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Plumbing and electrical can be a money maker in a yard that really wants consumer business

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OBITUARIES

OBITUARIES

ing layout and personnel in a bid for the consumer trade, the more firmly convinced I become that you have to go all the way if you intend to succeed.

If you hate water, why put in a swimming pool?

By REED TAWTON monogement consultont

T|HERE is actually some logic for havr ing a good paint department in a lumber store every piece of wood is going to be sanded, painted or varnished .. paints and varnishes are the preservatives that give even greater beauty to wood and so on. Besides, a good paint department in a good lumber yard makes money!

However it takes a little more soul searching to decide to add a real plumbing and electrical department to the limited hardware that most lumber dealers carry.

You have to ask yourself these questions:

Do I want to be a complete lumberhardware store?

Do I want volume traffic?

Do I want to attract 40 to 50 percent consumer trade?

Am I really interested 'in the consumer business, or will I let it take care of itself once the contractor business makes its comeback?

The more I see of traditional lumber dealers attempting to re-orient their exist-

If you and your personnel don't genuinely like people and want lots of them in your store, don't waste money trying to pretend to be a consumer-oriented store.

On the other hand, if you are building up to become a good neighborhood lumber-hardware store, you must have plumbing and electrical supplies, and a lot of them.

Second only to paint, plurnbing and' electrical will return the greatest amount ol lloor sales per sq. lt. ol space occupied. More than hardware, housewares or appliances.

One store I visited had a "plumbing department" but reported it wasn't doing very well. Investigation proved that it was in fact doing very poorly turnover of only once a year! Actually, there was not any pipe over six inches long and none of the parts and pieces required for the nonstandardized sinks and lavatories. A few washers and nipples and tees, but no faucets, no replacement parts except floats for the toilet. No wonder it wasn't doing well.

Another dealer had a very complete supply of Japanese pipe and accessories, but he reported that he sold very little to consumers and the do-it-yourself trade. And why not? He closes at 4:30 daily except Saturday when he is open until noon with half his regular sales force . . and closed Sundavs and holidavs.

Ask yourself, when was the last time you had to replace a leaky drain pipe or refit a faucet? It always happens on Memorial Day or on a Saturday afternoon doe:n't it? So the first place you go for the parts is the place you know will be open . . today and tomorrow. There's nothing worse than spending half the afternoon on a dirty project you don't want to do anyhow and then to find that the store where you've been getting your parts is closed on Sundays. So then you have to start all over again at another store five miles farther away. If you're like most people you'll go first to the store where you know you'll find what you want with a varied selection to choose from. and you'll go rvhere you know it'll be open when you need it.

More than any other merchandise, plumbing and electrical fall into those categories of special need that we buy just when we need them. About half the sales in these departments require a call-back sale for a part forgotten or another damaged when the old part was replaced.

When you sell the lumber and materials for a room addition or major panelling job, there is an ideal opportunity to add to the basic wiring, new fixtures and outlets and more modern or more ornate switch plates and lighting fixtures. But you can only sell them if you have an adequate and varied stock to show the customer.

There are several plumbing supply firms which can put in an opening inventory for about $1500 to $2000 and their sales. man will call every other week or once a month to see what you've sold and what is not moving and help you with your rnerchandising. These firms have their own clear plastic packages of small items. They'll put your store name on the package if your purchasing volume is great enough. They even have nipples and tees skin-packaged in plastic to keep out dirt and eliminate cut fingers.

Story q] s Glonce

How to evaluate the ilrofitability for you of plumbing and electricdl departments as well how to set up the departments.

A pipe cutter and a supply of pipe can be handled in much the same munn", as your present milling and sawing. Or the cutter may be located in a more conspicuous place to remind all your customers that you can meet all their house repair needs.

Occasionally an electrical wholesaler or distributor will put in an electrical department strictly on consignment, even sup- plying the gondola. But more often iis better to purchase the original inventory with an agreement to trade for merchandise any line of products which does not sell in a reasonable length of time.

Most hardware stores devote about 300 sq. ft. to the plumbing and electrical deportment. You should work out a plan to keep track of sales from tlis departrnent separate from paint and hardware.

If you decide to test your own department against the accepted average for similar stores, here's how. Measure the space devoted to plumbing and electrical to the center of the aisle. If it's against a wall, measure from the wall to the center of the aisle. In this manner vou will determine the total square footage devoted to this department. A good national average amount of sales is about $4.30 per sq. ft. per month, based on annual sales.

So, if you have 300 sq. ft. devoted to plumbing and electrical supplies, you should sell about $1290 per month or $15,4180 per year if your advertising, merchandising and salesmanship are average.

Housing Slqrl Increqse Seen

Housing starts in the ll vrestern states during 1968 will total 250,000 units, up 17 percent over L967, Sanford R. Goodkin, a real estate forecaster has said.

He noted that western homebuilding dropped from a peak 435,900 units in 1963 to a low of 211,200 in 1966.

In 1963, western housing production accounted Lor 27.1 percent of all housing starts in the nation. This declined to a low

Swaner lHlardwood Co, ris

Mln. Charles [ordan 'oo

of the f:inma

A respected hardwoodmao, Mr. Jordan is a veteran of more than 15 years in the lumber business. He joins Keith Swaner in the operation of the firm.

Swaner Hardwood is now offering southern and pacific Coast hardwoods as well as imported hardwoods and prefinished and unfinished hardwood plywoods. Direct mill shipments or from local stock.

'We welcome your inquiries.

of 16.9 percent in 1966 and is expected to rise to about 18 percent in 196$ said Goodkin.

California accounted Lor 22.4 percent of all the housing starts in ttre nation in 1963. This has gradually decreased to only 9.9 percent in 1966 and an estimated 9.5 percent in 1967 and 10.5 percent in 1968.

Goodkin predicted that the net result of the 10 percent surcharge on income taxes would lead to an estimated increase of 100,000 starts in the U.S. in 1968.

Westloke Joins Kimberly-Clo'rk

Stuart A. Westlake, has joined wood products sales at Kimberly'Clark, Ander. son, Calif., with the primary responsibility for sales of moulding and mill work. Westlake is former sales manager for Diamond National in Chico and has assumed the duties of George Winters.

'ol am extremely pleased that Stu has joined us," Harry Bleile, Kimberly-Clark's marketing manager for wood products, said. Westlake will live in Reddins with his wife Clarice and three childrin, Mark, David, and John.

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