Exclusively for California . .

SEtt SERVICE-NOT PRICE

(Continued, lrom Page 8) industrial shops and presently houses thir. teen {irms. Despite the still almost semi. rural character of their location, the county says 8,000 vehicles pass by each day.

One of the decisions of makine the changeover was to retain their pol[y of free delivery. They feel it has often been the deciding factor in making the sale, particularly with the customer who has been shopping around.

to more ond more Coliforniq deqlers ond distributors. For yeor qround supplies of dimension lumber ond precision-trimmed studs, depend on D & R.

Old Growrh Fir Dimension from F.S.P. Lumber Co., Port Orford, Oregon

Hemlock Studs from Worrenton Lumber Co., Worrenton, Oregon

Hemlock Dimension from Westport Lumber Co., Westport, Oregon

Fasi, regular ocean shipments by barge from Southern Oregon and the Columbia River direct to Southern California.

Now, over 5,000,000 feet of dimension lumber and studs monthly . . manufactured especially for Southern California construction needs.

Art Neth would appreciate an opportunity to tell you how you and your customers will benefit from using dependable D & R dimension and studs. You can reach him by calling 872-1280 or 783-0544.

A. W. N ETH, Lumber Sales Southern California Representative for

Their business mix is about twenty percent industrial, a small part contractor and the balance, the greatest part, the do-ityourselfer and the really small contractor.

Re-screening doors and windows and making picture frames are other service specialties. When possible, they try to do the re-screening work in less than an hour, and the picture frames by the next day, but it depends on the press of business.

Despite a stated milling charge of six dollars an hour, with no minimum, they try to use milling as another service. For good customers, there is sometimes no charge for small jobs, though this is necessarily tempered by the economics involved.

Beside the $5,000 it would take to re. place the milling machinery, they have to pay about $600 quarterly for Workmen's Compensation, which is based on wages paid. Also involved is a charge of about $200 annually to pay for the three phase electrical service needed to operate.

The oblong building is divided inside by a movable partition, with about sixty percent of the space for showroom and the rest for stora€te behind it. The handy part is that as showroom space demands develop, it can easily be moved backward. It's fronted on the showroom side with punch board and used to display picture frames, garden and hand tools. Customers move freely on both sides of the wall.

Dickenson does a big summer business in patios, large ticket sales with full mark. up included. Using good quality materials keeps returns rare and gets them more than one-third of their business by referrals. With patio business they'll make exchanges with no questions asked. Last year they had no major complaints.

One service, if that's what you would call it, that they stopped was giving Green Stamps. "It didn't make a ripple , we didn't loose a sale," Don Dickenson relates, though he admits they had their doubts before deciding to do so.

New GP Center

Georgia Pacific Corp. has'purchased 2.8 acres in Roscoe-Canoga Industrial Park, Canoga Park, Calif., where it will construct a 50,000-sq.-ft. one-story concrete distribution center for plywood and other building materials.

How to Find Morkupond Morgin Without Using tl Formulq Wheel

One of the marketing factors that retail lumber and building material dealels are sometimes uriticizcd for is {ailure to properly price items {or sale. The trvo {ormulas shown her,e, Irom Merchan'd,ising Week show how to properly figure both margin and markup.

Remember that margin is always a percentage of selling cost. Markup is always a percentage of cost.

fo set a margin-based selling price, use this formula'

Subtract the margin you desire from 100%, then divide the remainder into your cost.

For example, if you desire a 26% gross margin on merchandise that cost you $200, here is how it would work out, step by step,

Step I ' Step 2: subtract the desired margin divide the remainder percentage from one hundred percent into what the merchandise cost you 700"/"

26% (desired gross margin) $256.62 (the selling price.you..shou14 set)

-7[% (remainder) 74% \/ $200 (what the merchandise cost you)

Io set a markup-based selling price, use this formula:

Multiply the markup you desire by your cost, then add the result to your cost. For eximple, if you desire a 260/" markup on merchandise that cost you $200, here is how it would work out, step by step:

Step 1: Step 2: multiply the desired markup add the resulting dollars by your cost to what the merchandise, cost you $200 (cost of merchandise) $200 (what the merchandise cost) X 26% (desired markup) *$ 52 (markup dollars) $ 52 (result) $252 (the selling price you should set)