Walnut price by 8:00 A.M.

Dana · December 04, 2007, 10:12:22 PM

I have a customer who has located two storm downed Black Walnut logs. The tree was on city property and was located in a residential area (possible hardware) He has to do a sealed bid on them tomorrow morning and ask me for help on what he should bid. The logs are clear no knots with less than an inch of white sap wood. Log one is 10 foot long and has a 16" top, the other is 8' long with a 24 inch butt.

He was told a few mills were called to bid on the logs. I didn't think they would be interested since they are yard type logs untill reading a post by Ron W.

So what do you all think on the priceing? I'm thinking he should offer $1.50 per board foot as he still will have to pay me to saw and haul the logs for him.

Jeff · December 04, 2007, 10:21:04 PM

Dana, I'm sure with that bid, he will win unless its against another with similar interests. I just cant imagine a northern michigan mill paying such a price.

Dana · December 04, 2007, 10:38:05 PM

Quote from Ron W. in Tree service pays $1300 for Black Walnut "I think I mentioned that in another thread. We have paid for yard trees, and sold them for veneer for a profit. You can do the same thing with white oak, red oak, cherry and hard maple. Walnut has some nice growth characteristics, and their grading is a lot better on walnut than it is the other species. I think the veneer is probably around $4-5/bf.

Walnut lumber is pretty good, as well. I was getting $2/bf for log run walnut cut into 8/4. There was not a butt log in the bunch, all 2nd and 3rd cuts and some limbs. "

Jeff, I came up with that amount from Rons second paragraph. ($2.00 ft) I don't want to give bad advise to the customer. If this pricing is excessive for our area, then we have to find out whats reasonable. Free would be best but its a sealed bid and he does want the logs.

Furby · December 04, 2007, 11:09:27 PM

If I wanted them, I'd probly offer max around 50 cents per and not feel bad if someone else got them.
It's only two logs and he may have to submit proof of insurance to remove them from city property anyways.
If they are going to deliver them, up the price just a little.

This is just my 2 cents and I have no clue as to what walnut is selling for up there.

Jeff · December 04, 2007, 11:20:22 PM

I'm thinking it would be hard to try and use Ron's prices and Markets as a guideline for here, but with saying that, I am out of the loop when it comes to such things since I am no longer an everyday sawyer. If this was 3 years ago, and I was to answer the question, I would say what furby said and think it was high end.

My suggestion is he shouldn't bid higher then he really wants to pay. Bidding higher just to get the win and then wondering if you could have got it cheaper is a hollow victory.

Gary_C · December 05, 2007, 01:10:05 AM

I can't imagine any mill sending a buyer to even look at two walnut logs from a residential area. There is not enough walnut there even if it is without hardware for a mill to send a buyer and then a log truck to fetch the logs and still make some money. If you called a veneer buyer and told him it was a residential tree, he would either hang up or insult your ancestry and then hang up.

So I agree, 50 cents is a lot to offer. I'd be more inclined to offer 25-30 cents max and not even look back if someone offered more.

Any higher prices you see paid are for forest grown trees, some potential veneer, and large enough quantities to pay for the trucking.

Ron Wenrich · December 05, 2007, 06:03:42 AM

As stated, my area is not Michigan. I know of guys that would go after only a few walnut logs, if the price is right. Its hard to predict price by size description. A lot depends on quality.

When we get logs, they are down, and easy to get to. We will load onto the truck in a matter of minutes, and be gone.

Veneer buyers in our area will go after it if it is nice enough. Again, my area isn't your area. Yard trees would be scanned, and growth ring spacing might make a difference.

How bad does he want them? What is the alternative price of buying walnut lumber from a local mill? Your price should be log value = lumber value - mfg costs - trucking costs. Since you are talking about a few logs, that trucking cost can be rather high.

Dana · December 05, 2007, 06:39:47 AM

Thanks gor all the replys. He wants the logs badly he lives in town and is a custom furniture maker who is always looking for unusual wood. He wants me to do the sawing and hauling.
The city thinks they have gold for logs as they put them in a storage building to prevent theft.

Besides calling the sawmills, they called a local veneer mill. The veneer mill told them they aren't interested in yard trees. I told my customer that I doubted that the commercial mills would be either. He seems to think they are. He is getting all of his info from the city who may be creating an artificial demand/bidding frenzy.
I will let him know that you all feel the price should be around .25cents a brd ft? I will check in before 8:00 to read anymore feedback.

Jeff · December 05, 2007, 06:52:21 AM

The city is probably victim to the same urban legend that we see all over. How their walnut trees are worth tons of money. If that is so, they may refuse bids that are more then fair if they have proclaimed that to be within their rights.

Cedarman · December 05, 2007, 06:55:38 AM

The city is doing a good job marketing this walnut. They are creating hype. It is their job to get the greatest value out of those trees. Just hauling them to a protected place gives the appearance of great value. I find this interesting.
We do want to know how this turns out.

Dana · December 05, 2007, 06:59:48 AM

Quote from: Jeff on December 05, 2007, 06:52:21 AM
The city is probably victim to the same urban legend that we see all over. How their walnut trees are worth tons of money. If that is so, they may refuse bids that are more then fair if they have proclaimed that to be within their rights.

What happened is that the neighboring city of Petoskey had a storm downed tree and a city employee took the logs home. Someone found out about it and created a ruckus at city hall as they then wanted the logs. :

The city the walnut is in had heard about this, and dosent want/need the same controversy. This is the reason for the sealed bids.

flip · December 05, 2007, 10:10:40 AM

Our city has marked a bunch of trees that butts up against our property, along the river and around the city owned golf courses. Can't wait to see what they get for the stuff. Anything for a buck.

rbhunter · December 05, 2007, 12:36:32 PM

Please reply back to this thread and let us know what the logs go for. Just curious.

Daren · December 05, 2007, 05:29:25 PM

If it a sealed bid we may never know what it goes for (I would not go more than $.30 myself).
Jeff mentioned urban legends...I get calls /emails ALL the time from uneducated people. I am not going to divert this thread, but I have an interesting note I want to share. I will start a new thread "Buying walnut logs".

Dave Shepard · December 05, 2007, 05:43:26 PM

The bids are only sealed until they are opened. ;) Then that information should be public knowledge.

Dave

Daren · December 05, 2007, 06:25:25 PM

Quote from: Dave Shepard on December 05, 2007, 05:43:26 PM
The bids are only sealed until they are opened. ;)

Yea I reckon you are right :D

Dana · December 05, 2007, 07:25:03 PM

I suggested to my customer this morning a bid of .25 to .30 per brd ft. He felt they are worth more so we will all have to find out together. Bids aren't being opened for a couple weeks. I will let you all know how this turns out.

beenthere · December 05, 2007, 08:49:20 PM

I figure what they are worth is what someone is willing to pay.. ;D ;D.different strokes for different folks...
If he gets the bid, hope he is real happy, and not upset with you that you didn't saw out the good stuff he expects...

Dana · February 23, 2008, 05:45:48 AM

The bid request was in the papers last week, with Thursday being the bid opening day. My customer called asking if I would take the tractor to town to load if he won the bid. The city wouldn't load. :

He didn't get the logs. According to him, they went for $1000.00 each. There was a third log that was knotty and held the same price.

Ron Wenrich · February 23, 2008, 07:27:48 AM

How much did that come out to per bf? I'm assuming that the same buyer bought all 3 logs for a lump sum price.

Daren · February 23, 2008, 08:45:48 AM

Quote from: Dana on December 04, 2007, 10:12:22 PM
Log one is 10 foot long and has a 16" top

Did I read you right ? $1000 each

$11+ bft for a yard tree.

zopi · February 23, 2008, 02:59:50 PM

Who bought em? I want to offer my sawing services for a mere 5 bucks a bdft.

;D

I wonder who was more correct..PT Barnum, or Charles Darwin... :D

Jeff · February 23, 2008, 04:03:21 PM

Sure would be interesting to follow the trail on those logs. Looks to me like somebody paid way to much.

Daren · February 23, 2008, 04:07:44 PM

Quote from: zopi on February 23, 2008, 02:59:50 PM
Who bought em? I want to offer my sawing services for a mere 5 bucks a bdft.

You are right asking about PT Barnum and Darwin, but here is how I see this working. A guy will pay $11 bft for a log...then squawk and bawl when a hardworking sawyer just trying to feed himself tells him $.20 bft and damaged blades. :( "Why that is highway robbery !" >:(

zopi · February 23, 2008, 04:13:44 PM

Quote from: Daren on February 23, 2008, 04:07:44 PM
Quote from: zopi on February 23, 2008, 02:59:50 PM
Who bought em? I want to offer my sawing services for a mere 5 bucks a bdft.

You are right asking about PT Barnum and Darwin, but here is how I see this working. A guy will pay $11 bft for a log...then squawk and bawl when a hardworking sawyer just trying to feed himself tells him $.20 bft and damaged blades. :( "Why that is highway robbery !" >:(

;D yup...I bet those 1000$ logs would make really nice landscape timbers... :D