Thread: Question on pricing

Originally Posted by Travis Edwards

Ok folks I NEED to know ballparkish figures on what lucas/woodmizer etc. owners charge roughly to mill for people. The reason I need to know is that I have an opportunity to Mill a large amount of log for a person, BUT to do so I would have to look at finance to purchase a lucas or such. The reason I need to know is basically because I have no idea what I should be charging, and I would need to agree on a figure with the person who has the logs so that I could go to the bank manager and say "Look this is the saw I need, This is what it costs, this is what I have to mill and this is what it is worth to mill it." I also need to assess whether or not it is viable.

If it helps, the log I have to mill is mostly Stringy Bark good straight logs between 500 and 800 diameter, some may be larger, and 300+ of them.

Thanks in advance for your help folks

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Will they all be in a log dump adjacent to the mill?
How many times will you have to move the mill?
Do you have to provide the equipment to move the logs on to your cutting bearers?
Do you have the means to move the logs?
What size timber is required (250x50 are cut a lot quicker than 150 x 19's)?

I like to make sure the customer is getting good value, I like to make max $$$ for my time and the use of my Lucas, trick is to find that balance. What helps is if I work hard and my years of experience to help me produce usable timber. Given the nature of milling green timber, it often likes to move a bit, I do not mill commercialy much, only joint ventures. Not many people seem to make a living out of a lucas on it's own. Many spend money on machinery to move logs to a mill that is portable, go figure. It is not needed, I did have a bobcat with forks, it was handy but I don't miss it, I use a log roller (hand made and adjustable) a high lift jack, a winch trailer that tilts, a 066 and an 06 4x4 rodeo tray back
I think you are smart for doing some research. I think the more good lumber you can produce, the more you can make quickly, having said that, a friend of mine was happy to go at his pace (bit slow but he was happy) he charged a lot less than others but he was happy with that. He charged by the cube, I would charge by the hour and back myself to produce lumber fast.
Best of luck to you
regards John

OK, being stringy most of the lumber cut from it will be structural dimensions, I.E. 4x2 6x2 maybe 3x2 and post/ sleeper sizes, I do not think he would have much call for flooring sizes and such. This said however I would recover what ever I could from the logs.

I am not out to earn a living from what I mill, as I have a daytime job, most of it would be done on weekends, and most of what I mill would be for my own personal use, however I do need to earn enough to pay for the mill to start with, and I need to use the log in front of me as a bargaining chip to be able to do this. I.E. I do not have a spare $16000 to spend on a hobby that is not going to pay for itself.

Basically what I am asking is if you were milling 4x2 all day out of reasonable log What would it be worth. I would be supplying all the labor, cutting the logs to length with my own chainsaws, the landowner would have the means for moving the log to the mill (tractor, excavator etc.) setting up would be fairly easy on fairly flat ground. There is plenty of timber to be able to make a good infeed setup etc.

Travis, I'd say you could look at begining with 30 4x2's around 3m long a day. Some will say that isn't much, but you'd be new, doin it yaself, also cleaning up as you go in a situation like this is time consuming. Do you have a market for structural timber? It's great to use it yourself, but that doesn't bring in a loan payment. I've found the thirstiest and most available market is feedstock, it doesn't give the best money, but it will make a loan payment. Recovery is a bit lower on feedstock, but you have a large resource and can cut structural timber for yourself as well as feedstock for your loan payment.

Ok, At the moment the market would be the bloke who owns the land, He has a Ship load of logs down and is wanting to get them milled into lumber for himself to use on his farm, If he wants to sell the overburden of lumber that is up to him. There are reportedly around 300 good sized trees, already down, so I am basically just wanting to know what people would charge to cut up logs for people, if they brought them to you, or if you were to setup on their block and cut them into lumber for them. I.E. would $200 per cubic meter of log be expensive or would I be ripping myself off.

I agree that at first I would have to learn about the machine and get used to controlling it etc. So I think an hourly rate thing would be hard to strike a fair amount for both parties, especially at first.

With the location of the logs there would be no real issue with cleaning up as it is basically a bush block with most of the log easily accessible, the landowner has an excavator and tractors to move the log around, and would pile them in an easily accessible and clear space for milling. All of the smaller stuff the landowners brother would cut up for firewood, and the sawdust could be returned easily to the scrub.

Basically I am looking at the fact that as someone wants their logs milled and is willing to pay for it to be done as an opportunity to get me into a lucas mill. The fact that I do not have to find a market for the timber is an added advantage. This will down the line allow me to do what I want to do with the mill further down the line.

Sweet, given the above, then yeah the going rate is $200/cube I do give discount for large volumes in one place and the assistance of machines to set things up. Ya clean up will be pretty simple too, if the brother can use tailings as well as offcuts from the logs for firewood.

I'd love to do a drive down and work with ya for a couple of weeks to get ya started... don't really have a lot of commitments nowadays...(gettin divorced) so might as well work instead of sitting around moaning hey?

EDIT: could even drop in on the good folkes at Lucas!!!!!!!!!!!!!!!!!!!!!!!!!!! what a friggin idea

Originally Posted by Sigidi

Sweet, given the above, then yeah the going rate is $200/cube I do give discount for large volumes in one place and the assistance of machines to set things up. Ya clean up will be pretty simple too, if the brother can use tailings as well as offcuts from the logs for firewood.

I'd love to do a drive down and work with ya for a couple of weeks to get ya started... don't really have a lot of commitments nowadays...(gettin divorced) so might as well work instead of sitting around moaning hey?

OUCH, was that due to the fact you couldn't get home for the last 6 days, spending too much time with Bo, or cause the kitchen took too long? (just joking Al that sucks really.)

The offer would be much appreciated, but I have to work out a few odds and ends before I said for sure that it would all happen as we would need it to.Hopefully I will be catching up with the bloke in the next few days, so I will be able to find out some more.

It would have been good to be able to work it out a few weeks ago As I have 2 weeks holidays starting today, (guess I am a bit slow off the mark!) What would turn around time for a mill be from lucas does anyone know?

being so close to them I reckon you could have one within days.

I'd have to work a few things out too, like babysitting animals etc, butnot out of reach doin the trip...

I will see what I can find out and keep you informed. I would just drive up and pick one up if they had it in stock. Oh, and if the bank manager said yes.

That'd be the best way I reckon nothing better than visitin the boys at the office and getting a good yarn in

Hey Allan when you refer to feedstock, what exactly is that in your neck of the woods?

hope the boys have some bar lube in their top drawer

Feedstock - talking 4x1 and 6x1 rough sawn that other mills then process into decking and flooring, dunno exactly why it's called feedstock, guess it's cause its stock that they feed into the machines???

Originally Posted by tlbsg

hope the boys have some bar lube in their top drawer

Not sure what you mean there, a circular saw doesn't have a bar.