Yard prepares for changing market

f-leselrr all the talk about change in the r/ decadc of the '70s. few have put it as succinctly as Gale O. Stafford, president of Stafford Lumber Co., when he said, "the next ten years will make the last ten years look as if we've been standing still."

Noting that he feels "the whole pattern of distribution will undereo extensive changes." Stafford has already raken steps to keep his City of Industry, Calif., business ahead of marketing changes.

Most obvious is the recent refurbishing of the office building that contains the consumer side of his business. Though it presently represents only about lD/o oI his business, Stafford realizes that the continuing decrease in the number of contractor customers can best be coped with now by increasing reliance on the consumer side.

While many in the industry recognize the need, it is a classic example of something that is easier said than done.

In Stafford's 5-7 mile trading area are a fearsome assortment of consumer merchandisers . Builders Emporium, Angels, Ole's and K-Mart, just to mention a few.

In putting more stress on their consumer operation, they have wisely avoided the all things to all people approach and have concentrated their efforts where they are strong and have stayed out of areas where the competition is too firmly entrenched.

Figuring theil bag is lumber, they keep the price competitive and offer a stock of fresher, brighter lumber than the competition because of the large volume that goes through the five acre yard for their contractor customers.

Sfory dI s Glonce

Revamping consumer operation at contractor-oriented yard ref lects declining starts and increased awareness of profitabil ity of selling the consumer.

They don't sell full lines of electrical or plumbing items, concentrating rather on builders hardware. Stafford doesn't get into selling tools, because "after I looked at the other yards in our area, I saw enough tools in stock to supply the entire Southwest. I guess the salesmen for the tool companies must be pretty good."

Stafford Lumber has six men in the yard and five in sales and office work. Last year the firm did $f .7 million and returned between 5%-6%. In the past the return has been as high as l2/o. They are open 8-5 Mon.-Fri and 8-2 on Sat. They have Bankamericard and Master Charge and carry contractor accounts on normal terms. They don't plan to get into revolving accounts. Only l0/o-15/o of the consumer business is charge.

They presently spend only 0.5/o of gross for advertising. Any future increases will be heavily in direct mailings to customer lists and general lists in their trading area. A good part of their present business. they feel, comes from word of mouth advertisitg.

While some of their high volume com. petitors sell paneling for as little as $1.99, Stafford's lowest priced panel is $3.99. "We're trying to upgrade the customer," Stafford explains, "we think it *'ould be short-sighted to unload junk on the customer that I wouldn't use to line my garaple."

One of the things they offer that their high volume competition can't is salesmen who can help the customer with his do.ityourself problems. Minimum wage clcrks seldom (if ever) seem able to counsel the customer on the products for sale at the discount houses.

Not so at Stafford. His experienced sta{f recently got an on-the-job brush up course on remodeling by doing much of the {ixup work done in the showroom. Now when someone asks how a product should be used, they can confidently say. ''when rve were re-building this section, we used, this, that, and did thus and so, etc. Prettr. tough to top that kind of sales lloor expertise.

Gale Stafford graduated irom LICLA in 1940 and later worked as a store manager trainee for Sears, Roebuck. A{tel the war, he joined Mullin Lumber Co. in San Gabriel (1946) and worked for thern until 1963 when he bought his present business which was then operating under another name.

He is a past-president of both the local Chamber of Commerce and the Rotary Club. "fu a businessman in a community," he explains, "you have an obligation to contribute something."

For the future, they are considering the possibility of branch yards, though present business conditions don't currently justify them, they feel. The near term will be a continuation of the present condition (Stafford terms it a recession even if the government doesn't) and it will get worse, he feels. "We still haven't turned the corner.tt

But what ever happens, we feel Gale Stafford and his crew, headed by capable man. ager Jim Boyd, will be right on top of the changes and coping nicely.