Sfory at a Glance

Ways to posation Pressure treated wood in a market bY determining geograPhical area, identifYlng customer group. .typical inventory seleCtion. . .advantages of segmenting market.

La us first look at the types of customers that are availablc to dealers of Pressure treatd wood. Under broad headings, they are: (1) The rctail customer: the do-it-yourself homeowner and the small contractor or installer, (2) The residential and light commercial ctedit customer: builders and equipment manufacturers involved in a wide range of projects using pressure treated wood on a regular basis' (3) The heavy industrial/commercial customer: "bigt' manufacturers and building contractors involved in multi-million dollar projects who buy pressure treated wood in a highly specified and/or structural oriented manner.

It is fashionable nowadaYs forretailers to report percentages of t'contractor business" and "d-i-y business." This is not a valid differentiation of the economic markets. The real fact is you have cash customers as a market segment and credit customers as a market segment, whether they are contractors or d-i-y.

The third economic market segment can be described as the "big credit" segment, buYers who demand extended credit terms, such as 45, 60, or even 90 daYs. These customers are not necessarily risky credit, however a dealer must carefully weigh the advantages and/or disadvantages of selling this market segment.

Tlpical groups of pressure treated inventory for the major market segments would include, but not necessarily be limited to the following:

Cash Customers:2x4 and 2x6 #l grade, selected lengths of 2x8, 2x10, and 2xl2 tr2 grade, 4x4'7' to 16' and 4x6-8' and 12', 4'x8' sheets of lattice and deckboard with eased edges, lx6-6'notched topped pickets, and water repellant.

Credit Customers: 2x6 #l grade and 2x4, 2x8, 2x10, and 2xl2 f2 grade in all lengths 8' to

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