Starting a log cabin business? Go B2B!

Posted Oct 28, 2020, Category: Advice

As a log cabin manufacturer, in business for 26 years, we at Eurodita have a lot of insight to share when it comes to building a log cabin business. We have significant experience working with other companies, who become our partners all over the world. Our business model makes us their production facility, where they can place orders for bespoke log homes or standard log cabins and we do everything in our power to deliver it. On the other hand, we also partner up with companies that we trust to deliver us on the highest quality timber, and others to transport our log homes when our own fleet is too overloaded with other orders. So, in this post, we have decided to share what we have learned from our experience working business to business and how your own log home supplier startup can grow exponentially with right partners.

Why start with log cabins in the first place?

This is probably the fundamental question that we need to cover before delving into details of how. First the why. Simply put, global log cabin production is a growing business. New markets in China and surrounding regions are opening up and demand for log cabins is growing. As indicated by Marketwatch.com in 2019, the glulam timber market is projected to grow at almost 5.5% between 2018 and 2023. This indicates that the demand for glue laminated timber – which we use in all our productions – is growing and in turn, all products made of it as well.

There’s opportunity to build a successful business, especially when new markets are opening up. Beyond Europe – an already matured market for glulam log homes – there’s China, Australia, Canada and such, where demand for glulam timber houses in particular is growing. Not to mention the flexibility that this type of material gives in construction, compared to classic wooden planks or full logs.

If you produce – be sure of your material

If you’re planning to start with your own production line, first and foremost make sure that your production material is solid. Depending on the segment you’re producing for – low, medium or premium, or all of them – your timber can be of adequate pricing, but it still has to be good quality. Choosing the right timber will help you follow the other basic rule of production: manufacture at the best possible quality. Better yet, manufacture better than your direct competition. This can obviously be achieved with good production infrastructure, but the importance of raw timber cannot be overstated.

Find partners that source good timber, made for the purpose you’re looking to achieve. Take time and go through the selection process. In our case, we were able to find Scandinavian partners that supply us with the highest quality pine available. The Northern pine is a sturdy, slow-growing evergreen that grows into wonderful, light timber, which elevates our contemporary log home designs into new heights. Quality is the first ingredient for the recipe of success.

Focus on your strengths

Like in any business, glulam houses production has its challenges. To navigate them, it’s best to focus on your strengths. For Eurodita, that’s the production and customer service. We adopted a customer-first mindset that took us really far. We also invested a lot into our production process in order to create the best possible log homes on the market.

If production is not your strongest side, there are always options to focus on what you’re good at. Sales, marketing, customer service, construction – all these services are important parts of global log cabin business and are necessary to keep it going. If you have the necessary skills or people to work in glulam house construction, pick a good producer, whose log cabins you can assemble on your customer’s location. If, however, you’re gifted in sales and marketing, focus on that: pick a producer who could form a great portfolio for you and develop your own log cabin brand.

It’s important to not waste your efforts on something that can be solved much easier. Take your time evaluating what you’re good at and see how you can apply those strengths to the log cabin market. It also helps to have a vision of what your company is going to be. Lastly, find good, trustworthy partners that can help you in your endeavours. Our own partners report 100% satisfaction with our services and this we achieved by investing into our strengths: quality of production and customer service. Reach out to us and we can talk more if this is the route you want to take.