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how to charge

Started by craigc90, December 21, 2003, 05:44:03 PM

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craigc90

I have never had a custom job yet just cutting for myself. I have a guy lined up to cut a few logs by the board foot when the weather gets warmer. Today a friend of mine asked me how much I would charge to square some pine logs on 3 sides for a cabin project. Does anyone have any thoughts on what is fair in this case. You still have all the handling time but if you charge by the board foot would you charge for the 3 outside cuts and figure them as 3 boards. Maybe by the job or by the hour would be better.

Tom

Craig,
You could scale the logs or estimate the board footage or charge by the piece but htis sounds like a good chance to charge by the hour. I seldom do but charge $50 an hour when I do.


cluckerplucker

Creig.   I concure charge by the hour .I saw,run a tractor ,loader,dump truck and I charge 40 an hour any time I have a machine running.no one gives away machinary and the fuel and maintaince to operate them.  cecil
cecil

ARKANSAWYER

Craig,
  Figure out what you normally cut in an hour in bdftage and multply that by what you want to charge for the bdft.  That will be your hourly charge.   I saw on average 200 to 250 bdft an hour and get $0.20 bdft to saw.  So I charge $40.00 per hour to saw.  I saw "D" logs like that by the hour and let the people know that the faster they can get them on the mill the better deal they will get.   One thing to consider since all you will be cutting is bark your blade life will be poor and if you do not have a debarker there had better be an understanding on damaged blades.  Just something to think about.
ARKANSAWYER
ARKANSAWYER

Wes

I saw by the hr[ $50.] unless the customer insists on bf.

Neil_B

Haven't figured out my hourly yet but I would expect $40 - 50 would be a good range.
Timberwolf / TimberPro sawmill, Woodmizer edger, both with Kubota diesels. '92 Massey Ferguson 50H backhoe, '92 Ford F450 with 14' dump/ flatbed and of course an '88 GMC 3500 pickup.

Wes

 The local garage charges $75.hr for labor, I think $40-$50 is a good deal.

craigc90

That is a good point Wes. I work as a tech at a GM dealer we charge $59.95 an hour and on the first it goes up to $65.00 an hour.   My only problem with charging by the hour is I am new at this and the mill is a manual fed bandsaw with auto trim and loader and roller. if it was an auto feed mill with return they would be getting a deal by the hour.I am still going to tell him by the hour plus setup charge. There isn't anybody local custom sawing on location. If I would get off my but there is alot of work around the area.

Wes

 There doesnt seem to be any set method of pricing for the portable sawing buisness, you definately have to figure out your production rates to be fair to your customers,
 When we had our LT-15 I would only do small jobs at our house, it was a hobby then. I could make more money in a day doing side work for the local tree service than on the mill. I couldnt charge what I needed for my time.
 You can always adjust your rates if they dont seem to be working out.

Tom

Ask yourself:
"If I charge X amount, how much will that board cost?"
"Would I be willing to pay that much for it?"  
"Can I cut enough of them fast enough to make a decent hourly wage?"

When you put yourself in your customers shoes it makes it easier. :)

craigc90

Tom
  That is the way I think about it also. This mill I own is second hand. My Dad and my brother bought it for a specfic use. Sawing salvaged barn timbers into historical first growth lumber and flooring. Well it turned into more labor intensive then I think they anticipated. I was talking to my brother one day and he thought he would start cutom sawing for Xamount of dollars or cents a foot. He said he gave a guy a price on a custom job. The guy figured it up and said he could go buy the lumber at Lowes cheaper. Ha Ha Then the mill just sat around for a year uncovered rusting away while my dad made payments on it. Thats when it made its way to my farm. To see if I could make a go of it. I have enough logs laying in my yard ready to mill to keep me busy for a while. I am not looking for custom work it is looking for me. One friend tells another hey Craig has a bandmill next thing you know people are calling can you cut for me.

ARKANSAWYER

Craig,
  It is like Kudzu that way and there is not way to stop it but price yourself out of business or do such a loosly job they but the bad mouth on you.  Ease in slow and keep asking.  Soon you maybe looking at a new Super mill to keep up with demand.
ARKANSAWYER
ARKANSAWYER

EZ

I charge only by the BF, unless the customer wants me to charge by the hour and that only happen once. I charge him $30.00 an hr cause my mill is all manual. I work my butt off cause I kinda thought I was getting the better part of the deal. All and all he was very happy when I finished.
I charge 20 cents a BF, anything over 20 miles I charge an extra $1.00 a mile. If they load the logs on the mill for me I charge 15 cents BF.
Of coarse there are some folks that try to pull my leg and say, 20 cents a BF :o theres a guy down the road only charges 12 cents or 8 cents. I had one guy that told me 5 1/2 cents a BF. ::) I always tell them thats my rate, I guess you better call them. Most of the time they call back and say , that guy that was alot cheaper then you dont saw any more. ::)
EZ

Fla._Deadheader

We haven't gotten into Custom Sawing a lot, yet. When we do, we charge .35 put on your trailer.
  We just did 7 Oak logs for a customer that wanted them sawn through and through. "I'll get more for the money" was his reply ::) ???  We did not edge and we threw in all the stickers he would need from another pile. Sold him a Cypress log, sawn, for $200.00 and backed off our original charge by $50.00.  He went home very pleased and says he has some Pine coming that he wants sawn?

  A lot of guys here use the customer as labor. We feel that we have a system, and without a power log turner, we do pretty well by ourselves. We keep the customer away from the mill and get the job done.

  Of course, our situation right now doesn't hinge on custom sawing, and the only other mill close by gets .20 cents. You haul the logs, you fetch the lumber, when he gets around to sawing your logs.
  We put your logs as close to "next in line" as possible and handle everything on the yard. Is it expensive??? Could be. Is it worthwhile to the customer??? So far, only 1 guy is "thinking" about it.

  Tom tried to get us to consider the customer, just as he explained above. There might be a time when we saw a log for free. Depends on the situation, but, I would NOT charge less than .25 OR $ 55.00 per hour, if I can make the same or better money doing something else. ::) ;D
All truth passes through three stages:
   First, it is ridiculed;
   Second, it is violently opposed; and
   Third, it is accepted as self-evident.

-- Arthur Schopenhauer (1788-1860)

RevCant

There is a difference between portable custom sawing and stationary sawing.  In portable custom sawing, the sawyer is saving the customer the effort and expense of moving, loading, and hauling the logs, and then hauling and stacking the sawn lumber.  The portable custom sawyer walks into a different situation each time he (she) sets up assumes a certain amount of risk in travel and on-site liability.  

A stationary set-up allows an operator to take advantage of labor-saving devices like rollers, forklifts, a roof over the head, and a set pattern for the flow of work.  The portable operator forgoes many of these things.  For many years I relied on customer labor to do offbearing, help load logs, etc.  Now I have hired a helper.  In the long run, it is easier.

For these reasons, I always charge by the hour.  I charge a fee to set-up, and then an hourly rate from the time I arrive to the time I'm packed up ($50/40).  This protects me from the variances of the customer and his logs.  I'm in business for the long haul.  I'm interested in being in business 10 years from now, not just next week.  If you do good work, show consideration for what the customer wants, and handle your business with integrity, work will come your way.

It is probably a lot harder to charge by the hour with a manual band mill.  I understand a lot of guys are doing this as a hobby and charge ridiculously low rates for sawing.  Okay.  We all have to start somewhere.  
If cows could only tail....

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