OPERANNG OPPORTUNITIES

WALLY LYNCH Paid Associates PO. Box 741623 Daffas, Tx.75243

fi ffneflNG data was collecred

V from I 85 dealers and chain outlet managers in a recent Northwestern Lumbermen's Association survey. Hardly enough replies for statistical validity, but certainly indicative of the opinions and thoughts of your functioning kindreds. Here's a bit about them and what they forecast for 1987.

Annual sales volume of 119 of the dealers was less than a million dollars annually. An additional 41 operators did more than this, but less than three million. The other 25 reported from three to over 50 million.

Financial planning received no comment from eight companies. Seventy four reportedly did financial planning each year, but 104 made no financial plan. For 1987 single yards anticipating increases averaged them at 8.10%.

Chain or branch store managers expected 5%o increases on an average. Single operators expecting losses averaged them at 11.680/o and the multi-units at 12.450/0.

Respondents were asked to evaluate growth potential for the next three years from a low of 0 to a high of 7. Store size expansion, yard remodeling and additional locations were heavily weighted toward the lowest potential in terms of contributing to future growth. Increased advertising, additional services, changing market focus, increased market focus and changing market were expected to contribute to growth. Fifty thought new and additional services were important to growth. Changing market focus got a combined 5l votes. There were 47 supporters of increased market focus and 45 believe changing market would contribute to potential growth during the balance of the 1980s.

A second area of the survey asked each respondent to list the first and sec- ond most important obstacles to development of an acceptable ROI in their company. Competition and economy led the list of obstacles with general generated expense and collection problems next. Lack of capital and unprofitable lines were virtually tied for third place.

A third area asked for the origin of greatest competition during the next three years. The three options were mass merchandisers, marketing by existing competition and new competitors. Mass merchandisers and marketing by existing competitors were leaders. New competition trailed at the bottom.

This information serves as a look into what others in the business, who may well have problems and opportunities exactly like yours, are thinking. For years the idea has been that the basic difference between the successful retailers and also-rans is in three areas: the ability to control expense, to implement cost effective change and to sustain offering of growth opportunity. Being reminded of these may help as you wrestle with the future.

If you would like our free Thrival (contraction ofthrive and survival) list of the top 20 areas doing the most profit damage during 1986, send us a stamped, self-addressed envelope.

Are You Absolutely Sure You Are Buying your Building Materials Right?

If you have ever asked yourself - Am I Cornpetitive? or Am I absolutely sure I buy my Building Materials and Hardwore right? Then you need C.B.S.-Central Builders Suiplies Company.

C.B.S. can take the guesswork out of buying. Since 1937, C.B.S. has been helping indepen- dent building material dealers remain competitive with mammoth corpor;tio; chiins. Because C.B.S. is a dealer owned non-profit corporation, all discounts, rebates, datings and advertising funds are all passed directly to the participating members.

C.B.S. Offers You

*C.B.S. has been nationally recognized as ,,The Place To Go To Buy Low"*

* As you buy more the cost to belong goes down-not up

* C.B.S. has an in-house Lumber Department

* C.B.S. has a General Building Materials Dept.

* C.B.S. has a program with the Blue Grass Tool Company

Central Builders Supplies Company

215 Broadus Street Sturgis, Michigan 49091

Phone: (616) 65 I - 1455

*C.B.S. was featured in the October 1984 edition of

These Advantages

* C.B.S. is dealer owned

* C.B.S. has a state-of-the-art internal communication system with participating members

* C.B.S. Rebates are paid to the members in cash

* C.B.S. has an in-house Building Specialties Dept.

* C.B.S. operates as a non-profit company

* C.B.S. members share in the cost to oDerate

Heodquarlers./0r rhe

Allied Building Centers