etitive ligence Location, location, location

By Carla Waldemar

pied the owner's office since 1997, when his dad retired.

The changes he's made have been subtle. calling on his experiences at Boise Cascade as "a good foundation on which to run the company-learning and incorporating new ideas from the industry out west."

He's grown Northern Lumber's staff to 38, boasting folks with "five, 10, 25, 35 years' experience. They like to work here because it's a good, friendly atmosphere, plus everyone's responsible for their own departments and can make decisions on their own. The big change-the huge one-was our expansion four years ago."

That's when Ed decided to purchase 29 acres a mile south of Suttons Bay to consolidate both locations and banish the inconvenience of shuttling between the two sites. Using a year to plan the move wisely, the aggressive expansion and remerchandising was a product of the wisdom of each depatment head, responsible for adding new products and their display; the feedback of customers, and the expertise of PRO Hardware and wholesaler Bostwich-Braun, which drew up a store layout and conducted studies on potential growth in the town of 500, located l5 miles from Traverse City. "And they're coming true," Ed happily reports.

LTEVER underestimate the power I \ of a mile. Relocating that small distance made a mighty difference to Northern Lumber, allowing it to grow not only in badly needed floor space but in the vital realms of margins, sales and customer mix.

Northern Lumber & PRO Hardware began life 50 years ago in Suttons Bay, Mi., sandwiched between the shore of the Great Lake and the railroad line behind it. as Ed Beuerle recalls. When his father bought the company in 1970 and put his heart and soul behind the effort, business started to grow. He handled the boom by purchasing a 20,000-sq. ft. warehouse two blocks down the road to gain more space.

Ed grew up ricocheting between the two crowded sites. an inconvenience suffered by Northern Lumber's customers and staff alike. He then headed off to college and a job in San Diego, Ca., where he joined Boise Cascade's management training program for its [then] retail yards. Eight years later, by now a husband and a father, he heeded the call of his father: Time to come home.

"I'd gotten tired of seeing the sun every day," Ed says, offering a bit of chilly Michigan humor. "So, we decided to try it for five years. I've been here ever since." He has occu-

Along with doubling floor space from 3,000 sq. ft. to 7,500 ft., the new building boasts all-new fixtures and increased fixture height from 5 feet to 7 to give the store a bright, new look.

Now there's room for endcaps. used to Feature sales and specials. and for not only new merchandise, but whole new departments, such as Lawn & Garden and Rental Tools. "The rental program has proven very popular, "Ed says. "It's a great addition to our store and brings in additional customers as well as add-on sales."

At last, there's space for a showroom, too. Contractors are delighted to bring in their customers to view windows, doors and cabinets, and discuss these features in a designated conference room.

The paint department has tripled in space, allowing for an additional 525 SKUs, including five-gallon containers, "which gained us a lot of paint contractors, giving them things they couldn't get before," Ed says. It's also driven add-on sales. And, talk about experience: "The head of the department is a guy who was with a paint company for 20 years."

The increase in space and amenities has fueled a growth in walk-in trade as well, upping the mix to 357o without sacrificing the pro trade. Nowadays, both parties can find what they're looking for. And because the town is small, customers are greeted by name.

Sure, Northern Lumber is the only act in town, but frisky independents and burgeoning boxes loom just l5 miles down the road. To keep folks from trading elsewhere, Ed emphasizes experience, delivered by experts drawn from the building trades now in his employ. "Contractors like that, for sure, and so does the general public."

He knows the value of superior customer service, including the superfast delivery the pros demand ("which the boxes can't deliver, while we can turn on a dime") and quality that surpasses his rivals'. Outside salespeople visit jobsites and meet with customers "wherever, whenever," he says.

Northern Lumber also hosts an annual spring Contractors Show, fea- turing dinner and meetings directly with vendors.

Prices are competitive but not the lowest to be found. "People know they get what they pay for," Ed explains. "What good does it do to save a few bucks and have to return half a load of lumber?"

He's also fine-tuned his philosophy of providing the highest grades of lumber by expanding the "good" of his "good/better/best" lines to please those for whom economy is foremost.

His staff keeps up to date on new products via the Internet, where National Retail Hardware Association and others offer online training, as well as by perusing magazines and attending trade shows and seminars offered by the Michigan Lumber & Building Materials Association and sponsored visits to manufacturers.

Each year since the new store opened, sales have risen by lOTo to 20Va. "l'd hoped for five, so I'm very happy," Ed professes. "Margins also are up and continue to grow every year as we learn better ways of buying; we're becoming a lot smarter in what we buy and how we buy it."

The future looks equally bright. "There's growth here in new projects, condominiums, assisted living as people move here from Traverse City, looking for a less hectic lifestyle." Best yet: "I get up in the morning and enjoy coming to work every day."

- A Jbrmer award-winning LBM trade magaiine editor, Carla Waldemar writes frequently on the lumber and building material industry. Contact her at cwaldemar@mn.rr.com.

Rrrrrrrrs

Parr Lumber, Hillsboro, Or., will build a 25,600-sq. ft. retail and distribution building on nearly 6 acres in Ridgefield, Or.

Lanoga division Home Lumber Co. opened a7-acre lumberyard in Grand Junction, Co. (Bob Milner, gen. mgr.)...

Glenwood True Value. Glenwood Springs, Co., isclosing within the next few weeks after 20 years to allow for expansion of the local high school; owner Denny Swanson will continue operating his store in Steamboat Springs, Co....

Newman's Hardware, Amador, Ca., has been acquired by Wendy and Joey'Warren, remodeled, and reopened Dec. I as Warren & Sons Hardware ...

84 Lumber paid $2.25 million for 9.5 acres of rail-served property with a 65,000-sq. ft. building fomerly occupied by Ponderosa Mouldings in Redmond, Or.; is building a new store in Forest Grove, Or.; opened on 10 acres in Modesto, Ca.; added a l5-acre complex with a 35,000-sq. showroom, warehouses, office and truss plant in Post Falls, Id. (Josh Leigh, mgr.)...

Home Depot opened new stores Dec. I in Hermiston and Eugene, Or.: Nov. 11 on a former Kmart site in Sacramento,Ca; Oct. 27 in Tempe, Az., and Lincoln, Ca.

Send us your news!

Have a notice of your recent expansion, promotions or other company changes published tn the next issue of The Merchant Magazine.

Just Fax your news to 949-852-0231 or email to kdebats @ building-products.com.

(a frce seruice)

(Lauri Moore, store mgr.), Oct. 6in Lacey, Wa., Cottonwood, Az.

and and

Home Depot received board of supervisor approval to build a long-contested 107,000-sq. ft. store in San Francisco. Ca.: secured a 16-acre site for a second store in Pleasanton, Ca.; will build new stores on old Kmart sites in El Cajon and Chula Vista, Ca., and evacuated its Troutdale, Or., store Oct. 20 due to a small electrical fire ...

Lowe's Cos. opens new stores Dec. 16 in Happy Valley (Phoenix) and Ocotillo (Chandler), Az., and unveiled new locations Dec.2 in Apple Valley and Simi Valley, Ca., and Longmont, Co., and Oct. 28 in Glenwood Springs, Co.

Lowe's is opening new stores in 3rd quarter 2006 in Bozeman, Mt.; Casa Grande, Az., and Tulare, Ca., and filed preliminary development plans tobuild a 139,000-sq. ft. warehouse in Eugene, Or. ...

Ace Hardware is adding an 18,000-sq. ft. store in Modesto, Ca....

Menards will begin selling online in time for the holidays at www.menards.com

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Sunroc will rebuild its Lindon, Ut., truss plant, which was severely damaged in a Nov. 24 fire of undetermined origin

Railway Express, Mira Loma, Ca., has acquired 10 additional acres, another 50,000-sq. ft. warehouse, newly paved five-car rail spur #75 UP Zone 2, and lengthened its operating hours ...

Fremont Forest, Long Beach, Ca., is negotiating for an additional 50,000-sq. ft. warehouse at the 10th Avenue Terminal at the Port of San Diego, Ca.

R/W Mountain West moved to a larger 60,000-sq. ft. warehouse in West Jordan, Ut. (Tom Smith, sales mgr.)

Timber Products Co. comPleted equipment upgrades and moved plywood operations to a larger facility in Grants Pass, Or.

Whiteman Lumber, Cataldo, Id., has been certified to Forest Stewardship Council standards by Scientific Certification Systems

Western Forest Products, Vancouver, B.C., agreed to acquire Cascadia Forest Products Inc., including four remanufacturing facilities, four sawmills, and one leased sawmill

Universal Forest Products' new Universal Consumer Products division acquired DecKorators, Crestwood, Mo.; current management is expected to remain, led by Kelly Jones, now general mgr. of operations, and Doc Meston, operations mgr. UFPI is now exclusive U.S. distributor of eon plastic decking, railing, and fencing

International Forest Products Ltd., Yancouver, B.C., is negotiating to sell its Field sawmill in Courtenay, B.C. ...

Pope & Talbot, Inc.,Portland, Or., is shuttering its Midway, B.C., sawmill and consolidating operations at its recently modernized facility in Grand Forks, B.C. ...

Disdero Lumber Co., Clackamas, Or., is nowdistributing CorrectDeck and Correct Deck CX composite decking in Washington and Oregon ...

Housing starts in Oct. (latest figures) dropped 5.6Vo to a seasonally adjusted annual rate of 2.01 million single family starts slipped 3.7Vo to 1.704 million, while multi-family fell nearly I 5Vo

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Portland Wholesale Lumber Association - I)ec. 9. Christmas lunch. Portland, Or.; (503) 648-4156.

Los Angeles Hardwood Lumberman's Club - Dec. 10. holiday party. Balboa Bay Club & Resort. Nervport Bcach. Ca.: (949) 630-43-51.

International Wood Products Association - Dec. 13. busitress Iuncheon & nefivorking session. Hyatt Nervpoller. Ner.vport Beach. Ca.; (703) 820-6696.

Washington Hardwoods Commission - Dec. 14, mcctin-e, OfTicc of Hearirrgs. Olympia. Wa.r (360) 835-1700.

Western Hardwood Association - Dec. 15, board rneeting. Inn at the QLray. Vancouver. Wa.: (360) 835-1600.

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Arizona State Home Show - Jan, 6-8, Tucson Convention Center. Tucson. Az.: (U(X)) 690-1993.

Long Beach Home & Garden Show - Jan. 6-8, Long Beach Convention Ccnter. l-ong Beach. Ca.: (712) 336-0040.

Seattle Hoo-Hoo Club - Jan. ll, past presidcnt's crab feed. Waimea Brerving Co.. Kirkland, Wa.l (253) 196-1 155.

International Builders' Show - Jan. lI-14. sponsored by National Association of Homc Builders, Orange County Convention Center. Orlando. Fl.; (800) 368-5242.

Los Angeles Hardwood Lumberman's Club - Jan. 12, gcneral meeting, Steven's Steakhouse, City of Commerce. Ca.: (707) 462-3'700.

Yuma Home & Garden Show - Jan. 13-15, Yun'ra Civic & Convention Center. Yuma. Az.: (800) 690-1993.

DIY & Garden Show - Jan. 15-17, Earls Court 2. London. U.K.l 44 (O\ 20 8462 0'72t.

National Retail Federation - Jan. 15-18, annual convention & expo. Nov York. N.Y.: (800) 673-4692.

World of Concrete - Jan. 17-20, Las Vegas Convention Centcr. l-as Vegas. Nv.: (972) 536-6359.

Truck Loggers Association - Jan. 17-20, annual convention. Virncouver. B.C.: (604) 684-4291.

Lumber Association of California & Nevada - Jan. 18, open housc. Simpson Tirnbcr. Eureka. Ca.; (800) 266-4344.

Black Bart Hoo-Hoo Club - Jan. 18, industry night. Broiler Steak House. Redrvood Valley. Ca.l (10'/) 462-3700.

Humboldt Hoo-Hoo Club - Jan. 19, annual crab feed, Ingomar Club. Eureka. Ca.: (707) 445-3521

Western Pallet Association - Jan. 2l-23, annual meeting. Marriott Rancho Las Palmas Rcsort, Rancho Mirage. Ca.: (360) 335-0208.

Forest Products Society - Jan. 2l-24, China's Boom: Implications fbr Investment and Trade in Forest Products & Forestry. Vancouver, B.C.;(608) 23 I-1361.

True Vafue Corp. - Jan.23-25. rental rnarkct. Siinds Expo Center. Las Vegas, Nv.; (113) 695-5529.

Budma 2006 - Jan.24-27, international construction fair. Poznan, Poland; (3 I 7) 293-0406.

Do It Best Corp. - Jan.25-27, rvinter market. Kissirnmcc. Fl.: (260) 748-5300

California Industrial Woodworking Expo - Jan. 26-27, Los Angeles Fairplex. Pomona. Ca.: (828) 159-9894.

Home Remodeling & Decorating Shorv - Jan.27-29' Orange County Fairgrounds. Costa Mesa. Ca.l (818) 557-2950.

Guardian Building Products - Jan. 29-Feb. 1, show, Paris Las Vcgas Hotel & Casino. Las Vegas. Nv.; (864) 297-3498.

Surfaces - Jan. 3l-Feb. 3. Sands Expo & Convention Center. Las Vegas. Nv.: (972) -536-6364.