NEWS

CHUCK LINK executive director

A coupeNY that borows to pay rFinterest on a loan can lose its interest deduction.For instance,a company cannot take the deduction if the interest was borrowed from the same lender who made the original loan. Example: A company takes out a $20,0fi) 90-day loan from the bank. When the $1,000 interest is due after 90 days, the company pays the interest by taking out a new $21,000 90-day loan. In this case, the $1,000 is not deductible. This rule also applies when interest is added to a policy loan instead of being paid in cash.

The rule has been challenged but upheld. If a company must borrow to make an interest payment, it should borrow the interest from a second lender to avoid losing the deduction. The restriction also applies to a discounted loan. If part of the proceeds are specifically earmarked to pay the interest, the interest deduction is disallowed.

Plans and proposals for converting U.S. measurements to the metric system appeared to be heading for extinction as the Senate Appropriations Committee voted recently to terminate the government's Metric Board. Funding, according to the committee's bill, will be provided through next September 30. The forest products industry's own metric planning package was put on the shelf in 1978. Wood products sector committee chairman Lowry Wyatt said at that time that the industry had completed its initial planning, and since there was little incen- tive for conversion to metric units, his committee would suspend its activity until a government or construction industry commitment to metrics emerged.

Of interest to Oregon retailers is S.B. 918 relating to the problem of bad checks which became law Nov. 2. The civil procedure this new law provides is aimed at stimulating payment by the writer of the check. Leverage is provided by the provision for damages of $100 or three times the value of the check.

Your success in using this procedure will depend on a series of conditions:

(1) The manner in which you cashed the check. If you do not have a good and well-disciplined checkcashing procedure, you are significantly reducing the chances of collection and civil damages.

(2) How accurately you follow the procedures provided in the statutes.

(3) How accurately you follow the procedures established by the local law enforcement agency involved.

(4) The limitations and attitude found in the court system.

(5) Your own management attention to the responsibilities that will make this program effective.

Al Meier, Fife Lumber & Hardware, Tacoma, Wa., has announced that his four locations in Tacoma, Puyallup, South Seattle and Federal Way will operate under the company's new name: Al Meier's Building Centers.

Marion F. "Moe" Moyer, Eugene Planing Mill, has retired after 36 years with the firm. He was Credit Manager for 30 years. Moe served five terms as WBMA district director, was actively in- volvedin several WBMA committees and was chairman of numerous WBMA Golf Tournaments. His many activities included serving as president of Lane County Lumbermen's Association.

Lumbermen's of Washington, Inc., Shelton, Wa., has been purchased by the Lanoga Corporation. Larry Knudson, Lumbermen's president, said there will be no change in personnel at their five locations in Shelton, Olympia, Lynnwood, Winslow and Kent.

Al Disdero Lumber Co., Portland, Or., has sold its Boise, Id., branch to former employees Mike Wells and Jay Henderson. The new firm, Architectural Lumber Co., distributes specialty wood products.

Congratulations to Larry Humphrey and Humphrey Lumber Co. for their new distribution facility at 3600 l08th Street, S.W., Tacoma, Wa.

Home Show Comes West

A Western Home Center & Building Materials Show tailored to the special needs of retailers and distributors in the Western states will be held Oct. 2l-23 at the Anaheim, Ca., Convention Center.

More than 10,000 are expected to attend the new show. A complete schedule of seminars for retailers will be offered under the direction of William F. Fishman, a columnist for The Merchqnt Mogazine and director of seminars for the National Home Center Show.

An advisory board of Wcstern retailers, distributors and manufacturers is being formed. John Berrl', director of the trade sho* division for Vance Publishing, is spearheading arrangements with Fishman. Marvin Park & Associates, sho*' management firm for the national shou', rvill manage thc nen' shorv.

Remodeling Market Up

The ialling home building nrarket appeaf s to be propelling thc rernodeling and rehabilitation markct to ne\\ height s.

Figures for home improvement erpenditures in 198 I are $47.,1 billion, compared u'ith S38.8 billion in 1978.

According to a surve)' by the National Association of Home Builders, the average residentitrl remodeler grossed 5298,000 on 20 jobs during the first six months of l98l

The most I'requcnt home irnprovemcnts arc ne\\' garage s and upclatcd bathroorns.

New Wood Promotion Unit

\'lore *'ood prornotion is the goal of the neuly formed Wood Products Council, a coalition of forest industrl'associations.

N{ernbers o I the council, u hich will step up and coordinate joint efforts to stin.rulate demand for uood products are the Southern Forcst Products Association, \\'estern Wood Products Association, Amcrican \\'ood C'ouncil, American Ply'*'ocld Association and National Forcst Products Association.

Harrl N. \\'illiams, \\'illiarns Forest Products Corp., Clevcland,

Tx., secretar-v of the Southern Forest Products Association, is chairman. Carl Darrow, exec. ".p.of thc American Wcod Council, is the secretary. \\'illiam Robison, r.p. and gen. mgr. of the American Plywood A::ociation, will serve ss sleering committee chairman.

Joir.rt association activities rvill be planned and coordinated by the steering committee. Affiliate membership is open to organizations with technical and other supporting role s.

Distribution Workshop

Tours o1'the distribution centers o1' Acc Hardware, California Hardrrare Co. and Budrori' and Co. are schcduled for those attending the National \\'holesale Hardrvarc Association distribution center u'orkshop at thc (iranacla Rolale Hornetel itr Covina, Ca., Junc 9-l l.

Speakers ri ill include Clcorge Harris, director ol' sccurity, Ace Hard*arc Corp., Chictigo, ll., and Chris Christianson, C'hristianson Comr.rr.uricut ions, Scottsdalc, Az.

Wood Values Adjusted

A recent adjustment in national engineering standards covering wood's compression perpendicular to grain has enhanced the use of major Western lumber species in engineered structural truss assemblies.

All commercial U.S. softwood lumber species benefit from the standards change, according to Neal I. Pinson, director of wood engineering for the Western Wood Products Association, but one of the more significant is hem-fir. (Hem- fir is a grouping of hemlock and true fir species recognized by the American Lumber Standard, and is produced in volume by many Western lumber manufacturers.)

"The standards change gives appropriate grades of hem-fir a new capability to be used in trusses with longer spans or to carry heavier loads," Pinson said. "Machine stress-rated ES-LP (another species grouping consisting of Engelmann spruce and lodgepole pine species) will also benefit in the same way.

"Every lumber species which has been limited only by 'compression perp'values in the past will be receiving more consideration for engineered truss designs in the future."

For instance, the hem-fir species group already had the bending (Fb), tension (Ft) and stiffness (MOE) properties desirable for truss use, Pinson noted. Only the old compression "perp" numbers kept wood of this species group from meeting all truss criteria.

This compression property revision was made in two national

Western Lumber

SPECIES AI{O

SPECIES GROUPIl{GS

0oughs Fir-Lrrch materials standards (ASTM D245 and ASTM D2555) following extensive studies.

Truss assemblies are used as structural components in construction of individual homes and low-rise commercial and apartment buildings.

Design values for major Western species are included in the table shown. These are being included in supplements to Western Lumber Grading Rules '81, published by WWPA.

FcI VALUES UPPED

How To Improve Profits

(Continued from page 12)

Supervisors con provide efficient ond thorough training based on the department's specific selling requirements.

Defining Selling Zones

(1) Is each store divided into control centers or zones that are related to cash registers and logical merchandise groupings?

(2) Have time requirements for all customer service and support work been determined by selling zone?

(3) Are staffing requirements for each selling zone based on an analysis of sales patterns and the desired level of customer service?

(4) Are selling costs periodically evaluated in relation to gross margin when setting departmental/zone selling-cost percent goals?

(5) Have departments been identified where these selling costs are excessive?

Scheduling by Selling Zones

(1) Are customer service assignments issued by selling zones that correspond with identified traffic patterns?

(2) Are sales personnel who are assigned to a particular zone during peak hours moved to stock-related activities in another zone during slow periods?

(3) Are stock-support assignments made to cover larger areas (floorwide or storewide)?

(4) Are certain clerks assigned full-time to stock support activities?

Interselling Concepts

(1) Does the main store practice interselling on an extensive basis?

Interselling provides improved customer service and greater selling productivity potential w it hout increos i n g pe rsonne l,

(2) Is the sales register capacity adequate to cover extensive interselling?

Assign sales personnel a selling area number rather than a selling department number.

(3) Are departmental sales forces familiar with the merchandise in other departments? Soles personnel should receive training in product information, selling techniques andforward and reverse stock locationsfor merchandise in their selling area.

(4) Do variable commission rates among departments make interselling undesirable to sales personnel?

I can finish the palace today! I found all my moldings at Sanford-Lussier!

June,1982

Shiftine to straight salary basis (except on "big ticket " items) will facilitate implementation of interselling.

(5) Can department floorplans be adapted to accommodate interselling?

Changingfixtures, opening aisles and removing physical barriers ore methods of adapting spoce for interselling.

Tactful Tactics

When times are hard and sales are slow, management must be careful in the tactics it uses to combat these low periods. Pessimism in sales personnel must be avoided at all costs.

Lay-offs and terminations must be done with extreme care. Cuts for the sake of staying out of the red, tend to dilute the confidence of employees and reduce their efficiency. On the other side of the coin, salespeople who are ineffective should be dismissed immediately. Let it be known that poor performance was the reason.

Salespeople who initiate new business or perceive some solutions to the slump should be rewarded with bonuses, motivating them and others to continue this type of progressive action.

When business is slow, it is an appropriate time to train and inform the sales force on new products and how to better serve the customer. It is also a good time to study the competition and borrow their ideas or tactics in handling the hard times.

Air Drying Lumber

(Cttntinued J'ron puge l6) much wind can cause end checks and surface checks. Therefore, closer spacing during high wind months is (a\ advisable. Even when the \ '' wind isn't blowing, air drying still occurs. Air, as it enters the lift of lumber, cools. This increases the density of the air and causes it to flow down and out the bottom of the lift. Therefore, one should use large blocks for a foundation so as not to restrict air movement.

(3) Rain

(a) Theobviouseffectofrainon (5) air dried lumber is to slow the drying. However, on well air dried stock, rain can cause surface checks to reopen and remain open throughout air drying.

However, this can be corrected in kiln drying. For valuable lumber such as l0/4 oak, drying in a poleshed is advisable.

Dust

(a) Most species of lumber develop small face checks in air drying. These checks close after several weeks and are totally eliminated in planing. However, if dust accumulates in the checks it will keep them open and sometimes cause them to deepen. Therefore, air drying yards should be kept clean. Dirt yards should be oiled.

Stickers

(a) Stickers are the basic method of controlling warp. Stickers must be of uniform thickness or warping will occur. Stickers should be placed 12 inches apart on the bottom three courses of lumber and 24 inches apart on the balance of the lift. Stickers should be in a straight line exactly one on top of the other. If this method is used very little or no warping will occur.

(b) Stickers should be placed as close as possible to the ends of the lumber to restrict air flow and consequently reduce the possibility of end checks.

In conclusion, if the following steps are taken, air drying will almost always be successful:

(1) Air drying yards should be kept neat and clean.

(2) Lumber must be sorted to length.

(3) Stickers must be in a straight line exactly one on top of the other.

(4) Hard to dry species should be dried in a shed to reduce heat, sun exposure and air flow.

Fremont specializes in a large inventory of high quality Douglas fir boards, dimension, long lengths and timbers shipped from select mills in British Columbia, Oregon and California. We are con. stantly adding to our selection of western red cedar, pine, hemlock and white fir. Other species and specialty items are inventoried and included in our weekly flyer sent to all Fremont customers.

Ponderosa Pine

Incense

Anawalts Alter lmage

Anawalt Lumber Co., a 6l year-old family-owned group of seven lumber yard and home center stores in Los Angeles, Ca. has taken to the airwaves to attract do-it-yourself customers with a campaign of l8 60-second radio commercials per week.

"The object of the campaign is to create an image of consumer-orientation to attract more do-it-yourself customers. In the past, Anawalt has been better known as a supplier of building materials to professional contractors. Now we're zeroing in on the homeowner," said Gary Anawalt, advertising coordinator for the group of stores.

KING SIZE remodeling iob at United Wholesale Lumber Co. isbeihg completed by San Antonio Rigid Pole Construction Co. New buildings are replacing f ive buildings which were razeo.

Wholesaler Remodels Yard

United Wholesale Lumber Co., Montebello, Ca., is completing a 50,000 sq. ft. remodeling job on their facilities.

Under the supervision of Michael B. Esposito, San Antonio Rigid pole Construction Co., Brea, Ca., the job started with demolishing five older buildings encompassing approximately 12 thousand sq. ft. After 60 thousand sq. ft. of asphalt and blacktop were removed, the area was completely regraded and paved.

A 400 ft. long retaining wall that reaches a height of 15 ft. in some places was installed at a cost of $30,000. The footings, according to Esposito, are 9 ft. wide and 3 ft. deep.

A complete sprinkler system and underground power have been incorporated into the new structures.

Computer System Study

Designed to assist building material dealers in determining which computer systems best fit their needs, the National Lumber and Building Material Dealers Association has formed an analysis and evaluation committee.

Approved by the board of directors, this study of turnkey basic entry level computer systerns will be cochairedby Bud Howe, NLBMDA lst v.p., Carver Lumber Co., Peoria, Il., and David Kreidler, exec. v.p., Middle Atlantic Lumbermen's Association, Media, Pa.

Called MOCOMP, the program will concentrate on systems costing approximately $25,000. The analysis will also review lease programs which allow the dealer to invest as little as $4,500.

Coordinated through the NLBMDA federated associations, the program will enable dealers to purchase equipment and programs at reduced prices under national contract arrangements developed by NLBMDA. Dealers also will be assured of continued service and have access to on-the-job employee training and same day repair service.

Selected systems will be displayed at the annual convention, Nov. I 8-20 at Disney World, Orlando, Fl.

New Grade, Same Product

A change in the grade stamp on finger jointed lumber has been announced by the Western Wood Products Association. In the near future the product will be stamped as a certified exterior joint (a change in name only) meaning that it can be used interchangeably with all solid sawn lumber even in exposed environments.

Houseware Sales Rise

Sales of America's housewares manufacturers topped a record $19 billion in l98l and are expected to exceed $33 billion by 1986, Ronald A. Fippinger, managing director of the National Housewares Manufacturers Association, said , in announcing the release of the l5th annual marketing research study of housewares manufacturers by Angell & Association, Inc.

Housewares prices went up in 1981, according to the survey, but not as much as the year before; and fewer manufacturers anticipate increasing their prices in 1982 than did so last year.

On the retail scene, the role of mass merchandisers (including discount operations) has increased from 1090 to 28t/o of total manufacturers' sales since l!)66; while sales to department st{res have remained steady, at apt'roximately 1090. Catalog showrooms, which were insignificant as recently as l0 years ago, accounted for l09o of manufacturers' volume in 1981.

The most significant color trend development is the increased popularity of white for all product categories of housewares, both for last year and anticipated for 1982. Pastels also come on strong, especially for bath and closet accessories. Almond remains the top choice for kitchen appliances and accessories, and brown for serving and buffet products and accessories. Yellow is the "number one" color for outdoor products and accessories.

Insulation, Roofing Outlook

Modest growth beginning about mid-year 1982 was forecast for fiber glass building insulation and residential roofing markets by Jack R. Kingery, v.p. and gen. mgr. Manville Building Materials Corp.

"Strong underlying demand for housing coupled with a modest inventory of unsold homes should provide a positive influence when mortgage interest rates come down to lower levels."

He said the recent strength in the insulation retrofit market is expected

The Merchanl Magazlne to continue and improve during 1982. Though reroofing sales have lagged significantly in the past two years as a result of deferring of projects, he continued, the replacement of a roof can only be postponed so long. "We anticipate increased activity in this area as interest rates decline and consumer confidence returns. "

The outlook for fiber glass home insulation will improve along with the economy, Kingery said. "Our experience shows a concern of homeowners for energy conservation and a willingness on their part to invest in higher thermal standards. Surveys show that new home buyers are more willing to pay extra for additional insulation than virtually any other housing option."

Customer Clues

Record customer comments and criticisms in a journal and at the end of the month, summarize the responses and circulate your findings to all the departments of the company. The research might pay off in marketing and advertising plans.

We specialize in: o Redwood lumber products and hard-to-get items. o 48 hour service ontruck and trailer loads of custom milling. lf we don'tstock it, we can make it here in our new remanufacturing plant, the newest, most modern plant on the west coast.

For your inquiries call:

. DAVE SNODGRASS LOWELL WALL . STEVE HAGEN

LUMBER NUMBER'' iS 707.252.6142

Home Buyers Like Brick

Survey results published in a recent issue of McGraw-Hill's Housing Magazine, Mclean, Va., show that, despite costs, home buyers continue to prefer brick homes over other types of veneer by a wide margin.

Some 2,237 shoppers were interviewed in eight national markets including Dallas, Tx., Denver, Co., Kansas City, Ks., Los Angeles/Orange County, Ca., Miami, Fl., San Diego, Ca., and Washington, D.C.

Results showed that for detached homes 5090 preferred brick and.27v/o preferred stone. The so-called "brick cities" cited by the survey include Chicago, Denver and Dallas. Wood exteriors were popular only in Southern California. "Think twice," according to the survey, "before offering wood siding in Dallas. Only 990 say they're interested. "

The survey also showed that fewer people are shopping for homes and few expect to buy now. Attached home shoppers are less affluent than those looking for detached homes with the gap widening. Two years ago median income was $540 dollars apart; today the difference is $4, I 80.

Energy efficiency scored higher marks than ever before with insulation and fireplaces getting very high ratings. As for options and extras, the fireplace, despite the high cost, is still number one with 8090 noting that they would ask for a living room fireplace.

OUALITY C0NTR0L exercise found Hobie Cat sailboats getting the heal treatment at Wall Dry Kiln C0., Long Beach, Ca. According to Robert R. Wall, pres., lhey were heated to 140o Fahrenheit for 48 hours t0 test the quality of the foam. Faulty foam collapsed in the heat causing dimples to appear in the hulls. These flawed hulls, about 30% of the lotal of one batch, were then destroved.