Home centers at crossroads

By Rry H. Cooney Presidcnt Scotty's, lnc.

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building supply market,likemost things, does not stand still; every day seems to be a new experience, requiring decisions that meaningfully affect your company's operations.

This coming year will be no exception. Warehouse retailers are springing up on every street corner in metropolitan areas. New competitors are leapfrogging across state and regional lines to enter into what is believed to be the most promising market place around.

I am reminded of the unfortunate history of the discounters and a large segment of the grocery business, when overstoring resulted in the demise of some giants who miscalculated.

Growth is vital to command the attention of would-be stockholders, but growth for growth's sake alone can

Sfo4y at a Glance

Plan don't panic at new compe. tition...overstored markets a posslblllty. . .capltalize on your strcngths...growth for lts own sake can spell dlsaster.

spell disaster unless it is accompanied by a well-planned strategy that insures continued profit making long beyond the start up time.

This wholesale movement of competitors into a concentrated area places a heavy burden upon the established dealer, who must meet headon the challenge of the new entry into his market place.

With this new competition comes the fresh approach, a whole new look, that is enticing to the one stop shopper who views this large selection of products as "heaven come to visit." This, along with a lot of hoopla that accompanies the new entry, will cause many heads to turn.

In the face of all this, if you give in or give up, all is lost, but if you recognize your strengths and sell them just as enthusiastically as the new competi- house to take up the slack that would result from future sluggishness in housing starts. We hope to do that through intensive promotion of permanent wood foundation systems, including Plen-Wood and wood slab on grade, at the expense of masonry and concrete. And since the permanent wood foundation system requires pressure treated lumber, and since southern pine is a preferred species where pressure treatment is involved, we expect that our promotion will help blunt the inroads of Canadian lumber into our southern markets.

Under our five-year plan, the promotion of permanent wood foundation systems will also be extended to nonresidential construction. In this area, our ads, seminars and other group demonstrations will also feature engineered wood structural systems for roofs, walls and floors.

Our third target is the repair and remodeling market which traditionally is strong when housing is weak. The promotional emphasis here will be on patio decks, fences, gazebos and other outdoor additions which require pressure treated lumber. Over 3090 of the current southern pine lumber output is pressure treated.

The ultimate goal is a 1.4 billion board feet increase in the consumption of southern pine lumber per year. tor, you can realize increased sales and profitability in the face of the most formidable competition.

A big splash does not spell success, it only invites attention. You can ride out the waves if your boat is seaworthy and your motor is fine tuned. Don't panic. . .plan. This is a dynamic business we are engaged in, one that offers a wide choice of options in the way we approach the market place.

Whether your expertise is promotions, customer service, price, d-i-y or contractor oriented, or perhaps a combination of one or more of these, take cognizance of those strengths and make every effort to capitalize on them. They are more apt to insure your continued success than running scared and doing things you are not equipped to handle.

I am a firm believer that a business person who serves his customers in a manner that fits their needs cannot and will not be driven out of the market place, but a strategy necessary to meeting these needs is a must.