Create demand for western red cedar

By Doug Jansen Western Red Cedar Lumber Association

55fOO MANY companies at all

I levels in the distribution chain are short-changing themselves by failing to actively promote their products, especially western red cedar," said Brent Stuart, v.p. of purchasing with wholesaler Russin Lumber Corp.

"Manufacturers, distributors and retailers should cultivate strong relationships with each other and work towards increasing their market share by merchandising cedar and creating a demand for it," he said. "They should continually send out a consistent message to help consumers recognize and appreciate the intrinsic value of cedar instead of treating it as just another commodity."

Based in Montgomery, N.Y., Russin sells from Maine to the northern tip of North Carolina and West Virginia. With many customers in the trading area being in the high-income bracket and favoring higher-quality products, price is not a major consideration. It isn't surprising, therefore, that the company devotes about onethird of its business to western red cedar and carries an extensive inventory of top-quality cedar products.

How does Russin Lumber continue to prosper even during a downturn in the economy? "Our philosophy is to develop a strong relationship with key manufacturers able to provide us with a good product mix, so that both parties will be comfortable knowing we will be working in harmony on a regular basis," said Stuart. "For example, it's not our policy to take advantage of an over-supply situation, and corresponding price change, to move from one manufacturer to another. This means that manufacturers will make certain we always have a good supply of what we need. Some producers even offer us a market exclusive with certain products."

Russin Lumber tries to create a brand awareness with the items it sells, and always ties the producer's name and the WRCLA category to everything it does so that customers begin to associate certain manufacturers' and WRCLA names with value. "We have had great success with that approach," Stuart said. "Over time, customers begin to specify a particular brand, as well as WRCLA categories. As long as we provide fair market value, it makes our job easier."

As an example, Stuart referred to what his firm does with the popular Architect Knotty category used for decking. Russin rarely goes into the market trying to sell 2x4 decking. They tie Architect Knotty and the producer's brand of Architect Knotty in all their marketing.

Stuart said western red cedar's market share had been under pressure as new products entered the market supported by huge advertising campaigns challenging cedar. An increasing number of consumers will walk into a retail store and ask for certain products by name. As a result, some retailers who used to stock a variety of western red cedar materials reduced their stock and took on non-cedar products. "They have stopped marketing or promoting cedar and are now relying on distributors solely for special orders," said Stuart.

Some composites offer the opportunity for better margins, so some companies put more effort into marketing them. "Our focus on cedar has not wavered," Stuart said. "We believe that when our competitors choose to neglect cedar it offers us an opportunity to pick up the slack and enjoy a bigger piece of the pie."

He added: "We spend a great deal of money on literature and advertising, including displays at customers' yards, and are very involved in trade shows. We have I I salesmen on the road and their prime responsibility is to introduce and promote our product line as well as new products to retailers."

Stuart emphasized that promotion activities are needed at all times to keep market share. "No company should presume to be in such a secure position that it can do without advertising," he said. "Even very large, well-established and easily recognized companies in other industries continue to spend vast sums on advertising."

Stuart called on retailers to work together with distributors to promote the use of western cedar. Progressive retailers do well, but some front-line staff choose to take the easy way out and-unless customers demand a certain item-will not make an effort to interest them in cedar.

"The downside of relying on special orders is that if the retailer doesn't have the item on the shelf, the staff is more inclined to talk the customer into purchasing something that is in stock, instead of getting in touch with the distributor and finding out whether the desired item can be delivered quickly," said Stuart.