"Lew Hodgett" wrote in message
...



SFWIW, years ago had a tennant who was in the hardwood lumber
business.

He told me his cost/board ft was the same for either 4/4 or 8/4
lumber; however, the 8/4 retail price/bdft was more than the 4/4
price/bdft.


That would sound right. Call it a "benefit of variety" mark up if you will.
If the larger slower moving board has a turn over rate of 2 per year and the
turn over rate on the smaller board is 6 times a year it would make more
sense to not stock the slower moving larger board and stock more of the
faster turning boards or mark the larger boards up so that the total sales
profit is the same for either board in any given year. Every square foot in
a warehouse and or retail floor space is an expense that has to be
considered when deciding on how much of what to stock so that the net profit
remains in the black.