OPERTffiING OPPORTUNITIES

WALLY LYNCH Paid Associates PO. Box 741623 Dallas, Tx.75243

fi eennflNG dara was collecred V from I 85 dealers and chain outlet managers in a recent Northwestern Lumbermen's Association survey. Hardly enough replies for statistical validity, but certainly indicative of the opinions and thoughts of your functioning kindreds. Here's a bit about them and what they forecast for 1987.

Annual sales volume of I l9 of the dealers was less than a million dollars annually. An additional 4l operators did more than this, but less than three million. The other 25 reported from three to over 50 million.

Financial planning received no comment from eight companies. Seventy four reportedly did financial planning each year, but 104 made no financial plan. For 1987 single yards anticipating increases averaged them at 8.100/0.

Chain or branch store managers expected 50/o increases on an average. Single operators expecting losses averaged them at | 1.680/o and the multi-units al 12.450/o.

Respondents were asked to evaluate growth potential for the next three years from a low of 0 to a high of 7. Store size expansion, yard remodeling and additional locations were heavily weighted toward the lowest potential in terms of contributing to future growth. Increased advertising, additional services, changing market focus, increased market focus and changing market were expected to contribute to growth. Fifty thought new and additional services were important to growth. Changing market focus got a combined 5l votes. There were 47 supporters of increased market focus and 45 believe changing market would contribute to potential growth during the balance of the 1980s.

A second area of the survey asked each respondent to list the first and sec- ond most important obstacles to development of an acceptable ROI in their company. Competition and economy led the list of obstacles with general generated expense and collection problems next. Lack of capital and unprofitable lines were virtually tied for third place. lf you would like our free Thrival (contraction of thrive and survival) list of the top 20 areas doing the most profit damage during 1986, send us a stamped, self-addressed envelope.

A third area asked for the origin of grealesl competition during the next three years. The three options were mass merchandisers, marketing by existing competition and new competitors. Mass merchandisers and marketing by existing competitors were leaders. New competition trailed at the bottom.

This information serves as a look into what others in the business, who may well have problems and opportunities exactly like yours, are thinking- For years the idea has been that the basic difference between the successful retailers and also-rans is in three areas: the ability to control expense. to implement cost effective change and to sustain offering of growth opportunity. Being reminded of these may help as you wrestle with the future.