Messages

Subject:
good point and how we got into the business

Bill Tindall, E.Tn.
The only local lumber yard selling KD lumber was going out of business back in the 70's. I thought, I'll buy out their inventory at a good price, sell off what I don't want and have a great stash for future use. After all I had a captive market till someone other company entered the market (it took 30 years for a competitor to show up).

The flaw in the business plan.......Almost instantly we sold out of 4/4 oak, basswood and poplar. So we had to scurry around and find a wholesale supplier for these items to stay in business to sell the other stuff. After a while the 4/4 cherry and 4/4 and 8/4 maple went, and then thankfully the birch. And over the years most of the rest of it sold while we meanwhile sold thousands of bd ft of the stuff in demand. But we still have some 6/4 maple and 5/4 walnut from this adventure, 40 years later, and two exceptionally wide 16' long pieces of 8/4 oak that the right customer never came along for. Some years into this business we acquired 500 bd ft of ribbon stripe genuine mahogany for a "good price". Mahogany was not in fashion in E. TN, we found out. It sat in inventory for a decade and we finally lumped it off to someone restoring a boat. Wish I had it now!

The moral of this story is that there are customers that buy large quantities of what they buy and it is easy to sell to them at market rice. And then there are hobby woodworkers that buy a few boards of this and that at market price and above. As Pete said, if you need to be rid of a large quantity of something that doesn't fit into a high demand market it may take decades to sell at market price, or you will need to price to induce a buyer that can't resist a bargin as in the case of the mahogany we bought and then sold.

I realize that none of this answers your question, but your question can't be answered by us. The best value is to use it .

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