SCRLA Deolers Squeeze Lost Good Drop Out of Polm Springs Conference on 1959 Profit ldeqs

With a Conference theme of "squeezing More Profits Out of Sales in 1959," the active dealer members of the Southern California Retail Lufrber AJsociation gathered in goodly number at El Mirador hotel in Palm Sprinqs, November 13-15, to hear the excellent forum leaders lined up for them at the SCRLA's 9th annual D;ealeis Conference by President Hal A. Brown and Executive Vice-President Orrie W. Hamilton.

A majority of the delegates arrived the evening before to let off a little pre-Conference steam at the hotel's weekly 'Barrarian Festivaf with bufiet, band, JavJry, dancing and special entertainment and also to make sure they were on hand for the scheduled start of the Conference at 10:00 a.m., Thursday morning.

The dealer business actually started at 8:00 a.m. with the Directors Breakfast in a private dining room. Registration was officially opened at 9:00 by Shirley Carvalho and Vivian Ahlin of the SCRLA office, and the business session came next on the program in the El Mirador theatre complete with screen for the many interesting slide presentations. Soacious tables and comfortable chiirs covered the floor of ihe theatre room, with ample memo pads and pencils for the delegates to jot down the questions they wished to ask the well-informed dealer leaders.

President Brown called the Conference to order with Executive Officer Hamilton's report on "Your Association Activities and Services." Mr. Hamilton outlined in his forthright style the many services to which affiliation in the SCRLA entitles its members, described the localized area meetings and introduced the new field man, Ed Gallagher from New York, lvho has recently joined the office staff. Mr. Hamilton cited in passing the association's legislative functions, retirement plan, workmen's compensation program; group life, health and hospitalization insurance programs, its regular bulletins to members, its Cost-of-Doing-Business Survevs. etc.

EXECUIIVE ORRIE HAltllTC)N wor here, lhere ond everywher*overseeing the smollest Conference deloils, moking like c stogehond wirh rhe screen, like qn eleclricion with lhe mikes, ond like c proiectionist wirh rhe slide equipmenl. Jock of mony hodes ond moster of dll, rhe SCRIA's C)rrie proves his volue to hir deolers mony times o doy, but elpeciolly ot the qnnuol convenlion ond oilter meelings.

The dealer labeled the Unemployment Insurance tax just as much a business cost as property taxes or insurance, and declared that dealers need to improve employee relations to hold rates down. He said that stabilizing employment reduces the yard turnover and,therefore the tax.

Dealer Doepker advocated putting yard crews to work during slack periods at building racks and cover boxes, precutting headers and cripples, or any necessary jobs which will keep them on the payroll so they won't get in line for the federal "26-week vacation with pay." Every questionable claim for U.I. should be protested, he said, with the retail lumberman backing up his case by offering plenty of supporting evidence in the form of employee records, etc.

The Conference's first Panel was next: "Credits, Collections, Cash Discounts and Our Lien Rights." It was moderated by Ralph Hill, credit manager of the Owens-Parks Lumber Co., and consisted of Frank Bergstrom, Hammond Lumber Co.; Leo Hubbard, secretary of the Hayward Lumber & Investment Co., and Ralph Russell, vice-president and assistant treasurer of the Consolidated Lumber Co. While a majority of the information developed at the SCRLA's annual Conferences is private to its dealer members for mutual advantages and the better conduct of their yards, highlights of each session may be briefly reported for the enlightenment of the entire lumber industry.

Moderator Hill said his company experimented with a certain cash-discount figure and learned the reduction had absolutely no effect on the speed of collections; the policy was abandoned because the sales force reported it put them at a competitive disadvantage. Panelist Bergstrom cited three functions of the credit department in "Extension of Credit:" provide for prompt collection, avoid bad debt losses. and serve as a sales tool. He called the "Three C's of Credit Extension: Character, Capacity and Capital."

THE SUN TUMBER COMPANY CROWD (right phofo) hsd q boll while the desert moon shone. From obout "l:00 o'clock" there ond oround lhe toble with their wives; George Kelly, Don Doyen (5:00 o'clock), Tom Supple cnd Miles Dovidson (neor ll:00).

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For the Panel's "Lien Rights," Hayward's Hubbard believed dealers will undoubtedly be required to notify contractors and owners when they ship materials to a job. It will be costly, he pointed out, but there is so much sentiment favoring such an amendment to the lien laws that action seems almost certain to be taken by the state legislature, Hubbard said in his presentation.

Mr. Russell believes dealers should have written contracts with their buyers spelling out exactly what/when/how payments are to be made. Salesmen may be able to collect overdue accounts, he added, or at least determine reason for nonpay to guide the credit department. He thinks personal contact the best in making collections, and said extreme care should be exercised in phrasing collection letters so as not to invite legal action.

Time ran out on this excellently chosen panel on a vital

R,oster of Delegotes fo t{re

9rh Annusl Refqil Lumber Deolers Gonference

El Mirador HotelPalm Springs, Calif. November 13-15, 1958

I-awrence Adams, Eagle Rock Lumber Co., Inc., Los Angeles

Vivian Ahlin, So. Calif. Retail Lirmber Assn., Los Angeles

Bernard and Margrrerite Anawalt, Sr., Anawalt Lumber & Materials Co.. Montrose

Ralph and Helen Baker, Barr Lumber Co., Santa Ana

Ed and Laura Ballantyne, Signal Lumber Co., Inc., Long Beach

Guy and Emma Barnett, Rossman Mill & Lumber Co., Wilmingtor-r

Wilbur and Joie Barr, Barr Lumber Co., Santa Ana

Ben and Mildred Bartels, Peoples Lumber Co., Ventura

Austin and Nell Batcheldor, Rossman Mill & Lumber Co., Wilmington

J. Eric Beckstrorn, Arcadia Lumber Co., Arcadia

L. A. and Ruth Beckstrom, Arcadia Lumber Co., Arcadia

Frank Bergstrom, lfammond Lumber Co., Los Angeles

Hal and Dorothy Brown, Woodhead Lumber Co., I-os Angeles

Stanley and Yvonne Brown, Chandbr Lumber Co.. Van Nuvs

Norbert and Claire Bundschuh, Myrtle Avenue Lumber Co., Monrovia

Al Carlson, Chino Lumber Co., Chino

Shirley Carvalho, ,So. Calif. Retail Lumber Assn., Los Angeles

Bill and Marilyn Cowling, Jr., Dixieline Lumber Co., San Diego

Bill and Mary Cowling, Sr., Dixipline Lumber Co., San Diego

M,iles and Sally Davidson, Sun Lumber Company, San Pedro

Vaughan and Florence Davies, Thompson Lumber Co., San Bernardino

Don and Jo Dayen, Sun Lumber Company, San Pedro

Pat and Marge Deardorf, Peoples Lumber Co.. Ventura

Art and Jane Dickenson, Dickenson Lumber Co., La Habra

Ken and Doje Dietel, Pomona Lumber Co., Pomona

Frank and Jeanne Doepker, Mullin Lumber Co., North Holll,wood

Asa and Marguerite Fickling, Fickling Lumber Co., Inc., Long Beach

Joe and Leona Fitzpatrick, Consolidated Lumber Company, Wilmington

Tom and Catherine Fox, John W. Fisher Lumber Co., Santa Monica

Ed Gallagher, So. Calif. Retail Lumber Assn., Los Angeles

John and Catherine Ganahl, Ernest Ganahl Lumber Co., Anaheim

Oscar and Alice Gibbs, Gi'bbs Lumtber Comp4ny, Anaheim

George and Helen Gibson, Gibson Lumber Co., San Bernardino

Orrie and Louise Hamilton, So. Calif. Retait Lumber Assn., Los Angeles

Mrs. Emily Hardy, Fickling Lumber Co., Inc., Long Beach

Stuart and Katherine Harris, Lounsberry and Harris, Los Angeles

Norton Hathaway, Oceanside Lumber Co., Oceanside

Steve and Edithe Hathaway, Oceanside Lumber Co., Oceanside

Nick Higginbotham, Sones Lumber Company, El Centro thought for the

IHE PANEI lN ACTION (lefi ro righr): Atoderotor Rolph Hilt ond pcncli*r Frcnk Bergrtrom, Leo Hubbord ond Rolph Russell. They knew their rtufi. subject but each of the dealers left a lot of food for with their fellow dealers before thev ioined them Conference's solid food at a Noon luricheon.

The repast was served buffet style around the Olympicsized pool at the hotel under the luncheon chairmanitrip oi Dean W. Swartz, partner in the Mar Vista Lumber Co. A Fashion show was provided bv Waltah Clark's Hawaiian Shop at the hotel and broughf back many a spoken memory from the dealers and their wives who made the SCRLA's unforgettable Conference trip to the Hawaiian Islands last year.

While their wives enjoyed an afternoon of cards, swimming, sunning or shopping, the dealers reconvened in the hotel theatre at 2:30 for the first afternoon business. Chairman of this session was Ex-President Ben W. Bartels, treasurer and general manager of the Peoples Lumber Co., who introduced his first speaker, Ralph N. Baker of the Barr Lumber Co., with "Barr's profits are longer than Ralph's

Donald and Marie Hightower, Fleming and Hightower Lumber Co., Los Angeles

Ralph Hill, Owens-Parks Lumber Co., Los Angeles

George and Mary Catherine Hinkle, Consolidated Lumber Co., Wilrnington

Leo and Mildred Hubbard, Hayward Lumber & Investment Co., Los Angeles

Wayne and Donna Hull, Hull Brothers Lumber Co., Los Angeles

Edgar Jackson, Chino Lumber Co., Chino

Larry W. Johnson, Hammond Lumber Co., Los Angeles

"Red" and Thelma Johnson, W. M. Dary Lumber Co., Long Beaclr

George and Rita Kelly, Sun Lumber Company, San Pedro

Frode and Harriet Kilstofte. Rossman Mill & Lumber Co., Wilmington

Frederick and Alice Kranz, Golden State Lumber Co., Santa Monica

Dick and Betty Learned, Learned Lumber, Hermosa Beach

Belton and Audrey Love, Chandler Lumber Co., Van Nuys

J. N. and Muriel Manning, Myrtle Avenue Lumber Co., Monrovia

Bill and Lucille Marmion, San Gabriel Valley Lumber Co., Arcadia

Jim and Ann Maynard, Santa Ana Lumber Co., Santa Ana

Carr and Ollie McCauley, Ontario Lumber & Hardware Co., Ontario

Russ and Thelma McCoy, McCoy Lumber Co., Hemet

Stanley G. McDonald, Owens-Parks Lumber Co., Los Angeles

Albert B. McKee, Jr., Forest Lumber Co., Los Angeles

Kingston McKee, Forest Lumber Co., Los Angeles

Russ and M,uriel Morgan, Morgan-Davidson Lumber Co., Downey

Wayne and Charlotte Mullin, Mullin Lum,ber Co., Los Angeles

James and Mary Nelson, Buena Park Lumber Co.. Buena Parl<

Ed and Bernice Newkirk, Chandler Lumber Co., Van Nuys

Ray Peterson, Hammond Lumber Co., Los Angeles

Reed Porter, California Lumber Merchant, Los Angeles

Bill and Menora Rau, Peoples Lumber Co., Ventura

"Cal" and Marian Rene, W. E. Cooper Lumber Co., Los Angcles

Verl Rhine, Hammond Lumber Co., Los Angeles

George and Faye Rodecker, Williams Lumber Yard, Azusa

Ralph and Lela Russell, Consolidated Lumber Co., Wilmington

Bud and Evelyn Schuler, Anawalt Lumber & Materials Co., Pacoima

Bob and Carol Sievers, John W. Fisher Lumber Co., Santa Monica

Paul and Joanne Snydeq Mullin Lumber Co., Tustin

Gale and Yvonne Stafford, Mullin Lumber Co.. San Gabriel

John Sullivan, Western Lumber Co. of San Diego

Tom and Phil Supple, Sun Lumber Company, San Pedro

"North" and Marian Swanson, Eagle Rock Lumber Co., Los Angeles

Dean and Nova Swartz, Mar Vista Lurnber Co., Mar Vista

Walt and Grace Taylor, Walt Taylor Lumber Co.. Anaheim

Larry and Mary Louise Van Order

Blue Star Lumber Co., Lynwood

Gilmore and Mildred Ward, Ward and Harrington Lumber Co., Santa Ana

Bob Welch, Building Supply News, Los Angeles pants," as the popular Baker again illuminated desert climate with his sartorial splendor in a Bermuda shorts. of service on each type of sale. "The size of the order and the services rendered should determine the markup on a sale," Schuler emphasized in conclusion.

The questions that followed led Chairman Bartels to say, "Your questions show how interested we dealers are in this 'pricing mess'."

Next came one of the most authoritative sDeakers of the Conference, Larry W. Johnson, president of ihe Hammond I umber Co., Los {nge!es, and the Johnson Cashway Lumber Co., Omaha, Neb. He admitted, "I didn't know how I was golng to cover the subject of 'The Proper Return on Investment,' but after hearing two fine tallis I know you men have the basic knowledge."

Ana yard talked on "Costs Involved in, and Pricing Tools Needed for Operating Yards of Various Volume Sizes." He handed out mimeographed forms and showed slides to heighten his talk, and told how the Barr yard "forecasts" sales, gross profits and percentage of total sales. He said dealers don't talk enough about the relation of gross profit to sales, and should ask, "How much did I make on my investment capital?" instead of "How much on my sales?" He said that on its Douglas fir commons, the biggest single item most lumber yards sell, Barr breaks this item down into five categories. He showed on slides some yard figures taken from the SCRLA's confidential Cost-of-Doing-Business survey.

Baker said that, except for the year 1952, Inventory Turnover has been dropping yearly since 1950, and told his audience that "Turnover is strictly your own Management problem." Referring to the morning's Panel, Baker said Barr puts its Cash Discounts into "General Expense." Mr. Baker, who said his "Sales Inventory Turnovef' charts grew out of his experiences at the Hayward, Patten-Blinn and Barr lumber companies and gives him the greatest help, gave the dealers a common-sense analysis of how to aim and figure for a larger profit.

He added that some yards are already working with an IBM machine system and said the day may come in 1959 that Southern California retail yards have to start costing volume sales tickets like many Midwest yards already do.

At this point there were passed out to the dealers some thorough and useful charts prepared for the 9th annual Conference by the Profit Planning Research, Inc., Burbank, Calif., with the compliments of the industry's friend, Paul R. Hollenbeck.

Mr. Johnson brought his audience up sharply several times with statements such as his yards have a iystem that allows them to tell if expense is getting out of hind at any month. He said, "What America needs is a good dose of tough-mindedness," and added, "Your Competitor is not across from you, in front of you or behind you in this room -It's the Driver who stops forra coffee-break, the Bookkeeper who does two hourl' work a day, the Handler who takes two days to unload a car he could ho in one day."

He believes the average return on business today is less than legal interest and said the dealers present are operating in the fastest-growing state in the union and should earn the respect of the rest of the country with a proper return on their investments. He told his audience th-eir-return on investment should never be less than l0% AFTER TAXES. and cited General Electric with a 2O/o g:oal and J. C. Penney with 18.3/o.

Johnson pointed out that location cost cannot exceed lft/o oI sales and if buildings cost 3/o "you're licked before you startl" He advocated a "blueprint" and a sound pricing program in retail op_eration, which he said have occasionally let some of his yards hit the 20/o figwe at some times. H-e invited the dealers to contact Ray Peterson of the local lfammond office for any questiotrs of h"lp.

The veteran retailer said that a yard with a $192,000 investment must turn its Accounts Receivable 12 times a year, its_Inventory six times a year, and said his company tries to hold its overhead at 15% of sales. He said one of the problems of retail lumber today is that it hires salesmen who are merely "giveaway artists. Let's get a pricing system and let's insist that our store and yard salesmen LIVE with that price !"

Mr. Johnson quoted a "Chinese proverb": From small profits and many expenses, ComCs a whole life of sad consequences.

"The men on the spot are the ones who can cut costs, not the men in the office (except the office manager)," he said. "Your supervisor should see that you're getting one hour's work for one hour's pay. A systematic sludy of and plan- ning for ALL yard operations is necessary to cut costs," Johnson concluded.

"Pricing to Compensate for Services Rendered" was the topic of R. L. (Bud) Schuler, manager of the Anawalt yard in Pacoima. Dealer Schuler thanked Paul Hollenbeck for his help in his presentation and said, "Profit Planning is the key to successful business." He told of the difference in personnel at a yard doing contractor business and a large yard with volume sales. Citing the "acute" competition in the Los Angeles area, he said, "Whether to lose the customer or the profit is always a question in competition."

He believed costs are getting close to the traditional"lf3 profit" and said it costs 22/o of sales to operate many retail lumberyards today, adding there's a different cost

Miles W. Davidson, general manager of the Sun Lumber Co., followed with "By Reducing Items of Fixed Overhead, Our Profit Dollar Can Be fncreased." He said that many items of fixed overhead cannot be changed but it behooves us all to examine our costs and KNOW what we are paying for.

_ "Every available inch of warehouse and office space must be used productively-and the same can be said of machin- ery," Davidson declared. "Maintenance and replacement can be standardized. Il employes stand around unproductively, don't blame them as much as yourself-YOU are the Management !"

He brought out some interesting sidelights ou the "carallowance" and leasing plans, and believes that an industrywide pension plan is probably a foregone conclusion soon.

Mr. Davidson said, "Communication from one department to another should be clear, complete and thorougl-rly understandable to each person handling company business. Paper work can frequently be profitably 'farmed out'." He said Sales Compensation is the most arbitrary of all yard items and suggested several plans. The Sun Lumber executive stated, "There are no particular secrets in this industry, and I believe the Southern California industry has done a whale of a job the last few years with the local boom housing, business conditions, etc."

With tLie first day's several stimulating talks behind tl-rem, the dealers refreshed themselves and reappeared at 6:15 wives cut a charming caper on the dance floor, and not just trying to see what specie it was. Prizes would probably go to such businesslike dealers as Stew Russell, Norb Bundschuh and Stanley Brown and their wives and other partn€rs, for their unexpected expertness with the arts of Terpslcnore. p.m. for the President's Reception, a delightful, convivial hour in the hotel's South Pacific room beside the pool. They were all there and relaxed socially in a friendly atmosphere while rehashing the highlights of the first productive Conference day.

Following the Friday breakfast, the second morning's business session produced what proved to be the most popu- lar item on the program. This was "North" Swanson's color-slide presentation of his'yard's new self-service operation.

In the absence of Russ McCoy because of illness in the family, Norbert Bundschuh of tl-re Myrtle Avenue Lumber Co. accepted the chairmanship of the Friday morning session. President Brown introduced Norb with some of his inimitable remarks on the night before, the state of the union, lumber in general, etc., and the Monrovia dealer in turn introduced his first speaker, H. N. Swanson, vice-president, assistant manager and purchasing agent of the Eagle Rock Lumber Co. Young "North" has learned his trade well from his dad, the veteran dealer, Emil Swanson, and added some outstanding, present-day merchandising techniques of his own, as he soon proved.

Swanson had confided earlier that he intended to limit his turn in the spotlight to 20 minutes, but it was more than an hour later when he had to beg off from answering questions and let the other speakers on. The Eagle Rock yard earlier this year installed an unusual Self-Service Shed, as reported in The CALIFORNIA LUMBER MERCHANT (9/15/58), and North's nimble listing of its operation and his excellent color slides made a tremendous hit at the Conference.

AT THE PRESIDENI'S RECEPTION-rho rop oftcers were in top fonn (qnd don't they look ir?). From left to rightr President Hol Brown, immediote Post-President Woyne F. lAullin, Dorothy Woodheod Brown (the President's lody), Execulive Vice-President Orrie W. Homilton, Chorlotte llullin ond, completing lhe protly picture, louise Hqmilton.

The annual Conference banquet was served at 7 :30 in the Garden room and the prime rib vied with the excellent Billy Allen orchestra for attention. From the orofessional fooiwork and trim figure of Doje Arbenz Dietel (Mrs. Ken) to the happy chatter of the Sun Lumber crowd, it was a memorable banquet, and a great many of the dealers and their

"The theory behind 'Serve-Yourself is one every retailer is interested in-cutting costs," he began. "It can make the costly small sale a profitable one. The customer accepts the price-tag on a S.-S. item and justifies it to himself when he picks it up, hence he needs no sales talk at the cashier's stand."

Asked about problems on this type of sale, Swanson said Self-Service minimizes sales pro!,1e65-((\{sn shop like the wife does when she buys and browses." He added that deal- ers can also appeal to women customers with this type op-' eration by smart merchandising. "Mix up the hardware, lumber and paint so that they'Il often buy something they hadn't come in for-like hubby at the grocery store."-

He said the new operation does away with a lot of extra yard hours and overtime because no large lumber is l-randled in the S.-S. shed, where long boards are cut up to make short ones in tl-ris department.

"In three months' time, the ratio of charge to cash sales has changed very fdvorably," he pointed out.

"Most of our old customers now go in the Self-Service shed for what they want and pay cash."

The Eagle Rock yard's new department is in a shed which they _were- forced to build at the old yard by the Dept. of Building & Safety. Swanson described it as i steel building ryhiSh was put up in two days (Editor's note: Empire Steel Eqildings eo.) iir answers [o questions from his audience. With the help of a novel slide-film technique, he was able to mark and write on the slides which were immediately projected to point up his remarks.

At one point in his talk, Swanson also proved himself quite a showman. Casually inserted among the other slides after a time-out-for-discussion period, theie appeared, as if by mistake, a slide of a native Hawaiian bearitv left over from the dealers' Islands trip last vear. "Now that I have all your attention again. .-" the young dealer said as he continued to audiente laughter (and apipreciation). There were several requests for more casual study of the slide.

The showroom-like appearance of the merchandise in the Self-Service shed appears to make it an excellent auxiliary salesroom idea for m-ost yards, and the Eagle Rock yard has it excellently-stocked and kept up. Swans6n said t-he ..psycl-rological" effect of browsing thioueh all this merchandise has the desired results on thl yard'i customers in impulse sales.

His audience not only peppered him with questions on the operation_all_through the talk, but let looje a barrage of them at North as he tried to resume his seat, which pio.'es the dealer interest in this new type of retail lumbiryard merchandising.

Chairman Bundschuh had said in starting the morning session that there was meat in it for all, ,ireflecting th; kind of yards we all try to run," and both this talk- and the ones that followed proved it.

"Catering to the Cash-and-Carry Trade" was the next topic, and in t-!1. -hands of another capable young lumber dealer, James TI. Nelson, secretary-treisurer- and-manager of the Buena Park Lumber Co. The Nelsons' operation in the boom community is also familiar to readers of this mag- azine .through various. writeups at the time their many iinovations in merchandising have been made.

Young Nelson also showed slides and made commentary o_n them, and there could be little doubt by anyone seeing. them that we have mighty enterprising retail yirds here in the west. The Buena Park yard's store has some handsome gift and housewares departments, and the slides even inspired Carr McCauley, the respected Ontario dealer who w?! tlg pioneer lumberyard giftwares instigator with his wife Ollie. Jim said both his pre-med and arischool education had come in handy in designing the modern departments.

But_ strictly "old school" was his comment that paint sales had gone up 20o/o since they moved that depart- ment nearer the lumber department.

. The Buena Park yard is an unusual operation in that it is centered i\ a l0o/o tra_ct area, with no individual building lots. Do-It-Yourself trade is its backbone outside the traci sales. The Nelsons offer a Continuous Credit plan for which they thank Norb Bundschuh, Bob Sutton (and Sears) and other dealers who pioneered it locally. Jim said they plan to remodel the Lumber department nl*i in their coritinual progress program, and closed by saying, "Men and women both love to come in and browse arouni and shop no.w.,'

- Larry E. Van Order, president of the Blue Stir Lumber Co., continued the morning theme with his talk on ,,Mer-