ad.

At Willamette Industries. we've always believed long distance relationships were best suited for pen pals.

Not customers.

When our salespeople visit you, don't be surprised if they bring along a mill superintendent. After all, one-on-one contact is still the best way to higtrlight the quality and variety of our Southern and Western wood products. Lumber and plywood orders are shipped directly from our mills, but for extra support, we rely on a network of strategically placed warehouses to further fill your needs.

Either way, we've got the capabilities-and the peopleto meet your "just-on-time" requirements.

So if you're ready for a closer working relationship, call Willamette. And get used to hearing more from us. In person.

Lumber & Plywood Divisions

Western Lumber and Plywood

Albany, OR (503) 926-77n

Southern Lumber and Plywood

Ruston, LA (318) 255-6258

Atlantic Plywood Rock Hill, SC (803) 328-3U4

Dealers On Economic Woes

Concerns about business conditions and the state of the economy were aired recently in three roundtable sessions conducted for dealer members and suppliers of the Mountain States Lumber & Building Material Dealers Association in Denver, Colorado Springs and Pueblo, Co.

Among the issues of concern: o Customers seem to be trained to carry bids from one dealer to the next in order to get the lower prices. They are using bids as a negotiation tool at considerable expense to those who write bids in good faith. o Credit lnformation is inadequate, inaccurate or late. The record can show a customer as being a good risk, when in fact that same customer could owe a great deal to a number of sources and be a very poor risk. o Economic conditions have "trapped" the contractors who have a record of "robbing Peter to pay o Wholesalers (and retailers) are not enforcing credit terms uniformly, creating in some cases an even greater vulnerability with the weaker firms. The weak firms are getting even further extended and perhaps hopelessly driven toward bankruptcy. o Chapter I I bankruptcy protection has created problems. Protected firms seem to have a competitive edge and are using the "protection" as a tool. Concern was expressed over possible predatory practices, where frrms appear to be selling below cost in order to buy business. o Some national firms are using national account discounts to compete locally, making it possible for the local branch to buy from the same distributor at significantly less than the local independent might buy. o "Deep pocket" national firms seem to be willing to lose money in the metropolitan markets. Their apparent willingness to lose investment dollars takes business from local firms, resulting in losses for everyone. o While many feelthat mass merchandisers are taking very little established business from the typical urban retailer, it is recognized that mass-merchandisers have taken or are taking business that otherwise might go to retail dealers if there were no alternative. Mass-merchandisers are especially a problem in small towns around the metro area, where local people go to the city to buy many items they used to purchase through local businessmen. Many small towns are experiencing the location of major mass merchandisers right on their doorstep. In some cases the new stores nearly equal the total retail capacity of the established community.

. Customers are shopping for credit terms. In this tight economy, the contractors are looking for the dealers who can carry them the furthest and the longest.

Paul." They are running out of Peters with money to pay their growing debts.

Suggestions of positive things the industry might do locally included: o Sell the advantages of locally owned service and promote the theme of "always buy local." In Colorado, the governor is behind the theme of "Always Buy Colorado" or ABC, as are chambers of commerce. Most states have similar themes. o Promote the use of home equity loans for the purpose of enhancing home equity. People are becoming more concerned about saving and building equity. The industry needs to sell the lenders on this idea. o Seek out and develop relationships with good, reliable remodeling contractors in order to develop the growing potential of remodeling and home improvement markets. r Everyone must work harder at getting his share of what business is here to be had.

Local businesses should support those programs.

. Dealers need to become more politically involved, especially in supporting development activities. In the Denver Metro-area. such activities include support of water projects, the development of a new airport, and work with the chambers of commerce industrial development programs.

. Use co-op advertising where ever possible and make effective use of co-ops and buying groups as well as more effective utilization of wholesalers.

It was the general feeling that while business is down over 50 percent in most areas there is enough to go around for survival if business is conducted in an ethical and sensible way. Credit and credit practices seem to be the primary cause of concern beyond the general state ofthe economy itself.

Core Customer Strategy Focus

A retailer who is well located relative to core customers has a strategic advantage over the competition.

"An intensely developed network of stores in a market can be a compelling, competitive advantage, which can only be overcome by a competitor over a long period of time and at significant expense," says Mandy Putnam, Judy Julikowski and Tom Rubel, co-authors of "Locating Core Customers," a new Management Horizons report.

"In order to accomplish strong geographic positioning, retailers must be able to identify where appropriate demographic segments can be found. The process oflocating core customers has become an increasingly sophisticated task," the authors conclude. "The advent of easily accessible census data and the proliferation of geodemographic products and services. help marketers make the distinction between core andfringe components of strategies with respect to customers, competitors and merchandise."

Core customers should be the dominant focus of all strategic efforts and the target of top priority investment spending, criterion for performance superiority, rationale for market position and source of performance improvement. Fringe strategy receives subordinate focus on these points.

Demographic variables include household composition, education, housing, age and employment. Various units of geography such as zip codes, block groups and countries combined with data and data basing can help retailers to retrieve the needed information.

Grab

Stock

Western Red Cedar comes in allthe sizes, lenghs, shapes and patterns your customers want, from decking and boards to fencing and lattice. There is also Cedar siding, paneling, trim, fascia, mouldings and industrial items for a wide range of other construction projects. Protected by natural phenol preservatives, Cedar is treated all the way through, naturally, and makes imitators turn green with enlry.

So, bring that additional outdoor business to your store, Grab the coupon and get a selection of idea literature and a source list of Western Red Cedar oroducers.