Planning + testing + systems - good marketing

This article, prepared, by the National-American Wholesale Lumber Associatinn. concerns the wholesale lunction ol tod,ay's modern marketer ol wood, products. A concept ol the wholesale lunction by prod,ucers and, end-users is ainlly needed to insure ellicient and, economi,ml.distribution in our industry.-Edinr.

['tOR A long period of time, it has been I apparent that lumber for the "do-ityourself" consumer should be made available to the impulse buyer within the {ramework of the modern shopping com. plex of the American suburb.

Baugh Forest Products, a southern California wholesaler, recognized this need in the marketplace and set out to do something about it.

As a whdlesale supplier, Baugh is not in the business of selling the enJ-use corr. sumer. However, the firm is highly cognizant that their sales volume is tied to their customers who operate retail outlets. Total concept marketing applied by the modern wholesaler demands that understanding assistance and development of markets are part of the wholesaler function.

Subsequently, the Baugh firm provided lumber materials to a pilot operation store, charging the costs to marketing research and development. From this study evolved a total marketing idea that involved store layouto user preferences, and increments of purchase to minimize customer inventory and produce maximum cash flow. The plan included a new packaging system, as well as delivery and ordering procedures patterned after wholesale grocery methods.

The packaging system evolved from a study of sales flow by item and determining what size unit of each stock item fit the customer need to allow sufficient inventory for sales geared to a limited space. This unit system enabled the store operator to reorder automatically without fear of over purchase or inadequate inventory.

An ordering system using stock numbers other than lumber nomenclature permits store personnel who are not'lumber oriented to reorder with no confusion. and possible error. The stock number system also allows simple punch-card procedure to be made for sales analysis.

The system also embodied changi.ng the histoiical practice of billing on a basis of .board measure. Pricing and measurbment 'ftoin the irendor are computed:on the same basis as the store selling method which either would utilize a lineal method or per piece basis. As a result, no conversion is needed to evaluate cost versus selling pfice for the store managers who are retail merchandisers rather than experienced lumbermen.

After two years, the plan has become a large segment of the distribution yard sales of the Baugh organization resulting in a growing new market.

William E. Baugh, president of Baugh Forest Products, a lumber wholesaler since 1938, explains, 'oby adopting modern marketing techniques to a proven product, it is possible to expand new markets based on customer need rather than being confined by produot limitation."

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