Computer buying show comes to you

I T'S the trade show of the future. I Forget registration, airfare, hotels and time away from the office. Dealers review vendor specials and place orders without ever having to leave their offices. Vendors pay a fee to show offtheir wares by staying home and avoid the costs of booth space and running a three day dis-

Story at a Glance

Computers bring buying co-op's trade show to terminals in memberc'offices show sales rise 450/o ... electronic show to permanently replace fall expo, although spring show retains traditional format.

play. The over-the-computer products show has arrived.

The first annual electronic exhibition was held in September by Central Builders Supplies Co., a fast growing hardware buying cooperative. A-Line, the communication system over which the 48-hour show was carried, has been a big reason for CBS's recent expansion. Two years ago, CBS had a sales volume of $12 million done through 400 stores. Sales for 1986 through well over 500 members are projected at$226 million with $325 million predicted for next year.

Two years ago CBS adopted A-Line, named after Allied Building Centers (ABC), the chain name for CBS members. The system, employing the 3M Whisper Writer and Western Union's Easylink service, affords nearly instant distribution of messages.

"Basically, we can send out a message and in 20 minutes all our dealers will have itl' says Phil Pobanz, general manager and treasurer. "We can run sales, promotions, deliver information on the market. And dealers can communicate back to us, to other dealers, or within their own companies in the same wayl'

The next step was a buying show over A-Line. It worked. More members ordered, more vendors participated and a higher dollar volume was generated than at any previous CBS show Compared to last fall's show,55% more of the membership attended and orders placed totaled 45% more. And many members placed "new orders" with vendors they had never done business with before. Attendance and sales grew while the show was staged at a much lower cost to everyone -

CBS saved about 80% ofits regular show costs.

CBS says the electronic show will permanently replace its fall exhibition, although its second yearly show will remain as is. "We will have a physical spring show in February when you will be able to see, feel and touch new 1987 offerings. New products are generally introduced at the new year which is common in the industry. Although we believe the spring show is absolutely necessary, it will be interesting to comparel'

But CBS is so confident in its A-Line, that by the first of the year each member will be required to connect to the service. Currently 75Vo have the equipment, up from25% earlier this year.

While the system was originallY installed for ordering and sending out messages, newsletters, market reports and special sales, CBS is always searching for new applications, such as the show. The company has now transferred its entire listing of products onto the line. "We have a computerized catalog I ' says Pobanz "There's no big paper volume, nothing to file, nothing to keep up. Our catalog is updated every morning. Even the microfiche is obsoletel'

These and other technological breakthroughs, such as a new system for authorizing credit card transactions within seconds, are helping ttre innovative group grow and remain strong alongside mammoth-sized dealer-owned cooperatives like Cotter & Co.'s True Value Hardware Stores (over 6O00 members) and Ace Hardware (4,500+).

But CBS is a little different. "Unlike others who tell you they are dealerowned, we are truly dealer-ownedl' says Pobanz. "Here, everyone has one share of stock each. I know, for example, that there is a buying service in the South in which at least three men have more stock than everyone else. They have a more vested interest than the others.that the company do welll'

CBS offers full service lumber. building materials and building specialties departments, featuring most every brand name. Everything is shipped straight from the manufacturer to the dealer, without a middleman.

To join, a store must be independently owned, have a history of discounting its invoices and being able to pay its bills, and have a desire to buy as low as possible. CBS gets its prices down by running as a non-profit organization with operating costs of Vz of l% of sales. Any leftover "earnings" are returned quar- terly to dealers as rebates in cash, not as credit or paper stock.

CBS has placed all is faith in succeeding as the computerized co-op. "The marketplace has changedl' explains Pobanz. "It's more competitive. To be more competitive, we changed. You have to change, you have to progress. No one is driving Model T's anymorel'

Enthusiasm Lacking

(Continued from page 37) adjust and capitalize on a competitive market the upcoming year will be a good one. We are in the midst of an opportunistic, growth industry and not part of the lethargic and directionless economy that shows the many characteristics of recession without really being one.

More and more we have to remind ourselves of our manage- ment mission which is to achieve results in line with ambitious goals. The establishment of a goal in line with a slight increase over 1986. and at worst l0o/o below 1986. should be the target we are aiming for.

Remodeling

(Corttinued Jntm page 3 7)

R&R market is expected to increase nearly l0o/o in 1987, mainly due to the healthy existing home sales market. Close to 1.1 billion feet of wallboard is expected to be consumed in the residential repair market next year.

Sales of vinyl siding in the resi- dential residing market should exceed 6.5 million squares next year. Shipments have been increasing almost l0o/o each year as the usage grows to virtually all regions of the country.

In the last two years, the Northeast's share of remodeling expen- ditures has increased, while the South's share declined. It is too early to tell if this trend will continue into 1987. Even with these changes, the South remains the number one remodeling market, followed by the Northeast, North Central and West, respectively.

W.O.O.D. Awards Architects

W.O.O.D., Inc.. Denver. Co.. honored six firms recently at its 20th annual architectural awards program.

Each year since 1967, the forest products promotional organization has awarded Colorado designers for outstanding use of wood in projects during the previous year.

This year's Oct. 24 competition attracted a record 5l entries, resulting in l4 finalist firms.

The Merchant Magazlne

The winners included a tie between David Weesner Associates and Witter Architects for residential/single-family, and Fuller, Fuller & Associates for residential/ multi-family.

Other awards were presented for commercial, interior design and remodeling/restoration categories.

Mountain States Buying Show

The Mountain States Lumber and Building Material Dealers Association will sponsor a building materials buying show, Thursday and Friday, March 12 and 13, at the Denver Merchandise Mart, Denver, Co., 2 to 9 p.m.

Building material and hardware dealers from the Mountain States Region are expected to attend to buy for their late spring and summer needs. They will be offered a complete display of lumber, panel products, doors, windows, millwork, hardware, paint, tools, insulation, fasteners, fencing, roofing, siding and specialty building materials.

"LOOKINGAROUND"says Paul Bunyan

Paul does no_t rest on his fame as the lumberman's symbol of accomplishment. New requirements and changing conditions keep him aleft to progress.