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Bill Fishman

Bill Fishman & Affiliates 11650 lberia Place San Diego, Ca.92128 and other devices reduce the number of parent companies retailing our product mix.

Tue INDEPENDENT lumber and I building material dealer is going to become increasingly important to suppliers as more and more ChaPter I ls, takeovers, liquidations, absorptions

Hcrc's nl rationalc'. If vru rct ics thc hc'adlincs s ithin all our tradc publications publishcd in 1986. it's clear that this uas th!'\L'ar tirr Chaptcr lls. takc--orcrs. liquidations. absorbtions. and c'r'crr olhc-r dc'r'ice that rcducc's the numbc-r of parent companies r!'tailing our prrxluct mir.

As chains bu) oth!-r chains. thet pnrduce an o\!'rlap of conlpan) slores u ithin thc markctplacc'. Thc' sun ir ing Parcnt c()mpant clost-s thc lc'ss prolitahl!' oncs. Thc) also consolidatc' thc hu1 ing tunctions to rc'ducr' thc' pal roll and kr crcrcisc' morc cloul rvith thc' supplir'n. Thc supplir'rs arc $orricd. Nou. not onlv ilrc nran\ Anrc'rican pr<xlucr'rs thrc'atcncd t1 thc inrpxrrts. hut thcl art'also r^\-ing squc't'zcd tbr nraruin \ thc rctailing giants. And. rvhilc' s&)rc\ aR- g!'ning lonecr. $ idcr. arxl hignkr it is thc quantitl ot'cac-h SKU stockcd that is incrcasing rathcr than lh!'numh!-r clf brands nrcrchandiscrl. Thc consolidation ol slores atxl hur ing l'unctions is not gtxxl ncs.s for supplir'rs. For s()nl!- manufacluren it nreans the loss of a million dollar account - orernight. The snrallr'r sizc' ntanul-acturers fec-l the hurt in grcatc-r proponions.

This is what can happen to CCA lumber not pro tected against the weather... lt won't rot, but it can

WARP. SPLITand CUP

I harc no drruht that at thc'ir upcoming stratc'gic planning sc'ssions more supplien s ill nL dix-ussing a tirc-1ear plan geared to diresi[ thc-ir distribution. But. uhcther their pnrJucrs arc Jxrsitionr'ri to trc' pushed thnrugh. or ptllcrd thnugh di:trihution. suPPli!'ni rxn alvr rct-tEnizc'thisit is imponant that thcl make prtrr i:ions kr hclp sharpc'n th!- markcling skills of thc indc'pcndcnt rL'taiL'r and h is distributor. Thc' roL' of th!- supplier u ill hare to change radicalll from that of lust hr-lping move his os n product throush thc- front rcgister. It r^Lconrc.sinrgrnantthatthe'nranufacru&-rsupJxrrl thc' hr'alth of thc rc'lailcr. This additional \upp()rt nlusl c()nlL' nol onlr in thc' lilrnr ()f itcnr nrorcmcnl rL'pons. store dc'tailing. c'rtra dircounts. or addcd promolional tunds. but also in nrarkc't nc:*'arch. strategic planning and prolcssittnal guidance lirr thc'opention of the rctaiL'r': businr'ss.

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