Exotic hardwood's high mark-up

nNE of the most overlooked profit v potentials for lumber and building materials dealers is the wide array of exotic hardwoods available. They command a higher price and provide a much better mark-up than most items in the store.

Exotic hardwood also has a natural appeal because of its unusual appearance, the unique efiects which can be achieved, the interesting names and country of origin. They can be used for carvings, picture frameso shelves, cabinets, tables, lanps, walls, screens, gun stocks, bows, boats, mounting plaques and in hundreds of other ways.

One of the obvious concerns for the dealer is how to stock these woods since there are over 75 different species. Availability is also more than a passing problem. Lack of knowledge by store personnel is perhaps the biggest deterrent to doing an effective job of merchandising exotic hardwoods.

Many dealers have overcome these obstacles by obtaining the services of exotic hardwoods specialists who know which items can be worked bv the consumer, the most popular species and the ones which are readily available.

One wholesale distributor who has made an all-out efiort to put the lumber and building materials dealer in the exotic hardwoods business is Penberthy Lumber Co. of Los Angeles.

Sfory aI q Glsnce

An examination of varying price mark-ups on exotic hardwoods and how they can exceed those on some domestic species . supplier's merchandising backup can play a vital role.

Penberthy maintains a hardwoods inventory of over 7 million feet. They have their own kilns to closely control the dying of each species and a complete planing mill to produce any detail desired. The company has developed a balanced inventory approach for dealers which provides for fast turn over. Seven different species are included in the package with sev- eral of the most convenient sizes. qINCE paneling is one of the mav jo. lines sold by building materials dealers, plan to hold a sales meeting now to capture your share of the hardwood plywood paneling market, the nation's most popular prefinished paneling, outselling by five to one all other types.

These species include shedua, teak, Indian rosewood, goncalo alvez, Indian laurel, angico and louro preto. This gives the customers a wide selection of pattern and color along with various price ranges. Several of these species can actually be purchased for less than American walnut in comparable grades.

For example, shedu which is a substitute for walnut, can be purchased for approximately $0.67 per foot and retailed for $1.37, while walnut in premium grade costs $1.40 and re' tails for approximately $2.00. Teak can be purchased for $1.20 and easily sold at $2.00-$2.25 per foot. Indian rosewood has a cost of $2.00 and re' tails for approximately $3.75.

In addition to providing a conven' ient stocking program, Penberthy sup' plies literature on each species which shows the wood in full color and out' lines its characteristies.

The firm also conducts seminar programs on exotic hardwoods for dealer personnel, architects, decora' tors, builders, and other trades. Among those dealers who are utiliz' ing the Penberthy program, several report that the rate of return Per square foot of space required for exotic hardwoods is among the high' est for any item in the store.

EI0TIG hard*oods require special handling to assure the correct 'moisture content fot workability and to eliminate warping and checkins.'Penberthy's balanced dealer inventories ire supplieit dry, in various widths, lengths and ihicknesses and surfaced four sides.

Here's how to plan an effective sales meeting to kick off this fall's hardwood paneling program.

Sales Meeting Plan

(f ) Hold meeting in your showroom adjacent to paneling display to insure that your salesmen are in best selling environment. Meeting should be held in the morning prior to store opening and should not exceed one hour, including a fifteen minute question period.

How to sell hardwood paneling

!; #..i b) Natural finishes on many types of domestic and imported plyuood which are stained in a variety of permanent furniture finish colors. Birch: p€can, walnut, oak and elm are the most popular domestic species. c) Attractive reproductions of natural veneer panels are available in a wide selection of decorated vinyl, prints and embossed prints which are fused to genuine hardwood plywood panels. d) Hardwood plywood is more dimensionally stable and structurally stronger than reconstituted fiber panels. e) Hardwood paneling meets Class III flamespread requirements of 75-200 under ASTM E-84 demanded by many building code

By Gharles E. Enyart vp., prefinish dept. Hardwood Plywood Mfg. Assn.

nounce which slow moving panels have been dropped. Explain pricing of new panels as well as special pricing for "close outs."

(4) Let your salesmen know your store's paneling sales goals, breaking

Story sI a Glonce

Helpful do's and dont's in selling hardwood paneling plus a step-by-step guide to facts and techniques a good sales meeting should cover.

volume down on daily and weekly basis. We recommend special group or individual incentives to help achieve goals, letting your salesmen know regularly where they stand.

(5) Outline your company's plans for advertising, store promotions, sales aids and new displays. Inform your salesmen of what's being done difierently to help them sell more paneling.

(6) Discuss improved techniques {or selling hardwood paneling and related products.

(2) Explain prefinished hardwood plywood paneling, its benefits and advantages over other types of wall coverings.

a) Explain prefinished hardwood paneling is available in a wide variety of thicknesses, sizes, and finishes in all price ranges-thicknesses of 5/32" (or Amm),3/16" andYE" in 4'x 7',4! x 8'and 4'x l0/ size sheets.

authorities. HPMA glue bond, structural and flamespread stamps are available for manufacturers using the HPMA inspection, testing and certification programs.

f) Prefinished hardwood panel. ing is easily maintained by wiping with a polishing cloth.

(3) Review product line you have selected for fall marketnew displays of full size panels. Also an-

. Qualify customer's requirements based on value of his property, room location and expenditures being planned for other remodeling materials. A customer purchasing luxury carpet, expensive furniture and drapes would be done a grave injustice by selling him an inappropriate 'obargain" panel. Don't undersell your customers, sell them up ! Satisfied customers take pride in their new projects and can be a source of new customer prospects and third party endorsements.

. Recommend proper type and thickness of prefinished hardwood paneling in accordance with accepted building standards; open framittg demands use of l/+" thick panels to provide stronger walls.

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