HOME GELNTER MERGHANT

BILL FISHMAN

Bill Fishman & Affiliates

11650 lberia Place San Diego, Ca.92128

I'M OFTEN asked what does the term I"merchandising an ad" specifically mean? I answer this question with an instance that occurred over 15 years ago when I was the director of sales promotion for a national home center chain.

The buyer walked into my office and said, "Bill, I just gambled on a helluva buy. I'm bringing in acarload of vanities. There's no room in the warehouse and my goal is to move them all out over the weekend. I've negotiated for enough cooperative advertising funds to run a full-page ad but I need your help in working out a program to merchandise the ad to be sure that we've got a sell-out' What do we do?"

Well, the first thing we did was schedule a two-color page ad in the Thursday nieht paper to run during the week that the merchandise hit the stores. We then arranged to have the center promotional aisles cleared for the total vanity display. Fact tags and price tags were made to hang from each vanity showing the features, benefits, regular price and sale price. A banner was produced to hang above the entire vanity display. When the customers walked into the store they just couldn't miss this mass display down the center aisle.

The store received the proof of the ad so that they could grasp the size and dramatic presentation of it. The buyer then sent out bulletins telling all store personnel about his upcoming major event and what the store could expect in the way of vanity and accessory sales if they merchandised the ad correctly.

Before the ad actually ran, a telephone conference call was arranged to again emphasize the importance of this promotion and what it would mean to that department in the way of sales and profits.

Everyone from the receiving clerk to the cashier knew about the sales event and his role in keeping the floor inventory full and neat during this planned, three-day promotion. The store personnel were given an incentive program that all employees would share in if the store reached the total sell-out goal.

By Thursday evening the store was set and ready to greet the vanity customers. It worked. Monday morning the store reported a complete sell-out. It was one of the biggest weekends ever recorded for that key of the register.

What makes this story interesting is that the newspaper lost the ad. It never did run. Think about that for a minute. By the way, how ready is your store for next week's ad?

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HARRY MENDENHALL executive vice president Lumber Merchants Association of Northern California 1055 Lincoln Ave. San Jose, Ca.95125 (408) 295.4103

ITHERE IS no way to describe rhe r present overview of business. Visits to dealers in the Northern California area show many different descriptions of business activity.

In some areas, both contractor and walk-in trade are as flat as they could possibly be. Other areas indicate no contractor business but an increase in walkin trade. A few isolated areas report an increase in contractor trade. The increase in some areas is due to lifting of moratoriums, coastal zoning changes, and home builders with cash from large metropolitan areas locating near lakes or mountain resorts.

It appears to be a time for those who have and those who have not. Wealth is beginning to play an important role in home construction. With the price of building materials falling and builders looking for any small job, it is a home builders market. That is, it is a market for those not requiring a mortgage to build. For those with cash available, it is the time to build.

Many dealers, who previously developed the flexibility to move towards either contractor or do-it-yourself trade as the situation demanded, find themselves in an enviable position. Business is still sufficient to make a small profit even though they have had to trim excesses from staff and bring in a strong program of economic efficiency.

Companies who have not kept pace with the changing industry, particularly those who feel that attendance at workshops, seminars, and management information sessions is not necessary, may find the business climate a bit difficult at the present.

While some dealers may scoff at attendance at management seminars, progressive dealers realize that information is essential and the side benefit of discussing problems and conditions with other dealers is vital to their existence. Those dealers, continually seeking the exchange of information and ideas, fully understand that when economic conditions are such as we currently have, the knowledge they have obtained pays off.

One of the most important attributes of the LMA is the enthusiasm and willingness of dealers to openly discuss their operations with each other. This makes every participant a stronger person and a stronger businessman while giving tremendous strength to the association. Whenever members of an industry develop the rapport that we find in LMA, the resulting strength perpetuates that group.

This is the time to participate in every gathering of the industry group. It may seem difficult to meet the challenge of this recession alone, but the outstanding group strength will permeate each individual. Don't try to stand alone.

0UTGOING PRESIDENT (1) Jim Magbee awards plaque to Paul Netemeyer. (2) Everette Cupit, John Garten. (3) W.0. & Blanche Smith, Claire & Doug Ashy. (4) Homer, Hope, Bill & Nancy Hayward. (5) John Sayer, Marge Witlnebel. (6) Sid and "Hank" Voorhees. (7) Lew Beach, Emily Weldon, Joan Beach. (8) David & Cynthia Christesen, Ray & Befty Treen. (9) Bobby & Eileen Butler, Wanda and Roger Hough. (10) Wally Ste{fan, lrv Dellinger. (1'l) Mike & Teri 0'Malley. (12) Al & Bernice Newkirk, Joan Winward, Dick & Judy Carver. (13) Fred & Ellen Caruso. (14) Jerry Jewelt, ir., Ralph Norman. (15) Carol and Dave Patterson. (16) Saint Clair Bienvenu, Pete Bowers, Jr., Ray Harrell.

lltITH A HEARTY Western UU welcome from the Mountain States Lumber Dealers Association, celebrating its 90th anniversary this year, the National Lumber and Building Material Dealers Association met in Colorado Springs, Co., to convene its 65th annual convention.

Western togs were the order of the day as the first major event on the program, a "Welcome to Col-