Heodqches of "Ethicql Distribution" Argued Out qt First West Coqst Conference of the NBfffDA

"We all know why and where distribution channels_are brea_king down. What I r.vant to know is what action are we-as an-Associalien-going to take in combatting the trend?"

This statement from the floor pietty *ell summed up the feelin-gs of the_75 building material distributors who were attending the first-Wesi Coast Conference of the National Building Material Distributors Association at San Frincisco's Sheraton-Palace hotel on September 12. The all-day session was devoted exclusively to a discussion of : "What is the real reason distribution channels are breaking down-and what can rvholesalers do for the manufacturer and dealer to secure the lvanted cooperation ?"

The day-long business session rvas called to order at 9:30 a.m. by Program Chairman R. E. Freeman, So-Cal Building Materials Co., Inc., of Los Angeles. Freeman b1iefl.y outlined the purpose of the meeting and introduced his fellow NBNIDA directors: A. L. Brewster, Jr., Akron Sash & Door Co., Inc.; James Mills, Amoskeag Building Products, Inc., Manchester, N. H.; T. J. Dougherty, Ohio Valley Suppiy, Inc., and Norman Herr, Bayonne Steel Products, Nelvark, N. J. These men, together with members from as far alvay as the east coast, undertook the trip to California to emphasize the fact that distribution breakdown is a national-not regional-problem, and must be corrected on a national scale.

S. M. Van Kirk, NBN{DA general manager from Chicago, lvas then introduced to the non-members present and the meeting u'as turned over to T. J. Dougherty, acting president of the association, for his official rvelcome.

A trvo-hour oanel discussion, "Elficient distribution-is it over or just biginning?" took number one billing for the rest of the morning. The six-man panel was equally divided betlveen manufacturers, distributors and retailers and was moderated by Francis Brorvn, editor of Western l3uilding.

Presenting the manufacturers' case on the panel were: Lloyd Fry, Jr. of Lloyd Fry Roofing Company, Summit, I11., and M. C. Fairfield, general sales manager of the Insulite Division, St. Paul, Minn. The distributors were represented by E. tr. Hively, head of Material Supply Co., Springfield, Ill., and Norman Herr, president of Bayonne Steel Products, Neu,ark, N J. The lumber-dealer point of vie'w rvas presented by Hamilton Knott, Yosemite Lumber Co., the president of the LMANC, and Russ Stevens, A F.

Stevens Lumber Co., the imrnediate past president of the Northern dealer group.

N{anufacturers F'rv and l"airfield noted that the main problem facing all manufacturers is to cletermine just tvho is a legitimate distributor. Fry noted tl-rat in some sections of the country, especially in the Southeast, it is practically impossible to lind legitimate lvholesale representation. In some instances. this situation forces the manufacturer of a dealer product to go to the lun.rber dealer direct. llorvever, in no instance should the manufacturer sell the dealer on a u'holesale list. Rather, he should maintain his dealer list in order to prevent unfair price advantages, and as insurance against the day that ethical u'holesale representation might be obtained in the area, it was said.

\\i holesaiers Hively and Herr cited problems arising from manufacturers rvho are bordering on overproduction. To maintain this rrolume, considerable pressure is being applied on distributors to take the big volume accounts on di-

MANUFACTURER FAIRFIEID urged combined effort through NBMDA ro fight breokdown of proper distribution chqnnels tr, t:

WHOI.ESAI.ER HERR noied lhqf west-coast distributors qre foced with much the some problems qs those in his home stote

DEATER STEVENS was opiimislic bur sqid if wholesqlers wcnt to loke over rhey'll hove to sell everyfhing from skis to guitor strings

MANUFACTURER TTOYD

A. FRY, Jr. felt ploce to slorf working on problem is with the retdil deoler for the "ultimote sole"

DISTRIBUTOR HtVEtY felr end of boom yeqrs moy correct situotion; thinks monufocturers should sell disrribs on "deolersonly" policy

DEATER KNOTT told of trend of retoil yords to sei up dummy wholesqle componies to compeie with retoil-wholesqle firms

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