Let's Take The Mystery Out Of The So-Called Nationwide Problems \(/e Are Facing

Bv C. B. Sweet, President Notional Retoil Lumber Dealers Association

From the commonplace standpoint of competition, I believe it can be shown that the problems that face us can be handled in the same rvay as we control competition from a neighboring lumber yard or local store-whether these problems emanate from government bureaus, legislation, building codes and ordinances, public opinion, industries competing with us for the American dollar, or from firn1s allied with us in our own industry. Almost all signs point to the fact that business in 1949 should continue to be good for the retail lumber and building rnaterial dealer. But developing under this over-all good business are three broad competitive forces.

1. The first of this trio of competitive factors is the increasing competition we normally meet from other lumber yards, contractors, and applicators and builders; mail order houses and prefabricators selling our type of product in our town. This type of competition will continue to grow as the acute demand for housing, farm structures, commercial buildings and other construction is met.

2. The second ,competitive factor is the frequently unseen competition encountered from industries outside the building industry. The Am,erican people, for example, have shown a disposition to spend as much on liquor and tobacco each year as they do on housing; and if you lump in such items as cosmetics, horse racing, athletic events, entertainment, jewelry, travel and vacation trips, with their expenditures for liquor and tobacco, you will find that the American people prefer to spend twice as mtuch for these generally less essential items than for housing. Sucl-r things are definitely competing with this industry for the same dollar. If u'e view this as competition, it behooves us as an industry to make it more desirable to own a home, to make it easier to buy a home, to make it simpler to build a home, and to combat the overwhelming propaganda which has made American people believe that a home offers less value for the dollar than these other things.

3. The third of the trio of competitive factors which is growing to menacing proportions is competition from government. Such competition is not confined to the erection of so-called public housing. Such competition in its lesser form is found in the steady propaganda influencing our own customers and emanating from government agencies and congressional committees concerned with housing and construction problems. Competitive forces are likewise exercised by government in the administration of acts and orders and in the passage of legislation and in such rulings as have recently eliminated the basing point method of pricing which vitally affects heavy items such as cement and lumber, wherein the effect has been to elim:inate competition between manufacturers and to confine dealer purchases to a nearby producer.

Of course, such drastic steps as building regulations, price controls, priorities, and allocations invariably lead to competitive factors called black or gray markets. This last step in the government chain of competition is public housing.

One type of government manipulation which strongly influences building materials distribution and construction in some large segments of this country is the freedom from taxation offered to cooperatives or to any business organization that will turn cooperative. This growing threat to private enterprise started from a small seed of socialism which democratically protected individuals rvho banded together for the purpose of purchasing jointly in quantity for their own use. lforvever, this concept of a small band of individuals has grown to a monstrous economic size in which such cooperative organizations not only own their retail outlets, but their vvholesale, manufacturing, and transportation-as well as mines, forests, and quarries and other sources of raw materials.

Even a retail cooperative outlet frequently has as much as 25 per cent edge over its private enterprise competitor, because the cooperative is free of taxation.

To control this type of competition, a peculiar kind of cost must be brought home to the American people. It parallels the type of price advertising one does vi'ith a quality product. Yes, surely, the quality product costs more in its initial price-but it costs less in the long run. By the same token, every business that turns cooperative means that more of each dollar made by the average man must be paid to the government in taxes, because every business that turns cooperative dries up a source of tax to the government. I{ence, that tax must be borne by the consuming public through added direct or indirect taxes.

Obviously, the points indicated under the three main types of competition noted above are examples of the overall problems with which your National Retail Lumber Dealers Association is concerned. Your National also has indicated through its programs some of the major steps that may be taken to solve these competitive problems for this industry.

Under competitive factor No. 1, u'l.rich concerrls comPetition betrveen lumber yarcls and other building industry elements, certainly to meet competition u'ithin our o\\rn industry, rve need to overhaul our selling viervpoints ancl to check our sales personnel regarding their sales effrciency. To a customer, your company is the man behind the cour-rter, the driver behind the 'ivheel o{ your truck, or the t-nan calling at the door to deliver or sell. Your National, through your state and regional associations anrl through 18 major universities, has created and developed the finest training course yet developecl by indnstry. This corrrse is no'iv the model course for many industries. The 30-day Iumber dealer personnel short course ir-r leading universities ofiers every yard manager one of tl-re best nrethods of retooling his establishment for competition-by scn<1ing his key man to school for a 30-day l>rush-up course.

While the National's Educational I''rogram is effectivc for competition rvithin our own industry, it is absolutely an essential step to meet competition from the highly trained and skilled business organizations otltside of our industry. Certainly proper packaging of materials, proper displays, proper decoration of our shon'room.s, and exterior face-lifting of our yards is essential if n'e are to compete rvith the cosmetic displays in the drugstores, the automobile shorv rooms, the attractive posters of far-ofT vacation lands, and thc beautiful rnodels portraying the tlclights of cigarettes and rvhiskey. Yarcl modernization, a program u'hich has been carried on through vour Natiorral and state and regional associations for over 3 vears, is a rnajor step to meet tomorrow's demanrls-arrcl thorrsands of lumber yards are taking it. But the personnel 'n'ho greets tl-re new woman customer in the lumber vard must certainly compare favorably rvith the personnel of a drug store, grocery store, or gasoline station and certainly must be able to tur,derstand and discuss l-ris llares in terms of usc. The Educational Progrant is an essential part of this development if \\re are to keep pace n'ith the No. 2 type of competitors rvho are outside of our on'n inclustry.

Remember, everybodr. has a chance at the customer's dollar before you have as a seller of honrcs or materials for homes. Why? Because no other purchase costs as mucl.r in its dorvn-payment and therefore the hrimc buyer has tri save his dollars longer than he would to collect enough of them to buy anything else. It's certainly going to take some glorification to publicize homes building under these circumstances sufficiently to get men to save their clollars longer.

Never in thie history of this country has horle building been glorified to the extent that your National has promoted the Industry Engineered Home. Never has as large a segment of the building industry or as many elements of the building industry been behind a single endeavor to produce low-cost homes for the average American citizen.

In the PHOTOI'LAY Magazine-IE Home Contest there is every element of glamour that is possible to bring to bear upon private enterprise home building within tl-re American scene. PHOTOPLAY is linked rvith Hollywood fanfare and it has secured a galaxy o{ Hollyrvood star judges unmatched in public popularity to proclaim this IE House as the "Ideal Home for the American Way of Life."

Joan Crawford, Gregory Peck, Loretta Young, Shirley Temple, Claudette Colbert and Ntitch Leisen are the judges. Before this home is won and constrttcted, in all probability it rvill be told about and extolled over the radio l;y such persolrages as Louella Parsons, Jimmy Fiddler, and Jinx Falkenberg. Other radio programs and television rvill also be carrying this story.

Your National has prepared for every dealer everyrvhere tie-in materials such as radio shorts, advertising, publicity stories, illustrative mats, plans, bills of materials, truck banners, cards for rvindorv display-and all for the simple purpose of enabling every lumber dealer to say, in effect: "These stars, these radio celebrities, these Xlacfadden magazines reaching 6 million readers are telling about me and my industry, and mv IIi Home, rvhich you, Mr. Customer, can have built right here in your own town."

Without glamour of this kind and u,itltout continued effort at ptrblic relations and promotions of this type, it is hardly possible that this industry rvill be able to compete for the American dollar on the same level n'itl-r automobile salesmen. jewelry salesmen, drugstore salesuren, and others.

\\'hat's equally important is this: That competition from government sources (No. 3) can only be controlled by reaching the people with a dramatized story. Legislation r.vhich seems adverse to our industry stems only from' individuals and organizations rvho do not understand or who do not want to understand what our industry can do and is doing. Dramatic presentation of our story to the American people made continuously and effectively to all walks of life through your National is the only .rvay to avoicl unrvanted and unwise legislation. Focusing attention upon the construction of IE Homes and other homes in our own communities can whip the bugaboo of pultlic housing. fn fact, everything a dealer does to affect governntent competition (factor No. 3) n'ill also be eclually effective in combatting competition from factors No. 2 and No. l. These are some of the things that your National tl.rroush your federated state and regional associations is attempt_ ing to help you do in your on,n home torvn. It .u,-, pr.po.. and send you the amnrunition, but you are the only onc rvho can use it.

One method of dranratizing your story so that the peoplc of this country r,vrll not misunderstand the nriddleman is the radio program over 180 ABC Netn'ork staticins t,lrich your National arranged in cooperation rvith the U. S. Chamber of Commerce. This program, "A Peg for Dernocracy" as a part of the Chamber of Commerce "Let Freedom Ring" series told the story of lumber dealer activit,v in peace and war. Another such program is being scheduled for next Spring.

Through your National Affairs Comm,ittee many dealers are advised of just .ivhat is occurring in Washingtolt th:rl demands attention locallv, as \\rell as on the National scene. And closely related to this activity is the rvork of the public relations department, rvhich besides sending out marry releases to newspapers and magazines and radio commentators relative to this industry, its activities and interests -the public relations department also sends out a number. of folders (envelope stuffers) each year rvhich contain thc pertinent facts regarding this industry necessary to comlt:rt false beliefs about the industry.

Such Tolders are invariably rvritten so that they can bc used, re-copied as newspaper articles, and re-arrangecl as source material for ner,vspaper ads. The folders themselves can be sent in quantity to dealer's customers and to post office, box-holder, and rural mailing lists in the comnrunity. Unless these tools are used in the field, they lose the major part of their effectiveness. The use of such infornration is essential if lve are to successfully combat anrl control competition from government sources of all kinds.

The effect of the ERP upon material supply for homes and farm buildi'gs and commercial constructio' ca' l.rardlv be ascertained by anyone except those in the builcling iridustry and through its associations. The public must be informed as to rvhat it can expect uncler various circumstances of supply to Europe.

Stand-by controls and regulations are alurost inevital>le, r.vhether used or not. And the public mnst be informed as to horv these controls and regulations mav affcct local supply.

Congrctulcrtions

Mr. and Mrs. Donald R. philips, Jr. are the happy par_ ents of a baby boy, Randolph Robert, born recently at the Good Samaritan Hospital in Los Angeles. Don Jr. is u'ith the Lau,rence-Philips Lumber Co., Los Angeles.

It's as dead as prohibition. For beer cheaper to buy than to brew. easier and

Beer and custom milling have that much in common. We ought to know, for custom milling is our job. We do all types of quality mill work - surfacing, resawing, combed siding-whatever you need. We do it fast and well with the finest molders, matchers, resaws - all new, high speed machines. Duplicating our work in your own mill would come high. That's why we, as can save you time and money.

Carloads to be surfaced or run to pattern will be unloaded at our siding, milled and forwarded - fast. We will sort, grade and tally your random stock. Small lot orders for stock patterns get the same service as carloads. Overnight service on surfacing, if you're in a jam. Phone us for action.