Are You Killing Your Own Sales?

Stop thinking like a "seller" for a minute and think about your experiences as a buyer ofproducts.

The last few times you set out to buy something, did you find what you really wanted? Was it easy to get your questions answered? Was the seller helpful and straightforward? Or rude and deceptive? In other words, did the seller make it easy for you to make the purchase, or was it more difficult than it should have been?

Kristin Zhivago, author of the new book Rivers of Revenue: What to Do When the Money Stops FlowinS, contends that sellers spend too much time thinking about their selling process and not enough time thinking about their customer's buying process. "You can spend thousands or millions of dollars to attract customers, and then actually stop them from buying from you," Zhivago contends. "It's quite common. The frustrated cus-

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Zhivago, a 35-year marketing and sales veteran, is hired by c.e.o.s to increase revenues. She splits the buying process into two phases: Buyer Desire and Buyer Scrutiny. Buyer Desire is the amount of "I gotta have this" the customer brings to the sale (or not). Knowing the intensity and motivating factors behind the customer's need will help you attract more customers with relevant and compelling messages.

Buyer Scrutiny is the amount of scrutiny the customer applies to the purchase. Your products or services will fall into one of the four Buyer Scrutiny categories: Light, Medium, Heavy, or Intense. Light Scrutiny products require a completely different selling support structure and budget allocation than, say, Heavy Scrutiny products.

Customers buying a Light Scrutiny product (e.g., a light bulb) only ask one or two questions. There are no others involved in the purchase. They can make a decision in seconds or minutes.

Customers buying a Medium Scrutiny product (such as deck cleaner) will have more questions, and will take longer to make a decision.

Those buying a Heavy Scrutiny product (such as a security system for their new house) will have a great many questions and will involve others in the buying process. Support their process-from initial awareness to the decision to buy-and you'll be the company that makes the sale. Fail to answer their questions and address their concerns, and someone else will make the sale.

A brand, Zhivago explains, "is the pr()nrise thut \ ()u kccl-1. rr0t thc ilnc y()Ll nlrkc." anrl thcrc urc five rcsoulccs llt or)c's clisposlrl to help hccl-r pr-orniscs: pcoplc. llroclLrcts. poIicics. pnrccrlulcs. ancl proccsscs. .'Oncc you litcus on thc custot.r.rcr"s buy irrg l)roccss. nrther than thc sclling lllrttr'.r. \()tl Lilll :lrrp ittrr'rtitl.- itt cl lirlts thal \\'on'1 gcncrate resLllts. and IoeLrs on thc cl'ltlrts that u,,ill." shc sur s. ''(lurrfilsion is climinatccl."

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Four out itf live n'hole-salcls rvorrltl \'ote to fc-clcct Prcsiclcnt Cic0r!.c W. Bush trcrc thc clcction to bc lrclcl orr the clar thcr inclicltcrl llrcir'prclcr'ence. accorrlilrg Io il strlrrr ltoll bv thc National .\ssoe iittion ol Wholcsalcr Distributors.

Anrong -1.-1(): rrrlnirgcr-s lrnrl ctccrr tivcs pollcd irt cur-lr '\rrqrrst. 81.-l(l rvoulrl r otc lirr Brrslr. I 7..1( I for .lohn Kclrv.0 -5(.,i lor llllph Natlcr'. antl

0.97 lirr "Othcr'."

I)rcsidcnt []ush prcrailcd in -18 states ancl thc District of C'olunrbil. Kelrl ticcl Bush in Alaska uncl llhorlc lslancl. Buslr's sLll)l)ort rvus 907 or higher in I I statcs. rvhilc Kct't'r,' Itcltl Bush bclo* 707 irr Iivc stlrtcs. irrclurl ins his honrc stutc of \lussle husctts. r hcr-c lJush lcccivcrl 6c)'.i ol thc \otc.

"Wc'rc llot surl)r'isc(l that scnior c\ccuti\cs stfon!ll\ suIlport thc ['t't'.i,1.'r)l ri\erl lri. irritiltttre: ttr stlcnuthcn thc ccorron.rr ." said NAW plcsirlcnt Dirk Varr l)onscn. "But. his rttargirt l as unilirlnr thrclughout the Itlirrlit!\'rllr'ttl t'llnkr ul lltil.e Ilr11i! l|r;11in!. irr tlrc poll branch and other nricltl lc nlana-qcnrcnt participants cxl)rcssccl thc santc ler cl of sulll)oft lirl thc Presiclent. This \ccnts to llilkc thc case that all of tlrr-nr urc e lciil' about the positive inrpact ol the Prcsiclcnt's econornic ltol icics."

NAW lvill repeut thc poll in clllr October to gaLlgc h<lu, thc canclidutcs' calnpai-cns nruy haVc intlucrrcccl n holesalc distributors.

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Tolko Bids For Riverside

Riverside Forest Products, Kelowna, B.C., is unhappy with the $340 million takeover bid made Aug. 22 by Tolko Industries, Inc., Vernon, B.C.

Tolko currently owns approximately 19Vo of Riverside, the secondlargest plywood and veneer producer in Canada.

Tolko sent an unsolicited letter to Riverside expressing an interest in acquiring all the Riverside shares it did not own at $29 (Canadian) each.

After the board of directors and financial advisers reviewed the pro- posal, Riverside said the bid "significantly undervalues Riverside and would not be in the best interests of the company or its shareholders."

Tolko president and c.e.o. J. Allan Thorlakson met with Riverside chairman, president and c.e.o. Gordon Steele Aug. l2 "to propose a negotiated transaction that would benefit shareholders of both companies."

However, after unsuccessful negotiations, Tolko announced its intention to make its own offer to shareholders.

"We are making this offer because we are convinced that our people and physical assets, when combined with Riverside's people and physical assets, will yield a stronger. more competitive world-class forest products company with greater growth prospects than each of the companies could achieve alone," Thorlakson said.

The offer is subject to conditions including receipt of regulatory approvals, no material adverse change of Riverside and waiver of Riverside's shareholder rights plan.

The offer expires Oct. 6.

Teal-Jones Opening In Sumas

Teal-Jones Lumber Services Inc., Vancouver, B.C., has signed a lease for a 50,000-sq. ft. remanufacturing facility in Sumas, Wa.

Teal-Jones plans on opening the 5acre facility this fall, employing 25 people with the possibility of 80 people when it's fully operational.

The Sumas site will be used for finishing wood products, wood drying, wood planing and remanufacturing wood products.

Teal-Jones has the option to lease another 5 acres or to buy all l0 acres.

DOMESTIC SALES: Jerry Long, Michael Parrella, Bruce Keith, Janet Pimentel, Pete Ulloa, George Parden, Vince Galloway, Steve Batick.

INTERNATIONAL SALES: Nestor Pimentel, Oscar Portillo.

Hardboard Settlement Offered

A proposed settlement against Stimson Lumber Co., Portland, Or., directs the company to put at least $2 million in a claims fund to pay for damages, including warping, swelling and buckling, stemming from Stimson's Forestex hardboard siding.

The settlement is open to anyone who owns or owned property on which Forestex siding was installed.

The siding, which was manufactured from 1985 to 1997, was made to look like regular wood siding.

Payments are based on the extent of the damage to the siding, wall size, age, and whether the product was properly installed.

South and Midwest to I 5.8Vo in the Northeast and West ... building permits climbed 5.l%o

Hampt o n Affi liat e s, Portland, Or., has applied for permits to add more drying kilns and construct a wood-waste boiler to produce steam at its Darrington, Wa., sawmill; although the boiler would not be large enough to generate electricity for the outside market, the move has convinced National Energy Systems Co., Kirkland, Wa., to shelf plans to build a 15to 20-megawatt electricity generating plant next to the mill ...

Milwaukee Electric Tool Corp. has been acquired as part of a $626.6 million stock purchase by Ryobi manufacturer Techtronic Industries Co. Ltd. ...

Cal Cedar 's lumber mill in McCloud, Ca., was purchased by Nestle Waters North American, and will be turned into a water bottling plant: construction is set to begin on the 250-acre site next year

Adobe Lumber's 13-acre site in Petaluma, Ca., was purchased for $5 million by Clover Stornetta, a Petaluma-based milk processing plant

Sherwin-Williams agreed to buy paintbrush and roller manufacturer Paint Sundry Brands Corp. for $295 million ...

Winton Global, Pas Lumber Co. and I ntermountain-Orient are teaming to market Winton brand products in the Southeast

Do It Best Corp. received a 2004 Apex Award for Excellence for its video training program containing segments about best practices in merchandising. improving communication skills and risk management issues ...

Ptrco (Pacific Lumber Co.), Scotia, Ca., received nine safety awards from the California Lumberman's Accident Prevention Association, including the Ems

Mclung Memorial Award, lst, all operations; George Sherman Memorial Award (most-improved safety record for a three-year period), 2nd, all operations; past president's award, 2nd, Britt Lumber; sawmill and lumber manufacturing II, lst, Fortuna, 2nd, Carlotta; lumber remanufacturing and millwork, 1st, Scotia; C.R. Johnson Districts. 2nd. all operations

Brooks-Scanlon's old sawmill in Bend, Or., was demolished in August after sitting vacant for the last 10 years...

Mc Lendon Hardware. Renton. Wa., was named 2003 Dealer of the Year by SFA Saniflo Inc.

Canfor Corp., Vancouver, B.C., is spending $2.6 million to expand and modernize its PolarBoard OSB operation in Fort Nelson, B.C., including two new larger capacity dryers, additional emission control equipment and improvements in the log handling area; the project is expected to be completed in May

TruSe al Te c hno lo g i es' Purfect Glaze window glazing sealants earned the 2003 Technology Innovation Award from Frost & Sullivan

Quikrete has joined forces with coatings manufacturer Valspar to produce and market the first complete line of premium concrete coatings; the initial 14 products in the Quikrete Pro.fessional Concrete Coatings line will be introduced in early 2005 ...

Central Lane Building Supply, Eugene, Or., is now stocking Windsorone boards ...

Anniversaries'. New Lumber & Hardware Co., Federal Way, Wa., 50th ... Associated Oregon Loggers, Salem, Or.,35th Scientific Certffication Systems, Emeryville, Ca.,20th...

New Web sites Anthony Log Homes (Anthony Forest Products), www.anthonyloghomes.com Sun Windows, www.sunwindows. com Tiger Claw Online Deck Store, w w w.deckfastener.com.

Woodgrain Buying American Pine

Huttig Building Products has agreed to sell its assets of American Pine Products, Prineville, Or., to Woodgrain Millwork for $13.8 million. As part of the deal, Huttig will purchase mouldings, doors, windows, door frames and other millwork products from Woodgrain for five years.

The sale allows Huttig to focus on its faster growing core distribution business, and will decrease its debt with the sale's proceeds.

As part of Woodgrain's due diligence on the business, the company discovered a previously unknown release of petroleum hydrocarbons and pentachlorophenol in the soil and groundwater at American Pine Products' Prineville facility. According to the Agency for Toxic Substances and Disease Registry, pentachlorophenol is a restricted use pesticide and is used as a wood preservative.

Huttig is assessing the contamination's scope and potential required remediation. Because the assessment is in a nascent stage, Huttig will lease the facility to Woodgrain until the Oregon Department of Environmental Quality determines no further action is required. After that, Woodgrain will purchase the facility.

Depot Steps Up Walking Program

Earlier this year, intent on reducing health care costs, Home Depot began giving out free pedometers to its employees.

Pedometers-Oreo-sized devices that click away each time the user takes a step-help motivate people to walk more, possibly reducing the risk of heart disease, diabetes, depression and headaches.

Depot's 300-employee store in Clackamas, Or., initially asked for 120 step counters. They were grabbed up so quickly, the store ordered 150 more. Clerk Perfecto Mangual now logs about 10,000 to 12,000 steps a day and in the last year has shed 53 pounds. "I tell you, I've gone through a lot of shoes," he said.

Lead Manager Builds Loyalty

Outsouring lead management and warranty programs has increased MetalWorks' sales lead follow-up capabilities from 2,000 leads to 40,000 hot leads in one fiscal year.

"Managing those leads, and seeing them through to their fullest potential can be very challenging," said Marcus Plowright, MetalWorks managing partner. "Outsourcing those responsibilities to DataBanque has allowed MetalWorks to respond to the avalanche of leads without overwhelming our busy staff."

DataBanque c.e.o. Susan Allen noted, "Lead management, fulfillment, and warranty registration programs are critical for manufacturers such as MetalWorks. It is also very important to mine customer and market data available from leads and warranties to further identify homeowner and contractor audiences, understand industry trends and guide marketing efforts."

Services to manufacturers include providing distributors with the names of homeowners and contractors who inquire about its products, homeowners with a list of distributors or contractors in their area, and contractors with a list of distributors.

MetalWorks also utilized DataBanque's warranty registration program to build contractor relationships. DataBanque receives and processes warranty information from new customers, which helps track customer satisfaction and identify which contractors are doing the best job selling MetalWorks products. Using the data, MetalWorks can better train and support its contractor customers.

DataBanque also provides in-bound phone and e-mail support for quick responses to product inquiries and administers sales promotion and incentive programs.

The company services other manufacturers, such as Alcoa and GAF, and offers sales promotion, lead generation, lead management and dissemination programs to distributors.

DataBanque focuses exclusively on building materials. "We work entirely in that niche, and are intimately familiar with the challenges faced by companies in a multi-level distribution environment," said Sondra Frenz, chief operating officer. "That is why we can knowledgeably and effectively work with our clients. We know the industry."

Lowe's Hackers Plead Guilty

Three men pleaded guilty to hacking into Lowe's national computer system in an attempt to steal credit card information.

Brian Salcedo faces l2 years and seven months in prison for his role in the unsuccessful hacking at Lowe's Southfield, Mi., store in April 2003. His two accomplices, Paul Timmins and Adam Botbyl, admitted to lesser charges.

The men, ages 2I to 23, faced 16 counts of conspiracy. computer fraud, wire fraud, unauthorized computer access, intentional transmission of computer code, and attempted possession of unauthorized access devices.

The trio allegedly drove around Southfield looking for a vulnerable connection in a wireless network, then used a laptop computer, wireless card and antennae to break into Lowe's. They entered the chain's centralized computer network and installed a program to acquire credit card information.

No customer data was obtained and the hackers never made it into Lowe's national database in Wilkesboro. N.C.

Charred ldaho Yard ls Back

A fire destroyed Trader's Building Supply, Sandpoint, Id., just before Christmas. but the store has risen from the ashes to reopen in August

While the store never officially closed, it was helped in its rebuilding efforts by a loyal customer base. As soon as they were able, employees began clearing debris from the fire and customers began stopping by.

The store's grand reopening was in August, and while it is yet to be fully stocked, Trader's has enough materials on hand to do business.

TruServ Curbs E-tailing

Due to poor profit performance, TruServ Corp. last month discontinued direct sales to customers on its Web site. www.truevalue.com.

According to the company, the Web site was launched "in the spring of 2000 believing. as most companies did, that being part of this new e-tailing phenomenon would prove to be not only exciting but also profitable. Unfortunately, over the past few years, projected profits have not been realized. Consumer response to purchasing hardware online has never reached the value predicted by industry experts.

"As part of our journey from good to great, we are committed to focusing on our core business, which is driving consumers into our member stores. We feel that our distribution centers should concentrate solely on supplying members, not individual consumers."

Some TruServ stores felt that online sales was a service and liked the revenue-sharing program, rvhile others viewed the direct purchase option as a competitor.

"They felt they were missing out on cross-sell, up-sell and impulse merchandising opportunities, which would have been possible if the customer had been physically in the store," TruServ explained.

TruServ's Web site still offers product information, a location finder, advice on planning and executing projects, and resources for ideas and instruction.

Depot Settles Colorado Suit

Home Depot agreed to pay $5.5 million to fomer and current employees of its Colorado stores to settle a Iawsuit that alleged there was a hostile work environment based on sender.

race and national origin.

Depot denied any wrongdoing but entered into voluntary mediation with theU.S.Equal Employment Opportunity Commission to avoid protracted litigation.

According to the EEOC, the agreement provides $3 million to resolve discrimination charges by 38 people, and an additional $2.5 million in a class settlement fund for other former and current employees.

USPL Files Chapter 11

US Plastic Lumber Corp. has filed to reorganize under Chapter I I bankruptcy. The firm is seeking an order to get DIP financing to fuel current operations.

"Given our company's cuffent condition," said chief financial officer Michael Schmidt. "we believe that this action will give us the ability to preserve and maximize our value. With the hard work and dedication of our employees and the support of our customers and suppliers, we are confident that the business will emerge from this process a stronger company."

USPL has hired Triax Capital Advisors to supervise and direct its reorgani zation efforts.

9onderosa & Sugut Sn*

El Louise George Waldron Hammann

Phone (909) 727-1767

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OSB Pine Boords

Fire Treoted Plywood Cedor Fencing

Pressufe Treoted Plywood Lottice Ponels

Hordwood Plywood Fiber Cement Siding lmporl Plyd/ood FRP Boord

GUE$TS GATHERED recently at Kelleher Corp.'s restaurant Brix in Yountville, Napa, Ca., for the millwork and lumber wholesaler's vendor appreciation dinner. Enjoying the fine California cuisine were (1) Steve Hutton, Dave Meyer. (2) John Ahlers, Jim Murk, Jeff Barnes. (3) Lany Stevens, Jeff Setzer. (4) Janet Webb, Lud McCrary. (5) Mark & Paige Westlake, John & Trish Monison. (6) Matt Sauder. (7) Bany Ganison, Larry White, Sean Williams. (8) Rich Baskins, Don Kelleher. (9) Brad Mehl, Ryan Land. (10) Bill Huber, Charlb Risinger. (11)John Dahl, Don Mays. (12) Mike Welch, Ann White, Joe Lumadue. (13)Jeff Tomai, Trevor Fir'ft' {14} Brian Peak' Jelf Lundegard photos by rhe Merchant Matsiziae

Fax {909) 727-1766

Scheduled Truck Runs, Vlvll Progroms, Monlhly, Quorferly, Yeorly Pricing Progroms, Cul-To-Size, Jusl-ln-Time Delivery, One-Stop Shopping, Experienced Soles Sloff, Worehouse, Direct ond Relood Soles, Speciotiies:

Long Length Plwood ond OSB

Thick Ponels - Alternolive llems

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Low Grode Plywood ond OSB Solvoge/Closeoui Buys