Big bucks potential in industrial accounts

EWS BULLETINS from across the country:

"The largest wood-frame project ever built in Orange County, Ca., 770 apartment units resulting in 800,000 sq. ft. of living area, is underway. The four-story, $45 million complex will require 10,250,000 bd. ft. of lumber ."

"Some 200 portable elementary school buildings, each 960 sq. ft., are consuming thousands of bd. ft. of high-grade lumber, emptying the shelves of a local Fort Lauderdale, Fl., lumber chain. ."

"The Twin Cities'first five-story wood frame building, a self-contained retirement community, nears completion. While the final steel bid was more than $1.6 million, wood framing cost $836,000. . ."

"Marriott Corp. has commissioned the design of wood-frame buildings for its 300 luxury hotel expansion. Along with the Raflles and LeMeridien chains' expansions in wood, the three corporations have the potential to use over 150 million bd. ft. of lumber by 1990. ."

Story at a Glance

Ways dealers pursue Indus. trial sales. .big morcy for both independents and chains ... how to use deep invenlory, prompt, dependatte senrlce, special treatment to firact industrial aoodrnts.

oommercial wood uses continues to grow.

Industrial aocounts can be big money repeat business for independent dealers and chains alike. Scptty's, Winter Haven, Fl., reached $515.3 million in sales in fiscal 1987, having long devoted equal time to pursuing commercial users. A fairly constant one fourth of sales are made to professional builders, contractors, developers and remodelers. Sales to commercial customers for the maintenance of hotels, office buildings, schools, govemment agency buildings and condominiums amounted to 8%, or well over $40 million last year.

To accommodate industrial accounts, it is necessary to have a large inventory and access to everything and anything a builder may need. "We have the quantity," says Herb Eaton, Minton's Lumber & Supply, Mountain View, Ca. "They know it's here. Our hardware department, for example, has a depth that most other dealers' don't."

Ruel Alexander, Canyon Drive Lumber Co., Amarillo, Tx., also has to stock his *relves with extra itenn for the benefit of his @ntractor customers. "We do ciNrry some items, like treated materials, laminated beams, gtuhm" microlam and Trus Joist rnaterials, that all dealers don't necessarily car4r," he says.

Bull*rg Products Dlgert

trial salesman vhose life revolves around pleasing his contractor customers. "He's well liked, knowledgeable and humorous," says Eaton. "They &n't dread him coming by. Everyone looks forward to seeing him even if they don't need anything. But most of all, he puts up with their needs. So many times they have out of the ordinary rcquests. He goes out of his way to get the information or products tbey nee4 no matter how large or bow srnall.

"He oom€s in at 5:30 am. rdd is available for then He helps them get an early start on their day. He chases around in his pickup truck for whatever they need. And while we don't make anything off the little trips, it averages out jnst fine."

To attain new indusfrhl &ounts. Minton's doesn't have to rcF q mail solicitrtion or "bd4g a pccL" The salesrnan miSbt stop by !o spcak with new purcheeiry epNr6 in the area, but he lets personal expcrience do the rest. "A satisficd cuEtomer soon talks," Eaton says "It's amazing how muc{r thes budrc talk to each other. So, our in&rsbhl aacounts have been built in I snowballing efroct as people lcarn ftom each other that we havc tlrc timoly delivery, daily servie and top qnlity materials that they nced."

In the srnall town of Fitm, Tr., Edna Lumber Co. must look outside the city limis for btrsincsc Says Edna's George Nabiq "What ve'll do is leave signs at tbe jobeilcs we supply, reading,'Metcdds proykted by Edna Lumber Co.' "

Edna Lumber has abo diwwred that it must provide oxht frvo6 !o maintqin and hande indrddd, e. counts. "We hfr€ to barp lpmeone on our stafr rftocu trhc th! proi:cts off," saln ItdC$ 'S@one who can figure out rtrt ipc! into the project md hov much of each material will be ncodcd lt's a service you can't clnrxP for."

Ground-breaking use of wood for mammoth industrial projects is making national news. Dealers are retaining their do-it-yourself customer base, while actively pursuing industrial accounts. And the pie of lv[inton's onlploys a single indus-

But more imfbrtantly, because contractors have strictor deadlines than the do-it-your*fer, retailers must be able to give each special attention. "lt all boils down to servi@," says Alexandef. "You can't really sell differently. Basically everyone has the same calibcr of personnel and the same products. There arc a lot ofdifferent approaches, but the primary factor still is prompt, dependable service."

These ompodc hnrc bund it helpful to ebo dsveloe bou$ phnq offer dboounb basd on monthly volume, and hrvc a tol rnaintenance depertment, whfrfi tbc industrial amunts in perticuler lrcem !o like and take dvantrgp of.

Yet all the ttoubb ad ddod energy can meen big moncy. "lndustrial amunts haw grorn !o expect special treatment," slyg Eaton. "And we're happy to give it to them at no additional cost.o'