Y'all Been Checkin' Lumber Prices?

[Handloader109]

Don't really understand the wood prices still being up so much. I buy the imported spruce 1x stuff from big box and it is only up 10 percent from 12 months ago, 2x is still over double. supply and demand I guess. or robbery

 

[Snobdds]

Demand has not tapered off one bit around here...

Just passed the lumber yard on the way to work this morning. Two trucks with stacks of wood being unloaded.

Supply is not the issue. People are willing to pay more for lumber and lumber stores will gladly provide it at those high prices. Economics 101.

 

[buck12]

Demand has not tapered off one bit around here...

Just passed the lumber yard on the way to work this morning. Two trucks with stacks of wood being unloaded.

Supply is not the issue. People are willing to pay more for lumber and lumber stores will gladly provide it at those high prices. Economics 101.

I talked to the owner of a building supply company back in October. He said he not making any more on lumber than he was before. He said what was happening was almost criminal in his mind.

 

[MoKelly]

I talked to the owner of a building supply company back in October. He said he not making any more on lumber than he was before. He said what was happening was almost criminal in his mind.

Usually, the retailer does not make more “percent margin” as prices rise. They pay more from the supplier and raise their prices to keep the percent margin the same.

If their percent margin is 25% and they pay the supplier $100, they sell for $125.

If the supplier increases to $200, they sell for $250.

The percent margin is still 25%, but the cash margin went from $25 to $50.

It’s a way retailers can say they make no more profit.

MoKelly

 

[buck12]

Usually, the retailer does not make more “percent margin” as prices rise. They pay more from the supplier and raise their prices to keep the percent margin the same.

If their percent margin is 25% and they pay the supplier $100, they sell for $125.

If the supplier increases to $200, they sell for $250.

The percent margin is still 25%, but the cash margin went from $25 to $50.

It’s a way retailers can say they make no more profit.

MoKelly

Yep, the retailer is not really making any more. Also in my area standing timber has not had an increase in value to match the cost of lumber to the end consumer. So if the person who owns timber is not getting any more and the retailer is not adding more of a mark up, who is making the money?

 

[Sawyer Rob]

I guess I have a small fortune here, by todays standards!!

SR

 

[Snobdds]

Yep, the retailer is not really making any more. Also in my area standing timber has not had an increase in value to match the cost of lumber to the end consumer. So if the person who owns timber is not getting any more and the retailer is not adding more of a mark up, who is making the money?

The mills and transport services.

 

[JethroB]

Sawmills and lumber are like so many other commodity industries. It's boom and bust cycles, make it while you can to carry you through the lean years. Much like farming.

 

[JethroB]

Yep, the retailer is not really making any more. Also in my area standing timber has not had an increase in value to match the cost of lumber to the end consumer. So if the person who owns timber is not getting any more and the retailer is not adding more of a mark up, who is making the money?

The retailer is making more if the percentage markup stays the same. And there's also the middle men taking their cut.

 

[Hay Dude]

So shady how all these commodities; oil, gas, lumber, etc. go up in price the DAY something negatively affects their supply chain, but the price takes weeks or months to come back down, if ever.