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Mobile Chainsaw milling pricing

Started by Upstatewoodchuc, July 26, 2018, 10:08:10 AM

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Upstatewoodchuc

Alright guys, it's been a while since I've been on, super busy the last couple weeks, but I have some questions. I definitely think I've shot myself in the foot on a couple milling jobs and would like some better ideas on pricing. I did a couple where I quoted the customer a flat rate for the job which was somewhat stupid, but also hard to compare to because I worked some of the lumber proceeds into the job for my own personal use. Then I tried the hourly thing, but if I have something stupid happen like my recoil break on the saw or ignition coil take a dump and I have to tinker, the customer doesn't like when you're being paid to not saw. Now I'm trying to figure out a fair rate per board foot, the only other guy I've seen advertise mobile chainsaw milling in my area (upstate NY) charges $1.25 a board foot no matter what it is and $65 if he hits metal. Keep in mind I tell my customers that although I will saw dimensional lumber for them, it's not the best use of my services, most of the stuff I have done is slabs or big timbers, I can cut up to 60" diameter so it's kind of a niche market. Please give me some ballpark figures on what you've seen charged, also does the rate go up once you're over 30" since the bandmill guys can't really touch it? Thanks alot, Pat.
Current collection: Husky 3120xp,  372xp, 365, husky 55, homelite xl12. Michigan 85 wheel loader, Ford 8n with loader and forks. Farmall super C, 1988 international dump truck, John Deere 440ICD dozer, 19ft equipment trailer, 40 ton TSC splitter, modified dieder splitter with 4 way.

ladylake

 

I charge by the hour and sure don't charge for downtime unless its only 5 minutes.   Steve
Timberking B20  18000  hours +  Case75xt grapple + forks+8" snow bucket + dirt bucket   770 Oliver   Lots(too many) of chainsaws, Like the Echo saws and the Stihl and Husky     W5  Case loader   1  trailers  Wright sharpener     Suffolk  setter Volvo MCT125c skid loader

Southside

Can't really compare band mill rates to CSM rates, but at $1.25/bf I am going to move to NY and undercut your competition and charge a bargain $1.00/bf!! 
Franklin buncher and skidder
JD Processor
Woodmizer LT Super 70 and LT35 sawmill, KD250 kiln, BMS 250 sharpener and setter
Riehl Edger
Woodmaster 725 and 4000 planner and moulder
Enough cows to ensure there is no spare time.
White Oak Meadows

Upstatewoodchuc

Thanks for the input guys! And Southside, that's exactly what I was thinking, I'm seriously wondering how much business that guy does at that rate, if you're slabbing a 5ft diameter log at 3" and 10' long, there's 150bdft in just the middle slice, at that $1.25 rate, that makes just that one cut a $187.50 cut  :) perhaps I'm not as good of a salesman, but I don't know what I'd have to do to lock down a job at that rate lol
Current collection: Husky 3120xp,  372xp, 365, husky 55, homelite xl12. Michigan 85 wheel loader, Ford 8n with loader and forks. Farmall super C, 1988 international dump truck, John Deere 440ICD dozer, 19ft equipment trailer, 40 ton TSC splitter, modified dieder splitter with 4 way.

Tom the Sawyer

Although I operate a bandsaw mill, sometimes I have logs that are too big for my mill, and the client is hoping for extra wide, live-edge, flitches, so I have someone with a chainsaw mill who will come to my place to mill those big logs.  

When considering how to charge someone for your services, probably your first determination is whether it is a hobby or a business.  If a business, it is important to know what your costs are, and what you want to earn for your time (and investment in the equipment).  Keeping accurate records of everything will help you understand what it really costs.  Amortization of equipment (chainsaws, bars, chains, mill frames, your vehicle and/or site costs), expendables, insurance, taxes, etc.  

Charging by the board foot has variables; with two irregular edges and taper, and every one a different size, calculating board feet may be a challenge.  A 12/4 flitch that averages 4' wide and 10' long contains a lot of board feet (120).  If it takes 90 seconds per foot to mill (15 minutes each), that would be a rate of 480 bf per hour - but I seriously doubt you could do four of them in an hour.  It will take you essentially the same time to make each pass, whether the client wants 8/4, 12/4, or 16/4, but the footage varies considerably.  In my experience, at 12/4, 100-125 bf/hr would be a more reasonable expectation - over the course of entire job.  

Hourly seems more reasonable for chainsaw milling.  Although I would never charge someone for breakdown/maintenance time on my equipment (their clock running while I was fixing my equipment), maintenance is a normal part of equipment use and should be figured in as a cost of operation.  The exception would be if the damage or maintenance was caused by the client's log (usually metal contamination).

What someone else charges has little bearing on what you should charge.  Sizes of saws, single or double head, independent external frame mills (Lucas or Peterson) or dependent frame mills (Alaskan/Granberg), insured/uninsured; all variables to consider - but knowing your costs sets the foundation.


07 TK B-20, Custom log arch, 20' trailer w/log loading arch, F350 flatbed dually dump.  Piggy-back forklift.  LS tractor w/FEL, Bobcat S250 w/grapple, Stihl 025C 16", Husky 372XP 24/30" bars, Grizzly 20" planer, Nyle L200M DH kiln.
If you call and my wife says, "He's sawin logs", I ain't snoring.

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