How to Split Fire Wood for a Profit

Know the costs of starting up the business. At minimum you need a chain saw, a splitter and a delivery truck, a storage and selling space for the wood and a source of wood. A two-person operation can cut, split and deliver wood much more efficiently, so also consider the labor costs for your employee. A business license, insurance, bonding and incorporation fees add to the startup costs.

Find a source of wood that is either very inexpensive or even free. Some property owners will let you manage their wood lots on rural property and allow you to keep the trees that you remove in exchange for some free firewood. Developers may pay you to cut the trees and haul them away. If there is an abundance of trees, though, this may require a bigger investment in equipment such as larger trucks or trailers.

Learn as much as you can about which woods are best and how each preforms as firewood. Speaking authoritatively about your product gives potential buyers a reason to trust you.

Pre-sell as much wood as possible before you begin to cut. At a minimum, unless you have a wood dryer, it takes a year between the time the wood is cut and when it is acceptable for use. If you cut the wood without it being pre-sold, you are working on speculation, which is always risky.

Price the firewood according to how much money you need to make a profit and in consideration of what your competitors are charging. If you can undercut competitors slightly while maintaining a high quality of wood and customer service, and still make a profit, you might encourage customers to switch to your service.

Provide extra services for more money. For example, offer to stack the firewood at customers' homes for a fixed fee per cord.

Ask for the next order when delivering a load of firewood. Do not depend upon the customer returning to you for more wood.

Take advantage of cold, slow days by setting up a truckload of firewood near a busy intersection. There will always be buyers who will stop and buy several pieces at a premium price. A cord sold this way brings in more money than one sold in bulk.