Finally selling some lumber, secrets to my sucess

[Kelvin]

Howdy all,

Well in the past i've been asking what others have done to keep their inventory moving and where and how they advertise.  Just wanted to pass along some things i've been doing that are probably obvious but i didn't give them enough time the first time i tried them to have them work out for me.

I run a LT40 E15 and a Nyle dry kiln.  I use to sell enough on the internet, QSWO and high grade lumber to make a business but when the economy flopped that all stopped dead in its tracks and i found that i had all my eggs in one basket for sales.  My local economy (michigan, 15% unemployment) has been in a depression for a couple of years and my town in particular is kind of a blue color place lacking in those artist types who like slabs, lumber in the bole and other specialty things that micro mills can make a business on.  For instance when i first started i tried to sell 16" wide 4/4 cherry for $1.50 locally with no interest.  The same lumber sold for $10 a bd ft on the internet readily.  So i've been stock piling an inventory waiting for the economy to come back (?) and not having very good money flow.  I finally needed room and started really using craigslist in my area to advertise some of my air dried stacks at a $1 bd ft 50/50 sel and No. 1 in oak, ash, maple elm and QS oak, cherry and walnut at $2  I figured this would be similiar to what i might get once they were kiln dried and graded but looked more enticing to the do it yourselfer.  It took awhile for word to get around but now i have folks driving from a couple of hours away at least once a week.  I have a lot more sales this spring then ever before and no shipping headaches with the internet sales.  I conserve my super high end material and have been actually getting some sales from these folks that drive in for the "specials"  nothing is selling for $10 a bd ft, but some things i've sold for $6 a bd ft sure helps out the bottom line.  Selling more for less and getting my name out there in the local community in a way that paying for advertising never would.  I even paid quite a bit to advertise in a national woodworking magazine this winter without one inquiry.

So, it seems pretty obvious but i just never got realistic about the prices for one.  Low grade stuff needs to be cheap and moved out.  Price based on what you have into the stuff.  Be realistic about what you would be willing to pay, and what others are charging.  Who is selling No. 3 or even No. 2?  Nobody but pallet guys.  I've been to other small mills when i've seen ads for QSWO for $1.50 a bd ft.  They have too much crap in there, so whats left is really $4 bd ft for what is any good.

Green lumber cheap, air dried a little more and graded kiln dried more still.  I'm still selling kiln dried lumber at 1/2 the local retail price but i bet they aren't selling anything much, and b/c the customer picks out his lumber at my place, and neither of us are official graders, they often will take No. 1 or No.2's that have a good face, where as a retail store has to follow the NHA grading rules of worst face.  I think this makes a big difference for a small mill operation.  If you sell Cherry for $3 bd ft select kiln dried, then they may take some boards to make up their order that have a clear face but knots on the back.  THis helps the small time bottom line and i may throw in planing or straight lining if they took more than a few.

Craigslist requires upkeep as your ad rapidly drops off the pages and people dont' look all the time.  I sell different "packages" in different locations around the area getting my name out.  It has taken over the local advertising from area papers, and best of all only takes time.  It really targets my users as well.  Small shops on a budget look on craigslist for tools and material all the time.  I've reduced my crappy inventory by selling bunks at $.50 a bd ft prepacked for sappy cherry, sappy walnut, narrow stock.  I've got room for the higher grades, some money, and i'm not loosing quality in the stuff i'm storing.

Just thought i'd pass this along for those in a similar boat.
Cheers
kelvin

[Sprucegum]

 8) Glad to see things are coming around for ya  8)

[sawmilllawyer]

Wow, change in attitude and latitude, much more enjoyable reading this post than the ones you made a few months ago. Good for you, Kelvin, persistence pays off. Now your surviving, next step is thriving. Uh, I have not made that one yet though. Congratulations. 

[WDH]

Good stuff!

I, too, have been selling a little wood on craigslist.  I get inquiries from all over the map.  Shipping is a royal pain like you pointed out. 

It is good to see things picking up for you!

[Meadows Miller]

Gday Kelvin

Its nice to see things are are picking up for you and your starting make a little more cash Mate  ;) ;D ;D ;D
I have a small pitcure hanging in the office that i look at almost every day that has this written under it  ;) Perservience There Is No Substitute For Hard Work . Its done the trick for me for years when ive had my bad days  ;) :D
I think we all just have to keep plugging away till we get there Mate im at the other end of the scale im mainly aiming a higher volume low value end of the market i struggle with production i can sell it its got a ready market but production is a real pita  ;) ;D :D

Have a Good One Mate

Reguards Chris

[DR Buck]

Glad things are working out for you Kelvin.    I know you've struggled there for a while.  I hope you continue to have success.  Then, when the economy does recover your name will be out there as the go-to-guy for lumber.   

Although I don't do the milling and lumber sales for my "survival" income, the cash it generates sure comes in handy.  I've not tried Craigslist for selling lumber yet.   It sounds like this is a good way to get advertising out for your product.  I'll have to give it a try myself.   First I need to sort out my inventory a little better.  I just purchased a second insulated sea container for storing the kiln dried stuff. 

[EmannVB]

I found my new mill on Craigslist.  I love it.  A good place to move your stuff, or buy others stuff.

[ARKANSAWYER]

  Repeat customers are the key now.  I keep a record in Quick Books of names and address info and what the sale was.  Then if I come across something special that they have bought before I give them a "heads up" call and see if they need any more.
  Also keep in mind this "green" building stuff going on.  Folks are looking for local sources to fil this need.   I have sold more to contractors this year then ever before.  If my wholesale markets were back with good prices I wouild be cutting a fat hog.
  Good to hear GOOD NEWS!

[Cedarman]

That's the way to hang in there Kelvin.  Good to here you are chipper!  Will you be telling stories at the piggieroast?

[pigman]

Kelvin, if you can't find your way to Harrison, I would be glad to stop by and show you the way north. :D

[old joe]

Kelvin

I'm glad to hear things are looking up.  My father always said"never quit,never give in,never give up"  I wonder when you and he met.???

Joe

[crtreedude]

Excellent Kevin. You found a way. You are now on the way to being successful!

It sure is easy to blame everyone else and the economy for failure, but isn't it a nice feeling when you find a solution to the problem?

[crtreedude]

Kelvin

I'm glad to hear things are looking up.  My father always said"never quit,never give in,never give up"  I wonder when you and he met.???

Joe

I don't know if I am too stubborn to quit, or too stupid. But there have been more than a few times when if I had quit, I would have missed out on the success. Sometimes the peak really is only a few more feet away. The challenge is knowing when you have a false peak, of course.

[Kelvin]

Thanks guys.  Hopefully my story might help some other guys who are in a similar boat.  hard to know what works and what doesn't.  I guess basically you have to keep lowering your price on your product until it sells well enough that you aren't swamped, and if the price is too low to make a living then that product is not in demand enough to support you and the sooner you know the sooner you can switch over to something else.  I wasn't willing to admit that the product i was making, kiln dried rough lumber, actual market value was so low, but it looks do able as long as i keep getting logs cheaply,
Thanks
kelvin

[old joe]

Kelvin

Pop also said "If the lumber won't sell, eat the frog!!!"

Joe

[campy]

Kelvin:

Keep it up.

Glad to hear you are rising above the very tough economy in MI.

We have heard stories about it from my neighbors family who are from there.

By the way,  where do you get your logs?

I seem to have trouble finding good logs.


Thanks for sharing.