Lumber Order Guidelines/Suggestions

[Tyler Divine]

Are there any tips/tricks on saving on lumber costs from suppliers? Reasons for differences in take-off orders from a set of engineered drawings/plans?

Thanks!

[Account Closed]

Hi @Tyler Divine, yes there is...

1) Provide vendors with a takeoff (you can outsource this) - no two individuals will produce identical takeoffs and if it's a sales rep doing it, cavet emptor.  As well, be sure to be specific about what is needed... stud grade is cheaper than #2, SPF is cheaper than hem fir or douglas fir, OSB is cheaper than CDX, and pine CDX is cheaper than fir CDX, etc., etc., etc.

2) Scope each quote, line by line for accuracy, for quantity and product... mistakes are abundant.  Keep in mind that vendors will substitute items if they don't stock what's been sought (i.e., vendors may not stock 14' long dimensional lumber, so they'll substitute 16').

3) Since lumber is a commodity, prices fluctuate constantly. If a vendor purchased multiple truckloads of material at X cost and the market goes down, the material they have on hand is essentially overpriced.  Since the margins are typically so tight on commodity lumber, the supplier either has to take the hit and match the market, or ride it out.

4) If you're including trusses in this, those can vary dramatically - huge swings in price... in part because the design is subject to the individual designer as well as some supplier have in-house truss capability while others act as a middleman.  Trucking is a cost to consider too... the further away from the plant, the higher the transportation cost.

5) As noted in #3, lumber is a low margin commodity... takeoffs take a lot of time and there is little reward for a rep.  Start getting quotes on the margin opportunities such as windows, doors and trim then leverage those to get the aggressive lumber pricing.

6) Speak with the sales manager and let them know what you're doing... if you have some volume to speak of, they may very well be eager to help.  And volume doesn't have to be multiple projects, it could just mean buying more of the products they sell.

My personal suggestion is to find a really good sales rep who knows the difference between landing a sale and landing a customer.  They'll be worth their weight in gold.