GENTER MERGHANT

Bill Fishman & Affiliates '11650lberia Place San Diego, Ca.92128

NE of the most unused tools that independent retailers have available to them is cooperative advertising funds.

Coop (the term used by the chain buyer) has made many of the larger home center chains media giants. Only a few years ago, the norm among home center advertisers was a single full page ad in the Thursday or Friday daily, followed by a second ad on Sunday. Now, home center advertisers dominate the insert sections of the metropolitan newspapers, the neighborhood shoppers, the third class mailings. and the electronic media.

The lion's share ofthe dollars to support these programs comes from coop. Some of these coop funds are accrued from purchases, some are key city funds that manufacturers make available to secure a greater market share, some are plus-over-normal dollan supplied by manufacturers who are sold on the concept that the retailer's special promotion will move additional inventory off their shelves, and, some coop dollars are made alailable to the chains because the indeoendent retailers in the market failed to use the coop funds they had accrued through purchases.

It's ironic that the independent is supplying the means to make their competition stronger. Here's how it happens.

Manufacturers develop cooperative advertising programs offering each retailer an equal opportunity to accrue and utilize the funds. Each of the manufacturer's regions is issued a budget. Near the end ofthe program the region recognizes that the toal budget will not be utilized because ofthe independens in the market who do not advertise. The managers ofthe region know that ifthe total budget goes unused this year, the allotment for next year will be reduced. So the call goes out to the heavy retailer advertisers that there are more ad dollars available if they get spent before the end of the program time-frame.

I have worked with a number of retail building material dealers who feel that administrating and utilizing the arailable advertising coop is not worth the effort. A few have been burned I the heavy hand of the Mvertising Checking Bureau which comes up with new reasons to reject a coop claim...daily. Others feel that their share of the advertising commitment works more for the brand name than for dealer's benefit.

It doesn't have to be that way.

Accruing, administrating, utilizing, tracking, and claiming coop does not have to be a complex procedure. With only a linle time to set up a procedure, and the preparation of some simplified forms, retailers can add 5O% to lO0% and more to their promotional efforts. With a little creativity, coop funds can be used to promote traffic, to establish dominance in a department or product category, to build an image for the store, and to solicit new business from the commercial and industrial market.

Most independent retailers do not realize just how much coop advertising is available to them. I find that the individual who calls on the retailer, while very knowledgeable about products and pricing, doesn't always know about the manufacturer's collateral materials. Experienced retailers have learned that the first response is not always the most accurate response about the availability of funds. Sometimes it takes direct contact with the factory to uncover it all. It's worth the effort. because if there are dollars there, and you don't use them.. your competitor will.

For more information about utilizing cooperative advertising funds write to the National Retailing Institute, P.O. Box 27 l!7. San Diego, Ca.92128.

FRED CARUSO executive secretary

HEME of the 95th annivenary convention of the Mountain States Lumber and Building Material Dealers Association is "Meeting the Challenge." Headquarters hotel for the Nov. 6i meeting is the Broadmoor, Colorado Springs, Co.

The MSLBMDA Insurance Board of Trustees has adopted a new name for its health insurance plans, "Lumbermen's Select." Some 4.000 laminated identification cards with the name Lumbermen's Select embossed over a banner of royal blue were issued to the 2.700 health insurance program participants.

The identification card carries the individual's name, Social Security number and company name on the front. On the back is a summary of payment benefits and local and toll free phone numbers that people may call with questions about their claims.

The new name and card are designed to build pride in the industry and to facilitate communications between the insured members and the claims payers, according to J.T. O'Neal, St. George Trust, St. George, Ut., chairman of the Board of Trustees.

Trustees serving three year terms on the board are Derrell Ballard, T-Bird Home Centers, Alamogordo, N.M.; Bill Bohrer, BMart Home Improvement Centers, Pocatello, Id.; Guy Dobbin, Crissey Fowler Lumber, Colorado Springs, Co., Celeste Colgan, Teton West Lumbeq Cheyenne, Wy., and O'Neal.

The MSLBMDA board of directors has approved a safety incentive program designed to reward good management practices among the firms participating in the region-wide Worker's Compensation Pool, according to president Dave Stringham.

Stringham said that under the plan, participants would receive safety dividends based on two criteria: (l\ 50 % from pro-rata contributions companies made during the year and, (2\ 50% based on a formula which takes into account their safety record.

Stringham said the incentive should help to promote an awareness of safety. The dividend will be effective for calendar year 1986. Stringham said that the claims experience for the past year appears to be very good, in spite of rising insurance liabilities.

NYONE who makes a hiring decision today would agree that it has become increasingly difficult to obtain information about applicants from previous employers or other sources. Because of this difficulty, many companies routinely hire persons without looking into their employment history or criminal background. Federal discrimination laws even prohibit denial of employment to a person based solely on his or her past criminal record. For example, an applicant with a criminal record for theft may be denied a job which requires the handling ofmoney but not one that involves the operation ofequipment.

A recent federal court case presents a new dilemma for managers responsible for making hiring decisions. The court ruled that an employer did not carefully check the emplcyee's background before hiring him. In this case, a secretary was sexually assaulted by a janitor on company premises. The secretary sued the company, charging that they had negligently hired the janitor who had prior conviction ofsexual assaults, and therefore had failed to make the premises safe for its ernployees. The court agreed on the basis that the employer had a responsibility to make reasonable effors to inquire into the employee's past employment history and ottrer records in order to screen out applicants with a history of improper conduct which might carry over into the work place.

What can reasonably be done to avoid problems of this nature? Employers should carefully screen job applicants who are seriously being considered for employment. If it is determined that the applicant has a history of serious misconduct in prior employment or a criminal record, a decision not to hire should be based on evidence that the past emplcyment record or criminal conduct bears a reasonable relationship to the job in question and the hiring of the individual might endanger other employees or property.

The WBMA 1986 annual convention and building products showcase will be held in the Red Lion Inn, Bellevue, Wa., Nov. 8-ll.

"Building Our Name Through Service" is this year's theme and both the convention and the building products showcase will be stressing service. Our theme is not only descriptive of the 83 years of service which Western Building Material Association has given to its members and the building material industry throughout the Pacific Northwest and Alaska, but it also reminds us that service still is the single most important element of success for the independent reail building matrerial dealer.

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E.J. JOHNSON executive vice president

! nOV data recentlv compiled by the I University of Arizona's College of Business and Public Administration. the socalled "baby boom" age group will be the most significant financial factor in the state's economy to the year 2000.

This 35-54 year age group represents over one-frfth ofthe total population and is regarded to be the most financially secure buying group over the next 15 years. It also notes that as children of baby boomers become economic factors, they will represent about one-fourth of the total growth expected throughout the state to the turn of the century.

While many will argue about the use and projections of economic data, it is difficult to over look the significance of two family incomes and their impact upon various markets.

The baby boom age group has been closely linked to high-tech and luxury buying for years, having grown up on a diet of rapid change in availability ofconsumer products. They have not hesitated to expend greater por- tions of their disposable incomes on higher priced items they desire. And, it is reasonable to expect that their children will continue in their parent's footsteps.

What does all this mean to the constructionlumber-building producs markes? This is the point that always separates the eternal optimiss from the reluctant optimists and even from the enthusiastic pessimists.

According to the U.S. Department of l-abor, the expenditures of urban consumers in this age group for housing, reaches over one-third of their disposable income. This factor does not necessarily take into consideration the added impact of a second household income and is contribution to home repairs, remodeling, etc. There does seem to be general agreement, however, that baby boomers are used to getting what they want when they want it.

All factors considered, it certainly indicates that upper income housing markets will be favored as well as contractor and d-i-y remodeling projects. They have demonstrated a desire for homes with free flowing open spaces that accentuate a care-free lifestyle. They want televisions, stereos. VCRs and the

Iatest high-tech gimmicks that offer quality responses to instant demands for enjoyment. Jacuzzis are in along with individualistically appointed back yards suitable for private entertainment. Competition for this prized segment of the market will be keen and baby boomers can be counted on to search for the products at the best price.

Don't forget that as this age group grows older, their buying habits will become less impulsive and more conservative. Even the most pessimistic of business forecasters agree that this specific market group of consumers is the easiest to define. Baby boomers have money and aren't afraid to spend it. Just think what they will be doing when they reach the next plateau and become senior citizens in the next century!

Northwest News

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We are enthusiastic about the showcase and pleased to report that exhibit spaces are selling fast! This would be a good time to tell your suppliers about our show and encourage them to exhibit with us while we still have spaces available. We would be happy to send them the necessary information. Just ask them to call the WBMA office. or send us their name and address. And be sure to mark your calendars so that you will be ready to attend a great convention and building products showcase.