Mg Lumber Yard (2024)

FAQs

How much do lumber yards mark up lumber? ›

It varies: 2x4, 2x6, 2x8 SPF and fir 8-20' is usually 20%. 2x10 2x12 SYP- 20-25%. Studs - big quantity items the builders usually focus on and shop hard -10%. Plywood/OSB - 15%.

Sawmills and buyers of lumber often use board feet as a standard unit of wood measurement. Below is the formula used to calculate how many board feet a piece of lumber is.

Better Prices

In many cases, your local lumber distributor is less expensive for one reason – specialization. Lumber yards are well-versed in the business of wood and how to purchase it at a good price. Prices always vary with different types of wood, but you can be sure your local lumber yard is competitive in price.

Out of this margin, needs to be paid all of the expenses of operations – lights, phones, heat, wages, employee benefit programs, equipment and the costs of flooring inventory. I owned and operated two lumber yards for 17 years. Our typical average gross profit was 17-20%. This is pretty much the industry standard.

Now, most timber is milled and planed to give it a little more of a finished look, and a little more of a consistent size and profile. Because of this extra milling, a 2x4 no longer measures a full 2 inches by four inches. Instead, a 2x4 is really only 1 1/2" by 3 1/2".

A linear foot is a unit of measurement used mostly in the United States and Canada to quantify units of length. It is commonly used for measuring the length of lumber, furniture, or other objects that have a uniform cross-sectional area.

Plain Sawn Milling

Plain sawn is the least expensive and most efficient way to cut lumber into flooring planks. As such, it is also the most common. Plain sawn milling involves cutting through the center of the lumber to create parallel planks.

The industry standard for material markup varies, but the markup range is typically 7% to 20%. That said, your exact figure depends on: The type of materials. The complexity of the job.

Markup is the difference between the cost of materials or services and the sales price charged for them. The figure is always based on the cost of the job. In brief, markup is the sales price minus the job costs. Markup shows how much more a contractor's selling price is than the amount the sale cost them.

The price of lumber futures increased 11.1% and is up 8.9% over the past month. Prices are 9.3% lower than a year ago.

How are lumber prices calculated? ›

For example: if you want to know how many BF are in a 4 x 6 x 10 you multiple that together: 4 x 6 x 10 = 240 and then divide that by 12, 240 / 12 = 20 BF. To determine the price, you multiple the BF by the price/BF, so in this case a 4 x 6 x 10 is $. 80/BF, so the price per piece is $16.00.