How you can save on G a, delivery costs

T'S EASY to compute daily the profitability of delivered sales.

First, you must establish the cost per driven mile. This may be done from past experience, from a budget or an estimate. A good figure will be somewhere between $1.60 and $1.80 per mile. lf you know what your total delivery costs were for a given period of time and number of miles driven, you can identify an exact cost from "history" or "observation."

Second, you must know what your pretar( profits have been or what they are budgeted to be as a percentage of sales. Generally, American companies average 390 of sales as pre-tax profits. Yours may be different, but you can identify the percentage from budgets or operating statements.

Finally, you must determine what per- centage of your delivered sales the delivery costs represent. In other words, what is the percentage ratio of the dollars spent to make deliveries, and the dollars earned by delivered sales? This varies across the country, averaging 590 to 890 of the value of materials delivered.

For illustration purposes, let's use $1.70 per mile, 390 pretax profits and 690 of sales. Each day you must collect the number of miles driven by the company's trucks and the value of the materials delivered. As an example, let's say there were 450 miles driven this date to deliver $9,000 worth of merchandise.

Daily Sales

Pre-tax Profit @ 3qo Delivery Cost Ratio @ 6s/o

450 Miles @ $1.70 $ 765

The sales price of $9,000 included $270 for profit and $5,10 for delivery costs. This totals $810 which is what the company planned or budgeted to recover in the sell- ing price of the goods. The $1.70 per mile to travel 450 miles is what the company "paid out" to make that day's deliveries. Thus, the $810 recovered by sales completed must be reduced by the "out of pocket" spent to make deliveries for the day, or $765. The difference of $45 is the profit made for the day on delivered sales.

Questions on delivery costs? Send them to this magazine at 4500 Campu Dr., Suite 480, Newport Beach, Ca. 92660. Wally Lynch will answer them in future issues. This is your chance to take advantage of his expertise in cutting your delivery costs.

When the cost of the miles driven exceeds the value of the dollars recovered through the sales made, the company loses money. It only takes a few minutes to do, but it keeps you right on top of the profitability of your daily delivery performance. More importantly, when losses appeiu, corrective steps can be made at once.

"Monagernent Srrn'e-vs the Black Hole of Deliverl*, " divided inlo Ihree separale dollar volume manuals, under 32 rrrillion, $2-5 million and over $5 ntillion, is available for $45 from Builders E.rpress lnc., I1550 Plano Rd., Dallas, T.r. 75243, Attention: Wallv Lvnt'h

EPAS Ruckelshaus addresses wood preseruers

T WO-TI1\l H fornrcr aclntinisr rlrtor I o1' thc Enr ironnrcntal Protcction Agcncl \\'illianr D. Ruckclshaus rold the Ameriean \\'oocl Preserrers Association at their rccent annual mccting that thc basic F.PA liiu uas fla*cd, ine(,rnori.rtuLi irt.tlrreel 3r.1111p1i1r11. and that thc inhcrent distrusr ol' rhe exccLlti\c branclt b1 thc lcgislatir,e has esscntiallV turnecl the cnVironmental problcnt o\cr to the courts.

Story at a Glance

Former EPA chief calls for rea. sonable application of environ. mental laws. J.N. Kressbach elecled AWPA president. . nexl convention set for Phila. delphia in 1986.

Ruckelshaus said that strolls cnrottOtls COnt ittue t() Surrouncl cnVirctnrnental qucstions and that rltat factor hacl lrroduccd tlte unt'ortunate result ol' preventing nceded changc's in tltc la\\ to corrcct thc \tatutcs. Notin-e thc rcrnarkable pfogrcss ntaclc rn clcaninc Lrp tlre- air and \\ater, hc callcd l'or rnorc analysis of u l'rat is scnsiblc regLrlation. Ruckclshaus contcndecl that thc adntinisrratiolt ntust cstablish standarcls on risk a\sessntcnt :o that crtrironrlentiil hazards nrav bc realisticalll' er..alLrared. I-le clcscribcd the corrcction oi thc cn',ironnrcntal la'"r,s and thcir reasonablc application a challengc tor ail citizc-ns, in and our ol' in cl ustr)

Noting thar the EPA and the riood prescrving rndusrrl,' had lclng been al loggcrheads. Ruckelshaus said l're ll'lr.t\r lltltt ft) /tLtL'L tit)

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KEYN0TE speaker (1) Wi iarl Rucre shaLrs and A Baxler (2) Sanclra & T lr Be,,n (3) P;rLr I'lcC al l l.r e (e e,r Duane Be (4) Don & Artnes Scar es Ketth Pic(er (5) Bcb ri^,'a.cjs (er C arf (6) E;rr i eid,t: e l,.ir iJcsfe. (7) B l"ei,'ilrrr Lc Funchess B0DlrV Wa ke' (8)

J0lrn K ernhe:t1 B l,rirrs (9) rr Beste5:,

Cr,:'e T"li'r,i: (10) Plr iJrels Drck llr:"0 J r,rionre:ioro (.11) SleveI rrt,t L" t rr r'r,rr'(12\o.. -: : B :-

(13) -t^, r, r,rsi till 3 sl'00 (14) .l cr. rer-re

*1,,',,r:c poi;e (15) B,rflritr: & llr! Sr.rrr'r

J,'| Bailhr ae {16) Jlf r^ 3'e'r'r,r'. ,lel:

Llr r." (17) Sr ' ei' & .|ck B eu^,rer D cf

Jalc(s0n (18) Rorhr:ri l,"l ctr1l ,le" 3'0;c'r.ro1

Ted Hewitt and Kathy Perkins are new to sales at Pooser Lumber Co.. Sacramento, Ca.

Bob Bojorquez is retiring from Canahl Lumber Co., Anaheim, Ca., after 35 years in the industry and moving to Santo Tomas, Baia California, Mx.

Jack R. Gates has been re-elected pres., West Coast Lumber Inspection Bureau Board of Directors for 1985-86. Other members: Ralph Lulay, Frank Lumber Co., Mill City, Or., v.p.; Ralph Wallen, Boise Cascade, Healdsburg, Ca., sec.-treas.; Carl Allison, Sun Studs, Roseburg, Or.; Bill Davis, Medford Corp., Medford, Or.; and Jerry Huff, Huff Lumber Co., Santa Fe Springs, Ca.

William Matthews, Lanoga Corp., Seattle, Wa.. is a new member of the Home Center lnstitute's advisory council.

John Carlson, sales mgr., S.D.S. Lumber & Plywood Sales, Bingen, Wa., retired May 3lst. Leslie Campbell is his successor and Jon Ohlson is assistant sales mgr., according to Bruce R. Stevenson, pres.

John Hall is now purchasing director at Don Able Building Supplies, Juneau, Ak.

Teddy Martin has joined sales at Henderson Lumber Co., Boise, Id.

Mark Calvert is now a full-time sales staffer at Plum Creek Timber Co.. Columbia Falls. Mt.

Ernesto Castellanos is now co-manager of 84 Lumber. El Centro, Ca.

Steve Babin, Handyman Home Centers, San Diego, Ca., has been promoted to v.p., distribution, according to Harvey Rosen, pres.

Mike Gordon has joined Brady International Hardwoods Co.'s international dept., Renton, Wa.

Lyall Bell, v.p. Sauder Industries, Vancouver, B.C., is retiring this year after a distinguished 45 year career.

John Bowen has joined sales at Boise Cascade's lumber sales dept., Portland. Or.

Bill Griffin, owner, Griffin Hardware, Santa Ana, Ca., and Dennis Swanson, Steamboat True Value Hardware. Steamboat Springs, Co., are set to be panelists at the Hardware Industry Week,/National Hardware Show.

T[d Gilbert, Product Sales Co., Orange, Ca., and his wife, Rosemary, recently vacationed in Baja California, Medco with ttry and Kathie Louvier, Louvier Finish and Supply, Santa Ana, Ca.

"Chal" Cross has retired from TruckeeTahoe Lumber Co., Truckee, Ca., after 39 years, through he continues as pres., Embree "Breezie" Cross is now gen. mgr. and c.e.o.

Larry Fleming, is now gen. mgr., panel products, Simpson Timber Co., Seattle, Wa., according to Thomas R. Ingham, Jr., v.p. northwest operations.

Gene Anderson. American Wholesale Hardware, Long Beach, Ca.; Lawrence C. Baker, Jr., Fairfax Hardware & Garden Center, Denver, Co.; Daniel R. Colborn, W. K. Montgomery Co., Inc., San Diego, Ca.; G. D. Hunton, Federated-Goodkin Corp., City of Industry, Ca., and Alan Moskowitz, Leight Sales Co., Carson, Ca., are among 20 judges at the 1985 Hardware Industry Week, Aug. 12, in Chicago.

Carolyn Schottle has been named national credit mgr. for Metal-Fab., Inc., Wichita. Ks.

Lyle Schafer, Ace Hardware of Napa, Napa, Ca., and his wife, Jean, took a trip to Houston, Tx., recently.

Oint and Linda Bower. Mariner's Forest Products, Santa Ana, Ca., have returned from recent west coast of Mexico fishing trips.

Jack Koppersmith, once chief financial officer for Revlon, has been appointed acting pres. for Evans Retail, Miami Beach, Fl., a division ofEvans Products Co., still restructuring after bankruptcy.

Carol McXasson has joined the sales staff at Publishers Forest products, Lake Oswego, Or., according to Dave Milhr. Mike Hatfield is now lumber products mgr., Weyerhaeuser Co., Fresno, Ca.

F. James McDonald, pres. and c.o.o., General Motors Corp., has been elected a director of Georgia-Pacific Corp., following the retirement of Albert J. Bows.

Harry A. Merlo, chairman and pres., Louisiana-Pacific Corp., is a new member of the board of directors, IC Lndustries Inc.

Tim Collins has been named assistant gen. mgr., Van Daal Alaska, reporting to Gary Aldrich, gen. mgr.

Don Hudock is new to sales at Frontier Cedar Sales, Eugene, Or.

Charlie Willett is now sales mgr., Oregon Cedar Products, Springfield, Or.

Stephen V. Snavely has been elected pres., Snavely Forest Products; Christopher M. Snavely has been elected chairman. Other officers included Donald L. Steinhart, Pittsburgh, Pa., sr. v.p.; Fd W. I)achtler, Pittsburgh, pa., v.p.;

William R. Baugh, Denver, Co., v.p.;

Christian W. Lueck, Phoenix, k.,r.p.;

Robert W. Starford, Dallas, Tx., v.p.; and Robert FIlison, Pittsburg, Pa., treas.

Alan Turner has been promotd to national sales mgr., Schlage Lock Co., San Francisco, Ca., according to John Gamble, mgr., marketing,/sales.

Carl R. Eckardt is now pres., chemicals div., GAF Corp. John A. Brennan has been elected pres., building materials div,, both continue as senior v.p.s of the corp.

Larry Baugh, Westmark & Associates. Costa Mesa, Ca., is back from a recent No. Ca. business trip.

William Iatimer of Willamette Industries. Inc., L-ebanon, Or., has been elected pres., Pacific Lumber Inspection Bureau, succeeding James Robinson. John Connery of B.C. Forest Products Ltd., Vancouver, B.C., was elected hrst v.p.; other officers include Ron young, Weyerhaeuser Co., Tacoma, Wa., v.p.; and George Thompson, secretary-mgr.,/ treas.

Dick Kennedy, retired former owner of Kennedy Lumber Co., Fresno, Ca., is now with Mid-Mountain Realty, Oakhurst, Ca.

Jeff Raymond has been selected sales mgr. for Alaska by Westem Cabinet and Millwork, Inc., Woodinville. Wa.

Bud Peasley has retired from Erickson Lumber Co., Marysville, Ca. John Maph is now handling dimension sales, according to Tony Ulloa, gen. mgr.

Thomas J. Tomjack is now exec. v.p., sales, North Pacific Lumber Co., Portland, Or.

Dave Jones has been promoted to v.p., gen. mgr., Foster Lumber Yard, Vallejo, Ca., according to Jimmy Jones, pres.

I)enny McEntire, Harwood Products. Willits, Ca., was a recent So. Ca. business visitor.

Tim Sterrenberg and Bill Hemphill have joined Workmans Forest products, Clackamas, Or.

Lloyd Hogden is now mgr., manufac turing, for Potlatch's western div. Bill Tufts is the new gen. sales mgr., western wood products div., Lewiston, rd.

David Stanley, pres. of Payless Cashways, now has the additional title of chairman of the board of directors.

Jarnes W. Grfrvalski is now regional distribution center mgr., Ace Hardware Corp., responsible for the distribution center in Yakima, Wa., as well as three eastern DCs.

Bill Friedlander and Marlis Jessick are now traders with Jewett-Cameron, Lake Oswego, Or.

Jeffrey Van Cott, exec. v.p., Unadilla Laminated Products, Unadilla, N.Y., was elected pres. of the American Institute of Timber Construction; Russell P. Wibbens, American Institute of Timber Construction, Englewood, Co., remains exec. v.p. and secretary; Warren T. Wier, Weyerhaeuser, Co., was elected v.p. and Joseph Jucke, pres., Timberweld Manufacturing, Billings, Mt., elected treas.

Scott Watson is the current pres. of the Sacramento (Ca.) Hoo-Hoo Club for this year; Mark Christensen is first v.p,; Rick Warner is second v.p., and Tom Overbeck. director.

Reg Justus, pres., Just-Woods Forest Products, Portland, Or., and his wife, Jill, and their three children spent spring break in the Washington, D.C. area.

Tom Hudson is new to sales at Western Timber Products, Coeur d'Alene, Id.

Miles Butterfield has been named the new president of Simmons Hardwood Lumber Co., Montebello, Ca.

Daniel F. Grebenc has been chosen to succeed Bill Yeager as sales rep. for Simpson Door Co., Seattle, Wa., in Co., Ut. and Wy.

Ralph Crabtree, Rim Forest Lumber Co., Rimforest, Ca.; Carl Henoch, Product Sales, Orange, Ca.; Patric Taylor, Product Sales Co., Orange, Dale McCormick, Home Lumber Co., San Bernardino, Ca.; Paul Haacke, Tim Gaffney and Richard Miller, Fremont Forest Products, Whittier, Ca.; Jim Julian, Champion Lumber, River' side, Ca.; Jim Golding, Golding Sullivan Lumber Co., Westminster, Ca.; Dave Waterman, Yucca Valley Lumber Co., Yucca Valley, Ca.; Dale Newlon, Boise Cascade, San Diego, Ca.; and Harold Schuh, Western American Forest Products, Rialto, Ca., participated in the sixth annual Death Valley Motorcycle Run.

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