Kiln charges..

[Kedwards]

I was wondering whether kiln operators here charge the same price per board foot for green and air dried stock.

I have been kiln drying wood for about 7 years, but lately people have been asking me to dry their stock and complaining about my costs (.45/bf) when I tell them the costs.  My kiln stays pretty full, but I supplement with kiln time from others from time to time.

Thanks

[fireman05]

Im charging $.30/ft for hardwoods and $.20/ft for softwoods.  No discount based on initial MC.  I'm actually looking @ increasing my rates a bit due to the cost of electricity going up a bit.  I've had my Nyle L200 for almost 5 years and it's been full since I bought it. 
The only time it is down is during elk/whitetail hunting seasons (Sept/Oct) by operator's choice!!!!

[Ironwood]

I tell them go elsewhere unless they want to load it and come back and unload it when it is done, and I'd still charge them the .45 cent, tell them your recent price increase is due everything else it costs you to do business. (I hate people who complain)

Ironwood

[red oaks lumber]

we've had this discussion earlier...
i charge .20/ bf  i won't dry green wood...........

[Den Socling]

I usually prefer to charge by the day. This way the cost is automatically adjusted for green or predried. Also, the cost is the same for a full charge or partial charge.

[Kedwards]

Den,

This discussion is more of a refresher/market pulse for me rather than a new discussion. As this was discussed in 2009 on this forum. I do believe market dynamics have changed and was wondering if outfits like Red oak is still in business at .20/bf.

https://forestryforum.com/board/index.php/topic,39231.0.html

I was charging .50-.60/bf but lowered my rate to .45/bf no difference for green or air dried.

My electric cost for the northland 3k is around $10/day full, half full or empty.

Stickering takes 2 hours tops when loading.
Sample weighing and inspection -10 minutes a day

7 hours total.

My COST is .26/bf including the labor.

Depreciation/profit/taxes/ROI is at LEAST worth .20/bf or I might as well not even dry the wood.

In fact I believe I will raise my price.

Kyle

[red oaks lumber]

kedwards,
still in buisness in fact have expanded in 2010.
give you an example today loaded the kiln with 11,333 bf. total change time 25 min. on monday the load will be done ready to be changed again.my kiln electric cost per month is $800 weahter i dry 5,000 b.f of 80,000 b.f. all of my fixed costs are still there,.
maybe you need to become more labor efficiant, which will drop your costs.

[Kedwards]

Well good Red Oak. You have economies of scale working for you and in a different segment of the market. I sent someone recently to a larger outfit because they were wanting me to lower my kiln drying cost to .15/bf similar to a large outfit south of mine and I said to haul it to them.

As for being labor efficient, its just me so I don't have to pay anyone but myself. My kiln handles 2400 bf and costs 300/ month to dry from green.

I re-read Scott's analysis and agree 100% with him. You may be making good money and at a profit, just perhaps not maximizing profit.  Even a nickel would increase profits dramatically.

Good luck.

[Den Socling]

Kyle,

This discussion has not only been repeated here but at other forums as well. It's just one of those things that most of us are always wondering about.

Den

[Kansas]

We charge 40 cents a board foot. We usually air dry for at least a month before going in the kiln. Given the nature of some of the logs that we custom cut, or what lumber they drag in, that is not overcharging. We do it, but really don't promote it.