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investment against return scale for wood processing


flatyre
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technically its misleading to advertise a cube for x amount if its in a .73 cube bag. But how many members of the public know a "ton bag" isn't actually a ton? Also I would imagine you could fit a lot more logs into a builders bag if you set them in nice and neatly one at a time as opposed to randomly dropped in from a conveyer belt. Has anyone ever had a member of the public point this out? The local shop sells net bags of logs for £5, but they are filled neatly to maximise the logs per bag. Has anyone ever counted out the average number of logs in a builders bag, the average number of logs in a net bag, and calculated out the price per log for each volume of bag? Does Joe Public just think the bigger the bag the better the deal?

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The problem is half the time they aren't cubic metres either. There was a lad not far from me selling unseasoned cubic metres for £40. I bought 3 off him for £35 a cube and I put the whole pile in 1.5 Ibc crates. I told him they are definitely not cubic metres but to this day he still sells them as cubic metres. Puts pictures up of "3 cubic metres going out" and the transit back is 1/2 full.

 

Yeah, I see people on this website selling cubic metres for £60 and I wonder if they really are cubic metres.

 

Perhaps trading standards should investigate some log merchants?

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Also I would imagine you could fit a lot more logs into a builders bag if you set them in nice and neatly one at a time as opposed to randomly dropped in from a conveyer belt.

 

 

Logs from our 1.25m3 bags will fit into our 1m3 bags if they are netted up.

 

Without netting I would expect to get slightly more in too.

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A cord wood man told me that he would deliver a 20t load to a customer he would have a old saw and a old van and 20year later he would still have a old saw and a old van

 

 

Sent from my iPhone using Tapatalk

 

He's doing better than me, when I started I had a new saw and new van, I now have an old saw and an old van :blushing:

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Prices for cord went up with the greedy grabbing government schemes. Biomass rural heating incentives etc.

Then many wanted a piece of it, bought the gear subsidised. Undercut for the sales volume. Now the business is like that ancient torture/execution practice of quartering were someone was pulled apart in four directions by horses.

I didn't do firewood this year and I have little financial incentive to do so.

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Well considering most retail industry trade to retail price is 30/40% profit margin. buying in kiln dried at £70 trade to £120 retail is pretty good at 75%.

I also have a timber business and most of the products trade to retail is 35/40%.

 

£120 less 5% VAT is about £114, gross profit if buying at £70 ( plus VAT) is £44, this is usually expressed as a percentage of the selling price not the cost price. So gross margin is about 36% off the top of my head, providing you are selling in sensible volumes per drop and not taking it to far then there is money there.

 

So thats about the same as your timber margin.

 

A

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technically its misleading to advertise a cube for x amount if its in a .73 cube bag. But how many members of the public know a "ton bag" isn't actually a ton? Also I would imagine you could fit a lot more logs into a builders bag if you set them in nice and neatly one at a time as opposed to randomly dropped in from a conveyer belt. Has anyone ever had a member of the public point this out? The local shop sells net bags of logs for £5, but they are filled neatly to maximise the logs per bag. Has anyone ever counted out the average number of logs in a builders bag, the average number of logs in a net bag, and calculated out the price per log for each volume of bag? Does Joe Public just think the bigger the bag the better the deal?

 

 

 

I get about 400 10" long 2-6" wide logs in a 1m3 bag filled properly like this -1157b01646f30815195b943b6034cc48.jpg

 

 

Sent from my iPhone using Tapatalk

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