Pricing A Large Job

[woodweasel]

 Going to look at what I consider a very large job for my little part time operation. a fellow has 6 1/2 acres
of pine that he wants sawn into 6''x6''x16', 8''x8''x16'. My previous little jobs were by the hr.($65) plus
mileage ($1.50 one way) I want to make some $$ but not screw him either.My concern is once I start is
he gonna be happy with my production? I have a Lt35 Manual with deck package. I will have either a front-end loader or skidder to load/off load . He was happy with my rates I quoted him over the phone. I have
no ideal how long this job will take, but it will take a while ! Dont know if this will be feasible or not for both
of us ??? ??? : ;D Help Woodweasel

[Lakeerieloghomes]

Weasel,
  This job is totally feasible. Before locking yourself in to a bd ft or hourly rate. I would ensure that you take a look at the landing on which you ll be sawing. I would verify a few things one landing or multiple? This will play into how much extra time you have moving the mill. I would charge a small set up or hourly to cover your time moving the mill on site. will there be a laborer for you or sawing alone? What are the log conditions and average size. I would work in hourly rates for any time spent bucking, limbing, or cleaning logs. As we know some land owners are not loggers and do not understand what makes for productive saw logs. Is he going to sticker and stack or will you? All in all, I would charge based upon footage as you ll be sawing large dimensional lumber and it will add up. I would work in a clause for hourly rate for moving equipment and any other trim work along with a standard flat fee for damage to blades.

[Skip]

All things considered with that much wood and the dimensions I would charge by the board foot. Don't have too keep track of breaks maintance  lunch and all the time, he pays for what he gets less bookkeeping

[woodweasel]

Roger,Roger Fellows
          I'd have to keep up with the bf & come up with bf$. I'll have a
better ideal once I see the site. Gotta say I am partial to my hourly rate.
As we say in my neck of the woods "I'll put the pencil to it" As I said
this is a lot bigger than anything Ive had on my plate :-\ :-\

[woodweasel]

Whats funny is I was only somewhat successful at 2 other small businesses.
I busted my butt on those 2!! Havent done anything other than printing
some business cards and a free ad on Craigslist with the mill. I have a full time
job on the water and for the last 3 months on my 10 days off, Ive done 2-4
good jobs each time ;D Its actually more than I want to do ;D How Bizarre 8)

[beenthere]

Do you think you will get one 16' 6x6 or 8x8 per tree? And what do you do with the trees that don't make a 6x6? 

[Magicman]

Your OP indicates that you have already quoted him hourly rate.  You should do OK with that arrangement plus you will gain experience and confidence. 

[woodweasel]

Thanks fellows, I'll  post some more once i view the site 8) 8)

[Brucer]

While I mostly buy logs and custom saw timbers from them, I also saw the customers' logs from time to time. I quote both aa BF rate and an hourly rate -- whichever is less. that way the customer knows that his/her costs won't exceed a certain amount (BF price) but could be lower (hourly price).

My hourly rate is $75 per hour, based on the hour meter readings (three meters -- sawmill, edger, and loader). That way I don't have to keep track of lunch breaks or interruptions.

I always write both price calculations on the invoice and circle the lower one. The customers nearly always feel they got a deal.

I have the advantage of 9 years of sawing close to half a million BF under my belt, so I know what I can produce in what time frame and I know what my expenses will be. It wasn't nearly so easy figuring out what to charge when I started out. Basically I cheated -- I found out what my competitor was charging and charged 10% more. I made darn sure my quality was better than his.

[Magicman]

Quality is always your best asset and salesman.   

[Brucer]

Yeah, I'm still in business -- he's not.

There is nothing wrong with telling a customer that you've never done a job that size but you're keen to give it a try. Then suggest that you review things after you've had a chance to get some production under your belt.