NBitfDA illeetings Weigh Distribution Evils

-\ recorcl-breaking atterrclance of 537 persolls participaterl irr the seventh arrrrual convention of the National Building' Nlaterial Distribrrtors Association helcl in Chicago on Nt.rvenrber 10, 11. 12. The spectacrrlar 3.5ty', increase in attenrl:rnce ()ver tlre 1957 conr-ention u'as notecl b1. Presiclent T.,l Dorrghertr', u'1'ro attributecl the largest attenclance r,if an,r' NBIIDA conventic.rrr to the increzrserl ootimisnr of tlrc lvholesale rlistribrrtor in liis business rlrrring tlre forthconring oeriorl.

- Itecord :rtten(lirnce :rlso occurrecl :rt conrmittee r-neetings arrrl business sessions, rr hich resrrltecl iu a mrrch gre:rter recognitior.r of the problems confrontirrg the n'holesale distributor in the inrnrediate future.

At the brrsiness meeting helcl on Novernber 10. S. Il \ian Kirk, general nranager of NIJtrIDA, reportecl that 40 rreu' menrbers hacl been acceptecl in 195,3 ancl tliat it u'as hopecl sttfficiertt ad<litional applications n'oulcl be received at the annual conveltior.r to prlt NBNII)A menrbership over the 500-l'arelrorrse rrrark.

Van Kirk further stated that total sales of NBMDA members in 1958 would amount to over $800 million, which, in his opinion, clearly demonstrated the economic necessity of the wholesale distributor in the orderly distribution of building materials.

Officers arrrl clirectors electecl for 1959 rvere Don Knecht of Brrilcling trfaterial Distributors, Rapid City, S. D.-Presiclent; NI. C. Blackstock of Ltunber Srrpply & \\-arel-rouse Co.. Scattle. \\:ash.-Vice President, and James L. Nlills of Anroskeag Brrildirrg Prodncts, Inc. :rt X{arrchester, N. H. -Treasttrer. ])irectors choserr for three years include Ra1'nrond li. Hale,v. -Jr., Halel' \\'holesale Co.. Inc., Santa Barbara, Calif. Tlie entire program on Tuesclal', Novernber ll, u,as <levoterl to "'l-he Neu' Look" in wholesaling ancl includerl a parrel cliscrrssiorr. An a{ternoorr pzrnei w:rs on"'l'he Neu' Look in \\Iholesaling." Culminating the "\Iarrufactrrrers Da,r-" session, the NIINII)A Trade ltelations conrnrittee proposecl the follou'ing resolrrtior.rs for acloptiorr b1- the N li Nl D.\ rrrernbershil, : "IJe It ltesolved that NIINIDA zirrcl its menrbers, har-irrg in mind the e-rpancling number of colors ancl tvpes of asphalt shingles :rrrcl the irrcreasinglr- grar.e u,arehousing problenrs c:iusecl u'hrilesalers ancl clealcrs in handling the grou-ing variety- of such proclucts. ellcorlrage anct promote in everv l)roper way a simplificatiorr of the excessir-el1' broarl line, arrrl colors and types, of asphalt shingles that are being nr anrr{acture<l.

"Be It Further Ilesolved that NLIIiI).\ anrl its nrenrbers express tl-reir appreciation to those manufactrrrers that ha.''c forthrightll' state(l tl.reir sales policies rlefinirrg the role of rvholesalers in the clistribrrtion of their uro<lrrcts and lr.h<r liave publisherl complete lists of the wholesalers they have recognizecl :rs such anclf or are selling as u'holesalers, autl enc()rlrirge :rrrcl persuade in every prol)er u'ay othcr lnanrlfactrtrers to take sinrilar action.

"Ile It Further Resolvecl that NBllI)A :rrrtl its nrembers. being ever minclfrrl of the trarlitional role of u'holesalers irr the clistribrrtion of building nr:rterials arrcl yet a\vare of the ranll)ant trend towarcl recognition bv sonre malrrlfacturers of concerns as u'holesalers who are n()t performing a u'holesale f unctiorl, 11rge e:rch u.holesaler to ol)pose such l'risclassification in everv I)roper u'a1' arr<l be vigilant in taking aclr-atrt:rgc of every opportrrnity of nrakirrg such opposition knou'n to all sr.rppliers.

"lleIt l.-urther Resolve<l by NI]rVD.'\ and its menrbers that the suppliers of asphalt roolirg prodrrcts be commended ort tl'reir inclividrral efforts to clate tou.ards clefirrirrg the role of wholesalers in tire distribution of -*uch rrroclrrcts an<1 that e:rch nrember handling such proclrrcts be rrrgerl to take appropriate steps to c(x)perate withits supplier or srrltpliers in rr-raking sr-rch efforts successfrrl.

"Be It Further I{esolve<l tliat N}JIII);\ and its nrernber-* rrrge suppiiers, in every proper wa)', to incliviclualll- consicler and clevelop r,vays arrcl means of

( a) I,Iaking sl'rillments to u'holesaler or <1ealer n'arehouses ancl not to jobsites :

(b) Protecting r,r,holesalers :rg:rirrst price rlecline olt purchaserl stocks, an<1

( c ) lncreasing the rnitrimunr rveight of shiprnents to traditional ,ur,holesale clrrarrtities of full trrrckloacls arrd ftrll carl, rrLrls."

1'. J. Dotrghertl-, in relinrluishing his office as president of NllNll)A to I)on Knecht, stated that tu'o major objectives of NlrtN'l DA in 1959 should be (1) contirruecl ernphasis on the uational nranufactrrrer publicizing a list of his rvholesale clistribrltors, ancl 121 the rlelelopnreut of distribrrtor policy committees by the national manufacturer in order to secure better liaison and communications between these tlvo segments of the industry.

He said that distribution cannot rise above the practitioners including the manufacturers who participate. Thus the present distribution system can be improved by better performance on the part of all elements in the distribution chain.

Mr. Dougherty also stated that 80o/o of NBMDA member sales were to the retail lumber dealer and that, in his opinion, the traditional method of distribution would survive only as long as the wholesale distributor and the retail dealer proved of economic value to the manufacturer.

On Wednesday morning, November 12, ant optional meeting for memb,ers was held on "Idea Trading" at which top distributors discussed various methods of Merchandising, Sales Promotion, Advertising, and Warehousing.

, Don Knecht, in taking over as the new president of NB\4_DA, stated that increased emphasis would be placed in 1959 on developing local area diitributor meetingi-the possible development of a Canadian Chapter in NBMDAincreased recognition of the wholesale distributor at both the manufacturer and dealer level-and increased recogni- tion as to the services performed by the wholesale iistributor.

Wesf Coosf, Soufhwest Distributors Hold Stimuloting L. A. Session

wind up with l0% profit, it is necessary to aim f.or 20/o profit before taxes.

The complete program, which started at 10 the following: a.m., included Materials Co.,

Welcome-R. E. Freeman, So-Cal Building Los Angeles.

"What is NBMDA?"-S. M. Van Kirk, general manager, National Building Material Distributors Assn., Chicago.

"Do Building Material Distributors Need a National As. sociation?"-Don Knecht, Building Material Distributors, Rapid City, S. D.

"The Wholesale Distributor-Survival e1 guisids?"Panel Discussion. Moderator: W. G. Grieve, Building Mate-

One of the highlights of the NBMDA year was the recent second West Coast Conference of Building Material Distributors, held at the Ambassador hotel in Los Angeles, September 9. There was an excellent turnout, and a stimulating program was not only planned by NBMDA Treasurer R. E. "Dick" Freeman, of So-Cal Building Materials Co., but also genuinely and whole-heartedly participated in by the excellent attendance.

The Question-and-Answer period dealt almost entir.ely with ethical practices and legitimate channels of distribution, conflicting relationships of manufacturer and contractor, and encouragement of the retail lumber dealer as the proper outlet for building materials.

One of the most interesting talks was that by Paul R. Hollenbeck of Profit Planning Research, Inc., Burbank, who said the wholesaler must establish sound pricing. The price of every item sold, he pointed out, must be "Direct cost plus fndirect cost, plus Profit." IJnless prices are soundly figured, he said, the tendency is for them to go down, and many retailers have followed this tendency until they have lost 857o of their profit.

Hollenbeck said figuring an "average overhead" is a fiction and warned the distributors not to set prices for the retailer because it steals from him his abilitv to use his own yardstick to set a sound price. Emphasizing what many other industry leaders are now pointing out, Hollenbeck said prices must be set on a basis of return on investment, rather than on sales. His slide pictures illustrated that to rial Dist., Stockton, Calif. ; Panelists : Don Knecht; C. J. Mclver, Structural Materials Co., Montebello, Calif.; R. S. Eclmonston, Diamond W. Supply Co., Los Angeles, Calif.

"Dynamics of Selling"-Paul R. Hollenbeck, Profit Planning Research, Inc., Burbank, Calif.

Closing Remarks-President T. J. Dougherty, Ohio Valley Supply, Inc., Cincinnati, Ohio.

Those attending the Conference included:

Northern California

J. W. Welsh, C. P. E. Bresee Joe Rice

Welsh & Bresee Rice Supply, Inc.

Oakland, Calif. San Rafael. Calif.

W. G. Grieve Duncan Pell Building Material Distributors Davis Hardwood Co. Stockton, Calif. San Francisco, Calif.

Southern California

Raymond R. Haley, Jr. Fred Losch

Haley Wholesale Co. E. J. Stanton & Son

Santa Barbara, Calif. Los Angeles, Calif.

Charles J. Mclver Charles G. H:rrdy

Structural Materials Co. Charles G. Hardy, Inc. Montebello, Calif. Paramount, Calif.

Howard E. Scott C. H. Gleason

Scott Lumber & Shingle Co. Trim Products

Compton, Calif. Van Nuys, Calif.

Dave Glesby Richard E. Freeman

Glesby Building Material Co. So-Cal Bldg. Mtls. Co. Van Nuys, Calif. Los Angeles, Calif.

John L. Gerich W. O. Christian

Modern Materials Co. The Christian Co.

Los Angeles, Calif. Los Angeles, Calif.

Ted Cranford Russ Edmonston

Cranford Wholesale Co. Diamond W Surpply Co.

Colton, Calif. Los Angeles, Calif.

Fred S. Thomson, J. S. Sowers John D. Scouller

Inland Lurnber Co. So-Cal Bldg. Mtls. Co.

Bloomington, Calif. Los Angeles, Calif.

Paul K. Sink

Mason Supplies, Inc.

Los Angeles, Calif. Arizona

John

Phoenix,

Howard L. Haskin Haskin Distributing Corp. Tucson, Ariz.