It's Only Money?

[2dogs]

Now that I'm healthy again and I got my truck back I went to the gas station with it. Bad idea. Diesel was $4.30 per gallon!!! This will definately put a cramp in my style. Then I picked a new ignition modual for my Husqvarna 394...$92.50. I already spent nearly $300.00 for a rebuilt steering box this week.

Some days I should just stay in bed.

I know I'm not the only one feeling the pressure at the pump. I hope any contracts anyone here has, have a separate rider for fuel.

 

[Turkeyslayer]

 

[Gologit]

Kvetch, kvetch, kvetch. :msp_biggrin:

And yes, there will be fuel surcharges when diesel hits a certain price. They'll be enacted after we've suffered for a while. LOLOL...the formula is so complicated that I'm not sure anybody understands it including the bean counter who wrote it. What it amounts to is that we loggers get a little extra to offset increased fuel costs but not enough to actually cover the entire amount of the increase. It helps...and that's about all.

The company, in turn, increases the cost of their lumber when it goes to the wholesaler. Again, not enough to cover all the costs but enough to get by. The wholesaler passes on his increased costs to the retailer who in turn passes on the extra cost to the consumer.

See a pattern here? We all take a hit and absorb some of the extra costs. We all tighten our belts a little and expect less net profit. Except for the oil companies, that is. Their net profits are still in the billions of dollars. That's obscene...and, worse than that, it's just plain wrong.

And, as long as I'm ranting...a major oil company just completed a huge new corporate building in the Bay Area. Huge as in many thousand square feet, three story building. It was built primarily with Canadian lumber and Chinese plywood.

 

[Blakesmaster]

After 2 months of sitting around and drinking beer I did a job Monday morning. Total came to 200 bucks at the pump...to go to work. I looked at the attendant and said, " I coulda stayed home and got drunk for 10." Oh well.

 

[atvguns]

Kvetch, kvetch, kvetch. :msp_biggrin:

And yes, there will be fuel surcharges when diesel hits a certain price. They'll be enacted after we've suffered for a while. LOLOL...the formula is so complicated that I'm not sure anybody understands it including the bean counter who wrote it. What it amounts to is that we loggers get a little extra to offset increased fuel costs but not enough to actually cover the entire amount of the increase. It helps...and that's about all.

The company, in turn, increases the cost of their lumber when it goes to the wholesaler. Again, not enough to cover all the costs but enough to get by. The wholesaler passes on his increased costs to the retailer who in turn passes on the extra cost to the consumer.

See a pattern here? We all take a hit and absorb some of the extra costs. We all tighten our belts a little and expect less net profit. Except for the oil companies, that is. Their net profits are still in the billions of dollars. That's obscene...and, worse than that, it's just plain wrong.

And, as long as I'm ranting...a major oil company just completed a huge new corporate building in the Bay Area. Huge as in many thousand square feet, three story building. It was built primarily with Canadian lumber and Chinese plywood.

How does the farmer get tapped into this surcharge thing to offset some of his cost

 

[Gologit]

How does the farmer get tapped into this surcharge thing to offset some of his cost

Dunno. The only kind of agriculture I know anything about is raising cows. We all know how that pays out.

How does a guy with timber land get paid for not growing trees? I'd like to get in on that program. :msp_rolleyes:

Hey, at least you can eat your crop.

 

[redprospector]

Now that I'm healthy again and I got my truck back I went to the gas station with it. Bad idea. Diesel was $4.30 per gallon!!! This will definately put a cramp in my style. Then I picked a new ignition modual for my Husqvarna 394...$92.50. I already spent nearly $300.00 for a rebuilt steering box this week.

Some days I should just stay in bed.

I know I'm not the only one feeling the pressure at the pump. I hope any contracts anyone here has, have a separate rider for fuel.

I feel your pain. I went to get diesel on Tuesday.................$450.00!! Going back for more in the morning.
The skidder didn't burn much this week. It needed a new hydraulic pump...............$2495.00!!
No seperate riders for fuel costs on this contract. I'll have to depend on the compasion of the State Forestry. Hahaha!
Oh well, like you said. It's only money. I'll be out of it soon, and I can quit worrying about it.

Andy

 

[dingeryote]

How does the farmer get tapped into this surcharge thing to offset some of his cost

:msp_lol::msp_lol::msp_lol::msp_lol:

I just bought spring fuel. You figure out how it is the shiney shoes crowd can drop prices on our end, while jacking thier end with fuel excuses, lemme know.


Stay safe!
Dingeryote

 

[madhatte]

Oh snap. And we just sold a sale for almost the recent historical high, firing up new hopes of financial recovery. This smells like dirty business. Fuel prices are so arbitrary.

 

[lfnh]

:msp_lol::msp_lol::msp_lol::msp_lol:

I just bought spring fuel. You figure out how it is the shiney shoes crowd can drop prices on our end, while jacking thier end with fuel excuses, lemme know.


Stay safe!
Dingeryote

In three words: Excessive profit margin.

 

[dingeryote]

Oh snap. And we just sold a sale for almost the recent historical high, firing up new hopes of financial recovery. This smells like dirty business. Fuel prices are so arbitrary.

THAT is good to hear.

Good buddy of mine is a muckety muck in the hardwoods biz, and he's been less grumpy about the outlook lately. Not enough to talk about opening up any of the half dozen mills he closed, but getting out from under inventory kinda happy.

Folks spend money when they get a pay check, and there is a good chance another one is coming next week.

Be nice to see the ball rolling again!

Stay safe!
Dingeryote

 

[lfnh]

Dunno. The only kind of agriculture I know anything about is raising cows. We all know how that pays out.
How does a guy with timber land get paid for not growing trees? I'd like to get in on that program. :msp_rolleyes:

Hey, at least you can eat your crop.

Nowadays, negative cash flow for riparian violations on grazing permits.

But hey, lawyers gotta eat to.

btw, just took a quick look at the Vale Auction prices for choice steers. About a 25 cent uptick /lb from 10 years ago. Retail beef costs are 2-3 times what they were
10 years ago. Rancher's not getting any of that money.

 

[lfnh]

THAT is good to hear.

Good buddy of mine is a muckety muck in the hardwoods biz, and he's been less grumpy about the outlook lately. Not enough to talk about opening up any of the half dozen mills he closed, but getting out from under inventory kinda happy.

Folks spend money when they get a pay check, and there is a good chance another one is coming next week.

Be nice to see the ball rolling again!

Stay safe!
Dingeryote

Yup, cautiously optimistic about a recovery pickup. But, remember how the last fuel
hike killed the consumer spending in 45 days.

 

[mdavlee]

I feel your pain on the diesel prices. I drive 30k or more each year traveling to work.

 

[slowp]

Yes, there was an upturn of log truck traffic on our highway until the blizzards started.

I've had calls from guys wanting to know how much snow is on their sale. The few units that are not in the Owl Romancing areas will probably start up soon. Even a very conservative mill is going to log if "the bubble" stays as it is now, or gets better.

Gas is $3.72/gallon 20 miles to the east, $3.59 here. I better fill up today as it goes up on Mondays.

 

[bitzer]

Gas and diesel are hovering around $3.50 here and steadily creeping.

The american dream in action.

 

[Gologit]

Hey Bitzer...

I saw on Bailey's site that you're looking for a tree height estimator. I have an old Biltmore stick that's gathering dust in the shop. PM me your address...you can have it.

 

[ms290]

well since im still in high school and such, i must drag along with a measly morsel of something that is supposed to be a pay check. when gas here hit 3.10 i almost died. now it 3.30 a gallon. i think the economy, well whats left of it is going to tank again.

 

[bitzer]

I saw on Bailey's site that you're looking for a tree height estimator. I have an old Biltmore stick that's gathering dust in the shop. PM me your address...you can have it.

Hey Bob,
Thanks for the offer! I have several city jobs coming up that could be outright felling jobs if I can be confident enough with the numbers. I'm pretty decent at guess-timating, but not good enough for houses and powerlines. I think I'd have a decent amount of space anyway, but numbers help justify it more. It would save a lot of time spiking and topping. I'll PM you later. I've got a busy day of chasing kids.

 

[Gologit]

No problem, I don't use it and it's part of my on-going "clean up the shop" project. I found it in the woods years ago and brought it home. You're welcome to it.

The stick isn't dead on accurate but it will be close. If you need actual absolute measurement with no error there are better and more modern devices.