NBMDA Conducts Problem-Solving

Distributor-Dealer Conference

ttTl ENTLEMEN ! During this Conference we shall en- lr.J deavor to solve manj' problems especially the problem of lost markets." These were the opening words of a short welcome speech made by Dick Freeman as he initiated the National Building Material f)istributors Association Distributor-Dealer Conference on September 18 in L. A.'s Ambassador Hotel. Dick concluded his brief speech and then introduced M. L. McCreery, president of the Association.

Mr. McCreery stated that he had noticed the tremendous building and construction growth in the Los Angeles area , but, that he doubted if the profit margin enjoyed in the building materials industry had kept up. He also said that he was very pleased to see the interest and co-operation which existed between manufacturers, wholesalers and retailers attending the Conference.

Francis Brown (Moderator), Editor of Western Building Review, introduced the panel members for the first Round Table Discussion: Fred Thompson of Inland Lumber Company, Ralph Singer of Diamond W Supply Company, Hal Anawalt of Anawalt Lumber Company and Ken Dietel of the Pomona Lumber Company.

Mr. Singer, a wholesaler, was asked to state problems which faced his company. According to this prominent man in the building material business, one of the most crucial problems facing his firm is the lack of qualified young men. Mr. Singer added that the building materials industry is unable to absorb qualified young men because their gioss profit margin does not allow them to offer highly attractive starting salaries, _Large profit-making organizations like insurance companies take away the better class of personnel.

Hal Anawalt had four points to bring before the group for discussion. Primarily. he stated that wholesalers should accompany salesmen to visit retail clients. Secondly, Hal said that catalogs and price sheets left by salesmen with clients should be up to date. Thirdly, Hal opinioned that wholesalers should make sales and distribution policies known to retailers. Finally, Mr. Anawalt stated that Wholesalers should keep hitting Retailers again and again until thev eventuallv make a sale.

Ken Dietel expressed that he thought business could be generally improved by: promoting shell-housing, standardizing patterns and colors of building products and labeling building material trucks with the statement, "Wholesale to Retail Dealers Only."

At the conclusion of the first round table discussion, Francis Rrown opened the meeting for group discussion. Among the main points which were resolved by the group were : product catalogs should be sent to architects; new products should be displayed by wholesalers and retailers; when the retailer fails to perform his function he is eventually cut out; something should be done to restrict discount houses from taking business away from the wholesale and retail lumber and building material dealers. *.Next- on the program was a speech presented by Don say that his company, the Richardson Lumber Company, ships component houses up to 300 miles away from tlie factory. He then added that lSVo of national-home construction jobs are pre-fabricated, while only l0/o of the homes built in Colorado are pre-fabs. Mr. Richardson said that customers can actually move in only thirty-five days ow Distributor For HOUSTON WATERPROOFING PRESERVATIVES

Richardson, vice ident of NBMDA, bn the component fi.rcnarcson, vlce prestoent I\ IJ.|ljA, on picture. Mr. Richardson stated that the average tracthousing projects consisting of twenty-five homes are lost ng proJects consrstlng' ot twenty-hve mers for components. The vice-president went on to customers components.

Your Answer lo Cuslomer Demond for True, Cleor, Permonenl Wolerproofing Preservolives after they've ordered a component home, and that most homes have no interjor finish (This must be supplied by the local Retail Lumber Dealer).

The California Door Company-newly appointed distributor for Houston Waterpioofing Manlfabiuring Comp^any, Division of Houston Chem-icals, Inc., Alh"ambra, California-now offers the retailer another demand product of proven worth and positive sales value.

Time tested in the ffeld for Long used by large comover 30 years, Houston #2 pani6s, contracto'rs and f9r^ Itlasggy and Houstorr lovernment agencies, #l fo: Woo-d are speciff- Houston Waterp-roofing cally f ormulated, under Preservatives are irow availl stringent quality control, to able to the all-important satisfy structural require- "do-it-yourself" and other ments. retail trade.

Houston Materials carry active solids into the wood or masonry, and upon_ penetration and curing, expand up and into the treated wood or masonry. reacting so as to become a hard, integral, permanent piit of theitructure. The surface of treatdd mdterials is lefi free for application of paint or other d_ecorative ffnishes. No furth-ei primer sealer coat required. Houston Materials are non-foisonous and non-toxic.

WOOD-Houston #3 preserves against attacks of moisture, thus eliminates or substantially,retards,rotting,. splitting, cracKrng, encl cneckrng, warp- ing anddiscoloration.

MASONRY-Houston #2 preseryes against attacks of mbisture. thus eliminates or substantially retards stainine. checking, cracking and effiorEscence.

S. M. Van Kirk, General Manager of NBMDA, was called to t!9 speaker's platform to eiplain the major weaknesses at "the point of sale." Ife said that cutting prices is a temporary anitver to the current problems, not a lasting one. Mr. Van Kirk continued by saying that the volume of business transacted is rising, but so-are wage costs.

At the conclusion of Mr. Kirk's remarks, the persons attending the Conference were invited to lunch at tLe Ambassador where they enjoyed the Hotel's famous cuisine.

After lunch the second panel was called to the speaker's platform by its Moderator, Dick Freeman, So.-Cal. Building \4aterials Company. The second panel consisted of : W. G-. Grieve of Building Material Distributors, Fred Kranz of. Golden State Lumber, Ray Haley of Haley Wholesale Company a1d faul Hollenbick, Exicutive Seiretary of the Southern California Retail Lumber Dealers Ass5ciation.

Paul Hollenbeck was the first member of the second pale-l to- speak. Mr. Hollenbeck said that proper accounting and budgeting procedures are of paramount-importance t6 the lumber and building materials dealers. Ray Haley then told about an experiment he is carrying on at-his company whereby salesmen are paid a percentage of the gross piofii. In this manner salesmen are given a strong incentive to sell because they know exactly how much commission will go into their pockets on every item they sell.

Fred Kranz commented that the wholesaler should not try to tell the retailer where to set prices (that should be the retailer's concern). Bill Grieve then spoke in favor of data processing machines. Mr. Grieve said that data processing should show the wholesalers and retailers not what has happened, but what is going to happen.

It was resolved at the conclusion of panel report that office records should do more than just tell how much taxes management has to pay; they should also indicate a sales forecast.

Before adjournment of the Conference, Mr. Van Kirk reminded the group that the 1962 Spring Meeting of NBMDA will be held in San Francisco, Rpiil 30 through May 3. On May 4 the group will leave foi Hawaii where they will attend the Mid-Pacific Conference. They are expecting over 200 distributors from all states in the Union to participate in this event. While in Hawaii they will inspect warehouses, review the construction industiy and attend the Wholesale Building Materials Distributori Convention.