Why so much Firewood kit for sale?

[eggsarascal]

I think I have the most expensive logs in the area and I am not making what I would call a good margin once you take into account delivery costs etc.

 

I just dont know how people can buy in cord at £55 a ton, so about £35 a cube, then process it, store it for 9 - 12 months then deliver it, all for £25 a cube plus a bit of VAT. I can buy it in processed at about £45 a cube + VAT. Did buy in 40 cube last year and will probably buy in 60-80 cube this year depending on how much of my own cord stock that I buy in I get processed.

 

No one seems to be prepared to take the lead and say thats my price, take it or leave it. Usually the early season price is set by the Arb guys or farmers sons after a bit of pocket money who get some timber for free or take it in part payment for arb work. Usually the quality is average at best. Once that has gone then its only the better firewood guys who have stock remaining, they will be buying in cord and should be charging a far higher price than they are if they want to generate the capital to grow their businesses organically.

 

Last year I generated enough to pay for my equipment, this winter I hope to generate enough to be able if necessary to invest in a far bigger processor and maybe a hydraulic deck.

 

A

 

When I last bought in hardwood cord at £45 a ton delivered (90% processor friendly) I could not make it pay (a good rate/return). After processing, running the tractor, paying rent on the yard/barn it was not worth the effort.

[farmer_ben]

When I last bought in hardwood cord at £45 a ton delivered (90% processor friendly) I could not make it pay (a good rate/return). After processing, running the tractor, paying rent on the yard/barn it was not worth the effort.

 

I think the rent is the killer, if I look at the good firewood guys around me (and I like to think I'm included) they all have yards that are part of somethng else...farm yards, arb guys with a yard etc etc. I dont know anyone who soley rents a yard for firewood. Take the rent out of the equation and you CAN make a decent margin on firewood, just have to be clever, know your costs and set a price that enables a profit to be made.

[Hodge]

I think the rent is the killer, if I look at the good firewood guys around me (and I like to think I'm included) they all have yards that are part of somethng else...farm yards, arb guys with a yard etc etc. I dont know anyone who soley rents a yard for firewood. Take the rent out of the equation and you CAN make a decent margin on firewood, just have to be clever, know your costs and set a price that enables a profit to be made.

 

I agree, I am lucky enough to own my yard but if I had to rent I think it would kill it.

 

 

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[eggsarascal]

I think the rent is the killer, if I look at the good firewood guys around me (and I like to think I'm included) they all have yards that are part of somethng else...farm yards, arb guys with a yard etc etc. I dont know anyone who soley rents a yard for firewood. Take the rent out of the equation and you CAN make a decent margin on firewood, just have to be clever, know your costs and set a price that enables a profit to be made.

 

I think you are bang on the money Ben. When I was paying the farm manager cash to rent the yard/barn I could make it pay.....But the land agent had to get involved and he wanted top dollar for the barn/yard, which is fair enough but the place was hard(is) to access and not the most secure (I got done over when I was there). That yard still stands empty today!

[Logsnstuff]

I pay 2.5k for an acre in the middle of a farm no sheds though. pay £35-£50 ton usually for mixed processor size and sell it £94 0.73m3 (90x90x90) 15-20% mc there's 20 other guys around selling for £50 a cube but 35% mc + they don't get people want seasoned logs not cut to order on the delivery day, they want it bagged not tipper loads for the mess, work smarter not harder as I read here earlier I work 9-5 5 days while the other guys are doing 7-6, 6 days and more and making less money. secret is break out of the tesco mentality that people will only buy cheap because for everyone who wants cheap there's at least 1 other who wants quality.

[StephF]

Yes, it's hard in every way to make money out of firewood! reading the thread, everyone has similar problems, Firewood is our 'bread and butter' income through winter, and we dont aim at the 'Tesco' mentality customer,we try to keep the 'good' ones happy and they come back year after year. we make enough to re-invest in kit, but there is always thought on 'how to make this easier', we definately have not got there yet after 25 years!! I think that is because everything is always changing so much, prices, demand, whats available, customers etc.

[firewoodman]

Processor sold tractors sold big timber trailer sold amount of cord processed this year 0 not missing the back ache yet but who knows

 

ha ha, me too steve, not looking back either, kept the table top splitter and do firewood for myself and 3 customers only

 

I only do it when quiet, so 1 week so far since January

 

I earn more money, and easier money pulling weeds and cutting grass:thumbup:

[firewoodman]

Yes, it's hard in every way to make money out of firewood! reading the thread, everyone has similar problems, Firewood is our 'bread and butter' income through winter, and we dont aim at the 'Tesco' mentality customer,we try to keep the 'good' ones happy and they come back year after year. we make enough to re-invest in kit, but there is always thought on 'how to make this easier', we definately have not got there yet after 25 years!! I think that is because everything is always changing so much, prices, demand, whats available, customers etc.

 

'how to make this easier'..................... let someone else do it!!

after 12 years I gave up, 25 years, well I salute you!!!

[StephF]

'how to make this easier'..................... let someone else do it!!

after 12 years I gave up, 25 years, well I salute you!!!

 

:lol:But what else could we do, too old to change paths now!!

[gensetsteve]

ha ha, me too steve, not looking back either, kept the table top splitter and do firewood for myself and 3 customers only

 

I only do it when quiet, so 1 week so far since January

 

I earn more money, and easier money pulling weeds and cutting grass:thumbup:

 

 

Snap still got my vertical splitter for my use. There are alot of other jobs that pay more money in fact most of them