HOME GENTEM MERGHANT

Bill Fishman & Affiliates

11650 lberia Place

San Diego, Ca.92128

T HE PRINT ads are geuing berrer.

I There is more variety and a greater sense ofurgency in the home center and building material dealer advertising. Color is being used more effectively. Illustrations are crisper. Headlines are clever. The formats, ranging lrom tabloids, flexies and catabooks, to color comic fold-outs, are exciting and efficient.

While most major advertisers in our industry have learned to maximize their advertising dollar there are still a number of retailers who do not understand the function of retail advertising.

Advertising is not a panacea. lt's a communication vehicle. Advertising is a means to meet individual store and corporate sales goals.

Advertising can:

. bring in traflic o sell specific items at prices

I advertised o create long range image position both store-wide and by department

. introduce new product categories o introduce new items create impressions such as the store's value image

Advertising can not: o overcome high prices or bad merchandise o compensate for a poor location or limited hours or bad facilities o overcome the image of discourteous and/or unknowledgeable salespeople or poor systems and procedures or unrealistic credit policies. lf you've got nothing to say to the public, say nothing. You will spend your advertising dollar much more wisely if you run your ads less frequently and with greater size and impact.

Some retailers don't realize that they are running a clearance ad 52 weeks a year. The operator that waits 'til the newspap€r salesman is in his store on Tuesday to pick up the advertised list of merchandise lo be run on Thursday is making the newspaper wealthy. but probably hurting his position in the marketplace. When the retailer shouls to the back room. "Tell me what we've got enough of to run in this week's ad," he's presenting in print what his customers are telling him they don't want . his overstocks. That is not what advertising is all about.

Consider not running the ad during a short week or weekend, if you've nothing to say or if you're facing poor floor coverage.

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SPECIALIZED TREATMENTS NOW AVAILABLE o Wolmanized Lumber o Dricon Fire-Retardant

. Creosote

PRODUCTS AVAILABLE r Landscape Timbers r Railroad Ties

. Poles . Posts o Dricon Fire Retardant Treated Wood r All Weather Wood Foundationsr AWPB-FDN Stamped

For information on quiek service call the treating sxparts/

JOHN BNANSCT'DI erccudrc vlce prccldcnt

(!nCe Nov. l, OLA retail andasso- lV ciate members have been able to call the association offrce in Oklahoma City toll free.

To take advantage ofthe new service, members simply dial a l-800 phone number which routes thefu call to a private switchboard located elsewhere in Oklahoma City. Callers will know they have reached this switchboard when they hear a did tone. At this time the caller will enter a special four digit number which will then route the call to the association oflice.

There are two different 800 numbers depending on whether the call originates from within or from outside Oklahoma. For those callers dialing from a point within Ok'lahoma the phone number is l-800-5224496. At the dral tone callen must enter 9OLA (or 9652). For those initiating a call from outside Oklahoma, the phone number is l-80G2214905, with the same 9652 number being entered at the did tone.

Anyone necding to contact the association offrce may use the toll free number.

If you experience any diffrculties with this new service, please advise the association offrce ari sq)n as they oocur so we can resolve them as soon as possible. OLA offrces will be closed for the holidays on Dec. 25 and Jan. l.

]lr:)6a E S74fit

I N rOonv'S fasr moving, highly I competitive business environment, lumber dealers should continually review their operation for ways to improve efficiency and increase profits. A good way to start is to look over your current business operation and make a list of "No Cost" and "Low Cost" improvements that can be implemented by your employees as time permits. It is one of the best ways to improve effrciency and increase profits.

Below are just a few "No Cost""Low Cost" improvements you may wish to consider and then select two or three for starters, or add them to your own list for implementing this year:

(1) Now that mid-year inventory is completed, make a list (a "plush list") of inventory dogs and surplus items, and give it to each salesperson with an incentive and perhaps a dollar quota that they are asked to sell.

Q) Work with your employees: Re- view, recognize, and try to improve some of their work problems. Provide them with basic training tools such as a NLBMDA Forklift Training Manual or a NLBMDA Truck Driver's Manual. Have a monthly supervisory meeting to air pending problems and discuss plans for the month ahead. Also, don't forget to say thank you for a job well done!

Delivery expenses are a continuing concern. Develop a very simple delivery policy for guidance to your salespeople. Most dealers' delivery trucks cost about Sl per mile to run, i.e., a trip of l5 miles out and l5 miles back has a direct delivery expense of $30. Develop your plan to @ver your expenltes, perhaps by zone and dollar sales amount.

(4)

For security, make sure the order filler and truck driver are not the same person. Both should count the load, then a spot check of every 2nd or 3rd load at random by the foreman is advised. Change gate locks or re-key once a year and permanently secure the lock to the gate or chain so that it cannot be removed in the daytime or replaced without your knowing it.

(5) It doesn't cost anything to look. If you are not computerized, do yourself a real favor and talk to two or three of your competitors. The prices are lower now, the installation simpler, and the benefits are enormous. It may be the difference between profit and loss in your business. A computer now pays for itself in 2-3 years. When you, the owner, are committed to a computer installation, it can happen quickly and without pain. It will pay you to look into a computer for your business now! These are all important functions for your company. All are vital to its profitability. We would suggest you make time to implement some of these valuable functions, plus a few of your own. Make these part of your plan for 1988. It may help make it one of your best years. We certainly hope so.