HOME GENTER MERGffiANT

BILL FISHMAN

Bill Fishman & Affiliates

11650 lberia Place

San Diego, Ca.92128

IN MY last column I suggested lumber Iand building material dealers must consider different strategies to be positioned for:

(A) Contractor, commercial and industrial customers

(B) D-I-Y customers

Here are some of the elements to be consideied!

SITE LOCATION

(A) For Commercial & Contractor Customers

Almost any site location will suffice if it's within a short drive and relatively uncongested. Depot street is okay. Parking for trucks and pickups.

(B) For D-I-Y Customers

Nearby. Main Street. Well lit safe neighborhood. Easy access in and out. Safe left hand turns across traffic. No competition between d-i-yer's home and the store. Allow ample parking cars and pickup trucks.

MERCHANDISE MIX

(A) For Commercial & Contractor Customers

Heavy toward commodity items. In stock on commercial building needs. Heavy duty professional tools and hardware. Long lengths. Large size containers. Bulk pack merchandise. Availability of special orders.

(B) For D-I-Y Customers

Cut sizes. Promotional brands and models. Bubble and blister packs on pegboard. Household size containers. Progres- sional sizes and price points. "Packages" of materials to complete projects.

(Of course the merchandise mix for the aftermarket can easily be expanded beyond the requirements of the contractor, commercial and industrial customer.)

VISUAL PRESENTATION

(A) For Commercial & Contractor Customers

No visual presentation of commodity items is required. A chalkboard listing of "instock" and "outs" is helpful. Minimum requirements for display of non-lumber items.

(B) For D-I-Y Customers

How-to-install displays. Promotional end caps. In-store lumber inventory. All merchandise price marked. Descriptive and promotional showcard signs. Fact tags.

STORE HOURS

(A) For Commercial & Contractor Customers

7:30 a.m. opening weekdaysminimum till 4:30 p.m.

(B) For D-I-Y Customers

Evening shopping hours. Weekend shopping hours.

Services

(A) For Commercial & Contractor Customers

Commodity dcliveries. Fireengine special dcliveries. 30day company accounts. Telephone orders. Blucprint takeoff estimates. Salesmen's visits to ol'fices and job sites.

(B) For D-l-Y Custonters

Shopping carts, lumber carts, hand baskets. Consumer credit (bank cards, e1c.). Installation instructions. Assistance loading heavy purchases. Free twine, f1ags, cardboard car top carriers.

Availability of installation for somc merchandise. Cutting services. Clinics and demonstrations.

SYSTEMS & PROCEDURES

(A) For Commercial & Contractor Customers

Contractor desk or counter. Tickets written for pr.rrchases.

Tallyman loading of lunrber and commodity'items.

(Ii) For D-l-Y Customers

Central checkout. Quick check and credit appraisal. Rainchecks. Exchanges. Ref'unds. Price changes. Employ'ce discounts.

PRIC]NG

(A) For Commercial & Contractor Customers

Full margins except on competitive commodities. Negotiable corporate discounts.

(B) For D-l-Y Customers

Market competition dictates some selling prices. Variable pricing. Pricing fbr logical price steps. Promotional pricing for traffic. Lorver overall margins to be compensated by more lnventory turns.

Promotional Activities

(A) For Commercial & Contractor Customers

Small budget. Pinpointed mar- ket easily reached by direct nrail. Minimum frequency of promotions. Cifts and Premiums cement relationships. Booklets and catalogs effective. Outside advertising and production sources are cost effective.

(B) For D-l-Y Customcrs

Weekly adrerlising is a must. All mass media is a consideration. Special purchasing for advertising. Soliciting and administering cooperative advertising funds. In-house advertising production.

\A hile the gra\\ ma\ annear greenerit's not an easy step to position from a contractor to d-i-y operation or from a d-i-y store to contractor operation. The step requires financial, inventory, and operational considerations as rvell as a shift in attitude lor management and staff'.

Don't make it a quick decision ...make it a realistic one.

CHUCK

executive director

lll/HEN a customer blows uP, here UU are some tips to help employees to tactfully deal with the situation and the stress:

(1) Let the customers get it off their chests. The average outburst lasts about two minutes.

(2) Try to remain calm and keep a level tone of voice.

(3) Listen carefully and ask questions until you know exactly what the problem is.

(4) Put yourself in the customer's place, but don't waste time apologizing or making excuses. Customers want understanding and action, not explanations.

(5) Tell what you can do to help. If you have to refer the problem, introduce the customer to the person who can help and explain the situation.

(O Follow through. See what appropriate action has been taken so that the customer doesn't fall through the cracks.

(7) Speak first, since the one who starts the conversation can often control it. Introduce yourself, since it's easier for a customer to be angry with a nameless company representative than with an individual.

Due to the efforts of the Alliance for Fair Competition, a formal coalition which includes the National Lumber and Building Material Dealers Association (NLBMDA), the Federal Trade Commission has decided to move forward with an investigation of utility companies' contracting and merchandising practices. NLBMDA, together with a number of

Washington-based contracting, supply and professional trade associations, has been presenting to the FTC substantial evidence that regulated utility companies are increasingly competing with lumber and building material dealers and other private businesses under the guise of increased energy conservation efforts. Specifically, the association-based coalition has reported to the FTC incidents of utility companies using unfair marketing practices, such as including detailed service contracts in customer billings, and examples of how utility companies are using predatory pricing techniques by selling certain energy saving equipment below actual purchase cost.

The FTC investigation is expected to be lengthy, consisting of two separate analyses. The Commission's Bureau of Economics will investigate the overall effect of regulated utility diversification into merchandising activity and select five or ten utilities for an exhaustive study of their business practices, especially focusing on the utility company's effect on local private businesses.

Dealers are requested to submit to NLBMDA any information concerning perceived unfair utility competition in order to assist the FTC in its investigation. The success of the investigation will depend on the amount and the quality of information which is received by the Commission.

PGUS New Service Center

PalmerG. Lewis Co. has replaced its 15 year old Everett, Wa., service center with a new facility at Marysville.