Starting Up

[Steve F]

Hello, new to this forum although have been reading post's for a while now. Hopefully this won't get shot down in flames. I work for myself as a joiner and have been thinking for a while of supplying firewood not on a full time basis but weekends, evenings. I got a few contacts for supplying cord wood and I'm in the process of trying to get any grant (don't ask don't get). I can do this if I have quiet periods and at weekends. I don't expect to be busy straight away and will need to get stock pile built up and properly seasoned before i can start supplying so it would more than likely be 2013. Based in scottish borders 25mins south of Edinburgh. Market hopefully would be local as were a rural town. Would look to advertise in local newsletter and shop fronts within 15 radius. So what i guess i'm looking for is any advise good or bad apprecaited.

 

Steve:

[easy-lift guy]

establish an operating budget, and know your competition and what they charge for their product. Set reasonable goals as far as where you want to be in year 1 and 3 and 5 and always adjust as needed base on market conditions and operating cost. Don't be greedy and grow slowly and provide the best customer service you can, always treat your customers as you wish to be treated, otherwise don't go into business for your self.

You work for yourself so don't make/take business decisions personally, it usually turns around and bites you in the butt.

easy-lift guy

[Stereo]

Don't under-estimate your costs. Take it ALL into account and write it down. You might be suprised how many loads you have to deliver before you are into profit per week.

 

Don't buy flashy equipment and get into debt using the excuse that the business needs it. Some equipment of course is required and good equipment can make a business more profitable but many first time business owners go and splash the cash on every gizmo going. I've seen it time and again and they spend the next 2 years paying it all off.

 

Don't under-price just to get sales. Your competition will do the same to get them back. Then you have to cut again. Race to the bottom. No profit for anybody.

 

Only supply a product you would be happy with yourself. Don't try to cut corners, be honest with your customers. Make it clear what you are providing and at what cost.

 

Smile when you deliver, even if you're having a naff day.

[Steve F]

Taken on board thanks for responses. Where I'm based word goes round fast if your any good but it works the same if your bad so keeping customer happy is key!

[normandylumberjack]

I started a similar bussiness a few years ago, sopplying firewood to ex-pats in Normandy, France.

The biggest cost for me is transport, I think that i underestimated the true cost of keeping a truck going in harsh conditions and the quantity that i could deliver in one hit.

It may sound simple, but multi handling the wood is a killer on time and profit.

I found i would cut the timber in the forest,stack to season and be measured. handled once. load into truck/trailer- twice, unload at my yard- 3 times, load onto saw horse- 4th time, load into trailer 5 times, unload at customers address -6. By doing it this way you have handled 6m3 for every 1m3 sold. Needless to say you find a better way.

Lastly, and I dont want to cause offence, the only complaints i ever had from customers were those from the north of england. Customer relations are my no1 priority, but for some reason things are never good enough for some.

Some folks would complain if you hung 'em with a brand new rope!

[Tom D]

Where a bouts are you Steve?

 

Im based in the eastern borders, we have a firewood mountain and have just invested in a processor and big splitter, I am looking for a wholesale outlet for my logs. Would you be interested in buying bulk bags at a wholesale rate and selling them on. We struggle to find the time for deliveries and have customers already. PM me if you are interested.

[Steve F]

Based at Lauder, Tom. I saw a post you put up last week regards how many tons! You keep your stuff at Willie Russells at Townhead. Doing a joinery job for Willie next week! It's early investigation stages for me at the moment regards this processing/supplying. I take it you cut, split and have it ready for going out but struggling to find the time to deliver?

[Tom D]

Thats it in a nutshell. If someone wants to buy off me in bulk and do the deliveries they can charge what they like. I was doing a £90 for 1st bag 70 for second 50 for 3rd and so on. even so people still kept asking for 1 bag! trying to fit that around the rest of the business is not easy. I will see how many bags we can fill in a day with the new kit and work out and work out a wholesale price from that. it should be £30-45 a bag.

 

How long are you going to be over here? If you want to meet up and have a chat let me know. I will also be looking to hire out the processor and splitters when we are not using them....

[Steve F]

Over monday till wed at Howpark though but would be up for a blether if around

[Tomatin Firewood]

Hi Steve,

 

I just started up in November. I invested quite a bit! One of those idiots buying all the flashy tools! I bought a toyota hilux and a tipping cage trailer (2nd hand) and a Taijfun firewood processor (PTO of tractor). Trying to diversify the farm a bit!

 

I am quite lucky as I already have a large shed to store wood (albeit will have to modify it to allow more ventilation) and a tractor.

 

The advice given to me by one harvester was to go for largest processor you can afford which I have to say is not bad advice. My one does up 38cm which processes the bulk of timber that I have had in to date. The rest of it I split with an electric splitter. I am quite pleased with my processor as it has really sped things up for me, and there would have been no way I could have kept up with demand without it.

 

If possible try and source deadwood or wood that is already seasoned if you need to kick start things. Also if you are buying by weight the more seasoned the wood you can buy the better, otherwise you are buying expensive water!

 

Fuel is a major cost for me, as is my loan repayments and my processor uses fair amount of oil (1-2 25l drums of oil/ month). I have now got better only having tractor and processor on when actually processing and after every 2m cubed I turn off, tidy up and get my next line of wood ready and repeat.

 

I think you do have offer competitive pricing initially in order to get your foot in the door and I think good customer service is really important.

 

Getting set up is quite an investment and I am currently just trying to reinvest in more stock all the time. I nearly ran out of seasoned wood in January and that would have been really embarrasing!

 

I also think marketing is crucial, I advertise in the local papers, gumtree and Google search and whilst this is a cost to date I have found it has paid for itself, particularly when customers are repeat business.

 

I am sure the experienced members here will be able to give far better advice than me, but I think like any business you do have to invest in it to begin with and then once established reap the rewards.

 

More and more people starting to take up wood fuel again and if domestic RHI comes out think there will be even greater demand.

 

Regards

 

James