A look at a wholesale lumber company on the occasion of its l Oth anniversary

HEN THE Kelleher Lumber Co.-then Kelleher Lumber

Sales-began business ten years ago in a back-alley quonset hut in San Rafael. Ca.. it was a mere babe in the woods among corporate giants.

This month marks the tenth anniversary of Kelleher Lumber, and today that company is one of the largest and most respected wholesale lumber distribution firms in the western United States.

"Ten years ago when we started the business we could see the need for a wholesale distribution center to service the needs of Northern California retail lumber dealers," notes Don Kelleher, the company's founder and president. "Yet the growth and success of the company has far exceeded our expectations."

"We used to buy a load of lumber and then get on the phone and try to sell it," reminisces Harry Lyon, V.P. and general manager. "If we did sell it, we'd turn around, buy another load and start all over again."

Humble origins, indeed, for a company that is now approaching the $4 million mark in monthly sales.

The operation consists of two separate companies: Kelleher Lumber Co. and Kelleher Moulding Co. which do business under a common manasement structure.

Th6 moulding company, which began in 1973 as the fledgling offspring, now accounts for nearly onequarter of the parent company's sales and is one of the largest stocking distributors of mouldings and millwork in the westem half of the country.

The rapid growth and accom-panying success of Kelleher Lumber is uriparalleled in the industry. And there are a number of reasons for that success, the company feels.

One of the big reasons they cite is the fact that the firm is composed of a group ofrelatively young, enthusiastic and experimental management personnel.

"Everyone in the company actively sells lumber," states Jeff Barnes, sales manager of both the lumber and moulding companies. "The entire management is involved in the day-to-day operation."

In fact, a stroll through the company's new showplace San Rafael office resembles a tour of Pacific Telephone's central exchange. Telephone console panels are lit up like so many blinking Christmas tree lights and the onlv sounds are the rustlins of papers dnd the hubbub of onel sided phone conversations.

Don Kelleher, phone seemingly glued to ear, is without a doubt the hardest man to get hold of in the entire company.

Another big reason for their success is the companv's unusual aDproach to sales and customer relhtions.

"We have tried to keep from accepting the old, traditional ideas of what can and can't be done," Lyon explains. "For instance, we think of our customers as friends rather than just customers. "

"It's true that we carry a large and complete inventory,' ' Lyon says, "but the biggest thing we can do is to give the customer what he wants and to eive it to him NOw."

Story at a Glance

From quonset hut to showcase office, firm's first 1O years of growth have been based on careful attention to their customers and a management actively inYolved in day to day operations.

Rick Callahan, the moulding company manager, concurs with Lyon.

"What sets us apart from our major competitors is that we can deliver a high mix of products in small quantities on short notice," he said. "Not only do we stock a larger inventory than anyone else, but we are continually going after new product lines. ' '

"Our recent growth has been a result of the success of our new product lines," observes John Ahlers, purchasing manager of the moulding company. "Our future plans include getting into wholesale distribution of doors. "

The company also makes a concerted attempt to raise its relationship with its customers above that of the typical wholesaler and retailer.

To that end, the company has purchased a prop-jet airplane for use in sales, as well as customer and employee education.

PAPERUU0RK 0GCUPIES Harry Lyon llefll, v.p. and gen. mgr. of Kelleher Lumber Co., in the conference ro0m at San Rafael, Ca. lcenlerl John Ahlers and Rick Callahan, overseers of the moulding company, discuss strategy in an afternoon session. lrigitl Jeff Barnes, sales mgr., lumber, prelers a vertical position when discussing business with a cuslomer.

The plane is used for transportation to mills and plants that would otherwise be less accessible. From that point, mill and plant tours are conducted for the enlightenment of customers and its employees.

Kelleher also routinely throws regional get-togethers in order that the company and its clients can associate on a distinctly less than businesslike basis.

If the handsome San Rafael office is the brains of the Kelleher Lumber Co., then the company's brawn is its yard and warehouse facility in picturesque Blackpoint on the MarinSonoma County border.

This facility features 80,000 sq. ft. of under-cover warehouse space, five acres of asphalted yard and a five-car spur. Seven large diesels and two small bob-tail trucks work out of the yard and are used exclusively for the delivery of materials to the customer.

Those materials are the company's backbone.

Their stock is 60Vo redwood. The balance is a mixture of fir and pine, with small amounts of cedar and spruce.

The appendages of the company are its 12 on-the-road salesmen, who currently canvas the area lying between Redding and Bakersfield on a northsouth axis, and between Reno and the Pacific Coast. In addition, Kelleher has expanded to the State of Hawaii, which has developed into one of its larser markets.

"We'll be expanding the physical tenitory that we cover on a regional basis to include most of the westem states," Lyon says, adding a note of caution. "We do want to make certain, though, that we do not grow at the expense of what we do well."

"And while we have enjoyed increased growth, we don't expect to rest on our laurels. We are going to continue to look for ways to expand so that we may better service our customers. " lll-llEPTH L00l( at the role windows play in energy conservation is given to customer with video 0resentati0n. Take home literature on the racks below serves to reinforce information.

Kelleher Lumber Co. has come a long way from the day l0 years ago when a couple of ambitious lumbermen began operating out of a quonset hut.

There's absolutely no telling what the next ten years will bring.

Window Sales Aids

by John W. Shoemaker Executive Vice President National Woodwork Manufacturers Assn.

HE National Woodwork Manufacturers Assn. offers dealers who stock wood windows merchandising aids that can be used effectively during Home Improvement Time, ranging from audio-visual presentations to idea-generating selling programs.

- An audio-visual presentation, "The Role of Windows in Cutting Fuel Bills," focuses on the energY and fuel savings possible through the use of wood windows. Running aPProximately ten minutes in length. the prosram-has 73 illustrations in a fastiaced cartoon format. '

Desiened for viewins by a variety of audi-ences. the progiarn is offered in two formats. For presentation to large groups, it is available in a soundslide format. For individual viewing or viewing by small audiences, it is available in a LaBelle cartridge, which is ideal for counter displays in stores, showrooms or exhibits. Either format can be used in sales training programs.

Accompanying the program is a 6-p. piece of collateral literature that can be offered as a take-along or handout after the audience has viewed the presentation. Because all the illustrations and text are excerpted from the audio-visual program, the brochure acts as a learning reinforcement'

A new l6-p. consumer-oriented booklet answers in easy-to-understand style many questions homeowners ask about windows.

"A Guide to Energy-Saving Windows" discusses the components that comDrise a quality window; the various'styles bf rindo*s available: proper window locations for optimum illumination, ventilation, and fuel usage; condensation; the esthetic value of windows: the care of windows; and remodeling with windows. The booklet is available in quantity discounts to dealers, distributors and others merchandising the benefits of wood windows to consumers. To help dealers and distributors merchandise millwork more effectivelv. NWMA also publish es Successfut- Retaiting.

This series of case histories is intended to help building supply retailers and distributors generate merchandising ideas of their own to expand their millwork sales.

These reports document the techniques dealers around the nation use to merchandise wood windows. doors. and specialty products. The publica- tion describes in both text and photos how to display and sell stock woodwork products in millwork departments.

Additional information on these merchandising aids may be obtained by writing to the National Woodwork Manufacturers Assn., 205 W. Touhy Ave., Park Ridge, Il. 60068.

SPECIALIZING IN PINE AND FIR PRODUCTS FOR THE INDUSTRIAL AND RETAIL MARKETS.

serving the west since 1950. We invite you to utilize our automatic lumber stacker.

300,000' kiln capacity

€9!oo_9ry:t"fq.

For your additional convenience we are rail served.

Home lmprovement Push

The annual cooperative industry promotion and public relations progam for home improvement is underway for spring with the theme "It's Home Improvement TimeA Good Investment."

Sponsored by an advisory committee of industry trade associations and a blue ribbon list of manufacturers, the program is designed to strengthen marketing. More than 15,000 participants including home centers and lumber and building material dealers have been involved with the action nationwide. An ongoing effort all year with special emphasis in the spring and fall, the promotion reportedly is responsible for an annual spending of more than $1.5 billion for home improvement products and seryices.

In addition to free display materials ranging from posters to bumperstrips, participants have access to sales aids and ideas as well as brochures which may be imprinted and distributed. Support promotions in consumer and trade publications are part of the program.

James A. Stewart, program administrator, may be reached at P.O. Box 205. Oakdale. Pa. 15071.

Gov. Regs Cost Us All

Economic impact statements should be required on all new government regulations to reduce their highly inflationarv effects. E. L. McNeelv. chairman and chief executive'officer of The Wickes'Corporation said recently. He was presenting the keynote address to the National Home Center/Home Improvement Congress & Exposition in Dallas.

"Instead bf lavins the entire blame for inflation on OPEC price increasEs," McNeely said, "we can start attacking the problem at home, by slashing regulatory costs and reducing their negative effects."

In calling for economic impact statements on all new regulations, McNeely recommended that these statements include "the costs to the consumer, the taxpayer, and America's competitive position in world markets, as well as the direct costs to the industries being regulated. "

"The independent regulatory agencies in particular have become so independent that they've lost the accountability of their power. Business is accountable to the marketplace on a daily basis. The politician must stand before the electorate every two, four, or six years. The regulators, however, are accountable to no one, publishing hundreds of costly and contradictory regulations every day."

McNeely said, "The cost of regulatory activity has been estimated at $100 billion a year, and the indirect costs may be two or three times that amount."

Free Computerized Pallet Design

To tap plywood's potential in the industrial materials handling market, the American Plywood Association has introduced a free computerized pallet design service for industrial users and specifiers.

A call to l-800-426-9782 will bring within 24 hours a computer printout of a pallet designed to meet the specific requirements of the caller.

The pallet design will be accompanied by promotional materials stressing the value of plywood pallets. Field reps also will call on the pallet user to provide any needed assistance.