How is Firewood Sold in Australia: Pros & Cons

And the reason why 95% of businesses are missing out on premium prices for their firewood…

When you think about how is firewood sold, it’s important that you understand how buyers expect to buy so you can market your wood in the most desirable way, avoiding confusion and getting the best price.

Firewood is sold by weight (tonnes or kilograms), volume (cubic metres) or lot (a crate, bin, trailer load, or ute load). There are specific requirements sellers need to follow by law when selling firewood. 

Every method has advantages and disadvantages, so let’s cover each to help you decide how to sell firewood.

Different Methods of Selling Firewood

In Australia wood is sold in three main ways, by weight (tonnes or kilograms), by volume (cubic metres), or by lot. 

Technically, you can also sell it in bundles, but it will be labeled in weight.

But how is firewood measured to ensure the advertised accuracy?

When wood is sold in weight, a certified scale or weighbridge must be used. If the customer is not present to see the wood being weighed, you must provide a written statement of weight, such as a weighbridge ticket.

When wood is sold by volume, it has to be neatly stacked with as few gaps as possible and measured by multiplying the length by the width by the height of the stack.

Here’s what you can expect from each method.

By Weight

When you sell firewood by weight, you must measure it in tonnes (t) or kilograms (kg).

Advertised weight must consist only of the net weight of the wood, excluding the weight of the trailer, containers, or ropes.

Each load must be measured on a certified scale or a weighbridge and if the customer is not present, you must provide proof of accurate weight.

Common question customers have is what does 1 tonne of firewood look like and how much space does it take? Will they have enough space to store it?

The space that 1 tonne of firewood takes up will depend on the firewood species. The higher the density of firewood the less space it takes. For example, a tonne of Pine will take approximately twice as much as the same weight of Ironbark.

Selling by weight requires access to heavy equipment and a certified scale or a weighbridge

Because people who want to buy by weight are usually looking to buy larger quantities you could sell off your stock with just a few transactions. So you spend less time trying to sell it.

In comparison to other methods, it’s the most straightforward way to sell wood. Customer orders one tonne, you load it up and deliver it. We’ll see how it gets complicated with other methods below.

Pros

• Customers can’t complain about being ripped off
• Large order values, spend less time selling

Cons

• Capital intensive
• Lowest price per kg

By Volume

You can sell firewood by cubic metre (m3). When measuring the volume of the firewood, you are required by law to ensure it is neatly stacked with as few gaps as possible. 

If you’re advertising it as a cubic meter, an actual unit of measurement, then it needs to be correct.

It takes much longer to neatly stack a ute or trailer rather than drop it in with a bucket, yet people expect to get this.

Even when you do neatly stack it, a customer can spend an exuberant amount of time restacking it to take up less space and get frustrated over a 0.1 m3 discrepancy. 

It’s a good way to sell low-density firewood like pine because you can advertise a cubic metre for a far lower price which makes it seem cheaper in comparison.

What does 1 cubic metre of firewood look like?

The space that 1 cubic metre of firewood takes up will depend on the size of the container.

A 2.4m x 1.5m trailer of neatly stacked split firewood to a height of 0.3m contains approximately 1m3. While the same 1 cubic metre will have to be stacked 0.5m high in a 1.8m x 1.2m trailer. 

Pros

• Seems cheaper for low-density firewood

Cons

• You have to neatly stack the splits
• Customers complain because of stacking discrepancies
• Seems more expensive for high-density firewood

By lot

Firewood is occasionally sold “by the lot,” when a predetermined price is given for a crate, bin, trailer load, boot load, or ute load.

When selling wood in this fashion, merchants are not allowed to specify the sale lot’s weight or volume. If they do, they must adhere to the rules for measuring weight or volume.

So rather than stacking it neatly, you can just drop it in with a bucket.

Some merchants prefer this because the customer cannot compare the quantity and price with other dealers and has to make a decision on the spot. 

On the other hand, a competitor who sells the same unit of measurement as you might offer less firewood for a slightly lower price. So their offer seems better on paper but in reality, the customer gets less for more.

While this tactic pays off in the short term we wouldn’t recommend it. The lifetime value of a customer who keeps coming back every year to buy firewood from you is far greater than compromising trust over a single sale.

It’s also hard to standardize every load so if you say in the best intention that a load is approximately a cube the customer might feel ripped off once they unload it and it turns out less. While others can get more…

Pros

• Doesn’t require access to a certified scale or weighbridge
• Customers can’t price compare
• Most practical

Cons

• Competitors can devalue your offer
• Customers can feel ripped off once they unload it

Pre-packaged

Firewood that is bagged or packaged must be sold per weight.

Each bag or pack must have its weight and the name and location of the packaging company prominently posted. 

Because pre-packaged firewood must not contain less than the stated amount prior to the sale it needs to be properly seasoned. In the event that it isn’t, the moisture that evaporates from the wood could result in the package being underweight.

In general, the smaller the package the better the price. This method gets you the best price per kg of firewood. Many people noticed how grocery stores are overcharging for bundled firewood. And that there’s a lot of demand to be filled in for cheaper bundles, on which you can still make money on.

Pros

• Premium price
• Easy to measure

Cons

• Packaging
• Most sales intensive method

Before choosing a method – Where do you source your firewood?

The big question you need to ask before starting a firewood business is where are you going to get firewood? Why is it important? If you get green wood which is not properly seasoned your sales are going to suffer and even if you manage to sell it the customers won’t be coming back.

You might buy land with woodland to get access to firewood only to realize it’s very time-consuming to procure your own firewood. 

To go to the woods, cut a tree down, limb it, block it off, bring it out of the woods and then start processing takes so much time. 

There are many ways to get wood, but to get the most out of your firewood business you want to sell it for the highest price right? The smart way to do it is to get properly seasoned wood, process it, and spend the bulk of your time marketing it instead of preparing it.

So you can buy land, cut the trees, leave them for years to season properly… or just give us a call and get the driest, high-density Ironbark that your customers will enjoy burning. That’s entirely up to you!

FAQ

Dry firewood is sold easily no matter the method

You can sell firewood in many ways. Each method has its pros and cons. Whichever method you choose the most important thing is product quality. Premium firewood will burn off from your stock faster than a falling tree!