Roughcut Lumber Prices

[joejeep]

Hey guys. Just having a little problem putting together a pricelist for my lumber.. Have been getting a lot of calls for lumber,,but now exactly sure about how to price it. Maybe if I set up a scenario you guys could give me a list of prices you would charge in my case???       I have a full time job, and mill on the side. I get all of my wood for free. The types of trees I have dropped off include, pine, red oak, white oak, cedar, black walnut, maple, and cherry. Lumber will be stacked, and air dried. My mill and all support equipment is payed off.   What would you guys charge in my situation? Thanks

[jdtuttle]

In NY I look on the DEC website for stumpage price, add .35 per bf for sawing.
Example, pine is 300 per 1000bf stumpage. I add 100 per 1000 + 350 per 1000 to saw. That = 750 per 1000 or .75 per bf. Hope I'm not confusing you.

[FarmingSawyer]

Good advise jdtuttle..... I'd also add, it can be helpful to call around to mills in your area that saw rough cut material and get a feel for what they're charging. Also stop in at lumber yards and do a little "shopping". It's good to be right in there with price, perhaps on the low side even as long as it covers your costs and gets you what you need.  Be wary of cutting deals though....people seem to think that just because it comes from a little guy it should somehow be cheaper. Especially the pieces they can't get anywhere else.....

[Ron Wenrich]

In the hardwoods, a lot depends on the grade.  Also, a lot depends on the end use.  I did some pricing in NJ, in and around the big city.  You're not that far away.  We sawed some 2x10 low grade and got $800/mbf.  It was around 60 Mbf.  That was a volume discount.  The best price I've ever gotten was $5.25/bf for some green white oak that we delivered to NYC.  It was a specialty cut that no one else wanted to supply.

When things started to get into the higher grades, the prices went up rapidly.   When you add value, such as making stakes for construction, you can get some pretty good prices.  It's not a one size fits all when it comes to pricing. 

What I would charge is what everyone else in the area is charging.  Maybe a little less if you're hungry for work. 

[FarmingSawyer]

I happened to find myself in a big box lumber store today pricing a project, so I took some time to peruse the lumber stacks.
Here's what I found.
Framing lumber
2x4x10-- $4.19 each or $.62/bf
2x6x10--$6.46 each or $.64/bf
Now I didn't pick through the stack, but I didn't see a straight piece and there was more wane than in Wayne's World..... I woulnd't hesitate to charge $.75--$1.00 for my rough sawn spruce compared to what I saw.

S4S Pine
1x6x6--$14.94 or $4.86/bf
1x8x8--$20.92 or $3.94/bf
Both were #2
1x12x10--$20.62 or $2.06/bf
Common.
Granted it was dressed and kiln dried, but my price of $.75/bf is well within reason for similar rough cut lumber and I wouldn't hesitate to charge $1.00/bf for clear #1 or better.

S4S Poplar
1x6--$2.38/LF or $1.19/bf
1x8--$2.99/LF or $2.09/bf
1x10--$4.35/LF or $3.48/bf
These were random length...nothing more than 6ft and heavily colored green and purple. Nothing spectacular.

S4S Oak
1x6--$3.66/LF or $1.83/bf
1x8--$5.25/LF or $3.65/bf
Nothing special here. Clear, but short pieces. Kiln dried. Plain figure. I'd say the 1x6 is worth picking through the stack for nice boards.....

S4S EWC Cedar
1x4x6--$4.47 each or $1.94/bf
1x6x6--$7.75 each or $2.58/bf
1x6x8--$10.27 each or $2.56/bf
Short pieces. Dressed. Clear. There wasn't much choice. My price of $1.50/bf for Rough, clear seems reasonable for 8ft plus.

Not that I'm into competing with the big box stores or local lumber yards, but it is nice to know what my potential customers might pay if they were to go there instead of call me. I can also counter any dissension of my prices with a little fact.....

[joejeep]

Thanks FarmingSawyer, that is exactly what I wanted to see...other members price lists. Not that I am going to copy your prices,,,we don't have access to all of the same wood types, but figure if I can get a few price lists...I can figure a price that is worth my while .

[Dave Shepard]

I happened to find myself in a big box lumber store today pricing a project, so I took some time to peruse the lumber stacks.
Here's what I found.
Framing lumber
2x4x10-- $4.19 each or $.62/bf
2x6x10--$6.46 each or $.64/bf
Now I didn't pick through the stack, but I didn't see a straight piece and there was more wane than in Wayne's World..... I woulnd't hesitate to charge $.75--$1.00 for my rough sawn spruce compared to what I saw.

S4S Pine
1x6x6--$14.94 or $4.86/bf   $4.98/bf
1x8x8--$20.92 or $3.94/bf
Both were #2
1x12x10--$20.62 or $2.06/bf
Common.
Granted it was dressed and kiln dried, but my price of $.75/bf is well within reason for similar rough cut lumber and I wouldn't hesitate to charge $1.00/bf for clear #1 or better.

S4S Poplar
1x6--$2.38/LF or $1.19/bf  $4.76/bf
1x8--$2.99/LF or $2.09/bf  $4.48/bf
1x10--$4.35/LF or $3.48/bf  $5.08/bf
These were random length...nothing more than 6ft and heavily colored green and purple. Nothing spectacular.

S4S Oak
1x6--$3.66/LF or $1.83/bf   $7.32/bf
1x8--$5.25/LF or $3.65/bf   $7.88/bf
Nothing special here. Clear, but short pieces. Kiln dried. Plain figure. I'd say the 1x6 is worth picking through the stack for nice boards.....

S4S EWC Cedar
1x4x6--$4.47 each or $1.94/bf  $2.24/bf
1x6x6--$7.75 each or $2.58/bf   
1x6x8--$10.27 each or $2.56/bf
Short pieces. Dressed. Clear. There wasn't much choice. My price of $1.50/bf for Rough, clear seems reasonable for 8ft plus.

Not that I'm into competing with the big box stores or local lumber yards, but it is nice to know what my potential customers might pay if they were to go there instead of call me. I can also counter any dissension of my prices with a little fact.....

Corrections in red.

I gave up looking at lumber in the box stores years ago. Around here, the hardwoods are all clear at least on one face, and priced so high it's crazy. I don't know what they are doing with all of the lower grades of boards. A good wood worker knows that they can buy a lower grade board and take clear cuttings and save a bundle. Unless you are running some moldings, you usually don't need 12' long clear hardwood lumber.

The softwood, white pine around here, can vary. Sometimes they had some nice clear stuff, some times it had traction marks on the back from some sort of automated machinery. The No.2 stuff was rustic, to put it politely. :D

All of the lumber piles, from construction to S4S, needed a thorough sorting to weed out the warped, damaged and otherwise defective product. I think if one had a way to show the average box store customer what was available, they would never buy any lumber there again. But then, a lot of people want one stop shopping.

[FarmingSawyer]

Corrections in red.

Ooops....guess I divided when I should have multiplied....that's what I get for trying to calculate on a scrap of paper, eat a sandwich and type......

[joejeep]

Was that all rough lumber prices?  Green? Air dried? Thank you again for your response, and your time.

[Brucer]

• You need to pay yourself a decent wage (at least while you're sawing -- bookkeeping is free ;D).
• You need to recover the expenses for operating and maintaining your mill (fuel, parts, lubricants, blade sharpening, etc.)
• You need to recover at least some of the depreciation on your mill.
• You need to assume you will have to buy logs someday, and charge appropriately now.

If you don't do all of the above, your prices will be way too low; you will attract more customers than you want; you will saw your free logs faster than they can be delivered; you will want to upgrade your mill or buy support equipment. This will force you to charge more, which will reduce the demand for your product.

[Alligator]

Price your lumber as if you paid a reasonable price for the logs. You may not always have free logs, but your customers will expect your lumber to maintain a fairly consistent price, and as previously stated don't give your time, or mill expenses away. If you are dealing with  someone that donated logs be a bit more generous. (Not hard numbers but good business theory)

[so il logger]

around my area plain blocking logs go for 30cnt a ft by doyle scale. Of course grade is higher up to 1.00 on white oak saw logs. You just hafta adjust your price to figure some profit at the same time not out pricing yourself

[FarmingSawyer]

Was that all rough lumber prices?  Green? Air dried? Thank you again for your response, and your time.

Those were big box prices for kiln dried, surfaced material. MY prices in the comments below are for green/air-dried for framing lumber and air-dried for everything else.

[Lewisman]

Do not saw and sell lumber based upon what others are doing, especially a big box store.  An "apples to apples" comparison usually isn't possible.  Specialty products must receive appropriate pricing.  And most importantly, specialty skill/knowledge and the ability to operate specialty equipment must be priced appropriately.

One sidenote, customers who wish to sort through an entire stack of lumber for one or two super select pieces waste time and don't make me any money.  There's a fine line between customer service and being taken advantage of.

[joejeep]

I never try to compete with box store prices. I was more looking for other members price lists.

[FarmingSawyer]

You don't need to compete with box store prices, but you do need to know what they are and what they sell to make informed choices for your own market. Not only that, but I get box store prices thrown in my face by customers all the time. You have to be able to counter. Most people are easily tricked by the LF vs BF conundrum.... They see the low low price and don't figure the reality of it. It is extra work for sure, but I constantly have to educate customers--both lumber and mobile milling--about lumber value. It's the same as knowing log prices and stumpage in your area even if you don't buy, sell or harvest logs. Wood is a commodity and we, in one way or another, are commodity "traders". The more of the picture we see, the better view we have and the better resource we are for those who use our services.

The other thing is, I could share with you my price list, but in large part it would be meaningless. My log prices are different, taxes, insurance rates, operating costs, etc. What works for me, at best would be a ballpark for anyone else in another area. Which is why I originally suggested doing what I do. Make up a fictitious lumber order and call several mills that do rough sawn--in your area--and get some prices, see if they cut what you cut. I found it not only helped me focus in on my own rates, but also highlighted some opportunities to offer material they didn't.