And then how do the sellers make their money?
The answer is fairly straight forward. Woodworkers sell for different prices to buyers and their market is quite predictable. This is because there are very few factors that make wood cheaper than other materials.
If we add up the price of each commodity, we’ll get a rough idea of the market price. Here are some useful tips:
I think it is interesting that most people know a lot about plastic. It comes with such a long list of benefits:
Cost. Cheap. Plastics are usually a good choice for woodworking projects. I’ll show you some of the costs of buying plastic right now.
Low volume of consumption. We are all aware that the more plastic we consume the more we use. In general, people who tend to be wasteful can consume more plastic than someone who doesn’t.
Low prices. Plastic prices generally range from $.13/lb to $.25/lb. This price corresponds pretty well to the price of a 100 lb sack of wood when buying in bulk (a bag of 8 or 12 different sizes gets to $0.13 per lb). However, if you purchase 100 lb bags of wood at the retail price, they cost about $3 per lb. If you sell them online at wholesale levels, they might be closer to $0.10 and therefore cost almost the same to produce.
Low density and good heat transfer. This can sometimes translate into a lower price. A single 5 lb bag of wood produces the equivalent volume of a 5 lb bag of plastic (assuming that one wood is equal to 5 plastic pieces). If you buy 1000 bags of wood, you could buy 600 plastic bags of equal weight.
Cost of transport, handling, and storage. The weight of a single piece of plastic is roughly 12 pounds. The volume of the wood, and whether it is square or round, has an impact on their cost as well.
But do they cost the same? Here’s the thing. There are thousands of different types of plastic, and prices fluctuate quite wildly. It can vary depending upon the type, the brand, the manufacturer, what the color of plastic is, and much more. If a single plastic bag costs $19 on Amazon, that price assumes that the plastic itself is the same material as that in wood. That makes it a very expensive material. So how does the wood industry get around these types of prices and be competitive with the other
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