What Causes Price Changes in Hardwood Flooring?

I write a lot of blogs about flooring, supposedly because our marketing department says it will help customers learn more about the flooring business. So let’s talk a bit about what hardwood flooring prices are based on. They seem to change quite a bit!

You Can’t Predict Flooring Pricing. 2 Manufacturers Tried.

If there is one thing no one is a master at and that is predicting hardwood flooring prices. There are so many components to the flooring market that it is difficult to predict. Some companies have even tried to control the market to better position themselves in the market. Guess how that worked out?! The two largest flooring manufacturers in the world are both in the process of exiting the solid wood manufacturing business. What does that tell you?

Commodity Products Live by Supply/Demand

Essentially, the raw material used to make flooring is a commodity. Like all other commodities, the law of supply and demand is highly applicable. Without getting too technical, I will try to explain a few situations that cause flooring costs to move.

The Weather Effects On Hardwood Flooring

On the supply side, the weather is probably factor #1. If you have any loggers in your family, or circle of friends, you will probably notice that they get a lot of days off when it rains. That’s because it is terribly difficult to harvest trees in the mud. People get hurt, equipment breaks, and it plain makes a mess. When it rains more than usual, as it has in Appalachia for the last 2 years, lumber yields go down. So much for the supply side.

The Demanding Market Of Hardwood

Then we have the demand side. When the economy is running well, and homes are being built, the demand for wood increases. Cabinets, trim, and flooring are three examples of uses for hardwoods, but there are others, and they all affect the lumber market. Framing, decking, even furniture will use up lumber resources and may affect pricing. Flooring manufacturers like Shaw like it when the demand is high.

Hardwood Flooring Grades

Another critical facet of the demand side is the optimal use of different grades, we are known to carry some of the best cabin grade flooring in the market. In days gone by, when we had a strong furniture-producing market in the US, the highest grades of hardwood lumber were used to make furniture. Select and Clear grades had elevated prices due to this demand, leaving Common lumber to the flooring business. Today, we sometimes see the whole log going into hardwood flooring to make a change in hardwood. To give you another view, what if butchers had to use prime rib in their ground beef due to there being no market for steaks? That would be bad for the butcher, and the farmer that raised the cows!

Here’s a video where I try to break down what are hardwood lumber grades with 4 different grades of oak natural solid hardwood. Each grade is different, but they share the same wood species and overall color. This video helps explain why our customers love our cabin grade and other lower grade flooring. If you like more color, go lower on your grade! Of course, if you have any questions about any specific grade we are happy to help over the phone. Or you can read more about hardwood grads in our Hardwood Grades 101 blog.

These are just a few of the factors that affect the hardwood flooring business. Other aspects, such as employee costs and transportation expenses, are continually climbing and will continue to do so.

Traditional Wood Flooring Pricing Don’t Apply to ReallyCheapFloors.com

An understanding of the lumber market makes what we do here at ReallyCheapFloors much more interesting. Because our specialty is overstocks, seconds, and discontinued goods, the cost to produce are not that big of an issue. Every manufacturer has a good idea of what percentage of their products will be sold as promotional products, or off-goods. Like the power bill and employee costs, the majority of those costs are built into the much larger percentage of normal flooring as overhead. The first quality flooring is then sold through retailers and box stores, while we focus on liquidating hardwood flooring that needs to be moved quickly.

How Can We Offer Hardwood Flooring At A Lower Cost Than Our Competitors?

At ReallyCheapFloors, our job is to take those discounted products from the manufacturer and quickly move them through the market. What the manufacturer has in the cost of the product has little bearing on the value of the product. It is the value of that product to the market that determines its price. Look again at the beef analogy (since I love to eat). Why does the butcher pay the same price for prime rib and ground beef, yet he sells the prime rib for 8-10 times more than the ground beef? Because of the difference in demand.

What Hardwood Floor Type Offers The Best Value in 2024?

Over the last few year home prices have been rising rapidly. Material and labor costs are certainly up. One reason for this is that builders are under no pressure to save money. Rather, the pressure on building contractors and developers is to speed things up. This has created inflationary times for many building products, including hardwood flooring. As the prices for the first quality, running line floors rises, the by-products such as Cabin grade and seconds become better buys for 2 reasons: more of them are being produced, and fewer people want them. This creates some fabulous deals on lower graded hardwood floors for the economy-minded shopper. 

For instance, we buy all of the returns that Somerset Hardwood Flooring gets. Almost all of these are returned because someone didn't like a color after they bought it. We almost never see a defect in these floors, yet we are able to sell them for 20-30 cents on the dollar. Talk about a great deal! These are first quality floors that typically sell for $6-8 a square foot, and we are selling them for $2-3 a square foot. 

What Are The Prices Of Maple Flooring Doing Right Now?

If I am being honest....not sure why I say that.Of course I am being honest....most of the time. Anyway, Maple is high right now, with very few exceptions. Maple hardwood flooring is unusual in that it grades out very well, with much less #2 Common in a log than say a Red Oak or even a Hickory floor. That means that very little Cabin grade ever hits the market. Because it seldom has knots, discoloration from mineral is the most likely reason that a piece of lumber would get downgraded but because a manufacturer can take that board and run it in a stain color it will still go to market as a standard graded floor. Good for the manufacturer, bad for ReallyCheapFloors.com and our customers. 

If you need a Maple hardwood floor, and the clean, clear look that it offers, look at our Kennedale  from Bruce. As you can see in the room scene  pic below, Kennedale  in the Natural finish makes a visual that we simply cannot get from any other wood type.

Are There Any Great Deals Available On Solid Hickory Flooring?

Solid prefinished Hickory is one of the bright spots right now. In fact, for us at ReallyCheapFloors.com

That is how we can maintain the low prices that we offer. For a manufacturer that needs inventory gone quickly, we are a great avenue. And for a builder, flipper, or consumer that needs to save money, we are a great option! Did I cover everything you needed to know about hardwood flooring prices? Did I miss something? Send us a message on our Facebook page or email us with our contact form above.