Starting out

[samtheman365]

Whether you want to make a wage or a return on investment, the figures still need to add up. I would have spent 40 k very differently in your position.

 

As I said though, I hope it works for you.

 

I am open to any other business ideas?

[csservices]

Thats the way to do it I reckon mate.

 

Everyone and his dog seems to have bought a firewood processor recently. The problem with that is they aren't going to be worth anything second hand, as there will be so many about. Investing in machinery is usually good practise to reduce your exposure as its only really the depreciation you will lose. However, if the value of the machinery drops rapidly, your exposure rises rapidly too.

 

Key to selling firewood I reckon is dont spend any money on it, keep it simple, use the kit you have already and get the timber for free.

 

Be very interesting to see how many firewood processors come up for sale after next winter.

 

I work on the K.I.S.S principle, plus by not having a firewood processor it means I can handle a wider range of timber rather than having to find straight stuff of a certain diameter

[baz]

It seems the thread has fallen from sharing gems of experience to one verging of pure pessimism about returns available, or lack thereof. I still think a good product backed by a top level of service will always find it’s niche be it in wood or any other commodity. If too many get into the market then it should be the inconsistent suppliers that fall first. That’s never a bad thing unless it affects you.

 

Anyway, I'm moving forward at a fast pace, I’m all set to roll out and lets see if my new processor, being delivered next week will end up in the classified section next year. I’ve gone for a PTO driven Japa 700 that my vintage Ford tractor will be coupled to. Last weekend, I went out and purchased an ageing but very tidy Manitou MTL 523 that’ll be equally as useful around the homestead as it will be moving the wood around. There are 200 reclaimed pallets arriving tomorrow at a good price. A tip I can share is that I talked with a few bag suppliers for both bulk delivery bags and vented storage bags and have ended up going with Bulkbag Containers Ltd. Gent there is called Hamish (01382 823824) who is very helpful and they don’t have large minimum order quantities that others apply. Pricing is pretty fair too so for anyone buying bags they are well worth talking to if you haven’t already. The bags will be coming week of the 17th along with 4 bulk loads of wood from 2 suppliers for the initial supplies.

 

At least with a years seasoning in the pipeline, I’ve got plenty of time to plan my retail strategy.

[renewablejohn]

I am open to any other business ideas?

 

Buy a wood gasifier for your tractor and a pto generator and then sell your electric into the grid.

[samtheman365]

It seems the thread has fallen from sharing gems of experience to one verging of pure pessimism about returns available, or lack thereof. I still think a good product backed by a top level of service will always find it’s niche be it in wood or any other commodity. If too many get into the market then it should be the inconsistent suppliers that fall first. That’s never a bad thing unless it affects you.

 

I could not agree with you more:thumbup:

[csservices]

It seems the thread has fallen from sharing gems of experience to one verging of pure pessimism about returns available, or lack thereof. I still think a good product backed by a top level of service will always find it’s niche be it in wood or any other commodity. If too many get into the market then it should be the inconsistent suppliers that fall first. That’s never a bad thing unless it affects you.

 

Anyway, I'm moving forward at a fast pace, I’m all set to roll out and lets see if my new processor, being delivered next week will end up in the classified section next year. I’ve gone for a PTO driven Japa 700 that my vintage Ford tractor will be coupled to. Last weekend, I went out and purchased an ageing but very tidy Manitou MTL 523 that’ll be equally as useful around the homestead as it will be moving the wood around. There are 200 reclaimed pallets arriving tomorrow at a good price. A tip I can share is that I talked with a few bag suppliers for both bulk delivery bags and vented storage bags and have ended up going with Bulkbag Containers Ltd. Gent there is called Hamish (01382 823824) who is very helpful and they don’t have large minimum order quantities that others apply. Pricing is pretty fair too so for anyone buying bags they are well worth talking to if you haven’t already. The bags will be coming week of the 17th along with 4 bulk loads of wood from 2 suppliers for the initial supplies.

 

At least with a years seasoning in the pipeline, I’ve got plenty of time to plan my retail strategy.

 

Not being pessimistic mate, been in the job long enough to know, less you outlay the quicker you get it back, working on the 40k figure you'd have to sell 500 cubic metre loads at £80 a load just to get the investment on equipment back and that obviously doesnt include outlay on labour and timber, I agree that good stuff will always sell, at one time I was the only person round here dry storing logs before sale, I even knew one lad who was going into the woods and felling as the orders came in and taking it out green and wondered why he didnt get repeat custom

[DN22 Gardening]

sorry lads, i'm one of your "every tom dick and harry's"

 

we used to give all our arb waste away, use it ourselves, and generally considered it a nuisance, until 18 months ago.

 

we had a yard full of seasoned stuff to clear, and got good money for it. sold around 50 loads.

 

we now hand process the stuff as it comes in, and also differenciate between species, i.e. ash can be sold quicker. as the money comes in from the sale of the logs, that'll be put to one side for machinery.

first on the list is a telehandler/bobcat as we store the logs in 1.2mtr3 onion crates.

we're just building a powered log splitter and small conveyor, to fill the crates

next on the list will be a tractor and processor.

 

to me investing 40k into a seriously labour intensive business is the wrong way to go about it. that money could buy a business which is less likely to break your body...lol

 

but as everyone on here says. i really do hope it works out. with the ammount of log burners my mates fitting atm there'll be customers a plenty

 

 

[arbclimber]

I think the general concensus seems to be that if you are getting the timber from work you are already doing, good times.

If you need to buy the timber in, be very careful about spending much money on it, as you are competing with a lot of people with much lower expenses, to supply an identical product.

 

Machinery such as Processors are really to assist when you can no longer fulfill demand using cheaper methods, and when, by not investing you will suffer a detrimental financial position.

 

From my point of view, you invest in machinery when the phone wont stop ringing and you are up to your eyeballs in people wanting to buy the logs you have processed cheaply. When you can no longer keep up with demand, then its the time to be spending your cash.

[baz]

 

The first m3 bagging off the production line. Splitting oversized logs to suit the processor has proved to be endless hours of fun.

Edited May 21, 2010 by baz

[Dave Martin]

Just read this thread again and I`m now well over 40k and not sold a log yet ... barn on its way up .... oh dear oh dear oh dear