The way your explaining the lumber it's sounding like the logs should have went to the veneer mill, but I've done the same thing. Problem is very few people are interested in paying the price for primo lumber, so it goes to someone who will buy it. I had two grade 1 black walnut logs, I paid a pretty penny for both of them. Cut them into 8/4 and no one was interested in the lumber. I sat on the lumber for almost 6 month before I had to let it go for just a little more than I paid for the logs. I lost my shirt on that one and won't do that again.
Quite a few other times on the sawing side of the house, I've also had to bite my lip. I've whipping out clear barn wood, yep barn wood. Top grade logs cost more than lower grade logs. Trailer decking can come out of lower grade logs and furniture grade out of the higher grade logs. Higher grade logs demand higher lumber prices and if someone wants to pay me the same per board foot for high grade lumber, to build a fence, a horse stall or a piece of furniture, it really doesn't matter much to me. I have to recover my investment irregardless, that is if I want to keep sawing... Bottom line it seems like just about everyone one wants high grade lumber for next to nothing. Problem with that is it costs real dollars to make lumber. If a saw mill operator can't recover his costs and make a profit to keep things running, he won't be making lumber very long.
I'm confused, why you wouldn't just offer him what it's worth? Surely you have that fair priced figure in your head, you know the value of the lumber, don't you? By making an honest offer, your wood guy will make more money and you'll have primo lumber. Even if he can't sell it to you because it's already committed to someone else, just honestly offering that fair amount price is a great relationship builder. Next time he comes across those high grade logs, he'll give you first dibs, it's Win / Win for both of you...
Thanks