The Forestry Forum

General Forestry => Sawmills and Milling => Topic started by: AtLast on June 01, 2003, 09:23:56 AM

Title: ok ..WHATS THE BOTTOM LINE
Post by: AtLast on June 01, 2003, 09:23:56 AM
The information thats here is tremendious...only problem ( for me ) is theres sooo much of it  :-/..I guess if things were set up so there was a place on here that gave general bottom lines in regards to fees...pricing...average set up charges...I realize each sawyer and region that sawyer is in plays a role in this ..but there seems to be somewhat of an " average" ..I guess what I need is a chart or a " layout" that explains the variables in relation to fees....when I saw I typicall charge 30 set up .30 b/f ..30 if I hit tramp metal of 15 if the cust wants me to scan and assume responsibility ...am I on track here of completely confused?
 ???
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: Fla._Deadheader on June 01, 2003, 11:00:25 AM
I am charging 25 .25 and 25. I add .10 if I have to supply labor and extra if there is anything extra that comes up. Looks like ya got it covered.
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: Brian_Bailey on June 01, 2003, 11:10:02 AM
Atlast-  The bottom line is you're either making money or you're not.  If you're not, you had better change something so you are.  
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: dewwood on June 01, 2003, 11:42:43 AM
I agree with Brian.  Everyone has a different bottom line.  One operation may not have any debt and is working on a return on his investment, another may be over extended and working to try to catch up(this is where people start undercharging just to get work and that's the worst thing to do) the other type is the hobbyist who just does it for "the fun of it" and bottom line is not all that important.

You just have to work with your own numbers and do what is comfortable for you.

Dewey
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: Percy on June 01, 2003, 07:10:06 PM
This bottom line thing can get real confusing at times(for me anyways). :D

 There were these fellas that were underselling me bigtime  on Western Red Cedar a few years ago. They had access to their own logs and therefore were able to sell lumber cheaper than me. Thing is, once you did all the guzzintas, they coulda made better money selling the logs and sitting on their keesters.....well they aint around anymore....good thing ya...

I guess the point of this is, if you get a super deal on the logs(lower than current market value), you can pass a little on to your customers in the way of slightly lower prices BUT when things turn around and the log prices rise, youll be in for a fight trying to get the lumber prices up.....soooo.....I tend to cost everything on market value and see if I can make a buck at it that way, if not, I move on....
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: Frickman on June 01, 2003, 07:24:56 PM
My accountant, attorney, insurance agent, and banker don't work for free, and neither do I. I feel that I am as much as a professional as they, and I should be compensated for my work and knowledge. I also learned that I can't be everything to everybody, so I pick and choose the jobs that are profitable for me. If I can't make money at it, why do it? There are plenty of things needing attention around the farm, so if I'm going to work for free, I'll do things for myself.

Frickman
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: wiam on June 02, 2003, 07:30:21 PM
" if I'm going to work for free, I'll do things for myself. "

That is a big part of life.  :)
Will
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: AtLast on June 02, 2003, 07:44:00 PM
well heres an example

I have been hired to cut some logs that are lined up. They want 2 sides sawed flat. They are building a " log cabin" structure and want to be able to stack the logs. I told them it would cost 30 for set up and either can contract for the day at 300...or 40 an hour based on an 8 hour day equalling 320...is that to low?...to high?..just right?...other jobs I have done are 1 or 2 logs but again I charge 30 set up, mileage after 20 miles, metal detector fee of 15 per log at .30 a b/f...typically the logs are 26" diam....typically 12' to 15' sawed into 4/4

It frustrating bein a newbie.... :-/....I dont doubt all you each say is totally true ..I dont knock any of it...I guess what Im asking is, is there such thing as an " average" ??? :-/ :)
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: Jeff on June 02, 2003, 07:52:50 PM
I say if you are tickled with what you have accomplished at the end of the day, satisified with whats in your pocket, your customer is happy and tells you they will call again and refer you, then you cares what anybody else is charging?
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: Tom on June 02, 2003, 07:57:58 PM
I think that what you  charge is going to be a decision you will have to make based on the local economy and how much you expect to see in your paycheck at the end of the day.  How you  charge is really the question.  

I would be uncomfortable charging for piece-work since logs will be different and labor may be encreased as the day wears on  because of the slabs and stacks of finished logs.

This seems like an ideal "hourly" job and $40 per hour isn't unreasonable. When I was trying to come up with an hourly charge years ago (I've never had to saw hourly) I based my $50 an hour on the fact that tractor mowing and backhoe work was $35 to $60 per hour.  You need to be prepared to answer the question "why are you getting $40 an hour while we are moving logs and you aren't sawing?" and other questions of the same vane.
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: Frank_Pender on June 02, 2003, 08:50:49 PM
It is all relative.   I offer to saw logs for $65 an hour.   That would include bucking (if needed), pressure washing each log, and sawing.  Otherwise I tell them I will saw their logs for a specific amount per board foot, plus the washing of each log.   Various species have differing prices.  It is all relative to me.
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: AtLast on June 03, 2003, 04:53:10 PM
WEll....I feel alittle better....at least you guys didnt say " ARE YOU OUT OF YOUR MIND!!!".... ;D...I thank you all for the input...I guess Jeff is right over all...although I enjoying sawing so much that I was afraid to let my fun end up costing me money... :)...thanks for the input
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: Brian_Bailey on June 04, 2003, 07:10:33 AM
AtLast -  Sometimes just money isn't the bottom line. It all depends on what one is striving for in our short trek in life.
Title: Re: ok ..WHATS THE BOTTOM LINE
Post by: AtLast on June 04, 2003, 03:00:15 PM
EXCELLANT point Brian...