Getin onthe Gold!

SPECLALISSUE: WESTERN WOODS

The November issue of The Merchant Magazine will be a fact-packed, fascinating and informative look at the wonders of Western Wood. Marketing and merchandising opportunities, market trends, availabilities, species uses and systems, new promotional and sales ideas, loads of facts and figures and lots more

Advertisers: use this golden opportunity to get your message into this well read issue that is sure to be retained as reference material. What better way to reach the Western market than through the pages of The Merchant Mogazine, for more than 60 years the required reading of the indushY.

Reserve space today for this important issue. Deadline is October 15, 1984.

Call or write today to make sure you're a part of this solid gold selling opportunity.

Softwood Plywood Update

The softwood veneer and plywood industry employed 34.8 thousand people in 1982 with a total shipment value of $3.2 billion in 1982 prices.

Derived from the Census of Manufacturers this employment figure was 25Vo below the 46.2 thousand reported in 1977. The leading states in employment in 1982 were Oregon, Texas, Washington and Arkansas, accounting for &Vo of the industry's employment. This represents a shift from 1977 when Oregon, Washington, Texas and Louisiana accounted for 67Vo of the employment.

Compared with 1981, employment in 1982decreased 120/o.The l98l data is based on the Census Bureau's annual survey of manufacturers, a sample survey conducted each year between censuses.

In current prices the industry shipped $2.6 billion of products primary to the industry, $494 million of secondary products and had $105 million miscellaneous receipts. Thus, the ratio of primary products to the total of both secondary and primary products shipped was 8490. ln 1977 this ratio was 8890.

Softwood veneer and plywood manufacturers accounted for 94Vo of products considered primary to the industry in 1982 as compared to glqo in 1977. Total cost of materials and services used in the industry amounted to $2.4 billion in current prices.

New DIY Wood Magazine

Wood, a new magazine for home woodworkers making its debut this month, should be of interest to home center retailers since its tips for using tools and suggestions for projects utilizing wood are sure to stimulate sales.

Meredith Corporation (Better Homes and Gardens) is the publisher.

Forest Products Celebration

National Forest Products Week will be Oct. 2l-27 with special exhibits and news releases to draw attention to the benefits and importance of wood and forests in people's lives. All wood products firms are being urged to participate.

lmpact of New Lifestyles

Flexibility and the ability to change identify good store managers in today's economy. Everything is changing including the cLitomer. The store that can accept and adapt to these changes is the store that.will succeed.

Today the consumer is more sophisticated and ready to challenge the status quo. With a lifestyle quite different from that of mom and dad. he or she is not as loyal to products and services as before.

Today's customer is more mature. The nation's median age has reached its highest point at 30.6 years, according to the Census Bureau. The proportion of elderly Americans has tripled since 1900 with one of the fastest growing groups made up of those over 85. This group now totals 2.5 million and is expected to increase to 7.7 million by 2025.

The so+alled typical All-American family is disappearing. In fact, a father, mother and two and one-half kids (with the same parents), defined as a typical family unit, accounts for only 4o/o of today's U.S. households. Smaller families have emerged in the last decade. In 1970 3.6 persons formed an average household. In 1983 this had dropped to 2.5. Couples living together has increased. More women

September, 1984 have entered the work force. Divorce is skyrocketing: 29.5V0 of marriages ended in divorce in 1950. 49.2s/o in 1980.

Ail these factors change your customer base as do other statistics compiled by the Census Bureau.

The median age, which had peaked at 30.3 years in 1952, was lowered by the arrival of the post-war "babyboom" generation. But now it is rising as this huge influx of people moves into the 39 to 45 age bracket. The decline of school age children today was caused by low birthrates in the 1960s. But in the last few years an "echo" has occurred as baby-boom children have babies of their own. The population under age 5 is no longer declining as had been the case before 1975. From 1980 to 1982. the number of children under 5 increased by 6.390.

Overall there were 233,267,W Americans as of Jan. l, 1983, an increase of 6,206,000 since 1980.

Among other changes, blacks are moving into the suburbs from the central cities. In 1982 approximately 5590 lived in central cities, down from 5990 in 1970, reflecting an increase of 2.3 million moving to the suburbs between 1970 and 1980. Also. more women are remaining single longer with half of the age 20-?A groups unmarried, up to 3690 from 1970.

Unmarried men in the 20-24 age group grew from 5590 to 7290 in the same period.

These changes require a change in your management attitudes. Conditions are ripe for new products, innovations and departures from what is in current favor. The store that refuses to adapt is on shaky ground.

Wickes' Proposed Debt Payoff

Creditors of The Wickes Co.s in its current Chapter ll bankruptcy proceedings have been offered a proposal of settlement.

The plan includes l79o cash on the dollar; 25Vo on the dollar in 2 year l29o notes that are extendable for another year; 5090 on the dollar in 9 year maturity debentures with l29o interest; and 890 in Wickes stock.

Still to be ratified, the proposal calls for a payout in early 1985.

On-Site Safety lnspection

A five-minute lift truck safety inspection is now available through participating Yale dealers. The program, called the "Mechanic's Eye," consists of free-of-charge spot checks made on-site by service experts.

Each truck has its belts, hoses, gauges, seats, tires, back-up alarm and lights visually examined. If needed, a more thorough, 200-point inspection is recommended.

For the name of the local authorized Yale dealer in your area, call: l-800345-8112.

BUILDING code reouirements in this f 0urstory retirement community being built in Marin County, Ca., are satisfied by using Dricon lire retardant treated wood from Koppers Co., Inc. Cost savings in labor and materials also resulted.

Lighting Ideas

(Continued from page 36) side the store. This will satisfy the customer and prevent returns.

Lighting can be an effective way of directing attention to specific merchandise by making it brighter than other areas in the field of view. This is achieved by directing light to gondolas, wall displays and feature displays rather than to aisles. High wall brightness can be useful for attracting customers to perimeter areas of the store.

In general, display areas can be lighted with 100 to 200 footcandles. The display area illumination should be three to ten times the level of the general area lighting. End cap displays and displays near the cash register should have two to five times as much illumination as the rest of the counter. Incandescent spotlights are effective for increasing the light in these locations.

Lighting is a science which should be given proper attention, but the store owner or manager can find help readily. Lighting engineers and designers are available as is literature designed to help the person who wants to become better informed. The Illuminating Engineering Society of North America publishes information on lighting merchandising areas and North American Philips Lighting has a "Lighting Handbook" available as a reference.

Future Dates

Check our Calendar on page 20 tor information on upcoming conventions, meetings and trade shows in your region.

Latin American Housing Crisis

Housing ministers and financial officials from more than a dozen Latin American and Caribbean countries are meeting in Seattle, Wa., September 27-29 for an InterAmerican Housing Conference to discuss solutions for the housing needs of the region.

Latin America and the Caribbean countries need to build about 30 million units by 2000 to keep pace with their housing demands. Using current practices, the shortfall could be 15 to 20 million, creating a housing crisis that could compound the economic, social and political instability of the region.

The conference will focus on the use of U.S. technology and wood products as an affordable alternative to masonry, which is now the predominant building material of the region.

fiEC0GNIZING sales of over a million feet of redwood, Simpson Redwood sales rep Bill Scott (center) presented a Million Foot Club Award to Capitol Lumber Co. John Gaskin (left),owner of the firm which is headquartered in Phoenix, Az., with branches in Lubbock, Tx., Albuquerque, N.M. and Chino, Ca., and Dean Winters (right) accepted the trophy. Other firms recognized with the Million Foot Club Award included C. J. Redwood Co., Escondido, Ca.; and Simpson Building Supply, Cerritos, Ca.

STAPLES IN UNITS OF LUMBER!

Recently, we pulled 64 staples from one unit of lumber. Is there a conspiracy between the suppliers and Simonds Saw & Steel??

Only ONE staple can raise havoc with machine knives! There must be a better way for industry to secure protective devices to units of lumber.

Please! Tape?

Gerard L. Parsons

San Luis Mill & Lumber Co.

236 Higuera Street

P.O. Box 1206

San Luis Obispo, Ca.93406

Lumberman on Tour

To cover 14 countries on a recent tour, Ed and Vivian Fountain, Fountain Lumber Co., Los Angeles, Ca., required 17 flights, three trains, one cruise ship, several camels and donkeys, numerous buses and taxies plus two pair of feet. They also packed and unpacked their suitcases 24 times by actual account.

But statistics were not the highlight of the trip which took them to some of the world's most unique sights as well as offering an opportunity to visit former lumber industry associates in far flung places. They started with a two week tour of the Far East including a stop in Bangkok, Thailand, to meet the former owners of Tahsis Lumber Co. and visit the East Asiatic Co., a 100 year old Bangkok firm.

After Egypt, they cruised the Mediterranean, stopping in Southern Portugal to play golf with Jim and Pat Bolte, former California lumber people, who now reside there.

Freight Bill Auditing Changes

With new deregulation rules, railroads are considering a change in the time limit for which claims for overcharges on freight bills can be filed from the current three-year period to nine-months. As a result, freight auditors recommend auditing freight bills every six months.

Low Income Home Loans

Legislation has been approved by Congress to revitalize the Section 502 Farmer's Home Administration loan program for low income home buyers. Public Law 98-332 is expected to clear the bureaucratic mix-up which inadvertently required all very low income loans to be funded before the release of money for the low income assistance.

Ganahl Centennial

(Continued from page 44) mately ffiVo of Ganahl's overall annual gross income from lumber sales. Separate sales and service counters have been installed to set the professional builder apart from the d-i-y customer. Outside salespeople are also employed to service the larger contractor customers. Industrial and commercial accounts make up another 20Vo of gross sales. This department, managed in Anaheim by Brent Bouslog, employs telephone salespeople as well as outside salespeople to service such customers as property management firms, manufacturing companies, retail outlets, nurseries and a wide variety of other businesses. Retail sales account for 20Vo of business and the potential for growth in this area is being closely evaluated.

Over the years Ganahl has earned a solid reputation for high quality products and customer service. Employees are clearly seen as the company's most valuable resource. A "promote from within" policy is in effect and training is a high priority. Product training starts in the lumber sheds, where newcomers learn the ins and outs of the business by filling customers' orders. Contractor sales, industrial sales and yard management are all peopled with well-rounded, seasoned professionals who are familiar with all aspects of the company as well as the construction and lumber industries.

Management sees its responsibility to its customers as more than just filling their current needs for lumber, building materials and hardware and so employee instruction goes beyond the usual product training. The role of each employee is that of a problem solver. This problem solving attitude is reinforced through a program called Counselor Relations and the company plans to send every one of its more than 325 employees through the program.

Internal communication is also aided by a weekly employee newsletter called Woodstock. The newsletter is distributed each Friday with paychecks and it provides a vehicle to let everyone in the company know what's going on, what job openings are available and other companyrelated items of interest.

As in the past, Ganahl plans to continue building its business around the idea of people serving people better. President Peter Ganahl wants to see the company do more of what it is doing right now. He plans to stay in the Southern California marketplace, with future growth expected either through expansion or acquisition.

With their impressive past and promising future, this lO0-year-old company is still growing strong.

Public Fears Interest Hike

Inflation is of less concern now to U.S. consumers who have more money to spend, but they worry more today about interest rates rising.

Consumer confidence stayed high during the second quarter of 1984 with 4590 of U.S. families reporting improved financial situations in a University of Michigan survey. The survey also showed that 66Vo anticipated an interest rate hike compared to 4OVo during the first quarter and 23Vo a year ago.

(Continued Jrom page 29) and the location to provide the most positive consumer acceptance.

(4) PROMOTION - Generally, when the term promotion is used, one thinks of advertising, which is paid-for-media. However, properly defined, promotion is a total communication vehicle which includes public relation (free media) events, store personnel sales efforts and paid-formedia. Retailers many times feel that promotion is the area where images are conjured up in the consumer's eyes. Certainly, the use of graphics (old English versus modern) colors (warm versus cold) and message content (benefits versus features) tells the public what the retailer wants them to understand. However. the best efforts can fail if the parking lot has potholes, the facilities need renovation and the merchandise mix has gathered dust. In this instance, advertising believability is questioned and a credibility gap is established.

(5) intangible dimensions of a store's image is the courtesy, friendliness and knowledge of employees and the role that they play in the execution and delivery of the concept's image. The best merchandise mix and promotional program in a conveniently laid-out facility, with high visibility and price-value relationship, can fail to attract customers if management fails to understand the employee role.

Unfortunately, retailing is a traditionally minimum-wage industry with high turnover and seasonal fluctuations. This often creates a workforce that lacks commitment to the customer and understanding of the operation's policies and philosophy, Consumers today express extreme irritation with the lack of attention from young sales people when they are looking for assistance and the lack of a speedy check-out. Criticisms are also given in regard to employee dress, side conversations, gum chewing and a general lack of concern for the customer who ultimately makes their paycheck.

The Merchant Magazine includes such things as store tours, credit policies, giftwrapping, parking validation, and child care services. These elements combined with the other five elements develop a "halo effect" that is either negative, lukewarm, average or above average to outstanding.

In today's competitive environment, serving the most sophisticated consumer ever known, it is the challenge of management to intermix financial capabilities, operational executions and marketing strategies to address the six elements mentioned. These elements blended together create images of warmth, progressiveness, value, success, or lack thereof, depending upon the attention to detail given to each.

(6) ANCILLARY SERVICES

From a research standpoint, the last dimension that can be measured of a store's personality is the degree of ancillary services that they elect to provide the customer. This

In many less than successful retail organizations, each of the six activities are designed by separate departments inside of the organization that do not intercommunicate with each other and thereby provide a disjointed "ho-hum" performance. Clearly, successful retail enterprises today have not only supported the research and execution of the elements cited, but also promoted an internal communications scheme that glues the image-setting strategy neatly together.

Be On The Level

A 20-p. brochure on levels and tools is free from Exact Level and Tool, Inc., 100 West Main St., High Bridge, N.J. 08829.

International Trade List

The "Construction and Engineering Firm Trade List" of 3,200 companies in l0l countries is $40 from the U.S. Dept. of Commerce. Office of Trade Information Services, P.O. Box 14207, Washington, D.C.2M.

Insulating Information

An 8-p. brochure on insulation is free from The Society of the Plastics Industry, Inc., Expanded Polystyrene Division, 3150 Des Plaines Ave., Des Plaines, Il. 60018.

International Communication

A booklet describing Tina International Message Service is available free from SST, P.O. Box 10190, Marina del ReY, Ca. X)295.

Creating a Slide Program

A 160-p. how-to manual on audiovisual programs is $12.95 from Visual Horizons. 180 Metro Park, Rochester' N.Y. 14623.

See The Saws?

A l7-p. color catalog on hand saws is free from Raki International, l90Blydenburgh Rd., Central Islip, N.Y. 11722.

Surface Preparation

A ,t0-p. brochure on surface prepluation and maintenance tools is free from Hyde Manufacturing Co., 54 Eastford Rd., Southbridge, Ma. 01550.

Plain English Pays Off

"How Plain English Works For Business" is a 107-p. volume, available for $4.75 from Dept. 36-GK, Superintendent of Documents, Washington, D.C. 2W2.

For Prompt Service

On all New Literature stories write directly to the name and address shown in each item. Please mention that you saw it in The Merchant Magazine. Many thanks!

Corrosion-resistant nails

A bulletin on stainless steel, copper and bronze nails is free from Swan Secure Products, Inc., 2800 Annapolis Rd, Baltimore, Md. 21230.

Computer Info for Dealers

The 1984 NLBMDA computer manual is available for $25 from National Lumber and Building Material Dealers Association, 40 lvy Street, S.E. Washington, DC, 20003.

Small Business Subs

The 132-p. "Small Business Subcontracting Directory", 1008-040-00184-9' is available for $5 from Dept. 36-GG, Superintendent of Documents, Washington. DC 20402.

Protection From Light

A 6-p., fold-out brochure on awning fabrics for exterior and interior applications is free from The Astrup Co., Dept. DF.2937 W. 25th St., Cleveland,Oh. 441 1 3.

Steel Spiral Stairs

A 4-color brochure on all-steel spiral installations is free from Spiral Stairs of America. Div. of Erie Weld Products, l7l8 Franklin Ave., Erie, Pa. 16510.

TPI Business Tool

Timber Products Inspection, Inc. is offering a free roster of its clients. Write P.O. Box 919, Conyers, Ga.30?.07.

Home Design Plans

"Encyclopedia of Home Designs" featuring 450 house plans is $8.95 from Home Planners, Inc., DePt. 284, 23761 Research Dr., Farmington Hills, Mi. 48024.

Soils lmprovements

Two bulletins on lawns and gardens are free from United States Gypsum Co., Industrial Gypsum, Div., Dept' #122-ZZ, l0l S. Wacker Dr., Chicago, Il. 60606.

1984 Sales Aids

The 40-p. "Sales Aids for Successful Selling: Fall 1984 Edition" is free from Dismar Corp., 4/15 Marlton Pike' Pennsauken. N.J. 08109, or (800) 257-776r.

Safety Standards

A catalog of safety standards is free from Underwriters Laboratories, Inc., 333 Pfingsten Rd., Northbrook, Il. 60062' Attn: Publications Stock.

Spindle Talk

A free color brochure on spindles and accessories is availabte from E.A. Nord Co.. P.O. Box 1187, Everett, Wa.98206.

Building Material Dealer

A directory of building material dealers is available for $200 from American Business Lists, Inc., P.O. 8ox27347, Omaha, Ne. 68127.

Barbecue Time

A four-color envelope stuffer on gas barbecue grills is free from UNR Home Products, P.O. Box 429, Paris, ll. 61944.

Residential Hardware

A l2-p. brochure on forged brass residential hardware is free from Baldwin Hardware Manufacturing Corp., Dept. RH-I, 841 Wyomissing Blvd., Reading' Pa. 19603.