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How to price

Started by Kowboy, December 23, 2014, 11:53:05 AM

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Kowboy

Hello all! Hope everyone is doing good. I have a question on pricing. How much more does one charge for sawing your own trees for a customer verses sawing their trees they bring you? Thanks in advance.

Ianab

Separate the two things out.  The logs, and the sawing. Then price those individually.

How much do the logs owe you, and how much could you sell them for? Even if they have no "commercial" value because of local market conditions, they still have a cost. You spent time and money harvesting them. So if someone arrived at your yard, and just wanted to buy that stack of logs, how much?

Then sawing can be priced by the hour, or bd/ft depending on deal. The two are related, but a different way of adding things up. So if someone turned up with a stack of logs, and wanted them sawn, how much?

So if they want you to saw your logs to their spec, they basically buy the logs, and pay for the sawing.
Weekend warrior, Peterson JP test pilot, Dolmar 7900 and Stihl MS310 saws and  the usual collection of power tools :)

shortlogger

I usually charge about the same for the timber as I do the sawing sometimes a little less but I have a abundance of free pine close to my mill . Hardwood and cedar are a bit higher sense they are harder to come by and harder to log
1 Corinthians 3:7 So then neither he who plants is anything, nor he who waters, but God who gives the increase . "NKJV"

CCC4

Exactly! You are going to get to sell your logs "and" get paid for sawing them.

Dave Shepard

Is the customer going to take all products generated from the log, or just specific parts? Personally, I would set a price on the product, and just sell product. If they are going to take mill run of the whole log, then you could sell the the logs by the thousand, and then charge your normal rate to saw what is now their logs.
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Ianab

Quote from: Dave Shepard on December 23, 2014, 02:23:23 PM
Is the customer going to take all products generated from the log, or just specific parts? Personally, I would set a price on the product, and just sell product. If they are going to take mill run of the whole log, then you could sell the the logs by the thousand, and then charge your normal rate to saw what is now their logs.

That's true if you are selling "product". But you still want to work out your costs the same way. Log costs + sawing costs + some profit  = what you need sell all the combined products for.
Weekend warrior, Peterson JP test pilot, Dolmar 7900 and Stihl MS310 saws and  the usual collection of power tools :)

Kowboy

Lot of good points. This forum is a very good place to be. Thank you all for your help.

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