Cost of Heating oil; Cost of lumber?

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Just asking:
If the cost of Heating this winter goes up like the cost of Gas,
Should we be worried about cost of lumber due to increase in demand for firewood?
And just how secure is my wood stash I have in the Garage? Should I be looking for a better lock on the garage door?
There is talk that heating oil could go up a $1.00 per gallon, on top of the high prices last winter. A couple of cords of wood is beginning to look cheap.
Phil
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Phil (in ed171$430279bf$d8ea7d03$ snipped-for-privacy@123.NET) said:
| Just asking: | | If the cost of Heating this winter goes up like the cost of Gas, | | Should we be worried about cost of lumber due to increase in demand | for firewood?
Not until people start buying lumber to put in their furnaces.
| And just how secure is my wood stash I have in the Garage? Should | I be looking for a better lock on the garage door?
Depends on the wood. If you've stashed 2000BF of rosewood, then you'll probably want /two/ locks.
| There is talk that heating oil could go up a $1.00 per gallon, on | top of the high prices last winter. A couple of cords of wood is | beginning to look cheap.
Yup - cut and split it yourself and it'll warm you twice.
It's probably worth pointing out that the prices of wind and sunshine haven't changed...
-- Morris Dovey DeSoto Solar DeSoto, Iowa USA http://www.iedu.com/DeSoto/solar.html
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wrote:

Be more worried about the cost of lumber and firewood due to the increased cost for the fuel to cut and transport the stuff.
djb
--
~ Stay Calm... Be Brave... Wait for the Signs ~
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Talk? My oil contract this year is 93 more that last year. Current prices in CT/MA are about $2.20.
Unless you cut your own wood, the cordwood prices tend to follow close behind the oil prices.
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two three four five.com> wrote in message

Ain't that the truth! Thing is, the price of hardwood pulp at the mill has remained the same. Jobbers are just hooking us.
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George wrote:

True of virtually all commodity markets...
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Economists will describe this as a demand pull for alternate, or substitute goods. Economists are a dour lot.
Buy a good chain saw and a used pickup truck. Oh, and a lathe.
Patriarch, who once upon a time...
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The price is worth not skidding wood on my place, that's why I'm still buying, just a bit cheesed at the gouging.
This hauler brings, at my request, two or three cords of large stuff as lathe fodder. Paid the whole ten cords and more in turnings just last Saturday.
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Are the firewood folks really burning that much fuel to cut and haul firewood, or is it all extra profit like the oil companies?
Brian Elfert
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writes:

There is some fuel involved, but mostly "because then can". I'll have to check out hte prices now, but last year, one supplier was getting $175 a cord. My rule of thumb is 1 cord = 100 gallons of oil so it did not pay to do all the labor of cutting, hauling it in, etc. Oh get near the big cities and that $175 cord was $300 in Boston.
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writes:

Take our situation. They can haul it sixty miles one way and get ~$65 a cord (sells by weight, not volume) as pulp, or ten miles and hook George for $90.
Oil companies are making more or less the same per cent profit as always per barrel, but if the price goes up, the total dollars do as well, enabling the press to state that their profits are "at record levels."
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I've not done this, but I bet if someone calculated the percentage of profit versus revenue that the oil companies are making a higher percentage these days.
Any company that doesn't have higher profits year after year isn't keeping up with the yearly growth in the economy.
Brian Elfert
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Brian Elfert wrote:

Reading annual/quarterly earnings reports indicates that quite a few aren't, then...
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Duane Bozarth wrote:

AFAIK, it's unusual for a profit percentage to increase, or drop, by a whole lot. What usually happens is more of an item is sold, at the same percentage of profit, so that there is a gain in profitability. There are numerous tactics for increasing profits that include dropping the profit per unit sold, in order to increase the number of units sold.
I read somewhere that one major oil company had a 40% increase in profits, while another had a 60% increase. There was no way to tell what method was used, but I do know that distributors who are attaching what appears to be 6-8 cents a day to gasoline prices are not doing it because the refinery is passing that along. When a barrel of oil goes up, the price of the gasoline goes up, and the price of the gasoline to the refinery/distributor has not yet risen, and may not for a week or two. Thus, the public is getting gouged rather nicely. One local outfit priced their gas at $2.39.9 when the truck filled their tanks. That price increased to $2.47.9 today, though no truck has been near the place. What happened? I think the owner drove through town and realized he was a dime under anyone else, so he tacked most of that on.
Profiteering is not at all unusual in such situations. I don't know whether it is moral or not, but I do know that I'd rather pay more for gas with a dealer who prices it honestly from the start than I would from one who pops the price based on what he discovers the market will bear after he has set his normal profit percentage.
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On Wed, 17 Aug 2005 16:18:52 -0700, Charlie Self wrote:

The retail dealer has to charge replacement cost, so no truck is necessary for a price hike. Took a long time for me to understand that point.
The previous poster's choice to choose a dealer who doesn't profiteer is a nice example of what some economists don't like to admit: that there are non-economic considerations in economic decisions.
Remember, we lowly consumers have power too: it's just more diffuse and harder to marshal. Carpool, buy domestically, walk; just don't buy your usual amount of gas. Suggest the same thing to your friends, coworkers, and anonymous correspondents on Usenet. (Full disclosure: The family is about to do the summer vacation thang in a Jeep Cherokee. Whoops.)
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"TANSTAAFL"
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A Cherokee is a fairly efficient SUV compared with Suburbans, Tahoes, Expeditions, gas-powered Excursions and the like.
I am going on a 4,000 miles trip in September with 3 or 4 of my buddies. We will get a whopping 8.5 to 9.5 MPG on diesel. We will tow an RV.
My regular car gets 40MPG as I don't drive my truck that much especially now.
Brian Elfert
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Australopithecus scobis wrote:

The reason you took a long time to understand "replacement cost" as a charge from dealers is because it is utter bullshit. I bought a briefcase the other day, and paid for it based on what the seller had paid, not on what the seller is GOING to pay for his next bit of stock. Once he gets the new stock in, the then raises prices.
Carpooling? Uh, I live in the country and work at home. Not effective. Actually, not possible. I use about one tank of gas every 2-1/2 weeks in my pick-up (Chev S10 gutless wonder). We probably use more in the car, but that's a 30 MPG Stratus (Dodge's ultimate POS). We time our town visits so when I need something, my wife does shopping, etc. Believe me, that's a royal PITA but probably will become more and more necessary as time goes on. I also don't zip into town for one item anymore, unless it is essential to the success of an article that is deadlined.
I may be back on a small motorcycle soon, though I quit riding when I moved down here 28 years ago. If there is still a 250cc road bike out there, or even off road, I might be able to up my 25-30 MPG vehicles to 55-60 MPG. I don't always need even a small pick up bed for my treks into town, nor do I need the extra space in a car to go to, for example, the library.
Yeah, all that said, I'll be heading to the truck terminals in Roanoke (about 35-40 miles away, call it 85 miles round trip) in a buddy's over-sized Ford pick-up to grab two jointers for an article. My truck won't handle the size or the weight, so I buy him at least 20 bucks worth of gas for that one trip. Probably $30 just to be nice.
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You charge people for work in your shop based on purchase price of the lumber, then go out and get replacement stock? You're a saint.
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George wrote:

You are not exactly making a statement there. I charge for what I am using, or plan to use, based on current costs. I cannot charge for replacement costs, because I don't know if they'll be higher or lower...obviously, with gasoline in recent years, higher is the trend, but that's not true of everything, yet. The higher cost of transport and our totally asinine transport system has to catch up, sooner or later, with sooner being my bet.
But the fact remains, if I drive around town to see what others are charging for what I already have on hand before pricing something to a customer, then I'm putting myself in a strange position. I KNOW what I paid for it. I KNOW how much I need. I do NOT know what replacement cost will be.
As an incidental point, I didn't notice a damned one of these dealers knocking off a nickel or a dime when they could tell that tanker load prices were dropping a few months ago. Nope. They waited until the new product was in the tank before dropping the price. Funny thing. I figure it is a similar deal with raising prices.
If it isn't, it's no wonder no one respects businesspeople anymore.
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Business is about making money. What you want goes under the name of charity.
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