What Does Woodmetrics Charge?

 Our fees are charged in three parts for complete transparency:

• A percentage commission of the net (not gross) stumpage* revenue you receive - typically 2.0% to 4.5% depending on forest or woodlot size;

• A per tonne fee which reflects the Woodmetrics overhead - typically $0.75/tonne to $1.25/tonne depending on forest or woodlot size;

• Any direct costs, as quoted in your Woodsale Management Agreement.  These include costs associated with mapping, inventory, resource consent application and our harvest monitoring service.  Woodmetrics adds no margin onto direct costs.

The following is a real life example.  It deliberately represents a typical Woodmetrics result and meant that this customer was around $40,000 better off.

Bill & Jenny Crum and local Woodmetrics account manager, Brendan Muller. Bill and Jenny are off on holiday while Woodmetrics takes care of their sale.		In Feb 2002, Woodmetrics achieved four qualifying bids for forest owner Bill Crum of Northland. Bill’s 40 hectare block contained around 20,000 tonnes of wood. The stand was pruned and of fair quality. Bill was initially offered in the low $30/tonne range for the block before Woodmetrics came along. Not knowing if $30/t was a good price Bill decided to use the Woodmetrics service to find the best that the market had to offer.
Competitive Tender Results:		Total Volume 20,524 tonnes (40 hectares) Tender prices are net composite price over all log grades Tender price range was 20%. This is very normal
Company A	$45.00 per tonne
Company B	$40.05 per tonne
Company C	$37.70 per tonne
Company D	$37.11 per tonne
Bid Range Resulting From Competitive Tender:
Highest Bid (Feb 2002)	$856,877 net stumpage
Lowest Bid (Feb 2002)	$694,943 net stumpage
Initial Offer (mid 2001)	$615,720 net stumpage
Difference:	$241,157
'Net Stumpage’ is the net return to the grower after costs
Woodmetrics Cost	$2.60/t
Direct Costs	$0.65/t
Note: This is a conservative and typical example. Even after deducting Woodmetrics fees plus taking into account changes in market prices between the time of the initial offer and the competitive tender, Bill is still around $40,000 better off. That’s the price of a new ute ! Is Woodmetrics worth it ? Do we earn you more than we cost ? You decide !