Costs and Profit for $1534 a Cord Firewood?

Noticed the local grocery store chains around here have bumped their firewood prices up from $6.99 to $8.99 for a .75 cu/ft bundle. It is kiln dried certified and nicely packaged. This grocery store chain is big in central PA and has a lot of stores. The processor is a large one, about 50 miles from here.

My question is, you FHC guys/gals who process and sell firewood, what do you think the processors cost is, and/or what do they charge the store per bundle? I have no idea of these costs and profits and am just curious.
I assume this time of year their target market is campers, and in the winter the occasional fireplace burner.

JDU

 

Yep that is what it is aimed at. Was a time when the oem supplier was getting 1.75 - 4.00 for bundles, I am pretty sure that has gone up, over that was/is retailers markup. Course all this varies with location. the oem if running a processor + all other costs might be clearing up to 50 % of his selling price. Most of the time the firewood biz is an add on to an existing biz such as a lansdscaper or tree service. There is biz that sells mulch, and Firewood they are a tree service another is landscaper he buys log loads and sells firewood, one of his customers is a bundler. There are at least 4 kiln drying operations running in my area that I know of- state certified. One of those is a hardwood supply for carpentry, side line is firewood from bulk that doesn't make grade. Another company supplies Interior wood work, scrap is used to make pellets(heating and cooking ) as well as bedding for animals. In both cases wood fuel or whatever is an add onto the core biz. Straight up it is a tough market. As an add on to an existing biz it can be a profit generation from material that other wise would cost $ to dispose of.

 

I often wonder the same myself when I look at "factory made" firewood bundles.

I have 5-6 convenience stores I wholesale to. Never figured out my per bundle cost for the actual wood production. I know my price is high vs what other local guys charge as I've asked what they pay wholesale.

 

I bag by weight...30# each, of very dry firewood...usually in the 15-17% range MC, get $8 each, 3 for $20...that's a fair amount of campfire wood for $20! There are soooo many sellers around here...business comes n goes, which is fine by me.

 

I don't know how much those bundles weigh, but I picked one up to take the second picture and it was probably 10-15 pds. So you are selling a lot more wood for less$$.

 

My bundles are 8x8x16. I have some mesh bags and have though of selling by weight on FBM.

 

Currently trying to work out a price scheme for my stand. Doing the onion sacks with loose stacks as well. I think most stores here are at $6-8 cu.ft. I'm looking at trying to do 1-1/2 cu.ft bigger sacks. Was thinking $12ea/2 for $20. ~5 cu.ft. loose for $25-30.

 

Cartons of liquid eggs are sold in grocery stores for more than a dozen eggs cost. It blows my mid as well, but it seems that some people really prefer paying money over even the simplest of toil.

 

Selling water in bottles? No way.....

 

I just stopped and checked those bundles out again at the store. They weigh about 15 pounds and average six 16" pieces of wood.

 

My B-I-L lives just a few miles from me. He is obsessed with these packages of wood and buys them all the time for their occasional fire out by the patio. Every year I bring them a truckload of firewood for their fire ring and he goes and buys bundles and stacks on top of the wood I take them. I even take over Swedish candles for when we are there for evening fires. I just don't get it... He even has a small chainsaw and a small woods behind their house...

He always insists on lighting the Swedish Candles with some used motor oil and a cup of gasoline...

 

Sounds like my girlfriend's B-I-L. He lives in a homeowners development, has a small fireplace in his house, and I took him some wood once for it and some pieces were a little bigger, I told him he might have to split them down. He said "I don't do splitting". That was the last time I ever took him wood.

 

How much does the kiln drying cost ?
A kiln dryer must be a little bit of a capital investment.

 

I misspoke in original post, as it is not kiln dried, rather heat treated. There is a difference, as heat treated just brings wood internal temp to a certain level for an amount of time to kill pathogens and insects. I know some of the pallet mills around here have to do that for ones going overseas. Some use truck boxes with heaters installed to do this. Regardless, energy required has to be expensive.

 

I'm gonna take a stab and guess that he's the type of person that thinks because it's in a fancy package it's gotta be better.

 

Mine are mostly six pieces but some up to eight. I pack them in there like a Tetris game.

 

Maybe give him some magnesium and a leaf blower?

 

I guess maybe some of it might be a family thing???

 

I live where city people come for the weekend. They all hit up the supermarket before heading to the camps. They sell out of firewood every weekend.