GCDI5SLIN.HARDING LUIUIBER GCD. Wholesale ltesf CoasI Foresf Producls re

of services. As a result. many are consistently under-valuing this item. Of the hundred of yards studjed by Wolf. fully one-quarter were losing money by not knowing how much it cost them to service a customer.

To know the true cost of any transaction, it is necessary to use a Differential Costing. This is a high-sounding phrase, but it means merely that it costs more to serve a buyer of a few items than a quantity buyer. It is not accurate enough to use the old-fashioned method of just setting retail, small contractor and wholesale classifications.

To make Differential Costing work for you, you must kuow: a. the laid-down wholesale cost b. the turnover of the item c. the cost of selling it

Every dealer carries thousands of items. But a small number of these account for the bulk sales. To get a quickly seen cost picture, each item should have a separate "weight" in the cost picture.

Obviously, rate of turnover and the price-level of the item affect the cost of handling that item. An item that moves but several times a year is more costly to stock and sell than is a rapidly moving item. All the costs are proportionately greater.

Likewise, some small transactions may take little time, others take more. If a $50 sale takes l5 minutes and a $5000 sale takes 2 hours, the cost of the $50 sale is greater per dollar. If you do not analyze your costs with this in mind, you may find yourself losing money in the most surprising places.

4-How does this help you set a retail price structure ?

ANSWER: You must average-out the total time devoted on over-the counter sales. Count the time necessary for selling and explanation; the cost of delivery and other incidental expenses; and advertising. These are general selling costs. Add to these the cost of your merchandise general overhead and a justified profit. You will surely find that some hard-to-service merchandise is being underpriced, which will rob you of your potential profit. You will also find that the other easy-to-handle merchandise may be over-priced, which leaves you open to competition.

5-How does this help you set a small contractor price structure ?

ANSWER: Once you know your selling costs plus costs of materials, you can price according to the total. You know your cost of serving this group should be less be- cause it should take you less selling time, yo,ur delivery costs should be lower, etc. Once you have figured just how much less, it is not difficult to set an accurate price structure for this class of business.

6-How does this help you set a wholesale price structure ?

ANSWER: Figure that no explanation time is needed for this classification. Bulk deliveries, fewer credit investi-

INcE 1947 we have continuously expanded our manufacturing, drying and shipping facilities in order to supply our customers with a complete line of Redwood products. Kiln-dried finish in bevel sidings, boards and dimension is our specialty, but industrial redwood in shop and factory select is also stressed. For yard use we offer all grades of common, and regularly ship mixed cars and truck and trailer loads of common with our KD finish.

We at ibmc are available at all times to discuss your requirements. I hope that you will give us the opportunity to serve you in the very near future.

Senilfor our 8 gnge,four colotbooklet. WRITE P.O. BOX 2065, TORRANCE, CALIFORNIA at the Torrance mill checks kiln-dried stocks using the latest equipment to insure absolute moisture control. Typical of key employees who have been with ibarc since its founding, Bert has more than 80 years of lumbering erperience behind him-