How Much Should I Charge for Milling Logs?

One of the most common questions sawyers ask is, “How much should I charge for milling logs?” Many sawyers seem to have the answer to this question. Some sawyers say that you should charge according to whatever your time is worth and what the buyer is willing to pay. Another sawyer suggests to sell the lumber at $1.50 board feet (BF). Still others say that the biggest factor is supply and demand.

While these simplified answers might work for some sawyers, they won’t work for others. For sawyers who seek to make a profit with their sawmill operation, there are many variables they should take into consideration.

Overhead Costs

One of the first variables to consider is a sawyer’s overhead costs. These costs are defined as the ongoing expenses of operating a business, and they will most likely be different for every sawyer. Some examples of overhead costs to run your sawmill include:

• Fuel (it’s typical to use 2 gallons of fuel per hour)

• Sawblade (on average a new blade cuts between 200 and 400 bf)

• Springs, screws, rubber, and oil used per week

• V-Belts

Besides costs associated with running your sawmill, you’ll need to figure out how much it costs to maintain your operation. Maintenance usually includes:

• Rollers

• Motor oil and filters

• Gearbox oil changes

Eventually you will need to replace certain parts on your sawmill. Some replacement parts include:

• Gearbox

• Miscellaneous bolts, guards, etc.

• Motor

• New blades

Keep in mind, that this is not an exhaustive list of things to include in your overhead cost. It is a good start, though! Using your list, estimate the costs for running and maintaining your sawmill, as well as the cost for replacement parts, on an annual, monthly, or daily basis. You can break it down even further by figuring out how much it costs to operate your mill on an hourly basis.

Board Foot vs Per Hour

When figuring out how much to charge for milling logs, your overhead cost isn’t the only thing to consider. You will also need to have a good idea of how much board feet of lumber you can saw in one hour, which depends upon experience.

Beginner sawyers won’t be able to produce as much lumber in an hour that more experienced sawyers can. For this reason, it might be advisable for beginner sawyers to charge by the board foot they are able to cut. More experienced sawyers may want to charge by the hour.

Some sawyers say they can mill a little over 125 bf/hour but if they have a helper then can mill up to 400 bf/hour. Other sawyers say they mill between 1,000 to 2,000 bf/day. These numbers are dependent upon certain factors, such as the type and size of sawmill, how much help you have, the species of wood, and the size of the logs. Having the right tools and equipment also helps sawyers work faster and produce more.

Check Out 12 Tools Every Sawyer Needs

One more factor that affects whether to charge by the board foot or per hour is how you acquire the logs. If the logs are yours, and you mill the material, it makes more sense to sell the finished product by board foot. But what if the customer brings you the logs? Or what if you have a portable mill and the customer wants you to do the milling onsite? The answer to these questions is hotly debated by sawyers across the country.

Some say that experienced sawyers should charge by the board foot in these situations. Sawyers generally charge anywhere from 50 cent to 90 cents per bf. Other sawyers prefer to charge by the hour. Some sawyers charge just $50 an hour. On average though, sawyers charge $125 an hour. The most sawyers charge is usually $150 an hour. Charging by the hour saves sawyers from doing extra work that the customer may not have asked for from the start. The customer knows that as long as the clock is ticking, they will need to pay the sawyer for that time.

Now you should have a pretty good idea of how much to charge when milling logs. HOWEVER, there are still other variables to consider.

Types of Logs

One of these other variables involves the kind of logs you cut. This is due to the fact that some wood is more difficult to saw than others. For example, most sawyers would agree that white oak is tougher to saw than other kinds of wood, so they will charge more for white oak. Other factors that affect the price of certain kinds of lumber include:

• Durability (hardwoods are more durable than softwoods)

• Weather resistance

• Aesthetic qualities

• Rarity

The most expensive kinds of wood in the world is African Blackwood, which sells for up to $100/BF! This rare wood is also extremely difficult to saw. Other types of really expensive wood include Pink Ivory, Ebony, Brazilian Rosewood, Black Ironwood, and Sandalwood. Unfortunately, none of these woods (with the exception of Ironwood) can be found in the United States. In this country, Walnut, Cherry, and Maplewood is more expensive. You will also be able to charge more if your customer wants you to saw a custom-sized piece.

Green vs. Dried Lumber

While the above variables are the most important ones when determining how much you can charge for milling logs, there are still some more things that could affect your price. Like whether or not the lumber is green or dried. Green lumber is just another term for wet lumber. The moisture content for green lumber can be 50% or higher. Green lumber that has a moisture content of less than 21% has a less chance of mold developing. When lumber is used as a building material, the acceptable allowance for moisture content is less than 19%.

That being said, there is a different national standard on moisture content from one type of wood to another. Most hardwoods, however, are considered dry when their moisture content is between 6 to 8 percent. One reason people tend to buy green lumber is that it is less expensive.

If your customer wants dry wood, you can sell them air-dried lumber for more than green lumber. However, some sawyers charge up to 20 percent more for kiln dried over air-dried. One reason you can get more for kiln-dried wood is because this process is the most effective way to rid the lumber of moisture, mildew, and insect infestation.

Location, Location, Location

Is your sawmill located in an area where the material is abundantly sourced? If so, the demand is most likely lower, so you may need to charge less for milling logs. On the other end of the spectrum, the demand is higher in areas where materials are scarce, which means you can charge more per board foot.

What happens if you need to transport the finished product to another state? This is where you’ll need to add in freight charges. The cost of freight is distributed throughout a semi-load of lumber. Part of calculating this cost is the price of fuel. The more expensive the fuel, the more you will need to charge per board foot.

As you can see, how much you charge for milling logs varies on the kind of species that is more abundant in your area and also the supply and demand in the area your sawmill is located. One way to ensure you’re not undercharging or overcharging is to call other suppliers to get an idea of what they charge. Don’t just compare prices though. It’s also important to compare the quality of those suppliers to your quality.

Quality

Speaking of quality, the one thing you will need to do consistently is deliver a high quality product. If you can’t do that, you won’t be selling any of the logs from your sawmill.

One final word of caution when determining how much money to charge for milling logs. As with most business ventures, you can either make good money or you can go broke! To avoid the latter scenario, it’s wise to have a good business plan in place, which includes knowing all of the costs associated with your sawmill operation. If you do it right, there is an increased chance of making good money with your sawmill.

If you have questions, or need further advice, feel free to message sawmill central by clicking on the blue message icon at the bottom of the screen. Be sure to like our Facebook page as well so you can stay up to date on published blog posts, product reviews, and upcoming sawmill events.