Big bucks potential in industrial accounts

EWS BULLETINS from across the country:

"The largest wood-frame project ever built in Orange County, Ca., 770 apartment units resulting in 800,000 sq. ft. of living area, is underway. The four-story, $45 million complex will require 10,250,000 bd. ft. of lumber. ."

"Some 200 portable elementary school buildings, each 960 sq. ft,, are consuming thousands of bd. ft. of high-grade lumber, emptying the shelves of a local Fort Lauderdale, Fl., lumber chain. . ."

"The Twin Cities' first five-storv wood frame building, a self-contained retirement community, nears completion. While the final steel bid was more than $1.6 million, wood framing cost $836,000. ."

"Marriott Corp. has commissioned the design of wood-frame buildings for its 300 luxury hotel expansion. Along with the RaIIles and LeMeridien chains' expansions in wood, the three corporations have the potential to use over 150 million bd. ft. of lumber by 1990 ."

Story at a Glance

Ways dealers pursue industrial sales. . big money for both independents and chains ... how to use deep inventory, prompt, dependable senric€, special treatment to attract industrial accounts.

commercial wood uses continues to grow.

Industrial accounts can be big money repeat business for independent dealers and chains alike. Scotty's, Winter Haven, Fl." reached $515.3 million in sales in fiscal 1987. having long devoted equal time to pursuing commercial users. A fairly constant one fourth of sales are made to professional builders, contractors, developers and remodelers. Sales to commercial customers for the maintenance of hotels, office buildings, schools, government agency buildings and condominiums amounted to 8%, or well over $40 million last year.

To accommodate industrial accounts, it is necessary to have a large inventory and access to everything and anything a builder may need. "We have the quantity," says Herb Eaton, Minton's Lumber & Supply, Mountain View, Ca. "They know it's here. Our hardware department, for example, has a depth that most other dealers' don't."

Ruel Alexander, Canyon Drive Lumber Co., Amarillo, Tx., also has to stock his shelves with extra items for the benefit of his contractor customers. "We do carry some items, like treated materials, laminated beams, glulam, microlam and Trus Joist materials, that all dealers don't necessarily carry," he says.

The Merchant Magazine trial salesman whose life revolves around pleasing his contractor customers. "He's well liked, knowledgeable and humorous," says Eaton. "They don't dread him coming by, Everyone looks forward to seeing him even if they don't need anything. But most of all, he puts up with their needs. So many times they have out of the ordinary requests. He goes out of his way to get the information or products they need, no matter how large or how small.

"He comes in at 5:30 a.m. and is available for them. He helps them get an early start on their day. He chases around in his pickup truck for whatever they need. And while we don't make anything off the little trips, it averages out just fine."

To attain new industrial accounts. Minton's doesn't have to rely on mail solicitation or "being a pest.'o The salesman might stop by to speak with new purchasing agents in the area, but he lets personal experience do the rest. "A satisfied customer soon talks," Eaton says. "It's amazing how much these businesses talk to each other. So, our industrial accounts have been built in a snowballing effect as people learn from each other that we have the timely delivery, daily service and top quality materials that they Reed."

In the small town of Edna, Tx., Edna Lumber Co. must look outside the city limits for business. Says Edna's Georye Natsis, "What we'll do is leave signs at the jobsites we supply, reading.'Materials provided by Edna Lumber Co.' "

Edna Lumber has also discovered that it must provide extra favors to maintain and handle industrial accounts. "We have to have someone on our staffwho can take the projects off," says Natsis. "someone who can figure out what goes into the project and how much of each material will be needed. It's a service you can't charge for.'n

Ground-breaking use of wood for mammoth industrial projects is making national news. Dealers are retaining their do-it-yourself customer base, while actively pursuing industrial accounts. And the pie of

But more importantly, because contractors have stricter deadlines than the do-it-yourselfer, retailers must be able to give each special attention. "It all boils down to service,tt says Alexander. "You can't really sell differently. Basically everyone has the same caliber of personnel and the same products. There are a lot ofdifferent approaches, but the primary factor still is prompt, dependable service."

Minton's employs a single indus-

These companies have found it helpful to also develop house plans, offer discounts based 0n monthlv volume, and have a tool maintenance department, which the industrial accounts in partieular seem to like and take advantage of.

Yet all the trouble and added energy can mean big money. "lndustrial accounts have grown to expect special treatment," says Eaton. "And we're happy to give it to them at no additional cost."