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business plan

Started by josh, October 12, 2012, 10:25:19 AM

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Tree Feller

Quote from: OlJarhead on October 20, 2012, 11:01:11 AM

...unless I'm way off base wouldn't the cost of operating the mill be a lot less then 68cents a bf?

If it isn't there are a lot of sawmillers going broke. I've never paid that much per bf to have logs milled.
Cody

Logmaster LM-1 Sawmill
Kioti CK 30 w/ FEL
Stihl MS-290 Chainsaw
48" Logrite Cant Hook
Well equipped, serious, woodworking shop

bill m

Quote from: rbraeking on October 20, 2012, 04:53:41 AM
My cost of milling lumber is around 65 cents/bf.  There are not a lot of customers available for milling in this area so the mill is not a stand-alone money maker.  It is more of a convenient tool for the rest of the business which is custom furniture and repairs....and even that is not my day job.  With the cost of blades (you'll mess up quite a few before you get the hang of it.), gasoline, maintenance and repairs the mill is about a break even situation if not a cost center.  If you must finance your mill go through the mill manufacturer.  If you are like me, more talent than money, then buy a used mill and make it work for you. 
If sawing lumber is costing you money why not just sell the mill, pay someone else to saw your lumber and use your time to do something that will make money.
NH tc55da Metavic 4x4 trailer Stihl and Husky saws

Okrafarmer

Oljarhead, don't forget to include depreciation of your mill, truck, trailer (if applicable), and support tools. But even if you get up to .25 / bf costs, you should be able to charge more than that in Washington State, I think.  Just hope it's enough to pay your way. Try to work on upping your production rate. If you can improve from 50 to 65 bf/hr, that's a big boost.
He that dwelleth in the secret place of the most High shall abide under the shadow of the Almighty. Psalm 91:1

Operating a 2020 Woodmizer LT35 hydraulic for Upcountry Sawmill, Dacusville, SC

Now selling Logrite tools!

Writing fiction and nonfiction! Check my website.

GeneWengert-WoodDoc

There is a valuable bit of information in Bill M's posting.  It is always worth considering hiring out a particular service rather than investing in equipment yourself.  For example, if you do not have much need for planed lumber, but sometimes get an order for planed lumber, it might be a better decision to hire out the planing than to buy a planer.
Gene - Author of articles in Sawmill & Woodlot and books: Drying Hardwood Lumber; VA Tech Solar Kiln; Sawing Edging & Trimming Hardwood Lumber. And more

OlJarhead

Was doing some math today and figured I milled everything from 50 to 95bf/hr on he LT10.  It all depends on the size of the log more then anything and with 8' logs vs 16' logs it gets tougher, I think anyway, to mill at the higher rates (just because of loading, rolling and offloading etc).

Seems when I was milling logs in the 15-22" range I was able to mill closer to the 95bf/hr rate but I figure a smaller mill would probably do better with hourly rates specially if the logs are smaller (8-12" diameter).

I've figured that with 4 hours of mill time I could survive as long as I worked 16 days out of the month.....seems doable.
2016 LT40HD26 and Mahindra 5010 W/FEL WM Hundred Thousand BF Club Member

Okrafarmer

Well, figure in yet another 20% for even more unexpected problems, but it definitely seems like a better plan than just sitting around doing nothing.  :)
He that dwelleth in the secret place of the most High shall abide under the shadow of the Almighty. Psalm 91:1

Operating a 2020 Woodmizer LT35 hydraulic for Upcountry Sawmill, Dacusville, SC

Now selling Logrite tools!

Writing fiction and nonfiction! Check my website.

Meadows Miller

Gday

another thing i forgot to add JH is that if you have say a 6x10' or longer trailer you might not need to build your mill onto one to be protable I welded the 4x2 tube on then I would leve the head at the far end of the trailer and had a prop so i could lift the light end of the mill up and back the trailer under the mill to alittle over half way then i would roll the head up half way and lock it down to the track and slide it in to the trailer n strap er down Mate  ;) ;D

Regards Chris
4TH Generation Timbergetter

OlJarhead

THanks -- this is kinda what I'm working towards. 

We're thinking of making the trailer so the mill can be either run on the trailer or removed from it so the trailer can be used for other purposes.
2016 LT40HD26 and Mahindra 5010 W/FEL WM Hundred Thousand BF Club Member

Tree Feller

Pleased to see you posting again, Erik. Sorry to hear about the job, though.
Cody

Logmaster LM-1 Sawmill
Kioti CK 30 w/ FEL
Stihl MS-290 Chainsaw
48" Logrite Cant Hook
Well equipped, serious, woodworking shop

OlJarhead

Thanks TF -- truth is I haven't been milling lately.  Too busy putting in a field and working on the orchard and water system.

But I hope to get back to milling again soon!
2016 LT40HD26 and Mahindra 5010 W/FEL WM Hundred Thousand BF Club Member

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