What is Timber Marketing and Why is it Important
Marketing is a term that almost everyone understands – or thinks they do. In most industries, it applies to the methods and processes used to promote brands and products for sale. In the timber industry, it is a slightly different thing. TWK Agri explains.
Timber Marketing
Timber marketing is the process of taking timber to market to ensure the highest possible return. Timber markets are highly variable and take a lot of factors and variables into account. In order to market timber, a landowner or timber company must understand such factors as supply and demand for various timber products, weather conditions, distance from mills, access, terrain and seasonal harvesting restrictions. Understanding all of these factors help ensure that maximum returns can be achieved. Timber marketing thus consists of making a number of estimations, predictions and calculations on the basis of these many factors.
When selling timber, it is best to work with a company or agency that is not affiliated with any particular sawmill or other buyer. They will be able to market timber objectively, taking the value of the harvest, calculated using the variables mentioned above, into account. Agencies usually compile timber sale bid prospectuses that detail all the aspects of the timber that could influence its market price. Buyers can then make an informed decision based on the information provided in the prospectus.
Lump Sum Vs. Scaled Sales
There are two primary methods to sell timber: lump sum and scale.
With lump-sum sales, timber is sold as is at a fixed price with a lower long-term commitment. With scaled sales, an initial value estimate is presented to the buyer, and the final price depends on the volume delivered to the buyer.
Source: TWK Agri
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