Originally Posted By: BSK
timberjack86,

Thanks for an excellent description of the process.

Each of the options have their upsides and downsides. An upfront bid payment has the upside of the landowner getting paid in full up front. However, as you mention, the logger must bid low to ensure they make a profit. The percentage of logs sold process has the best chance of maximizing income for the landowner. Yet this also opens the door for a logger high-grading out the most profitable trees and leaving the job unfinished.

As a landowner, you take your chances either way. Either get your money up front, but realizing you aren't getting anywhere near the real value of the timber, versus getting the real value but potentially not getting the job done and potentially having the best timber removed, hence much lower chances of interesting another logger in the future. I've been both burned and pleased with both types of contracts.
I agree 100%! We have done both types and still do, but have found useally for both parties involved our way ensures everyone gets a fair deal IMO. Yes alot of loggers will get the best and get out but thats why I always recommend checking refrences before a landowner hires a logger. His former clients will tell the whole story!


Edited by timberjack86 (09/13/12 08:55 PM)
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