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How to Price your Lumber

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What Price Should You Put on Your Lumber?

How much should you sell your wood for? There's no easy answer, but here as some factors to consider

One of the most frequently asked questions in the Woodland Mills community is how much sawyers should charge for their lumber.  

While many sawyers mill for recreation or to build their dream projects, some use their Portable Sawmill to make a bit of money on the side or will sell live-edge slabs or excess lumber they no longer need.  

And in those cases, it can be tricky to find an exact price to charge for your wares. It’s not as easy as going to your local hardware store and seeing how much they charge per board, because those are manufactured on commercial scale very different from what’s reasonable to produce on a portable sawmill, and will often charge the same price per board regardless of the quality. 

So, the value of lumber can change depending on many things, and here we will go over some of the ones you want to consider when you're pricing it.  

Your Location

"Not everyone has access to the versatility of a sawmill."

What types of wood are common where you live? If pine trees are commonplace in your area, but something like cherry trees are less frequent, the price of cherry will be higher than the price of pine.  

While we live in a global world where you can get lumber, or most goods, shipped to you from anywhere, the farther they travel the higher they may cost. So, lumber that’s locally sourced and frequent in your region isn’t going to be priced as highly as something more exotic. 

But because something is uncommon and desirable in one part of the world doesn’t mean it will fetch as high a price anywhere. Learn about what woods are common in your market and decide if your lumber is outside the norm. 

Wood Species

Some species of rough-cut softwood could sell for roughly $1 per board foot. Meanwhile Ebony, one of the rarest and most expensive species in the world, sells for $100 or more. 

With that in mind, you should think about what is a reasonable cost for the wood you have and what someone is willing to pay for it. 

For example, if you’re selling pine, to fully compensate you for the time and effort of felling a tree, milling it up and finding a buyer, the price you put on it may exceed what that same wood might fetch at the local lumber yard. And while some people will support local sawyers and businesses, many are also cost-oriented and will pick the cheapest option. 

For that reason, you may want to consider setting your prices below the retail market price for lumber. Some sawyers forgo trying to sell commonly used lumber like rough-cut pine that is easily and cheapy acquired in other ways and prefer to sell more lucrative species. 

Quality Expectations

Who is going to pay good money for dodgy wood that’s cracked or covered in knots?  

Some people may, depending on their use for the wood. But if you’re planning to build a shed and need strong 2x4s, that’s probably not what you need. And the lower the demand is, the lower the price.  

But a well-cut slab that’s clean and can be used right away is going to be worth more to someone working on a project who needs it. Some sawyers can fetch a couple hundred bucks for a large two-inch live-edge slab if it’s a desirable species of wood. 

Dimensional Requirements

Most people can go to the hardware store and pick up lumber, but not everyone has access to the versatility of a sawmill. It allows you to create unique cuts of wood, from gorgeous live-edge slabs to cookies which could be used for crafts projects. 

Just being able to mill up lumber in any dimensions you want can be desirable for people looking for uncommon sizes. There may not be a lot of money in milling up 2x4s but there may be more for 2x6s or 2x8s or square posts.  

And the benefit of owning your own sawmill is you can cut lumber to meet your customers’ needs, so maybe try selling your wood before its milled so you can get them exactly what they want.

"You should think about what amount compensates you for all of that work, and how much of a profit you want to make on top of that, if any."

Some members of the Woodland Mills community use distinctive styles of lumber for various projects, and if there’s a market for live-edge slabs or other unique cuts in your area, you may be able to set a decent rate for it. 

Maybe go to your local crafts shows or make friends in your local woodworking community and see if anyone wants to buy these types of cuts from you. Then discuss it with them and see what is a fair price for milling and selling it to them. 

Local Resources

Depending on where you live, there may be organizations which can help to set the price of lumber. For example, if you live in Ontario there is the Ontario Woodlot Association, which has a page where members of the community can post products, services, timber or lumber for sale.  

You can use resources like this to gauge the demand for local lumber and set your own prices.  

Facebook groups, like the Woodland Mills Product Owners and Community page, may also be extremely helpful in finding how much you should charge. When asking for help, be specific about what you’re trying to sell, so others can get enough details to help try and find a price that makes sense for you, whether it’s a general price per piece or an amount-per board inch. 

Your Costs

Another factor to consider when pricing anything, lumber especially, is how much you paid for it.  

In many cases, members of the Woodland Mills community will be cutting down trees on their own property, so the actual cost of acquiring the wood may be zero, but there are other things to factor in.  

The time you spent cutting down the tree, then milling it up and storing/drying the lumber is part of your “costs” you should consider. Plus, you should consider the cost of purchasing your mill and setting it up in the first place.

With that in mind, you should think about what amount compensates you for all of that work, and how much of a profit you want to make on top of that, if any.

Does it Matter?

Here’s a question you can ask yourself too, does it really matter how much I sell this lumber for? 

For some people, the answer is going to be yes because they need cash from selling lumber to put into other projects, their business or anything else. In those cases, you’ll want to research and find what is a fair price on the market for selling your lumber to get the maximum value. 

But for other sawyers who are doing this casually and may not need the money, maybe it’s worthwhile to exchange your lumber with people who need it for less than its market value?  

There may be a friend you know who could use it for a project on a budget, or you may have connections in the woodworking community who would repay a favour of free wood?

At the end of the day, not everyone is interested in making a profit off their mill, and if you’re able to trade or barter your lumber with others for things you need, or even just for the sake of being a good friend, then maybe that’s more worthwhile than cash?