word that I don't saw junk, I consider that a bonus.
Larry, making useful and beautiful things out of the most environmental friendly material on the planet.

We need to insure our customers understand the importance of our craft.

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