Timber Cruise????

[jcountry]

I am new to the world of selling timber. But here is a concept I don't understand:

Why does a timber cruise cost the seller money?

It seems to me that if a broker is bidding on a job, he should be able to give a free estimate to compete against other brokers..... Just the way general contractors would if they were trying to land a house renovation.

Why do timber brokers charge for their estimate? And why is that charge so high?

 

[protective measures]

The one I use doesn't charge to estimate what he will pay for timber.

 

[wess2000]

In case you don't sell the timber. They don't want to give you a free appraisal. It takes a lot of man hours and time to do it right.

 

[jcountry]

Seems like a rip to me. The guy was telling me that timber prices change constantly-so the estimate is only a rough one anyway.

Plus-you know the broker gets a cut from the other end.

Just surprised it is so expensive to get any idea what the timber will pay.

 

[sagreer]

They give free estimates which is a quick walk-around. A cruise can take about 1 week and they give you the money back if you pick them to cut your timber so you aren't really paying for it. I think the reasons they charge for a cruise are blindingly obvious.

 

[sagreer]

Oh and a cruise locks in a price thats good for X days (usually 30) so even if the timber prices change, you get what they quoted you.

 

[Lobo1]

Oh and a cruise locks in a price thats good for X days (usually 30) so even if the timber prices change, you get what they quoted you.

It would be my luck that the price of timber would double and I would sell it to the broker for half of what he sells it to the pulp mill. LOL.

 

[sagreer]

It wouldn't double but I hear ya. Its not really a risk because its the saw mill that agrees to lock in the price they buy it off the timber buyer for. If the price doubles, I'm sure he would work with you!

 

[jcountry]

They give free estimates which is a quick walk-around. A cruise can take about 1 week and they give you the money back if you pick them to cut your timber so you aren't really paying for it. I think the reasons they charge for a cruise are blindingly obvious.

I don't see it at all.

I grew up around construction-and a lot of work goes into a construction estimate. I have never heard of anyone charging for one of those.

 

[sagreer]

I understand, we worked on a proposal for over a year and luckily got the job but if we didn't, would have seemed like a year wasted. Its just the way things go.
But like I said, you get a free estimate and you can roll with that with no guarantee of prices but if you want an official cruise which gives you a guaranteed dollar amount for your timber, then you will have to pay upfront with the good news being that you will get your money back if you use them to cut the timber. So its not so bad.
I do know cruisers that let you sign a contract to use them and you don't have to pay up front for the cruise.