tudlow 2-5311

added. One of the reasons is to give the customer better service. Another is to add items which have a larger margin of profit."

Tarte then pointed out the low returns the average yard obtains on its investment and urged that operatois alert themselves to new opportunities that can increase turn-over and profits. He cited home construction as one field of oper- ation that offers excellent possibilities and wl-rich his own organization has successfully followed-where the yard undertakes to render to its customers a complete service from the initial planning right through completion of the finished strrlcture. In this way, the yard maintains control of specifications and all materials recuired.

"We sit down with the cultomer and talk to l-rim about his building plans, how much of a house he is going to need, if he owns his .lot, how much money he has to pay down and how much he can afford to pay a month. If he owns his lot, we have to find out where it is, if it is in an improved area where FHA will take the financing. Then we discuss the type of house he would like to have-.

"Many customers have their own ideas and we find that costs.would run 25c/o to 50/o more than they can afford. So we diplomatically start tearing them down io their income, the money they have on hand, the size of the lot, the location and neighborhood, so, in case they have to sell, the house will have a fair resale value.

"Then, after we have adjusted things to fill their needs and budget, we take them to the Drafting department to draw up a preliminary plan. Then we ask ihe man ancl his wife to come into our office-or we go out to their homechat with them and make any final changes that might be qracle and work out a final drawing, plus sfecification-sheets and everything to pass FHA spe-ifications.

"Then we ask if they have i preference in contractors. If they do, we ask him to bid on the iob and then invite two or three other contractors. We shouid have at least four to give competitive figures so the customer is satisfied he is getting a good house at a fair price.

"During the time the Drafting department is drawing up plans, the interior decorator is woiking with the wife on color schemes, floor coverlngs, counter tops, etc., so all this can be worked into the specifications. Th6 plans are all finished and everything is set. The contractors have turned in their figures and the home owner picks the low bidder. Then we take their down-payment and place a first mortgage on their property as we are going into interim financ- ing in order to control the sale and so we are sure that all bills are going to be paid and we are going to get our morley.

"Before we go on tl-ris interim financing, we get a definite commitment from a lending institution that it rvill take over this mortgage when the job is complete. When the contract is awarded, u.e sit down with both the contractor ancl the home owner and explain to tl.rem that the house is going to be built according to these plans ancl specifica-