Falling Lumber Prices Keep Job Costs Down

I recently read an article about the lumber industry. The article detailed that the industry is hurting, production is down, and employment has dropped specifically due to the housing crisis including the large inventory of unsold homes and the number of homes in foreclosure. The article mentioned that demand for lumber hit its peak along with the peak in housing starts in mid-2005.

So what does this all mean to us? It means that prices are down because demand is down. I started noticing this at the lumber yard a while back. I’m sure you have, too.

The down-turn in lumber prices has allowed me to sharpen my estimating pencil when I’m doing my job estimates. I can give my prospective customers better prices.

It’s a good idea, though, because prices can fluctuate quickly to put an expiration date on all of your estimates. I like to use a short time period, like 30 days, because it protects me from price increases and it creates a sense of urgency in my prospective customers.

Happy Selling!
John