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till prove fheir worth
salcs for all purchases is about $10. Cash sales have increased every ycar. Contrary to stereotypes, Carter finds his retail/homeowner customers are interested in fixing up their homes. The usual pattern is s(:t with a snrall cash purchase. followed by r(.turn trips as projects t'nlarge in scope. Customer satisfaction is hest demonstrated lr) the number of return custorners and the ertensive worrlof-nrouth advt'rtising the yard has earnt'd.
As the ncighborhood i-s an old cstablishcd ont', with lots of apartments. r('modeling arrd fisup art'tire big itenrs. though patio-s. fences and the like are still ('ommon sales items.
The business rnix of the yard is i>O/o remodeling contractors, 30lo homeowner and 2A/o industrial. Remodelers account for only 20%-25% o{ the profit, however. The markup on retail items is 50o/c-609t. The mix has been stable the last five years.
The operation grosses from $600,000 to $700,000 per year, is open six days a wcek, 8 a.m.-5 p.m., and has lI-12 enrployees. The mill part of the business was dropped some years ago when they {ouncl thcy could buy millwork more cheapll, than they could make it. Accounting is not broken down into lunrbt'r and non-lumber. items. Spot checking is done to eliminatt' slow-moving items.
Thel- shy away f rom ailempting anr' pre-{ab work for builders because of the co-qt of the union labor involved. They do sell complete framing packages for remodeling customers.
Losers among the retail sales items thcy" have tried include power tools and heavy building materials. They stock small plumbing items only as the full line pr.oved a cumbt'rsome and low profit group for them.
In addition to tht' invaluable word-ofmouth adveriising their eficctive salesmanship has produced for them, about 1.5/a of gross sales goes {or Yellow Pages advertising, small ads in tht: local news-
They have high praise for Georgia-Pacific and the help G-P givcs in selling pancling. The Flecto flooring line has also produced good results and is prominentll displal ed in thc yard's well-plarrnei inside showroom. The vard shed is used to stock and display lumber, ceiling and other'large items.
"\ick" Carter went to l-os Aneeles in 19,r0 planning Io rctire. 'l'oda1. two der-. adcs latcr, retilement is still postponed. He bt'gan in the busint'ss in l92l with tltc ( Conti.nued on Pas,e 30 )