ARIZONA FIRMF'NDS Remodeling doesn't cost, it pa ys

THE newly refurbished O'Malley I Building Center in the small western Arizona town of Yuma is proof positive, if any were needed, that heads up merchandising is in no way strictly confined to major metropolitan centers.

Under the aegis of manager Bob Ramsey, the firm has concentrated on being a full service yard and has grown from about $720,000 annual gross five years ago to $2 million last year and expects to do about $2.5 million this year. Ramsey knows the business literally from the bot. tom up. He began with the Yuma yard 26 years ago as a day laborerl six years ago he was promoted to manager.

While the present breakdown of bushess shows 63/o -7 O/o ontractor, the remaining third in consumer business brings in 5O/o of the profit, so the recent remodeling was not an unmindful efiort to get more of the more profitable slice of the business.

Since remodeling, the panels are up by the front door, oppooite an attractive display of major appliances. The small stufr is now in back, along with occasional impulse items, such as novelty radios, wash cloths at 5/ $], women's silk hose or golf balls at 4/$1, limit four per customer. They generally try to sell up from the leader lines.

Color coding with painted panels is used to mark difierent departments in the 100x120' showroom. The interior is well lighted, aisles are uncluttered (shopping carts are used) and there is a neat-as-a-pin look to the operation that helps draw the women trade. The parking lot was also resurfaced and both interior and exterior were repainted.

Reaction has been very good, from not only the customers but from their 25 employees as well. Ramsey recognizes the importanc€ of good employees, satisfied with their jobs, and can point to a turnover rate that is practically nil. Newest of the inside staffers began five years ago. Assistant manager Walt Brooks, who signed on l7 years, began, like Ramsey, as a day laborer.

Service is no idle term at O'Malley's Yuma yard, q6s of 14 in the chain. They have a drafting department staffed by a fulltime draftsman/ salesman to aid contractor customers and they work hard at selling them packages, such as modular kitchens, complete with appliances. They do not compete with their contractor customers as contractors, but rather maintain a list of relialle contractors and individuals for their customers who need work done.

Story sI q Glsnce

Remodeling enforces savvy small town retailer's commitment to service bright, modern interior, well lighted, has already drawn new customers . . . good merchand'ising methods show in well ordered operation.

In these hot summer months they open an hour early, at six, as a service to the oontractors who work from 5 a.m. to 2 p.m. in an effort to beat the intense desert heat. Normally, hours are 7-5 pm., with a half day on Saturday.

The sales force has taken outside courses and can read and takeofi blueprints. They encourage employees to take night study courses; currently one is studying refrigera" tion and one is even working on conversational Spanisl! a big help with Yuma's large Latin population.

Bob Ramsey sums up the attitude on service when he says, "we all .do all jobs when necessary, I'll go out and load cement if a customer wants it." Contractors are handled at the same counter as walk-in trade. When the builder comes in, a salesman stays with him until he has completed his buying. Then they use either the p.a. or an intercom to alert the yard crew that the customer is on his way out to the yard to pick up bis materials.

MOYE'EM OUT

As most everywhere, pre-finished paneling is a popular seller and their prices run from $2.99 to $25 a panel end encompass nearly 50 finishes. A recent ten duy sale moved 1600 sheets. The sales are important for another reason, notes Ramsey, as they bring in new customers, an especially important consideration in a growing town.

The town has a population of 28,000 and a trading area of about 40,000; competition at present includes a Foxworth-Galbraith yard, two local, small cash & carry opera. tions and Economy Lumber, a loeal independent. The arrival of a mrrcs merchandiser is not far oft, guesses Ramsey, Additional competition al.so comes from Barr Lumber in the Cali" fornia town of El Centro, some sixty miles West.

The firm carries BankAmericard and MasterCharge as well as 30 day charge accounts and budget accounts. They also use Standard Credit Co., owned by O'Malley. They put owed money into a note which can be paid ofi, thus getting the money owed them out of the accounts receivable.

Advertising is done through ads in the local newspaper as well as tabs distributed with the paper twice a year at sale time, when they also uge saturation radio to hypo sale trade. The tab and the ads are prepared by the main O'Malley office for the use of all the yards.