!rupoa,tetza.

ccrrcd. not just li1-t sctr-ice . \orrc oi thc t1-rrec [:tctors itl our clistlilrr.ttion sr-stcnr c:tt.t consitlcr thert-rsc1r'cs lLs sclraratc uncl tlistinct crrtitics each in his ou-tt n'lrtct'tight cotnl)artlneilt. 'fhcir relati()lls lllu:,t ll()t sll\'U1- ()i ht.rrsc-trarlilrg. Orr the contrat--r'. thosc rellLtions ttrttst gcnttirtclr- hltr-c rnulual conlldct'tcc, so thltt cvcr-r- zLtlvlttttlrgc :Lccntirlg tct tl-rc mlrru[actt',rer rr'ho tlistri]rutes his gootls throtrgh tl-rc tr'holcsale <listrilrut()r t() the rctlril <lcitlcr c:Ltr lre:Lchicvctl lrt 1hc Iol cst possilrlc co:rt tt.r lroth.

Irr rliscussine tlris or crrrll sr.rlrject lr ith trtltttv oi the rtirtional nranrrfuctltrcrs, it is alrlrlrrcrlt tltlLt thc tllarrttilLcttlrer is poing to'l.ttovc his protltrt:t itt thc most ecotl<itlrical nrcthod possilrlc to the ultitnlrtc co1rst1lrter, lLrrcl it lre hrtolcs lroth the n'holesulc clistrilrr,rtor :rncl thc rctail <1ea1e r to mcct thi:r cver-increasin g challenge.

Sonrc recent statistics lrrought t() ()tlr attctltiot'l in<licatc the retlril clealcr's sl'rrLre of thc brrilrling <1o11:rr rleclinerl ir, rnr 26.21'r it 1950 to 19.S'y' tn i().5.5. 'l'hc article st:ttet1 thlLt this rlccline curr bc largcl,r' attrilrutecl to thc lttlltttliitctllrcr'l;r-p;rssing the rctrtil dctLler, irr<licating that lLs nrLrch as .50f i of the <lcrLler volLtme has g,rtre through other sottrces tluring the prLst six ,\-ears.

The wholesaler and the dealer must face up to this growing trend and, if the forecasts for housing starts in the future are anywhere near correct, you v,till see this trend grow unless the w.holesaler and the dealer can prove to the manufacturer the necessity of their services.

For efhcictrt <listributi<)n, \\.e lrelievc each segmer.rt of thc inclustr_r- r'nust be honest u'ith thc othcr. The manuiactttrer most important, the wholesale distributor must have con-

*various operating cost statistics of the vbrious dealer asgociations. The retail dealer is feeling it the same as the wholesale distributor. We have in today's market the commission man, the quasi-wholesaler, the direct shipper, and several other "wholesaler types"-all scrambling along the line to get the order. Dishonesty must be avoided above all things at all levels.

_It is our sincere belief that the manufacturer must dis.tinguish between the wholesale distributor and the retail dealer "regardless of size" on the basis of the function performed in the distribution process, and not merely on the basis of quantity of goods purchased. lIe can establish this principal, of course, by maintaining a commensurate difference in his prices to the smallest wholesaler and the largest retailer, because no retailer, no matter how large he may be, ever performs the function that the wholesale dis- tributor performs. The laborer is worthy of his hire-the wholesale distributor must be compensated. Too many manufacturers have made no distinction between the whc,lesaler and the retail dealer on the basis of the function per- formed-but have set their price schedule solely on a ba- sis of quantity purchased.

Our members also feel that, for efficient distribution, the wholesale distributor should be compensated by the manufacturer on direct-factory shipments to the dealer, as well aS shipments into his warehouse. Warehousing, sales assistance, credit responsibility, and the various services

He Gon Soy IHAT Agoinl

The California Lumber Merchant

Los Angeles 14, California

51 years saying so.

Yours is the best for the selling knotholes lumberman, I s&rould know; gives me good reason for

-H. F. Lange, President and Manager

Lemon Grove Lumber Co.

Lemon Grove, California that the wholesaler performs require this compensation in, order to help defray the wholesale distributor's overhead so that he can sell from the warehouse at prices the dealer can afford to pay. An efficient system of distribution must provide equality of competitive opportunity for the smallest country dealer, as well as the largest retailer alike.

Our Association has recommended to our members that they furnish each of their retail dealers a written copy of their merchandising policy and, in turn, we believe that our .members have'a right to expect from their suppliers a similar statement covering their method of distributionof course, such a statement is not worth the paper it is written on if the manufacturer and the wholesale distributor are not honest in living up to their stated policy. We feel that such statements from the two segments of the industry would greatly alleviate the by-passing which is now rampant in-many of the basic commodity items handled by the retail dealer. This is something that the retail dealer can do something about right now! Why does the retail dealer continue to buy, because of a lower price, from suppliers who the dealer knows very well are selling his customers ?

There was never so much thought and effort being applied to this subject of distribution as there is today. One of the most challenging jobs of our Association is to focus our industry's attention on profitable volume rather than volume at any cost. If each segment of our industry would conscientiously seek ways in which we could all work harmoniously together, and at a profit, we can build an even greater and more serviceable distributive system-a system in which the team-the manufacturer, the wholesale distributor, and the retail dealer-can profitably enjoy participation in this nation's greatest industry.

To summarize the foregoing: l. The wholesale distributor must be compensated for the services he performs.

2. There must be complete honesty between the manufacturer-the wholesale distributor-and the retail dealer.

3. We should stress the importance of written statements of the merchandising policies of both the manufacturer and the wholesale distributor and see to it that they are rigidly adhered to.

4. The retail dealer should avoid purchasing from suppliers who are selling their customers. There's no profit in today's market that does not have competition.

5. Let us strive for profitable volume rather than volume at any price.

More than 220/6 of. Saturdays.

Hordwood Ccrlled Brighr Spor in clouded Building Scene

The hardwood industry is at present the envy of other segments of the iumber industry, E. V. French, vice-president of the Atlantic Lumber Co. and NHLA director, told the hardwood men gathered at the Canadian Lumbermen's Association recent convention in Montreal. Although home building has tapered off, the market is still tremendous by pre-war standards, he observed.

"IIome building in the U.S. has declined from a high of about 1,400,000 homes built in 1955 to a present rate of ferhaps 900,000 to 1,000,000," he said. "This great contraction in the use of lumber for house building has greatly affected the market for all types of softwoods and plywood. The West Coast mills, in particular, and the plywood mills kept up production in spite of this greatly diminished demand for softwood lumber during 1956. 'Ihis has necessarily resulted in overstocks of West Coast softwood lumber and because they did not keep their house in order, they have had low prices and unprofitable operations. They have now belatedly reduced their output to the level of consumption and their prices are firming slightly.

"The future of the building industry in the United States points to perhaps 900,000 houses a year for the next several yqrrs as against the peak in 1955 of 1,400,000. This is still an awful lot of houses, measured in pre-war terms. It is expected that by 1960 the family formations will again turn up," he continued.

"Now how does this afiect our hardwood lumber business ? In the past year, we have had and still continue to have a great demand for furniture. The demand for furniture is at its high right now. This. is surprising with so many less new houses to furnish, but the great thinkers believe that many of the owners of the new houses recently built have only just now had sufficient funds after their houses have been paid for or financed, to now furnish them.

"The $64 question is how long this can continue. Personally I look for a good business at least the first six months of 1957 from our largest hardwood customer, the furniture industry. Other lines of business using hardwoods, such as interior trim manufacturers, are not using as much as they did except for institutional building, schools, churches, etc., which are being built freely.

"Let us not forget, therefore, that while business with us hardwood people is good, the hardwood business stands alone in this great lumber industry as the only part of it which has not suffered greatly over the past year. Can this prosperity of one segment continue all alone ? I don't know. It depends on ourselves. We should not manufacture nor encourage the manufacture of more hardwood lumber than the demand calls for. If we do, in mv opinion, we can slide down the bitter road our much larger brethren in the softwood industry, particularly in the West Coast, have let themselves travel.

"Gentlemen, this is no time to be careless in the conduct of our business. Correct decisions made now, can pay off handsomely in the future and so I say just watch your step in 1957 and be sure you produce only what you have a good market for. To those of you who sell wholesalers such as ourselves, my advice is to consult them freely and keep close in touch," Mr. French concluded.

Telephonetiquette: Don't You Wish Everyone Used rhe Dicll -- Right?

(Courtesy of Southern California Retail Lumber Assn.)

I'.r'cr- u'orrcler hon' _r'oLt sotutd n'herr,\'ott telephone s()lrc()1re j Ilr-er re;tlizc that r.orr can lrc otre of thc tolr pulrlic rclatior-rs pe oPlc irr vottr co1lrl)alrv ? \\''her-r sonteonc c:rlls -r'orr on the telclrh,rre, ais iar lls hc is concerllg{, vort rLrc thc c()mp:Ilrv. .\n<l if r-ott sotttr<l clrcerfrrl, c1e:Lr lLtttl irrtcrcstecl, yorrr callcr's attitucle ton':rrrl the compltnr. n'ill lrc lr gt.,od one.

Ilelos- :rrc a fcn' lielpful telephonirrg cio's ancl dotrt s. .'\fter reaclir.rg thol carefullv, ii 1,or.r clecide r-ottr tclephone etirlr.rettc is pcrfect-c(,ne-rirt11l:rtiuns I if ttot, u'hv r"rot trr- to itnlrror-e ?

Grab that phone! Nobr.,clv likes to be kept n,aiting, especialll' on the telephonc. fhereiore. ansu'cr calls pronrptlr-. I[ -vou can't, expluir.r the clelav anti lr1;ologize for it.

Be easy to trace. \\.heu volt le:Ir,e 1.our oflicc for itnv length oi tirlc. clo not kccp vottr:rlrsence lt sccret. Someonc nrirl c;Ll1 for infornr;tti,l'r n'hich oulr' -r',,tt citn give. Let it lrc krrou'n l-here,v()t'l cilrr lte reachetl, hou'long vort u-ill lrc tl.rere, rLncl n'hcr.t \-ott n'ill bc lrack. Therr u-hoevcr ilns\\'crs n ill not havc to embark or1 ilrr ()fhce-to-ofltcc r-nan hunt.

See yourself as others hear you. J'-r'cr stop to u-orr<lcr horr' -l'on n-ottlcl soutt<1 i[ 1-ou cortltl cltll vottrself ? Yor.t tl fin<1 r'ortr slteecl'r ha: i,,ttr ilttlr,,rt:tttt charactcristics : clrccrfnlness, distirrctncss, lottclncss itn<1 speed.

Be cheerful. lt nill urake vour c:Lllcr [cel good:tntl vort u'i1l icel 1;etter. too. If )'ot1 are lLlrlc to get that g1:rd-tohertr-from-r-ott ring irr vour 111;igq, yoLl u'il1 fincl thc cal'lcr lrecoming jrrst irs s\\'e ct as can lrc.

Talk normally. Sonrc peoplc trv to ch:rnge thcir personalities n'hen thcv picli up:t rcceiver. Sonrc rtxir like a lrrrll moosc p:iging its n'rnte. Othcrs u'hispcr :rs though their nrcss:tS-c \\'cre a c1ee1l, <lltrk secret. Still others trv tcr souncl solrhisticate<1, or rncchrtrrical, or ct1tc, or lilie a big shot. Ilrrt n-hen clicl ,r'ou cvcr notice lion' lrig shttts talk? Thc,v rirc just as clear rrrrd:rs sin.rplc lts c:tn lre.

I[ 1,orr \\-i!llt to sar-c timc arrtl sound lrusinesslike tno, fell v,)rrr (';rller risht o1T the ltat s-ho vott:rrc. "Sales l)e- '""" "b"' l):rrtmelrt, John I',roNn speaking." siivcs \-our tilllc itll(1 that oi vortr callcr. or "Hello" rnean nothing.

Don't kick a caller around. Nothirrg is urore irritlrtirrg tlrar-r "the telcphonc run-aroun11"-lrcing kickecl frout ottc c\tensiorl to ltuothcr. \\-hen vott gct a call, ltrrsucr it ii y()11 can. li _r'orr can't, tcll the c:rller ]'t-ru'11 transfcr him to the right part,r'. Tt is u'ortl'ru'hile treating lrll calls as irnportant. Nlost oi then.r arc I

Find out who. If yotl ilns\\'e r s()meone else's telcl;horre ancl the caller rloes not irlcntify hiniself, trv tr> lincl out tactfullv u ho he is. I)on't, oi cottrsc, lrarli "\\'ho are r'on?" llc n.rav be the chirirman of the lrrxrrtl. and vou'll find out!-\ lretter n'ar-is to ask, "\Iav I tcll him rr'ho is callirrg, please ?"

.\t the cr.rcl of the call, hang rrpr gentlr-. l)orr't bang thc rcceivcr so that yortr ciiller gets a sharp crack in his ear.

Don't trust to memory. If there is:t nressage, u'ritc it clon'r'r. I:r'cn ii r1() nrcssllge is givcn, r-tr:tl<c a notc of u'hrr clrllctl and :tt n'hrtt t:ure. iJe srtre to get the namc at'rtl nrrrnber accuratelv.

It's all in the way you call. The l)crs()rr \'()u are c:rlling rrr:rv 1re ver,r'lrrtsy. So to szrve r-otrr til'ue ancl his. irlcrltifl' r-ourself tlrrickl,v rLn<1 st:Lte vottr lrLtsitress. lJe cordi:t1. lrrrt lre iniormutive :rrrrl lrusinesslil<e.

Wrong number? Be pleasant. \\'rorrg nuttrlrers c:Ltr be :Lvoidecl r'cr,r' sinrplv. f'rottotlttce the r-rtttnber y()11 \\':lnt distinctll. rrn<l <lial carefr.rllr'. [,ook ttp doulttfrrl trttnlllers ir-r vottr rlircctor.t'. If ;r u'rr,ng trtttnlrer cLres hltppctt. gir-e the other icllorv a brcak. I{c[rain from slatnttring the receivcr n ith :r ctlrt "\\trorrg nrtr-lrber !" Iltstc:t(1. sa)-, "Sorrr-, rro Jlr. I'oinik hcre. r\re you clLllirrv ()rchard (r-119!)(.) ?" 'f his is nr.rt onl_r' rlorc coLtrteotts. lrtrt ,r'ou tvill n()t gct ltnother call asking for JIr. I'ofrtilt.

If vou arc the ctrller lrrcl the loice at the other crrrl sourrrls strange, :rsk plclts:tt.rtlr-, "ls this ( )rchard (t-9999?" lf rrot, upologizc lrricfly lLr.rcl recheck vortr tlirectorl-.

L,'nless votl are calling to forcclosc the mortgagc or lrorrou' $50, r-ou cunn()t miss havirre- vorrr call renrellrbcrcd pleasantlv. -\n11 1>leasant association-good n'illis the cornerst()ne of gclod business.