Forward Pricing & Risk Management
Risk Management is the formulation and execution of a pricing strategy relative to future business.
At Sherwood Lumber, our Risk Management Team assesses our inventory risk along with forward risk. After looking at our proprietary data, market conditions, and fundamental ideas of the team, we come up with a strategy and execution plan. These ideas can also be used by our customers to increase their bottom line and add sales.
Checklist of Risk Exposure:
- How far out are you being asked to commit?
- What is the current market of said item?
- What is the fundamental supply/demand ratio of the species involved?
- Can I buy and hold, take it short, or lock in the price with Guaranteed Forward Pricing?
- What solution can Sherwood Lumber provide?
Guaranteed Forward Pricing Offers:
- Quote with confidence. Our program enables customers to confidently quote and sell lumber products with guaranteed fixed prices for out to 1-year in the future.
- Manage your market risk. Your price is guaranteed, and our program allows you to lock-in your profit. The price will be fixed and won’t change with market conditions.
- Customized job quotes. Each quote is custom tailored to your requirements. We will carefully review items, species, grades, volumes and delivery times for each transaction.
- Improve your cash flow. Shipments are scheduled for future delivery. You don’t pay for anything until your wood ships.
- Fresh mill stock. We source your wood immediately prior to shipment. Stock is always fresh, bright and clean.
- Normal transaction terms. All paperwork and billing procedures are exactly the same as normal daily transactions. Shipments are scheduled for predetermined future delivery, and payment is made when product ships.
- We sweat the details! Once your order is locked in, Sherwood will handle all the logistics and make sure the deliveries run smoothly.