Standard, Lumber Compan), fnr.

Sugar Ncense Pine Cedar

P.O. Box 717-1144 Mines Ave. Montebello, Colifornio 90641

2t3-6854041

TWX 2t 3-722-6714

Survey Studies Solesmen

A studl of tht, tonstruction and lnrilding material/firture industry br- the Salt's Manpon el Foundation. rer.eals that huildingmaterial manufat.lrrrers will spentl more than $122-milliorr this lear. to lo<.ale and lrain neu sale:mlrr. ,.r,,ll,,.ir r ,,f tht,ir .ala ries.

"Fer,,, {irms firt, a sales managel. l.ho is making a krt of money for them." Hank .{st*-ood of t}rt' [oundation sai<1.

''But irr todar-'s t'ompetitivt, markets he (trn stol) lrt'irrg profitalrle if he fails to gauge his '(,ost of Selling' ar.t'uratt,lt,." Astn'ood emphasized.

'fhe avt'rage or,erall cost of sellirrg $1 l'ortl-r o{ lruilding materials is tt'rr <'ent-s. at'cording to tht' -surve\-. 'l'his inr'ludes salesmen's r.ompen-.ation. ('\J)ells('s. sales malrag('rnenI r,osts. adr,ertising. merchandising and promotion expens('s. <.ost of serr'r('rng" ('I('. (iompanics respondine inclic.ate their selling (osls range from a low oI two p(,rct'nt to as much as 25 percent o[ etrch rlollar oI sales.

Sales managt'rs t.lassif l tht'ir -.alt,smerr irrlo thrt't, main groups: top. aleragt, anrl rnargirral. Thev say that onlr..30 yrt,n.t,rrt .lr'(' [()[) sales pro<lut't'rs. lrut that thet, lrrine in l-1.5 l)er( ('nt of the total annual salt's r-olumt'.

Tht' avt'rage -.ales Irr,rrlrrcers makt. up ;5I.2 pt'rt'ent of the sak's lorce and procluce '1.4..7 perct,nt of tht' anrrrral rolume or' $ 116.,183 per man.

'l'lre lrottom ler t'1. rt'presenting lB.ii lrcrlt'nt of the men. sell onlv 10.8 pcrct'rrt oI thc rolume. Orrlr' 21.3 per<'ent o[ thenr art tra int'es.

Storoge Tonks

Wineries plefer ledu'ood for storage tanks because of the unique physical properties of this native California u'ood.

Representing in Southern Colifornio:

How Dealers and Builders Can Work for Mutual Profit

When the heads of two national associations in the building indpstry-representing the nation's builders and the nation's building material dealers-met recently, it didn't take them long to get down to brass tacks on how their members could develop a closer relationship, what services dealers should be providing their builder-customers, and how both groups could work together to get more consumer dollars.

T. T. Sneddon of the National Lumber and Building Material Dealers Association, invited the National Association of Home Builders' Bernard L. Boutin, to be interviewed by him. Boutin readily accepted and agreed to be entirely frank in his comments.

First question posed to Boutin by Sneddon was "What are some of the ways in which our dealer-members can better serve their builder-customers?"

Boutin said that the dealer can best serve the builder through service. "Service can take many forms, such as promptness in deliveries." He pointed out that builders are operating today on very tight construetion schedules for economy reasons' so proper delivery of materials is extremely important to eliminate rehandling. 'oDeal' ers should maintain adequate stock also in order to eliminate back-ordering o{ items," Boutin stated.

Sneddon asked if there was an increasing demand for components by builders. Boutin responded that a recent NAHB study indicated there has been very little change in the use of components in the last five years, although "it is true many progressive builders are making greater and better use of components." He believed progress had been hindered in the use o{ components by the building industry due to a "lack of proof of the economy by the component prefabricator." The use of components, he remarked, "results in indirect savings that cannot be realized in the price of materials and products alone."

Fabrication of components at the building site--traditionally done by the builder -might benefit dealers, said Boutin. ',Serious investigation should be given to the idea of the lumber dealer fabricating components for large volume builders aI their building sites. It seems to me that econo. mies through simplified materials handling could be realized."

Dealers can assist builders, according to Boutin, by joining in the efforts of lical home builder associations to work toward realistic building codes, zoning ordinances and subdivision regulations. He said local home builder associations are not able to fight the battle alone and all those who have an interest in home buildine should ioin in the effort.

DEATER AS CATAI.YST

Sneddon asked Boutin's comment on the dealerls role in planning, on a cooperative basis with builders, new subdivisions and communities. o'The lumber dealer could perform a function as a catalyst in organiz. ing such an effort. In many instances in smaller communities lumber dealers have