Firewood sideline - does this sound like a reasonable plan?

[Big J]

Just wanting to get an honest opinion on whether you folks regard this as a daft idea or not.

 

I have been thinking about starting to produce firewood in a more organised fashion than simply processing offcuts. I barely advertise the stuff and it's selling quite well. Demand exceeds supply.

 

I now finally have the screw splitter up and running (will post photos) which is excellent in certain timbers. It basically won't handle knotty hardwood as it's belt driven and simply comes to a stop. However, straightish grained hardwood or most softwood it's very quick with.

 

So the plan is to buy softwood chip wood and process it into logs. I have a new kiln under construction that I can dry firewood in too, so it gives me a market niche that is presently not catered for.

 

I have worked out that I can produce, dry and deliver a cubic metre for £25. That's all costs included - labour, fuel, machine wear and tear, electricity for the kiln, yard rental costs - the lot. It also takes me a maximum of one hour to produce, load to the kiln, unload to the trailer and deliver a cubic metre.

 

So if I sell for £55 a cubic metre (which seems quite reasonable to me), I make a clear £30 an hour after costs, and it means I'm around at the yard a lot more for calling sawn timber customers.

 

Am I mad for even contemplating entering the firewood game?!

[Tom D]

Yes.

 

Stupidly people just won't buy softwood......and I am selling hard wood delivered for £60 a cube...

 

Buy an artic load of ready split wood from me for £50 a cube and sell it in bulk bags for £50 each... thats £90 a cube! £40 profit each time......

[mendiplogs]

Just wanting to get an honest opinion on whether you folks regard this as a daft idea or not.

 

I have been thinking about starting to produce firewood in a more organised fashion than simply processing offcuts. I barely advertise the stuff and it's selling quite well. Demand exceeds supply.

 

I now finally have the screw splitter up and running (will post photos) which is excellent in certain timbers. It basically won't handle knotty hardwood as it's belt driven and simply comes to a stop. However, straightish grained hardwood or most softwood it's very quick with.

 

So the plan is to buy softwood chip wood and process it into logs. I have a new kiln under construction that I can dry firewood in too, so it gives me a market niche that is presently not catered for.

 

I have worked out that I can produce, dry and deliver a cubic metre for £25. That's all costs included - labour, fuel, machine wear and tear, electricity for the kiln, yard rental costs - the lot. It also takes me a maximum of one hour to produce, load to the kiln, unload to the trailer and deliver a cubic metre.

 

So if I sell for £55 a cubic metre (which seems quite reasonable to me), I make a clear £30 an hour after costs, and it means I'm around at the yard a lot more for calling sawn timber customers.

 

Am I mad for even contemplating entering the firewood game?!

 

HI BIG J if your happy with what get for logs then thats good theres all ways some may say your mad but they said that when i like to hire out my 880 it all down you if you get timber free it ok well done there mate jon

[gensetsteve]

I would do 4 bags if it flys out do another 20 then recheck your costings. logs often take longer than you think. Logs as a side line when you get enough free wood is normally good, it just goes down hill when you start buying in timber to meet demand. I found as things got busy I had less time to quote and pursue proper work.

[rovers90]

"So the plan is to buy softwood chip wood and process it into logs

 

I have worked out that I can produce, dry and deliver a cubic metre for £25."

 

At what price do you expect to buy softwood in. £30-35 per ton seems the going rate around us and using the rule of thumb of 1.5 cube to a ton that would give you a timber cost of £20 at best only leaving you £5 to cover everything else.

[Woodworks]

It sounds like a reasonable plan but would you not do better buying in hard wood and selling kiln dried hardwood as a premium product for £100 per M3 or more? We are selling air dried 20-25% for £90 so I would have thought £100 per M3 for kiln dried would be very reasonable.

[Big J]

Good and varied feedback - thankyou!

 

Tom - I'm thinking of the niche kiln dried lot, but at the same time charging pretty much market rate. I can extract around a tonne of water a week from 16 cubic metres of loose firewood in the new kiln at a cost of about £5 a cube, so it's quite a quick way to produce firewood without having to sit on too much stock. I've not had anyone specify hardwood yet - perhaps folk in West Lothian are less picky!

 

Jon - thanks mate!

 

Steve - I am all to aware of your reservations. It's a tricky one, and I'd never have thought myself prepared to sell logs as anything more than a sideline, but with a decent sized yard, the right equipment (splitter, tipping trailer and forklift) and a reasonable supply, it's looking tempting. I think I'm just getting bored of forestry!

 

Rover - £19 a tonne was pretty standard earlier in the year for stuff going to biomass. Should be able to get it for close to that.

 

Woodworks - it's the speed of turn around that appeals, as well as the cost. Softwood is easier to process, dries far far quicker than hardwoods and is much cheaper to buy.

[Marko]

Yes.

 

Stupidly people just won't buy softwood......and I am selling hard wood delivered for £60 a cube...

 

Buy an artic load of ready split wood from me for £50 a cube and sell it in bulk bags for £50 each... thats £90 a cube! £40 profit each time......

 

If you are selling hardwood at £60 a cubic meter then why on earth would your customers want to consider softwood. I don't think they are stupid.

 

I make the proposed mark up nearer £17.50 a bulk bag (less the cost of the bag, handling, and delivery). Sweating yourself and your assets for the minimum wage is not my idea of fun... personally I would sooner pick up a bit of casual work stacking shelves in ASDA.

 

It all boils down to the selling price £60 a cubic meter for seasoned, split, delivered hardwood. If that can change then it all begins to make sense.

[ecotreecare]

Sounds reasonable to me... What is the outlay for the project. Just ou of interest what type of kiln have you got/ getting? I'm building one ATM.

[Mr Ming]

£19 a tonne was pretty standard earlier in the year for stuff going to biomass. Should be able to get it for close to that.

 

But that £19 a tonne at roadside you will need to factor in haulage surely? which would be around another £5-10 a tonne give or take.