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NEW IN DECKING TREATED WOOD LOOKS AHEAD FORECLOSURE FREEZE

The

NOVEMBER 2010

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THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

There’s no wood quite like redwood.

Scott Padgett, designer/builder at Padgettdesign.com.

There’s no company quite like The California Redwood Company.

When you partner with The California Redwood Company, you’re not just getting a unique and beautiful wood product, you’re getting the experience and innovation only a company that’s been around for 120 years can bring. This year, we’re continuing with our spirit of constant improvement with the addition of two newly designed wood products, along with enhancements to our current products. We’re also launching a new marketing campaign, including a completely new website, a new identity and collateral system, and a robust in-store training program. The campaign, entitled “Build history” tells the rich story of The California Redwood Company and inspires homeowners to build something truly special — all of which translates to new and higher margin opportunities for you.

We hope you’ll call us at 1-800-637-7077 or visit californiaredwoodco.com to learn more about what a partnership with The California Redwood Company can mean. And find out if together, we can build history.

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Special Features 9 MARGIN BUILDERS CAPSTOCK COMPOSITE DECKING

10 FEATURE STORY WILL THE FORECLOSURE FREEZE HELP OR HARM THE HOUSING RECOVERY?

12 COMPETITIVE INTELLIGENCE SPOKANE DEALER DARES TO EXPAND

14 FIRST PERSON THE END OF CHEMICAL-PHOBIA?

16 PRODUCT SPOTLIGHT MODULAR DECKS ARE A SNAP

29 OVER THE COUNTER 10 RESOLUTIONS TO POWER UP COUNTER SALES IN 2011

46 PRODUCT SPOTLIGHT RADIANT BARRIER INSULATION

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In Every Issue 6 TOTALLY RANDOM 18 OLSEN ON SALES 20 GREEN RETAILING 24 MOVERS & SHAKERS 32 KAHLE ON SALES 36 FAMILY BUSINESS 41 IN MEMORIAM 42 NEW PRODUCTS 47 MANAGEMENT TIPS 49 ASSOCIATION UPDATE 52 CLASSIFIED MARKETPLACE 53 DATE BOOK 54 IDEA FILE 54 ADVERTISERS INDEX

November 2010

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TOTALLY Random By Alan Oakes

Selling by email, that’s typing!

S STAFFS HAVE BEEN CUT and everyone is doing more than they have ever done, I find myself less and less able to speak with customers or track them down. It is harder than ever to speak live with someone. You can leave a voice message that promises “your call is important to me, please leave me your name….” You know the one I mean, the one you never hear back from, the one that sends you into therapy, because obviously your call was not important. So then you have the dilemma of how many times do you call and leave a voice message without sounding like you are stalking or harassing them. Then you move to the email route. But as we all know, that is not the answer. When I was traveling recently, I read a great article with the headline “Selling by Email, That’s Typing.” When I thought about it, that is absolutely true. Yet we are all guilty of it, including me. We are becoming a business culture of never talking with one another. We are happy to tell the world on Facebook or Twitter even the smallest minutiae about our private lives, but we cannot pick up the phone and tell it to friends. Similarly, it has become too easy not to call someone, especially in business, including colleagues sitting in the next cubicle. We cannot get up, walk over, and talk with them; we just text or email them. How many times have you sat listening to others making personal calls on the bus, at the airport, wherever? But how many times do you hear people actually making business calls and closing a deal? Rarely! After all, when your own telephone company does not want you to call but directs you instead to their website, it shows you where our culture is going. Personal interaction is still the best way to do business—and to have the best chance at maintaining your customers. We are all constantly fighting the email battle—you know, 300 to 400 a day with about 10 of them having any merit. It has become the most abused form of communication available. If you are one of 20 voice messages you still have a better chance of getting answered than one of 500 emails. That delete button is far too easy! It’s too easy to say no and, once you receive a no by email, how do you turn that around? How much time is lost emailing every day (apart from the hours lost on noncompany business surfing the web—yes, we are all guilty) when it would be far better to pick up the phone and take your chances on getting through. After a while, you tend to put certain accounts into stereotypical buckets and then it becomes just too easy to decide not to call, but email. Over time, it just becomes the norm. But I do not think it brings the same results. It is far too easy for buyers/customers to hide behind email. Very few deals are done exclusively by email. Human/voice interface is necessary. Yet as salespeople we are more and more guilty of sending our form emails that are not only impersonal, but have a small chance to succeed in their objectives. I agree that email is absolutely vital today for sending detailed information fast, but for closing the deal, it is still necessary to do it the old-fashioned way, with a call. I would suggest every sales manager walk behind their sales/telesales reps to see how many actual calls they are making. When they hear too much typing, there is a problem. Let’s be honest: if sales can be done by email, why hire expensive representation? Typists are much cheaper. Lastly, I am not against email. I will continue to use it and probably abuse it, but it will be my last resort, not my first. Let me know what you think at ajoakes@aol.com— sorry, I mean please call me at (949) 8521990 and I will gladly return your call.

Alan Oakes, Publisher ajoakes@aol.com

The Merchant Magazine November 2010

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MARGIN Builders Caps for composite decking

Deck builders shell out extra for capstocks BASF CORP. is working with several composite producers to add its Luran coating to their decking products, for improved weatherability and a broader color palette.

HE LATEST TREND in composite decking has been going all vinyl—but just on the surface. Over the last year, several major manufacturers have introduced hybrid lines: composite deck boards encased in an all-vinyl “capstock.” The harder outside shell is said to provide greater durability and resistance to staining, scratching, fading and moisture. It can be cleaned up with soap and water, and produced in rich, dark colors. The components are coextruded, reportedly to combine the best easycare features of composite and PVC decking, with none of the drawbacks. (Although the improvements do make the products the most expensive composites on the market.) The idea stems from the process many composite manufacturers use to produce their railings. Fiberon’s Horizon composite decking with protective, encapsulated surfaces were first introduced in the fall of 2008. After the immediate success of the product in solid colors, Fiberon two lines that offered the look of rich tropical hardwoods in the summer of 2009. To meet demand, Fiberon has increased its capacity by 300% since the beginning of 2010 and is in the process of adding further capacity. “We believe the outlook for true low maintenance protective surfacecapped decking is very bright and that these products will continue to capture

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market share from traditional wood plastic composites and PVC decking,” said Chris Beyer, Fiberon’s vice president of marketing. Universal Forest Products’ capstock, Latitudes Capricorn, is also “selling very well.” Its coextrusion technology allows UFPI to emulate rich tropical hardwood colors similar to ipé and mahogany. “Latitudes Capricorn decking is a great alternative to traditional composite decking,” says UFPI marketing manager Chris Fox. “We see an increased demand in this type of ultralow maintenance product.” Trex’s Transcend is capped on the top and two sides, but not the bottom. The manufacturer says the composition allows the underside to breathe, helping to prevent surface separation. Conversely, Horizon and Capricorn are coated on all four sides, making

the boards reversible and providing maximum moisture protection. “With its durability, low-maintenance, and eco-friendly qualities, Transcend is now the foundation of our product portfolio,” noted marketing director Adam Zambanini. “We look forward to growing and further innovating the collection.” CertainTeed added a PVC capstock to its Boardwalk line back in 2007—shortly before discontinuing all composite decking. This year, CertainTeed returned to composites, distributing a capstock decking produced for it by Fiberon, EverNew PT. Enduris also offers capstock decking, but Endeck’s core is cellular PVC instead of composite. As a result, the decking boasts superior consistency and can carry a lifetime warranty, compared to the 25-year guarantee offered by several competitors.

FIBERON’S Horizon capstock decking is covered on all sides with a protective PermaTech layer. November 2010 The Merchant Magazine

FEATURE Story By Dr. Lynn Michaelis, RISI

Will the foreclosure freeze hurt or help the housing recovery?

after the boom years in 2002-2006 has been without historical precedent. The cause of this cycle was not tight money, but rather the correction for the overbuilding and easy lending standards during the bubble phase. As we have stated on several occasions, the problem this time is an inventory correction. Despite record low mortgage rates and high levels of affordability, home sales have remained depressed, except for the small surge due to tax incentives. An inventory correction process in any industry requires that production remain below demand until the excess inventory is eliminated. Only then will you see a sustained rebound in production (housing starts). The excess inventory has three components. One is vacant stock of “owner” units (primarily single-family, but also condominiums). Using historical vacancy rates and estimates of foreclosed units that are vacant, this excess inventory is about 1.3 million units. Another inventory problem is in rental units. The current vacancy rate of 10.6% would suggest about 1-1.2 million units of excess rental units. Finally, there is the “hidden” inventory of units that are yet to be foreclosed. Currently, about 8% of all home loans (or 4.2 million loans) are either in the foreclosure process or over 90 days delinquent on payments. The recent freeze in the foreclosure process will have a profound effect on the crucial questions facing businessHE HOUSING BUST

es dependent on the housing industry. When will sustained recovery begin? What will the shape of the recovery look like? What will the mix of units be? At the time of the freeze, almost 1 million houses would have been taken over in the foreclosure process during 2010. The problem is not that people could fix the problem if given more time, but rather that they have fallen behind on payments for one of two reasons: either they have lost their job and cannot make the payments or they choose to quit making payments because the house value is now less than the outstanding mortgage. The financial system became overloaded by the sheer volume of foreclosures and a rush to get the troubled assets off the balance sheets. Although a rapid elimination of this “hidden” inventory is highly

The Merchant Magazine November 2010

desirable, it does need to be done legally and carefully. However, this freeze will delay the correction, not eliminate the need to correct the problem. Home sales will plummet, since about 30% of existing home sales were foreclosed units. The financial institutions will have to add staff and ensure proper legal procedures are followed to proceed again. Although this slowdown might take some pressure off of home prices in the near term, it just means an even bigger problem in 2011. The backlog of foreclosures will build, adding to the uncertainty on home prices in 2011 and 2012. With 4.2 million homeowners already behind on their payments, foreclosure rates will remain high through 2011. Although home prices rebounded this year (up about 3.5% nationally according to the CaseShiller index), some housing experts believe home prices will fall again next year. This means the negative equity problem is not going to be eliminated by rising home prices. Shifting foreclosures from 2010 into 2011 increases the probability that home prices will fall further next year when another surge of foreclosed units hits the market. If potential buyers are concerned about house prices, then they will defer purchasing for at least another year or two. With the foreclosure process getting more difficult and expensive, the financial system will become even more careful in making new loans. Already restrictive lending standards Building-Products.com

could become even more stringent. So unlike the easy lending period in 2002-2006, the current criteria will force younger families to defer ownership until they can save enough money for a down payment or get sufficient verifiable income to meet lending standards. Because of the easy lending standards, home ownership in 2002-2006 rose above 69% and the share of single-family units for that period was above 75%. Although it is too early to tell how the freeze will affect the overall housing recovery, it is likely to have a profound effect on the mix of units built over the next three years. By delaying the inventory correction of singlefamily units, lowering expected home prices, and making lending standards even more onerous, the multifamily segment could benefit. People who lose their homes have to live somewhere. Younger families will have to defer ownership. No one believes housing will be a good investment (unless you can get a great deal on a foreclosed unit). After defaulting on a mortgage, these households will be excluded from ownership for several years. Thus, as the economy rebounds and employment recovers, we should see the vacancy rate for rental units drop quickly in 2011. Unlike singlefamily units, multifamily units are financed as a commercial property and the due diligence depends on the projected financials of the project, not on the owner’s income. Bottom line: the freeze in the foreclosure process is likely to delay a sustained recovery in single-family starts and is likely to contribute to a shift in construction towards multifamily units. This will dampen the recovery in wood products demand given the much lower lumber and panel usage in multifamily units compared to single-family starts.

– Dr. Lynn Michaelis, former chief economist for Weyerhaeuser, is a senior associate of RISI. He can be reached at (206) 434-8102 or lmichaelis@risi.com. RISI is a leading information provider for the global forest products industry and publisher of Crow’s Weekly Market Report, the longest-running source of prices in the North American lumber and panel industry. Sign up for a free trial subscription to Crow’s at www.risiinfo. com/crows.

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November 2010 The Merchant Magazine

COMPETITIVE Intelligence By Carla Waldemar

Taking over on a dare

OW CAN YOU CONVINCE your first-born to take over the family lumberyard? Try some psychology. Just tell him not to. Quickest way to motivate a kid. Mark Gatlin’s grandfather, of Spokane, Wa., built a little lumberyard from scratch in 1943. As Mark recalls, “He’d get up at dawn, work until dark. He worked there until the week he died, at 88. He was… awesome!” Mark marvels, still in awe. “And my father was the same way, you bet! Up at sunrise. I remember him working all the time.” Not a lifestyle you’d want to wish on your kids, nor one anyone born in the slacker generation would aspire to. “I grew up in the yard—sweeping, loading customers, cleaning up: grunt work. It took forever just to get [myself working] inside. To tell the truth, seemed like they were trying to push me away. I had to kind of fight to get in here. And then, my dad was happy that I did.” Well, duh, Mark. Straight out of the textbook. But the yard Mark stepped up to was, basically, “a dusty, dirty little place with no carpet or linoleum on the floor, boxes of nails sitting around—like those little momand-pop groceries that aren’t around anymore, because they couldn’t compete. “When I stepped in, 10 or 12 years ago, I knew we had to transition ourselves.” So, first thing he did was… to resist buying Discount Lumber its first-ever computer. (“I didn’t want ’em here. The people at the counter could take care of everything. ‘They’re my computers,’ I’d say.”) But

by February 2009, Discount had bitten the bullet—er, the software—and was fully up to electronic speed. The next big thrust, however, was fully Mark’s pet project. “I knew that the only way a lumberyard could continue to grow was to add things to it,” he explains. Scouting for a niche, he uncovered one as big as a crater. “So, seven years ago, I started a truss plant: totally engineered trusses. The basic idea was, nobody was doing this on the whole north side of Spokane. Well, there was one guy, a quarter mile away, but he was doing a no-good job. So I thought, ‘You know what? Add a product line that’s a manufactured service.’ Made sense to me, so I bought the machinery and hired a crew.”

… BY SOON ADDING its own truss plant, then five years later bucking the economy…

THIRD GENERATION owner took over Spokane’s venerable Discount Lumber and quickly shook things up…

The Merchant Magazine November 2010

“Sure, there was a learning curve,” he has to admit, “but we were busy from the get-go. We did $2 million in trusses the first year—trusses for housing, commercial buildings, farm buildings—and all by word of mouth.” As you may have gathered, Mark is not one to put his feet up and rest on those wooden laurels. To serve his broad mix of customers—retail off the street, remodelers, small contractors, and farmers (“I’m not gonna hang my hat on any one niche,” he asserts as a stupid/risky option, take your pick)—and to earn the chance to thumb his nose at a notorious company in town, who was two-stepping metal as a retailer, Mark decided to launch another division Building-Products.com

of Discount. This venture would produce metal panels for roofing, siding, post-frames, and pole buildings. “It’s unusual that a lumberyard gets into this type of work,” he’s quick to agree, and starts to trace the path: “Good story!” he promises. “We supplied lumber to this one-and-only company in town that produced metal. Then they took the metal and the lumber and the trusses to the jobsites. They’d dump the wood, leave it uncovered, pieces missing, broken, orders incorrect. So, one thing led to another. I finally had a conversation with the owner, which left a bad taste in my mouth. He basically gave me the double-dog dare: ‘You couldn’t do it; you don’t have the money,” blah, blah, blah. So Mark, of course, came back with, “You’re on!” He took on “a company that liked to think it was God in the metal industry—that nobody could do what they do.”

… BY LAUNCHING last year its own metal shop—an unusual niche for a lumberyard.

But he soon did. He located an outfit to make him a metalrolling machine for a $1.5 million outlay, then—oh, yeah—told his dad, “I’m tired of them making all the money while breaking our stuff.” Dad recoiled, “Not right now!” in 2009, in the depths of a recession. But Mark returned the volley: “Look,” he explained, “I found a guy whose company gave us customer service second to none. He explained to me the method; he made it happen. So I bought the raw material, ordered the machine, and basically crossed my fingers. I set up the operation in part of a huge warehouse we

owned—added insulation, gas and heat and hired three people—and before we even opened the doors, we’d presold $100,000 of metal, just by word of mouth. People were tired of the other guy and were ready to try the new guy,” he presumes. Much of the metal soon found its way into ag buildings. “The western states ag-building market is huge, absolutely huge,” he notes. “We’ve got four semis with forklifts, two smaller trucks with forklifts—12 trucks altogether, and we deliver to Washington, Montana, Idaho and Oregon. Now, our customers buy lumber, trusses, hardware, metal roofing, and the screens and clear panels that go with it. I believe we’re the only one-stop-shop around. The others are two-stepping. And we’re doing fine. When that fella dared me, making it sound too tough, I just tried all the harder.” Still, Discount Lumber is virtually hemmed in by an army of boxes, smaller chains, and other independent yards. “Customers here have so many choices, so I tell them, ‘Just give us the last look.’ We show them we can offer the best of everything—product, price and service. I’ll do whatever it takes to give them the best deal possible. And,” he adds, “it isn’t that hard. The boxes kind of defeat themselves with their lack of expert service. Here, most of our 27 employees have been around forever. We’re doing fine.” Even in this slack economy. Housing packages are down—true—but, says Mark, “there’s a lot of remodeling, ag buildings, post frames for shops and garages.” And when good times roll around again, Mark’s (surprise!) got yet another plan in place. “Down the road, I want to open a complete, full-service door and millwork shop, the final piece of the puzzle. I jumped right in with the trusses and the metal, but this time, I’m doing more research, to make the right move. “You know what? Nobody can get ahead without trying, and in this economy, you’ve got to pull up your pants and get after it. If you just do what you’ve been doing for the last 15 years, you’re not going to make it. And,” he adds, “I’m not going to let my grandfather down.” Carla Waldemar cwaldemar@comcast.net

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November 2010 The Merchant Magazine

FIRST Person By Huck DeVenzio, Arch Wood Protection

Thoughts on fearing chemicals, ignoring wood, and building green

its purpose admirably, with qualities that are unmatched by current alternatives. It will probably be specified and depended on for many years to come. But treated wood is a very mature product. Few new applications are emerging, and existing applications face growing competition from composites, steel, concrete, plastics, and tropical hardwoods. RESERVED WOOD SERVES

The current state of the construction industry has depressed the sales of treated wood, along with the morale of those trying to sell building materials. This will pass, but today’s economy masks foreboding issues that need attention if preserved lumber is to continue as a major building product. Not long ago, I thought sales of pressure treated wood might be cut

BREATH OF FRESH AIR: A waning sense of chemophobia opens up the opportunity to stress the green benefits of treated wood. – Photo by Arch Wood Protection

The Merchant Magazine November 2010

severely by chemophobia, a fear of chemicals. Many people are leery of chemicals—until they become ill, when they demand all of the medicines they can swallow, inject, or otherwise apply. Fear of chemicals led to the change in the preservative used to treat residential lumber and fear remains a factor in selling preserved wood to some consumers, but I’ve sensed a shift in chemical concerns. Five or 10 years ago, our website got frequent questions like “Is this wood safe for my children?” Now we more often hear “Is this wood safe in my garden?” Either people have become more comfortable with our chemicals or less concerned with their kids. For the most part, people don’t care about the chemicals in their wood, or they would rather not think about them. Professional buyers care about performance. Homeowners care especially about appearance. Everybody wants material that is reasonably priced. The treated wood industry could probably help itself by addressing our product as preserved rather than pressure-treated wood. A long time ago, the founding fathers of the industry called their product “pressure treated” wood, no doubt to distinguish it from wood that was coated with a treating solution or dipped in a solution. Treated and pressure treated are accurate descriptions of the process used to create the product, but these terms do not offer a benefit that might persuade consumers to choose it. I suggest that we make more frequent use of the term, preserved wood, especially when communicating with potential buyers. However, a rosy future for preBuilding-Products.com

served wood needs more than public confidence in chemicals and a name adjustment. The forest products industry faces a void in wood education. Few universities offer courses in wood technology or in wood design and construction. From science majors to future architects, students are not learning about wood. We stand to lose both potential recruits to replace us and potential customers to specify and buy our products. A promising industry-supported program, Wood Education Institute, is under way to develop presentations for university programs, but its progress has been slow and it will not solve this widespread condition by itself. The lack of appreciation of wood extends beyond college students. It may result, at least in part, from the competitiveness of our industry. We have been so busy battling each other over subtle chemical differences that we have neglected to make the public aware of the benefits of wood. This is particularly discouraging with regard to the environment. It bothers me when young people—and not-soyoung people—look down on wood products and on those of us involved in wood products because they think that using wood is harmful to the environment. Your own kids may believe this. Some of your employees may feel uneasy about their work. People fail to realize that if they want large, healthy forests, we should use more wood, not less. We are the good guys on this issue. We deal with one of the most environmentally beneficial building products. So far, environmental considerations do not seem to be affecting sales of treated wood in one direction or the other. It is mystifying to me why the leading green building rating system

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gives no points for wood preservation and awards very few points for wood at all. It presently accepts only one forest certification system, while steel, concrete, bamboo, and other materials get a free pass—they do not have to be certified. Let me remind you why you are an environmental good guy if you are making, selling, or promoting preserved wood: • Preserved wood is made from plentiful species of wood, the only major building product that is sustainable. • The trees come from managed timberlands where they grow rather rapidly. They are replenished in as little as two decades’ time. • The collection and processing of wood uses far less energy than that required for production of alternative materials, even when you add in pressure treatment. • The treating process extends the life of the resource, reducing demands on forests and eliminating the extra transportation necessary for shorterlived products. • Trees absorb carbon dioxide as they grow and wood products sequester carbon, two factors that reduce greenhouse gas. • The treating process emits no wastewater, and government agencies classify the air pollutants as “insignificant.” • Copper-based preservatives are made largely from recycled materials, namely copper wire and etchants. • Because wood is so strong for its weight, wood projects can often be installed with lighter-weight, lowerimpact equipment than required to install other building materials. • Wood provides noteworthy insulation—thermal, acoustic and electrical.

On top of these environmental features, wood is readily available, easily modified and painted or stained, and can be worked with common tools and without special skills. Wood has a natural appearance that people like. Plastics are trying to look like wood; we don’t try to make wood look like plastic. And, if that isn’t enough, preserved wood is usually less expensive than competitive materials. Despite the differences in our industry, I hope we can agree on the benefits of preserved wood and we will take steps to spread the word. Our companies should have information like this on our websites, insert it into our literature, put excerpts on price sheets, use environmental facts on emails, and add them to telephone on-hold messages. We should make sure that our sales staffs recognize the benefits. Much of this effort will entail preaching to the choir. I say, “Preach to the choir.” Right now they need the sermon, too. It will ripple outward. And do not hesitate to go into classrooms and tell students what you do. We’re involved with an exceptional product. Let’s not allow it to fade because of ignorance that we neglected to correct.

– Huck DeVenzio thinks that November is a good time to get on his soapbox concerning preserved wood. When not kissing babies, he is manager of marketing communications for Arch Wood Protection and a frequent author of articles explaining pressure treated wood and promoting the Wolmanized brand. Reach him at hdevenzio@archchemicals.com. This article was adapted from a speech by DeVenzio at the May 24 annual meeting of the American Wood Protection Association.

November 2010 The Merchant Magazine

PRODUCT Spotlight Decking Tiles

Modular decks are a snap for replacement jobs D

can be a cost-effective way to revitalize outdoor spaces—or create new ones—an important selling point in a tough market. The tiles can be installed on almost any level surface, such as an existing wood deck, an old concrete patio, or a new pressure treated frame. Smaller 12”x12” tiles are snapped into place, while larger 2’x2’ tiles can be mounted on adjustable pedestals. Both sizes can be removed for periodic cleaning or repair. Snap-in tiles have a plastic grid on the back that allows water to drain and promotes air circulation. Side tabs on the grid allow tiles to be easily snapped together—and easily unsnapped if need be—so no special tools, nails, screws, or adhesives are needed. “Contractors and homeowners can mix and match the tiles to create a variety of layouts for design flexibility,” said Brent Gwatney, v.p. of sales and marketing at MoistureShield. The company manufactures EcoShield 12”x12” composite deck tiles—plus an array of composite decking, railing, and fencing products. A homeowner in Long Island, N.Y., recently used EcoShield deck tiles and MoistureShield deck boards to revitalize a 432-sq. ft., pressure treated deck in just one weekend. The result was a unique design that looks good and can stand up to the elements. “Deck tiles provide a simple and attractive upgrade that’s easy on the wallet and the environment,” said Gwatney. “The result is a durable, long-lasting outdoor surface that can ECK TILES

BEFORE: No need to remove an old treated wood deck for updating.

AFTER: MoistureShield composite boards and deck tiles from EcoShield allowed the homeowner to update a pressure treated deck in just two days. (Photos by A.E.R.T.)

The Merchant Magazine November 2010

Building-Products.com

withstand years of exposure in a variety of climates, as well as heavy foot traffic and direct ground and water contact.” HandyDeck’s interlocking deck tiles also measure 12”x12”, but they are constructed of either ipé or bangkirai wood. The open structure of the plastic base enables air circulation and allows water to drain freely. Corrosionresistant screws attach the wood slats to the plastic grid from the underside, providing a smooth, splinter-free surface. “The tiles are a quick and easy way to update a drab patio or rooftop area, avoiding expensive demolition or rebuilding,” said Handy Deck president Malcom Kay. “They can be installed by homeowners with no particular skills, so they are the perfect d-i-y product.” In locations such as rooftops, he said, where the use of conventional building materials may be restricted, interlocking deck tiles are often the best way to build a deck. “Building owners often won’t allow permanent construc-

INSTALLATION is a snap with interlocking Handy Deck wood tiles from Handy Deck Systems.

decks over uneven or slope to drain surfaces.” With deck tiles, creating a custom outdoor living area can be easy. Beauty, durability, and ease of installation— deck tiles have it all.

DECK TILES from Bison Innovative Products allow custom spaces in small places.

tion, especially on the roof,” Kay said. “Deck tiles can be easily removed.” Bison Innovative Products’ larger 2’x2’ tiles are manufactured from ipé and FSC-certified massaranduba. They carry Class A fire ratings and can be treated with oil or left untreated to develop a natural, aged finish. No mechanical fasteners are visible from the top, for a clean look. Using the company’s Level.It adjustable pedestals, the tiles can be installed over almost any substrate—even directly on roofing and waterproofing systems—with no insulation. The pedestals allow water drainage and help compensate for uneven surfaces, such as an old, brick patio. “Our decking system is an ideal solution for retrofit projects,” said Lisa von Gunten, v.p. of operations at Bison. “A key feature is its quick and easy ability to install level Building-Products.com

CITY TERRACE gets dressed up.

(Photo by Handy Deck Systems)

November 2010 The Merchant Magazine

OLSEN On Sales By James Olsen

Sell with a similar story

as salespeople is to get our customers and potential customers to relaaaaax. Until our customers are relaxed, we might as well be trying to sell them while they’re running to catch a plane or, better yet, land a plane. Their concentration will be elsewhere. What we all want to know when we buy is, will it work? (Will it make me look taller, cooler, whatever? But in business-to-business sales, will it make me money?) One of the best ways to calm customers is by using “similar story.” Most commonly used during the close, similar story can be used to our advantage in many steps of the sales process. Similar story is simple in many ways. But delivery is vital. We need to deliver similar story in a matter-of-factconfident-not-cocky-off-hand-but-not-too-off-hand way. If we are too emphatic we will sound as if we are lying, boasting or both. If we are not confident enough, we will also create doubt. Bottom line: we must practice our delivery using this approach. NE OF OUR CHALLENGES

Similar Story Opening

Customer: “We prefer a high-end product like B&B Basics.” Us: “That’s great. We sell about 40 loads a month of B&B Basics.” •••••••••• Us: “Good morning, Susan. My name is John Honest, and I’ve been working with customers in your line of business (just like you) for the last five years. While every business is different, I have the experience to bring you the kind of products at the kind of value you need.” •••••••••• Customer: “I only buy direct.” Us: “Perfect. Most of my customers buy direct. It’s a great way to buy. Let me tell you how my customers and I work together to supplement the direct buying they do.” •••••••••• Again, confident delivery is a must. Customer: “I always buy below the market” (or high quality or…) Us: “Then you’re going to love dealing with us. Our customers love our competitive pricing.”

Similar Story in Needs Analysis

Customer: “I will need quick shipment on this.” Us: “Ninety percent of what we do is quick shipments. We have a 98% on-time delivery.” (Do the research. Most of our companies have high on-time delivery, but very few of our competitors exploit this data in their sales approach.)

Similar Story in Closing

Customer: “It seems like a good deal. I don’t know about the stock though…”

The Merchant Magazine November 2010

Us: “You bring up a good point. I have never shipped you this stock before. I’ve got this guy in Virginia, a real picky S.O.—I mean, a very discerning gentleman. He felt the same way. I pushed him a bit because it was a good deal and he needed it. He took it in, and now he loves the stock and buys it every week. You will, too. Let’s put this one together.” •••••••••• Customer: “This looks good, and I need it, but I’m going to hold off for a bit.” Us: “John. I’m not going to let you off the phone without your order. The last time we did this (change it to we even though it was him.) you called me back and the stock was gone. You were angry with me and yourself. This is a good deal, and you said you need it, so what’s your order number on this one?”

The “We” of Similar Story

Many salespeople say to me, “James, I’m new. I don’t have any similar stories to tell.” If we are a member of a team, then we are part of a “we.” If someone sitting next to me just sold 20 loads of 2x4, then “we just sold 20 loads of 2x4.” Note: It’s similar story, not similar lie. If I have to explain it further, you don’t get it. My experience, fellow salespeople, is that similar story works and works fabulously. Similar story is flexible—we can use it in many situations. Similar story has a calming effect on our customers and, surprisingly, on us as salespeople. Similar story gives us the feeling of confidence we need to sell and instills the confidence in our customers they need to buy. If your experience is similar to mine, you will have many success stories to tell using similar story.

James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com

Building-Products.com

GREEN Retailing By Jay Tompt

Build local, think global

movement is rooted in big thinking, but the U.S. Green Building Council is beginning to think small and local. Their mission is to transform the built environment—that’s thinking big with over 125 million buildings in the U.S., most of which are energy and water hogs. Considering that buildings account for a third of the U.S. carbon footprint, success is of global importance. After over a decade of leading the commercial building revolution, USGBC has become a transformative force with a valuable brand. But there still remain 120 million lessthan-efficient residential buildings, which is where action must now be focused. This is why the USBGC is putting considerable effort into boosting residential green building, in concert with local leaders, which is good news for LBM dealers. In residential building, there was already a green building movement well under way by the time USGBC’s LEED for Homes arrived on the scene two years ago. Local and regional residential programs have existed for years in progressive cities like Austin, Tx., whose Austin Energy Green Building program was the first in the nation. LEED for Homes shares many similarities with these programs, even though each reflects its own local conditions, both in terms of content and approach. In addition, there are alternatives to LEED, including EnergyStar, NAHB’s Green Building program, the PassivHaus approach (new to the U.S.), the International Living Building Institute, the NauHaus Institute, and a host of natural building organizations. Given these realities, I really like USGBC’s collaborative approach. They recognize that they’re part of a budHE GREEN BUILDING

The Merchant Magazine November 2010

ding community of green building leaders and that there’s more than one way to build a green home. So rather than attempt to impose their rating system, they launched the LEED for Homes Affiliate Program with the pragmatic aim of forging working relationships with many green building organizations and local green building leaders, thereby promoting the broader movement in the context of local needs. “We’re market oriented and are looking to support and promote what’s working in each community,” Nate Kredich, USGBC’s v.p. for residential market development, told me recently. For example, they’ve been working with North Dallas Green Built and NAHB, to develop educational materials for production builders, dealers and distributors. They’re even helping to produce a “mini GreenBuild” in the area. (By the way, USGBC’s GreenBuild conference is Nov. 17-19.) In Minnesota, they’ve joined a coalition with Minnesota GreenStar, with its new-build and remodeling rating systems, and Minnesota Green Communities, which advocates for healthy, affordable housing. They’ve also launched the Green Home Guide (www.greenhomeguide.com), a website to help connect homeowners, builders, and dealers with trusted information and with each other. In terms of economic clout, green residential building is only just finding its feet and, in any case, current economic conditions have strangled most building of any kind. But when homes start to be built again, it’s likely that many will be guided by a national or regional green program. “We recognize that for green home building to scale rapidly, it’s important that everyone in the value chain understand the rating systems and are well-connected with their local green builders,” said Kredich, emphasizing the value of education. They’re reaching out to support interested independent dealers, as well as the big chains. With many more new green residential products and materials coming to market in 2011, it should be easier for proactive dealers and distributors to rise with the green home building market. If that’s true, then the USGBC’s big thinking could very soon be taking root in a community near you. Jay Tompt Managing Partner William Verde & Associates (415) 321-0848 info@williamverde.com Building-Products.com

Drive Us

anywhere and everywhere ... in stainless steel

When building a deck your customers want a fastener that performs well in any type of decking material, and one that can stand up to corrosion especially near the ocean. Simpson Strong-Tie now offers an extensive line of premium stainless-steel screws and nails for decks that will meet their installation needs and help safeguard against corrosion. Whether it’s our SDS screws for ledger connections or our Quik Drive ® DHPD collated screws that require no pre-drilling (even in Ipê), we have a stainless-steel fastener to ﬁt the project. Learn how our complete line of fasteners can help drive business to you, visit www.strongtie.com/fasten or call (800) 999-5099.

Simpson Strong-Tie Company Inc. SSDECK10-D

DEALER Briefs

ProBuild Holdings , Denver, Co., has purchased the property its El Cajon, Ca., Dixieline Lumber store sits on for $2.61 million from former Dixieline owner William S. Cowling II. ProBuild also continues to hold longterm leases on two other Dixieline sites—La Mesa and Escondido, Ca.— that Cowling sold for $9.7 million to LN Real Estate , a division of Laird Norton, founder of Lanoga.

Ace Hardware , Milton-Freewater, Or., is moving to new building down the street. At 18,450 sq. ft., it’s twice the size of its current home of 30 years, allowing the store to increase staff and add new products, including lumber.

Farr's True Value Hardware, Coos Bay, Or., held a grand reopening last month to mark a top-to-bottom renovation of the 22,000-sq. ft. store. Among the thousands of new products added are hundreds of plumbing and electrical SKUs, in hopes of picking up customers from recently shuttered Perry’s Electric, North Bend, Or.

Mintonʼs Down after 99 Years

Everything at 99-year-old Minton’s Lumber & Supply, the oldest business in Mountain View, Ca., was to be auctioned off Nov. 9. “It’s difficult for the small independent business to compete against big boxes,” said president Debby Schulz. “It just was not working out. My parents, the owners, were putting in their own money to keep things operating.” Early next year, the buildings will be demolished and construction will begin on a 200-unit apartment project. The developer, Prometheus Real Estate Group, has agreed to rent the land from Schulz and her family for 75 years. “We want to hang on to the property as long as possible,” said Schulz, whose family bought the company in 1911. “The hardest part is having to lay off people because we are closing.” She said that many of the employees had worked there 25 years. “Through the ‘70s, ‘80s, and the early part of the ‘90s, we were able to run a profitable business,” she said. “But price is just a big factor right now. There is an enormous amount of inventory these stores carry and they

can price it a lot lower. Young homeowners are looking for the best possible price. Our clientele, I noticed, got older and older.”

New Owner Revives Northwest Mill, Retail Firm

The old Springdale Lumber Mill in Springdale, Wa., reopened this summer as Springdale Lumber & Bioenergy, a division of Borgford Bioenergy LLC. New owner Dale Borgford said the mill cuts specialty timbers for custom jobs and also sells standard dimensional lumber, plywood, drywall, roofing materials, and hardware items such as nails, screws and brackets. The business currently employs more than 30, but expansion will come quickly. Future plans include a new retail building and a generating system. “Preparations to install a whole log chipping system are in progress, which will help the fire fuel load reduction process in our forests,” he said. “A three-megawatt generation system is being prepared and will be installed soon.” The generation system, designed and built by Borgford Design &

WE SAW THIS STORM COMING. AND ENGINEERED FOR IT YEARS AGO.

Cost more? No. Work better? Yes. End of story.

Manufacturing, will use mill waste and forest slash for fuel. “Each success within the mill itself generates further successes in providing opportunities for local loggers and truckers,” said Borgford.

California Dealer Expanding

Homewood Building Supply will spend $3.6 million to build a new 36,000-sq. ft. facility on 8.8 acres in Loomis, Ca., just two miles from its current, rented location. “The economics of the whole thing are helped by the fact that we are presently paying rent,” said president Hamid Noorani. “We could be making payments on a loan that will be not too different from what we currently pay in rent.” He said that the larger location will give the company greater visibility, and room to expand its product lines and services. “We also think sooner or later this recession is going to run its course,” said Noorani. A little more than 5 acres of the 8.8-acre site are usable. The rest will be maintained and owned by the town of Loomis as a preserve. In exchange for the value of the land, the town will provide some road improvements.

Homewood also purchased 1.2 acres of credits from Wildlands Inc.— a conservation banking company in Rocklin, Ca.—to mitigate for wetlands on the property.

Reprieve: Swanson Mill Keeps Running—For Now

Thanks to a big order from China, Swanson Group’s lumber mill in Glendale, Or., which had been scheduled to shut down Oct. 21, will keep running into next year (see Sept., p. 22). The 20-million bd. ft. order will preserve 57 jobs at the mill. The other half of the facility’s workforce are being integrating into its plywood and veneer operation in Glendale. According to Chuck Wert, executive v.p. and chief operating officer, there’s enough supply to keep the sawmill running for about three months. He said, “Over the next three months, we’re hopeful that they’re will be other conditions that change that will give us the ability to keep it running.” To extend operations further, Wert said that the company is looking for signs of stronger demand, improved prices, or better availability of logs.

DEALER Briefs

Pacific Ace Hardware , Vacaville and Winters, Ca., opened its 3rd location Oct. 26 in Esparto, Ca.

Lowe’s opened the first chain big box home center in San Francisco, Ca., Oct. 29, at the location Goodman’s Lumber left nine years ago (Gina Meacham, mgr.). Home Depot had fought for and won permission to build on the site, but backed out last year. Lowe’s will begin construction early next year on a 159,000-sq. ft. store in Salinas, Ca. Meanwhile, the developer of a proposed Lowe’s in Santa Rosa, Ca., may sue the city over project delays.

Home Depot has begun hiring the more than 250 workers needed to staff a new 467,000-sq. ft. distribution center in Salem, Or., slated for a January opening. The $30.5-million warehouse will serve stores in Oregon, Washington, Idaho and Montana.

Habitat for Humanity relocated its ReStore in Wailuku (Maui), Hi., Oct. 16 (Karen Motooka, mgr.).

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MOVERS & Shakers

Dave Duncan, Lazy S Lumber, Beavercreek, Or., retires Dec. 31 after 40 years in the industry. Kevin Murray, ex-Hoover Treated Wood Products, has joined the sales team at Mary’s River Lumber Co., Corvallis, Or. Eddie Smalling and Ryan Williams, ex-Forest Grove Lumber, are new to the sales staff of OregonCanadian Forest Products, North Plains, Or. Tom Reynolds has joined the industrial division of Bridgewell Resources, Tigard, Or. Other new traders are Matt McCoun, Andrea Cowell, Jim Decker, and Brian Bippes, hardwoods; Hubert Mommers and Nils Dickmann, exports, and Gary Wing and Robert Leal, imports. Renee Cirrone is store mgr. of the new Do It Yourself Center in South Lake Tahoe, Ca. Tom Williamson has been elected president of PPA–Structural Wood Society (formerly APA’s Plywood Pioneers Association), succeeding George Sisterhenm.

Tianna Cash has been promoted to sales rep at Jones Wholesale Lumber, Lynnwood, Ca. Karrie Williams and John Edwards, ex-Bridgewell Resources, are back at Buckeye Pacific, Portland, Or. Mike Branson has retired as senior v.p.-timberlands at Weyerhaeuser Co., Federal Way, Wa. Tom Gideon, previously executive v.p.forest products, assumes leadership of the company’s timberland business. Larry Burrows is now senior v.p.-wood products. Peter Orser succeeds Burrows as president and c.e.o. of Weyerhaeuser Real Estate Co. Sara Kendall is now v.p.-corporate affairs, succeeding Ernesta Ballard, who is retiring. René Ancinas has been named c.e.o. at Port Blakely Cos., Seattle, Wa., parent of Pacific Lumber & Shipping. He succeeds James Eddy Warjone, who headed the family business for 32 years. Garth Williams, ex-Boise Cascade, is a new account mgr. at Idaho Forest Group, Coeur d’Alene, Id., concentrating on specialties.

The Merchant Magazine November 2010

Chris McIver was promoted to v.p.lumber sales & corporate development for West Fraser Timber Co., Vancouver, B.C. Memphis, Tn.based Sean McLaren is now v.p.U.S. lumber operations, and Peter Rippon, v.p.-pulp & energy. Stephen Frasher has resigned as president and c.e.o. of Western Forest Products, Vancouver, B.C. Chairman Dominic Gammiero has been reappointed c.e.o. Vice chairman Lee Doney also will play a more active role, focusing on strategic initiatives. Kevin Surace, c.e.o., Serious Materials, Sunnyvale, Ca., was among the speakers at the recent GreenBeat renewable energy conference at Stanford University, Palo Alto, Ca. Craig Menear, executive v.p. of merchandising, Home Depot, will receive City of Hope’s Spirit of Life Award Jan. 11 during the International Builders’ Show in Orlando, Fl. Mike Rowe Chip is the new director of technology for Mungus-Fungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.

Building-Products.com

the time Ace was selling franchises to appeared the whole thing was going first year. The co-op also allegedly them, it wasfurther trying alleges to convert when we got here. It took us about 45 told the investors that if they built said fire battalion chief Steve Sabo. “It generate positive cash flows in the The lawsuit thatfrom at an owner-cooperative tofranchises a privately held minutes get it under orThe fourco-op stores also at once and contin-the time appeared thetowhole thing control.” was going firstthree year. allegedly Ace was selling to renewable materials professor andpublic Degree: OSU Promotes Newwith corporation with intent tofrom offer Thegotfacility has been closed45since toldued dozens along the Interstate when we here. It took us about the investors that if they built them, it was trying to convert an department head at OSU, who leads SUPPLIER Briefs Building Jobs Green stock. record caused the roof to col- three74 corridor and the minutes to snowfall get it under control.” orOregon four stores atUniversity, onceQuad-City and Corvallis, contin-area,owner-cooperative the new program. to a privately held State The with plaintiffs thatpublic Ace was lapse last year. Damage estimates they could make tens of millions of Privatehas equity Cerberus The facility beenfirmclosed since has ued with dozens along the Interstate intentargue to offer “Our new curriculum is designed Or., now offers a bachelor of science corporation trying to increase sales of both were not available. dollars. dropped caused its proposed record snowfall the rooftakeover to col- of 74 corridor and theinQuad-City to train the next generation of sustain- franrenewable area, materi- stock. degree program chises and inventory toAce enhance The plaintiffs claim they repeatedly BlueLinx after failingestimates to acquire suffi- they als, lapse last year. ,Damage could make atens of millions The plaintiffs argue that was the ability professionals,” said McLain. to meet growing demandoffor likelihood of a public offering. Canfor Cautious with Restarts notified Ace about the poor perforshares to make the deal work. cient in green, “Companies were not available. dollars. to increase salesnatural of bothmaterifranprofessionals in the manufacture, trying In businesses addition are naming Despite higher U.S. lumber prices The mance of their franchises and demand-chises als-based demanding a Ace plaintiffs claim they and inventory totoenhance the marketing, and use of repeatedly sustainable, Jones Wholesale Lumber , Hardware as a defendant, the lawsuit and growing demand for its wood in ed assistance, but the corporation different type of person for employnotified Aceresources-derived about the poor perforCanfor Cautious with Restarts natural materials likelihood of a public offering. Lynwood, Ca., now distributes names two who sold China, Canfor won’t be restarting “turned a franchises deaf bamboo, ear”and anddemanddemanded ment today.” as wood, straw and such Despite higher U.S. lumber prices its mance of their Inalso addition to men naming Ace Ace Dreamdex FSC-certified, Classany A exteriStudents in the new program can franchises, as well as several directors four shuttered B.C. sawmills time they pay back the money it had other plant-based goods. and growing demand for its wood in ed assistance, but the corporation Hardware as a defendant, the lawsuit or fire-rated decking in Southern choose from two different options. and vice presidents of Ace. soon. advanced to them. “In many sustainable industries China, Canfor won’t be restarting its “turned a deaf ear” and demanded also names two men who sold Ace California. The first focuses management and more jobs than “We areB.C. not going to beany in atime rush to theytoday four shuttered sawmills pay there backarethe money it graduhad franchises, as well on as several directors marketing skills, while the second ates to fill them, even during the and vice presidents of Ace. start upSDS a mill because theindefinitely market has soon. Lumber Co. cut advanced to them. focuses on science and engineering. recession,” said Thomas McLain, spiked as it has right now,” said presi“We are not going to be in a rush to production by 25% at its plywood divi“We would has have to startdent up sion aJim mill because the market inShepard. Bingen, Wa. seeassustainable in presithe marspiked it has rightrecovery now,” said we“We would entertain Southwest Forest Products’ dentkets Jim before Shepard. would have to any shuttered mill in in Ash Fork, Az., is up ofrecovery anysite of our operations.” see starting sustainable the marlikely reverting to shipments residential zoning. Canfor’s toany China kets before we 2009 would entertain Phoenix, Az.-based Southwest were up 40% over 2008, and now repstarting up of any of our operations.” closed the facility years after filresent 7-8% of thetwocompany’s total Canfor’s 2009 shipments to ago China ing bankruptcy in September 2009. lumber production. “The market were up 40% over 2008, and now rep- in China is now starting to recognize the resent 7-8% of the company’s total EcoBlu Products , Vista, Ca., is advantageous qualities of SFP lumlumber production. “The market in expanding capacity at its main producber,” said Shepard. China istion now starting to recognize facility in Colton, Ca., addingthe a secadvantageous qualities of SFP lumond shift to double production. Store Owners Sue Ace ber,”Bitter said Shepard. Investors who own Falls, threeOr., Ace Jeld-Wen , Klamath is Geo. M. Huff Lumber Company shutting Owners down its Hartselle, Al., door Hardware “Vision 21” Ace stores in Bitter Store Sue hasGeo. teamed up with Forest M. Huff Lumber Co.Grove has planthave bywho the end the year, laying the off Illinois filed aoflawsuit against Investors own three Ace Geo. M. Huff Lumber Company Lumber to become the exclusive teamed up with Forest Grove 51. co-op, claiming larger in stores has teamed up with Forest Grove Hardware “Visionthat 21”thestores Southern Lumber toCalifornia become thestocking exclusive failed to produce promised profits. Illinois have filed a lawsuit against the Lumber to become the exclusive CertainTeed won a 2010 CSX distributor of Tru-Dry Timbers. co-op, Stores claiming that theinlarger stores are included the lawsuit Southern California stocking Environmental Award for reducing carSouthern California stocking failed to produce promised profits. Silvis Ace Hardware, Silvis; Hilltop distributor of Tru-Dry Timbers. bon emissions for shipments from four Stores included in Rock the lawsuit are and distributor of Tru-Dry Timbers. Ace Hardware, Island, plants, including Cody, Wy. All FGL Tru-Dry timbers are Silvis Ace Hardware, Silvis; Hilltop All Tru-Dry timbers Ace Hardware, Rock Island, and driedFGL in “HeatWave USA’sare RFV” OrePac Building Products, All FGL Tru-Dry timbers are dried in “HeatWave USA’s RFV” Wilsonville, Or., is now distributing kilns, which use clean, renewable kilns, which use clean, renewable dried in “HeatWave RFV” DuPont Tyvek Fluid Applied WB energy and have USA’s zero emissions. System in Oregon and Washington. energy anduse have zerorenewable emissions. kilns, which clean, Tru-Drytimbers timbers dried comareare dried energyTru-Dry and have zero emissions. Osmose’s MicroPro technology pletely and evenly throughout so completely and evenly throughwas awarded additional Green Building Tru-Dry timbers are dried comyousowon’t experience the sticky out you won’t experience the Points from the NAHB Research pletely and evenly throughout so problems oftenoften encountered Center, under the National Green sticky problems encoun- with you won’t experience the sticky Village AceStandard Hardware, Champaign. Building program, reportedly beams that are not to the core. tered with beams thatdried are not The making first two stores opened in 2006 problems often encountered with MicroPro-treated products eligidried to the core. Combine selection Village Ace Champaign. and closed earlier thisbuilding year. The ble for Hardware, more green pointsphone than beams that are notour dried to theof core. Combine our selection of with our Thewas firstany two stores opened in 2006 Douglas fir timbers along recently disconnected at the other treated wood. Combine our selection of and Champaign closed earlierstore, this year. Theopened phone in Douglas fir timbers along which skilled milling staff andwith you’ve got Douglas fir timbers along with our was2007. recently disconnected Hawaiian Legacyat the Hardour skilled milling staff and one of the best resources in , Honolulu, Hi.,opened hasthat translated woods Champaign store, which inAce The plaintiffs allege skilled milling staff and you’ve got you’ve got one of the best Southern California. its websiteCorp., into Mandarin better serve 2007. Hardware Oak toBrook, Il., oneresources of the best in in resources Southern California. Chinese clients. The plaintiffs that Ace induced them to allege invest millions of dolSouthern California. Hardware Corp., land Oakand Brook, Il., and lars to purchase construct Relaunched websites: , at induced them tonew invest millionsEnduris of dol-were stock the stores—which www.enduris.com, and American lars designed to purchase and construct and to land compete larger home , atwith www.awc.org and Wood stock the newCouncil stores—which were improvement stores such as Home HUFF COMPANY woodaware.info. HUFFLUMBER LUMBER COMPANY designed compete and withLowe’s. larger home Depot,toMenards, SANTA FE SPRINGS, CALIFORNIA SANTA FE SPRINGS, CALIFORNIA improvement stores such as Home According to the lawsuit, Ace Anniversaries: Southwall 800-347-4833 HUFF LUMBER COMPANY 800-347-4833 Depot, Menards, Lowe’s. , Palo Alto,and Ca.,proven 30th. Technologies promised thatand it had tested SANTA FE SPRINGS, CALIFORNIA According to the lawsuit, Ace the concept and the new stores would 800-347-4833 promised that it had tested and proven Building-Products.com November 2010 The Merchant Magazine 25 the concept and the new stores would

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March 2010 The Merchant Magazine

Dealer supplies doubly green project

M ARIN C OUNTY , Ca., Fairfax Lumber & Hardware is well known as the area’s source for a full range of green building products. So when a local nonprofit association decided to renovate a new property, their contractor knew just where to go. Terry Nordbye, a certified green builder from nearby Inverness, Ca., has been a Fairfax customer for some time. He’s also a trustee on the board of The Community Land Trust Association of West Marin (CLAM), which was founded in 2001 to create affordable and environmentally friendly housing. Once the project got the green light, he called manager Charlie Cain for an estimate. “Fairfax is a small yard, but they are very interested in green building and energy efficiency,” said Nordbye. “They are doing things that no one else is doing, and they wanted to support the project any way they could.” What made the project special is that the 850-sq. ft., two-bedroom house on the property was renovated using “Passive House” technology. A smaller house on the same property was not viable, so it was torn down and a new 750-sq. ft., one-bedroom home was built to the same high stan-

dards. For both structures, Fairfax supplied FSC-certified framing and sheathing, Mythic Zero-VOC paints, and special energy-conserving Serious Windows. “What’s so significant about this house is that it’s based on green building, but it’s also an affordable home,” said Rae Levine, who was CLAM’s director when the renovation of the larger home was completed last fall. “This shows that energy conservation can be available to anyone.” Practitioners say that Passive House technology—which is based on a nearly airtight shell and a filtered ventilation system—goes beyond “green” to achieve amazing energy savings without a furnace or air conditioner. Typically, they use 20% or less of the energy used by new homes. “In a normal house, up to half of all energy loss is due to leakage,” said Graham Irwin, a certified Passive House consultant based in Fairfax, Ca. The concept was pioneered in Germany in the 1990s, but has since spread around the world. “We married the two—Passive House and green building—because we wanted the best of both,” said

Photos by James Bill, Zero Impact Architecture, San Anselmo, Ca.

RENOVATION project incorporated both green building standards and Passive House technology.

The Merchant Magazine November 2010

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James Bill, Zero Impact Architecture, San Anselmo, Ca., who designed the new structure. “This house exceeds LEED and Build-It Green requirements, and met the super-low energy goal.” Nordbye, a builder for 30 years, admitted that both structures are unlike any projects he’s been involved with. “I’m a convert,” he said. “These homes are incredibly even-tempered, with minimal fluctuations. We turned Hummers into Priuses.” Back at Fairfax, Charlie Cain is preparing a bid for another Passive House project, in Portola Valley, Ca. “Wouldn’t it be great to live in a home that doesn’t need air conditioning or forced-air heating?” he asked. “These homes maintain a comfortable indoor temperature 24/7, all year long.”

Kamiah Mill Back in Action

Blue North Forest Products has acquired and restarted the former Three Rivers Timber sawmill and planer mill in Kamiah, Id. Michael Burns, who also operates Blue North Fisheries in the Seattle area, paid $2.6 million for the operations in June. A depressed lumber market had forced the mill into receivership 18 months earlier. The sawmill initially restarted with 35 employees, with an additional 25 workers expected to be added as operations ramped up. Since the summer, the mill has been stockpiling timber from public and private landowners, with plans to produce primarily dimensional lumber. Three Rivers had purchased the mill from Weyerhaeuser in 1996, and before that it was owned by Potlatch.

Cal Redwood Restarting Chip Export Facility

The California Redwood Co., Arcata, Ca., plans to start up a longshuttered wood chip export facility in Fairhaven, Ca., to sell its sawmill byproduct overseas now that the company’s Samoa pulp mill has permanently closed. “We’ll be swimming in chips” when the lumber market improves, said v.p. Carl Schoenhofer. He said that the facility will broaden the company’s horizons and give it more control over how its chips are sold to the Asian market. California Redwood has applied for Building-Products.com

SERIOUS WINDOWS and special insulation help conserve energy in a Passive House in Northern California.

state permits so it can make necessary repairs at the facility, which can accommodate 700-ft.-long ships that can carry up to 50,000 tons. Schoenhofer said that repairs could be completed in six to nine months.

Idahoʼs Lloyd Lumber Grows

Lloyd Lumber, Nampa, Id., closed its old, downtown location in early October and will re-open in a larger facility next to its current warehouse later this year or early in the next. “Right now, our functions are divided into two locations and sometimes it is inconvenient for our customers,” said owner and manager Bob Jacobsen. “The new location will have enough room to accommodate a larger and better selection of materials and services than ever before”—including a custom mill shop for producing doors and millwork, and a new kitchen and bath showroom.

Car Thief Caught at Depot

Authorities think they may have cracked a notorious auto theft ring after arresting a 24-year-old man for shoplifting at a Home Depot near Sacramento, Ca. The suspect, Brandon Holm, was wanted for numerous car thefts in the area. When he was arrested at the home center, he allegedly had 10 shaved car keys in his possession. Holm was charged with burglary, receiving stolen property, and stealing vehicles. Two 22-year-old accomplices were arrested and charged with burglary and receiving stolen property. November 2010 The Merchant Magazine

Once-Robust Remodeling Stabilizes

Apprehensive over the economy, homeowners continue to scale back on remodeling projects, according to a new report by Remodelormove.com. Results show that after a year of steady declines in 2009, the interest in remodeling stabilized in 2010. However, the size and scope of the remodeling projects are much smaller when compared to 2007/2008. For instance, small bathroom additions are the most popular. However, for those still planning to add a bathroom, the average size has decreased

from more than 70 sq. ft. in 2008 to just 60 sq. ft. in 2010. Beyond the bathroom, additional signs point to changes in the home improvement industry. They include: • The average number of rooms that homeowners plan to remodel fell from 3.7 in 2007 to 2.7 in 2010. • Home equity increases in 2006 and 2007 encouraged spending, but now as equity shrinks, homeowners are scaling down their projects. • In the 2008 report, homeowners stated that their homes were worth an

average of $390,000, with equity of $155,000. Today, the average home value is just $289,000, with equity at $110,000. About 85% said cost is the biggest barrier to remodeling. However, while the scale and number of remodels is down, the interest from homeowners who are in a position to remodel is strong, and their taste for higher-end designs and expensive materials remains. More than 12% reported that they plan to use expensive materials in their remodel; almost 50% reported that they are excited to start their remodeling project; and 84% plan to start in the next 12 months.

Coloradoʼs Intermountain Battling Through Bankruptcy

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Intermountain Resources, Montrose, Co., ran at full capacity all summer, despite being placed in receivership in May. “We have been able to acquire logs and convert them to lumber at a modest profit,” said Pat Donovan, a principal at Cordes & Co., which is overseeing the receivership and keeping the mill afloat. “We are still dealing with the economic reality with the slowdown in the housing market, decreased demand for framing lumber, and a decrease in prices,” he said. According to Donovan, most of the timber processed at the mill comes from loggers who contract with the Forest Service to remove beetle-killed trees. He said that the company cannot honor its own contracts with the Forest Service without losing money. “The majority of those contracts can’t be performed because the price of raw materials, the logs, is more than what the mill could afford to pay and convert to lumber and still make a profit,” said Donovan. “The Forest Service continues to send demands for payment under those contracts, which the mill is not going to pay.” Intermountain is also facing between 200 and 300 unsecured creditors who have not been paid. Donovan said that the best way to keep the mill alive in the future is to find a new owner. “The court has charged us with preserving and protecting assets, and hopefully we can find a buyer for those assets at a number that we can repay the debts that have been incurred by Intermountain,” he said.

Building-Products.com

OVER THE Counter By Mike Dandridge

10 resolutions to power up counter sales in 2011

T ’ S THAT TIME OF YEAR again—the time for strategic reflection and planning for the year ahead. A new year can be a launching pad for boosting your revenues to new heights or it can be a ceiling defined by last year’s plan. End-of-year is the perfect time to reflect on what the last 12 months taught you and to plan for change and growth in the year ahead. Jumpstart your strategic planning with the following 10 resolutions guaranteed to power up your counter sales for 2011.

1. Open early. If customers are standing outside the door before your posted opening hours, let them in. Think of it as money scratching to get inside your store. Few things are as aggravating to a customer as seeing store workers through a locked glass door. Sure there are exceptions, such as counting cash or administering CPR, but whenever possible make a point of opening your doors

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November 2010 The Merchant Magazine

before your competitors open theirs. There’s a corollary to this one: Close late.

2. Greet your customers. Seems simple, but most often neglected. Acknowledge customers as soon as they cross the threshold, even if you’re already waiting on someone. Sam Walton thought it important enough to place a greeter in each one of his stores. Obviously, most distributors don’t have a budget for professional greeters, so make it everyone’s job. Make it a policy that any employee in

the counter area should greet customers and ask if someone is helping them. Even if an employee isn’t trained for counter sales, he or she can still welcome and assure the customer that help is on the way.

3. Educate yourself. In spite of your years of experience or expertise, there are still discoveries to be made in this industry. Don’t wait for “the company” or your boss to assign training. Show initiative and sign up yourself. Only companies with a trainingbased culture will deliver the level of

competence required of savvy customers. The constant learners of today are the profit earners of tomorrow.

4. Know thy product. Selling is easier when you know what you’re talking about. And customers love knowledgeable salespeople who respond quickly to their needs. They’re magnetically drawn to efficiency. Learn about new products before the product launch. Ask your reps about available selling resources and aids for their product offerings.

5. Upgrade signage. Signs deliver a message about your product or your company. Overhead signs are useful for showing customers where products are located. Remove any faded, torn, or out-of-date posters. If you have handwritten signs, get rid of them. They look sloppy. Replace with professionally printed ones or print new ones off of your printer. Rotate or replace product-marketing posters two to three times per year. 6 . Give a boost to displays. Strategies and tactics for displaying merchandise can promote rapid product sales and growth. Adequate product supply, knowledge of customer preferences, and appropriate marketing mix are key elements in boosting counter sales. If this is outside your expertise or you simply don’t have the time, hire an expert. Yes. It’s that important. 7. Do the light thing. Lighting is a major element in creating an atmosphere of persuasion. Look up. Scan for black shadows and replace all burned out lamps. Look at the wall displays from left to right, as you would read a book. Watch for poorly lit, empty or blank spaces. Use track lighting or wall washers to fill in or highlight certain product displays.

8 . Divide and conquer. Assign specific areas for individuals to monitor and keep merchandised. Keep in mind that creating attractive merchandising displays isn’t a natural trait in most people. It requires instruction. Don’t just tell someone, “Keep this display full.” Show them. Put it in writing. Design and follow a plan-ogram.

9 . Walkin’ the floor. Walk in through the customer entrance. Stop. 30

The Merchant Magazine November 2010

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Consider how it would appear through your customer’s eyes. Take it all in. Look for clutter, empty shelves and pegs, and anything out of place. Turn to your right and resume walking. Arrange displays in a way that creates a logical traffic flow through your store. This will save time and ensure the safety of browsing customers. Place the coffee maker, popcorn popper, and vending machines in strategic locations to draw customers to different parts of the showroom.

10. Post a Guarantee. A no-hassle guarantee is a powerful tool of persuasion. The guarantee needs to be posted and clearly visible to customers. It’s most effective with customers who fear parting with money or making a bad decision. In the field research has repeatedly proven that the increased sales more than offset the handful of customers who might take advantage of a generous return policy. These resolutions are simple, but they make an effective plan for improving your counter sales and in turn increasing your branch’s revenue as a whole. There is a natural rhythm to the calendar. Valuable lessons are learned from past challenges, but the beginning of a new year brings with it the power to change and grow. Mike Dandridge High Voltage Performance highvoltageperformance.com (254) 624-6299 mikedan@mac.com

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November 2010 The Merchant Magazine

KAHLE On Sales By Dave Kahle

What’s a professional salesperson?

NE OF OUR CHALLENGES as salespeople is to get our customers and potential customers to relaaaaax. Until our customers are relaxed, we might as well be trying to sell them while they’re running to catch a plane or, better yet, land a plane. Their concentration will be elsewhere. I often hear my clients lament that they wish they had a more professional sales force. That idea of a “professional sales force” gets a lot of conversation in sales management and sales executive circles. But what exactly does it mean? And why is it a good thing? Here’s one person’s opinion. First, let’s eliminate those things that don’t matter. There are a number of misconceptions about the attributes of a professional salesperson that center around the externals of a salesperson’s situation. For example, being a professional salesperson has absolutely nothing to do with the product or service the salesperson sells. I have met very professional salespeople who have sold

The Merchant Magazine November 2010

some of the strangest things imaginable. In almost every open-enrollment seminar that I present, I come across someone who sells something that I have never even heard of before. In my own experience, for example, I have sold cake mixes, men’s shoes, men’s suits and underwear, sur-

Building-Products.com

gical staplers, sophisticated amplification equipment for hearing impaired children, business opportunities, life insurance, catheters, hand soap, and, yes, even salespeople (as a sales recruiter), to name just a few. Here’s another irrelevant external issue: Being a professional salesperson has nothing to do with the folks to whom you sell. There are people in this country who sell something to every single job description and organization imaginable. Some of the customer types to whom my clients have sold include farmers, both crop growers and live stock growers; tool and die shops; tier one, two and three automotive suppliers; schools at every level; government agencies of all kinds; the military; grocery stores, restaurants, convenience stores and retailers of every kind; contractors of every ilk, including electrical, mechanical, HVAC, plumbing; builders both residential and commercial, etc. I could go on and on, but you get the picture. In each and every one of these industries, there are professional salespeople. Being a professional salesperson has nothing to do with the company for whom the sales person works. There are thousands of independent representatives in this country, for example, who work for themselves. Other sales people work for small family-held businesses, others work for large multi-nationals. Thousands sell for distributors; tens of thousands sell for retailers of every possible thing; more thousands sell for manufacturers and service providers of every type. Professional sales people are sprinkled throughout every one of these business types. Finally, being a professional salesperson has nothing to do with how long he’s been at it, his educational background, or experience level. I have encountered many salespeople who have been selling for over 20 years, for example, who don’t come close to fitting into the mold of a professional salesperson. On the other hand, last week, I met a 21-year-old, in his first sales job, who was very professional. I have met professional salespeople who had only a high school degree, and many with college and post-graduate degrees. None of these things, which are external to the salesperson’s character, matter. Now that we’ve eliminated the things that a professional salesperson Building-Products.com

is not, let’s look at the other side and examine the marks of a profession salesperson. “Professional” is the name we choose to put on a certain set of character traits and attitudes that reside inside a sales person.

1. A professional salesperson is proud to be a salesperson. Can you imagine a doctor who is embarrassed to admit that he is a doctor? Or a nurse who covers up that fact? A teacher who doesn’t want anyone to know what he does for a living? A firefighter ashamed to admit it? A lawyer who pretends to be

somebody else? (Well, okay, maybe on this one.) You see, in every profession, the members of that profession are proud to be a part of it. Amazingly, that is not the case with the majority of salespeople. They don’t like to think of themselves as salespeople. Instead, they make up other terms. They are account executives, product specialists, customer liaison agents, mobile customer service representatives, to name a few. On the other hand, the professionals understand the challenging nature of what they do for a living and the

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importance it has for their families, their companies, and the economy as a whole. The work of the average sales person in this nation supports four other families within the organization. They are proud of that and proud to be salespeople. They don’t hide it or apologize for it, they revel in it.

2. A professional salesperson likes his job. Not only are they proud to be salespeople, but they like being salespeople. They like the freedom and autonomy they have on the job, and

they relish the responsibility that comes with that. They thrive on the customer contact and are energized by the constant challenge. They get a high from closing a big or difficult sale, and aren’t afraid to celebrate those successes. That doesn’t mean that they relish every aspect of every job. I’ve had a sales manager, for example, that I was embarrassed to introduce to a customer. I’ve sold products that didn’t excite me, and worked for companies whose management styles and cultures left me looking for something else. In all of these negative situa-

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tions, though, I never disliked what I did.

3. A professional salesperson believes he is a professional. He doesn’t see what he does for a living as just a job. He understands that it is one of the most fundamental and important functions, not only in his company, but in the economy in general. He realizes that he touches and influences hundreds, if not thousands, of people, that his work supports and enables a number of other families, and that he represents much of the visible face of the company that employs them. These are serious responsibilities, and the professional salesperson understands that to do this well, he must see himself as a professional.

4. A professional salesperson continually invests in his own development. Over the 20-plus years that I have been training salespeople, educating sales managers, and working to transform sales organizations, I have stumbled upon an observation that bothers me every time I communicate it. It’s this: Out of a group of any 20 salespeople, only one has invested $25 of his own money on his own development and improvement in the past 12 months. The non-professional salespeople don’t think it’s their responsibility to improve themselves. They won’t buy a book or attend a seminar without their bosses paying for it and requiring it of them. To them, it’s just a job. The professionals invest in themselves. Since they see themselves as professionals, they understand that they must constantly and continually “sharpen the saw.” They buy the books, get the newsletters, attend the conferences, listen to the podcasts, etc. Can you imagine your CPA, as he delivers your tax return, mentioning that he hasn’t spent any time updating himself in years? Or the doctor, as he goes into surgery to work on your spouse or child, off-handedly tossing off the fact that it’s been years since he bothered to take a class or upgrade his skills. These seem like silly examples. But most salespeople (95%) don’t bother to take the initiative to upgrade their skills and develop their competencies. Only the professionals do. Building-Products.com

5. A professional salesperson always acts with the best interests of his company and his customer above his own. There is, resident in the psyche of every professional salesperson, an obligation to “serve.” Ultimately, the professional salesperson does serve two masters: his customers and his company. A professional understands that the sales he makes are the tangible expressions of win/win solutions for the customer as well as profitable transactions for his company. The professional will not “push” an inappropriate solution onto a customer, just to make a sale. He’s in it for the long term, understanding that his reputation as a professional is worth far more than any individual deal. “Integrity” is the overriding personality trait, and adherence to a strict code of ethics is the specific expression. The unprofessional salesperson sees his company’s management as, under the worst scenario, the enemy with whom to contend, and under the best, as a somewhat less than competent irritant to be tolerated. The professional understands that he is an employee of the company, and has a responsibility to nurture the company’s interests. He is mindful of his need to provide a return on the company’s investment in him, and seeks continually to increase his profitability to his employer.

6. A professional salesperson recognizes a responsibility that is larger than just the job. A professional salesperson, by virtue of the demands of his job, naturally develops exceptional “people” skills. He knows how to get things done, and how to work effectively with a variety of people. These are skills that are helpful in his communities as well as his position. Since he’s a professional, he invests some of his time in the larger community, serving on boards and task forces, coaching the elementary-age kids, adding his input to PTO meetings, etc. He gives a portion of his income to those less fortunate than himself. He understands that he is one of the world’s more fortunate individuals and accepts the responsibility to pay it forward. I once heard this expression: “Service is the rent you pay for the position you occupy in society.” Professional salespeople occupy a favored position and accept their responsibility to pay the rent. A professional sales force is an incredibly valuable asset to any organization, and the acquisition and development of a professional sales force is one of a business’s greatest accomplishments.

– Dave Kahle has trained tens of thousands of distributor and B-2-B sales people and sales managers, authored eight books, and presented in 47 states and seven countries. Reach him at (800) 331-1287 or via www.davekahle.com.

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November 2010 The Merchant Magazine

FAMILY Business By Amy Schuman and Christopher Eckrich

Accountability builds trust in family governance

show poor accountability on family commitments, the consequence is often an erosion of trust and respect in the family. We often see the following kinds of accountability-related issues coming up in the families we work with: “I know I was supposed to get the newsletter out, but I ran out of time. I’ll have it ready for next time.” “Our deadline for setting next summer’s family meeting date has come HEN FAMILY MEMBERS

and gone, but family members aren’t returning my phone calls and I’m not going to reserve the hotel until I know people are available.” “We had lined up the director of marketing to make a presentation to the family over dinner last month. Only two people called to RSVP so we had to cancel. It was embarrassing.” Most readers understand the importance of family governance. They know that family councils, fami-

The Merchant Magazine November 2010

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ly meetings, family policies, and regular communication are keys to success for business-owning families. However, even with the best of intentions these efforts can rapidly lose momentum and relevance due to lack of accountability among family members for their assignments in this arena. It can be particularly hard for families to adhere to systems of accountability in what is generally a volunteer role. When choosing between an income-producing activity, an enjoyable social activity, or photocopying and sending out the minutes from the last family meeting, it is easy to see why the last is often delayed in favor of the others. Over time, if family members repeatedly fall short on completing their assignments, the entire family governance process can run out of steam and stall. Important tasks (estate planning, for example, or next-generation education) that aren’t completed or are delayed can create significant problems for the entire family business system down the road. Families that take the time to clarify their values, purpose, and vision know that making and fulfilling commitments regarding that vision creates a strong foundation of trust among family members. The strongest families we know feel accountable, both as individuals and as a group, to live and demonstrate their shared vision, every day, in every way. In addition, trust among all key stakeholders in a family business is a major competitive advantage for the business, and contributes to a more enjoyable family life. Family members who wish to solidify that trust will do well to follow the lessons of accountability brought to us from the business world. Setting and meeting deadlines is critical to fostering a sense of shared concern and commitment. Clearly identifying the roles and responsibilities of volunteers for the coming time period (quarter, month, year) is crucial. Family members who have accepted responsibilities will contribute significantly to the level of trust in a family by doing their very best to achieve their tasks according to pre-established expectations. Sometimes accountability problems arise because the family—or a part of the family— takes on too much at once. When the work of the family becomes so burdensome as to encroach on individual family members’ ability to hold outBuilding-Products.com

side jobs and meet their other responsibilities, it is worthwhile to create more realistic roles, responsibilities, and requirements for key family roles. In larger families where there is a lot to get done, families may use executive assistants and other types of support help make the tasks more reasonable. Some may need to create a parttime paid family position in order to more appropriately address the workload. No matter the level of work required to manage the family governance roles in your family, clarity in terms of expectations is a critical first step. In addition, most families would

do well to review roles and expectations at least annually to determine if adjustments need to be made for optimal functioning going forward. The following is a list comprising basic steps that all families can use to foster accountability: If you are at the start-up phase of setting up structures and policies for family governance and oversight, ensure that all family members are involved in brainstorming. The more people are involved in the original development of these structures, the more they will buy in to the gover(Please turn to next page)

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November 2010 The Merchant Magazine

Family Business: Accountability Builds Trust (Continued from previous page)

nance process—which should increase commitment and accountability. Note that this initial set up can be hard work. Allow yourself time to go through multiple drafts to get to a structure that feels comfortable for your entire family. Once the basic structures are in place, consider what jobs or tasks need to get done on an ongoing basis in order to meet goals of family unity

and oversight. (For example, do we meet quarterly or annually? Do we have a family newsletter or website? Do we plan an annual family trip? What learning do we want to accomplish this year?) Ensure that there is clarity on the amount of work involved for coordinating these efforts, and that all in the family are clear on expectations and deliverables. Even more important, make sure that everyone knows the consequences for not following through. Solicit volunteers to oversee specific tasks. Ensure that volunteers

have access to needed resources to accomplish work and that all are clear on deadlines. Ensure that the family work is well distributed; don’t overload one person with these responsibilities. Regularly recognize the contributions of family members involved in getting the work done. While it is important that there be consequences to those who are not accountable (e.g., loss of role), it is just as important to reinforce the positive and find ways to publicly recognize the tremendous efforts of those who do this work well. Respect is a highly valuable commodity that is earned through carrying out roles and responsibilities effectively. When a family member commits to carrying out duties on behalf of the family, that individual is promising the family that he or she will do his or her very best to fulfill the responsibilities of that role. The failure to successfully carry out that role damages the respect of the family for that individual. We repeatedly hear family members, especially next-generation members, express frustration that their voices are not being heard by the family. The reality is that in family business matters, we tend to respect those who have earned it through their behaviors and their successful accomplishment of the roles they take on. When a person accepts a role in the family council or as part of a family meeting, whether it’s a high-profile meeting with the directors or the grunt work of churning out family meeting minutes, they are placing a value on the family. The act of volunteering conveys, “I wish to participate in this family’s vision.” When the same family member doesn’t follow through with his or her

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tasks, that individual sends a message to the rest of the family that he or she does not care. Sadly, this is true even if there are perfectly legitimate reasons for the family newsletter not being published, the minutes not being sent out, or the agenda to the upcoming family meeting not being mailed in advance. This erosion of respect not only causes emotional pain and frustration in families, but it also prompts the family to question the level of commitment that family members have to each other. An unwillingness or inability to complete a family task not only causes a reduction in respect and a corresponding reduction in the trust that the family gives that individual, but it also reduces the value of that person’s voice in family matters. The reality is that we do not listen to people whom we do not trust. When a person fulfills their

responsibilities at work, they demonstrate their commitment to the organization and all that it stands for. This is true in a family situation as well. When family members complete the work of the family as they said they would, they demonstrate their commitment to the family and the family’s values and purposes. This is one of the best ways we know for families to build solid trust and respect for years to come.

– Amy M. Schuman and Christopher Eckrich are principals of the Family Business Consulting Group, Marietta, Ga., and can be reached at schuman@efamilybusiness.com and eckrich@efamilybusiness.com; (800) 5510633. Reprinted with permission from The Family Business Advisor, a copyrighted publication of Family Enterprise Publishers. No portion of this article may be reproduced without permission of Family Enterprise Publishers.

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New Owner Combines Utah Hardscapes Companies

Summit Materials, Washington, D.C., has purchased three concrete/asphalt-related businesses, all based in Salt Lake City, Ut.— Altaview Concrete, Kilgore Paving & Maintenance, and Harper Companies’ ready-mix concrete and construction assets The firms will combine into Harper-Kilgore LLC, headed by president Jason Kilgore, former owner of Kilgore Paving. Scott Reynolds, former Altaview owner, is now c.e.o. of Altaview Concrete and overseeing the former Harper ready-mix concrete operations.

lower price point—was introduced earlier this year, after GAF discontinued its CrossTimbers composite line.

Duckback Unfurls New Look

For the first time in 20 years, Duckback Products, Chico, Ca., is refreshing the image of its company and top coatings brands, Superdeck and Mason’s Select. The makeover is driven by a new theme (“Live the Outdoors!”) designed to fortify Duckback’s posi-

GAF Rebrands CorrectDeck

GAF Decking Systems, Wayne, N.J., has consolidated its decking and railing products under the DuraLife brand. CorrectDeck CX has been renamed the DuraLife Siesta Collection to stress its ultra-low maintenance composition, “allowing homeowners time to take a ‘siesta’ on their deck rather than worrying about maintaining.” CorrectDock is now known as the DuraLife Dock Collection, and CorrectPorch as the DuraLife Porch Collection. The GAF Decking System lineup also includes the DuraLife RailWays universal railing system and DuraLife Natural Grain Collection. The latter— natural grain composite decking at a

The Merchant Magazine November 2010

tion with current users, while attracting new customers with a fresh, vibrant appearance alongside a message that focuses not only on the product itself, but the product in its environment. “The rebranding is a result of an aggressive re-evaluation on how we reach consumers in various markets, and we are very proud of the end product,” said Steve McGarr, v.p. of sales & marketing.

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IN Memoriam

Lyle Schafer, 88, owner of Ace Hardware, Napa, Ca., died August 21 in Napa. He previously managed Santa Cruz Lumber, Santa Cruz, Ca., and Minton’s Lumber & Supply, Mountain View, Ca., where he was honored as National Brand Names Retailer of the Year. He bought his own Ace store in 1976 and was later named Ace Hardware Man of the Year. He was a past president of both the California Pacific Southwest Hardware Association and the Lumber Merchant’s Association of Northern California (now known as the Lumber Association of California & Nevada).

Michael Fred “Mike” Beymer, 65, longtime Northwest lumber trader, died Oct. 4 in Portland, Or.

He was the state calf roping champion in his senior year of high school, and attended Oregon State University on a basketball scholarship. He began his 45-year lumber career in college and continued when he moved to Portland in 1965 and got a job as a mailroom clerk for GeorgiaPacific. He was soon promoted to sales, then worked for Herron Forest Products, American International Forest Products, owned and operated Summit Creek Forest Products, then rejoined AIFP. He finished his career with Rayonier International Wood Products, Idaho Pacific, and Shamrock Trading. Kenneth G. Steving, 69, co-owner of New Home Building Supply, Sacramento, Ca., died of cancer Sept. 24. He earned an associate degree at Sacramento City College and had

planned to study chemistry at U.C. Berkeley, but instead devoted himself to the family business. Mr. Steving spent 30 years as manager of New Home Building Supply, which he owned and ran with his brother, Wayne. They took over from their father, Alfred, who founded the company in 1949.

Emma Katherine Proctor, 89, former co-owner of Paradox Lumber, Paradox, Co., died Oct. 6 in Paradox. She owned and operated the business with her husband, Robert, who died in 1998. Joseph A. “Joe” Truax, 81, longtime employee of Edward Hines Lumber Co., Seneca, Or., died Oct. 7 in Walla Walla, Wa. He began his career at Hines Lumber in 1947 at age 18, feeding the jaws of a rock crusher.

Cal Coast Wholesale Lumber, Inc. Pressure Treated Forest Products Alkaline Copper Quat (ACQ) Custom Treating Selected Inventory Available

P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482 Phone 707-468-0141 • Fax 707-468-0660 Gene Pietila

Sales for Coast Wood Preserving

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November 2010 The Merchant Magazine

NEW Products

A Better Nose for Driving

Preserves Jamb

STRONGTIE.COM

ULTRAJAMB.COM

The Quik Drive PRO300S auto-feed driver from Simpson StrongTie includes a new decking nose clip. The new accessory centers screws on the deck joist and places each screw the same distance from the edge of the boardâ€”for a clean, finished appearance. Collated screw strips are used to eliminate fastener waste. (800) 999-5099

Concrete Protection

Quikrete epoxy coatings from PlastiKote help extend the life of concrete floors. Just one coat of the semi- and high-gloss versions offers protection against hot tires, gasoline, oil, scuffs, and general wear and tear. Tan, light, gray, and 40 custom tintable colors are available.

PLASTIKOTE.COM (866) 222-8714

The Merchant Magazine November 2010

The Ultra Jamb Reinforcer helps protect screen doors and doorjambs from heavy use and wind damage. A steel plate reinforces the area where the door bracket attaches to the jamb, preventing the wood from splitting or cracking. It is compatible with all models and reportedly installs in minutes. (800) 356-0524

PVC Helpers

Kleer Lumber now offers a complete line of adhesives and sealants specially formulated for cellular PVC building products. The collection includes two-part adhesives, fastcuring cement, structural sealant, two-part epoxy putty, applicator guns, and mixer tips.

KLEERLUMBER.COM (866) 553-3770

Building-Products.com

Prestigious Decking

Guardian Building Products now offers PVC decking. GuarDeck Prestige and Elite installs with standard power and hand tools, can be cleaned with mild soap and water, and resists moisture, stains, and fading.

GUARDECK.COM (800) 569-4262

Building-Products.com

Special Curves

Curved polyurethane corners for use with drywall are from Fulcrum Composites. Options include 90 curves for internal and external corners, and 180 bullnose corners for finishing end and half walls. Both 8’ and 10’ lengths are available, with or without tapered edges.

FULCRUMCOMPOSITES.COM (989) 636-1025

Wood Protection

Cutek coatings and cleaning products are now distributed by Sundeck Americas. Manufactured in Australia and New Zealand, the products protect a range of wood products— including bamboo. They reportedly repel water, offer mold and fungal resistance, and increase dimensional stability.

SUNDECKAMERICAS.COM (586) 786-0140

November 2010 The Merchant Magazine

Decking From Carpeting

Nylodeck composite deck boards are manufactured from 100% recycled carpet fibers and VOC-free resin. Each 5/4” board has a three-dimensional, UV-resistant, embossed surface. Lengths of 8’ to 24” are available, in light caramel, cocoa, and gray. The decking can be installed with most traditional fastening systems, and is resistant to moisture, mold, and termites.

Versatile Hidden Fasteners

DeckEase hidden deck fasteners can be used with both wood and composite decking. The clips fit grooved boards 3/4” to 1-1/2” thick, with 1/8” to 1/16” groove widths, regardless of groove location. One pail includes 375 clips and covers 200 sq. ft.

THUNDERBOLT WOOD TREATING

NYLOBOARD.COM (877) 695-6909

DECKEASE.COM (888) 578-3273

…Quality Wood Treating Services Since 1977 “We Treat Wood Right”…

Treating Services Only (TSO)

www.thunderboltwoodtreating.com Central California Location 3400 Patterson Rd., Riverbank, Ca. 95367 Sacramento, CA Bob Palacioz, Sales/Marketing Mgr. (916) 402-3248 • Fax (916) 339-2477 bob@thunderboltwoodtreating.com

Marine & I ndustrial Sales Miguel Gutierrez (209) 747-7773 • Fax (209) 451-0425 miguel@thunderboltwoodtreating.com

The Merchant Magazine November 2010

ACQ CCA BORATES D-BLAZE® ACZA (CHEMONITE®))

0000

Heat Treating Drying Services (KD, KDAT) Marine Piling Staining Service Rail Siding (BNSF) Coating Serv ice: MFI-SLO8 Marine Grade Spray Polyurea Coating

Building-Products.com

Glulam With Power

Anthony Forest Product’s new 1.9E Power Rated Glulam can be substituted for LVL in most applications. The product has a balanced layup with no camber at 3-1/2” and 5-1/2” widths at IJC and lumber depths. It is also certified green by SFI and NAHB’s Green Building Program.

ANTHONY FOREST PRODUCTS.COM (800) 221-2326

Building-Products.com

Composite Railing

Xpanse Premier and Select composite railings from Barrette Outdoor Living offer the look of hand-painted wood. It comes in two colors, with the choice of square, round, or colonial balusters. Premier is made with a water-resistant core of engineered polymer, while Select is made of high-performance vinyl reinforced with aluminum.

XPANSEGREATEROUTDOORS.COM (800) 336-2383

November 2010 The Merchant Magazine

PRODUCT Spotlight Radiant Barrier Insulation

ID’ing top performers in radiant barrier insulation

ADIANT BARRIER insulation can save homeowners big money—if they choose the best products for the right job. Although installing radiant barriers in attics can lower utility bills by as much as 17%, not all products are cost effective or suited for such applications. Some use non-code materials, according to Luke Rogers, technical director for Innovative Insulation, Arlington, Tx. “Product safety testing standards used by ASTM International, a global standards development organization, should guide consumer buying decisions,” Rogers advises. But first, buyers and sellers must become familiar with how different types of insulation work. Products such as batts, foam and blown-in fiberglass absorb heat, while radiant barrier materials reflect it. Heatabsorbing products typically are thick,

while reflective products are paperthin. Innovative Insulation offers a fivepoint checklist to help dealers steer consumers to top-performing products:

1. Know the Fire Rating. Rogers says that, for the best performance, look for products certified to ATSM Standards E84 and E2599. No radiant barrier product with aluminum foil on both sides passed these ASTM fire spreading tests, while metalized plastic film products did. 2.

Not All Perforations Are Created Equal. Radiant barriers must be able to “breathe” to let moisture pass through. Not all products do this well. Rogers suggests looking for products certified to ASTM C1313, which requires a minimum rating of 5 perms for any material intended to

transmit moisture.

3 . Provide Fact Sheets. Some companies sell products not made to ASTM standards, and which are not safety tested. The U.S. Federal Trade Commission requires anyone selling insulation products to the public to provide fact sheets that spell out insulation values.

4 . Reflective Insulation Is Not for Attics. Reflective insulation has a thin layer—about a quarter of an inch—of foam, bubble-pack, or fiberglass sandwiched between two layers of reflective material. It is for applications such as walls, floors and basements where some R-value is needed, but space is limited. It is more expensive than radiant barrier film and adds less R-value than additional blown-in or foam insulation would provide.

5 . Paint Does Not Meet the Definition. Radiant barrier materials, as defined by ASTM, must be at least 90% reflective. The Reflective Insulation Manufacturers Association says the reflectivity of “radiant barrier paints” ranges from 10% to 75%. Rogers advises to look for Energy Star insulation labels on radiant products—you won’t find them on paint. 46

The Merchant Magazine November 2010

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MANAGEMENT Tips By Marty Stanley

Transactions vs. interactions

HEN YOU TALK to people, are you focused on the transaction or your interaction? A transactional encounter is one where you’re going through the motions to get the task or the discourse done. Maybe you are texting, talking on the phone to someone else, or just dazed and confused, but the bottom line is that you’re not engaged with the other person or the process. Interaction occurs when two people are engaged in a dialogue or actively participating in the process. For example, think of the last time you went out to eat. When you ordered, was the waiter friendly, knowledgeable and quick? Did he or she show authentic interest, assistance and interaction in helping you with your order and when paying the check? That kind of interaction is so noticeably different from a typical transaction that it is now considered a fluke, instead of what customer service should be. As a consumer, it is so refreshing to be engaged in this kind of interaction and on the receiving

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end of good service! Businesses who have employees focused on the interaction also seem to have owners who clearly have a different strategy for hiring and training people than their competitors, who are focused on the transaction.

Effective Interaction Affects Outcomes

Ask yourself: What are you talking about, and are your conversations focused on the transaction or interaction? When you are talking to people, are you clear about the purpose of the conversation? Are your thoughts, words and actions aligned with that purpose and the outcomes that you hope to achieve? If you are focused on the transaction, there can be a tendency to treat the conversation in a matter-of-fact, Sgt. Friday approach: “Just the facts, Ma’am.” The conversation is like a flowchart—cover all the bases and move on to the next topic, person or activity. The implied message behind (Please turn to next page)

November 2010 The Merchant Magazine

Transaction vs. Interaction (Continued from previous page)

the message can be interpreted as “I don’t have time for you or what is important to you.” During this challenging economic time, when organizations are “doing more with less,” common after-effects include employee fatigue, increased absenteeism, low morale, and diminished productivity or quality of work. Every one of these impact the enduser or consumer of your products or services. There is a lot of talk about “employee engagement.” But are you

really walking the walk or is it really just another form of transactional communication with a fancy label? If you want to utilize real employee engagement, take a look at the quality of conversations you’re having. Are they “transactional” or are you really interacting with them?

Turning the Tide

A recent study indicated that 63% of the workforce under age 45 plans to leave their current employer when the economy improves. While it may be politically correct to say the impetus for leaving is a better opportunity for advancement or more money, the

Feature your Business Card in The Merchant Magazine Say Happy New Year & help end breast cancer Use this low-cost opportunity to deliver New Year’s greetings to your customers, friends and suppliers—and help Susan G. Komen for the Cure, which for nearly 30 years has been leading the global movement to end breast cancer. Your business card—reprinted in color and reduced slightly to 2-3/8” x 1-3/8”—will appear in a special section in the January issue of The Merchant Magazine as well as its sister magazine east of the Rockies, Building Products Digest. The cost for each ad is just $100, $25 of which is tax deductible and will be matched by us—for a total donation of $50 to Komen for the Cure.

Doing your part is easy: Just send us your business card(s) before Dec. 20, along with a check for $100 per card—or $200 per card to appear in both The Merchant and BPD—to Cutler Publishing, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660.

Questions? Call Alan at (949) 852-1990 48

The Merchant Magazine November 2010

bottom line is that most people start looking and choose to leave an organization based on perceived negative interactions with management. So how does one turn the tide from transaction to interaction? It’s all about the level of participation in that conversation. How are you participating in the conversation? How are you listening? Are you an active participant as a listener? Or are you thinking about what to say next or envisioning the other person with a big “L” on their forehead, as in “Loser…” “How many times have we heard this before?” “Here she goes again…” Good managers and leaders understand that conversations require participation. It’s more than “just the facts.” They understand that when they speak to colleagues, employees, customers or suppliers, they are conveying multiple messages:

• The content of the message: is it clear and consistent with the organization’s policies and practices? • The delivery of the message: is the delivery consistent with the organization’s core values, such as “respect,” “integrity” or “good communication.” • The quality of interaction: are you really listening? Is it participative?

If you are looking for improved employee engagement or increased customer retention, an easy and cost effective place to start is by examining your conversations. Are you talking about things that are relevant and important to the other person? Chatting about the weather or the latest sports scores are okay, but unless you are a meteorologist or sports broadcaster or coach, you’ll get more mileage with an interaction that is focused on the person, their work, or their purchase.

One Conversation at a Time

Authentic interaction is heartfelt, but not sappy, and comes from a place of caring and wanting to be of service or making a difference. It’s about leaving the other person feeling glad they had the interaction with you. Even difficult conversations can be authentic, caring and leave a person feeling respected. How do you start? One conversation at a time. Start by really listening to the conBuilding-Products.com

versations that you’re having with people. Are you approaching it like a transaction or an opportunity for authentic interaction? Do you care enough about yourself, your organization, and the people with whom you converse to choose to have authentic

interactions? If not, just know that you may be missing out on opportunities to make a difference in someone else’s life or closed to the possibility that someone might make a difference in yours. It’s just a choice. And you can

ASSOCIATION Update Lumber Association of California & Nevada honored outgoing president Laurie Vance, The Mill Yard, Arcata, Ca., and welcomed new president J.D. Saunders, Economy Lumber, Campbell, Ca., during its recent convention in San Francisco, Ca. (see photos on following two pages). Other just-installed officers are 1st v.p. Richard McArthur, Ojai Lumber, Ojai, Ca.; 2nd v.p. Augie Venezia, Fairfax Lumber & Hardware, Fairfax, Ca., and treasurer Bobby Senften, Friedman Home Improvement, Santa Rosa, Ca. Chris Freedman, Ganahl Lumber, Anaheim, Ca., is president of 2nd Growth. The board of directors now includes John Mensinger, American Lumber, Modesto, Ca.; Monika Bartko, Stock Building Supply, Los Angeles, Ca.; Vic Hausmaninger, CPA, Hausmaninger, Benoe, Lang, Alford & Gesselowitz, Irvine, Ca.; Bob Shepherd, Sierra Pacific Industries, Anderson, Ca., and Seamus O’Reilly, LP Corp., Fairfield, Ca. Ganahl’s Jim Taft received the President’s Award for his long-time contributions and involvement. Bob Maurer, Swanson Group Sales, Glendale, Or., was named Associate of the Year for his involvement over the years. The holiday party for 2nd Growth is set for Dec. 2 at the Sheraton, Cerritos, Ca.

Dec. 9 is the Colorado WOOD Council’s annual holiday celebration at Mile High Stadium, Invesco Field, Denver.

Western Building Material Association will gather Feb. 9-11 at the Tulalip Resort, Tulalip, Wa., for its annual convention. The Young Westerners Club will hold its annual meeting Feb. 10-13 at the same location.

National Lumber & Building Material Dealers Association installed Joe Collings, c.e.o., Ferguson Lumber, Rockville, In., as chairman, replacing outgoing chair

choose to change it with your next conversation.

– Marty Stanley, president of Dynamic Dialog, is an author, speaker and facilitator. Contact him at (816) 822-4047 or martystanley@alteringoutcomes.com.

Dan Fesler, Lampert Yards, St. Paul, Mn. Other new officers are chair-elect Cally Coleman Fromme, Zarsky Lumber, Victoria, Tx.; 1st vice chair Chuck Bankston, Bankston Lumber, Barnesville, Ga.; 2nd vice chair Chris Yenrick, Smith-Phillips Building Supply, Winston-Salem, N.C.; treasurer Linda Nussbaum, Kleet Lumber, Huntington, N.Y.; manufacturers & services council chair Carlos Guilherme, Weyerhaeuser, Federal Way, Wa., and federated association executives chair Chris Quinn, Kentucky Building Materials Association.

Los Angeles Hardwood Lumberman’s Club has scheduled its annual holiday party for Dec. 11 at Orange Hill Restaurant, Orange, Ca.

Mountain States Lumber & Building Material Dealers Association is staging a series of webinars— Nov. 18 covering electrical safety and Dec. 7 and Dec. 16 addressing slips, trips and falls. A workshop on blueprint reading and material take-off will be offered Dec. 8-9 at the Holiday Inn Central, Denver, Co. Casey Voorhees, executive director of the Western Building Material Association, will lead. Building-Products.com

November 2010 The Merchant Magazine

CALIFORNIA DEALERS Photos by The Merchant Magazine

LUMBER ASSOCIATION of California & Nevada converged Oct. 21-22 at the Hyatt at Fisherman’s Wharf, San Francisco, Ca., for its annual convention. [1] Chris & Laurie Vance, Todd Hopman. [2] Lisa & Barry Haugen, John & Nancy Davis. [3] Mike Carey, Ken Dunham. [4] Bryan Schuyler, Phil Brune, Seamus O’Reilly, Dwight Yochim. [5] Richard & Sheryl McArthur, Stella & Chuck Bohn. [6] Mike McDonnell, Jim Mackall, Steve Nybo. [7] Bob Maurer, Warren Schuckies. [8] Steve Page,

The Merchant Magazine November 2010

Stephanie Kiser, Rich Giacone. [9] Miguel Gutierrez, John Hedges. [10] Kristen Lockhart, Jerry Dunn, Stacey Jones. [11] Chris Jensen, Pete Ganahl, Troy Allen. [12] Steve Prado, Melissa Kassahn, Erin & Jeff Pardini, Scott Kassahn. [13] Terri Turrentine, Jamie Taylor, Jim Turrentine. [14] Dave Lamarre, Wendy Kelley, Augie Venezia. [15] John Saunders, Lindsay Olson, John Somerville. [16] Andrew Roise, J.D. Saunders. (More photos on next page) Building-Products.com

CALIFORNIA DEALERS Photos by The Merchant Magazine

MORE LACN (continued from previous page): [1] Victor Fresca, Bob Shepherd, Joe Lawrence. [2] Danny Sosa, Shannon Mott. [3] Al & Stephanie Stockton, Matt Peterson. [4] Mark & Melinda Ganahl, Amparo & Steve Patterson. [5] Chuck Casey, Dr. Patrick Moore. [6] Jim Taft, Rick Roberts. [7] Karsten Vardas. [8] David Jones, Eric Ziedrich, David Thom. [9] Josh Milton, David Cruz, Chuck Bohn. [10] Al Newkirk. [11] Cheryl & Tom von Moos. [12] Jean Henning, Rick Hogue. [13] Jamie Taylor, Bill Kuhn. [14] Bob Palacioz, Phil Schumock. [15] Marion Newkirk. [16] Peter & Barbara Ganahl. [17] Tim Dickison, Bobby Senften. [18] Micheyl Barnett, Charlene Valine. [19] Bill Carr, Ryan Mitchell. [20] Tanka Chase & Kelly Ayers-Chase. [21] Dee Dee Graham, Pam Petersen.

Free Downloads of these and images from other industry events www.building-products.com – Click link at lower left –

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November 2010 The Merchant Magazine

CLASSIFIED Marketplace

Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set the type. Send ad to Fax 949-852-0231 or dkoenig@ building-products.com. For more

HELP WANTED

LUMBER TRADER We are a wholesale lumber company looking for an experienced trader. Any species. No restrictions on mills or customers. No relocation. 60% split for trader. Call John at Lakeside Lumber at (623) 566-7100 or email lakesidelumber@cox.net.

POSITION WANTED

MANAGEMENT POSITION WANTED General Manager with over 25 years of experience in the building supply industry seeking challenging career position. Successful work history in business development, management and analysis with a background increasing profits and setting sales records. Building industry experience includes sales, marketing, purchasing, advertising, estimating, budgeting and accounting. Motivated, professional candidate with superior leadership skills willing to relocate for the right opportunity. Contact Mike at mike@wcsir.com.

info, call (949) 852-1990. Make checks payable to Cutler Publishing. Deadline: 18th of previous month. To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660, or dkoenig@building-products.com. Names of advertisers using a box number cannot be released.

FACILITIES FOR LEASE

FOR SALE

OFFICE & WAREHOUSE FOR LEASE: Northern California Sacramento region. Approximately 2,000-sq. ft. office attached to 30,000-sq. ft. warehouse. Warehouse clear span height 20 ft. Office & restrooms ADA accessible. Warehouse includes three-man doors with large 20-ft. roll-up door. 220V power available. Fire sprinkler system throughout. Truck shop facilities provided, including minor repair work, oil changes, steam cleaning, etc., at favorable rates. Ample truck parking space in back of facility. If additional space is needed, an option on additional 30,000-sq. ft. warehouse will be available soon. Office & 30,000sq. ft. front warehouse available at .29¢ per sq. ft. Option for rear warehouse .25 per sq. ft. If interested, please call Tom Williams, (530) 742-2168, between 8 a.m. and 5 p.m.

FACILITIES FOR LEASE

TURNKEY CONTRACTOR lumberyard for lease in Stockton, California. 10+ acres. 18,000-sq. ft. covered storage and fully operational mill. 3,000-sq. ft. fully furnished office space, wireless Internet enabled. BNSF rail served. Rolling stock (i.e., forklifts, semis & flatbed trailers) included if needed. Contact Randall Richards, (714) 231-4705; rrichards@rwli.net.

FOR SALE

CARPENTER PENCILS 3,000 at at 16 19¢¢ each 7,000 each NAIL APRONS 1,000 89¢ each each 1,000 at at 95¢

PRINTED WITH YOUR LOGO

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800-526-6465

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Keep track of the West

The

MERCHANT Magazine keeps you up to date on industry

issues throughout the West. Now find out what’s happening on the other side of the Rockies.

Keep track of the Rest

Building Products Digest covers the other 37 states, including the Midwest, Southeast and Northeast. Subscribe for just $24 for 12 issues.

Contact Heather at (949) 852-1990 HKelly@building-products.com

The Merchant Magazine November 2010

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DATE Book

Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.

North American Building Material Distribution Association – Nov. 16-18, annual convention & joint show with North American Association of Floor Covering Distributors, The Broadmoor, Colorado Springs, Co.; (888) 747-7862; www.nbmda.org.

American Wood Council – Nov. 17-18, 1st annual meeting, Swissotel, Chicago, Il.; (202) 463-2766; www.awc.org.

U.S. Green Building Council – Nov. 17-19, Greenbuild conference & expo, McCormick Place West, Chicago, Il.; (800) 795-1747; www.greenbuildexpo.org.

Black Bart Hoo-Hoo Club – Nov. 18, annual meeting, La Hacienda Restaurant, Cloverdale, Ca.; (707) 621-4852.

Southern California Hoo-Hoo Club – Nov. 17, dinner meeting, Pomona Valley Mining Co., Pomona, Ca.; (760) 324-0842.

Washington Forest Protection Association – Nov. 17, annual meeting, Olympia, Wa.; (360) 352-1500; www.wfpa.org.

Western Forestry & Conservation Association – Nov. 17, seminar on operational management of Swiss needle cast in Douglas fir, The Woodlands, Woodburn, Or.; www.westernforestry.org.

DoubleTree Hotel at Lloyd Center, Portland, Or.; www.westernforestry.org.

Portland Hoo-Hoo Club – Dec. 17, holiday party, World Forestry Center, Portland, Or.; (503) 675-0040. International Builders Show – Jan. 12-15, sponsored by National Association of Home Builders, Orange County Convention Center, Orlando, Fl.; (800) 368-5242; www.buildersshow.com.

Western Pallet Association – Jan. 15-18, annual meeting, Rancho Las Palmas Resort, Rancho Mirage, Ca.; (360) 355-0208; www.westernpallet.org.

Surfaces – Jan. 25-27, annual floorcovering expo, Mandalay Bay Convention Center, Las Vegas, Nv.; (866) 860-1975; www.surfaces.com. True Value Co. – Jan. 31- Feb. 2, spring market, Orlando, Fl.; (773) 695-5175; www.truevaluecompany.com.

Fred C. Holmes Lumber Co. “YOUR REDWOOD SPECIALISTS”

Building Industry Show – Nov. 18-19, Convention Center, Long Beach, Ca.; (909) 396-9993; www.buildingindustryshow.com.

Lumber Association of California & Nevada – Dec. 2, 2nd Growth holiday meeting, Sheraton, Cerritos, Ca.; (800) 266-4344; www. lumberassociation.org.

Portland Wholesale Lumber Association – Dec. 3, holiday lunch, Embassy Suites Airport, Portland, Or.; (503) 283-0500.

OSU Oregon Wood Innovation Center – Dec. 6-9, lumber drying workshop; Dec. 9-10, 10th annual forest products sales course, Oregon State University, Corvallis, Or.; (541) 737-4240; owic.oregonstate.edu.

Mountain States Lumber & Building Material Dealers Association – Dec. 8-9, blueprint reading & material takeoff workshop, Holiday Inn-Denver Central, Denver, Co.; Dec. 9, WOOD Council year-end party, Mile High Stadium Club at Invesco Field, Denver; (800) 365-0919; www.mslbmda.org.

Los Angeles Hardwood Lumberman’s Club – Dec. 11, annual Christmas party, Orange Hill Restaurant, Orange, Ca.; (626) 4458556. Softwood Export Council– Dec. 14, annual meeting, Portland, Or.; (503) 620-5946; www.softwood.org.

Washington Hardwoods Commission – Dec. 15, meeting, Olympia, Wa.; (360) 835-1700; www.wahardwoodscomm.com.

Western Forestry & Conservation Association – Dec. 15, seminar on forest products export markets of China, Japan & Korea,

We offer an extensive inventory of fine redwood products including Fencing, Decking, Siding, and Premium Timbers. Whether your order is by the piece or truckload, our goal is to ensure the highest quality and service. CLEAR ALL HEART HRT BEE CLEAR AYE BEE SELECT HRT CON HRT CON COMMON

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lumber products REDWOOD INSPECTION SERVICE

CUSTOM MILLING AVAILABLE SIZES FROM 1X4 TO 12X12

Fred Holmes, Steve Holmes, Phyllis Hautala, Steve Hautala, John Gould

P.O. Box 800, Fort Bragg, Ca. 95437 • Fax 707-961-0935

(800) 849-0523

VAN ARSDALE-HARRIS LUMBER CO. 595 Tunnel Ave., San Francisco, CA 94134 • 415-467-8711 • Fax 415-467-8144

www.vanarsdaleharris.com

Since 1888

Specialists in upper grades of clear, dry softwoods

Douglas Fir C & Better V/G & F/G Kiln Dried Full Sawn Rough • 1", 5/4", 2", 3", 4", 6" & 8x8 • 3x6 DF Select Dex Double T&G Decking Sugar Pine • 4/4 -16/4 C & Btr. • 5/4 & 8/4 D Select • 6/4 & 8/4 Mldg. • 5/4 #1 Shop • 5/4 x 12 #2 Common • 4x4 #2 Common Ponderosa Pine • 4/4 Clears, Moulding, #3 Clear, Commons • 2x4, 2x6, 2x12 Std. & Btr. Dimension Western Red Cedar Clear V/G & F/G Full Sawn Rough • 1", 5/4", 2" Kiln Dried • 3", 4", 6" Air Dried Timbers Alaskan Yellow Cedar C & Btr. Kiln Dried Rough • 4/4, 8/4 Poplar, FAS • 4/4, 5/4, 6/4, 8/4, 12/4 Sitka Spruce B & Btr. V/G Kiln Dried Rough • 4/4, 8/4 Honduras Mahogany, FAS Pattern Grade • 4/4, 5/4, 6/4, 8/4, 10/4, 12/4, 16/4 Building-Products.com

November 2010 The Merchant Magazine

ADVERTISERS Index For more information on advertisers, call them directly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com] ................38 Ainsworth [www.ainsworth.ca].................................................22-23, 37 Anfinson Lumber [www.anfinson.com] ..............................................54 Bear Forest Products [www.bearfp.com] ...........................................32 Cal Coast Wholesale Lumber...............................................................41 California Redwood Co. [www.californiaredwoodco.com] ......Cover II California Timberline ..............................................................................4 Capital [www.capital-lumber.com] ..........................................24, 40, 47 Compass Lumber Products Inc. [www.compasslumber.com] .........30 Eco Chemical [www.ecochemical.com]..............................................31 Enduris [www.enduris.com]...................................................................5 Fasco America [www.fascoamerica.com] ..........................................45 Fiberon LLC [www.fiberondecking.com]..................................Cover III Fletcher Wood Solutions [www.tenonusa.com].................................28 Fontana Wholesale Lumber [www.fontanawholesalelumber.com]..13 Fred C. Holmes Lumber Co..................................................................53 Gemini Forest Products [www.geminiforest.com].............................38 GRK Fasteners [www.grkfasteners.com] ...........................................29 Huff Lumber Co.....................................................................................25 Indiana Lumbermens Mutual Insurance [www.ilmgroup.com].........34 Jones Wholesale Lumber [www.joneswholesale.com] .....................30 J.H. Baxter [www.jhbaxter.com] ..........................................................39 Keller Lumber Co. .................................................................................47 Krauter Solutions [www.krauter-storage.com] ..................................15 LP Building Products [www.lpcorp.com] .............................................8 WHOLESALE ONLY • MILL DIRECT & LCL

WHERE QUALITY IS AGELESS Anfinson Lumber is the clear choice for Quality Redwood and Western Red Cedar Dimension, Boards, Patterns and Timbers

CALL SALES AT (800) 400-8383 • (951) 681-4707 Rick Anfinson • Carol O’Connor Outside Sales Darin Curran

(949) 412-1894

Visit our website:

www.anfinson.com

Fontana, CA Office and Mill: 13041 Union Avenue, Fontana, CA 92337 Fax: (951) 681-3566 • E-mail: sales@anfinson.com

The Merchant Magazine November 2010

Norman Distribution Inc. [www.normandist.com] .............................39 OrePac Building Products [www.orepac.com]...................................17 Osmose [www.osmose.com] .......................................................Cover I Pacific Wood Preserving Cos. [www.pacificwood.com] ...................36 Quality Borate Co. [www.qualityborate.com] .....................................43 Redwood Empire [www.redwoodemp.com] .......................................19 RISI [www.risiinfo.com/crows].............................................................41 Roseburg Forest Products [www.rfpco.com].......................................7 Royal Pacific Industries........................................................................35 Screw Products [www.screw-products.com] .....................................31 Simpson Strong-Tie [www.strongtie.com].........................21, Cover IV Siskiyou Forest Products [www.siskiyouforestproducts.com]........11 Sunbelt [www.sunbeltracks.com]........................................................40 Superior Wood Treating [www.superiorwoodtreating.com] .............49 Swanson Group Sales Co. [www.swansongroupinc.com] .................3 Taiga Building Products.......................................................................33 Thunderbolt Wood Treating [thunderboltwoodtreating.com]...........44 Utah Wood Preserving Co....................................................................46 Van Arsdale-Harris Lumber Co. [www.vanarsdaleharris.net]...........53 Western Red Cedar Lumber Association [www.realcedar.org]...26-27

IDEA File

Seacoast Ace Hardware, Portsmouth, N.H., faces big box competition every day. Yet the small store has prospered—recently hiring two new employees—by focusing on customer service and sustainability. “We’re very different in the sense that we try and forge a stronger relationship with our customers than many of our competitors do,” says John Ozberak, who owns and operates the business with his wife, Mel. “If we don’t have what someone is looking for, we’ll send them where they can find it. That might sound crazy, but when they see that honesty, that makes them want to come back.” The couple bought the store in 2006, after years in the hospitality industry. “When we ran hotels and motels, we would learn the names of everyone that came in, learn their kids’ names, because we wanted them to come back,” says John. “Opening this store, we wanted to stay true to that sense of community.” Seacoast encourages sustainability by stocking an array of green products: low- or no-VOC paints and stains, recycled plastic buckets, CFL light bulbs, enviro friendly wood finishes, biomass pellets for woodstoves, and all natural pesticides, herbicides and fertilizers. Just as impressive is the couple’s commitment to reducing onsite waste. The store serves as a registered drop-off point for CFL bulbs, customers are asked if they want purchases bagged, and plastic bags are not used—even to hold tiny nuts and bolts. When paint is mixed incorrectly—a rare occurrence—mistakes are donated to local organizations. “In the end,” says John, “the tie-breaker between us and the other guys is customer service.” Hardware with a Heaping of Hospitality

Building-Products.com

Seeing is believing buying Imagine showing a prospective customer a picture of their dream deck—and not just a drawing or sketch, but a full-color, 3D image they can look at from any angle. DeckTools®, a sales, design and estimating software program for decks, makes it easy for deck builders and suppliers to create one-of-kind deck designs right from their laptops. Customize nearly every detail, from the deck shape and railings to material choices and hardware, while quickly generating plans, proposals and material lists. Learn to turn your proposals into sales with Simpson Strong-Tie® DeckTools Software®. Visit www.strongtie.com/decktools or call (800) 999-5099.

Strong-Tie Company Inc. DT09