Do I need a yard or warehouse to deal timber?

Not necessarily at the start. Business models without premises: (1) Brokerage — connect buyers with suppliers, never handle product (lowest capital, lowest margin); (2) Drop-shipping — take orders, arrange delivery direct from mill/wholesaler to customer (moderate margin, no handling); (3) Virtual stockholding — reserve stock at a third-party warehouse, sell and arrange delivery (moderate capital, good margin).

Not necessarily at the start. Business models without premises: (1) Brokerage — connect buyers with suppliers, never handle product (lowest capital, lowest margin); (2) Drop-shipping — take orders, arrange delivery direct from mill/wholesaler to customer (moderate margin, no handling); (3) Virtual stockholding — reserve stock at a third-party warehouse, sell and arrange delivery (moderate capital, good margin). As the business grows, a physical yard provides: ability to break bulk (sell smaller quantities), offer cut-to-size services, maintain visible stock for walk-in customers, and provide faster delivery from local stock. Typical yard size for a small merchant: 500–2,000 m² covered/open storage.

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

Related questions

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• What certifications do I need to become a timber dealer?
• What margins can I expect in timber distribution?

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.