HOME GENTER MERGHANT

Bill Fishman

Bill Fishman & Affiliates

11650 lberia Place

San Diego, Ca.92128 l/Join the crowd of building material retailers who find comfort in the big lie they tell themselves about their competition. They recite the rhetoric when they're asked if the competition is affecting their business. The phrase goes something like this: "They don't give any service. "

|rlo you want to hide from reality?

It's usually preceeded with"heck no they don't bother us. Their customers are not our customers." Then the big clincher. "They don't give any service. "

I've heard those words from presidents of retail chains, operations officers, merchandisers, store managers and department managers. The "they" they're referring to are the Handyman's the Builders Emporiums, the Ernst, the Ole's, the Grossmans, the Pay 'N Pak and the other mass merchandising chains even the K-Marc!

Another comforting but deadly device employed by some retailers is the "we can price l07o higher than our competition because they don't offer any service." But let's compare these services and conveniences from the consumer's point of view. Location:

The chain is probably located on a main traffic artery near the heavily populated residential area. The "Full(?) Service" operator is possibly in the indusEial part of town or next to the railroad tracks on Depot Street.

Store Size:

Most home center chains boast 20, 30,40 or even 100,000 sq. ft. units. Many "Full(?) Service" stores try to compete in as liule as a2500 sq. ft. showroom.

Selection:

The ' 'Full( ?) Service ' ' store offers their customers 1200 SKU's against the chains 22,m0 or more.

Store Hours: Compare the chain store's 80 hours per week to the "Full(?) Service" store's 39 hours.

In-Stock Conditions:

The sophisticated chains now use EDP to maintain a constant stock vigil. How many customers does the poorly run "Full(?) Service" operator turn away because he's out?

Parking:

380 well-lighted spaces vs. 20 spaces. 'Nuf said.

Shopping Ease: During peak hours the chain offers 8 to 20 (or more) manned check-out counters to ring up the attractively displayed selfselection merchandise. And at the "Full(?) Service" store . . well, how do you think customers feel about having to wait for a ticket to be written for a can of paint when the customer in front is having his take-off list priced?

Visual Merchandising:

Sorry, too many of the "Full(?) Seryice" retailers feature dustv endcaps with left-over merchandise. The chains merchandise and sign their store fixtures for excitement . . and change their displays frequently.

Instructions:

I'll give the "Full(?) Service" store lots of brownie points for individualized one-on-one selling and how-to-do-it information. But it's the chains who fill their aisles and activity rooms by offering clinics, demonshations, and well-stocked literature racks.

Sales Help:

You'll probably find from 15 to 50 green but aggressive young store employees at the chain store. The "Full(?) Service" store will boast four veteran countermen.

(Ray Kroc of McDonald's fame says .'.as long as you're green, you're growing. As soon as you're ripe you start to rot. ")

Pricing:

At the "Full(?) Service" store the customer is exposed to pricing that includes delivery and only sees the lower prices on advertised "cash & cany" merchandise. The chain prices low initially and then makes delivery available at extra cost when requested.

(Please turn to page 89)

CHUCK LINK executive director

lltHAT the 1980 Census will show I U about the West is predicted in Surcet Magazine' s newsletter quoting American Demographics

The West remains the fastest growing region of the country. It is expected that the population of the 13- 'state region has -increased to 41.6 million residents, a l9.5Vo gain since 1970. By contast, the growth rates for the other U.S. regions are: -O.ZVo for the Northeast, 3.5Vo for the North Central states, 15.47o for the South, and 9.l%o for ttre U.S. as a whole. Politically, this could add up to eight new Congressional seats for the West.

Nine of the ten fastest growing states are in the West. Since 1970, Nevada has increased by 50.l%o, followed bv Arizona. Wyomins, Florida, Alaska,'Utah, Idahol Colo-rado. and New Mexico. California added 2,980,000 new residents in the 1970's to record the largest absolute population gain of any state. Other Western states with large population gains include Arizona (750,000), Colorado (620,000), and Washington (560,000). Overall. the 13 Western states will account for 37Vo of the nation's population growth. ln 1979, the tax rate was 6.l3Vo on a taxable income maximum of

If workers frnd they can get away with too-long coffee breaks or take paid days off when they are not ill, then they are tempted to steal.

Management can and should counteract stealing by screening employees carefully and adopting policies that lead to worker satisfaction, since increased tension and stress among workers leads to employee stealing.

It's not too early to begin Preparing your employees (and your budget planners) for the coming 1981 increase in social security taxes.

$22,9N. This year the taxable income maximum moved to $25.900. Next vear (1981) the tax rate is slated to "so to'6.654o. and the taxable income inaximum will rise to $29,700.

Thus. the combined maximum tax Daid by both employer and emPloYbe will go to $3,950.10 in l98l ($1975.05 apiece), up from $2,807.54 in 1979 and $3,175.34 this year.

All employees will feel the imPact of the tax rate increase, and manY will be affected by the increase in the taxable income maximum. EmPloYers will likewise pay more.

Mr. and Mrs. William C. "Bill" Bell celebrated their 70th wedding anniversary recently. He was executive v.p. of the Western Association lor many years.

Phil Bjorn, Langley Building SuPply, Langley, Wa., is recovering from a heart attack.

Sid Voorhees, Eugene Planing Mill, Eugene, Or., Partner and WBMA v.p., was selected as Retailer of the Year by the Eugene Chamber of Commerce. He is also their nominee for the Oregon Retailer of the Year.

Bayview Lumber Co. had a grand opening of their new Elma, Wa,, yq{ wittr BoU Bush, owner, and Rick Bush, manager.