WESlIERN ASSOC[ATI[ON NEWS

Mountain States Lumber & Building Material Dealers Association when they surveyed those attending [ound that free admission was considered a very important feature of the recent Denver Building Materials Buying Show.

The top 10 issues in order of importance to the attendees were:

(1) Free admission.

(2) Seeing old friends and business associates.

(3) A chance to see new products.

(4) Learning about new products and services.

(5) Special discounts and prices.

(6) Free food available.

(7) Advance mailings from the association and exhibitors.

(8) Educational programs.

(9) Non-smoking eating and rest area.

(10) Late show hours (8 or 9 p.m.).

Survey responses were also ranked by variance in scoring. Issues with the highest degree of agreement and the lowest variance were:

(l) A chance to see products.

(2) Learning about new products and services.

(3) Seeing old friends and business associates.

(4) Free admission.

(5) Advance mailings.

(6) Free food.

(7) Special discounts and prices.

(8) Being personally contacted in advance by exhibitors.

(9) Educational programs.

(10) Meeting top oflicers of exhibiting companies.

Western Building Material Association is advising its members that they are missing a profitable niche in the building supply business if less than 2006 of their total sales are special orders.

However, they advise that special order sales priced by the sales force with little direction from management leave a lot of money on the table. Freight, they say, is one of the gremlins that can turn a special order sale into a profitability nightmare since sales people often underestimate freight cost or forget it.

To avoid having to eat special order lreight charges, they recommend:

(l) Require that a purchase order be issued for every special order sale. Include a line on your purchase order for entering either actual or estimated treight.

(2) Especially on low volume special order sales, lreight can represent a large percentage of your cost. Instruct your sales people to include freight when arriving at the price they quote the customer. Mark up freight as well as the cost ol the merchandise.

(3) Advise customers that freight has been estimated. lf freight comes in higher or lower than estimated, it will be adjusted.

(4) Give your sales people mark up or gross profit margin guidelines for pricing special order sales. Margins need to average slightly higher to cover extra handling costs.

(5) lf the customer is a stranger, charge a 10006 deposit. IIthe customer is a cash customer, but lamiliar to you, charge at least a 500/o deposit.