HOME GENTER MERGHANT

BILL FISHMAN

Bill Fishman & Affiliates 11650 lberia Place San Diego, Ca.92128

f He uaroRITY of home center ad- o it can bring in "feet"

I vertising that crosses my desk is terrible! It's poorly merchandised and poorly presented. It appears that only those retailers who have tasted the fruits of a carefully prepared advertising program continue to make the effort to maximize the results of the advertising expenditure. The best ads are produced by the high volume retailers.

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

. it can sell specific items at advertised prices it can create long range image position both store-wide and by department

. it can introduce new product categories it can introduce new items

. it can make impressions like the store's value image

But, advertisinEwon't

. overcome high prices or bad merchandise compensate for a poor location or limited hours or bad facilities overcome the image of discourteous and/or unknowledgeable salespeople or poor systems and Procedures or unrealistic credit policies.

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

Consider not running the ad during a

. short week or weekend

. if you've nothing to say o if you're facing poor floor coverage

Consider not running an item

. that's in short inventory when you show out-of-stocks of the fittings or accessories if it pre-empts an upcoming major promouon o if it is a bad value

. that is higher priced than competition's day-in, day-out shelf price.

Plan ahead-weeks ahead. Do your advertising planning far enough in advance to order-in special merchandise, to communicate with the sales staff, and to display, sign and reprice the merchandise.

Challenge every candidate as an item to be advertised. Try this score card. Rate each criteria one point.

Universal appeal (sexes & age)

In season

Disposable

Non-competitive

Long margin

Recognizable value

Priced under established retail price

Requires tie-in merchandise

Easily replenishable

Small-Easy to handle-EasY to display

Cooperative ad funds available

Promotes a department

Self-select

Backed by national advertising

Here's how to score: 13-14 PointsRun it the following week too; ll-12 points-Great item to advertise; 9-10 points-Good advertisable item; 3-8 points-It's just a "me too" item; Under 3 points-Don't waste the ad space.

Merchandise the advertising at store level. Decorate with pennants, banners and signs to make a coordinated promotion.

About size and continuity of advertising-do not get sucked into the "keep your name in front of the public" syndrome. If you've got nothing to say to the public, say nothing. You will spend your advertising dollar much more wisely if you run your ads less frequently and with greater size and impact.

Keep your advertising looking fresh and sharp. Forbid your newspaper or printer to reproduce from old clippings and tearsheets. Insist on them sizing from the original art work to maintain a high standard of your advertising presentation.

FRANK DAVIS executive vice president

EIECPNTLY in a news release from I lthe Home Builders Association of Central Arizona, the executive directors were quoted as saying, "Potential home buyers who are sitting around waiting for interest rates to come down will end up short changing themselves. Even if interest rates come down, prices will go up,"

It is understandable that they are promoting a "now is the time to buy" program to stir sales. My argument is that the home builders should innovate a program of reducing the cost of homes through building technique cost saving methods. It is folly to say prices are always going to go up.

The auto industry was five years behind in the re-design of automobiles for energy saving and compact cars to meet the consumers' pocketbook. The home builders are now taking the same negative path as the auto industry. Regardless of lower interest, the young Americans between the ages of 20 and 30 starting a family will find the price of homes beyond their financial means.

Interesting figures for l98l indicated that conventional home housing starts dropped while the manufactured home or mobile home construction showed a 3590 increase.

A news release in The Arizona Republic, Dec. 2, 1981, reported economists were predicting that in mid-1982 the mortgage rates will sink to 13 or l4o/0. lt seems common sense that a potential home buyer reading these figures will delay buying a new home until interest rates drop.

Yes, we will have a housing boom in 1983, but let us, as an industry of home builders, building material dealers, and manufacturers, get together and innovate ideas for an affordable home to meet the American dream to own a home.

The Young Lumbermen of Arizona have burgeoned into an active, enthusiastic group with a great track record. At a recent dinner meeting, Bruce Whiting, legal counsel for Kaibab Industries, explained the basics of antitrusts. The group now has 133 members.

More Families, Fewer Houses

The growing number of smaller households with the downturn in the building of homes has the experts wondering what will happen in the future.

According to Census Bureau reports, the total number of households increased by 2590 between 1970 and 1980 although the population grew only 990. During this same period the average size of a household declined from 3.14 persons to 2.75.

A doubling of the divorce rate along with the trend for young people to leave the family home to live independently is reported to account for these figures. According to the census officials, a reversal of the trend is possible, but unlikely as this decade continues.

Paul Bunyan Faces The New Year

Assuring his friends of continued service, Paul extends his sincere thanks and best wishes for the coming year.

HARRY MENDENHALL executive vice oresident