Northern California Convention Emphasizes Serious Problems Facing Industry

Members Discuss Chonges fo Come, Problems ond Sofulions fo Question, "Where Do We Go From Here?" - Bonker Sfqfes f hal Overall Consfruction WiIf fncrecrse But Housing Affected by High Cosfs - Elmer Rou Becomes New President

by MAX COOK

((rTrHE MERCHANDISER will live, but be prepared for I many changes to come in lumber retailing during the '60's," spoke Jack Pfeifier, of the San Francisco consulting firm of McKinsey & Company, to a big turnout of northern California dealers attending the final session of LMA's 21st Annual Convention wl-rich ran April 16-18. at the Ahwahnee Hotel in beautiful Yosemite Natlonal Paik.

Although most modern dealers are more than aware that the industry stands today on the brink of a period of radical change, Pfeiffer and the speakers who preceded him, brought out many answers to the perplexing problem of "where do we go from here ?"

The 21st Annual LMA Convention also saw the retirement of the Association's hard working president for the past two years, Frank Heard, Motroni-Heard Lumber Company, who leaves the association after serving as an outstanding leader through a period that saw the NRLDA Exposition come West to San Francisco for the first time, LMA acting as the regional host association. Heard is succeeded by Madera dealer and former vice-president, Elmer Rau, Madera Lumber & Hardware. Long active in association affairs, Rau will be assisted by incoming vicepresident Clair Hicks, president of Hicks Lumber Company, fnc., Salinas. Re-elected (and quite unanimously and enthusiastically) were the Association's treasurer, Ira llorton, South City Lumber & Supply, and executive vicepresident Jack Pomeroy, who was respollsible for the excellent convention program.

Although the business sessions opened on Mor-rday morn- ing, the convention officially got under way Sunday with the Annual LMA Golf Tournament at the Wawona Golf Course, Wendell Scott, Progress Lumber Company, officially directing the action in the golf department. With the LMA Perpetual Trophy at stake, Oakland wholesaler Brian Bonnington put on the steam to win not only the Perpetual Trophy, but the low gross trophy as well.

Frank Heard Opens Monday's Session t* gd*-i m

Frank Heard, presiding over the first business sessioll, officially opened the meeting, introducing the first panel in the Indian Room at 10:00 a.m. Speakers on the morning panel were: C. E. McCarthy, Vice-president, Real Estate Loan Development, Bank of America, San Francisco; Eric Beckstrom, Arcadia Lumber Company, Arcadia; and Allan Voorsanger and Ken Brown, Remington Rand Univac, San Francisco.

In the lead-off spot, McCarthy told the group of industry businessmen he felt that future residential building will rely more on consumer demand rather than the availability of mortgage funds-which McCarthy termed "plentiful" at this time. "Minimum shelter housing needs have been met," he said, "but granted, we would all like to see the quality of much of this housing improved."

Commenting that he definitely felt the recessioll was "flattening out" and the economy on the move once again, McCarthy was optimistic about the overall construction picture, noting that construction other than residential building is expected to hit 36 billion dollars for 1961, up 4 billion dollars over last year.

Centering his attention on the California picture, McCarthy noted that soaring land values have placed new homes out of reach for many people. "The biggest single factor affecting the home market in this state right now is the price of the house in relation to a person's income," he said.

On the plus side of the California picture, McCarthy noted that the population of California is being swelled by an estimated 300,000 persons each year-meaning the construction of 100,000 new housing units must be built each year to house these people. But at the same time, he pointed out, jobs must be created for these people, and in the face of increasing automation, this may well become a crisis affecting the housing industry in the State.

Out of California's present annual production of approximately 200,000 new homes, the Bank of America estimates that there are 7,500 unsold units in northern California18,500 units unsold in southern California, McCarthy told the group. However, neither this figure, nor the present foreclosure figures (only slightly .tp) cause any degree of alarm in financial quarters, he said.

Top row, from lefi; "fomily portroit" of the men who will skipper IMA through treqsurer; Elmer Rqu, presidenl; ond Cloir Hicks, vice-president. Middle: Woyne newly elecled direclors Steve Yoeger, Dick Cross qnd Armin Speckert.

Second row, from left: right in the mood of the luou were Permonente's Jock Jonsse, ihe Brion Bonninglons qnd Mrs. Jonsse. Nexf: winner of borh rhe low gross qnd low net trophies, Brion Bonninglon collecls his silverwore from golf choirmon Wendell Scolt. Next: Mrs. Tormey, Froncis Christionson qnd [MA's Clqire Zimmermon. Right: Weyerhoeuser's Ross Rqsmussen ond Woyne Inmqn of Sqn Luis Mill qnd Lumber,

Third row, from left: Lenore ond Hom Knott, "lslqnder" Bud Borber, Fronk ond Mrs. lsclq. Middle: still going strong, the Son Jooquin Hoo-Hoo Club's wood promotion proiect, the children's book cqlled "My Doddy ls A Lumbermon," received qn qssist from Jerry Kelley ond Bud Bqrber. Right: Mike Simpson ond his prefty missus wifh Jerry Derr ond his bride.

Fourih row, from left: Ken qnd Peggy O'Nell with Mr. ond Mrs. Clork Brofiord. Next: Frqnk Boxley of Brey-Wright Lumber Compony. Next: Mrs. Yoeger ond Mrs. Pollerson enioy o little squeeze from Bob Pqiterson. Righf: o hoppy bunch-Pof ond "Bo" Shipley, Mrs. Yoeger, the Bob Pottersons ond Jock Volker.

Corrcluding his outlook Lor 7961-62, McCarthy said that he felt: 1. Mortgage funds would continue to become more and more plentiful; 2. Residential building would continue to rely more on consumer demand; 3. Government would become more active in the picture (a feature the S.F. banker was not happy about, President Kennedy's Omnibus Housing bill in particular) and 4. Interest rates will quite probably decline somewhat during the year.

Eric Beckstrom, the second speaker on the morning panel, then took the rostrum, "How to Inspire Your Employees to Sell" his topic. Beckstrom, in charge of store sales and advertising for Arcadia Lumber, placed special emphasis on Advertising, Display, Proper Merchandise, Proper Pricing, and Credit and Collections.

On the subject of Advertising, Beckstrom urged dealers to strive to reach a larger audience with their advertising message, rather than to heavily concentrate their spreads to a small or local group of customers.

Placing special emphasis on keeping up a consistent campaign, Beckstrom also urged dealers to incorporate the "unique selling proposition" in their advertising messages.

Offer a specific product that you know is of interest to your audience, and above all, avoid "Vampire Claims" in your advertising (too many claims about a product will confuse the reader) and "Vampire Video" (a beautiful scantily clad gal wiil give your riader the "messags"-fs1 brother, that's not the "message" you're trying to get over, is it?)

Turning to merchandising and displEy, Beckstrom noted that merchandise moves best when attractively packaged and displayed in a manner in which it is meant to be ultimately used, at least where possible.

"Along with merchandising, train your salesmen to Listen to the customer," Beckstrom stressed. "\Ve estimate that 68/o of lost sales are due to indifference on the part of the salesman. So get out of the bidding class and give your customers personal selling. Sell from the heart rather than the mind. Train your men to Listen-and then be able to come up with the consumer-oriented information necessary to sell the product. Most important, make sure your men are able to help the customer make up his mind and close the deal. Far too many times a salesman will complete all the other steps faultlessly-only to lose the sale because he left the closing up to the customer," Beckstrom noted.

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