Recently I have been running into customers that want to bring logs to me and have them milled. The is more often when they want the lumber kiln dried as the kiln is not portable. On a few occasions I have gone and picked up the logs and even delivered dried lumber back to them. I've just pulled a random number out of " :o somewhere :o" as to what I would charge them for pick up and/or delivery.
I've been thinking I need a more consistent way to charge them. What, if any, and how much do you charge for picking up logs to bring to the mill or delivering dried lumber back to the customers site? By the hour, mile or board foot?
They paying you for lost sawing time making all these rounds? ;)
I don't know your situation there, but I would have to assess whether being delivery boy factors well into my profit margins. Why can't folks just bring there logs have them sawed and dried and come get them within 14 days before (this is me thinking) I sell them to the local lumber broker? ;)
for delivery/ pickup i grab a number outa the air.
i know how long it takes to get most places, if im really buisy i charge more if works light on ill do it cheaper, some times i make good money sometimes i barely make fuel.
like when they say there at boonah and there actualy at rathdowney (50km further south) and you have 4 ton of posts on the ute and trailer, and have to bring 2 loads. :D
Don't sell yourself short here. Being a delivery and pick up service can get in the way and take a lot of time away from what you are really set up to do, sawing.
My advice would be to either farm the delivery/ pick up out to someone else or make darn sure you are charging enough for you to do it. Hourly might be the way to go for you, there are just too many unknown factors that can happen and keep you away from sawing.
I learned along the way that what I needed to charge for such services in order to make it worth my time and energy, was much more than what someone who was in the business of delivering would charge.
i have done some pick up and delivery but not drying. i always try to charge as much as i would get for time on the mill. i wouldnt do it at all if i didnt have a easy way to pick up a log and easy delivery. the bale bed on my pickup will set off a pretty good jag of lumber and even a couple of logs. if i have to haul the tractor over to their place and bring in a load of logs and go back to fetch the tractor it would be considerably higher. i usually figure a little longer than i think it will take and go with an hourly rate. oh and if i just dont want to go that far, i dont do it and dont price a job you dont want you might just get it. pc
For sawing, I charge by the hour. This prices is based on knowing what my total operating cost is plus an added profit. The way I look at it, no matter what service I'm performing, weather it is sawing, building furniture, or picking up logs, my costs are the same. Yes sometimes I do things for my cost(without adding profit) but the bottom line is, Your cost is the same no matter what function you are performing.
I charge the same hourly no matter what I am doing. For your input when mobilizing heavy logs, figure that a towing co. roll back would charge as it is a common option for most folks so start from there and offer some sort of value, ie,..." I can carry more than one layer of logs", or some such reason to use you.
Ironwood
I calculated a mileage charge for away sawmill jobs.
If I were you, I would create an itemized breakdown of the costs, including at a minimum:
tire wear/mile
gas costs/mile
insurance costs/mile
drivers wages/mile
then I'd toss in a minimum time to load/unload the logs.
Same for material handling and delivery.
You can work all day for $50 if you aren't accurate with pickup and delivery expenses
The Federal IRS mileage rate this year is .50 per mile.
I charge $45 per hour whether I'm sawing, loading or delivering. $15 of that goes to my helper. If we know that we are going to deliver, then we load the trailer as the boards come off of the saw. I sometimes allow the customer to use my trailer and return it when they are done unloading. This is not a great idea because of liability. If I was trying to make a living out of this...I would not be charging enough at this rate. Picking up logs is the real problem because we have to take a tractor to load the logs and a trailer to transport them. Taking the mill to the logs is a better solution in that case but we still have to take a loader also.
when ever the topic comes up i tell them i have no way of hauling logs period.they always find ways or people to haul for them.
i don't think a guy could ever charge enough for it to work out. how many "this will only take us maybe a 1/2 hour" 4 hours later have we all been on?or longer with more expense tied up.
Problem around here is most of my customer base is in the "close to D.C. dense population area and they have no possible way to either load or bring large logs out to me.
I don't always make an offer to haul logs. I usually wait to see if the customer can get them to me. I also often refer them to a tree company that I know hauls logs. But sometimes it turns out that I need to do the hauling. It's not like I don't have an easy way of hauling logs. I just need to get close to the logs. The boom reaches 16 feet and the hydraulic winch has 100 ft cable on it.
(https://forestryforum.com/gallery/albums/userpics/11043/TrailerJPG.jpg)
Most times if the logs are within 20 miles or so I've charged around $100 to come and pick them up and another $100 if I have to deliver the lumber back to them. Usually they'll come get their lumber. Works out to around $75 hr. Just trying to see if I'm being fair.
I will go pick the logs up and deliver the wood back to them if they want. I charge $50 an hour, door to door, and $1.50 per mile to cover gas, insurance, and wear and tear on the truck and trailer. If they don't want to pay this, then they can find someone else to do the hauling
You are basically offering a custom service and you have a truck and trailer with loader to do so. That is a decent investment. I think $75/hr is fair and reasonable for your investment and time.
I think you should realistically evaluate your costs for doing these driving things. Then also how much you think you should make per hour for your time. Then how much you want to charge the customer, after you consider whether this helps you get more sawing income. I charge 50 cents per mile for portable saw milling but I don't think this covers all my expenses, really. probably more like 70-80 cents per mile. And this doesn't count my time. But I still charge 50 cents because I want and like the work and I just don't want to charge more than this.
Quote from: Magicman on December 03, 2010, 11:43:08 AM
The Federal IRS mileage rate this year is .50 per mile.
Right ;D , it costs money to operate a vehicle, or any type of equipment, and these cost can be fairly easily calculated.
For my time I just figure I need to be making so much $$ (or little :D) no matter what I am doing no matter if I am sawing, logging, farming, delivering or any other project.
Than I can just live by the rule it doesn't matter what I do as long as I am doing something 8)
Quote from: northwoods1 on December 04, 2010, 08:12:47 AM
Than I can just live by the rule it doesn't matter what I do as long as I am doing something 8)
I try to do that myself...Even if it is only a little, try to do something productive every day. Increase your net worth , Just like putting money in the bank...Tim
some pickups to cut for customers I do for free if the cutting will pay enough to make it worth not moving the mill, and I can burn the slabs
any not in that realm I charge 70 bucks an hour for the move, same as milling
delivery of boards I do for 50 an hour unless the customer was at my place and he loade my truck then I discount