Also, please explain how that when a store pays 25% more for wood, and then sells it for 25% higher that they're making money?
Simple. Their profit margin hasn't changed one bit. If they were making $ before the wholesale price increase, and increased their resale price accordingly, they're making exactly the same profit as before.
If you were buying apples for 3 cents each, then selling apples for a nickle each, you were making 2 cents per apple profit. If your supplier raised the price you pay for apples to 8 cents each, and you raise your price to customers a dime per apple, you are still making 2 cents profit per apple.
People that need lumber are like people that need food (or anything else) . They are going to pay the price for it, regardless of whether it rises or drops..or remains the same.