"Profits with precuts-'

I I OW DOES a home center turn I I construction olvwood into a highly profitable coniumer product?

The answer: the American Plywood Association's "Profit With Precut" promotion. This sales boosting program using floor displays stocked with precut panels, idea books and project plans to generate consumer interest in homecraft plywood projects.

To date, more than 200 home centers across the nation are finding they can increase plywood sales by as much as 27n/n. The projected return per square foot of selling space was $295more than triple the 1975 store-wide average for home centers.

The "Profit With Precut" package costs $37.50 and includes construction drawings for the dealer's choice of the three in-store displays: construction drawings for the sales material holder: ready-to-apply graphics:

Story at a Glance

Plywood producers' promo- tional push produces a plethora of profit potential in "Profit with Precut" program . .precutr panels and project plans push plywood.

an initial supply of 50 copies of each piece of sales literature,; reorder forms; and special project kits, including step-by-step project plans; copy for a window or in-store display and reproducible art spots for advertising.

APA field reps also sit down with home center sales crews to provide basic information about plywood and which grades are most appropriate for which uses. They'll also offer sales tips, like how to use the idea books and project plans to generate sales.

"Profit With Precut" is one promotion that works. It increases plywood sales and creates customer demand for related products.

A fully stocked rack alongside a high traffic aisle is the key to sales success. The Clearwater Lumber Company, Clearwater, Fl., for example, has positioned their open cube display in a completely new displayrarea and assigned a salesman full time for precut plywood and lumber walk-in sales. Since the remodeling, sales have doubled with a good looking, well stocked display center.

"Our hottest item is bedboards," says President Hank McWorter. "We carry them in three sizes, the largest being 48"x72". We also sell a lot of circular plywood panels in diameters up to 48".

The store further stimulates sales by occasionally building a simple project from plans provided in APA promotional literature.

Ted Grasmick of Economy Lumber and Hardware in Denver, has had good success with the "Profit With Precut" promotion. Since building the first display bin in the Denver store, he feels plywood traffic has increased 50% 75% and intends to immediately launch the program in the company's three suburban locations.

"We want our customers to think of plywood as an economical problem solving material, whether it be in homecraft projects or major home remodeling applications," said Gramick. "The 'Profit With Precut' display gets the material out of the warehouse and onto the sales floor where consumers see it and consider its many home uses. And the project plans help create consumer confidence in their ability to work with plywood at home."

Big Buck Building Center in Mokena, Il., has placed its A-frame display rack near the cashier counter for maximum exposure of the plywood project literature and precut sizes. Manager Burr Manby says that his precut material moves well. Salesmen often see people taking the plans home and returning days later to buy the plywood and materials necessary to complete the project. "The beauty of the promotion is that the homeowners who once complete a simple plywood project become confirmed do-it-yourselfers. This creates a steady market for more and better tools and materials," adds Manby.

Another lumber supplier using the "Profit With Precut" display rack is Southwest Forest Industries' Dunlap Division. Manager Terry Shinnick says they are experiencing a complete turnover in precut pieces every two weeks. Dunlap has good volume in circular panels ranging in size from 12" - 48" diameters.

APA reps calling on participating dealers, report that the promotion is causing dealers and customers alike to think of plywood as a home improvement product rather than simply a commodity or construction material. And, in a time when home centers need growth markets not affected by construction slowdowns, plywood merchandising is an excellent investment in the boomine homeowner market.