San Francisco Lumbermen

San Francisco Hoo-Hoo Club t held an outstanding evening meeting at the Leopard Cafe on February 27, featuring a panel discussion on "The Function of the Wholesaler in Relation to the Bay Area Lumber Market." Panelists included club 9 prexy Charlie White, White l,umber Co., representing the retailer; Mike Coonan, Hobbs Wall Lumber Co., representing the wholesaler; Clif Smoot, Molalla Forest Products Co., representing the manufacturer; and

Jack Pfeiffer, a local management consultant and autl.ror of several articles dealing with the problems facing the lumber industry, articles we have had the pleasure of publishing in recent issues of CLM. Moderator of the panel session was Hugh Pessner, past president of club 9 and owner of West Coast Timber Products.

The problems facing today's lumber wholesaler are numerous, and for t'hat reason u'e reprint the following excellent program which was supplied to the nearly 50 wholesalers, retailers and trade association officials prisent at the meeting. l. Credit-assumes credit risk. l. More thorough knowledge of mill capabilities, products, and the manufacturers' rnarketing program. l. Extends credit to buyer.

A. What Is The Wholesaler's Service to Manufacturer?

2. }Jas marketing know-how for his sales territory. Specialist in distribution.

3. Because he handles sales for several suppliers, he can sell in his area at lower cos.t than if the manufacturer used a salaried salesman.

4. Allows smaller accounting force.

B. What Additional Services Do Manufacturers Want?

1. More sales promotion and merchandising effort.

2. More helpful "feed-back" of marketing information from the fie1d.

C. How Can Wholesalers Develop a Closer Relationship With Their Manufacturers' Marketing Efforts?

D. What Are Wholesaler's Services to Retailers?

2. He has know-how about lumber species, its grades, uses, characteristics, etc.

3. Knowledge of mill sources-their manufacturing capabilities, their quality status, their standards of service, etc. (What is available and where?) l. The sales promotion and merchandising techniques? l. Fewer small dealers and small manufacturers?

4. Wholesaler may anticipate retailers requirements.

5. Usually prompt delivery.

6. Usually guarantees quality.

7. Gives advise and assistance.

8. Retailers can concentrate buyirrg and thus receive better service.

E. What Improvements Do Retailers Want?

1. Better rnerchandising assistance?

2. Sales Training assistarrce?

F. Can Wholesalers Develop The Capability to Sell Specialty Products?

2. How cover their promotion costs?

3. Storage problem.

4. Sell manufacturer's by-products.

G. Why Are Wholesalers Bypassed?

2. Lack of service?

3. Desire by larger manufacturer for closer control over Droducts.

Lom-Loc Pecky Cedclr Eqrns lts Keep At Owens-Porks Lumber Co.

Ou'ens-Parks Lumber Company, Los Angeles, is an excellent example of what an aggressive building materials dealer can do rvith a good lumber specialty. lnstead of pushing the panic button and stocking a wide assortment of metal do-dads, Ou'ens-Parks has Jtuck to the lumber business and find they can still make a profit at it. One item that's paying its u'ay at Owens-Parks is Lam-Loc Pecky' Cedar, manufactured by Ed Fountain Lumber Company.

^ According to Sandy McDonald, General Manager, of Owens-Parks, "Fountain's Pecky Cedar is a naturalJor us. It doesn't compete or take away from any previous business, it just adds frosting to the cake. Since the product can be tr-qed inside or out, Lam-Loc Pecky Cedai gives us two chances to make a sale. It's rather unique in that respect."

_ Sandy also said that Fountain has made the selling easier through an aggressive promotion program that includes architectural and decorator coverage, trade shows, publicity in natignal magazines, backgrounds for TV shows-, a good advertising campaign and well thought-out point of purchase materials. "We have many people rvho show up with the four-color brochure in their hand. It depicts several inte.resting applications of the product and has some good selling copy, obviously."

Delivery is important to Owens-Parks, too. Since specified lengths and widths are stocked in depth at Fountaln, two days maximum delivery is the rule rather than the excep- tion. To be able to rely on immediate availability, certainiy eliminates the headaches usually encountered when selling a specialty product.

4. Desire for economy by manufacturer whether real or imagined.

5. Wish to supplement inadequate wholesale coverage.

6. Quantity purchases.

H. Should the Wholesaler's Functional Trade Discount Be nated in Favor of Other Methods of Compensation?

(Comments: Possibly 2-3% on straight loads of easily items; 7-8/o on slow moving, or "problem tory" items?)

Elimimoving inven-

The officers and directors of club 9 are to be complimented on their selection of talent for the panel and the tackling of the knotty problems facing every wholesaler today. We would also like to make reference to lack Pfeiffer's analvsis of the tug of war between the sawmill and wholesaler ("The Manufacturer versus The Wholesaler-and Vice Versa") which appeared in two parts in the December 1, 1961 and January l, 1962 issues of CLM. Now a partner in the firm of Strong, Wishart & Holt of San Francisco, Pfeiffer has not only shown keen insight into the problems facing today's wholesaler, but he has come up with several sound and possible solutions to these problems. After all, we all know what the problems are. What we want are the solutions !

"The lumber industry needs more products like Lam-Loc Pecky Cedar. With similar well organized marketing plans, lumber can regain its position of importance in the building industry. It's the only way to compete with the free-wheeling promotion of the other non-lumber products now being sold through building materials dealers."