Tips on making your firewood business grow!
Tip #1: Work smarter, not harder. The more you can divide a basic cord of firewood into bundles or pallet loads, the greater profit you're going to make from each cord of wood you sell. Selling a large number of small stacks or bundles will increase your profit over the selling of a single truckload of uncut wood to one dealer.
Tip #2: Don’t expect to do all the work yourself. If you can set your business up using several part-time workers to do the physical labor, you'll realize greater profits and not have to do too much strenuous work. Remember, as the business owner and operator your time should be devoted to selling the final product. Choosing the right wood processing equipment can also cut down on the time and energy you need to spend on building your wood supply.
Tip #3: Don’t micro-manage. If you try to be a part of every aspect of the operation, all your time will be spent completing small chores. Use your skills to procure, advertise, and sell the wood, and let your helpers use your power splitter and stack wood. Successful advertising can only be done by you, but any number of helpers can cut and stack firewood.
Tip #4: Hire pros if you go wholesale. If you decide to become a wholesale supplier, you’ll need to hire commissioned sales people to call on the retail outlets in your area. You'll definitely need help in covering all the possible opportunities for retail sales of your firewood by other dealers. You’ll also need a higher grade of wood processing equipment, such as a splitter designed to process longer wood lengths and firewood processing equipment that gives a single operator the ability to manage the whole operation.
Tip #5: Specialize. Think about concentrating on the wholesale marketing of pre-bundled wood. Many grocery and convenience stores like to purchase pre-bundled wood to offer to their customers during the Fall and Winter months. Have your salesmen call on all the possible retailers: grocery and convenience stores, fireplace shops, apartment or condominium managers, Christmas tree lots, and other retail firewood suppliers.
Tip #6: Advertise. If you decide to do all the selling yourself as a retail outlet, you'll need to advertise widely and consistently. Start with a large three-column wide by four-inch deep display ad in your local paper. The sports section is often a good location. Most newspapers will offer you all the help you need in laying out your ad.
Tip #7: Open with a bang! Plan the appearance of your first ad for a Saturday morning paper to coincide with your Grand Opening. Make your opening a big event, the same as any store's grand opening or special sale. Serve free coffee and doughnuts, and have balloons for the children. Ideally, this opening should be staged on a weekend in late September or early October, and be designed to acquaint the people in your area with your firewood business. Don’t forget to show your wood processing equipment in action. Once your potential customers see how easily you can split logs and turn them into firewood, they’ll be less likely to tackle the job by hand on their own.
Give away free prizes requiring the visitors to your event to fill out simple prize drawing forms with their name, address, and phone number. The prizes can be a free cord of wood, dinner for two at a local restaurant, or even theater passes. These names, addresses, and telephone numbers will be used later for advertising your services and soliciting orders via direct mail or telemarketing.
Tip #8: Learn what your customers want. The whole purpose of your grand opening is to let people know that you're available to serve their needs, to help them to discover your location, and to plant in their minds the idea that you can supply them with the best means to keep warm when the weather turns cold. Many will find your services to be more convenient, time-saving, and less bothersome than whatever methods they're currently using to get firewood. As you talk with your customers, listen to their complaints about firewood procurement, and then alleviate those problems with the services you provide.
Tip #9: Keep your business visible. Buy a small 2 by 4 inch display ad in the yellow pages of your telephone directory. Post advertising circulars on all the area bulletin boards and leave a supply of business cards with woodstove and fireplace suppliers, insulation and remodeling contractors, and lumber yards in your area. And follow the lead of the snow tire stores. Whenever the weather forecast shows a cold front or winter storm moving into your area, invest some money in radio and newspaper advertising. If you can advise people of your availability in the moment of their need, they are more likely to buy from you upon impulse than to shop around and inquire of your services in the months they don't generally buy wood.
Tip #10: Use your “database.” You can begin profiting from the names, addresses, and telephone numbers of people who turned out for your big opening event. Set up a telephone selling program to follow up on those who had registered. Call and inform each customer that you're offering a special price on firewood. Are they prepared for the coming cold months ahead? May you offer them a special deal? How much would they like you to deliver? You can generate a large amount of business just by reminding folks that they need to be well prepared with wood to beat the high cost of heating fuels and to maintain a comfortable, cozy home this coming winter. Also consider mailing a postcard or letter offering a special discount if the recipient will come to your location within the next ten days and make a purchase.
Tip #11: Build customer loyalty with an outstanding product and service. Hardwood burns the longest and gives off the most heat. Firewood that has been cut in the spring and seasoned through the summer is the best and most people will be willing to pay premium prices for it. Giving the customer a little extra for his money, perhaps more wood, a sack of kindling, or seasoned wood for no extra charge, will result in greater and longer lasting success than a quick profit scheme. People remember the extra service and kindness they're shown, and will reward that service with buyer loyalty.
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