Firewood Price

[robbo 110]

what an amusing thread!!! im going with same price as last year. £120 per cubic metre- advertised, we haggle!! some people will go with the cheaper stuff, the overall winner will be, as usual; the supplier who supplys a quality product, is reliable & polite...

 

as for costing excercise's to gain an hourly rate..& comparing 'woodmen' to bankers,, different people-different world!!!!!!!

[windfall]

as for costing excercise's to gain an hourly rate..& comparing 'woodmen' to bankers,, different people-different world!!!!!!!

 

well said:thumbup1:

[Michael C]

Can I ask if any of you guys really sit down to do a proper costing?

 

buy-in price or tons/hectare over capital cost land/management/interest of loan

Transport costs in/time/fuel/depreciation of vehicles

Rental value of storage/work space

Packaging costs/advertising/phones/time

Delivery costs incl deprecations and fuels

Banking costs/bad debts etc

Total time:profit ex vat

 

..to work out what you really earn per hour?

 

To be fair to pgkevet, I think what he was actually asking was how many firewood merchants work out their FULL costs or know how much profit (if any) they are actually making. Surely this is vital in any business?

I know there is at least one firewood seller on here that talks about how much an hour he makes selling firewood.

[robbo 110]

To be fair to pgkevet, I think what he was actually asking was how many firewood merchants work out their FULL costs or know how much profit (if any) they are actually making. Surely this is vital in any business?

I know there is at least one firewood seller on here that talks about how much an hour he makes selling firewood.

 

to somebody solely selling firewood, figures may be attainable, probably wildely inaccurate thou, for people selling firewood as well as organising other staff, work etc etc spreadsheet figures arent worth the time of day!!!!!!!!

 

& as for those who talk a good race........ rarely seen at the finishing line first!!

 

i dont know many self-employed people who know how much they do earn per hour, most will know how much they charge per hour.

 

the two are very different!!

 

i may be wrong but overall profit is what i work towards, some weeks that may take thirty hours working, 12 hours on the phone, the following week will be different for sure!! maybe im doing it all wrong!!

[Michael C]

to somebody solely selling firewood, figures may be attainable, probably wildely inaccurate thou, for people selling firewood as well as organising other staff, work etc etc spreadsheet figures arent worth the time of day!!!!!!!!

 

& as for those who talk a good race........ rarely seen at the finishing line first!!

 

i dont know many self-employed people who know how much they do earn per hour, most will know how much they charge per hour.

 

the two are very different!!

 

i may be wrong but overall profit is what i work towards, some weeks that may take thirty hours working, 12 hours on the phone, the following week will be different for sure!! maybe im doing it all wrong!!

 

I'm not suggesting spreadsheets or anything, and overall profit is of course what matters, but if e.g a firewood merchant doesnt take all costs into account, its not real profit!

Which might explain why some people are ultra cheap and others feel they need £140 per M3 to make it pay.

[eggsarascal]

to somebody solely selling firewood, figures may be attainable, probably wildely inaccurate thou, for people selling firewood as well as organising other staff, work etc etc spreadsheet figures arent worth the time of day!!!!!!!!

 

& as for those who talk a good race........ rarely seen at the finishing line first!!

 

i dont know many self-employed people who know how much they do earn per hour, most will know how much they charge per hour.

 

the two are very different!!

 

i may be wrong but overall profit is what i work towards, some weeks that may take thirty hours working, 12 hours on the phone, the following week will be different for sure!! maybe im doing it all wrong!!

 

If your spending 12 hours on the phone some weeks, i'd say there was something wrong!!!!

[robbo 110]

as in every business, everyone has differing overheads etc etc, in my ltd experience the cheap guys sell out early, the middle priced people supply good stuff all winter long, the more expensive fellas.. good luck to em!!!!!!

 

with our costs at the yard etc i couldnt make a profit selling seasoned logs, delivered locally for £80 m3, hence im a bit further up the price scale, im not saying that costs shouldnt be taken into account, they clearly need to be, i was however pointing out that hourly rates, as far as im concerned, are impossible to work out!!!!!!

[robbo 110]

If your spending 12 hours on the phone some weeks, i'd say there was something wrong!!!!

 

oh dear, this is going from bad to worse....... if i have 4 full time members of staff.. or 2 teams let say, the 2 teams could work 6 days per week, in the 6 days per week both teams could achieve 2 finished jobs per day, more some days, less some more weeks......... 12 hours in a week on the phone to arrange.. quoting, checking the teams, checking the customers, discussing/disregarding/carrying out the customers un-quoted work, invoicing the work, chasing payment for the work, checking the book-keeper has made that paye payment, arranging advertising, next weeks work, booking the vans in for a service blah blah blah, 12 hours on the dog & bone in one week sometimes doesnt go very far mate!!!!!!!!!!!!!!!!!!

[eggsarascal]

oh dear, this is going from bad to worse....... if i have 4 full time members of staff.. or 2 teams let say, the 2 teams could work 6 days per week, in the 6 days per week both teams could achieve 2 finished jobs per day, more some days, less some more weeks......... 12 hours in a week on the phone to arrange.. quoting, checking the teams, checking the customers, discussing/disregarding/carrying out the customers un-quoted work, invoicing the work, chasing payment for the work, checking the book-keeper has made that paye payment, arranging advertising, next weeks work, booking the vans in for a service blah blah blah, 12 hours on the dog & bone in one week sometimes doesnt go very far mate!!!!!!!!!!!!!!!!!!

 

Without going into detail anymore you do it your way and i'll do it mine.

 

But at the end of the day my price will be £130-£140 per cube this winter.

[pgkevet]

To be fair to pgkevet, I think what he was actually asking was how many firewood merchants work out their FULL costs or know how much profit (if any) they are actually making. Surely this is vital in any business?

I know there is at least one firewood seller on here that talks about how much an hour he makes selling firewood.

 

It's not a matter of being fair:001_smile:

Any business really ought to work out its costings properly. What that business does with the results is another matter but you can work it out whether you have one employee or hundreds, whether you do one type of job or multitask within your profession.

Even if you think it's a waste of time its a good exercise because it should show you where to tidy up your act. This isn't something you do for the taxman its something you do for yourself.

If all you want to do is run around the woods chopping stuff and have enough money in the bank to eat then your business isn't a business its a hobby:001_smile:

I used to do this breakdown exercise every year or two (should have done it more often) and I used to keep a track of individual employee gross AND net since some were capable of work that others couldn't do.

If you keep proper accounts then charting it from year to year will quickly tell you where progressive waste is happening -

simple example: phone call costs disproportionate to client numbers coming through the door and you know staff are nattering on the phone and losing business through clogged lines or missed calls instead of efficiently dealing with enquiries.

If you're spending too long on the phone and not enough time producing then you need a better phone system or a secretary or educate your clients to order by email or answering machine.

If your hourly earnings are worse than a hod-carrier then go get a job as a hod-carrier and chop wood in your spare time or rent your woods out for paint-balling:001_smile: