Modest looking yard sets out to woo retail trade by ] remoq

66 A STORY in The foIerchant about a n y"". ago gave us the idea," explains Jerry Higman, vice president, Re' liable Lumber Co. "Your magazine al' ways pushed the idea of a streamlined re' tail sales operation to ofiset depressed housing starts."

Prior to the 1965 building slump, the vard concentrated 907o of its business in tontractor and industrial markets' Since launching wholeheartedly into the retail arena, Reliable has discovered a terrific growth potential.

Setting out on a new tack, the Rosemead, Calif., yard remodeled its show' room and set aside the front half of the yard for retail trade. Purchase of the cor' ner property gave the company 3.7 acres and when remodeling is completed, 9,000 sq. ft. of showroom will be devoted to re' tail.

Stocking everything from water heaters to mail boxes, the yard has more than doubled its Saturday trade with an average sale per customer of $10-12. Starting t}e switch over in January, they find their retail business growing by leaps and bounds. 'oWe're not unhappy or disappointed," said Higman, with the sales records of any specialty items."

Since advertising is new to Reliable, they spend only $800 per month on it and concentrate on local papers.

Covering a seven mile trade area with advertising, the ads bring in cash and carry customers interested in a variety of products.

Since the beginning of the year, they have been computerized with accounting broken down into lumber and non-lum' ber percentages. "We find the computers help with accuracy and speed," Higman said. In just seven short months of rising sales, the company has outgrown the computer program it was using. "Last year we grossed $2.5 million; and after a slow start in industrial business we hope to gross in excess of $3 million," Higman related.

Sfory at q Glonce

Retail sales double as industrial/ contractor oriented yard shifts emphasis to retail market large stock draws customers. merciless competition in 7 mile urban trade area.

Taking care of the growing retail and non-retail traffic are 2I employees; five in management and desk sales, Il in tlre yard, three are office personnel, two are outside salesmen. Employees are hired through word of mouth and the union. W'ith four regular drivers and five trucks, delivery is free.

Founded in 1929 by Jerome Higman and his wife Anne, Reliable has been managed jointly since Higman's death by Jerry and Dan Higman with the helping hand of their mother. Both men were raised in the business and have divided management chores between them. Jerry Higman is in charge of contractor/industrial sales and purchasing rough lumber. He's married with two children. Dan supervises the yard and purchases redwood, plywood and pine. He's married and is expecting his first child in December.

They once considered plans to open a new branch but shelved them because of high interest rates and the present unpredictable economy.

Management places much stress on service. Delivery is free. And while the company doesn't handle or do prefab or remodeling work, it's always glad to refer customers to contractors that do. Minimum charge for cutting lumber is 501, charged by the job to retail consumers. Major credit cards are accepted, with all contractor/industrial business checked through the Building Material Dealers Credit Assn. which Jerry Higman calls, "very helpful."

Competition for consumer business is keen with an Ole's Hardware Center two blocks away and Angel's discount center nearby. Reliable is the only traditional lumber yard in the area though. And they're 30 carloads of lumber over last year's 170. "We lease property on the spur to store the lumber," Higman explained.

The only problems encountered since expanding their retail market are minor. Power tool sales tend to sufier because the manufacturers give customers little or nothing to work with. The tools themselves take up a lot of space and require