The Value of Your Timber Supplies How to Determine the Right Selling Price
Despite all the toil and effort, landowners and timber sellers seldom get the right price for their timber supplies. On the contrary, selling timber should be quite a lucrative exercise, if you understand the factors involved in making a sale. Here in this article, we will help you in understanding the basic steps involved in the valuation and sale of your timber supplies. The next time you engage yourself in a bargaining process for your timber supplies, make sure you walk in with a head full of information.
Engage a Professional Forester
Just like we need a specialist doctor to cure or treat an ailment, we need a professional forester to handhold us through the entire timber selling process. As they are the ones that possess niche skills and information on when to harvest, how to effectively monitor timber growth and sell timber from a financial and ecological perspective. They also have a strong network and help you to connect with a score of genuine buyers. They can help you with a precise valuation of your timber supplies and even help you develop a forest management plan so that you can make better profits. The advantages of engaging an expert are really endless. |
| Timber Supplies |
Determining which timber to be sold
The professional forester will guide you through a number of processes such as the maturity of the tree, the current market demand and dynamics for timber, and also ensure you are shelling at the right time to maintain the quality of the woodland for further production. Certainly, as landowners, you may hold some expertise in this area, but a true birds-eye and an analytical market view and valuation dynamics are what your expert will bring to the table.Ascertaining Timber Value
Contrary to what you may think, ascertaining the value of your timber supplies is a cumbersome, extensive and tiresome process. Some of the factors or costs you will have to consider are:- cost of cutting/felling the tree
- transportation costs
- insurance and worker compensation
- workers insurance & social security
- equipment costs, wear & tear and depreciation
- interest on capital borrowed to harvest your timber supplies
- erosion control practices to ensure your timber supplies reach the buyer in good condition
Apart from this, consider factors such as species of timber, the diameter of the tree, the ageing of the wood, the maximum log length you can provide etc. It would be advisable to rope in an expert to help you ascertain the right value of your stock. It would be unfortunate and cost you a heavy loss if you sell your timber at a value that is much less than what it’s actually worth.
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| Timber Supplies |
Determining the right time to sell
Again, there are too many factors that influence this decision-making process and deciding the perfect time to make the sell. Some personal factors would include your financial preferences, interest costs you are incurring, the storage capacity in your warehouse and availability of manpower. On the other hand, your timber supplies should be felled at the right time in order to avoid deterioration of wood, this is something your forest consultant can advise you on. Also, they are well trained and equipped to analyse the market trend and demand and can help you ascertain the best time to bring your timber supplies into the market in order to bag the best prices and make a clean profit.
You will also have to make a decision on the amount of timber you are selling out. You have to determine whether you are selling per unit or a lump-sum amount of timber. This will depend on the price you are being offered and the kind of sale administration you have, among many other factors. Do keep in mind that timber selling is saturated with many regulations and laws that your expert can help you meet and understand.
It is important that your hard work and toil help you churn up a decent profit margin. Plan the sale of your timber supplies and engage an expert at the very onset to safeguard your interests.
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