Hi Arrow....I wasn't kidding or trying to be sarcastic in my previous post, sorry if it came accross that way. Sometimes a guy can mess-up typed words versus just standing a talking with someone. I don't have a real skidder and I'm trying very hard to NOT become a "logger".
I have my hands full trying to care of all of the logistical planning, processing and marketing of just the firewood end. For example I'm buying semi log truck of tree-lenght logs and then we process them into cut & split firewood, store that material to let it dry, and then either load bulk stove wood into a dump truck for delivery and more recently we're getting into the bundle-wood mfg process. Another major cmmitment I'm facing right now is building a large drying kiln. These are the little .75 cf (3/4 of cubic ft) shrink wrapped bundles you see at the local quick stop gas station. However our target market is camp grounds and RV parks for our bundle wood.
Anyway, back to the log skidding part. Currently we have some challenges with a supply & demand issue. We need a certain amount of firewood grade logs delivered to us, however most of the loggers in this region sell lumber grade logs for a certain price, house logs for a higher price, and the firewood grade logs fetch the lowest price. Of course its common sence that no one would go out of thier way to work the same for less money, therefore I'm always on the lowest pecking order, so to speak, when it comes to buying logs. I'm having a hard time buying enough raw material, tree lenghts firewood grade logs. By the way, I have an "open door policy" w/ all of the logging outfits in my region, and always pay cash on the spot for my product, plus do my best to use good people skills when dealing w/ different personalities....in other words I'm not trying to low ball them on price, or act like a jerk so they won't sell to me, the problem is simply supply and demand; frankly I'm buying just as much or more logs than anyone else.
Soooo, to bring this full circle I'm exploring other options to increase my supply. My main option is to get the logs myself, which reguires another major investment in a logging truck, maybe a feller-buncher, skidder, more insurance, large $ bond for bidding on state or federal timber sales, and on and on....the logging business is a business in itself. I've got my hands full doing firewood.
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As to whether or not a guy can make money in the firewood business is hard to say. I suspect a lot depends on how serious you want to make it, if its your only source of income-or you have another job and do it part time, plus other factors like demand for firewood in your area, and as I mentioned above do you have access to plently of raw material to process into firewood.
In my region the wholesale price for a logging truck, about 9 cords, of tree lenghts Birch with maybe a few Spruce mixed in is about $1,000-$1,200 depending on how far they truck it. Retail price for dry and processed stove wood is about $200 per Cord delivered. As you can see there isn't much margin by the time you buy it, process it, hold it for a year (tie up your $ for a year), and then load it into a delivery truck and go dump it at the customers location.
On the other hand, there is more margin in the bundle wood, however it takes a lot more labor. That said you're getting paid for your labor, or a lot of times you can provide a service to the local community and put some high school kids to work for the summer making bundles, and then you go deliver them to the RV parks and camp grounds during the summer. There are many small buiness' scatered around that are operated by one man who wants something to do in his spare time and makes a little extra money. Plus if you have your own teenage kids putting them to work processing firewood instills good work ethic and its just old fashion hard work...they make some extra money.
