7 minute read

Old Grondh Douglas Fir

Green, Rough or Surfaced

Sales Mgr. Ted Barnes

Phone: (503) 874-2236

Oregon 97469

Good Christmas For Retailers

A favorable second half is seen in 1985 for retailers with both constant and current dollar growth rates accelerating during the year's second half. Nominal growth rates in total retail sales are expected to rise between 1v/o and 890 in the final two quarters.

According to author James E. Newton, vice president and chief economist for Management Horizons, "Real growth in total retail sales will advance by around 490 and 3.590 during the third and fourth quarters, respectively. This welcome change will be following the lackluster growth rate of a little over 20/o during the year's first half. Our prediction for the second half of 1985 contradicts those of most other forecasting services. Based on our favorable record. we feel confi- dent with these optimistic numbersl' "Given relatively strong consumer demand and modest retail inventory levels, the intense price cutting and profit drain which characterized last year's Christmas selling season should fail to rematerialize during 19851' he says.

Home centers will see nominal current dollar sales growth strengthen to between 890 and ll9o the last six months of the year, according to Newton. In addition, year-over-year growth rates (not seasonally adjusted) are expected to strengthen for these retailers. He lists home center growth rates as below l9o for the second quarter of 1985; slightly above 690 for the fourth quarter of 1985; and between 9-9.590 for the first quarter of 1986. This is due, in part, to the lagged effect of new housing starts.

Lumber Packaged for D-l-Yer

Targeting the d-i-yer as the end user, TreeSource, Inc., Portland, Or., has launched a merchandising effort for 2 x 4 packages including top quality lumber manufactured to specific lengths of 8, l0 and 12 feet.

Delivered to the home center market strapped, endsealed and placarded to promote consumer sell-through, the material features light wane, small-knotted P.E.T. A2x6 manufactured to 8 ft. lengths is also available.

The lumber is manufactured by Midway Forest Products, Philomath, Or., which has an initial production capacity of 100,000 b.f. per shift, according to Michael D. Bryan, v.p. and gen. mgr. Scott Zimmerman is the home center sales and marketing specialist at TreeSource. Both companies are part of WTD Industries, Inc., which includes Glide Lumber Products, Silverton Forest Products, Pacific Hardwood and Philomath Forest Products.

The Cost Estimotor is on op plicotion progrom thot speeds ond simplifies the process of creoting cost estimotes. The Cost Estimotor speeds the job of processing cost estimotes, by doing oll the time consuming ospects of on estimote in micro-seconds, The job of preporing on estimote is reduced from hours to minutes.

.Does .|00 + lines cost estimotes

.Moke mojor chonges in sec0nds

.Use your own inventory file

.Your copy will show: l. % mork up 5, Boord feet

2. Totol cost 6. Sq. feet

3. Totol price 7, Lineotfeel

4. Profit

.Prints out h0rd copies oTotolly outomotic

.Poys for itself the first month.

Solid Gold Hardware

(Continued from page I1) upon volume purchased. "We're competitive, make no mistake about it," emphasizes Dixieline's Cowling.

Classic Collections, a separate division of Dixieline Lumber, is run by Charles C. Butler, a 16 year veteran of the kitchen and bath business. His experience in products, design and construction is a real plus for customers.

Opened April 15 to the public, the showroom was doing $100,000 per month average after only 75 days of operation. Division vice president Butler projects volume at $200,000 per month by the end of this year. The high priced inventory obviously affects the gross dollar business done in the 8,000 sq. ft. operation. Butler notes that downstairs the average sales ticket is $llG$130. Upstairs, Classic Collections average sales ticket is $2,000.

While the high price merchandise inevitably scares off many buyers, it is nonetheless an excellent draw for the downstairs store. Both levels feature a good-better-best pricing structure and the gap between the highest priced Moen, Delta or Price Pfister faucet downstairs (about $125) versus $189 for faucets upstairs, is a difference of only about $65.

As a visitor to the Classic Collections starts upstairs, the decor quickly changes from the modern-homecenter-of-the-'80s look of downstairs. Walls are done in a medium lavender, the staircase and bannisters in custom oak. A mantel is hung at the landing, surmounted by a brass frame mirror, two plants and two brass antique Iamps. No K mart this!

The first impression of the showroom is one of depth, light and openness. The displays and layout were virtually all done in-house by Dixieline personnel, a feat for which they are justly proud.

A solar lighting system was installed on the roof not only to save money (it will pay for itself in three years), but to provide a natural light so that products and colors look the same at home as they did in the show- room."Avoiding fluorescent lights has already had a significant effect in lowering our returns and call-backs," points out Butler.

If, as F. Scott Fitzgerald said, "The rich are different from you and me," it may be in part because of their surroundings. A walk around the showroom will quickly show that, if nothing else, the rich can, if they choose, live on a scale far different than the ordinary man.

A look at the sink displays, the largest in the country, shows an oval brass number for a modest $890, then a selection of two at the $1250 level, suitably plated with silver rim and gold basin. But wait, here's another, priced at $90, proving that there really is good-better-best pricing.

In this realm it's nothing for faucets to cost $2,000 to $3,000 apiece. And up. Many of the sink and faucet displays are fully functional; water flowing smoothly at a touch of the crystal handle. Which probably isn't too much to expect for three grand.

Like so much of the Classic Collection, this aspect is well thought out.

"Our customers," observes Butler, "want to know the feel and the sound of a $3,000 faucet. We don't want anyone spending that kind of money and then be unhappy when they install it at home and don't like the feel or sound."

The bathtub market is covered thoroughly, with more than 20 manufacturers represented, the most of any store in the U.S. Immediately on your right as you enter is a tasty $5,200 tub system. Some run $14,000. About 4O different models are arrayed about the floor in an adjoining room so customers can try them for size. "More than once," Butler chuckles, "we've found customers, shoes off, lazing in the tubs, just to make sure before buyrng that the tubs will suit their purpose."

Decorative and functional hardware items are mounted on various vertical display boards, here covered with black velvet, there with light gray or other background textures to effectively present the product.

A separate room is set aside for doors, interior and exterior, which include brass, bronze or copper covered, etched and leaded glass doors and rosewood doors with pearl inlays. Now, more than 100 styles of doors are on display, again the largest selection in the country.

A Kaylien door (the Swelterweight Champ model) is displayed so that a constant stream of water pours down its face, proving that it is truly water and weather resistant. The Simpson line of beautiful handcrafted wood doors is amply represented.

More than l0 fireplace mantles are placed about the showroom. Other products include switch plates, copper hoods, flooring and skylights. But, despite the firm's T2years in the wood business, no cabinets. Carpeting is excluded as well.

Many of the products are European because equivalent models are not produced by American manufacturers.

As befits an upscale concern, customers are treated with kid gloves. No salesman attacks them upon entry and, indeed, many walk through and leave without ever having spoken to a clerk. But if you feel you just can't go another day without that solid brass, hand nickel-plated showerhead with the 280 gold lszzls5, they have one on display. It's yours for $1,950. Plus ftI)(.

Bill Cowling's dream of being able to offer Dixieline Lumber customers the widest selection of the absolute best in home and bath products has been well realized. The practical businessman in him has put a hammerlock on the top end of this business in the west in what appears as solid in investment terms as one of his solid gold faucets.

Selling Skills Videotape

A new videotaped training course on selling skills and customer relations for retail hardware/home center employees will be available from the National Retail Hardware Association and Home Center Institute.

The program will include nine videotaped training modules, and a combined study guide and workbook. Featuring Bill Sharp, a leading sales trainer, it is designed for individual study or group training.

Production of the programs is being completed and delivery of the tapes and workbooks is set for Oct. 1.

PLEN-WOOD ADVANTAGE

(Continued from page 52) system is the elimination of HVAC supply ducts, significantly cutting construction costs. Studies by the U.S. Forest Service, the NAHB Research Foundation and the City of El Centro, Ca., show cost savings of $220 to $475 where the underfloor plenum was used instead of a concrete slab floor with a ducted HVAC system.

Another important consideration is energy efficiency. A study at Washington State University showed energy savings of 14 to 2390 using the plenum system, compared with an uninsulated, conventional crawl space. In addition, air circulation and temperature distribution were improved in the test structure.

Air recirculation is improved through the use of the downflow HVAC system and accompanying return air venting. Even temperatures are achieved from floor to ceiling, allowing lower thermostat settings for heating and higher for cooling without compromising the desired comfort levels. Radiant heat from the plenum through the wood floor also contributes to the uniformity of temperatures so that vaulted or cathedral ceilings can be used successfully without noticeable heat loss.

The Plen-Wood system is practical, too. Common materials are used throughout, so dealers need not keep special equipment in stock to accommodate the builder. Carpenters and mechanical contractors use standard skills and techniques to install the system, as well. The system is accepted by all major model building, mechanical and electrical codes, and its reliability is proven in thousands of structures throughout the United States.

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