Protecting your EDP hardware

More and more companies are counting on computers and related EDP hardware to keep their operations on a profit-making plane. Hence the need to protect this electronic wizard from damage from both manmade and natural perils.

And the perils are many, says the Insurance Information Institute. running the gamut from fires, floods and explosions to pollutants, magrrets and changes in humidity.

But the adoption of proper safeguards can guarantee maximum protection, says the Institute.

Ideally, computer operations should be sealed in a vault below tle earth. But whether the EDP set-up is housed in a separate structure or shares space with other operations, certain basic security measures should be undertaken.

The EDP area should be built of non-combustible materialwith walls, partitions, floors and ceilings capable of at least one-hour fire resistance. A watertight ceiling and an automatic drainage system in the floor also are advisable.

With the threat of fire, which is particularly disastrous to both EDP hardware and software, ever present, the Institute suggests that all furni. ture, vaults and storage cabinets be flameproof and the distribution of burnable materials be kept to an absolute minimum,

Don't use water on a fire involving a computer operation, it will short circuit and conduct electricity. Carbon monoxide is the most effective extinguisher and the least dangerous to equipment. However, it must be used with extreme care because it can be lethal to personnel. Dry chemicals are also effective, but will leave a residue on machines,

As an added precaution, duplicate tapes, records and other valuable materials should be stored in a wellprotected building some distance away from the computer center.

Computerized operationswhether in-house with owned or rented equipment or performed by a service bureaucreate insurance risks that carry across conventional lines of coverage. While most of the risks grow out of damageto the hardware or softwear such as tapes, discs and punched cards, the exposure to liability can't be underestimated.

Such risks can be insured in two ways: under standard policies with special endorsements for EDP operations; ora specially-tailored EDP policy, perhaps the better of the two.

Coverages to consider, according to the Institute, are: all risk property damage, extra expense, business interruption, valuable papers, fidelity bond to guard against use of the computer to defraud and an umbrella liability policy.

1 Billion Bucks A Day!

According to the National Association of Wholesaler-Distributors' annual survey, wholesale distribution sales topped a billion dollars a day during 1973. By comparison, this represents approximately a third of the nation's annual Gross National Product figure.

Member sales showed the largest dollar increase ever recorded: a whopping 157a. Moreover, profits rose dramatically to l07o - a 507o improvement over member predictions a year ago.

Durable goods respondents showed a sales increase of I57o with profits l07o above the '72 level. Farm and garden machinery realized a 26.37o improvement in profits on a 20Vo sales increase, while lumber showed an l87o sales growth with a profit increase of207o.

Although the overall sales picture was very good in '73, part of the dollar improvement can be attributed to inflationary trends. Industrial commodity prices, reflected in the Wholesale Price Indexo increased 87a in 1973 while consumer goods were up over 6%b . Food prices skyrocketed 257o.

Partially offsetting this factor, productivity (measured in dollar sales per employee) increased l0.SVo across the hoard for wholesale distribution in 1973.

For 1974, respondents to the NAW Survey forecast a median L07o sales increase, with profits up 1Vo. An identical prediction was made for 1973 in last year's survey.

Plan Now For May Home Improvement Month

Sales Promotion

(Continued from page 10) find that a 60 second spot can be purchased for as little as $6 on certain local stations at certain hours. Producing a radio ad is easy and inexpensive. Many times the disc jockey will personally read the message lending more "believability" to it. Some radio stations will negotiate a merchandise "swap" for broadcast time. Check into this, it can reduce the cost.

(5) Television advertising has the reputation of being very expensive. Sometimes it is. But check with your local stations. You may be amazed how inexpensive it really can be for a TV spot at certain times of day broadcast locally. Some broadcasters even charge on a "per inquiry" basis. This means that the cost of your ad is directly determined by the response that your ad gets.

(6) National magazine ads are also considered expensive. Some are and some €ue not. Some are but are worth it. Look for that magazine which really zeroes in on your target market. Circulation figures are meaningless unless the circulation is really made up of your potential customers. Use regional editions or local publications if available.

(7) Do you have a catalog or newsletter ofyour own? If so, are you using it to maximum benefit? If, not, would one be worthwhile? Direct mailings of these are expensive but almost always increase sales,

(8) If you have a good advertising budget you should be using an advertising agency. They are professionals and can help you in many ways. However, don't let an agency purposely steer you away from noncommissionable media. They want their 157o, of coursen but most agencies will recommend non-commissionable media if it would do a better iob.

(9) If you are a member of a chain, are you really aware of and using all of the promotional assistance you are entitled to from the headquarters office of your group?

(10) Above all, be realistic about how much you spend, what products you stock and exactly who your customers are. Keep very careful records ofwhat you do and evaluate the results. Watch profits and focus on the right target market. Your money and effort will go a lot farther.

Specialty Products

(Continued from page B) programs help to increase frequency and size of dealer advertising.

We can't stress strongly enough the importance of consistent well planned advertising.

PGL for many years has provided a tabloid promotion program for retail dealers whereby he has a 'oreadymade" promotion piece with specialty products featured. The reason it is so attractive lies in the fact that co-op allowances help to cut printing, production and mailing costs. This service is available to him at our costs (we're not in the printing business to make money).

As you can see, it takes a joint contribution and close rapport between manufacturer - supplier, distributor and retailer to merchandise and SELL profitably in todays competitive market.

Alaska Mill Sold to L-P

Evans Lumber Co., Nenanao Alaska, (not to be confused with Evans Products Co., Portland) has been acquired by Louisiana-Pacific Corp.o according to Douglas A. Westenhaver, L-P v.p.-Western operations and James S. Evans, partner. No price was disclosed.

The 35-man sawmill and planing operation is about 60 miles S.W. of Fairbanks. Assets include cutting rights on two State of Alaska timber sales contracts.

"This property, because of its location on the Alaskan railroad and access to additional timber, will become part of L-P's Anchorage div.," said Westenhaver. o'Present capacity is 30 M board feet a day of white spruce and hardwood timber but plans call for substantial plant improvements to increase capacity to 75 M board feet a day."

(Continued, frorn page 26) the federal and state legislative committees of LMA, are constantlv Duttins Dressure on the lesislators but in each case yoa. pers6rial i nv"olvement supports The association position.

One day soon the Javits bill will come up for vote. This bill deals with workmen's compensation and would authorize re-opening of millions of industrial illness and injury cases, particularly those involving Black Lung disease, and award compensation that would amount to billions of dollars. Where do you think the money will come from? Either your taxes will support it or workmen's compensation rates will soar to support the program. This will hold true for future cases, for example, of loss of hearing. Even though the individual suffered a loss of hearing before you hired him, if he files a complaint of industrial injury you are going to pay and your experience factor will climb.

If you want to feel relieved, just pass it on to the consumer. California Assemblyman Jack Fenton (D-Montebello), in a discussion with me on January 16, 1974, concerning the increase in compensation being awarded to injured employees, commented that there was no problem because the dealer passed the cost on to the consumer.

I'm sure you all enjoy explaining to your customers why prices continue to climb. You also probably have no objection to customers buying only the bare essentialsno add-ons, no top line merchandise.

Sure you don't!!l!

You don't want any of these things I've mentioned to happen. But you are certainly lending your approval to the laws that are^being passed.which slowly take away your prerogatlve oI runnrng your busrness.

Remember this one concept. Government considers silence as approval.

If you are silent they assume you approve.

If this comment has made your blood pressure rise a few points and feel like grabbing someone by the throatprobably megood!!! I've accomplished my purpose in that you have become concerned even if only momentarily. Now keep your level of concern high.

Attention All Golf Freaks

Dubs, Ltd., the greater San Francisco Bay Area golfing club for those associated with the lumber industry, reports that they are still open for a few more members. Those interested can contact any club member.

Home Quality Down?

The quality of new home construction has grown worse over the past l0 years, say 6U/o of those interviewed in the latest Louis Harris survey.

In a similar survey conducted in 1971, some 477o felt new house construction quality was worse than a decade prior.

The 607o'ogrown worse" figure for new home construction, in fact, recorded the largest quality tumble of all products. Next in o'growing worseoo was new automobiles, which 467o felt have grown worse over the past l0 years.

Growth of Plastic Pallets

The market for plastic pallets grows at an accelerating rate, according to Johns-Manville Corp., which cites the growing acceptance of expendables, still in their infancy. One reason is their light weight, which cuts shipping costs. The other is their durability, allowing customer re-use.

The problem with plastic pallets, on the other hand, is their limited performance and high cost, says Sinclair-Koppers' George Sollenberger. To achieve sure, steady growth in the market, plastic expendables must drop in price to about $2.25. Shipping costs must come within reason. These costs are now prohibitive because the handful of manufacturers today must ship pallets over great distances. However, plastic pallets have great potential in industries where moisture and sanitation are a problem. Wood, however, still dominates the market.

The tournament schedule for the balance of this year is: Feb. 15, Silverado C.C., Napa; Mar. 15, Menlo C.C., Woodside; Apr. 19, Mira Vista C.C., El Cerrito; May 17, Reveille with Hoo-Hoo #39, Round Hill C.C., Alamo; June 14, California

C.C., So. S.F.; July 19, Meadow

C.C., Fairfax; Aug. 16, The Villages

C.C., San Jose; Sep. 20, Santa Rosa

C.C., Santa Rosa; Oct. lB, Carmel Valley C.C., Carmel; Nov. 15, Round Hill C.C., Alamo; Dec. 6, Castlewood C.C., Pleasanton.