Boom time in Hawaii

F USINESS conditions in the 13 El *esrern srares area served by The Merchant Magazine currently range from very good to very bad. Hawaii is one of those states presently enjoying the former, rather than enduring the latter.

While business has been good for some time on the island of Oahu, where Honolulu is located, and the island of Maui, business has only recently begun to really boom on the island of Hawaii, the so-called Big Island.

A beneficiary of this boom is the Honsador Company, which has facilities on all three islands, including the one on the Big Island pictured here. It is a one acre facility situated in the Kaloko Industrial Park, just outside the city of KailuaKona, the second largest city, after Hilo, on the island.

The site has a 19,000 square foot warehouse to protect the inventory900/0 of which is pressure treated wood - from the effects of the tropical sun. While the company sells a wide range of building products such as plywood, roofing, doors, windows, cabinets, appliances, plumbing and a line of cedar, most of the items are drop shipped at job sites,

Story at a Glance

Wholesaler on the Big lsland of Hawaii enjoys growth as tourism drives the local economy. . the big seller: pressure treated wood products.

rather than being maintained in inventory.

A great deal of the lumber Honsador sells is shipped in from the Pacific Northwest. Treating of the lumber is done by Honolulu Wood Treating, a Wolman licensee, through Hilo Wood Treating. From Hilo the treated wood is shipped to the Kona Coast side of the island via truck, a trip that usually takes about 2-1/2 hours. Pressure treated lumber, redwood and cedar are widely used throughout the Hawaiian Islands to combat the effects of humidity and rainfall.

The Honsador branch in KailuaKona began in 1984 as a one man operation manned by Tom Rietow, the present branch manager. He was subsequently joined by Russell Kohashi, now office manager, and the two of them ran the show. "We did it all," Tom recalls with a smile.

A year ago they moved to their present site, opting for the topmost parcel as the adjoining land offered them room for the expansion they anticipate. Presently there are seven office employees and six yardmen. "Whatever our jobs," Rietow notes, "we all consider ourselves salesmen.t' are oart of the back wall at Honsador's Bio lsland facility, Kailua-Kona, Hi. {21 Mgr. Toir Rietow and Bussell Kohashi, office mgr. l3l and lal inventory is mostly pressure treated wood products. l5l and 16l exterior shots of the office and covered storaoe.

Growth in the tourist trade bolstered construction, plus added strength in a small agriculture segment contributed to the present boom. The once sleepy Kona Coast is fading into memory and the Honsador Company appears well poised to participate in the strong growth of the island's economy.

Ode To An Owl

After reading your editorial in the May Issue of The Merchant Magazine, I thought you might enjoy this poem composed at lunch by a local poet, Lester Smith.

SPOTTED OWL

Out in the forests

There's

Cecil Cleveland Valley Best-Way Building Supply, Inc.

E. ll92l Sprague Ave. Box 14024 Spokane, Wa.99214

Best In The Business

We have recently been receiving your magazine. lt is very informative regarding personalities and building materials businesses in the Western states. It is by lar the best publication I have seen covering our industry.

Rich Copeland President CA Co. N. 9l I Thierman Spokane, WA 99212

Are You Breaking Even?

"Break-even" analysis not only reveals how much a dealer must sell at a fixed price to cover his operating costs, but also provides a list of other sales management advice.

It determines:

(1) Q) the selling price needed to earn a specified profit, given a certain level of sales. the maximum variable cost allowed at a specified level of sales and the selling prices required to avoid a loss. the point at which an operation or product line should be discontinued to avoid a loss. the minimum sales volume needed by credit customers in order to make the account profitable.

Break-even analysis can also determine if a new product should be introduced, product mix should be changed or if pricing should be adjusted, according to the Western Building Material Association.

Thol's How lt Goes!

"l thought you said you knew how lo operate one o.l'those things?!"

The Merchant Magazine