Is this the end?

[Steven P]

From a consumers point of view... I have a multifuel stove - coal or logs - and from a financial point of view logs for me have to compete with coal. I am paying the same for 50kg coal as I was 5 years ago when we moved in the house - and I am not being tight, I tell my coal man off every year for not increasing his prices.

 

It's not as simple as wood increasing in price, the big users, those of us who only use solid fuel as heating - you have to compete with a stable coal market too. 

 

I can appreciate your decision, your getting squeezed from both sides and hit in the middle by cheap imports too  I've no complaints paying a fair rate... but also have to watch the ££ and heat my home for the best prices.. which is often coal or free logs

[Mark Bolam]

Log prices will have to rise.

Simple business economics.

Anyone who wants to run a stove will have to accept this.

Yes, there will always be farmers boys selling at £50/load but you shouldn’t be looking to compete with them.

Keep your prices and standards high and push the benefits of mixed loads.

Things will even out eventually.

[Spruce Pirate]

It seems every time the price of oil goes up petrol goes up in price at the pumps and heating oil goes up.  Shouldn't be any different in the log market.

 

[Gary Prentice]

15 minutes ago, Spruce Pirate said:

It seems every time the price of oil goes up petrol goes up in price at the pumps and heating oil goes up.  Shouldn't be any different in the log market.

 

But we don’t have much chose, we want to drive we have to buy fuel. For a lot of log buyers it’s not the only heating/hot water option but more of a luxury purchase or there are other fuel choices. 

If the playing fuel was level, you'd be right but increasing log prices properly in line with input costs would probably reduce sales below a sustainable level (as reducing the profit margin will also do as its starting to do)

[Mike Hill]

How long would hardwood logs keep if stacked in the round in the UK?

Because if across the board prices will have to increase due to increasing material costs,would it not be smart to buy as much as you can,sit on them for a few years and process them for a large profit in the future?

[Spruce Pirate]

4 minutes ago, Gary Prentice said:

But we don’t have much chose, we want to drive we have to buy fuel. For a lot of log buyers it’s not the only heating/hot water option but more of a luxury purchase or there are other fuel choices. 

If the playing fuel was level, you'd be right but increasing log prices properly in line with input costs would probably reduce sales below a sustainable level (as reducing the profit margin will also do as its starting to do)

I totally agree.  Far too many artificially low prices keep the price of logs down be it imports or hobby sellers.  Doesn't change the fact that if your costs go up you should be able to put your prices up.  Not actually trying to suggest it is that easy though.  I'm glad I'm not in the firewood business.

[Squaredy]

7 hours ago, Backpain said:

After 8 years selling firewood it would appear the end is near.  I've no shortage of customers, in fact we just get busier evry year.  But for the past few years its become more and more difficult to find local hardwood. We've had to source from bigger wholesalers just to get hold of coredwood. The price has literally doubled and I see no way of increasing retail price to compensate.  It's a hard job with many overheads and I don't see any profit int now or in the future.  It seems the only way to do it is to buy it standing and extract it yourself. So consequently I'm looking for a part time job driving a van which in reality will make me more profit.

You are very certain you cannot increase your log prices enough to make it worthwhile.  Maybe you are mistaken.  

 

Lots of things in life have become much more expensive in the last few years - yet people still cough up.  By your own admission you keep getting busier so maybe you could increase your prices usefully.  Maybe you will be surprised by the response.

 

If you lose a few customers, or even say 20%, overall it will mean you work less hours but more profitably.

 

Might be worth a go rather than just write off your own business.

[Mark Bolam]

You’re right Gary.

I reckon sales will drop right off when the totally necessary price increases kick in.

Logs will become a premium product for affluent customers.

[Mark Bolam]

4 minutes ago, Mike Hill said:

How long would hardwood logs keep if stacked in the round in the UK?

Because if across the board prices will have to increase due to increasing material costs,would it not be smart to buy as much as you can,sit on them for a few years and process them for a large profit in the future?

Thanks for blurting out my secret business plan on an internet forum mate.

Beers on you at the APF then....

[SteveA]

The end, or a new beginning?.... https://www.bbc.co.uk/news/uk-politics-45225406

 

Ministers bid to cut most polluting wood and coal burned at home

The sale of wet wood and coal for use in home burners could be phased out in England under government proposals.

 

Bags of logs sold in DIY stores, garden centres and petrol stations often contain wet wood - which is more polluting - and would be banned.

Traditional house coal could be phased out as early as 2019 under Department for Environment, Food and Rural Affairs (Defra) proposals.

Edited August 17, 2018 by SteveA