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Softwood v Hardwood profit.


Michael C
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From the point of view of buying in cord per ton, and end profit, is hardwood worth paying twice the price for?

Seems to me that softwood cord is half the price of hardwood cord, but the difference in price in what people are charging for a processed m3 of either doesnt seem that big. :confused1:

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When I did my business plan in 2010 I concluded there wasn't much difference in profit from selling hardwood or softwood with both varieties having better profitability than mixed wood. So, I plumped for 100% hardwood blends. This assumes you are buying in the cord rather than felling it yourself of course. There was, at that time, slightly more profit from softwood as it's cheaper and splits to a larger volume but the retail price is lower than hardwood in these parts and it's harder to move. The recent hike in hardwood pricing relative to softwood now does deliver a significantly higher margin but I work out I'd need to move 33% more volume of softwood to deliver the same gross profit, thats a lot more sweat in preperation. The main problem for all retailers is that everyone wants hardwood at softwood prices.

 

The other consideration for softwood that turned me towards hardwood only is that it takes a lot longer to season properly.

 

So, I'm sticking with less profitable hardwood - for the time being.

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From the point of view of buying in cord per ton, and end profit, is hardwood worth paying twice the price for?

Seems to me that softwood cord is half the price of hardwood cord, but the difference in price in what people are charging for a processed m3 of either doesnt seem that big. :confused1:

 

 

There is not much of a difference in the cost of processing is there?

If the wood had the same dimensions, you'd need the same amount of cuts, the same amount of splitting, moving, stacking etc. Theoretically cutting softwood would use slightly less fuel than hardwood but the difference is marginal.

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There is not much of a difference in the cost of processing is there?

If the wood had the same dimensions, you'd need the same amount of cuts, the same amount of splitting, moving, stacking etc. Theoretically cutting softwood would use slightly less fuel than hardwood but the difference is marginal.

 

Its much easier to get large quantities of smaller diameter, uniform softwood than hardwood.

 

Making processing with a processor much easier and faster.

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Its much easier to get large quantities of smaller diameter, uniform softwood than hardwood.

 

Making processing with a processor much easier and faster.

 

 

I know easy processable softwood is easier to get, but when comparing like with like, would there still be much of a difference in processing costs?

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