strom Lumber Co.

Whofesole Deparlment

SHerutood.2-3211 TWX: MSVL 241

P.O. BO)( 1310 purchasing is the first step toward a profitable sale.

In his discussion, Mr. Heard reported that many firms utilize the perpetual inventory but that the cost of maintaining such records accnrately should be considered against their value.

Knorv Your Costs \\'as the underlying theme of the pricing discussion given by Ci. D. Dart, K-Y Lurnber Company, Fresno, as he told tl-re group that varying lines of merchanclise bear different costs :rnd noted that the only u'ay to assign differential costs to products is through a .Lmpenta- tory pricing policy..-Markup._should be higher than the average percentage if its handling expenses or sales costs are relatively high, if seasonal rnarkdorvns should be anticipated, if the llrm p()ssesses exclusive clistributorship of the item, or. if it is a component part of a n ell-thougl-rt-out package. Additionally, Nlr. I)art illustrated the calculations of mark-ups, margins, cost ()f goods sold, etc. He ncited that a good pricing policy, one s'hich u'ill return handling costs plrrs a farir profrt, neerl not be a ltolicy of high prices if a variable pricing program is utilizccl. both rvith respect to merchanclise zLnd classes of trade.

Homer Hayu.ard of tl.re Homer T. I{ayu'ard I-umber Compan-y, Serlir.ras, the next industry speaker, \rerv cal)abl\.

Management Training Course Fietd Trip Schedute

Thursdoy, November 14, 1957

Whitcomb Hotel to Emeryville

Western Pine Supply Refreshments at Western Pine Supply Company

Emeryville to San Carlos

O'Neill Lumber Company

San Carlos to San Jose

Groups to Lumber Yards

Groups to Lumber Yards

Groups to Lumber Yards

Groups meet at Doud Lumber Company

Refresh,ments at Doud Lumber Company

Doud Lumber Company to Palo Alto

The IMA's president. Homilton Knott, of the Yosemite Lumber Co., spoke on odvertising ond public relotions reported to the members of the class the rralrre of Good -A.ccounting Practices and Ilecords as trtilized by manv mernbers of the industry. In addition, he <liscussecl in detail the mechanics o{ inst:rlling and maintaining snch rec()rds, including closirrg statements.

Rousing iwo-mon pcnel of Corl Trovis of Wilmo:'s (lefr) and Wendell Scott, Merner Lumber Co., covered o lot of ground on "Merchondising ond Services"

As a secon<l topic, Dealer Hayt'ard rliscrrssecl variorls \\.ir"ys o{ redtlcing ol)eratin{l' c()sts \\'hich he has learncd to be effective \vithin his orgar.rization an<l further explaineci the mechanics of the incentive l)r{ 'g'ranr currently in o1>eration irr his organization ancl n-hich he rrote<l undorrlrtedlv contrilrutes nluch to\vard increascii elrl)loIee Prodtrctir-itr;.

Pqrtner Fronk Heord of the Motroni-Heord lumber Co., qnd ihe vicepresident of the IMANC, gove the closs on exceflent lolk on "Purchosi ng "

N[ry11gy-x11d its.\r-ailalrilitv it sul)jcct u'hich has receivecl much cor-rsitlcratiotr ri-ithin the inrlrrstrv in recent rnonths, l'as ciiscussed lrv a \.etcran nrortglrge c(,nsrlltaltt. Il. H. N{illerick, assistant lice-Presirlent'of'the llank of .\merica. I)rrring his tall<. \{r. Ilillerick tol<1 the class of some of the :rlternate nrethods and sorlrces of hnancing available lrrrt l'as not overlv optimistic in his forecast for increased availability.i rnone'r-dtrring thc first half of 1958. Joe \\'asserburger ancl firhn Love of the FIIA discussed the mortgage irrsurarrce I)r()grant of the FHA as \\'ell as home renrodeling :rnd reno\-ation financing avail:rhle througl-r Title I.

It l.ras long been the beliei of tl'rose not acclnainted u'ith the inclustry that the only merchandising necessar\. for the indrrstrv n'as the placing of an article in lr hrm's inr.entorv tr> arvait its purchase bv a mvsteriously motivatecl consrlmer. I lou'er.er. quite a clitterent industry Xlerchandising program \\-:rs outlined br. \\Ienclell Scott of Nf erner Lnmber Co., Palo Alto, and Carl Tr:rr-is of \\'ilmar's, Sarr Jose, tu'o of the industrv's leading lnerchanclisers.

"Sfore Loyout ond Design" wos o noturol for Woyne Dohl, who is with Gorehime Corp. ond hos designed dozens of new retoil lumberyord showrooms in Norlhern Colifornio in the post few yeors

They emphasized that merchandising is the heart of a retailer's operation and that it includes all phases of a firm's dperations-from personnel recruitment and training to the actual purchase of the article by the consumer.

Thev discussecl \\'ith the class the importltnce and mechanics of good purchasing and Pricir.rg Policies, the use of "specizrls" to create demand {or the larger ticket items, the lleed for go<icl display, a good empl()vee-trlining pr()granl,

As observers of the industry are aware, many firms sEcoND pHoTo: Georse Berfrom sor himserr in buyins li,LtrilS],.1,t;lT:.S"..:-;:li,1ljr.lr'ro?ilf'il:Jj; mood on Doud yord tour, likes door ond invoice. beoutirur new showroom

TH|RD pHoro: Dqn Mcconn (rerr) ond Lorry Hodsson ::,::";rt""::1?'11",'i,;"f.';':."rrll.^li'; :",i.?::rl":fl:.,1,'";'J;.tt"'''s

GomPqre noles during Son Jose field rrip sloPover' group olso toured Progress Lumber yord FoURTH PHoro: Mox McCoy ond Armin Speckert look os have either recently remodeled their store or are shortly contemplating doing so. Many ideas on store layout were presented by Wayne Dahl of The Garehime Corporation. During his discussion, Mr. Dahl utilized several of the store lavout slides which are available to Association members.

FOURTH PHOTO: A. E. Honsen of Doud's ond Bill McKoig enroute bock ro The City ond the Whit- if rhey'fe siill rolking business during the "Coke-breok" of O'Neill's chol over their refreshmenis. comb ot Doud lumber Co.

Of very fireat value and interest to memlrers of the class \\'as thc fielcl trip to leacling industrv I)eninsula firnrs lvhere each h:rrl an ol)l)()rtllrrity tci observe in practice the ltractical

J)rinciples u'hich hacl l>een cliscussed by vlLrit,us instructurs ,lttring the t'lassr,)r,m sessi,ns.

The group first visited \\testerrr I'ine Supplr. Ciompany, En.reryville (l)hil lIcCol', host), and of Particlllar interest \\-ere the inr-entorr- stor.rge methods being utilize<l by the trrm.

Next on the itincrarv \\'as a lisit to the O'Neill l,umber Comp:rnv. Sarr Carlos, u'here Hrrst Dave Wight escorterl (C.ontinued on l'age 82)