What Do You Believe Is The Cost For 1 Cord Of Firewood ?

[lknchoppers]

It's ok this is very interesting looking at all scale business models. Thanks guys for sharing.

 

[ChoppyChoppy]

I mentioned the hobby cutters because their numbers aren't correct. $50/cord for 10 cords?

Is that $800 saw factored in? How about the $25,000 truck? Splitter? Storage bins?, etc.
My number I gave roughly factors in everything from keeping the lights on to tires on the trucks.
It's a way different thing working a 9-5 that pays the bills (and firewood equipment) vs the "9-5" (I wish!) is firewood.

We are getting ready to move to new land, a move that will cost about $3500 for permits, pilot cars and hauling, that's just for the buncher, delimber, 2 skidders, 2 dozers and an excavator.

Now like Mudstopper said, for a small outfit it doesn't take much to but a real hurt. Blow a tire on the log truck, that's $500. That could have been a week or two of fuel instead or the light and phone bill, etc.

But I work hard and I'm happy. Been doing it 5 years now.

 

[lknchoppers]

I mentioned the hobby cutters because their numbers aren't correct. $50/cord for 10 cords?

Is that $800 saw factored in? How about the $25,000 truck? Splitter? Storage bins?, etc.
My number I gave roughly factors in everything from keeping the lights on to tires on the trucks.

We are getting ready to move to new land, a move that will cost about $3500 for permits, pilot cars and hauling, that's just for the buncher, delimber, 2 skidders, 2 dozers and an excavator.

Now like Mudstopper said, for a small outfit it doesn't take much to but a real hurt. Blow a tire on the log truck, that's $500. That could have been a week or two of fuel instead or the light and phone bill, etc.

But I work hard and I'm happy. Been doing it 5 years now.

Thank You for your input, as my business grows I want to make sure I can replace my equipment and still make a profit.

 

[lknchoppers]

Looking good but I would compact your piles more so you can fit more wood in that space. Also, if you are looking to sell and avoid stacking (which I avoid) that wood has to get out in the open sun and wind.

Thank you I understand your point. This spot is on a hill and gets quite a bit of sun and constant wind. The wood is drying faster than I had anticipated and the real hot weather isn't here yet. July and August we get brutal heat upper 90s to over 100 sometimes. I have been making 1 cord piles so I can see what I have. I won't be stacking much but to spot check and verify pile sizes. I'm going to open up more land as I go.

 

[jrider]

Thank you I understand your point. This spot is on a hill and gets quite a bit of sun and constant wind. The wood is drying faster than I had anticipated and the real hot weather isn't here yet. July and August we get brutal heat upper 90s to over 100 sometimes. I have been making 1 cord piles so I can see what I have. I won't be stacking much but to spot check and verify pile sizes. I'm going to open up more land as I go.

Ok I can see why you have it piled like that. I windrow my wood and know that every x amount of feet equals a cord. I can then step it off and know how many cords I have. The first year is just a guessing game but after that, it gets you close enough.

 

[lknchoppers]

Ok I can see why you have it piled like that. I windrow my wood and know that every x amount of feet equals a cord. I can then step it off and know how many cords I have. The first year is just a guessing game but after that, it gets you close enough.

Once I get comfortable with this way of drying I may be able to do it more like yours.

 

[muddstopper]

I keep thinking about my buddies firewood business. Everytime he gets someone to help him load his truck, they somehow manage to throw a stick of wood thru the back glass. OUCH, just lost money on that load.

 

[ChoppyChoppy]

I keep thinking about my buddies firewood business. Everytime he gets someone to help him load his truck, they somehow manage to throw a stick of wood thru the back glass. OUCH, just lost money on that load.

No headache rack on the dump box?

 

[jrider]

I keep thinking about my buddies firewood business. Everytime he gets someone to help him load his truck, they somehow manage to throw a stick of wood thru the back glass. OUCH, just lost money on that load.

He should load from the side. Once the one side is full, turn the truck around and fill the other side.

 

[Patrick62]

Ok, the completely bananas business plan:
Logs arrive in yard at $80 cord. Then Start adding things in:
Logs: $80
Profit $10
Cutter $25
Splitter $25
Loading $18
Fuel $20
trk ins $10
driver $5

total $193 dumped into somebody's yard. The cutter runs his saw/fuel/chains/oil. I provide the splitter, but pay the operator $18 per cord to split. The rest is fuel and repairs of the equipment. Fuel is the dumptruck, and insurance is paying the liability on trucks. The driver gets $5 for delivery per cord.

The margin is very tight. It averages out, and we break even mostly. Move 200 to 300 cords a year.

 

[Guswhit]

Guswhit, if you want to make $50 per hour after those expenses how many cord per hour can you do on your own. This mean from standing tree to either back of customers truck or on their property. Seeing as you sell bundles I assume your per cord income is much higher than bulk cords. QUOTE]

I must have misspoke. What I ment to say is I want to clear at LEAST $50.00 an hour.

I'm currently able to split 55-70 bundles an hour by myself(oak, hickory and cherry), depending on diameter.

I have a unique situation going on with the parks I supply. All I have to do is split now unless they sell out. All of my wood is precut from within the parks by someone else, to a nice spot to split and I leave piled up on pallets, no bundling either. The bundlers(whom I know on a personal level), keep track and I send a bill for the amount bundled. So I have it REALLY easy now to keep tabs on costs. It gets harder when I have to start bringing in wood when they run out, but my wife, the bookkeeper, has been keeping pretty good spread sheets for me the last couple of years. She loves those vacations!

 

[jrider]

Ok, the completely bananas business plan:
Logs arrive in yard at $80 cord. Then Start adding things in:
Logs: $80
Profit $10
Cutter $25
Splitter $25
Loading $18
Fuel $20
trk ins $10
driver $5

total $193 dumped into somebody's yard. The cutter runs his saw/fuel/chains/oil. I provide the splitter, but pay the operator $18 per cord to split. The rest is fuel and repairs of the equipment. Fuel is the dumptruck, and insurance is paying the liability on trucks. The driver gets $5 for delivery per cord.

The margin is very tight. It averages out, and we break even mostly. Move 200 to 300 cords a year.

I'm confused with some of your numbers. Not calling bs just curious. You count $10 per cord for insurance and deliver 200-300 cords. Is your truck insurance really $2000-$3000? Am I missing something? Loading you price out at $18 a cord which is the same you quote for splitting the cord. What kind of machinery are you using for each? Splitting a cord for me takes a couple hours but I can load a cord by hand in 20 mins. Once again, not calling bs, just curious how you are going about it.

 

[Patrick62]

I can eleborate a bit.
The insurance on the big truck is $600 a year. The other trucks are less, but still run probably a grand a year all together. Partly it is "slipping" a expense in there, but dog gone it, I have to pay the stuff! Ok, I pay $18 a cord to load it (this is tossed in by hand). I can do it in 45 minutes fairly easily. Splitting is done mostly done with "old blue" which has a decent time to it. I can split and load a cord in a hour with that machine. The money to be made here is by moving the wood. I figure that with the cost of living that working pretty hard should be able to make some money.

Now, in actual fact not all the time does it take $20 in fuel to deliver, and sometimes I do a bunch of the work (and don't pay myself very well) this amounts to investing in the operation... which helps to cover the unexpected stuff that comes along. You know, blown tires, dead alternators. etc. If I could calculate that all in, my cord price would be much higher and we would be outta customers!

 

[ChoppyChoppy]

$10 profit on a cord isn't going to keep the lights on. At 300 cords a year that's only $3000! Burn up a transmission in a delivery truck and poof, no profit.

You could save $70 a cord if you used a processor vs cutting by hand. That'd turn into 20k a year... which would have a processor paid off in 1-5 years depending on what you buy.

 

[Jere39]

I mentioned the hobby cutters because their numbers aren't correct. $50/cord for 10 cords?

Is that $800 saw factored in? How about the $25,000 truck? Splitter? Storage bins?, etc.
My number I gave roughly factors in everything from keeping the lights on to tires on the trucks.
It's a way different thing working a 9-5 that pays the bills (and firewood equipment) vs the "9-5" (I wish!) is firewood.

We are getting ready to move to new land, a move that will cost about $3500 for permits, pilot cars and hauling, that's just for the buncher, delimber, 2 skidders, 2 dozers and an excavator.

Now like Mudstopper said, for a small outfit it doesn't take much to but a real hurt. Blow a tire on the log truck, that's $500. That could have been a week or two of fuel instead or the light and phone bill, etc.

But I work hard and I'm happy. Been doing it 5 years now.

You have me confused too. I am certainly a hobby cutter with 12-16 cords/year. But I went back through this thread again and found not one reference to $50/cord. In my own post I admitted I break even on my hobby, without considering my own time, which I wouldn't count because I enjoy my time, and as you describe it, it is a hobby. I don't have any thoughts at all on your costs, profit, motivation, or posts. I just don't see where you got the numbers you attributed to hobby cutters.

 

[c5rulz]

I am with Jere

I am a firewood hack, and it gives me something to do in the Winter. I am in better shape now than when I retired 6 years and have lost 50#'s. What is that worth?

 

[muddstopper]

He should load from the side. Once the one side is full, turn the truck around and fill the other side.

You would just have to meet my buddy to get the full benefit of how he works

 

[zogger]

Man, buncha pikers,,I make at least 25 cent an hour cutting and stacking...

 

[ChoppyChoppy]

You have me confused too. I am certainly a hobby cutter with 12-16 cords/year. But I went back through this thread again and found not one reference to $50/cord. In my own post I admitted I break even on my hobby, without considering my own time, which I wouldn't count because I enjoy my time, and as you describe it, it is a hobby. I don't have any thoughts at all on your costs, profit, motivation, or posts. I just don't see where you got the numbers you attributed to hobby cutters.

3rd post down on the first page and a few posts further talks about $25/cord even.


Nothing wrong with hobby cutters, just it's not the question that the OP asked.

 

[Jere39]

My bad, read the whole thread three times missed the third post. Sorry.
How did you know he was/is a hobby cutter?