ARKANSAS a OKLAHOMA

BOB JOHN qecutlve vlce peddent

I f lS becoming evident that Lowe's I and Payless Cashways, to name only two mass-m€rchandisers who have seen their sales slide in Arkansas and Oklahoma, have decided to try and buy market share in the d-i-y and the commercial building material categories via significant increased levels of consumer spending and/or reduced prices.

If mass-merchandisers persist with this strategy, as they can aflord to do, the independent lumber dealer of America and the product lines he sells must anticipate market share erosion and profit minimization. A principal weapon of these major competitors has been the massive infusion of dollars into continuing advertising programs aimed at increasing consumer awareness.

An analysis of the strategy they are advocating clearly indicates that the major mass-merchandisers are now attempting to sell customer service (and price), long the primary focus of the independent dealer. Unchallenged continuation of the massive media weight and the claims of personalized service will likely result in a continuing share growth for the mass-merchandisers, much of it at the expense of independent dealers.

Recent history gives convincing testimony that independent dealers cannot rely on their traditional methods of doing business, their traditional spending levels and the traditional support of suppliers they represent, ifthey expect to stem the loss of business to these extremely aggressive competitors.

As we strart off a new year, all independent dealers should resolve to stem the erosion and reverse the market share trend by:

(1) re-aflirming their position as the building material supplier advocate for their consumer/customers.

Q, re-establishing their leadership as the most important segment of the building industry in their community.

(3) becoming known as uniquely different and superior to any massmerchandiser.

@ establishing a benchmark against which all others will be measured.

(5) strengthening their position with and natural ties to their supplier companies.

(6) convincing users/prospects oftheir superior ability to satisfy consumer product and service needs.

The climate will be right in 1988 to create in the public mind a clear understanding of the "big difference" between the independent and the mass-merchandiser. If you act aggressively and positively you can convince your customers that they will be treated with greater professionalism and receive greater value from you, the independent dealer, than they can from the massmerchandiser.

Make plans now to attend our l00th Exposition and Convention Feb. ll-13 at Bartle Hall, Kansas City, Mo. It promises to be the largest show ever with 300 exhibit booths. Our special l00th Anniversary luncheon will feature Paul Harvey.

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