Wood selling partnership

[Kenster]

My neighbor has a few firewood customers. He scrounges up downed, half rotted, punky logs out of his woods, cuts, splits, and delivers it.
He comments on how "pretty" my wood is and that his customers would prefer better quality wood.

I, on the other hand, have access to almost unlimited, high quality standing dead and recently downed oak. I am currently almost three years ahead on our personal wood needs. I enjoy working on firewood. I've got a good saw and a fantastic splitter. And I have the time to work on it. Mid October to late winter is my down time when I am home virtually 100% of the time. I can process a lot of wood this winter. I just don't need to have ten years worth of wood stacked outside.
My proposal would be to provide my neighbor/buddy as much wood as he can sell. I cut, split and stack. He provides the customers. He delivers and stacks. We split the take. This provides his customers with a much better quality of wood which should help build the business. He could probably sell at least twice as much each year if he doesn't have to process the wood. (He splits by hand.)
This fills my 'hobby' need of working on firewood and allows me to keep harvesting standing dead trees that will otherwise rot in place.

He's been getting $125 for his poor quality (but dry!) wood. I think we can get at least $150 a cord for good solid, "pretty" wood. I can put away several cords this fall that should be ready to burn next year. The two year oak rule doesn't seem to apply in Texas this year with our extreme drought and well above average temperatures.

What do you think?

 

[smokinj]

Hard to sell at 150.00 a cord, but it will be fun!

 

[shawneyboy]

Just my thoughts but it would seem that HE is getting the better end of the deal because he is doing far less work than you for his half. If you were to do this I would look at more of a 70/30 split than 50/50. The work is in the processing, which you are doing yourself. Now if he would be there processing some with you that would change things, but if you are felling, bucking, splitting, and stacking, that is alot of work, and expense with fuel, and wear and tear, etc. that you are going to be shouldering on your own.

Shawn

 

[Gasifier]

That sounds like you would be doing more of the work Kenster. Maybe you should be doing the selling of your own wood and making more profit. What do you think about that? Just a thought.

 

[Kenster]

I know I'll be doing a greater share of the labor. He already has the customer base. I'm not into going out and doing sales. Just not my thing.
My main thought behind this is that I enjoy doing the work. Gives me something to do during my down months. I could easily end up with 20 or more cords but I burn only two cords a year, at most. I hate to see trees dying then going to waste. So, I'll probably being working that wood anyway. I really don't want to compete with my buddy.
This would bring in a little extra cash to help cover my expenses. Without that income, I'll be doing all that work but with no money coming in. And the fruits of my labors will just sit out there, unburned, for years.

In other words... this would just be an outlet for my wood hobby. I'm not looking to make a lot of money on it.

 

[Manitoulin Maples]

That sounds like you would be doing more of the work Kenster. Maybe you should be doing the selling of your own wood and making more profit. What do you think about that? Just a thought.

+1 on this idea.

And just to clarify - you're talking an actual 128 cu. ft cord right and not a face cord? If so, I can't believe the price difference for wood in different places. Around here (northern Ontario) ONE FACE CORD of seasoned oak or sugar maple will sell for $100.

 

[Backwoods Savage]

I can easily relate to what you are proposing Ken and I see no reason to not do it so long as you are able. However, I'd look at perhaps a 60/40 split and you don't stack it but just throw it into a pile which would save you much labor.

The only bad thing I've seen happen and have seen it more than a few times is that the partnership soon goes sour with one claiming to have sold x amount but has sold more. Therefore, there needs to be some checking and that is best done right at the start. It keeps both parties honest.

 

[Kenster]

And just to clarify - you're talking an actual 128 cu. ft cord right and not a face cord? If so, I can't believe the price difference for wood in different places. Around here (northern Ontario) ONE FACE CORD of seasoned oak or sugar maple will sell for $100.

You'll NEVER see me using the term "Face Cord." I'm an educated man. Anyone who has a post count on this forum higher than three should know better. And we're talking about south central Texas where there are relatively fewer homes that heat with wood. Most people here burn wood for ambiance. (including my potential partner). Plus, the trees here are dying in the millions and millions due to the drought so firewood is going to be cheap and abundant for several years. Houston alone reports over 60 million dead trees with possibility of double that before long. Supply trumps demand.

I drove up to Dallas yesterday. In my four hour drive I spotted an unbelievable amount of dead trees the entire way. (four hour drive.) Very sad.

 

[Manitoulin Maples]

And just to clarify - you're talking an actual 128 cu. ft cord right and not a face cord? If so, I can't believe the price difference for wood in different places. Around here (northern Ontario) ONE FACE CORD of seasoned oak or sugar maple will sell for $100.

You'll NEVER see me using the term "Face Cord." I'm an educated man. Anyone who has a post count on this forum higher than three should know better.

Gotcha! Bear with me then as I'm new and learning this is the norm when referring to a cord. :red: Around here, everybody refers to a face cord as "a cord". If I was to phone any fire wood supplier today and order 6 cords, I'd literally get 6 face cords delivered.

 

[smokinj]

And just to clarify - you're talking an actual 128 cu. ft cord right and not a face cord? If so, I can't believe the price difference for wood in different places. Around here (northern Ontario) ONE FACE CORD of seasoned oak or sugar maple will sell for $100.

You'll NEVER see me using the term "Face Cord." I'm an educated man. Anyone who has a post count on this forum higher than three should know better.

Gotcha! Bear with me then as I'm new and learning this is the norm when referring to a cord. :red: Around here, everybody refers to a face cord as "a cord". If I was to phone any fire wood supplier today and order 6 cords, I'd literally get 6 face cords delivered.

One issue most dont even have room for a full cord. Nothing wrong with selling less than a cord. As long as everyone know there not paying for a full cord!

 

[SolarAndWood]

If your partner is dealing with people, coming to your pile, loading up, delivering and collecting the cash, I think he is earning his half. I would sell firewood if I didn't have to deal with what your partner is going to deal with.

 

[Kenster]

If your partner is dealing with people, coming to your pile, loading up, delivering and collecting the cash, I think he is earning his half. I would sell firewood if I didn't have to deal with what your partner is going to deal with.

Exactly, Solar. He has a client base. Another way to look at it is that he buys it from me wholesale and marks it up to get his cut.
And there is absolutely no worries about honesty. He's the kind of neighbor that lets me walk into his garage unannounced, even if he is not home, and rummage through his stuff to find a tool I need to borrow, the right size bolt, etc. He gives me free run in his veggie garden in the summer. He's always there when I need a hand with something. I repay in kind when I can - though I don't grow vegetables.

If he tells me he pulled half a cord and sold it and hands me half the take- I'll never doubt him for a second. And frankly I won't care much if the amount varies a little bit but I know he'll never intentionally screw me.

 

[shawneyboy]

Go for it man Sounds like you know what you are looking at and you got a good partner. If you enjoy the work, and know what is what, why not? You will be getting paid to do something you enjoy to do.

Shawn

 

[billb3]

He should be helping you cut up the trees and get them near your splitter.

Unless you don't want his help, but that seems like a better split to me.

 

[Flatbedford]

Another way to look at it is that he buys it from me wholesale and marks it up to get his cut.

That's what I was going to suggest. I think that if you look at t that way it would be a great deal. If I had the time and available wood, I'd like to do same.

 

[Loco Gringo]

Ive been bundling up campfire wood and selling it to my employer for $1 a bundle, and they sell it for $2. Not much difference between that and what youre considering, and its working out just fine for me. And them. I think you guys will do much better than we are to be honest. Make that money Kenster!

 

[DexterDay]

If it were me (I have sold a few of my Racks (Half cord/I know, no such measurement) at $100 a rack) I would sell it at least $100 a cord to him and let him stack it and sell it for what he wants... If he has to do almost ZERO work. Than $50 a cord is plenty. Say he sells 10 cord at $120... Thats $1,200 for his work and time.. Now if he can do 15-20 at a little higher cost ($150-200) he is still making $100 per cord. which would amount to $1,500-$2,000 (low end) or a LOT MORE and doing almost no work..

You still make yours and he gets his.. I have been looking really hard at selling some. I know Zap and a few others do this. If I can keep my 2-3 yrs ahead and also store an extra 10-20 cord. Then I can make a few bucks. I have plenty of room and know 2 people where I get unlimited amounts of wood. I am delivering a half cord to my Aunt tomorrow. She has a Fireplace and uses for ambiance, but for $100, I will deliver it to her (Family).

I will be selling at $200 a cord.. My time and energy are worth something. around here. A lot sell by the truckload (Whatever that is. I have a 5.5 ft SuperCrew and would get charged the same as a 8ft long bed WTF) and they charge anywhere from $100-$150 for a truckload of there "Seasoned" (split yesterday) Wood.. I have a feeling I could do good by selling to at least my local friends and family and at $200, they would be getting a fair deal on "Dry" wood. The wood I would sell would probably consist of 100% Ash, Cherry, and Silver Maple. Those 3 species so they season well within 1 year.

Talk to your neighbor about it. If I were him. I would pay you $100 per cord. For me to almost double it, with no work involved... Sounds like a good venture. But need to go over the details with him.

Good luck and Cheers... Put that Huge Husky to work!!

 

[Battenkiller]

Kenster, from the way you conduct yourself on this board you've always struck me a a real straight shooter. I like the way you think about this. Shows a lot of integrity. You have the right attitude about that wood not going to waste, too. So go run that saw and have some fun, and make a little dough on the side while you're at it.

 

[Kenster]

Kenster, from the way you conduct yourself on this board you've always struck me a a real straight shooter. I like the way you think about this. Shows a lot of integrity. You have the right attitude about that wood not going to waste, too. So go run that saw and have some fun, and make a little dough on the side while you're at it.

Thank you, BK, for the kind words and support.

And for all the other advise and support from you other guys. Thanks!

 

[IanDad]

I would view it like you are a wholesaler and just sell him X amount of wood at some determined Y price. Then it's not really a partnership (with all the possible negatives that might rear their heads) but a more simple business relationship. Should you get ahead on "inventory" that he can't sell, then you could save for yourself, sell it, or give it away to a needy family, church camp, etc.

 

[Stevebass4]

Hard to sell at 150.00 a cord, but it will be fun!

full cord?? it's $300.00 here

 

[smokinj]

Hard to sell at 150.00 a cord, but it will be fun!

full cord?? it's $300.00 here

Same here, If its a real cord. Lots of people selling there cord for 150.00 just going to be very short. 16 foot x 4 foot by 16inchs. If, your lucky.

 

[Gasifier]

Kenster. More power to you man. If that is what you decide, do it well and enjoy doing it.

Sometimes I am a little paranoid I guess. But having been in the industrial construction field for a few years when I was young, and doing small residential construction stuff off and on over the years, I have seen some people get hurt. A few, permanently hurt. As I am sure you have as well. And even heard of more. So I guess I would weigh in the fact of the dangers that come along with felling trees, cutting them up, and everything that comes with wood processing. I fell my own trees as well, cut, split and haul it out, and I buy a little wood from time to time depending on the price. I also scrounge if I see an easy, free wood opportunity. I am not saying I'm afraid of the work. I just have to remember to respect the dangers of it.

May I make a suggestion, or ask a question? Do you have good health insurance? I guess I am also thinking of supplemental insurance. You know those commercials with the duck in them. AFLAC! They often make me think of how many people do not have anything that would help them with bills if they got hurt. I am lucky to have good health insurance through my wife's job. And when I take out a loan on anything substantial I get insurance on the loan so that if I get hurt that insurance company will cover the payments. So I would just make the suggestion that you have that insurance so that if you do get hurt while doing your wood cutting that it will not put you in a really bad spot if you can no longer do it or your other job. I have three brothers who are in business for themselves. The insurance cost to them for their families is high, but you have to have it. One of them, who is a very physically strong person and in good shape, hurt his back just twisting the wrong way when moving a semi-heavy object. Which he does on a regular basis. He was laid up for almost two weeks. Flat on his back on the couch. Was scared he might have done something permanent. Luckily he did not. He was back at it, easily working for several weeks, and then full tilt about a month later. Something for you to think about. Good luck with your wood partnership man. And sorry about the novel.

 

[Battenkiller]

Hard to sell at 150.00 a cord, but it will be fun!

full cord?? it's $300.00 here

Same here, If its a real cord. Lots of people selling there cord for 150.00 just going to be very short. 16 foot x 4 foot by 16inchs. If, your lucky.

So, they're really selling 2/3 cord for $150, right?. Kenster is talking about delivering a full cord for $150, not 2/3 cord. There should be no shortage of customers at that price, and since Kenster has no shortage of wood he should get rich in no time. ;-)

As far as face cords go, I'd much rather deal with a seller that gives real face cords than one who deals with shorted full cords. Even a face cut at 12" is a better deal at $50 ($200/cord) than 2/3 cord (if you're lucky) at $150 ($225/cord). Around here, guys selling face cords are few and far between, but those that do almost always cut at 16-18", so a $50 face cord ain't a bad price. Nice thing about a face cord cut that way is that is will fill a full-size pickup bed loosely tossed in there. Guy shows up at my place with a pickup full of hardwood for $50, I grab my coat and gloves and help him unload... no matter how it's piled in there.

 

[smokinj]

Hard to sell at 150.00 a cord, but it will be fun!

full cord?? it's $300.00 here

Same here, If its a real cord. Lots of people selling there cord for 150.00 just going to be very short. 16 foot x 4 foot by 16inchs. If, your lucky.

So, they're really selling 2/3 cord for $150, right?. Kenster is talking about delivering a full cord for $150, not 2/3 cord. There should be no shortage of customers at that price, and since Kenster has no shortage of wood he should get rich in no time. ;-)

As far as face cords go, I'd much rather deal with a seller that gives real face cords than one who deals with shorted full cords. Even a face cut at 12" is a better deal at $50 ($200/cord) than 2/3 cord (if you're lucky) at $150 ($225/cord). Around here, guys selling face cords are few and far between, but those that do almost always cut at 16-18", so a $50 face cord ain't a bad price. Nice thing about a face cord cut that way is that is will fill a full-size pickup bed loosely tossed in there. Guy shows up at my place with a pickup full of hardwood for $50, I grab my coat and gloves and help him unload... no matter how it's piled in there.

I understand what he is doing! Again what everyone else will be selling is 2/3 at best for 150.00 and calling it a cord. Just something as a real firewood guy needs to know but telling your costumer so they understand is almost Imposable!