OPERATING OPPORTUNITIES

WALLY LYNCH

Paid Associates

PO. Box 741623 Dallas, Tx.75243

RESEARCHERS and directory publishers say that the average busiloses 15% of its customers each

The loss is described in six categories. For every 100 customers lost, one dies, three move away, five shift their business to friends, nine change for competitive reasons, 14 are dissatisfied for product or service reasons and a whopping 68 leave because of poor employee attitude or indifference.

Nothing changes dying. Fortunately, with an annual 200lo population shift, a majority of the movers remain loyal. Getting a deal through a friend isn't as big a thing as one would expect since 50/o of 15% is .750lo of a total customer base.

One thing that really surprises those believing that they are under severe competitive pressure is the fact that only 90/o of l5o/0. or 1.35%. of all customers switch stores. Product and service dissatisfaction, while bringing the second largest loss of customers, is just over 270 of the total.

The real culprit is poor employee attitude or indifference, generating a 10.20lo loss of our customer total each year. A 150/o annual loss of customers means that every six to seven years the ball game has all new players, if we're lucky enough to have replaced the old ones. The overwhelming opportunity to retain customers appears to be in the only area that any dealer can changepoor employee attitude and indifference.

There are companies whose customer lists grow although they stay in the same or unexpanded facilities year after year. A discernible similarity of attitude is seen in these firms. They constantly attack poor employee attitudes and indifference.

Here is a check list that may be helpful to you:

(1) Hire the right person for the job through pre-hire testing of aptitude, honesty and personality.

(2) Train each person on company systems and equipment.

(3) Provide customer relations training for all employees.

(4) Implement formal sales training.

(5) Maintain product training through suppliers, etc.

(6) Communicate with employees, suppliers and customers alike consistently.

Surprisingly, none of these six is out ofreach ofany dealer because ofcost or lack of availability. Breakdowns appear to be in execution and knowing what's available where.

Space doesn't allow for a listing of help available, but if you will send a stamped self-addressed envelope with your question, we will provide some answers. You'll find that keeping an existing 10.20/o of your customers is a whole lot easier than getting a replacement for 150/o of them each year. It's cheaper, too.

What's Happening?

Keep us posted on your club or group's upcoming meetings. But please submit them at least seven weeks before the event to make sure there will be time to list them in an issue in circulation before the big day happens.

Dlstrlbutors

NO(THEAST

GEORGE MCOI'ESIEN CO.

Iron Hoce Fark North Billerica, MA 01862 (6r7) 663-343s

MD.STATE LI.JMBER CO.

2OO Industrial krkwav Branchburg, NJ 08876 (zot) 72549oO qogmEAsr

FURMAN LUMBER CO. gtst Annapotis Junaion Rd. Annapolis Junction, MD 20701 (3Ot) 792-2234

EARL RAIFORD LUMBER CO. PO. Box 5498

Ashevilte, NC 28813 (704) 253.5667

EPPERSON LUMBER SAIES. INC. P.O. Box 1559 Staiesvllle. NC28677 (7o4) 873432r

IAL LUI\'BER CO. PO. Box 3267

Huntsville, AL 35810 (205) s33-9220

UroODFORD PLYWOOD PO. Bo:r t73l

Albany, GA 31703 (9r2) 88349OO

Branches in Alabama Georgia & Florida

ITKE SIf,IES

EMPIRE WHOLESALE PO. Box 249 Akron, OH 443O9 (216) 4344545 r{oRIrtwEsT

HUUPUNTV LUMBER CO, PO. Box 99943 iacoma, Wn gA 99 (206) s84€263

T'PFER MTD WEST CANION LUMBER CO PO. Box 9328

Minneapolis, MN 55440€328 {6t2\ 425-L4N

WEST

AIL.COAST IORESI PRODUCTS, tNC FO. Box M

Chinq CA 9l7OB (7r4) 627€ssl

HEDLUND LI'MBER & MACHINE STAINING

P0. 8ox 6@38

Sacramentg CJ{ 95860 {916} 331€6ll

IMPERTAT WHOTESJIIE PO. 8ox 256O5

Salt lake City, UT 85125

(8Ol) 972-s6s6

CEDAR WEST CORP P.O. Box 5224

Denrrcr, CO 8O217

BO3)294-0077

Judging

The

log

for the best cut takes know how.

To maximize recovery, I operate a compulerized system to help analyze the log for processing through the four head-rigsaw blades.

By positioning each log properly, I make sure the computer scans the log correctly for accurate analysis. Continually checking data for correct information and overriding the computer if necessary helps improve log recovery.

P&M Cedar Products' hi-tech machinery coupled with comp elenl operation and maintenance results in higher quality products to assure customer satisfaction.

Computer Controlled Inventoryrgq1 own Truck Fleet for Prompt Delivery

Guaranteed Within 48 llours r Pre-Cut Sheet Material r Pine

Products r Plus a Full Line of Forest Products