What to charge for poplar lumber

Wlmedley · January 22, 2022, 08:44:43 PM

A friend of mines son is needing 110 1"x4"x12' poplar boards for furring strips to put metal on a barn roof.If my calculations are correct that would be 440 board feet.I told him I would do it for .75 a board foot. I don't want to over charge him.l am supplying logs. First time selling lumber and would like to know if this sounds fair.

Southside · January 22, 2022, 08:50:19 PM

I would say that is very fair. If you consider the value of the logs then you are not really making any money on it, so given the circumstances I think you are treating him right.

Wlmedley · January 22, 2022, 09:10:55 PM

Thanks for the answer.I really didn't buy mill to make money.Mostly bought it for projects around the house and some woodworking but it would be nice to make a little to pay for blades and upkeep.Also I just joined the forum and would like to thank everyone for all the knowledge I have gained.Seems like a real good bunch of people.Have been reading posts for over a year and finally figured out how to join.

Southside · January 22, 2022, 09:15:56 PM

Like anything there will be a learning curve, nothing wrong with helping someone.

WV Sawmiller · January 22, 2022, 09:32:55 PM

I'm 100 miles away and I charged $.75/bf for my fresh cut, rough sawed poplar lumber through last month but raised it to $1/bf this year.

I have a lot of calls for such strips. Some customers want 4" wide, some 6". I will get frustrated about building up a stock then suddenly some local farmer will come buy all I have and I I'll end up ripping a few 1X8s or 1X10s to finish his order. They are generally okay with 8', 10' & 12' lengths.

Don P · January 22, 2022, 09:53:43 PM

12' is kind of a magic length when i don't know what to cut. It seems to lay on or cuts well to more framing intervals than other lengths. And that's half price, or less IMO.

Wlmedley · January 22, 2022, 10:07:37 PM

Thanks guys.He was wanting 12 foot but my logs were 10s and 8s.Had a hard time explaining board feed will be the same I will just have to cut more boards.By the way WV I love your benches.

Cedarman · January 23, 2022, 06:55:29 AM

Mills are paying $.90 for good poplar logs and $.75 for lower grade in our area of Indiana. I have even heard over a dollar in places. $.75 for lumber seems low right now. Would have been high a few years ago. Prices have really changed in the last year.

stavebuyer · January 23, 2022, 08:44:13 AM

Poplar has been dropping weekly in the HMR since December. As soon as the weather settles you will see poplar log prices ease.

One of the largest east coast flooring manufacturers has recently put tight purchase quotas in place for oak and hickory flooring lumber.

Maple is still insane but Ash, Cherry, Hickory, and most oak grades have already peaked.

SawyerTed · January 23, 2022, 11:55:40 AM

It is easy to get a hobby sawyer confused with Timber-mart pricing, Hardwood Market Reports, regional commercial mill log prices and market prices in general.

I believe Southside advised well. A very reasonable price is $0.75 per board foot. Or to address the confusion, price it by the linear foot 1x4 is $0.25 cents 1x6 is $0.375 per linear foot.

When I first started, I found myself "off in the weeds" more than once trying to figure a fair price.

customsawyer · January 23, 2022, 12:39:35 PM

The price will depend on what you have in the logs. If I could get logs for 25 cents per bf then I would probably be in the 90 cents per bf for the lumber. I charge 50 cents per bf for sawing + the 25 cents for the log + 15 cents for the time to unload logs and then load the lumber.

beenthere · January 23, 2022, 01:28:08 PM

The "fair" price only needs to be fair to you. What is "fair" to the buyer is his/her problem to sort out.

Just be fair to yourself. Figure your own costs and what you want for profit, and let the chips fall where they may.

KenMac · January 23, 2022, 01:44:28 PM

I don't sell a lot of poplar, but what I sell is $1.00 a board foot. If you're giving a "friend" discount, that's a fair very price in my opinion.

GAB · January 23, 2022, 02:04:21 PM

Quote from: Wlmedley on January 22, 2022, 08:44:43 PM
A friend of mines son is needing 110 1"x4"x12' poplar boards for furring strips to put metal on a barn roof.If my calculations are correct that would be 440 board feet.I told him I would do it for .75 a board foot. I don't want to over charge him.l am supplying logs. First time selling lumber and would like to know if this sounds fair.

I'm not familiar with WV tax laws but if there is sales tax to be considered you or the buyer will be paying it when the tax man comes knocking at your door.
GAB

Wlmedley · January 23, 2022, 02:36:33 PM

Hopefully the tax man is not reading this post.What little bit of lumber I sell will be cash only.Worked for 44 years and figure I have paid enough.Linear feet a good idea and easier to figure on this type of job,thanks

WV Sawmiller · January 23, 2022, 03:25:01 PM

Gerald,

We do have a 6% sales tax on lumber (or most any commodity sold) and on sawing services here in WV. When I quote my price that is not tax included. They either pay the price plus the 6% on top of my cost or if they are tax exempt and using the lumber for a tax exempt purpose, they provide me a tax exemption certificate.

It is not up to me to prove the lumber was actually used for a tax exempt purpose in such cases. If they get audited it is up to them to prove it.

When I turn in my sales tax reports to the state the form asks how much my total sales were and how much was tax exempt then I pay 6% on the difference. I just keep a spreadsheet and the first column is Y or N for Taxable then I sort on that field. Once set up it is not that difficult or time consuming.

I think a small hobby mill owner occasionally selling a small amount of lumber or sawing services would probably be okay under the incidental sales issues like people cleaning out the garage and selling a small amount of stuff at a yard sale or such.

fluidpowerpro · January 23, 2022, 04:16:26 PM

Since your sawing for a friend, another way would be to just quote him a fixed price based on the number of logs. Factor in the cost of blades, fuel, etc, and then estimate how many hours you will have onto it, at whatever hourly rate you choose.
That way he knows up front what his cost will be and you can work at your own pace. You can also do a comparison to cost of purchasing the lumber to see how much he will save.

stavebuyer · January 24, 2022, 01:05:19 PM

This weeks HMR lists 2A poplar 4/4 @ 585/1000'

Now I realize HMR is not hobby mill related but lumber is a commodity and wholesale/retail lumber yard pricing as well as what other hobby mills saw for or sell lumber for has an impact on hobby mill lumber. Your mill and certainly your choice to set any price based on any formula.

1x4s to hold tin really aren't "unique". The 1x4s at the lumber yard will be kiln dried and surfaced all 4 sides.

To me rough framing lumber should be more or less in line with wholesale pricing unless you have a retail set-up with finished lumber ready to pick up.

A stock broker driving a Land Cruiser may be content to slap down a few SGU's for a live edge "mantle" but somebody fixing the roof on a hay shed isn't concerned with how much you invested in your equipment or how much you need to net per hour to contribute to your IRA. The expectation is that rough lumber from the mill will be at a discount to retail.

Larger mills often get some 'retail' traffic and will sell a few boards to a local neighbor to maintain goodwill. Wholesale market plus a 25% markup for retail is common.

In the case of 2A Poplar $.75ft would be right on target for today's wholesale price plus markup.

customsawyer · January 25, 2022, 06:14:20 AM

Stavebuyer has some valid points. The problem I am faced with is My log costs. The big boys that are selling on the whole sale market are buying their logs at least $30.00/ton less than I am on poplar. This really comes into play with cypress. Some times I'm having to pay as much for logs as they are selling the lumber for. If I try to compete with them I Will lose. I let them do them and I do me. Several of the large mills in this area send the small customers to me and I send the high volume customers to them. I have a great relationship with several of them and it is priceless.

WDH · January 25, 2022, 09:01:22 AM

I take the Hardwood Market Report wholesale price, tractor trailer load minimum quantity, and double it for retail. My retail customers do not buy tractor loads of lumber.

Wlmedley · January 25, 2022, 12:44:11 PM

I cut 54 1"x4"x10' out of one log yesterday.Big log hard to turn.Stacked and stickered lumber.Took me about 4hrs.540 linear feet 180 BF so l made 135 dollars.Snow and ice on the ground.l like cutting but can see this is not a big money making operation.Also logs were gave to me and I am not counting time getting logs on deck.Still have 780 linear feet to cut.l know this would be a small order for most of you but it is a big job for me.Think I'll stick to higher priced lumber,white oak etc.

WV Sawmiller · January 25, 2022, 01:13:17 PM

That surprises me. I think I can generally make more money off poplar for the effort involved than most other utility type woods just because it is so easy to saw. I sell other wood for higher prices but they take longer and are harder to saw and handle. Maybe the next log will be easier and things will just click. Good luck.

SawyerTed · January 25, 2022, 01:28:14 PM

Poplar sheathing 1x4s for holding metal roofing on isn't the in the same market as 4/4 or 5/4 FAS poplar. Poplar sheathing 1x4s are in the same market as pine sheathing boards.

Why spend time and effort on something that can be bought at the lumber yard? The margins are better on stuff not available there.

Wlmedley · January 25, 2022, 01:45:26 PM

Weather has been bad up here.My mill is under roof but I have to carry lumber about 20 feet to shed.Told customer I should have it by this weekend.Wish l knew what would sell the best and I could cut it at my leisure and have it ready.I have access to plenty of logs.Mostly white and red oak,pitch pine and poplar.You are right 1x4 furring strips are not a high dollar item.