uality, Personal ce & Low Prices to You ynnrhereacross the U,$,A

Watch Overhead To Save Cash

Watch your overhead to conserve cash and stay liquid as a safeguard in a recession, urges Selwin E. Price, Grant & Co. cdrtified public accountirig nrm.

Production and administrative overhead should both be tackled, he says. Starting with production, look for:

(l) Production capacity that is more than you need. Consider selling off the excess. By the same token, if you need more space, you may be able to get additional facilities now at a bargain rate.

(2) Excessive energy costs, fuel, electricity, air conditioning, transportation, etc. Consider what can be done to cut these costs. Remember that some types of energy-saving improvements qualify for tax credit.

(3) Unnecessary operating procedures. Determine if some positions can be consolidated to improve productivity per worker.

Next examine administrative overhead. in which the principal cost element is people. According to Price, for each direct dollar of payroll you trim, you also save 36p in employee benefits.

He recommends that businessmen look for marginal administrative people they can eliminate in three categories:

(l) Individuals who have been hired to supplement old-time employees who are not performing but can't be terminated because of vears of service.

(2) People hired by an insecure supervisor to make his performance look good.

(3) Persons hired to prepare daily, weekly or monthly reports that have marginal utility. If you want to know if a report is needed, stop issuing it and find out how long it takes for someone to ask for it.

Price notes that some companies find that after trimming excess people to survive a recession, they can easily retain their leanness after the recession has ended. However, he cautions against cutting people who may be hard to replace later. He especially warns against cutting the personnel staff.

"Hiring the right people is more important now than ever," he says. "A Frrst-rate, seasoned recruiting/training team is too valuable in the long run to scrap for temporary austerity. ' '

Finally, Price urges businessmen to curtail travel. Use the telephone instead; watch entertainment expenses; monitor automobile use, including taking a close look at the leased cars; and find out if insurance coverage can be obtained more inexpensively.

Ways to Help an Employee

Poor performance by an employee usually can be traced by a dealer to one or more of four basic reasons:

(l) ineffective guidance from higher-ups;

(2) inexperience;

(3) limited abilities;

(4) lack of motivation.

Deal with the situation by assessing what combination of these four is causing the problems.

A remedy for poor guidance is better definition of the job by management. Incremental goals with help and rewards for success can cure inexperience. If limited ability exists, the job should be restructured. Motivation can be provided with a change or additional challenges. With extreme lack of motivation firins or demotion mav be the best solution.

Feds Seek Dealer's Help

At a special White House briefing, President Jimmy Carter urged the nation's lumber and building material dealers to help the administration expand public -awareness of the importance of energy conservation at home.

Eighteen dealers representing the National Lumber and Building Material Dealers Association heard four top cabinet officers detail steps business and agriculfure can take to reduce this nation's need for oil imports.

An outline was reviewed for a community in which business, city govemment, neighborhood, civic and voluntary organizations get residents to begin low cosVno cost conservation. Items included weather stripping, caulking and closer control of thermostats which the Department of Energy estimates would result in energy saving up to 25Vo.

The next step suggested that lumber and building material dealers emphasize capital improvements such as thermal-pane windows, insulation and solar equipment. A saving of up to SOVo was predicted. Passive solar where lumber, as an example, could be used to divert direct sun exposure in the summer while adding cold weather protection in winter also was reconunended for emphasis.

Following the briefing, Administration officials asked the National Lumber and Buildine Material Dealers Association to dEvelop a specialized communications program to assist retailers in getting the message to the public. NLBMDA was also asked to publicize available government programs and energy tax credits which can be used by home builders, remodelers, and do-it-yourselfers.

Contest Sparks Sales

Virginia Hardwood Co., wholesale distributor of hardwood flooring products in the Western United States, is conducting a sales incentive program called "Make Your Move."

According to Dave Ferrari, pres., sales points will be issued monthly to participating firms based on purchases of products and materials from their locations in Monrovia, Ca., San Diego, Ca., and Phoenix, Az. Accumulated points are redeemable for pnzes.

The competition will close Oct. 31. Enthusiasm reportedly is high.

Annual lsland Tourney

Lumber buyers were guests at the Reid & Wright Inc. Fifth Annual Invitational Golf Tournament at the Sheraton Molokai. Island of Molokai. Hi.

Robert F. Reid, Reid & Wright, Hawaii, headed up plans with Robert B. Reid and his wife, Kathie, attending from the main office in Arcata, Ca. More than 40 people including wives of the participants attended. In addition to golf, the group discussed new ideas and products on the Hawaiian market.

Stewart Hardwood Moves

Stewart Hardwood Lumber Co. recently moved from Fremont, Ca., to a new location, 2020 S. llth St., Los Banos. Ca.

Established in January of this year by Gary Stewart, veteran of 24 years in the lumber business, the company deals in domestic and imported lumber and plywood.

A principle reason for relocating the firm, deadpans Stewart, is the proximity of Los Banos to the High Sierras where fishing and hunting is abundant.

d,w,wtEMffiN5 6W,0ffiN6,

P.O. BOX 3175 o NAPA, CA 94558

WHOLESALE DISTRIBUTION & REMANUFACTURING OPERATIONS

We specialize in: o Redwood lumber products and hard-to-get items. o 48 hour service on truck and trailer loads of custom milling. lf we don't stock it, we can make it here in our new remanufacturing plant, the newest, most modern plant on the west coast.

For your inquiries call: RICK ROSA o DAVE SNODGRASS o LOWELL WALL

"TH E LUMBER NUM BER" is 7O7-252-6142

,$E'NBER OF

A BILL doubling Colorado's ltllng l9uraw

(CUI f/i\''t f t -(CLJ fr1'.ri:.Bhlf$i:l$*S.Ht#l$l*!FLr*.s.'I::f.,i?dT:.#t'llllI.Ltfi|"t:ili.:l"s.}\) ll/l\ll ll\\ r- that state on procedural grounds, \:/ UTJUU L:\:./ thus blocking minagement"of land FRED CARUSO recommended for non-Wilderness, executive secretary "T"tfl"od" hearings on desiglino Cntnrertn,c nating 560,400 acres of New Mexico

A Wilderness by u-Oaing i.i -if - land as Wilderness were held recently. lion acres while reieasi;gl8 -iffi-

The legislation is endorsed by the enother acres for non-Wilderness multiple use has been introduced in the Senate.

5.2741, sponsored by Sen. William L. Armstrong (R-Colo.), affects President Cart-er's RARE'II (Roadless Area Review and Evaluation) recommendation that th;7.8';ili;; ffi::: ff d9 $u_t. Armstrong saio.-: minions ]}1(. CHUCK LINK of Colorado acres may be left in fq7-. executive director fimbo" and may be the subject of "endless haggling" with administrators and the courts. lr Hns come to our attention that Jl.ingoauglng..this bill, Armsrrong lsome dealers are imposing a sur_ said "release" allows a greater degree charge for payments made bv credit of business certainry and abitit! to card"rathir'rtifi-6t fih; ;fr.;L ;; plan long-term timber sale conhacts. other means. This bractice is clearlv

Another Colorado bill awaiting a in violation of the-Truth-In-Lendin! hearing in_the Senate Parks, Recre- Act and its implementing Federal ation and Renewable Resources Sub- Reserve Board Regulation-Z. committee, S. 2123, introduced by Section 167({ei of the Truth_In_ sen. .Gary Hart (D-Colo.), does not Lending Act and Section 226.4(i)(4) contain."release" language and adds of Regulation Z specifically iidt6 r.) mrlllon acres to wrldemess. that, through February 27, lggl, the -rn-ygl opposing.staturory release, imposition-of a surchaige ii prohibited Hart said that when the senate Energy in -a sales transaction-in which the and Natural Resources committee customer elects to pay by credit card considers his bill, he will offer an in lieu of paymentby caitr, check or amendment forbidding court chal- similar m-eais. However, a dealer lglggr to managing RABF II non- may offer ro the customer a discounr wrloerness land tor multl-purpose for payments made by cash, check use. This will prevent a recunence or sihilar means ratheithan bv credit of the scenario in california where a card if the discount (l) does not "*- federal court last January overturned ceed 5vo, (2) is made ivailable to all the Forest Service's RARE II decision prospective buyers, -a fjl is clearly tire New Mexico Consressional delegation. Also on the igenda for the Energy Committee's Subcommittee on Parks, Recreation and Renewable Resources was testimonv from the Forest Service on bills to designate Wilderness areas in Missouri and South Dakota. disclosed in the manner set forth in S_ection 226.4(i)(l) of Regulation Z. Under these circumstancei, the discount would be excludable from the finance charge.

The New Mexico bill contains release language for those areas which were not designated for Wilderness under the Administration's RARE II recommendations. Neither the South Dakota nor the Missouri bills contain release provisions.

Harry James, owner of James Lumber Co., Poulsbo, Wa., has announced that he is a Republican candidate for the Washingtdn State House of Representatives. He is currently County GOP Finance Chairman and has been active in local campaigns.

The successful sales storv in stoves and freplaces of Pacific Ciest Building Center, Olympia, Wa., was featured recently. Congratulations to Bud Paulson, general mgr., Carson Fisher, retail mgr., and Howard Heiner, owner.

A new wholesale warehouse has been started by Richard M. Copeland in Lewiston, Id. The firm, CA Co.. will serve lumber yards, cabinet shops, applicators, and limited industrial accounts.

Ronald J. Pulliam, Portland, Or., has been named a v.p. of Palmer G. Lewis Company. He is gen. mgr. of the Oregon division.

a new sefvice-oriented wholesaler

LeBeck Forest Products is a specialist in redwood.

Our contacts and sources can get you the redwood items and products you need. Our experience in redwood is a plus for you in finding those hard-to-get items.

In addition to redwood, we can supply your needs in Douglas Fir, Particleboard and Plywood.

andsome planhflooring proaides an idcal settingfor any interior design. Its charming appearance can recapture the flaaor of traditional early America as easily as the attractiaeness of an Old frlorld pcgged fuon

Virginia Hardwood Company features the most extensiae selcction olpbnhflooring in the Western United States. If il's planh floodag yoa wo;nt ..you'Il fnd it here.

We're the Best itt the West...CalI us!

Virginia Hardwood Company

Fl ECENT VISITS to members of fl LMA indicate a wide spectrum of business activities and prognostications. Depending on which area visited, business ranged from TOVo off in conffactor trade to lj%o ahead of last year. Retail trade was reported from 50Vo off to 20Vo hieher than last year. The general report'is about3OVo off on contractor sales and l57o to 20Vo increase in walk in trade.

Most dealers feel that the economic picture will improve in November and housing starts being filed will show an increase, but the starts won't be scheduled until April and May of '81.

With a not too bright business picture, some dealers operating on a borderline at the prresent are looking for areas in which to trim expenses. Unfortunately, they believe that dues and subscriptions and advertising should be the first areas cut. Dues and subscriptions account for such a small percentage of the operating budget that elimination would be insienificant. During a time of recession in the industry, maisive legislation being passed, none of us can afford to drop association membership. Your association is the last link you have with the industry and to cancel it spells certain doom. It is difficult to keep abreast of changes in current regulations and proposed new regulations without your association, so why take away ybur only source of information? Use of association programs, which are available at highly competitive prices are essentlal tor lmprovement ot your operatrons and to help you make a profit, so why not take maximum advantage of them?

When business slides, as it has in the past few months, advertising and promotion are increasingly important. You must get oui and promote, ballyhoo, and shout' It is not the ti-me to cut oui advertising. -You need all of the help you can muster in recessionary periods.

Don't throw in the towel by canceling dues and advertising.

Every dealer in our industry earns his livelihood from the industry. Many of us spend a great deal of time working for the industry. We visit our legislators at state and federal levels. We write to them regarding stupid laws they want to pass to further control us. We serye on commitiees that develop marketing, merchandising and advertising techniques'for use by the industry. Many of us develop and conduct employee training progrtrms !o hglp improve the image of the industry. There are untold duties performed by memben of the industry for the betterment of all who derive their living from it.

It is sad for those of us who work diligently to improve our industry to find that there are freeloaders who not only refuse'to work for it, they won't even pay rent for the space they occupy.

There is absolutely no excuse for any building material dealer to not be a member of his industry association' Maybe he doesn't have time to serve on the many commitiees, but he certainly can pay dues to his association. If there is time and moirey available for the country club, golf, fishing, etc., there are certainly a few bucks available for membership.

When you call, we deliver. Fast. And we deliver darn near everything. Lumber. Plywood. Timbers. Fencing. Masonite. Hardboard. Particleboard. Roofing. Hardware. No other distributor in Southern California comes close to handling as many products. That's why weare the Super Supplier. Slip into the nearest phone booth and call. We'll deliver full or mixed loads to

Louisiana. Pacific

your yard or your customer's job site. Super? You said it. Louisiana-Pacific Corporation, Crown Distribution Center, 900 West Taft, Orange, California. Phone 714-998-6500 or 213-598-9675. lJ Ia,