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what to charge??

Started by JamieT, February 21, 2014, 10:55:02 AM

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Brucer

Just had a call from a local lumberyard. The buyer had been at a trade show in Toronto and there were a lot of exhibits featuring rough-sawn timbers. The buyer complained to his boss that the sawyer supplying them was getting burned out and wasn't very reliable any more. His boss said, "My uncle has a sawmill. Why not call him when we get back."

So I quoted some prices. The guy gulped and told me what he had been paying. I asked if he was sure he was getting Douglas-Fir (because I new a little bit about their current supplier). I explained that they were paying about what it costs me just for the logs.

In the end I told the guy that I couldn't hope to compete on price, so I compete on quality instead. Now he want's to come and see my operation as soon as the snow melts ;D.

One thing I've learned in this area. Lumber yard personnel are pretty clueless about the species and grades they sell. They'll order a shipment of "fir", meaning Douglas-Fir (which isn't a true fir at all). Some sawyers will sell them Grand Fir, which is a lot weaker and a lot less decay resistant. If challenged, they'll say, "You asked for fir, that's what you got."

I suspect this guy won't be buying a whole lot from me, but I also suspect he's going to be paying a whole lot more than he used to for his wood.
Bruce    LT40HDG28 bandsaw
"Complex problems have simple, easy to understand wrong answers."

stumpy

Just remember, When you buy parts, fill up your gas tank, make a loan payment, buy new blades, repair your truck, repair your mill, none of those companies care weather you are a hobby or sawing for profit.  My point being, It costs money to do what we do. KNOW YOUR COSTS before you set your price.  Then you can decide if you're a business or a hobby.
Woodmizer LT30, NHL785 skidsteer, IH 444 tractor

JamieT

Glad yall got a laugh out of my 16 inch long boards lol. I felt like a tard after reading it. I went out last night and bought a ledger for ALL transactions pertaining to the mill. Thanks again fellas for ALL the tips and support!! I promise ill try to get some pics posted soon!
Learned just about everything I know, from the greatest man ive ever known. My father! Everything else was self taught thru the school of HARD KNOCKS ;-)

dboyt

It's good to keep your numbers straight!  Whenever a customer asks me how long I can cut lumber, I tell 'em "all day long, if it don't rain".  :D
Norwood MX34 Pro portable sawmill, 8N Ford, Lewis Winch

Magicman

You can always click the "Modify" button and correct a mistake.   :)
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

YellowHammer

Quote from: JamieT on February 25, 2014, 08:37:14 AM
I went out last night and bought a ledger for ALL transactions pertaining to the mill.
smiley_thumbsup

Another great "timesaver" mod to make is this...


 
Its a big clock mounted on the wall so that any time I'm running the mill, it's staring at me, so I don't forget what I'm doing.   Its mounted next to the sawdust shovel on the back wall.

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

Magicman

I am wondering how the clock is gonna help unless it is running backwards.   :D

What is that stuff in your lube jug?
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

YellowHammer

Quote from: Magicman on February 25, 2014, 01:53:06 PM
I am wondering how the clock is gonna help unless it is running backwards.   :D

What is that stuff in your lube jug?
Funny thing is that on really cold winter days the clock runs a little slow, and since I run a little slow in the cold too, it feels like I'm still keeping pace ;D

You have a good eye for detail. The stuff in my lube jug is the "Cotton Picker Spimdle Cleaner" that I use most of the time now.



Its a concentrated, non flammable, almost odorless, detergent and oil emulsion designed to tank mix with water and used by farmers for lubricating and cleaning organic buildup off delicate parts of heavy crop harvesting machinery.  So it works great as a band cleaner/lube and was shown to me by a WoodMizer Shootout Sawyer who had a jug of it in his service vehicle and says it was what he used.  A few glugs in the water tank, it mixes instantly with even cold water, and oils and cleans the bands great.  It has really been paying off now that I'm sharpening my own blades because they come off the mill spotless, shiny and lightly oiled.  I get it at my local Farmers Coop in 5 gallons jugs which last me about 4 months.
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

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