on delivery costs How you can save G; a,

This month we continue publishing the answers to the Delivery Practices Questionnaire presented in the October issue as well as in the National Lumber and Building Moteriol Dealers Association's dealer services workshops at their convention.

Lynch reports that there ore no right or wrong onswers. The whole idea is to let everyone answer for themselves what is going on in their companies and compare thst with the answers of others including our delivery expert. The answers to questions I-3 were printed in the November issue-ed.

(4) Do you have personal knowledge of a written list of responsibilities and duties set up for whoever does the dispatching in your company to follow. If you operate, as most do, you answered "NO. " Many respondents will answer that it is not in writing, but everyone knows what to do. Another classic rebuttal is that my people do not need an exit sign to know what to do with the door. Whether it is generally recognized or not, the facts remain that no sale is complete until delivery is made and delivery is demonstrably costing the building material dealer about 2090 of his daily operating expenses to execute. Published figures, when looked at closely, indicate that sales that are delivered account for about 5590 of all sales. A "NO" answer means that by word of mouth is how 20s/o of the daily expenses and the lion's share of sales are being managed.

(5) Do you use, or know of, a load management system used by your company to insure effective load building, routing and dispatching?

"You must be kidding! We service our customers and get them what they want when they want it. It is our business to get the job done. What system is needed to go from Point A to Point B and put stuff on a flat bed to do it?"

If this was your reaction and your answer was "NO," you are in the majority. Most dealers answer "NO." Tests and evaluations show that this same "majority" historically and consistently send

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In California (800) 582-3950

Outside California (805) 833-0429

Recovery Threat

(Continued from page 15) deficits will slow the recovery as the federal shortfall will prevent interest rates from falling. Others, representing the supply siders who in the past maintained tax cuts would cause the deficit to disappear, can now claim that debt doesn't matter nor does deficit spending cause interest rates to stay high. An explanation as to what is keeping money rates high, if it is not the deficit, has yet to be forthcoming.

With a year to go before the 1984 elections, it is doubtful the administration will reverse its stand in the lowering of personal tax rates, which probably helped in lowering the unemployment rate. The Federal Reserve will have to cope with debt at least until 1985.

No doubt there will be risk involved with consumer price inflation as the fed has to decide what the proper rate of money growth should be. Reserve requirements for banks will be altered in February causing some additional confusion in interpreting money numbers and their influence on interest rates. But in any event

1,600,000 housing starts will probably be initiated.

With such a scenario we must recognize the situation of our economic environment and know what needs to be done, and that in fact we are doing it. We cannot ignore recurring problems such as credit quality, abrupt changes in the structure of our market, and the heavy burden of investing as all businesses become more capital intensive. Companies will be facing higher costs of both material and overhead. These higher costs must be covered by expense reductions and additional sales growth, by studying and developing an ability to deliver the product mix most appropriate to a given local market place.

May health, happiness and good fortune shine on you and yours throughout this holiday season and the coming year.

Feds Hit Asbestos Policy

Denver, Co., based Johns-Manville, now called Manville Corp., has been accused of hiding the facts about asbestos dust from its workers.

The Justice department has charged that the firm knew it was endangering the lives of World War II shipyard workers by exposing them to asbestos dust. In addition, the feds charged "it was Johns-Manville's policy not to tell its own workers of diagnoses of asbestosis until they became totally disabled."

The charges were made in response to a suit by Manville seeking government payment of more than $950,000 of the legal costs and awards paid by the firm to former workers who contracted asbestos-related diseases.

Western Wood Exports Climb

Western wood exports for the first six months of '83 gained in the Western Hemisphere, Europe and Oceania and declined in Asia in comparison to the first half of 1982.

Softwood exports overall were 930,237 mbf, up 690 from 1982 first half exports of 873,956 mbf. Exports to Western hemisphere countries were l69o ahead of 1982 with 344,622 mbf. Canada's total for June was 53,763 mbf compared to 19,930 in June 1982 with a first half total of 233,209 mbf compared to 141,054 mbf in '82.

Mexico has imported only a third of the first half 1982 total while other Centrd American countries are ahead of last year's figures.

The United Kingdom and Italy have increased imports raising Europe's 127,897 mbf to 150,267 mbf. Oceania countries including Australia were importing 3990 more than last year at the half way mark.

20th

N.M.;

Mentink,

Allen,

Lumber

Delivery Cost

(Continued from page 5'1 ) trucks out on deliveries 6O9o empty. The practice is both prevalent and costly.

(6) Does your company charge for hand placement of items like shingles and wall board, or picking up materials for credit?

"No, we just price our merchandise three ways-take with or pick up, delivered and dumped, and delivered and placed." If you are with the majority and say "NO," you should know that by actual count it costs about 7s/o to deliver and dump and about l4v/o to deliver and place on the average, but a basic simple delivery that is dumped costs most dealers about $35 to make. Therefore, if the merchandise margins do not produce about $35 more, or a total of $70, you will be losing money.

Picking up merchandise is a reverse delivery without benefit of a yard crew and/or a forklift and is likely the single most expensive function in deliverv.

(7) From existing company records could you state how much in sales was delivered, at what cost, and in how many stops (deliveries) last year?

Once again the typical answer is "NO." This is one of those crawl, walk and run situations. Historically, the industry's accounting practices don't even include identification of delivery costs on operating statements, much less setting up the methodology needed to capture the data necessary to determine the costs. Some record "stops" and some know the value of those stops. The crying need to know is demonstrated by the knowledge of those who have the records to provide it. One study done over a one year period with seven yards indicated that almost 4090 of the deliveries each year were under $300 each. They averaged $120 each in value, or sales dollars, to the companies involved. The costs per stop of these deliveries averaged over $50 each to make. Could your lack of decision making information be similar?

Annual Hardwood Meeting

The Western Hardwood Association will hold its semi-annual meeting in the Portland, Or., area in May, Paul Meyers, United Forest Products, and Ken McCoun, North Pacific Lumber Co., in charge.

Marvin Noble, Noble & Bittner Plug Co., was elected president at the annual meeting in San Diego, Ca., Oct.27-28; Ed Mason, Great Western Lumber Co., vice president,and Meyers, treasurer. Jack Lundberg and Bill Nicholson, Cascade Hardwood, were elected to the board of directors.

Dave Walther, Simmons Lumber Co., and Don Reel, Reel Lumber Co., organized the program which included Joseph A. Wahed, vice president and chief economist, Wells Fargo Bank, and *Iimmy Weldon, tv personality,as speakers. Reg Justus, JustWood Forest Products Co., and Noble shared first and second place in the annual membership contest.

When sending in a change ol address please include zip code on borh oltl and nev' addrisses ond either the old label or rhe inlbrmation from it. Thanks!

Best Boss In The Business

If you find use for this letter in your magazine I would appreciate it. It is about a man I respect very much, You may change or correct words but don't lose the meaning.

Thank You, Don Wallace Myrtle Ave. Lumber

P.O. Box 2330 Monrovia, Ca. 91016

Norbert Bundschuh has been in the lumber business for 40 plus years, He's been a leader in many ways to myself and other employees. He's one of the nicest persons I've had the pleasure of working for. He has led the way for me to become a better salesman, and to care about the customers I help. He built his business on hometown values and the best service around. There's many things I could say about this man, but everyone who knows him already knows the goodness he has shared. He was forced to retire due to illness; he will be missed by everyone that knows him. No one could ever ask for a better boss than Norbert. Norbert, thank you, you're the best boss I ever had.

A.fter a series of serious physicol problems, Norbert has left the hospitol ond is now in o rest home, Friends and well wishers may write him c/o Myrtle Avenue Lumber Co., 123 W. Pomono Ave., Monrovio, Ca 91016.-ed.