HOME GENTER MERGHANT

BILL FISHMAN

Bill Fishman & Afliliates

11650 lberia Place

San Diego, Ca.92128 most. Ganahl Lumber is a Full Service Lumber Yard!

IIETER Canahl is one of my favorite Fpaopra. He rs cororar ano most considerate. I met him last year when he appeared on a panel at the Western Home Center Show. It was with much embarrassment that I discovered that in a recent article I neglected to list Ganahl Lumber as a "must visit" during the Western Home Center Show in Anaheim. The yard is the nearest operation to the Anaheim Convention Center.

I finally visited Ganahl Lumber for the first time a few days before the show. It's a magnificent operation. The yard and showroom are exciting. There is never any doubt as to what business this dealer is in. The store layout, floor and yard coverage and the merchandise presentation make a statement. First and fore-

I sat in Peter's office and we rapped for a short time. I mentioned how clearly his store and yard identified their positioning. Peter reached into his desk and pulled out a single sheet of paper. That paper says much more about strategy than many wordy textbooks.

With Peter Ganahl'spermission-here's what I read:

19t5 BUSINESS DEFINITION:

..WHAT WE ARE. , AND AREN'T''

Our facilities, equipment, procedures, skills and merchandise mix are those needed to sell professional builders of all sizes and industrial users. These same resources are also what's needed for a large segment of the d-i-y market. We want and need all three market segments.

This strategy sets us apart from the home centers around us (National Lumber, Angels, Ole's, Builders Emporium and Handyman) in that there are certain things we do that they can't or won't do:

Much more lumber and building materials.

Milling services.

Delivery trucks.

(4) Phone sales.

(5) Credit.

(6) Separate sales areas and sales teams for contractor and industrial.

(7) Outside sales force.

(E) More extensive special order service.

(9) Early morning hours.

And there are certain things that Ganahl Lumber is unwilling to do because it might conflict with the builder/industrial side of the business:

(1) Installed sales: we don't want to compete with our builders.

(2) We don't have supermarket style locations that are within shopping centers.

(3) We don't have conventional home center layouts where you must pass through a line of cash registers to get out.

(4) We don't price all our lumber and building materials and, as a result, we are only partially self-service.

And, third, there are certain things we are not currently doing for the d-i-y market because it would be of little or no benefit to the builder,/industrial side of the business:

(l) We don't carry certain product lines:

*Housewares *FloorCoverings

*Telephones *Garden

*Furniture *Seasonal

*Wallpapers *Automotive

(2) We don't call ourselves a home center.

In 1985 we are going to continue this same strategy. We will continue to experiment with new products and new wrinkles in our existing services and procedures. But in so doing, we will take care not to do anything that conflicts with any existing market segment.

How clear is your 1985 mission?

IIANY factors combine to form lUIa work climate that helps employees to be motivated to greater productivity. Almost all of these factors relate to the way in which supervisors and managers interact with their subordinates.

A group of 230 supervisors, each with 20-plus years experience, was asked to share ways of motivating employees. The following is based on their responses.

Recognize employees for a job well done. This recognition may take the form of verbal or written comments or material rewards.

Emphasize safety. As a supervisor or management person you represent the company and your concern for safety shows that the comPanY cares.

Solicit better ideas. Consistently ask employees if there is a better way to do a job.

Find out what the workers need to do a good job. Whatever the resource, make sure they get it.

Delegate responsibility. Whenever possible, delegate. To get a job done, delegate to an employee's strengths; to develop an employee, delegate to his or her weakness.

Enforce good housekeeping. Develop the right work-group attitude about the workplace.

Discipline effectively. The number one priority here is the need to manage discipline problems in private. Never discipline in anger!! Cool off -get your emotions under control. Ask why before laying down the law and listen attentively. State what you expect without mincing or reducing the force of your words. Last, but not least, gain the employee's commitment, if possible, and encourage the employee, if appropriate. The aim of the disciplinary process should be to change work performance, not offend the employee.

Discuss work assignments with employees to gain their insights and involvement.

Talk to employees at their level-not at a level above or below them. Allow for feedback.

Keep a daily "to do list" and prioritize items according to importance.

Practice fairness. Favoritism will break down team spirit and lead to considerable discord. Realize that you (as a supervisor or manager) are a daily subject in employee conversation and exert strong influence.

Follow up on work assigned; resolve any problems you may find. Employees need to know that someone notices if they do a good job and that noncompliance with instructions will be noted also, and will affect their Performance evaluation.

Act quickly on employee complaints. As one supervisor said, "Justice delayed is justice denied with consequences for productivity."

Set a good examPle in whatever You do. Be enthusiastic about your own job. A good leader motivates by example.

Get to know the emploYees and build self-reliance. Allow people to have some degree of responsibility for making decisions about how they will do their own jobg.

Say hello to each of your workers. Initiate greetings rather than wait for the other person.

Maintain a good personal and professional appearance-hair, dress, office organization, and so forth.

Present job instructions clearly and slowly. Issue written instructions and review the instructions with them if necessary,

Build a positive attitude toward you, the company and other emPloyees.

Hold an annual dinner where each person brings an item of food, and you pay for the main entree.

Mail greeting cards on holidays to your employees or present a small gift.

Don't sit in your office; get out and talk to the employees.

Encourage participation. You make the final decisions, but that doesn't mean you shouldn't welcome subordinates' suggestions and ideas and use them when they are good.

MFI Named to Growth List

Martin Forest Industries, wholesale brokers and distributors of redwood lumber, Healdsburg, Ca., have been named number 63 in the annual ranking of the fastest growing privatelyheld companies in the United States by Inc. Magazine.

In order to qualify for this distinguished honor, a company must be an independent, privately held corporation, proprietorship or partnership with sales of between $100,000 and $25 million in 1979 and have a five year operating sales history that includes an increase in 1983 sales. California took 86 of the nation's 500 rankings with Martin Forest Products placing llth in that state. According to George Gendron, editor-inchief of Inc. Maganne, "this year's 1nc. 500 had an average five year growth rate of nearly 100090." In comparison MFI had a five year sales gain of 2379s/0.

Gary Malfatti, vice president and working partner, represented MFI at a press conference and awards ceremony held at the Plaza Hotel in New York City on Nov. 30 He noted, "It is very gratifying to see the culmination of vour efforts honored in this man- ner. I'm very proud of our organization and hope we can keep the momentum going."

President Gordon Martin said "It is indeed an honor to be chosen for the Inc. 500. We have worked very hard these past five years. I'm very proud to have MFI rank alongside such prestigious firms."

Martin Forest Industries and Paulsel Lumber Co., Fort Worth, Tx., are the only two lumber companies on the list, according to an Inc. Magazine spokesman.

Martin Forest Industries was profiled in The Merchant Magazine in Dec. 1983, page 66.

Top Billing for Lumber

As of January, Terry Building Centers, headquartered in Tarzana, Ca., will change its name to Terry Lumber Co.

Terry Mullin, president, notes "At the time when the name "building Centers" was chosen, we felt that it best described our companies. We were, after all, what had become known in the trade as full service lum- beryards. Along with lumber, we offered hardware, building materials and a high degree of customer service. Through the years, since its inception in 1971, the name has served us well."

Today, however, he explained, "there are a growing number of consumer-oriented home centers, all advertising profusely for the consumer's dollar. Our companies are not home centers in the true sense of the word. We don't compete with them and we really should not be confused with them. It is our feeling that the name "building centers" may be confusing to the public and might tend to identify us as one of the home center groups,"

The stores will continue to carrY hardware, sash and doors and similar building materials, but the primary thrust will be, as always, lumber. Mullin feels that the term lumber in the name will more correctly identify the company.

All yards presently under the Terry Building Center banner will change to the new name, including Burbank Lumber Co. Tarzana Lumber Co., Inland Timber Co., Precision Milling Co. and The Blanchard Co. will retain their names.

Baxter Fights Condemnation

A.X. Baxter, chairman/c.e.o. of J.H. Baxter & Company, San Mateo, Ca., has issued the following statement outlining the company's determination to contest proposed condemnation by the Port of Long Beach of its 60-year-old wood treating plant in Long Beach, Ca.

"The Board of Harbor Commissioners of the Port of Long Beach, Ca., has passed a resolution of necessity which is the beginning of a procedure ultimately to condemn and take our property at Long Beach. We intend to use every legal remedy available to us to fight this action.

"Our objectives are: (l) To overturn the condemnation proposal and to continue to enjoy the use of our property to serve our customers. (2) If we cannot keep the property, we wish to remain in operation there as long as it is necessary to locate a site, get building permits to construct, and to build an alternate facility to keep us in business in our California markets.

"We will keep our customers and employees advised when there are developments in this case. Court and other procedures could drag out for quite a while.

"A condemnation is supposed to be for the public good. We seriously question whether it is in the public good to throw out an Americanowned business that has enjoyed the use of its private property in the Long Beach Harbor area for over 60 years in order to facilitate the import of Japanese automobiles. This is the use proposed by the port."

The Long Beach operation, founded by Baxter's grandfather, is located at l7l0 W. 8th St.

Hardware lmports Protested

The threat posed by increased import penetration of the United States hardware market has been addressed by the American Hardware Manufacturers Association board of directors with approval of the AHMA Thade Policy Position, a document recommending specific solutions to counter the causes responsible for the growing influx of foreign-produced hardline products.

William P. Farrell, executive director of AHMA, said "This document is a loud and clear signal that AHMA intends to participate actively in the formulation of this nation's trade policy. This Association will do everything it can to insure a fair and competitive marketplace. "

The trade policy position paper will serve as the focal point of the association's lobbying effort in Washington when the 99th Congress convenes in January. In listing the association's priorities, Farrell declared, "The Administration and Congress must act promptly to reduce the federal budget deficits. Deficits are a primary cause for the overvalued U.S. dollar which has placed many of our members' products at a disadvantage."

The document cites federal deficits and ineffective laws to counter unfair foreign competition as the primary reasons for the import surge. Regarding federal budget deficits, the document proposes a number of solutions including a temporary freeze on discretionary and nondiscretionary spending, line-item veto authority for the President, and a combination of tax increases and spending cuts. As for United States trade laws, AHMA has asked Congress to amend the existing statues to include "upstream subsidies" and "downstream dumping" in the list of illegal foreign trade practices. Under the proposal, the government would impose duties on imported finished products which are manufactured from subsidized materials.