My log pricing this year

[gensetsteve]

As many know we have almost packed logs in altogether but thought I would show my costings this year might help keep the prices up so its easier to make a living.

 

1 Tonne of delivered cord = £65

Bar oil, chains and equipment £10

Road diesel £10

3 hours labour inc del sharpening and clearing up £30

Total £115

 

You now have 1.5 cubic metres of loose logs in your truck and its cost you £115 now most businesses want to make a 100% mark up on stock so why dont we. You will notice above I have included nothing for rent, rates, insurance or vehicle depreciation and possibly many other costs .

 

£115 + 100% mark up = £230

 

Now round our way they sell 1.5 cubic metres for £100 thats why we have given it up.

[Johnnyboxer]

A stark reality Steve

 

I can see your reasoning clearly

 

However if demand increases (more Stove installations) the log price should rise significantly - should it not?

[Stephen Blair]

I used to be £240 for a ton.

Still never sold enough to make it worth while, it gave someone something to do before 9am and from 3.30pm to 5 pm.

[TreeswingerPerth]

That's the problem when you have to buy wood in , but the odd tree for free fairly makes a difference .

[Logsnstuff]

secret is be a tree surgeon get paid £200 to cut it down and dump the waste before you start. cash in hand guys killing us yet know one ever reports them.

gets busy round our industrial estates on the weekends also as ppl nick all the pallets for their fires too. and its not unknown for people to just go into woodlands and cut trees down without permission, our accountant has small parcel of birch and caught several people cutting trees down for logs.

 

retail £94.00 .073m3 12%mc and £38 barrow bags and being told were far too expensive, the competition 2.5m3 £160 38%mc and telling us they have to use coal to make it burn.

 

Kindling buy it in £1.50 + vat a net retails £4.95 or 5 for £18.00

 

delivery vehicle avg 21 mpg breakdowns alot roughly £4.5k a year 5yr old van

Vehicle finance £1,800 a month

 

circular blades £120 sharpening a year

Red diesel 800ltr a fortnight Hydraulic hoses, hydraulic oil, filters

 

bag £5.50 each nets £0.18 each

cord £52 per ton delivered euroforests £35 never appeared

Advertising £1,500 a year

Petrol and 2 stroke £160 a month

saw servicing/repair £180 last month

saw chain imported from baileys so import duty etc approx £350 a reel

tarpaulins about £3.5k a year can't afford a shed round these parts

 

and many more costs i dont want to think off or it will just depress me more.

[gensetsteve]

secret is be a tree surgeon get paid £200 to cut it down and dump the waste before you start. cash in hand guys killing us yet know one ever reports them.

gets busy round our industrial estates on the weekends also as ppl nick all the pallets for their fires too. and its not unknown for people to just go into woodlands and cut trees down without permission, our accountant has small parcel of birch and caught several people cutting trees down for logs.

 

retail £94.00 .073m3 12%mc and £38 barrow bags and being told were far too expensive, the competition 2.5m3 £160 38%mc and telling us they have to use coal to make it burn.

 

Kindling buy it in £1.50 + vat a net retails £4.95 or 5 for £18.00

 

delivery vehicle avg 21 mpg breakdowns alot roughly £4.5k a year 5yr old van

Vehicle finance £1,800 a month

 

circular blades £120 sharpening a year

Red diesel 800ltr a fortnight Hydraulic hoses, hydraulic oil, filters

 

bag £5.50 each nets £0.18 each

cord £52 per ton delivered euroforests £35 never appeared

Advertising £1,500 a year

Petrol and 2 stroke £160 a month

saw servicing/repair £180 last month

saw chain imported from baileys so import duty etc approx £350 a reel

tarpaulins about £3.5k a year can't afford a shed round these parts

 

and many more costs i dont want to think off or it will just depress me more.

 

If you can make a 250% mark up on kindling may be its worth getting logs the same way. Alot of cheap imported timber around. Timber merchants are pricing cord so high what choice do you have.

[Nick Watkins]

secret is be a tree surgeon get paid £200 to cut it down and dump the waste before you start. cash in hand guys killing us yet know one ever reports them.

gets busy round our industrial estates on the weekends also as ppl nick all the pallets for their fires too. and its not unknown for people to just go into woodlands and cut trees down without permission, our accountant has small parcel of birch and caught several people cutting trees down for logs.

 

retail £94.00 .073m3 12%mc and £38 barrow bags and being told were far too expensive, the competition 2.5m3 £160 38%mc and telling us they have to use coal to make it burn.

 

Kindling buy it in £1.50 + vat a net retails £4.95 or 5 for £18.00

 

delivery vehicle avg 21 mpg breakdowns alot roughly £4.5k a year 5yr old van

Vehicle finance £1,800 a month

 

circular blades £120 sharpening a year

Red diesel 800ltr a fortnight Hydraulic hoses, hydraulic oil, filters

 

bag £5.50 each nets £0.18 each

cord £52 per ton delivered euroforests £35 never appeared

Advertising £1,500 a year

Petrol and 2 stroke £160 a month

saw servicing/repair £180 last month

saw chain imported from baileys so import duty etc approx £350 a reel

tarpaulins about £3.5k a year can't afford a shed round these parts

 

and many more costs i dont want to think off or it will just depress me more.

 

If you don't count the money you are getting paid to cut down the tree, based on your quoted figures that's 377 bags to break even (give or take) No wonder you don't like to think about it.

[Logsnstuff]

If you don't count the money you are getting paid to cut down the tree, based on your quoted figures that's 377 bags to break even (give or take) No wonder you don't like to think about it.

 

I wish I was getting paid for cutting trees,I'm purely firewood production for now although I'm considering putting the forwarder back to contracting the harvester is too old and wouldnt take full time use unfortunately. at least the estate where we are gets a lot of blow so we had 40/50 ton come in this week foc mix of oak syc and ash which helps a bit but its not great for the processor wriggly treetops.

[Backpain]

I completely understand the frustrations people are feeling. I suppose its market forces keeping the prices down. I'm sure the price of split seasoned hardwood should be worth more than £75 per cubic meter but if I try to stretch the price people will just go to the LOGS £65 load man!!

I buy my cordwood in pretty cheap and usually get around 3 cube per tone which I believe gives a good uplift. We're only small selling around 50 to 70 tons per year and returning at least 50% profit on sales minus cost which in most industries is high.

I've worked in other industries where the norm is 17%.

Its hard work but what a way to earn a living.....

[gensetsteve]

I completely understand the frustrations people are feeling. I suppose its market forces keeping the prices down. I'm sure the price of split seasoned hardwood should be worth more than £75 per cubic meter but if I try to stretch the price people will just go to the LOGS £65 load man!!

I buy my cordwood in pretty cheap and usually get around 3 cube per tone which I believe gives a good uplift. We're only small selling around 50 to 70 tons per year and returning at least 50% profit on sales minus cost which in most industries is high.

I've worked in other industries where the norm is 17%.

Its hard work but what a way to earn a living.....

 

3 cube per tonne you must be selling balsa do you include your labour in the 50% profit or do you make 50% after you have paid staff or your self