I'm guessing you mean "less costly" than Southern Lumber.
Try Global Wood Sources - in north san jose - on Zanker or old bayshore. They can get just about anything if you need exotics or thick stuff.
Aura on Phelan just down Monterey Hwy from Southern Lumber They specialize in ply and veneer but have hardwood stock
By appointment only - Baker Hardwoods in Morgan Hill. He's got a bandsaw mill and can cut to your specifications.
Jackel Enterprise - in Watsonville - a little farther away but well stocked and will, for a fee, mill to your specs.
You might also join the Yahoo group Bay Area Woodworkers Association BAWA. They might have more suggestions.
charlie b san jose, ca