Howdy,
I'm still wondering what the typical arrangement is for brokers selling your wood. I've got funiture grade hardwoods in small quantities LOL, about 300-500 bd ft of high end things like quarter sawn oak. What have people seen out there for what i would expect to pay someone for finding me a buyer? What is the situation with repeat sales from a customer a broker found for you? They will probably know who you are when you deliever, does the broker expect to be paid forever? Anyone out there with any experience? Think the midwest would operate differently then other areas?
Thanks
Kelvin
Kelvin - I have checked into it a little myself last year -The more they can sell lumber for the more they make, it's incentive you know? It didn't seem like to bad of a deal really but they want quantities of certain sizes, length width and thickness. Heck with the way lumber is moving right now - if you can afford it, it might be best to try and hang on to it till, the market picks back up again.
I tried the broker route at first but found they wanted 7 to 9 thousand feet at a time, loaded onto their hired trucks.
Probably most brokers will want full loads, or if they have part loads that they know they can finish a load with, they may help you out. They would want you to get those small quantities to them. Brokers only move stuff they know they have a sale for. Our marketing boards are brokers but we deal with round wood only and they take any amount hauled to the yard for which they have a market for. Their rate in my area is 2.2%, but they handle $8-12M in annual sales at our local board. That's just one board out of 6. In the last couple of years it's been about 70% of that because of poor pulpwood and softwood sawlog markets. I would think 5% would be tops for brokerage unless it's export. Lumber is worth more to them than logs obviously, but I have no idea how much volume some brokers move. I mean they have to make a living.
We sell to a few guys that you may consider a broker. They want at least 1 Mbf of a species. If you are delivering, then it isn't too bad. If they are picking up, figure a truckload.
We don't pay any of those guys a percentage. They buy wood at a price, dry it, plane it, and sell to small woodworking shops. They also seperate the grades, as some shops need only a certain grade.
Quartersawn isn't everything its cracked up to be on the wholesale market. Its hard to match up, and a lot of shops don't have the call for it. So, many brokers will buy it, but they're not really looking for it, unless they have a buyer. Besides, you're losing grade and production when you saw for it. Loss of production is an increase in costs.
Kelvin - Have you ever tried putting an add on www.woodplanet.com to sell your lumber? They also have quiet a few RFQ's (request for quote). Many are large corporations looking for truckloads but there are also several woodworkers, contractors, and homeowners that post on there as well. I've put up a few ads with moderate success. Its worth a shot and best of all its free!
What is this grade or cut of lumber ??
D4S
Dressed 4 sides
Thakya,Sur
Frogman :)
I would check out some local woodworkers in the nearest city. They are always looking for such qty of good hardwood! And priced fairly you will both make out well.
It might be a dumb question, But have you tried Ebay?
I have tried several lumber wholesalers, and they all told me that they won't buy anything that has not been through a metal detector either.