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what they do best - sell lumber and building materials to professional and contractor customers. HCI's cost of doing business study shows a trend in that direction. The percentage of lumberyard sales in lumber and building materials categories has been increasing in recent years. So has the proportion of sales to contractors and professional customers.

At the same time, profitability - net before tax profits and retum on invesfrlent - is showing improvemenl

The large chains are powerful competitors. But they do not dominate the hardware/home improvement industry as they do in other lines of trade. The top 25 chains (in sales volume) control less tlan one-third of the sales in this channel.

There is, and will continue to be, room for aggressive and well-managed small and mid-size companies.

Hb*,,f o i. CCil i - tr:ft ccf- |ff

I find out who your customers are,'where they come from:geogiaphically, what their Iifestyles are, what media:::f,eacfiesi.them,ir:iwhere eISe, thet sh-op, what their inmme,:,is;,.,what:i:pfodudts they,,:,want, and:::what servic€s they *Ould like. Wift an increasingly'diVerse market, an ability to target customers who are most likely to shop in a specific store, as well as past customers, is critical. '

2 guitO stroog,reriionships with customen using relatio4shit nafketing techniqueS-

3 ..Ensure access to your store is safe and easy. Create a c.o.g1f,Qrable.,, envifonment to: snOp:ir,in!: :,Pxwide a: rest

I ..,' , ,,, ,'

4t,,....ciiS.to .eiltbibinm;nl.,.is anotr,er,:key,,strategy, With sb::many shopping options, the customers are iilClinedr::rtCI,,,,$,o whefe.,r:thbt aie,.:most::,:,en:tettained, trmaginafion:iS: the only limiting factor heie. Specfal enentsi,, !ests::::ereAtive.::.d0dof, music, mo'r'9handising, fqqd anC,bever4ge,,demonsradons and lighting qp elententE,,,that,, r:cf.eatc::an:rrenteftaining,,,snopping environnenti :Sn ing.can be fun t t.l.partiiular anention to trow ioo i* buito vatue ,tr i;. ri:::Lgglt::for,:lpioductsr;that,,iqquiie,,,service, Makdi,t,sh0'pfingii eaSieil..ii.faStCi;,..rroie....Convenien t, an d moie...fiasslCtfre0 wi rrrinnovative:,,4pplicetions of seiVice1,.,1:me,:Cmfi asis.,bere::iS::,on innovation,,,,,, Some. retait-, $fs..equsuti..irh,,,'service,,withmore:sales help.and.

.6 ,........$[iisty..itne l;;;6elt....aama"e..foi inrotmation. about pioducts, pricing, location, availability and ser,iicd,llnfo. onCan..be...' p tred.'.b')a...rnediaadvertiS.: ing, personal communication or point-of.purchase matetials. : :, Signs. depicting feature, benefit :and price 6for-tn4i94 do thebest

7'i t oot at ne ,sociaf environrnent created by your :stor€,: :.Sbcid::inG tiOn,,,,is:,:'an impA..{tal!t:,,{ga!on people go,$hopping.

8,,' ge friendryr'16'qhildren. Parents buy more when ahil&Cn are with them

9' rne appgal oi:,the siore environment should be carefUUy:r:Bniineerefi ,,,.USiflg.: e,. f 'five.,',Sense'l apPrOaCt, : : The physi€al: en+ii6nmenr:,:of the:,: stoie is rhe only place a cUstomff, Can, ,be enticed, Ui::bUl; USing, I i5e[SeS::::::r$igb[:::,:::::]l sounG,.toridh;,,taste, and,Smell,,,,fhe,,,sho.p..p1gg::.:enVifonr:i:.:.:.:,l ment ::plgsents ;$reaf ,,pqtential r::fot dif.fefenti4!|fi! a Stgrg from,,,,the, competitlon, and,,,efgating th0,,l,cofipetitiVe:.r:::::: tt ldentify andimalce'a.l:ist of alt.those rhings,that: causqiiaggravati0n.ito,your.CiiSt0mer,s,..and..SE€..if,:thpy..g ,.,r:,..:,.. be eliminated at minimat cosror - if a significa4tcost is invorved:,,witt,tt.jo.qry,.n:nlgher,:TgHidi::::]l:.:.:lli:]]:|i: ,, ,., ,,, , t3 Peopte tite sometning un(ue and:,:different. Look ' for ways to customizb prodrrcts and make your customers feel specral :, , , ,,, ,,. ,, : ,, ',,

10,.,,..iioa.,wat;,of..i nilt5,ingl1* uiuie'.cus'tq rsr,as,,,,,,,,, weil'..as thosel.lwho codt tou.illlonelt....,,..I1'+e,.:tear.d., Sornc....... ,i retailers make the comnent, "They can'i Ste* enouCht, to mate a Oifference." I suspect those making tlir cofrl ment are a..!ong wat. fromi..the....fienOhesi...,..Theie:T.,noi .....l doubt that profitability can be enhanced,,with good information. The cballenge is obtaining me rigbt inbrmation and then makinC deciSions that enhatce good: will and at the sarne time reAuce losses.

12 piivate labet proUaUry prouioes ai-OW margin adnanu-9e,,,,;Estatlishin$,,the:rstor€rras the!:urq4dina.me can,: be a viable strategy. In tlis buye*i market; private label,is ::muct 'more: aVff i, :lable rffolllr:rnanufaCmre than it :::: was a decade ago.

14 Emerging products that are too new for,,,the mass merchant and must be sold Uy skiUed,,satespgptte can

,t5 traOe.'agreementb anUl,:mr r.uftti*io$::::$owm,,,.in,... other countries are presenting new buyin g'opportunities, Imtbits:.:Can be used to,:radd Value,,,alnd,:p.iovide,,,1iuiqUe,: produdts, Fglqgq:sourciUg,iS,,wi rin ieaCh,,,of,almost aII,

'16 piopie Uke tb gUt.,aiUargain -C ttri ffte..fo...bmi. ...l about,it;,,, A *orld withoUt,SAles iS not.iq,,the,,nffi futufei:,: ,:,:,: and it really doesn't iCpresCnt a reasohable gbal; Markdowns and sales are a necesury and:desirable part of ,ani merChandiSing:iiiplan; ,,,.thej im ve,,1urnoverr create exCilement, atu?p'ti:new custofia:s,,and' add .rtoir:CUs'i,::,,,,, tomeisatisfaction,

:6ary A,.,,lVright, ptisideii;:GA.W7igtq,,hn, lnf LUED laminated beams have \fprovided good margins for retailers since they were introduced as the fint engineered lumber products over 40 years ago. Now, a new generation of retailers is generating big-ticket, profitable sales volume in larlinated headers, ridge beams and floor beams.

Although laminated veneer lumber (LVL) and l-joists have received a lot of recognition, structural glued laminated timber (glulam) still fills an important niche where longer spans and extra srength are needed.

Glued laminated timbers are often