How can you make money with firewood?

The best money is in selling firewood in bundles. You don't necessarily have to reach out to bulk firewood buyers with truckloads of wood, but many consumers want to buy a bundle big enough to stock their fireplace for at least a week or two.

smallbusiness.chron.com - How to Sell Firewood for Profit - Small Business - Chron.com

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When the weather turns cold, consumers start looking for firewood. If you happen to be the lucky owner of an overabundance of logs from fallen trees, you may be seeing the business opportunity in your stockpile. But selling firewood is more complicated than you may realize. You’ll need to make sure it’s in the right size and quantity for the consumer market, plus have a way to transport it.

Make Money Selling Firewood

The biggest challenge you’ll face in selling firewood is getting inventory. If you simply have some extra firewood from a fallen tree and you see an opportunity to make some money, that won’t be a problem. But you’ll still need to cut it to the size preferred by consumers and then market its availability. If, on the other hand, you see firewood sales as a business opportunity, inventory will be your first hurdle. Not everyone can grab a chainsaw and start cutting down trees. First, there are regulations; and this can be dangerous and very labor-intensive. However, if you do have access to excess firewood, you can make money.

How to Sell Firewood Bundles

Before you put your firewood up for sale, you’ll need to pay close attention to customer demand. Most consumers buy firewood for fire pits or fireplaces, which means they expect to purchase it in a specific size and bundle. Firewood is retailed in sections called a cord, which measures 128 cubic feet in total. The best money is in selling firewood in bundles. You don’t necessarily have to reach out to bulk firewood buyers with truckloads of wood, but many consumers want to buy a bundle big enough to stock their fireplace for at least a week or two. If you can shrink wrap them, you may be able to appeal to local stores and campgrounds, which are always on the lookout for firewood that they can resale to their own customers.

Start a Firewood Processing Business

If you want to really make money, you can take it to the next level by starting a firewood processing business. This will help you sell wood for money on an ongoing basis, taking advantage of the fact that you can quickly provide bundles of firewood in the exact format customers and resellers want. In order to start as a firewood processor, though, you’ll need the right equipment. This equipment can be extremely pricey but once you have it, you’ll be able to insert logs and have them cut and output in the finished cut size you need. In addition to the purchase of the processor, you’ll need a tow vehicle to pull it to the wood you need to cut.

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What Stores Sell Firewood?

Firewood is a seasonal offering at many stores, with many owners stocking up in the early fall months and phasing out their stock mid-winter. If you can prepare your inventory early enough, you may be able to get into those stores. Large retail chains like Lowe’s, Home Depot and Walmart often stock firewood, but you may find that the big box guys already have contracts in place for these items. For best results, you might want to narrow your search to local businesses. You may be able to set up a deal with a family-owned hardware store or a small local grocery chain to provide firewood each year. If you can get multiple bulk firewood buyers like these lined up, you’ll be able to build a strong business.

Marketing Your Firewood

You don’t have to work with t*hird-party resellers to sell wood for money*, though. There are plenty of consumers who buy wood directly from sellers. The tough part with direct sale, though, is getting the word out to the customers. You can use sites like Craigslist and Facebook Marketplace to find those customers, as well as simply setting up a website that will rank well in Google local searches. One of the best marketing tools, though, is a roadside tent with a good sign. Make sure you choose an area that’s highly visible to heavy traffic, while also having an easy way for passersby to pull off and take a look at what you’re offering. You could also check with local farmer’s markets and fairs to see if they might offer you a booth, especially when firewood is in season.

Sourcing Wood to Sell

If you’re hoping to sell wood for money, you’ll first need a reliable source of firewood on an ongoing basis. Many tree removal companies make their way into the business simply by having a large surplus of wood that they need to offload. Customers pay them to remove damaged trees, they collect the wood and, with the right processing, can bundle and sell it to local retailers or directly to customers. Chances are, you don’t own a tree removal company, though. If you plan to source the wood yourself, you’ll need the proper wood-cutting tools and equipment to cut down the trees and transport them. This means a good gas-powered chainsaw, axes, a bucksaw and a heavy-duty trailer for hauling it.

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Risks of a Firewood Business

As with many businesses, firewood isn’t without its risks. Once cut, you’ll find wood retains moisture and therefore will need to be air dried for some time before you can sell it. Bulk firewood buyers may also be aware of the species of wood, so you’ll need to conduct research in your area to determine what types of wood are in demand. Where you s*tore your wood while it dries* is also important. It will need to be a well-ventilated place away from moisture. You won’t want to keep your wood outside for too long, as wood borers and termites can significantly reduce the volume of the wood you’ve collected. Storing wood in an inside area can keep it safe from moisture as well as damaging insects.

Setting Firewood Prices

Once you’ve sourced your products and have them bundled and ready to go, you’ll need to set pricing. Create a rate sheet and be prepared to hand it over to customers who ask. Not having your prices listed on your website could lead to losing customers, so you’ll have to weigh that against the risk of letting customers see what you’re charging. Your pricing depends on how you’re selling your firewood. Here are some options: Individuals – This can have the lowest profit margin, but it also is the easiest. You can sell firewood to your neighbors for only $175 to $225 per cord within a small delivery area. Add fees for delivery and stacking, and your profits will increase.

smallbusiness.chron.com - How to Sell Firewood for Profit - Small Business - Chron.com

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