Pricing Lurnber .t n, br the rrece J

By L, A, Beckstrom, Sr., Co-Outner, Arcad,ia ( Cali.fornia ) Lurnber Company

The subject of piece prices of lumber may not interest all of you because at present they apply only to the counter trade, the pick-up trade or the shoulder trade, whichever you wish to call it.

Most people who buy small quantities of lumber are not familiar with the computation of lumber contents nor the method of converting tlie price per thousand into the price per piece, but many buyers are interested in what a certain number of pieces of lumber will cost before they make a purchase, and it is quite understandable that the ordinary layman could be confused if he were quoted. a price of $130.00 per M BM for 2 pcs. lx4 12' Average No. 1 Common Douglas Fir; on the other hand, if he were told that 1 piece 1x4 12' would cost him 52 cents, he would not be startled by the mention of $130.00 per M but he would have a clear and definite amount to consider instead of an ambiguous price per M feet.

It is not a matter of trying to mislead the buyer by not mentioning the price per M, because we "ivould gladly do so except that in most cases the price per M is not readily understood and too often frightens a buyer to the extent of reducing his purchase. It really seems sort of silly to quote a buyer on a thousand feet when he is asking for a price on two or three pieces only, and it should be quite perplexing for a buyer to watch you going through the mechanics of figuring 1 pc. 1x8 1d at $130.0O per M and come up with an answer of $1.43. (ll' @ $130.)

(The folloaitag interesting, and often challen.gi,ng, talh zuas delivered by I/eteran Lwmber Dealer Bechstrom ot a conference of tl'te Southern California Retail Lumber Association. Other su,ch talhs, from conferences and elsezul'tere-or sim,ilar items on dealer problem.s and practices, will be featuretl frequently in the colwmns of The CALIFORNIA I-LIXIBEI? MERCHANT.)

There is also the element of error to consider rt'hen each counter sale is figured on the basis of price per N[ and you are too busy or don't take time to check extensions; horvever, in the case of piece prices, each item has been figured and checked in advance, u'hich eliminates many rnistakes and also saves much time.

This time-saving feature is very important and especially so on a busy Saturday mor,ning when the weekend ca,rpenters often wait in line for a few pieces of lumber.

Let's'take a typical counter sale and figure it by the old per M foot method and also by the piece price, and compare the time involved in both procedures u'ithout taking time to check the extensions in the per M foot method :

5 pieces 2x4 8 Average No. 1 Com DF S 4 S

4 pieces lx4 10 Const. Ht. Ited Rough

I piece 1x10 i4 C&B DF VG S 4 S Dry

1 piece 4x4 lO Ave. No. 1 Com DF S 4 S

2 pieces 2x8 8 Ave. No. 1 Com DF S 4 S

The answers should come within a few cents of each other but will vary because the per-piece prices are figured on the exact lumber contents, while the per M result will be figured on the nearest foot by adding or dropping the fraction more or less than one-half.

We have used piece prices on all Douglas Fir, Redwood and Pine lumber for about six months and, beyond a doubt, it has proven highly satisfactory; we are using these piece

Arcodio Lumber Co.Holds Demonsfrofion of WoodTope

The Arcadia (California) Lumber Company held a public demonstration of the versatile new plywood edging, WoodTape, in the store ofits recently remodeled yard on Saturday, January 1'1. Showing the yard's customers how-todo-it was George Rice of Southrvest Plywoocl Corp., Inglewood, Calif., ttsing samples and species of the outstanding nerv product from the firm's warehouse stocks, according to Jack Pollard, headman oi Southwest Plywood.

The Arcadia retail yard, operated by L. A. Beckstrom, Sr., is a modern merchandising operation and holds frequent classes and demonstrations for its customers (see accompanving photo).

WoodTape, as CALIFORNIA LUMBER MERCHANT readers knorv (see front cover ads of this issue and also November 15), requires no clamping or glueing and comes in six difierent rvood finishes up to two inches.

Pittoclc prices on all sales except house jobs, although rve find it necessary to use the per M price when pricing tickets where lineal quantities are involved or if the list includes a board measure quantity.

You may say that it is too much work to make up pieceprice lists, but unless the .ivholesale market makes a very substantial change it is not necessary to change these lists often, because rvhen you add a 50/. mark-up to your lumber costs, the ordinary fluctuations in the wholesale market rvill not materially affect your piece prices, and it certainly is not too much work to refigure these prices once or twice a year, especially when you consider that these infrequent price changes u'ill be more than offset by the saving of time and avoidance of loss through errors in extension.

I mentioned a 50o/o mark-up on counter sales, and if you are getting less than this mark-up, you are not getting enough for this type of busi,ness and you will soon learn why if you follow a few of these transactions through to completion; there are several factors to consider in adding your mark-up, such as tur,nover, etc., but the counter trade involves high direct costs on practically every transaction, and a 50o/o matk-up will only represent a fair return on the rvhole.

While on the subject of prices, it would be interesting to examine some selling prices on larger quantities, which have been quoted in the recent past and undoubtedly would 'show an utter'disregard of costs if grades, as cluoted, were delivered, but those who quote such outlandish prices also know that top grades cannot be furnished at a profit and the only out is to substitute inferior grades.

Personally, I can't see any value in maintaining a lumber dealers' association u'l.ren its members resort to devious practices in order to produce sales with only temporary benefits to the individual yard, when instead members should be doing all possible to promote more intelligent uses of lumber by educating the buying public with a better conception of prevailing grades.

I am not against using lower grades of lumber wherever they are suitable, particularly if it will help to keep the construction costs down.

We can help both the builders and the sawmills if we encourage the use of the lower grades, provided structural values are not, sacrificed.

This practice will be followed more and.more as timber becomes less plentiful and, through necessity, more thought will be given to the consumption of lower grades for more uses; however, the lower grades should be sold as such and should not be substituted for higher grades without the knowledge of the buyer; such a practice is an injustice to the buyer and a discredit to the industry.

I have strayed from the subject of piece prices, but socalled "salting of grades" affects both large and small yards and, while many yards are not resorting to these tactics, the wiCe spread in prices is difficult to explain at times, and after deliveries have been made, it is too late; on the other hand, the yards who follow this practice have no permanent advantage over a similar yard, although they can increase ' the percentage of lower grades until the saturation point is reached, and then what ?

I have no bone to pick with dealers who make low prices, because either they have an edge of some kind by which they can do business cheaper, or otherwise they will soon eliminate themselves through .continued losses, but I am concerned when competitors quote on a list of respectable grades of lumber but their prices indicate that they have no intention of furnishing the grades listed.

I would welcome remarks and questions from the floor.

PONDEROSA PINE . SUGAR PINE

DOUGLAS FIR . WHITE FIR

INCENSE EEDAR

Mouldings and lnterior Trim

Jambs . Frames . lncense Cedar

Venetian Blind Slats . Glued-up Panels

Cut Stock . Box'Shook

(lUR SPTCIATTY . IIIIIEI| CARS TO IHE IRADE

Kids Are Kings Agoin ot Another Wondedul Son Froncisco Hoo-Hoo Club 9 Christmcrs Porty

Over 220 members of the San Francisco Bay area lumber fraternity-including rvives, guests, secretaries and HooHoo-Ette msrnbsls-turned out for the annual San Francisco Hoo-Hoo Club 9 Christmas Party, held this season at the St. Francis 1-rotel. The big gathering, n'hich honored 51 boys and girls from the San Francisco Boys Club, r,vas pronounced a grand success by not only the lumber fraternity but, especially, by the honored guests from the Boys Club.

SANIA'S HETPER (Ed Dreesren) ond Ssnto himself (B9n Word) do lheir rtufr for one of the 5l kids or rhe 9 Club's 1955 Christmor porry (lefr). Ihe lumbermen who govc their lime for the porfy's success ore, left ro righr (kneeling) Fred Ziese, Jock Dollcr, leroy McCormick. Stonding l. to r.: Hcc Collins. Ed Dreessen, Jim Hqll, Jr.. Eill Bonnell. Dick McKonnoy, 8ob Nelron, Ben Word.

PIX ON OPPOSIIE PAGE show .(center) the Bonnell-WordKnopp gong oul in force: Morrie Greenlcw, Bill Bonnell ond Ben Word (before costume); lop right: Mrs. Scroh lundblqd, Arccto Redwood; Woh Boiloy, Wesl Coost Foresi Productr Co., snd his 3ecretoly, Mrs. Ello Curto. Orhcr pix show the hcppy kids (thonks fo Hoo-Hoo) ond enlerloinmenl they :taged.

(Phoros by Joct Dollor, the Robert Dollsr Co.)

Facilities for the grown-ups were excellent and included a private room for cocktails and renewing of old acquaintances prior to the children's party. But the kids were king that day, and every effort was made to make them feel right at home and enjoy their outing.

Prior to receiving their presents, the children were treated to a big Christmas dinner. San Francisco's own Ben lVard, dressed in the customary St. Nick outfit, then made his longau'aited appearance and passed out individually addressed

IUftIBER DIVISION

. DOUGTAS FIR

. PONDEROSA PINE

. WESTERN RED CEDAR

. CEDAR SHINGTES

. REDWOOD

. DOUGLAS FIR PTYWOOD

FrR-TEX DTVTSTON

FIR.TEX TIIE-PLANK-BOARD

O FIR-TEX ACOUSTICAT TItE

FIR.TEX HARDBOARD

. FIR-TEX ROOFDEK

. FIR.TEX SHEATHING

DOUGLAS FtR PTYWOOD

. COOS BAY HARDBOARD OVERTAY

SACRAMENTO OFFICE

HUGH CRABB

HUnler 2-O52O

PACIFItr

DANT tog ANGELES. CALIFORNIA

Oftices qnd Wqrehouses

SAN DIEGO OFFICE l57l Sourh 28rh Sr.

BElmont 3-7425

IUMBER, DIVISION

. DOUGI.AS FIR

. REDWOOD

WESTERN RED CEDAR

O PORT ORFORD CEDAR

O PONDEROSA PINE

.

CEDAR SHINGTES

O DOUGIAS FIR PTYWOOD

O COOS BAY HARDBOARD OVERTAY

FIR-TEX DIVISION

. FIR-TEX TI[E.PLANK-BOARD

O FIR-TEX ACOUSTICAT TItE

. FIR-TEX ROOFDEK

FIR.TEX SHEATHING

. DOUGI.AS FIR PTYWOOD

. CORATITE

. JAIOUSIES

O ROOFING

TEXTOLITE PLASIIC SURFACING

BY SHIP o RAIL o BARGE . TRUGK exo TRAILER

presents to each of the deserving kids.

Santa was easily the most popular guy in the room that day; however, a close second was Ffomer F. Snow, with his troupe of "Musical Marine Movie Stars," starring Sandi and Cindi Sea Lion, Perri Pelican and Penni Penguin. The show, which u'as hand-picked bv Ed Dreessen, was a grand slam with both the children and the adults.

In addition to Club 9 President Al Bell and the Christmas Party general chairman, llac Collins, the following ,men deserve a big vote of thanks for their hard work on the worthy annual project: '

Gift Committee: Jim Hall, J,r., Bovard Shibley, Bert Hasselberg, Jim Knox; Decorations: Bob Nelson, Bill Buettner and Mack Giles; Banquet: Fred Buckley and Paul Overend; Publicity: Jack Dollar, Bill McCubbin and "Sti" Stibich ; Tree Committee: Dick McKannay and Art Grey; Transportation: Fred Ziese and Lew Godard; Finance: Leroy McCormick and Charlie Schober; Tickets : Bill Bonnell, Johnny Prime and Bob Kilgore; Entertainment: Ed Dreessen and Harry Lowell.

New $2r/z-Billion Building Record for Southern Colifornio in 1955

Southern California rang up a new, all-time record building year in 1955 despite a year-end tapering-off due to the aggregate industries shutdown caused by the teamsters' strike and a slight pinch from the national credit restrictions. The nerv record figure is close to $2,500,000,000-a great new annual record.

Building permits in 75 southland cities totaled $1,338,276,135 (compared to $1,101,294,824 in 1954) and permits in the unincorporated areas of nine southland counties r,vas $667,935,676 (compared to $598,085,756 the preceding year). The building permit total is expected to come to about $2,150,000,000 and the heavy-construction contracts to an estimated $295,000,000, while school building, for r,vhich no permits are required, was estimated at $21 million-forming the grand total of $2,465,000,000, which may be revised upward.

The December 1955 permits lor 66 representative communities plus the nine county aieas, as reported by the Research department of the Security-First National Bank of Los Angeles, was $120,044,449-the southland's lowest monthly total since February 1954, down from November's $123,787,M6, and far below the $153,689,907 of December 1954.

The year 1955 ran strong from the start and ran up amazing totals from March to September, when a downward trend set in to continue the balance of the year. Even so, at the end of October permit valuation had passed.the previous entire year 7954 and pegged a new record in only 10 months because of the strong start. Nine of the 12 months last year set new records for their months, and Nfarch's $199,216,241 set a new high for any month in building history.

Los Angeles city, with a 12'-months total of $436,455,985, set a new annual record (previous high was $430,000,000 in 1953) ; its December 1955 figure was $32,212,870. Los Angeles county also chalked up its "greatest l2-months total : $365,585,655,.against $348,015,f32 in 1954. The county's December 1955 total was $20,800,665.