why do we undercut prices

[bemisfirewood]

Now I'm not saying that we need to jack rates sky high. but this is an industry where it seems everybody is setting their price based on what joe blow is selling his for in the classifieds. for example in my area the avg. for a 1/3 cord is $50. this means the weekenders are selling theres for $40. now in 2000 the prices were the same. fuel, chain, parts, tires.... all have gone sky high. yet prices seem to stay flat. Are we afraid as an industry to raise our rates because we think nobody will buy? try it, you'd be suprised. we raised our rates 10% last year and we sold out as usual. we are raising a little less this year. last $50-$55-$60 this year. At $60 I can turn a resonable profit. At our size a $5 per 1/3 cord raise is about $10000 per year. So as long as fuel stays where it's at we will to.

How many of you that are struggling to make a living and do people right would that make a difference?
sorry this turned into more of a rant but i would like to get feedback from both sides, producers and consumers.

consumers remember a happy properly paid firewood producer will give you a better product(you get what you pay for comes to mind)

[Prairielogger]

I agree with you wholeheartedly. I have managed to increase my prices accordingly over the years as all things related to the business have gone up also. We are restricted as we must buy our logs in bulk and because the mills have shut down, there are not that many people working in the bush. It all becomes very complicated, even for a business like firewood. In the end, prices must go up periodically to meet costs incurred to the producer, his fuel, ads, equipment, parts, yada, yada, yada.............and in the end everyone likes to get a little extra income just to cover those expenses.

[westcoastfirewood]

The source of the problem is the weekend people and persons without work with a pick up and an axe advertising in local papers. Everytime I advertise a price. they seem that they need to undercut me to sell wood. Whenever a new customer calls they feel that they have to call around to find the "lowest price". I am sure that all of you have had the same experience, If we are selling at a price too much higher than the other advertised price, we tend to drop ours. As fustrating as it is, it is hard to raise prices when others are lowering theres.

[Michigan Fuelwood Products]

I dont check the beer money guys price. When they run out of seasoned wood I do not. I set my price on what I need to be profitable. I have regular customers that expect good quality product for there money. $50 green $55 seasoned $60 kiln dried plus delivery.

[bemis firewood]

that's what i'm talking about we get nervous when we see prices go down. but part way through the season those "other guys" run out. we buy hardwood pulp by the semi load. produce about 1500-2000 tons every year and have always sold out. mainly because we have it and nobody else does and we sell good wood. while there are other firewood producers down here in the south they don't seem to talk much. keep up the good work, good wood, and appropriate pricing.

[Firewoodguy.com]

Maybe the so called undercut firewood dealers that you are refering to, works on volume or just in it to undercut Walmart prices sales, what U think !! Maybe we all should buy bigger delivery trucks Just my thought

[firewoodkingPA]

Hi new member here. Here is southeastern PA there are a lot of small time guys.. landscapers, tree services, weekenders,e tc who sell maybe 10, 20, 50 cords a year and sell for like 50$ a cord or more less than us, or a couple other firewood producers who take firewood seriously. I don't understand whether they are just doing it to keep some workers busy or make a couple dollars in the winter for spare change but it does undercut people like me who take it seriously and the main source or income for my business. yes, they run out eventually but I cant count the number of calls we take from "people just shopping around" etc. Sad part is... a lot of these people end up calling again saying they got ya know.. 3/4 of a cord when they bought a cord, or the wood was green, or big chunk or too much like kindling etc.

Also, where would one get a kiln to persay dry out wood? and how do they work?

Thanks for letting me rant a little bit and thanks for letting me be part of the site.

[beaman]

I've been cutting and selling firewood for about 30 years. I've done it many difderant ways from a pick-up, mall, and chainsaw, to now, skidder, processor, dump trucks, with employees and without. The problem isn't under cutting each other. Or the weekend wood gye. The problem is people who think there wood is worth to much. The weekender wood man who is trying to make a buck is not and has never been a reliable source for firewood. There is always a problem with measurement, normally short, the is always a problem with quality, wood wet when it should be dry, or wood not split small enought.
These poeple don't last long and nornally don't have repeat customers. A solid consistant customer base; is where the same people call and depend, consitantly on you, year after year. In stead of complaining about under cutting the price. Provide your steady customers with a reduced price for wood. This is more importaint in the ecconomy where people are not moving around so much. New customers burning wood, or purchasing homes with wood stoves, is in a down turn. Keeping the steady customer happy should be your number one priority. Keep in mind everyone needs to save as much money as possible thing are tight everywhere now. Wood is a commodity and it's price fluctuates year by year, season through season. As an example presently I have dry wood cut in march split in april, stored on a cement pad, under cover, been drying for 7 months. I'm selling it for $235.00 delivered. My next nearest competitor is seeling the same wood for $330.00. Are people buying his sure they are. Why so much differance? because his costs are to high, His production exspences are not under controle, he can't aford to sell it for a reasonable price. Paid cash for my skidder, convayor splitter, truck, no payments I make more money at 235 that he does at 330. Why? My buisness modle is more appropreate. My advise to you to to reduce your costs so you can reduce your price and remain competitive. Your in the busness of selling chunks of wood: not chunks of precious metals.