A.L.lloo\YER. C(D.

direct working capital providecl you liave your own shon'room, equipment, etc. you can get into this on even much smaller a scale."

Answer (by Jim Williams/ "\Iinirnum costs this can be dorre in the nciglrtborhood of .$5,000 to ,$8,000 with the smaller staff. You move into it slowly, and your best display is the job yorr completed successfully and can take J'our ctlstomer to see."

Thursclay e\:ening a l)irectors' Cocktail Party rn'as held at the Riviera Hotel, follolved by dinner.

Friclay morning's session, off and running at 9:00 a.m., was again heavily attendecl. The discttssion, "Better Profits through Better Planning atrd Accountir.rg," was moclerate(l by Bob l-cisl.rn.ran. Crou'n City I-umber & Mill Co., rvitl'r participants : A. L. Childs, Lrrmber & Brrilders Supply Co.; Ray I{aley, Haley \Arholesale; Ralph Hill, Ou'ens-Park l,umber; Jol-rn Sullivan, \Vestern Lumber; Gil \\'ard, \\Iard & llarrington Lun.rber; artd John Ganahl, Ernest Garrahl l-ttmber Co. Again a brief run-do\\'n on the discttssions, and in this instance we'Il desert the cruestion-anrl-ansr'r'er rotltille as ttsecl in Thursrlay's reportirlg.

Speaking on tlte iuportance of planning, Al t-hilds offered: "yort must project your sales, budgct yorrr overheacl, determine your gross lrrolrt . . then, by research, determine a breakeven sales point for each departmcnt; then cost of investmcnt nrust bc added to each depart- ment e:rch deplrrtment r.nust earn 10/o on capital investment. Thus gross profit can bc clcternrinecl {or each department; f olloling this each departr.nent gets into the incentive area / af ter eirrning 70/o on invcstment) this corrld be on a 60/'10 basis, 60lo for cotnp:ur)', 10/o for enrployees." itay Haley, on another reason for data processing: "lVhat makes Johnnl' run? To sell, yoLl must lrave incentives-straight, simple and inrrrre diate irr nature if a salesmurn is paid cxclusively on gross profit of sale, this requircs tlult 1'ou cost your invoices; then, the next day thc s:rlesnran can go to thc recorcl an(l tell just hotv rnuch he made. Furthcr, through data proccssing, yotr can reducc yorrr inventory in somc (;rsc: lo 30/o. An elcctr',nic s].:lellt ntir\ c()st :rlmcist $15,000, hut the cost is birlancecl by the bcnelits.

John (ianahl on dat;r processitrg: "\\'e :trc currenlll' atttotlatitrg o11r proccsses a checking of the invoiccs prompted dcsire to issue clear, coherent invoices as business is changing, u'e wantccl to knolv a'ltcre u'e are selling . thrrs, the need for data processing. In addition, it h:ts becn the practice {or countcr pcople to check invoices betrveetr cllstomers u,hich nreant that the sales effort srrfferecl." He aclrnolvledged that, in most srtch insfances of change-over, there "probahly would be a monunrcntal fotrl-rr1r urrtil tlre s-\'stell) got ittto r,peration."

Ralph Hill : "\\,'e trierl automation but the cquiyrmetrt clidn't serve the original l)11rlx)se . the machincs are no\ti used for other purl)oses ur aulomattorr, I'orr lir,c anrl learn if 1'ou purchasc autom:Ltecl equipmcnt, get an iron-cl:rd agreentent that thc machines rvill do the job becausc of hercc conrpetition, evcr1, iirm has got to get into data processing.

John Sullivan: "It .$,ill take perh:rps a couple o{ 1'ears to make an clcctronic clat:L processin.q svstem rvorl< b1'usc of an IBM punch card s]'stem, w'e get the wholc story o[ our openrtion, at an]' tinre. D:rta [)roccssing rloesrr't savc l)er- sonnel, but it rloes give you invahral)le inform:rtitin."

Gil Ward: "\\j:rrd & Harrir.rgton lras becrr onc of tl.re firlt to install elcctronic comlruting eqrripment first rve wantcd sales anall'ses, for as a volunte operator, \\-e are on a small prolit n.rargin. As rr,e lrave three or forrr classilications of crrstonters, ne rvanted to knon- ultat rnarli-up coulrl appl1' to variorrs classcs lvc Itaven't Ict tried a llerpetual invcntor). systcrrl with our cqrriprncnt because of thc thor-rsands of itcms hekl in stock, and think this nriglrt be more cost ancl trouble than it is rvorth. --\ cost s1'stem tlrrorrgh data processing ntakcs nt:rnagers prolitconsciorrs, :lnd sirnilarll' salesmen."

Cosh ond Carry

"Horv to Creatc a Prohtable Cash and Carry Operation" wirs the next subject for discussion, moderated by IJob Sievers, Fisher Lrrn.rber Co. Panel members inch.rded ltuss Fritchey, Palm Avenlle I-umber' ]irank Crone, Terr1. Ltrrnber; \\'enclell Scott of Los Altos ; alrd Erl Stoner, -f r., Sarvtelle Lrrmber.

Ec1 Stoner slrowed a scries oi color slides of the Sarvtelle Lrrnrbcr opcration, and pointed orrt the valr:es of good disyrla-v, :rttractive packaging, and clear lrricing, as well as a large parking lot rvlrich is cssential.

Frank C'rone then prcsented a series of colorecl slicles of the 'ferry Lumber operatior.r, lvhich again dcnronstrated the merclrandising values inherent in attractivc, colorfrrl builclings and clisplays. IIe pointed rir.rt the "Bargain Shed"rvhich is stocked rl,'ith slrort items :rnd iten.rs not moving. The harrlu'ood panel display is set up so as to shorv do-it-1'ourself-ers "How to install then-r." On busy days, the Terry firm ruses a "trafllc director" to direct people to various stock arcas and cncourage them to wait on thenrselves.

Wendell Scott stated that no one in Soutl.rern California presentlv operates a "cash and carry" business as it is tlone in the Il:rst and Midwcst, where it is esscntialll' a discount operation, rvithout yards or trrrcl<s. An avcrage sale at one such ilIidwest operation, he said, was $60.00. "You can't ignore cash and carry," he conclrrded, "brrt 1.orr don't havc to fear it."

Russ lrritchel : "to try to take our firm out oi the lierccly cor-npctitive situation, $,e stress quality sometimes oLrr bids will be high, but because of the quality reputation of Pahr-r Avenuc Lumber we will gct thc bid.

Iirank Crone : "At Tcrry Lumber, \\.e carry' "orrt-oi-line" prorlucts to attract customers, ancl because thev enablc us 1o give ciur advertising a fresh slant.

Jld Stoner, rrrr atlvertising : "\\re den-oIe 7tl% of gross sales to arlvcrtising. We recontnren<l the "Yellow Pagcs" rve give the big bulk of our aclvertising to the nervspapers, llrt u'e keep it rvithin our tratle area."

Friday afternoon's sessioll centerecl, lirst, on "ll'he Econolnics of \rolnme versrls Consunrer Operations," mocleratecl by Ralph Ilaker, Barr l-umber

Co., with participarlts : Frode Kilstofe, Rossnrarr flill & Lumber: Donald X{cCoig, Tarzana Lunlber; I{uss Morgan, Ilorgan-l)aviclson I-urnber; Belton Love, Chandler Lumber; and Sarrdv XIcI)onald. O.rvelrs-Park I-umber.

Bricfl1', it scentcd to us tllal the opinions antl bclie[s exlrrcssed pretty much reflectetl thc kincl of brrsiness in rvhich the speaker was engagecl. It u-;Ls agree<l tlrat therc is no uniformitl,oi lrriciug irr thc industrv bccause of tlre various llpes of service, ctc., offcred by various yards, and becarrse of n.rarkct lLrctuations. It rvas also :rgreecl that volunre and consllmer opcrations c:ur go togetlrer-"but there are Jrroblems."

Frode Kilstofe said that thorrgh thel. did a largc volur.nc operation, thcy encouraged the tlrolr-in traclc.

(Continued, on Page 78)

Seaside's H & H Supply Has Cause For Celebration !

An awful lot of novelists have borrowed on Egyptian religion ("Out of the Ashes Springs the Phoenix") to describe the rebirth of cities and empires, and we just couldn't help but be reminded of the ancient myth during the three-day grand opening of H&H Supply in Seaside, November 30 through December 2.

On April 19th of this year, H&H Supply was reduced to ashes; but in this case the "Phoenix" is not the legendary and indestructible Egyptian bird that was consumed bv fire onlv to rise in youthful freshness irom its own ashes. The Phoenix here is Tom llandley's brand-spanking new store and warehouse which he built on the ashes of his old yard.

Young Handley is going all-out for the consumer business in the Monterey Peninsula area and just one look around his new operation rvill convince you that he's certainly got the artillery for the job ! Focal point of Handley's new operation is a brandnew combination showroom-warehouse building with a total enclosure of 22.120 sa. ft. Over one-third of this area, a ri,'alloping 8,210 sq. ft. to be exact, is showroom and office area.

The walls of the new store are Slumpstone block; the interior of the store is clear span, the roof supported by ffi' laminated beams (Standard Structures), and the roof decking is covered with accoustical plaster. The floor in the new store is vinyl asbestos tile throughout.

Construction of the new building began during mid-August with the erection of the 14,000 sq. ft. Butler warehouse, solid slab floor throughout. The store was then built right up against the new warehouse, a large opening in the approximate center connecting the two buildings. (Fire conscious Handley also points out that the back wall of the store also doubles as a fire wall.)

Although it rained practically throughout the three-day opening, careful advance planning drew nearly 10,000 local residents into the store in spite of uncooperative weather. Dealer Handley contributes the success of his opening in large part to professional advance advertising handled by Howard Ossermar.r of the oublic relations firm of Howard Holiday in Monterey.

Osserman directed attention to the opening in a campaign that reached near saturation during the final two weeks. Backbone of the campaign was a big 16-page insert run in the Monterey Peninsula Herald (circulation 25,000) on Wednesday, November 29. Glidden Paint added a unique touch by supplying 25,000 Treasure Chest keys to be attached to the insert. "See if Your Key will open our Treasure Chest -Win one of 300 Prizes," Glidden advertised. (The job of attaching a key to each insert was done by four schoolboys who, we would imagine, probably don't care if they ever see another key again !)

Although this undoubtedly sounds expensive, of the total $2,400 cost for the inserts, $1,800 was returned to

H&H by paid advertising from participating suppliers.

In addition to the big insert section, H&H Supply also ran "teaser ads" in the paper each day during the final two weeks. This campaign was backed up by 150 radio "spots" on each of the area's three stations during the last five days before the opening. Not advertised was an invitational cocktail party on the evening before the grand opening. X{ore than 200 local architects, builders, the Mayor and other civic personnel attended this event.

Vital statistics of the opening? Some 5,000 ballons and 10,000 Cokes given out, untold thousands of cups of coffee dispensed, and $2,000 in prizes won by lucky ticket holders. Drawings for the grand prizes were held during a live broadcast from 3 p.m. to 6 p.m. over station KIDD, originating right in the store. Professional entertainment was provided by The Classic Chords of San Jose.

Major grand prizes included a 12 cu. ft. Space Age Freezer (Hotpoint) ; paneling for an 8' x 24' wall in either cherry or walnut (Weyerhaeuser) ; Armstrong Cushiontone tile for a 10 x 12' ceiling (Butler-Johnson) ; Flexible Oak Flooring for a 10 x 10 floor (Georgia-Pacific) ; enough paint for a complete repaint job for a three bedroom house, inside or out (Glidden) ;a Lascolite lV x20'patio (Lasco Industries) ; and a Model "200" Food Center (NuTone).

The son of a veteran Monterey Pen(Continuecl, on Page 44) ' fhird row, left: Bill Armslrong mons lhe otlfoctive Celorex disploy. Middle: this pretty young miss spent ihe three-doy opening lrying to breok down the Vorothqne finish neor the slde entronce lo lhe slore (roller skoies didn't even scrotch the R"".). iight, t-op: this'is iust PART of rhe'new irore! Fixrures ore M&D, qll merchqn- dise is bin iogged ond individuolly price morked. Righi, bortom: delivery equipment includes two of these new four-wheel drive Internotionols, eoch equipped with GorWood scisscr beds which will lifr o loqd f4'ofi ihe ground; bed olio riirs'so loqds con be dropped wiihour domoge to stock. Enthusiostic obout ro"ings f.o- using these rigs, deoler Hondley plons to odd more ro his heer; he is olso instolling two-woy rodios on-his delivery rigs.

Top left ond right: "out of the oshes springs the Phoenix." In the first picture o clomshell removes debris following April 19 fire which destroyed the moior port of H&H Supply qf Seqside. Second shot shows the beoutiful new 8,000 squore foot shcwroom with 184'street frontoge.

Second- row, left: ql the grond opening, Jerry Fernondez srofis Georgio-Pocific's prefinished woll poneling boorh. Middle: the Glidden Treusure Chest wos o big otlroction; holding one of the 25,000 keys ofiixed to speciol l6-poge section inseited in M:nierey Peninsulo Herqld, this young lody hirs rhe iockpot. Righr: yei this is o lumberyord, roo! H&H olso hos oddirionol yord sloroge ocross the streef. Ploning mill (no custom work) blocks view of ie* ,ho*roo--*or"hour" Lu;lding. Altogether, H&H hos over 50,000 squore feet of undercover oreo on four ond one-holf o.ie yord.

Botlom row, left: new 20' x 100' truck bed heighr locding dock. Middle: new store is connected to this brqnd-new 14,000 squore foot Butler worehouse used for bock-up stock, cnd sloroge of plywood, dry sto-ck, doors, sosh qnd reloted items. Rightr hightighr of the finol doy wos o three-hour live broodcost from store over

Monierey rodio stoiion KIDD. Announcer Bob Funnell receives some of the winning rickers Jrown for hundreds of prizes from Jqnet Hondley, wife of H&H,s owner, Tom. Nomes of oll prize winners were onnounced over lhe oir.