What Are the Monthly Running Costs of a Timber and Lumber Yard?
In the timber trade stock can lose a little more value every month it waits. Warped and mouldy material is a cost larger than the rent bill and one that is never written down. 🪵
Short answer: a mid-sized yard runs at ₺60K to ₺170K a month.
How the money splits, fixed-versus-variable, three inflating lines, break-even and a fit check follow below.
Monthly cost breakdown
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- Fixed costs
- Variable costs
- The invisible cost: deformation
Line by line.
Fixed costs
Wide yard rent ₺18-50K, staff (2-3 people) ₺30-85K, forklift and vehicle fixed costs ₺6-16K, accounting and insurance ₺3-8K. 📊
Variable costs
Electricity for cutting and planing ₺4-12K, fuel and delivery ₺5-15K, blade sharpening and consumables ₺2-5K. As cutting volume rises, electricity and sharpening grow together.
The invisible cost: deformation
Part of badly stacked stock becomes unsellable. This loss is usually noticed once a year but should be spread across the monthly cost.
Fixed side or variable side?
A space-weighted structure.
The weight of space
Timber takes room; rent here relates directly to square metres and runs whether or not you sell. Using the space efficiently is therefore a profit line in itself.
Three lines that inflate the cost
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- 1. Stacking in the open
- 2. Cutting wastage
- 3. Unplanned layout
All three show up in the yard.
1. Stacking in the open
Rain and damp turn part of the goods into direct loss; this line can exceed the rent, and because the damage builds slowly there is no undoing it once noticed.
2. Cutting wastage
If the share lost in cutting, planing and straightening isn’t priced in, every cubic metre loses money. Writing the allowance into the price upfront is easier than covering the gap later.
3. Unplanned layout
If the best-selling sizes sit at the back, every delivery writes extra labour and forklift hours. Arranging by turnover speed costs nothing.
When do you break even?
Processing depth lowers the threshold.
The logic of the calculation
With ₺110K in monthly fixed costs and a 22% gross margin, break-even revenue is ₺500K. Moving into cutting and finished products at a 32% margin brings it to ₺344K. Margin mechanics in the timber margin article. 🧭
Who does this cost structure suit?
Those with yard discipline.
How were these numbers built?
We calculate every band from anonymised records, published price lists and independent research. Nothing here is guessed. The full method is on our methodology page. 📐
📝 Notes from the Shop Floor
In one yard the three best-selling sizes sat in the furthest corner. Every delivery meant clearing the stacks in front first. We measured a week of extra forklift and labour hours; the monthly total came to a small wage. They rearranged the layout by selling speed; no cost line was deleted but the same crew handled more deliveries. In this branch order is cheaper than extra staff. 🪵
📖 Quick Glossary
Deformation: warping, cracking and mould caused by moisture. Cutting wastage: the share of material lost in processing. Stacking layout: arranging material by how fast it sells. Break-even revenue: the minimum monthly sales covering costs.
⚡ Quick Summary
Monthly running cost ₺60-170K. 📊 Space-weighted; the invisible line is deformation. Three inflating lines: open stacking, cutting wastage, unplanned layout. Break-even: fixed cost ÷ gross margin.
🎯 What to Do Next
Let’s review your yard layout and break-even table: quote form · free digital audit. 🤝
Frequently Asked Questions
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Buying rhythm and delivery planning can be flexed; covered stacking space cannot — cutting there is direct stock loss.
Wide space is both expensive and demands management; a disorganised yard produces cost directly. For working in a small space, ironmongery; for earning from labour, welding and metalwork. Compare branches on our sector page.
A simple canopy and batten system amortises within one winter in most yards. Protected stock is always worth more than the roof you didn’t build.
It adds electricity and sharpening but lifts the margin markedly, so the net effect is positive. In businesses with steady cutting demand it pays for itself quickly.
With long, heavy material a forklift is both faster and safer; at small scale a pallet truck and a two-person crew may be enough. Decide by daily delivery counts.
Source: Timber Trades Journal