1956 !

Porker Predicts frocf Decreose

Everett C. Parker, president of Patten-Blinn Lumber Co., Los Angeles, was quoted recently in Building News to the effect that there would not be so many housing tracts in 1956 as there were in 1955 and that over-all sales would be about like 1954. Parker is a past president of the Southern California Retail Lumber Assn.

"f think that most lumber dealers in Southern California have had a larger unit and dollar volume in 1955 than 1954," he said. "Prices on lumber have been 7l/o higher but this has been offset by a corresponding decrease in the yard buying price. Margins on sales have been very close all year. Operating costs have increased in 1955 over 1954; one item, for instance, being a 7fu/o increase in wages in July," he stated.

Growers Closed

Lemoore, Calif.Carl Kaspian of the Growers Lumber Co. closed the business in Cutler, Calif., December 1 and he will become owner January I of the Cutler Hardware Co. next door. Kaspian will also build a lumber shed on the lot. He said the new store will handle a complete line of building materials, including lumber, hardware, paint, roofing, etc. It will be known as the Cutler Hardware and Building Supply Co.

Some 70/o of all paint sales are made to the doit-yourself trade, according to government statistics for 1954.

How Do YOU Esrqblish qn Advontoge?

(Continued from Page 8) the minimum requirements set forth in Commercial Standards. Hardwood plywoodr-il5isefis a little more complicated situation. Unlike fir, hird,,ivood plywood id'made in many species, and manufacturedlin several countries. As a result, there is a variation.irl "quality," a-rril certainly a difference in terminology desigiating li.

We have a Commercial Standards,to coviildomestic plywood, but imported plywood is manufactured according to the practices of the country in whiehjt is made. This'places on the distributor the obliggtip$ fif interpreqng these gsedes and, to the best of his knbwlq$ge, ,plopeilf, 5"epr3g0d4ting the grades to the dealer. (Without fear of contradiction, I wish to state that there is a great need for an educational program on Hardwood Plywood, for the benefit of ALL of US.)

The possible "advantage" that can be developed with Quality should be quite evident. Consistent quality can seldom be maintained by a distributor or dealer who makes a practice of "re-grading" (for the purpose of selecting the panels above the specified quality) to gain a possible advantage with special accounts. (If I were the "buyer," f might wonder when I would get a supply of the "skimmed milk," and if I were the "seller," I would worry how I would dispose of the stock from which the "cream" had been removed.)

It seems that the plywood industry has had its share of price changes. Changes at the distributor level are usually caused by one of trvo things-a change at the manufacturer

Horoce level, affecting the cost to the Distributor-or a competitive condition in the local market.

Most firms feel they know their cost of doing business, and they also desire to make a fair profit on their operation. A change at the manufacturer level is usually reflected proportionately, whether up or down, at the distribution level.

If for any one of many reasons it seems advisable to lower a price at the distribution level, producing a gross profit that is not too healthy, you may be sure this will be changed upwards as soon as the situation permits.

Price changes can cause confusion, as well as financial losses in some cases. Published price lists usually carry this clause, "All prices listed are subject to change and/or withdrawal without notice," or some similar statement. This is necessary for the protection of the "seller." However, some business firms feel it is an advantage to the customer to maintain the "published price," if at all possible, until a new price list is actually "in the hands" of the customer. If you are a buyer, do you consider this as a worthy advantage ?

In an area the size of greater Los Angeles, "Delivery Service" is a major problem. Without elaborating, as a "seller" do you try to deliver stock to your customer when he wants or needs it? It is sometimes almost impossible, and also sometimes costly, to meet the delivery requirement. The degree of success in this might well determine the degree of advantage.

Plywood seldom improves in a storage warehouse, and each time it is handled there is the danger of damage. Im-