firewood bundling pricing

[glassman_48]

I have sold firewood bundles for a little over a year now.  I tried selling the .75 cu. ft. size and the 1.0 cu.ft. size what I call small and large bundles.  Last fall I just went to only the large size for $5.00 a bundle right in front of my logging site.  The nearest party store has asked if we would wholesale our bundles to them.  The highest price in our area that I remember seeing  last year was $5.99 per bundle looked like a large bundle to me.  Most of the bundles go from $3.00 smallest size to $5.00 for larger size. The $3.00 bundles were usually at a private residence string tied and the higher priced were at gas stations.  Our prices for our semi loads of firewood went up by about 25% this spring to what it was a year ago.  I am waiting to see what most are selling their bundles for.  I am guessing the bundle prices should be going up 25% or so too.  Just wondering if I could get any advice/input from you guys that have been selling bundles for a while.  thanks in advance

[stumpjumper83]

I'm making 1 cu foot bundles and wholesaling for 3.50, I'm probably a little cheap but I'm trying to build up my volume. 

[glassman_48]

stumpjumper,
thanks for the reply, I have a friend that wholesaled for $3.50 last year and couldnt make enough money.  We are only selling to one retail outlet right now and selling the .75 bundles for $4.00 each wholesale.  They sell for $5.00 retail plus tax.   Our pulpwood prices went out of sight here, I still have a bit left from last years prices so I went to 4 bucks only.  My firewood prices were at 75 a face cord and have to go up because of our increase.   I am just trying to get an idea if people in the bundling industry are raising their prices or not and how much.   thanks again,,,,,,,,,,ed

[Corley5]

  Bundles suck  ;D  I make and sell a few hundred a year to two businesses in town.  The only gas station and a rental cabin outfit on the West Branch.  I get $2.75 each wholesale for 1 cubic foot bundles.  It's too cheap but I'm not losing money and both clients also buy 30 face cords of firewood annually so it's  8)  My costs haven't changed much this season.  Fuel and stumpage are about the same as last.
  The gas station gets bundled green wood.  He's fine with it.  It's stacked under cover in the sun with great air flow so it dries fast anyway.  The cabins get whatever I've got dry.  So far this season it's been standing dead cherry. 
  It's the cost in labor and fuel to make the bundles that makes them really not worth it.  In the time it takes to make a 100 bundles we can do a five cord load of loose wood that only requires pushing a button to dump it at the clients.  No stacking upon delivery  ;D 
  If I didn't have my own wood as part of my logging operation it wouldn't be worth it.

[jwilly3879]

What I have noticed is that the price is the same but the bundles are smaller. Just like coffee used to be a one pound can and now it's 11.5 oz and the price is the same.

[glassman_48]

corley5,
The loggers I have been purchasing pulpwood from have jumped their prices by over 20% this spring.  Every time I see someone advertise for 65/70 a pulp cord, I call them and they are booked up for most of the summer with orders.  That is what I always used to pay, now the price is around 90 a pulp cord.  I only do the one party store and my own little spot in front of where my processor is.  It really is a pain to do bundles, we do them for the party store because she sends us so much firewood customers.  I am just watching the firewood bundle prices to see if they jump much this summer.   I am almost done with my 2 year old pile of pulpwood.  I will probably put an ad on c/list and see if I can get 20 pulp delivered to my new site of green and just bag it for the coming season.  If you know anyone cutting down in my area, I will be ready in probably a couple weeks for a big truck to come on my new place.

[glassman_48]

jwilly85,
We were selling the 1 cu. foot bundles retail only last year for 5 bucks, we have gone down to the .75 cubic size now for 5 bucks, just like you said to keep the price the same.  A lot of people dont want to spend more than 5 per bundle around here.   thanks,,,,,ed

[CRThomas]

I have sold firewood bundles for a little over a year now.  I tried selling the .75 cu. ft. size and the 1.0 cu.ft. size what I call small and large bundles.  Last fall I just went to only the large size for $5.00 a bundle right in front of my logging site.  The nearest party store has asked if we would wholesale our bundles to them.  The highest price in our area that I remember seeing  last year was $5.99 per bundle looked like a large bundle to me.  Most of the bundles go from $3.00 smallest size to $5.00 for larger size. The $3.00 bundles were usually at a private residence string tied and the higher priced were at gas stations.  Our prices for our semi loads of firewood went up by about 25% this spring to what it was a year ago.  I am waiting to see what most are selling their bundles for.  I am guessing the bundle prices should be going up 25% or so too.  Just wondering if I could get any advice/input from you guys that have been selling bundles for a while.  thanks in advance

[CRThomas]

I'm making 1 cu foot bundles and wholesaling for 3.50, I'm probably a little cheap but I'm trying to build up my volume.

[glassman_48]

CRThomas,
thanks for the information, I set the ash aside when I get it to use for bundles because of the weight.  Most people around here dont like using ash for their woodstove, they would prefer oak or maple first.  But they would take anything I had last winter.  The majority of the wood I get is oak and maple by the semi load.  thanks again,,,,,,,,,,ed

[CRThomas]

I have sold firewood bundles for a little over a year now.  I tried selling the .75 cu. ft. size and the 1.0 cu.ft. size what I call small and large bundles.  Last fall I just went to only the large size for $5.00 a bundle right in front of my logging site.  The nearest party store has asked if we would wholesale our bundles to them.  The highest price in our area that I remember seeing  last year was $5.99 per bundle looked like a large bundle to me.  Most of the bundles go from $3.00 smallest size to $5.00 for larger size. The $3.00 bundles were usually at a private residence string tied and the higher priced were at gas stations.  Our prices for our semi loads of firewood went up by about 25% this spring to what it was a year ago.  I am waiting to see what most are selling their bundles for.  I am guessing the bundle prices should be going up 25% or so too.  Just wondering if I could get any advice/input from you guys that have been selling bundles for a while.  thanks in advance

I sell only ash bundled $2.50 to $10.00 a bundle I do not know your customers but most of mine are old like and the large bundles are to heavy for my customers. Bundle some oak and then bundles some Ash and weigh them then think if you are a little old 70 year old lady. later. I sell my wood whole sale 3.50 a bundle then retail it goes up to 10.00 a bundle. Some of the fellows around here are trying to under cut ma at Wholes and retail 1.80 a bundle if that makes them happy sell away later

[stumpjumper83]

I was wrong in my earlier post, I'm making 1.5 cu foot bundles.  Sorry about that.  Here is a pic of a pallet of what I'm producing.  There are 24 bundles on a pallet, weight is about 1,120 pounds, pallet included, and just about 45 pounds a bundle.

 

Again, I'm not trying to deliver a couple bundles at a time, I'm looking to deliver bundles in semi truck load qualities.  Yes, 3.50 is cheap but its all I need to make.

[Corley5]

My local Car Quest took over, reopened and moved next door to the Do It Center Hardware and Lumber Yard.  I noticed a couple weeks ago they had wood bundles made of aspen slabs and edgings.  Fairly poor firewood   I opened my mouth today about firewood bundles.  The bundles they have were made by Scott's FIL from the last of the scrap he had left from his milling days.  There won't be anymore.  They're going to let me know when they need bundles.  I'm in there more than I would like    Me and my big mouth : :

[glassman_48]

Corley5,
Are they getting 5 bucks a bundle retail in your area?  The average down here is 5 and some are 5.99 a bundle at the retail outlets.  Stumpjumper, I had a young guy in our area that was wholesaleing his small bundles for 3.50 a bundle and he said it wasnt enough.  He had also just purchased a new processor for the bundles and he would go take his processor into the woods for tops and presell his wood to customers and haul right to them. 

[stumpjumper83]

Well, this is my thoughts on the matter...  I'm cheap, and until my processor is running 40 hrs a week, I'm going to remain cheap.  Profit by volume...

[Corley5]

I really don't know what any of them are charging.  I don't buy bundles.  I sell them ;) ;D   And bundles still suck ;D

[glassman_48]

amen to the bundles suck part,,,,,,,my son is 30 years old and he is "in charge" of that dept.  I wanted him to take care of our little bundle rack and the gas station down the road and see how he handles that before we look for other retail customers.  Most store owners are happy making a buck a bundle around here. 

[Busy Beaver Lumber]

We have kept our wholesale price at $2.50 a bundle for .75 cubic foot bundle for the past 5 years. Delivery is extra and is effected by distance and volume.

[glassman_48]

busy beaver lumber,
thanks for your info, our pulpwood prices around here are up by almost 30% this spring.  I am not doing much bundles at all, but want my prices to stay current.  Do you use ash a lot for bundles?    thanks,,,,ed

[CRThomas]

I have sold firewood bundles for a little over a year now.  I tried selling the .75 cu. ft. size and the 1.0 cu.ft. size what I call small and large bundles.  Last fall I just went to only the large size for $5.00 a bundle right in front of my logging site.  The nearest party store has asked if we would wholesale our bundles to them.  The highest price in our area that I remember seeing  last year was $5.99 per bundle looked like a large bundle to me.  Most of the bundles go from $3.00 smallest size to $5.00 for larger size. The $3.00 bundles were usually at a private residence string tied and the higher priced were at gas stations.  Our prices for our semi loads of firewood went up by about 25% this spring to what it was a year ago.  I am waiting to see what most are selling their bundles for.  I am guessing the bundle prices should be going up 25% or so too.  Just wondering if I could get any advice/input from you guys that have been selling bundles for a while.  thanks in advance

The price is what your area can sell for my area whole selling is $2.50 a bundle retail $5.00 a bundle. I have other price"s but they are for bundles wrapped in Christmas paper or halloween stype stuff. you can only price your wood at what the market will handle.

[CRThomas]

I was wrong in my earlier post, I'm making 1.5 cu foot bundles.  Sorry about that.  Here is a pic of a pallet of what I'm producing.  There are 24 bundles on a pallet, weight is about 1,120 pounds, pallet included, and just about 45 pounds a bundle.

 

Again, I'm not trying to deliver a couple bundles at a time, I'm looking to deliver bundles in semi truck load qualities.  Yes, 3.50 is cheap but its all I need to make.

I see the Ford I have a 250 ford a 450 ford and a GMC but i park it behind the shop so my friends won"t make fun of me. Most of my customers are old people and can only pickup about 10 to 12 pounds so thats what my bundles weigh that is very dry Ash.

[glassman_48]

CRThomas,
My son and I processed 10 pulp cords of wood in the last couple of days.  The couple are in their 70's and wanted everything small to medium only.  If I sent any green maple through even what I considered medium, he would pick them up and tell me to go smaller.  I ran some dead ash through and it was medium or larger and he never said a word.  I had remembered one of your earlier posts about the weight of ash.  That was interesting,,,,,,,,,,,,learning a lot here,,,,,,,,,,thanks ed

[redprospector]

I know I'm a little strange, but I don't see what difference it makes what someone else is charging for any product you're making.
I always thought that in good business, one must figure the cost to produce a product, then add the profit margin that is required by your business, and there you have it, the wholesale price of your product. If delivery and stacking are required those services have to be figured on an individual basis.
If I need to get $2.50 for a .75 cu. ft. bundle to maintain my profit margin, what difference does it make if someone else is selling for $3.00? If all things are equal, I'll soon have the lion's share of the business at my calculated profit margin. The same goes if someone is selling at $2.00...I don't care. They will soon find that they can't stay in business if they aren't making a profit, and when they go up on price, or out of business I'm waiting with my product to supply the need. If I lower my price to match, or beat them then we both loose.

If I'm going to go broke, I'd rather do it fishing or playing with the baby's momma, than bundling firewood.  :D

[r.man]

Red, I think that is good advice for almost anything. I have known people that charge at the high end of the local scale and they are busy and prosperous. If you price ridiculous you might end up doing a lot of fishing but it makes more sense to me to be higher than average and not run off my feet. Better to sell one for a dollars markup than 100 for one cent.

[slab]

slab says a quick nickle is better than a slow dime  mendon ma.