How much for salvaged old growth?

[urbanlumberinc]

I may have an oppoptunity to get my hands on some salvaged Doug. Fir and P.O. Cedar.  My question is, realistically, how much can I expect to get for the stuff, and what use or market for it will fetch the highest return on investment?  I'm still trying to work out my cost for the stuff including freight and such.  I just wanna make sure I don't pay too much
Any help is appreciated

[extrapolate85]

Is this lumber, timbers, or logs? Regardless, one would want to buy based on grade. Old growth does not mean that it is of high quality, it can just as easily be rotten, full of shake, cross-grained, knotty, etc. POC logs are the most valuable softwood logs in the US, with good grade logs selling for as much $10,000 per mbf in the export yards. Need to know more about what your getting...

[urbanlumberinc]

these will be salvaged beams from a warehouse. 

[rebocardo]

> what use or market for it will fetch the highest return on investment?

With character, flooring, $4-$8 a linear foot.

[extrapolate85]

New DF beams sell for around $700/M at the mill sight in my area (with higher prices for bigger longer beams). I can't imagine that POC beam would have a significantly different value than DF, assuming comparable quality (the high value of POC is with the Japanese, it is not so coveted in the US despite its rarity). Salvaged beams are considered somewhat fashionable these days for custom homes amongst the wealthy "green oriented", but the rest of the populous won't care whether salvaged or for that matter whether it is from old-growth. A lot of the companies selling reclaimed beams and timbers want much more than new. I don't see that these are worth anymore than new, but that is a personal opinion. If you would like the name of a beam and timber mill in your area, I probably have some.

[Ron Wenrich]

Instead of fishing around for a price, why not figure out what its worth to you?  Are the beams removed?  How long will it take to remove the metal and saw?  What's your costs?

Raw material value = Finished value - mfg expenses - profit.

If your want to have a profit of a fixed percentage, then

Raw material value = (Finished value - mfg expenses)*(1+profit %)  where profit% is expressed in as a decimal.

Flooring markets are pretty lucrative in the old plank styling.  As long as you know the value of the flooring at your shop, then you should be able to figure out how much it costs to make.  Don't forget to throw in a factor for your waste.

[Ironwood]

urbanlumberinc,

I volunteer for a non profit building material warehouse in Pittsburgh. They have a 80,000 sq  ft warehouse and a annual sales figure approaching 3/4 of a million. I am the guy on the Board with the most "wood" knowlege and help with marketing and pricing. The large flooring Co.s spend tens of thousands on GOOD marketing materials and market development. I just recieved a reallly slick quarterly newsletter from Mountain Lumber in Va. (www.mountainlumber.com). Companies like this focus on cultivating top shelf markets with architects and designers, and the volume and short turn around times for these clients give them a seriuos edge. Addtionally, good consistant quality of material. There are new entrants into this market all the time. Remeber the guy with the market is ultimately king. Their hard work into creating market awareness and acceptability of recycled/ reused materail will help you sell your product but you also need to be aware of the degree to which they have invested in their image and product. You will not likely get the same retail price as they do, but you don't have the same cost structure (you aren't paying for slick market material and development) so you can probably accept less. I like Ron's approach and he always seems to have good business sense. Know your costs (inclusive) and work from there, quick nickle of long dime. Good luck, everything has market at some price point.

Reid