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I have been scratching the surface of buying lumber at wholesale pricing since we started building our trusses in house.
Our current source for lumber is about 30% below average retail cost which is much better than I thought it would be.
Is a 30% markup on lumber similar in your area? Does anyone have reliable sources on the retail lumber markup for your area that your suppliers are marking up from wholesale market?
We use the random lengths publication to track to the lumber market and convert their pricing per board into the stick price for the lumber we use.
A 30% markup equals a 23% gross profit margin. $10 marked up $3 = $13. Margin = Profit/Sale = $3/$13 = 23.08%
Have any of you considered forming a buying group with other contractors to buy lumber by the truckload or railcar or are you already doing this?
As we build our volume we are looking into more vertical integration and it is paying of handsomely. I have a little money tied up for a bit but it's an investment in future profits.
Comments? Suggestions? Tips? Info? Experience?
Our current source for lumber is about 30% below average retail cost which is much better than I thought it would be.
Is a 30% markup on lumber similar in your area? Does anyone have reliable sources on the retail lumber markup for your area that your suppliers are marking up from wholesale market?
We use the random lengths publication to track to the lumber market and convert their pricing per board into the stick price for the lumber we use.
A 30% markup equals a 23% gross profit margin. $10 marked up $3 = $13. Margin = Profit/Sale = $3/$13 = 23.08%
Have any of you considered forming a buying group with other contractors to buy lumber by the truckload or railcar or are you already doing this?
As we build our volume we are looking into more vertical integration and it is paying of handsomely. I have a little money tied up for a bit but it's an investment in future profits.
Comments? Suggestions? Tips? Info? Experience?