Getting started in the Kiln Business

[Goonabasec]

Hello I am new to the forum and new to the kiln side of the business.
I worked at a mill for a bit over 2 years.
The mills around here saw mostly oak but sometimes hickory and cherry wood.
The asking price is about .95₵ bdft They do not sort or grade the lumber and only cut 9ft logs.

What I am wondering is how to price my lumber. 
Should I create different stacks after I grade or sell as whole unit.
My kiln is based on Virginia tech.
I also have no idea on how to market the lumber. I was thinking about trying to find cabinet makers after making blanks.

I would like some advice on how to grow my kiln business. I see the price differential in fresh cut lumber and kiln dried but the problem of not being able to buy graded lumber somewhat scares me. I dont want to purchase 1000 bdft of less than ideal wood.
Thank you

[beenthere]

Welcome to the Forestry Forum. 

Suggest you learn more about hardwood lumber grading. It will help you make the decision what to do. Also will help you break down a log, as well as what to pay for your logs. Grading should be involved in every decision, for the most part. 

[Goonabasec]

Yes I am learning to grade lumber but I will not be getting logs myself to cut.
I am just planning on buying rough sawn lumber from a mill to dry and sell.
I do plan on expanding to planing the lumber and making blanks for cabinet makers but I dont want
to be involved in the cutting of logs anymore. 
Thank you

[KenMac]

Sounds like an iffy deal to me. I do know that rustic is in now so low grade lumber will probably still sell mostly to table builders and flooring guys. Cabinet maker still mostly want FAS or Select and Better as far as I know. How much of a gambler are you?
On the other hand, $0.95 a board foot is cheap in my area for oak and especially cherry. That leaves some room for grade and drying defect losses. Good luck!

[Goonabasec]

I mainly need help with finding out how to price and market the lumber in my area for all grades to get the most out of it.
Lowes in my area was selling FAS red oak for just under $10.47 a bdft.
I know Lowes isnt the ideal place to price my lumber but it gives me some ballpark idea.
Is there a board here that would already have the answers sorry I am new to this forum.

[Southside]

I am saying this to help you, not to be critical. You are asking for the one line answer to a career long question. It sounds like you plan on buying mill run lumber from a tie mill. You have a learning curve of how to grade lumber, how to dry it, and honestly how to buy it. 

Retail grade prices are just that, retail and are available online or by going to retail locations. 

Likely cabinet builders are not paying full retail, they have a relationship with a lumber provider and get a certificate discount. Prices fluctuate, the HMR (Hardwood Market Report) gives prices for tractor trailer quantity, FOB mill. Using that one can get a wild guess at what the retail price is by doubling the HMR value, but there are a ton of variables that go into that too. 

I would suggest visiting a lot of facilities to see what your competition offers and at what price. Once you can produce a similar product begin knocking on doors, but be prepared to sell for less, or have a superior product, because if they are already happy with their supplier who takes care of them, what's the advantage of switching? 

[customsawyer]

Another thing for you to keep in mind is that board at Lowes was S4S probably with no knots. Doubt if you will get a board like that from a tie mill.