Reply by Sawdust2012

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Posted on Question on lumber pricing

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220 posts in 2489 days

#1 posted 01-28-2019 03:54 PM

I’d be willing to bet there is an “economies of scale” issue also. Diesel fuel costs less to refine than gasoline, but is often sold at a higher price than gasoline. I have always heard that the reason is tha the sheer volume of gasoline allows for fixed costs to be distributed over a far larger base lowering the unit cost. I would uses that 4/4 is a much higher volume product.

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