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Lumber prices😳

Jackalope

Dignitary Member
Staff member
38,841
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Wish it worked that way for us Mom and Pop shops. Service oriented local businesses could use some help. Not due to lack of work. Phones ringing more than it ever has in 24yrs. Not enough employees. Shortage of competition. Guys who mow on the side are getting so much more money and OT at their 9-5 job they are getting out of business. How can I hire a 20yr old kid for $10-12-15/hr if they can flip burgers for $15/hr? Start at local factory for $18-20/hr AND receive $1000-2000 sign on bonus and benefits in 30 days or less? I can tell you I am dropping some accounts next year and replacing with higher paying accounts. Got to start bidding to where we will be able to pay $15-22/hr if we want to attract a few employees. Unbelievable. I distinctly remember the first guy I placed at $10/hr to be a foreman. It was monumental. I was worried if we could still cash flow and cover the extra wages. It is laughable to type that out now. Of course, new trucks were $20-25k and not $40-50k. 7.5' straight plow was $3000 and not $5000. New mower was $6000-6500 versus $12500-15000. My fuel was well under $2/gal as well. Diesel was $1.25 consistently. But my prices haven't doubled. Times are changing. I'm getting older. Just need to keep up with the times I guess. . . . Or hang it up. (That isn't in my plan.)

Point being: big corporations can do this. It is a lot tougher for small service businesses to jump prices to protect profits. Our costs are up, but we can't inflate prices like the corporations very easily.

Seriously look at raising your prices, my wife has been reworking yearly renewals with 20-30% price increases for next years herbicide spraying services. 90% of the clients signed without an issue. Obviously their sales guys gave the clients a heads up that there would be an increase but they didn't know how much until the invoice landed. The 10% or so that did still ended up signing. I think out of the couple hundred they sent out so far one or two have dropped. All business accounts no residential and they range from 6k to over 400k.

Brock and I were talking about vehicles last night. 4 or 5 years ago I bought a 2016 Durango with 21k miles on it for 29k. I've put 72k miles on it since then, Carmax today has the same make, model, trim and color for 29k. Freaking Nuts.
 

DJK Frank 16

Senior Member
Supporting Member
9,358
133
Hardin County
With the cost of herbicide and fertilizer 20-30% shouldn't be a tough sell at all. If fertilizer doesn't come back down the small applicators like myself won't be able to compete with the likes of TruGreen.

Phil - I'm hearing Ferris mowers are going up $2,000 or so if they haven't raised already. We added another Bobcat mower to our lineup just to get one bought before they increase, I have to think that other manufacturers will follow suit. I had Steve Myers in Cridersville put a Boss TGS on my truck last week, I was browsing around and their 60" Toro w/ My Ride sticker was $16,000 and some change, down from MSRP of $19,000. For a 60" mower?? I had the same salt spreader quoted two seasons ago, I haven't dug the old quote out yet but I know without looking it's up $600-$800 from then to now.

I agree with you though, hard to take the lady down the street from a $35-$40 mow and trim to $50-$55 to cover the rising cost of everything.
 

hickslawns

Dignitary Member
Supporting Member
39,721
248
Ohio
That is the problem. Go tell a customer you've taken care of for twenty five years "hey, your price is going up $10-15/cut. I appreciate your loyalty all these years."
 
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5Cent

Dignitary Member
Supporting Member
12,291
212
North Central Ohio
Another angle is it's gone up $0.60/yr then ($15 increase over 25yr span), you just didn't pass it along. What's driving the increase...materials, labor, overhead, productivity changes? I would expect that to happen every year, the mix only changes. As long as your CM% is hitting your business goals, then no change. Just so happens the squeeze is there now, both CPI and PPI reflect.
 

hickslawns

Dignitary Member
Supporting Member
39,721
248
Ohio
I'm simply too nice. These customers become life long family friends. I'm okay bidding new jobs this way. It is the loyal 10-15-20yr customer that makes up 75% of our volume where I fail to increase. It makes me a nice guy who will never run out of work and referrals. It prevents me from growing and maintaining like I should. 100% self inflicted. I own it. Only one person can change it. Sadly, it is going to need to happen if I want to maintain margins. A guy can only cut costs so much. We simply don't work on the volume a massive corporation does. Harder to absorb, harder to pass along, and to grow to the next level brings another list of headaches I've tried in the past. I'll stay the size I am. I'll adjust when I can. I'll sleep at night with a clear conscience and know my customers and reputation are more important than the bottom line. I'll just work harder and make it up in other areas. Anyone have the number to BioLife? 1-800-donate a kidney? Lol
 
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Bowkills

Well-Known Member
2,577
85
Nw oh
20220110_162635.jpg
over 200 dollars n 2x6s laying there.....sucks.
 

Bowkills

Well-Known Member
2,577
85
Nw oh
Still waiting for the price plunge to to purchase a fair amount of 2x12 floor joists. Keep this 5 dollar gas going im expecting building to hit the brakes. Not sure how people are still spending and banks are lending but id think something will change soon.
 

5Cent

Dignitary Member
Supporting Member
12,291
212
North Central Ohio
It's down to $600, hope retailers start to drop soon also. The brakes have been tapped in the housing markets, starts are way down.
 

giles

Cull buck specialist
Supporting Member
Columbia gas is also doing a 300% increase on infrastructure cost. Heard it on the radio today. Something like $45 a month increase. Not sure, don't have that bill.
 

Jackalope

Dignitary Member
Staff member
38,841
260
It's freaking nuts. Even galvanized fencing. To do just 16 yards of 6 foot chain link fence is right around $450.

I don't know how people are affording to build a house. A 10 foot section of 3/4 black pipe is $30 at lowes.
 

"J"

Git Off My Lawn
Supporting Member
56,743
274
North Carolina
You’ve got people trading in perfectly good vehicles, just too buy something newer @ above MSRP. Let that sink in for a moment. There are people paying $5k more than MSRP! A just put that payment into their wheel house and where do I sign!!!! 🙄
 
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