What margins can I expect in timber distribution?

Timber distribution margins vary by product type and service level: Commodity structural timber (C24 framing): 15–25% gross margin; Specialist/engineered products (glulam, CLT): 20–35% gross margin; Treated timber products: 25–40% gross margin (treatment adds value); Cladding and decking: 25–40% gross margin; Bespoke/cut-to-size services: 30–50% gross margin; Import/wholesale (container loads): 8–15% gross margin. Net profit margins (after all overheads) typically range from 3–8% for volume dealers to 10–15% for specialist/value-added dealers.

Timber distribution margins vary by product type and service level: Commodity structural timber (C24 framing): 15–25% gross margin; Specialist/engineered products (glulam, CLT): 20–35% gross margin; Treated timber products: 25–40% gross margin (treatment adds value); Cladding and decking: 25–40% gross margin; Bespoke/cut-to-size services: 30–50% gross margin; Import/wholesale (container loads): 8–15% gross margin. Net profit margins (after all overheads) typically range from 3–8% for volume dealers to 10–15% for specialist/value-added dealers. Higher margins come from: adding services (treatment, machining, delivery), specialisation, and strong customer relationships.

Why this matters

This question relates to How to Become a Timber Dealer: Starting a Distribution Business, which covers the broader topic in detail. Understanding this specific aspect helps architects, builders, and timber dealers make informed specification decisions.

For full context and additional technical detail, see our comprehensive guide:

→ How to Become a Timber Dealer: Starting a Distribution Business

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About this answer

This answer is part of the PuurModulair Knowledge Base — comprehensive timber specification guidance for architects, builders, and dealers across the UK, EU, and Scandinavia.