Whats the best way to determine your market

[WoodSmith]

I'm in the beginning process of starting up a portable milling business, and I was wondering where you would start in deternining your local market. Who do you talk to? Local retail yards, loggers, building contractors, cabinet makers, potential customers, farmers, and so? I'm trying to do as much homework as I can, because I really don't want to work at my current job to long while trying to get the business going.
Thanks

[Tom]

Welcome to the forum, Woodsmith.

It's a good idea to find a markeet before you start a business unless you are just playing and the market finds you.

There is nothing like buying a tool and then trying to find a job to use it.   Kind of backwards. :D

I got started in a unique way I thought, but it seems most custom sawing business do it the way I did.  I just kinda wandered in.  look at my site. http://www.tomssaw.com/

Look at the knowledge base too.

We have some members who planned from the git-go.  Joey lowe was one and the rest will eventually come out of the woodwork and respond too, I'll betcha. :D

[Brad_S.]

WoodSmith, welcome.

As Tom mentioned in another thread, your clients may find you. If you can, keep your day job and grow your business part time. You didn't say whether you wanted to custom saw or sell a product so I'll be general. This is what worked for me, but I'll be as interested in other replies as you are!

I quit my photo job 10 years ago and jumped in to sawmilling in one fell swoop. The first thing I did was set up in a visible spot and start sawing. This got the ball rolling. A sign on your truck is a good investment. My yellow pages listing is invaluable.

Large lumberyards don't want to know you, or you them. Smaller yards can be a love/hate relationship. They want to fill their customers odd ball needs with custom sizes, but you are essentially competition. Selling wholesale to them, if they even consider it, is financial suicide, in my opinion.

When I started I contacted all 100+ tree companies I could find. Only a half dozen were interested. They rarely use your services themselves, but they have customers who place sentimental value on their trees and give out my name. Others will give/sell me logs cheap to ease their diposal task. Loggers are a strange bred. They've seen many dreamers come and go, but if you stick it out and are competent and reliable, they will come to respect you and they're good to know, especially if your looking to process logs into product.

Cabinet makers and builders buy sawing services and wood products, but you need a kiln to really get them interested.

Farmers use sawing services while those without woodlots are a good way to move lower grade woods. The horsey set has money and wood needs, in my case white oak for fences and anything but walnut for stalls. Construcion companies use a surprising amount of wood for lowboy trailers, stakes, lateral markers and dunnage.

Another source of sales, believe it or not, is other sawmills. Two similar sized mills near me deal only with softwood. I deal only with hardwoods, grade sawn mostly. I send people needing softwood to them, they send hardwood clients my way. A bigger mill nearby won't saw a yard tree, they send the client to me. Another mill saws hardwood, but doesn't know how, or even want to know how, to grade saw, so he sends those customers to me. I used to place orders for softwood with these guys, get the product and put a percentage on it before delivery, now I find it's just easier to send the actual client to them. The client appreciates the openess and honesty and returns to me later for either more advice or products I carry. The goodwill with the other mills is invaluable, especially when you run short on logs or have a huge order you need done ASAP and can't handle alone.

I can't point to one demographic and say "That's my market.". Instead I keep many irons in the fire so no one client or business line will do me in should it slow down or dissappear. At the same time, trying to be everything to everyone will run you ragged and broke.

That's my two cents. Hope it helped.

[Brian_Bailey]

Hey Brad -  

 I sent ya an instant message the other day and noticed that you haven't opened it yet.

I'm assuming you're not aware of this forum feature or maybe your just ignoring me  :D.

If its the former just click on "You have ... messages, ... are new". This is located at the top of the page and will take you to a secret page  :D :D.

[Bibbyman]

Often times your best markets are not local.  I'd say better than half of what we produce goes further than 50 miles from home - some even to the other side of the world.  

We've found that there is just so much that a local farmer will pay for lumber or sawing services before the go to the lumberyard or have the work done by a construction outfit.  Local cabinet shop won't buy your lumber but they buy their lumber from the broker you sale your lumber to.

Investigate and find your market but be prepared to be flexible because sure as Gawd made little green apples,  they'll always be new opportunities.  

Sorry, I can't tell you how to find this kind of market.  It just found us.

Welcome to the Forum 8)

[WoodSmith]

I was planning on custom onsite milling as well as milling from here at home. Eventually it would be nice to have a kiln as we have alot of red alder, and a couple of varieties of maples and some other species of hardwoods that are available. Or is that spreading it out to thin?
I'm a lifetime resident here, so I know a lot of people.
I guess the only thing to do is buy a mill a start cuttin some boardage.
Thanks a bunch ya'll

[Frank_Pender]

Woodsmith,  I agree with all of the above.  Most of ten you will find that the markets will find you.  Have been a teacher in this community for 30 years sure did not inhibit my business and belonging to the Oregon Small Woodlands Association privided some additional circulation of my doings.  Also check in with your local Forestry Extension Service, they are a great resouce for spreading the word.  The Extension Service has a program that is listing all of us who sawing for others as well ad the drying aspect, through Oregon State University.  

[Bibbyman]

Yea,  and to second what Frank said,  

We are listed with the Missouri State Forestry Department's list of forest industry and are also members of the Missouri Forest Products Association.  We've got some calls through these listings and associations but not many that have turned into orders.  (most callers are "shopping" for the lowest price or want something odd-ball like hand-split redwood rails).  But ... we've been asked by some of our re-sale customers if we were members of the association and I'm sure had we not been,  we would not have gotten the business.

Besides,  your state forester and associations like this can be a great resource for information.

[WoodSmith]

Hi there again Frank,
Thanks for the info about OSU Extension, and I will look into the small woodland association. I have 10 acres here in Lincoln County, zoned for timber. What subject did you teach? I am a network/technology specialist for Lincoln County Schools. I'm pretty well burned out on computer technology, its a usable tool but spending hours in front of computer monitor is not what I want to do for the rest of my life. I have always had a love for wood and decided it was time to pursue that desire.
As always all the input from everyone is greatly appreciated.

[Frank_Pender]

Once you settle a bit more into the wood tech business you will find that the other occupation will be much more sooooothing to the mind and body.   I know this for a fact.  I tought 7th grade Western Civ,  English, and Literature. :-/  I miss the kids, but not the bureaucracy that came with it in the last years. >:(

[WoodSmith]

I'm amazed at the changes in education, I'm certain that change has not necessarily been for the better.
We have completely done away with all vocational education replaced by hi tech, you know,   how to use email and put together a powerpoint presentation. I guess I'm just alittle bit old school,  I'm pretty sure  that not everyone will be a computer operator or work in the field of technology.
Oh yes and then there are the bean counters!
Oh well I'm not in charge am I. ;D
See ya soon