Smart Sourcing Cuts Material Costs 40%

Cutting Your Material Costs by Buying Smarter

The walnut you pay $12/board foot at the lumber yard might cost $4-6/board foot direct from a sawmill. For a custom woodworker going through 2,000 board feet annually, that price difference represents $12,000-$16,000 in savings—money that goes directly to your bottom line.

Direct sourcing isn’t for everyone. It requires relationships, storage capacity, and willingness to work with rougher materials. But for woodworkers ready to make the shift, the financial impact is transformative.

The Lumber Supply Chain

Understanding where markups occur helps you find savings:

Sawmill: Converts logs to rough lumber. Sells green or air-dried. Lowest prices, highest variability.

Wholesaler/Distributor: Buys from mills, kilns the lumber, grades and sorts. Sells to retail lumber yards. 40-60% markup.

Retail Lumber Yard: Provides surfaced, ready-to-use stock in convenient quantities. Another 40-60% markup.

Each step adds value—kiln drying, surfacing, sorting, retail availability. But each step also adds cost. Buying upstream means trading convenience for savings.

Finding Local Sawmills

Start your search:

• State forestry associations: Many maintain directories of licensed sawmills.
• Portable sawmill operators: Search for “custom sawing” or “portable sawmill” in your area.
• Woodworking clubs: Local members often have established mill relationships.
• Farmers and landowners: Many rural properties have small sawmill operations.
• Arborists: Tree services sometimes mill logs or know who does.

Expect to drive 30-90 minutes to reach quality mills in most areas. Budget travel time into your material cost calculation.

What Mills Offer (and Don’t Offer)

What You Get

• Green (wet) or air-dried lumber
• Rough sawn surfaces
• Random widths and lengths
• Local species at excellent prices
• Opportunity to hand-select boards
• Potential for custom thicknesses

What You Won’t Get

• Kiln-dried material (usually)
• Surfaced/planed lumber
• Consistent grading
• Delivery (typically)
• Returns or exchanges
• Credit terms

Kiln Drying: The Critical Step

Fresh-sawn lumber has 50-80% moisture content. Usable furniture lumber needs 6-8% MC. You can’t skip this step.

Options for drying:

Air drying: Stack lumber with stickers (spacers) in a covered, ventilated area. Rule of thumb: one year per inch of thickness. Free but slow and gets you only to about 12-15% MC (still too wet for indoor furniture).

Solar kiln: Build or buy a solar-heated drying chamber. Gets lumber to 8% MC in 2-4 months. Initial cost: $500-$3,000 for DIY builds. Many woodworkers swear by this method.

Custom kiln drying service: Some mills offer kiln drying for $0.20-$0.50/board foot. Factor this into your cost comparison.

Your own kiln: Small dehumidification kilns run $3,000-$8,000 and handle 300-800 board feet per load. Makes sense if you’re processing 3,000+ board feet annually.

Species Available Direct

Local mills offer whatever trees grow in your region. Common species by area:

Eastern U.S.: Red and white oak, hard maple, cherry, walnut, ash, poplar, hickory

Pacific Northwest: Douglas fir, western red cedar, big leaf maple, alder

Southeast: Southern yellow pine, pecan, sweetgum, cypress

Midwest: Black walnut, red oak, white oak, hard maple, ash

Regional species priced well below retail are your biggest opportunity. That local white oak at $2.50/bf versus $9/bf at the lumber yard is where the savings accumulate.

Calculating True Cost Savings

Be honest about all costs:

Net savings: 40% ($5.30 per board foot)

On 2,000 board feet annually: $10,600 savings.

Building Mill Relationships

Start small: Buy a few hundred board feet before committing to large orders. Evaluate quality consistency.

Be reliable: Pay on time (usually cash or check at pickup). Show up when you say you will.

Communicate clearly: Specify thickness, length requirements, and any grading preferences. Don’t assume.

Buy in reasonable quantities: Mills prefer selling 200+ board feet at a time. Individual board purchases aren’t worth their time.

Be patient: Mills cut what comes to them. If they don’t have walnut today, it might be available next month.

Ask about their schedule: Many mills are busiest in winter when logging is easiest. Spring/summer may have better selection.

Quality Considerations

Mill lumber requires more evaluation than retail stock:

• Check moisture content: Bring a moisture meter. Don’t buy green wood without a drying plan.
• Inspect for defects: Checking, splits, rot, insect damage. Some is acceptable; too much isn’t.
• Evaluate grain: Without surfacing, you’re reading rough surfaces. Takes practice.
• Measure actual dimensions: “4/4″ might be anywhere from 7/8″ to 1-1/8”. Plan accordingly.

Storage Requirements

Buying direct typically means buying more at once. Plan for storage:

• Covered, ventilated space: Lumber needs protection from rain but also air circulation.
• Flat, level surface: Prevents warping during storage.
• Stickers between layers: Maintains air flow even for kiln-dried stock.
• Weight on top: Helps keep boards flat.
• Rotation system: Use oldest stock first.

Hybrid Approach

Most successful woodworkers use a combination:

• Mill direct: Common species used in volume (oak, maple, walnut, cherry)
• Retail: Exotic species, specialty cuts, small quantities, urgent needs
• Online suppliers: Specialty items, hard-to-find species, veneer

Don’t go exclusively mill-direct if it means turning down projects because you can’t source unusual materials quickly.

Portable Sawmill Operators

An alternative to permanent mills: portable sawmill services. These operators bring equipment to fallen trees and cut on-site. Benefits:

• Access to urban trees that would otherwise become firewood or mulch
• Opportunity to buy extremely local (sometimes from your own neighborhood)
• Custom cutting to your specifications
• Often lower prices than commercial mills

Connect with local arborists. When they remove a valuable tree, you could offer to buy the logs.

The 40% Savings Reality

The “40% savings” headline is achievable but requires:

• Volume purchasing (500+ board feet per order)
• Ability to dry your own lumber or access affordable kiln drying
• Equipment for surfacing rough lumber (jointer, planer)
• Storage space for inventory
• Patience for seasonal availability
• Skills to evaluate rough lumber quality

If you’re buying 200 board feet per year and don’t have drying capability, stick with retail. The hassle isn’t worth the savings.

If you’re processing 2,000+ board feet annually, mill-direct sourcing can fund equipment upgrades, shop expansion, or significant profit improvement.

Getting Started

1. Find three mills within 90 minutes of your shop
2. Visit each one. Evaluate inventory, quality, pricing, and the operator’s professionalism
3. Start with one 200-300 board foot order of a species you use regularly
4. Process the lumber through your shop. Note actual yield and working characteristics
5. Calculate true cost including all factors
6. If savings are significant, establish an ongoing purchasing relationship

The first order takes the most effort. After that, you’re simply maintaining a supplier relationship like any other—just one that puts more money in your pocket.