Build in Fire Protection ESR-2645 1-800-421-8661 For interior applications where fire retardant construction materials are specified or required by building codes. Testing and Approvals UL ® Class A (Class 1) with FR-S Rating Cal Fire -Building Materials Listing City of Los Angeles - Research Report: RR 24502 Building Code Compliant under ICC ESR-2645 Interior Type A High-Temperature (HT) FRTW Product Features Low-corrosivity & Low-hygroscopicity No VOC’s or Formaldehyde 50-Year Limited Warranty CALIFORNIA COLORADO WASHINGTON BRITISH COLUMBIA ALBERTA CANADA D-BLAZE FRTW SUPPLIERS WEST FRASER TREATED SALES Sundre, Alberta, CN 250-991-5324 www.westfraser.com SUPERIOR WOOD TREATING Sumner, WA 800-422-3120 www.superiorwoodtreating.com ALLWEATHER WOOD Loveland, CO 800-621-0991 www.allweatherwood.com THUNDERBOLT WOOD TREATING CO. INC Riverbank, CA 800-826-8709 www.thunderboltwoodtreating.com FONTANA WHOLESALE LUMBER Fontana, CA 909-350-1214 www.fontanawholesalelumber.com SERVING THE WESTERN UNITED STATES & CANADA DECKING: BETTER STORING, BETTER SELLING NAWLA WHOLESALERS SPECIAL ISSUE M A Y 2 0 1 3 The MERCHANT Magazine THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922
Transcript
Build in Fire Protection
ESR-2645
1-800-421-8661
For interior applications where fire retardant construction materials are specified or required by building codes.
Testing and Approvals UL® Class A (Class 1) with FR-S RatingCal Fire - Building Materials Listing City of Los Angeles - Research Report: RR 24502 Building Code Compliant under ICC ESR-2645Interior Type A High-Temperature (HT) FRTW
Product FeaturesLow-corrosivity & Low-hygroscopicity No VOC’s or Formaldehyde50-Year Limited Warranty
Challenge 2: The competitor’s extruded board features an embossed repeating pattern on the surface of the board. EverGrain’s compression molded process creates a grain with dramatic and lasting beauty.
Compare EverGrain’s beauty side-by-side vs. the appearance of the leading competitor and see the difference it makes for your customers.
Challenge 1: Random Look
Challenge 1: First, notice how the leading competitor’s pattern repeats every 37-3/8 inches—that’s the same grain pattern repeated fi ve times on a single 16-foot board. But EverGrain creates a random pattern that never repeats across the entire board for a more natural wood look.
Challenge 3: Finally, compare limited warranties. EverGrain offers a 20-year commercial Limited Warranty and covers both materials and labor for the fi rst 5 years of the Limited Warranty.**
EVERGRAIN® ENVISION®
LEADING COMPETITOR
PATTERN REPEATS EVERY 37-3/8"
PATTERN NEVER REPEATS ACROSS ENTIRE BOARD
To learn more about EverGrain, visit EverGrainChallenge.com.
nvisionEnvisionE rainE Gver rainE Gver
Bonded Composite Decking
4 The Merchant Magazine May 2013 Building-Products.com
May 2013Volume 91 Number 11
OnlineBREAKING INDUSTRY NEWS, INDUSTRY EVENT PHOTODOWNLOADS, & DIGITALEDITION OF THE MERCHANT
BUILDING-PRODUCTS.COM
The MERCHANT Magazine
CHANGE OF ADDRESS Send address label fromrecent issue, new address, and 9-digit zip to addressbelow. POSTMASTER Send address changes to TheMerchant Magazine, 4500 Campus Dr., Ste. 480,Newport Beach, Ca. 92660-1872.The Merchant Magazine (ISSN 7399723) (USPS 796-560) is published monthly at 4500 Campus Dr., Ste.480, Newport Beach, Ca. 92660-1872 by CutlerPublishing, Inc. Periodicals Postage paid at NewportBeach, Ca., and additional post offices. It is an inde-pendently-owned publication for the retail, wholesaleand distribution levels of the lumber and building prod-ucts markets in 13 western states. Copyright®2013 byCutler Publishing, Inc. Cover and entire contents arefully protected and must not be reproduced in anymanner without written permission. All RightsReserved. It reserves the right to accept or reject anyeditorial or advertising matter, and assumes no liabilityfor materials furnished to it.
Special Features9 INDUSTRY TRENDS
BUYERS SEEK “TRUTH IN DECKING”
10 FEATURE STORYCOMPOSITES FOR MORE THAN DECKS
12 MARGIN BUILDERSIMPROVE YOUR STORAGE & HANDLINGOF DECKING
14 PRODUCT SPOTLIGHTCOMPOSITE DECKING BENEFITS FROMADVANCES IN EUROPEAN TECHNOLOGY
32 SPECIAL SECTION: NAWLATIPS FOR WHOLESALERS ON SALES, NETWORKING, CREDIT, EDUCATION
56 PHOTO RECAPWEST COAST DEALERS’ GOLF
In Every Issue6 TOTALLY RANDOM
16 COMPETITIVE INTELLIGENCE
18 OLSEN ON SALES
26 MOVERS & SHAKERS
29 APP WATCH
31 IN MEMORIAM
48 FAMILY BUSINESS
50 MASTERING LEADERSHIP
52 NEW PRODUCTS
59 ASSOCIATION UPDATE
60 CLASSIFIED MARKETPLACE
61 DATE BOOK
62 IDEA FILE
62 ADVERTISERS INDEX
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6 The Merchant Magazine May 2013 Building-Products.com
Flip-flops aren’t just for politiciansIT WAS JUST announced that the c.e.o. of J.C. Penney is out. Nothing unusual per-
haps, except that it highlights how wrong decisions can cause the downfall of thebest managers. It also shows that if you must flip-flop, do it and do it fast!
First, some background: I haven’t been in a J.C. Penney for some time, mostlybecause the stores have seemed 20 years out of date compared to Macy’s,Bloomingdale’s, and others. In my rare visit, the merchandise mix seemed unfash-ionable and the stores were unappealing. They lacked any real identity.
After years of mismanagement, a new hot-shot c.e.o. was brought in from Appleand, as is usual when new managers come in, radical surgery took place. The prob-lem was what may work in an Apple Store may not work in a JCP. And in the want-it-now environment of Wall Street and instantaneous performance, even if the newplan could work, it almost certainly is not likely to be given the time to succeed.
The problem is, when I heard of the new plan about 16 months ago, my firstinclination was that it was never going to work. The turnaround strategy of movingto new and perhaps younger brands to attract younger shoppers, while making somesense (indeed, some results suggested it was slowly working), was too slatedtowards shoppers who do not go to JCP and instead alienated current shoppers,leading to massive losses and a large drop in revenue. Wholesale shifts are alwaysrisky and, in this case, wrong. But that was only part of the change. The largest shiftin strategy was to get rid of sales events and move to everyday low prices. A horri-ble decision!
If you train your customers to expect end-of-week sales each and every week andthey continue to see advertising from every other competitor while you cut your adbudget substantially, then over time you get what you deserve. If you read that atMacy’s that shirt you need has been discounted from $49.95 to $24.95 (and addi-tional discounts will bring it down to $16.95), then you are not going to check outwhat JCP has, even though JCP may price the shirt every day at $19.95. We aretrained to go to the store advertising the big sale price. Out of sight, out of mind!We all want a “sale” and to announce them, we all need to advertise them.
Experience is making mistakes and learning from them. If you manage the num-bers, it soon becomes clear what is working and what is not. I do not care who it is(including myself), we have all made wrong business decisions (which is why thereare so many corporate management changes). The real failure is not to admit awrong decision and make a change. If you need to flip-flop, do it! Don’t make amistake that everyone knows is a mistake and stick with it because of pride or toavoid looking weak. In fact, I would argue that it makes you weak to not adjust astarget numbers and dates come and go and results are not happening.
The worst mistake you can make is to alienate your regular customers. Yet weoften don’t look two or three steps ahead to see how our decisions affect others.Fortunately, the public can be somewhat forgiving. Coca-Cola’s turnaround follow-ing its disastrous formula change about 25 years agoprovides a great lesson about flip-flops for businessschools today. Possibly the biggest marketing fiascoof all time (turning a beloved product into one currentcustomers hated) was defused after long and loud meaculpas from executive management, aggressive adver-tising, and a PR campaign that boosted the stock price70% in six months. So the moral is, when you arewrong, admit it and make changes fast.
Lastly, as we hit the second quarter, theyear has started well by all accounts, butsupply has its issues and it will be inter-esting to see how the industry handlesthis challenge and the higher prices thatwill result.
Building-Products.com May 2013 The Merchant Magazine 9
LBM industry pursues“truth in decking”
code required performance data on a label of sorts so Mr.and Mrs. Jones could make an informed decision abouttheir decking purchase.
The NADRA Consumer Product Awareness Charter(CPAC) was formed to create the consumer guide for thedeck and rail industry. Goal one is to gather informationabout what all of the leading manufacturers are using to
test products and try to estab-lish standard equipment andcalibration.
Goal two is to identify fiveareas of consumer concernand develop tests for thoseareas, such as the solar heatgain co-efficient on the boardsurface.
Finally, this data would bepublished, along with the ICCor equivalent code approval
on a label that should accompany an information packet, soconsumers can quickly determine how products compare toeach other. Similar programs include the NFRC windowlabel or the familiar energy guide found on refrigeratorsand other appliances.
This program will benefit everyone in the supply chain,from the manufacturer down. The best part is the compara-tive value it brings to the in-home sale process. NADRAcontractors can be educated on the system and how toshare the program with their prospects, giving them advan-tage over contractors who do not. The same applies fordealers and distributors alike.
The future of the decking business is going to be basedon statistics of performance and quality of products.Streamlining the delivery of stats will help propel deck andrail upward in the LBM industry.
With the CPAC program in the development stage ofestablishing standards, now is the time for manufacturers,dealers and contractors alike to get involved and steer theindustry in the right direction.
– For over 12 years, David Elenbaum has worked in the LBMindustry in the retail, wholesale and contractor fields. He ownsSpecialty LBM Holdings of S.C., LLC, a company engaged incontracting, retail and liquidation of building materials. Reachhim at [email protected].
SINCE ITS INCEPTION, composite lumber—specificallydecking—has undergone a terrific number of ups and
downs. There have been failures from a structural stand-point, mold and mildew, grammar mishaps (such as callingthe products “maintenance free”), and more.
The class action arena has been lucrative for lawyers, tosay the least. But why? I like to think that some of theproblems were becausesome clown made apoor product, somewere because there wasno regulation on whatwas being produced,and some of it is fromgood people making agood product that wassold as a perfect prod-uct, which doesn’t exist.
After 20-plus years,the product group has certainly transformed to overcomethese “growing pains,” as I like to call them. That’s goodnews. The surviving brands have gotten better at spreadingthe word of the incredible quality of their products.
But what about disclosing their limitations? How doesone even know the limitations of a piece of plastic that is amixture of so many chemicals, polymer compounds,organic and non-organic fillers, and other “proprietarymixtures”? Can we take the salesman’s word for it?Perhaps we can read the MSDS sheet, do some onlineresearch, or maybe look for ICC or CCRR approval. I, forone, being a reasonably educated member of the industry,do in fact look for all three.
Salespeople know their products, which are likely madeby a reputable company and have the appropriate codeapproval (or it’s pending). But what if you are a homeown-er, or a contractor who just can’t focus the time and energyon learning if the one board your client picked out is apiece of gold or the opposite? You sure can’t believe whatyou read on the Internet, despite what they say on TV.
So, a couple of years ago, a few of us at the NorthAmerican Deck & Railing Association (NADRA) gottogether and decided that some kind of “truth in decking”disclosure would be kind of neat. It could establish stan-dardized testing protocols for the industry, so the scoresfrom the tests could be evaluated on a level playing field,and then the results could be published along with non-
INDUSTRY TrendsBy David Elenbaum
ONE OF THE HOTTEST trends in out-door remodeling is the creative
use of traditional composite decking.More and more people, professionalsand consumers alike, are finding sur-prising, entirely new applications forcomposite decking materials. With alittle creative flair, composite deckingprovides an alternative to wood withthe added benefits of more durabilityand lower maintenance requirements.
Whether it is a contractor or a d-i-yer, people are discovering that com-posite decking isn’t limited to decksany longer—it’s a building material.It’s a highly adaptable building mater-ial that’s being used almost anywhereyou would traditionally find wood,with the exception of structural usesfor which composite materials are notdesigned. A few of the items we’veseen built with composite deckingmaterials include beautiful benches,near-impervious planters, picture-per-fect pergolas, fabulous fencing andoutstanding outdoor kitchen cabinets.
With today’s composites emulatingexotic hardwoods, expanding the useof composite materials beyond thedeck surface can create a beautifulaesthetic in outdoor living areas that
Composite deckingisn’t only for decks
FEATURE StoryBy Edie Kello Wilson, Fiberon
All p
hoto
s cou
rtesy
Fibe
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PLANTERS & BENCHES
Building-Products.com May 2013 The Merchant Magazine 11
keeps its good looks. Wood-like, con-temporary appearances and a varietyof colors in modern composite deck-ing products deliver artistic flexibilityin outdoor living areas, relaxationspaces, hardscapes and landscapes.There are even instances in Europewhere it’s used as siding on houses,boardwalks by the sea, privacy fenc-ing and office cubicles!
Custom deck builders are in anideal position to explore new ways toutilize composite materials. This isespecially true as, according to arecent Freedonia Group study, U.S.demand for decking is expected to rise2.4% annually through 2016 to 3.3 bil-lion lineal ft., worth $5.7 billion.
The versatility of composite deck-ing makes it the perfect medium tosatisfy the creative imaginings of arti-san deck builders and their customers.And, custom decks buyers are general-ly willing to pay a premium price for adeck designed with their style andneeds in mind.
Professional deck builders can usecomposite decking to differentiatethemselves by creating beautiful aswell as practical outdoor living spacesthat have all the benefits of compositedecking: durability, lower-mainte-nance, and stain, mold and termiteresistance. When it comes to intricatestructures such as pergolas, benches orfencing, where periodic staining isrequired, composite decking is a wel-come relief to time-consuming, back-breaking labor.
D-i-yers can show off their build-ing expertise by creating works of artthat far exceed boxy decks. The sim-ple addition of a few benches, somelatticework for privacy, or sturdy yetelegant planters can elevate a deck tonearly professional quality. Other pop-ular projects include replacing stairtreads, building a sandbox, or creatinga raised herbal bed. The value, ease ofinstallation, and low-maintenancerequirements for composite deckingmake it ideal for projects such asthese.
Whether your customer is a profes-sional deck builder or an ambitious d-i-yer, opening their eyes to the possi-bilities of designing with compositedecking will inspire them to createunique outdoor living spaces that willbe enjoyed for years to come.
– Edie Kello Wilson is director of mar-keting communications for composite-decking manufacturer Fiberon, NewLondon, N.C. She can be reached at (704)463-2971 or [email protected].
POOLSIDE FENCING
BENCHES & STRUCTURE
BOARDWALK
12 The Merchant Magazine May 2013 Building-Products.com
Best practices forstoring andhandling decking
• Keep it covered. All deckingwill fade over time with exposure tothe sun. Keep planks covered in theyard and on the jobsite to avoid pre-mature fading or, worse, unevenweathering across multiple planks.
For example, when TAMKO shipsits planks, the pieces are stacked facedown, except for the bottom piece,says Bill Koll, TAMKO’s territorymanager in Portland, Or. This way, ifthe stack loses its protective bonnet,the underside is the side exposed.
• Keep it clean. Decking that’s dryand debris-free will stay lookingnewer, longer. When storing, keepplanks covered and off the ground sothat they stay clean and free of mois-ture.
• Don’t abuse it. Exterior productor no, decking is still a finished prod-uct and should be treated as such,Koll notes. In other words, don’t dragthe top side along the driveway or runthe forklift into it. Like any otherbuilding material, mishandling canlead to chips, gouges or damage ifimpacted hard enough.
• Support long planks. To avoidflexing, particularly when the weatheris warm, decking stored on racksneeds to be supported. Check with themanufacturer for recommendations.
• Practice good forklift tech-niques. Avoid carrying materialsagainst the very back of the lift; a few
DECKING PRODUCTS are made towithstand the rigors of the out-
doors. But no matter the material, it’sstill important to handle deckingplanks with care—from the lumber-yard to the delivery truck to the job-site.
Follow these storage and handlingstrategies to ensure decking plankslook their best when it comes time to
install:
• Follow guidelines. As with anyproduct, be sure to follow the manu-facturer’s specific recommendationsfor proper storage and handling ofyour decking materials. Especiallywhen it comes to composites andother non-wood products, require-ments may vary from brand to brand.
MARGIN BuildersBy Jacqueline Palazzolo, Weyehaeuser Distribution
KEEP DECKING covered during storage, and follow manufacturer recommendations for supports toensure planks don’t flex.
Building-Products.com May 2013 The Merchant Magazine 13
inches off of the back should helpprevent damage. Use caution whenmaneuvering around stacks to avoidstriking the material.
• Monitor temperature. Likemost building materials, compositedecking will expand and contract withtemperature fluctuations.
If your company does installedsales, make sure your contractors arekeeping an eye on temperature. Theyshould measure the temperaturewhere the planks are being stored andthen consult installation instructionsfor the proper gap to ensure there isroom for movement.
• Handle with help. Long boardsare heavy and may flex more inwarmer temperatures, so carryingplanks should be a two-person job.
When planning your inventory, besure to add on complementary prod-ucts such as coordinating accessories,matching railings, matching face fas-teners, and the manufacturer’sapproved hidden fastening system.This will ensure products are compat-ible and coordinated and that they canbe installed per manufacturer recom-mendations.
Overall, common sense prevails—decking doesn’t require you to tiptoe,but just be conscious not to abuse it.And, as with any product, always fol-low manufacturer instructions andguidelines from storage to handling toinstallation to ensure optimal perfor-mance and intact warranties.
– Jacqueline Palazzolo is dealer salesrepresentative for Weyerhaeuser, based inEugene, Or. For more decking how-toarticles, download Weyerhaeuser’sDecking Sales Kit at www.woodbywy.com/decktools.
New Deck Safety VideoAfter seven years of promoting
May as Deck Safety Month, theNorth American Deck & Rail ingAssociation has produced a videothat it hopes will reach more of thoseinvolved with deck building and main-tenance.
The video can be found onNADRA’s website at www.nadra.org,on the association’s YouTube chan-nel, and various social media net-works. It was produced using imagesand text about the association’s 10-point checklist and its Check YourDeck evaluation forms.
14 The Merchant Magazine May 2013 Building-Products.com
Composite deckingbenefits fromEuro breakthroughs
along with their potential impact for NyloDeck:
1. Shared knowledge is helping manufacturers addressproduction holistically to identify individual opportunitiesfor greater sustainability.
“By learning from other companies’ and industries’ bestpractices, we’re looking at how a single step in our produc-tion line can either be removed or combined, without sacri-ficing any quality. That one change can add up to signifi-cant energy efficiency, which contributes to improved sus-tainability.”
2. Coatings, which are considered more environmen-tally friendly, are becoming increasingly prevalent forbuilding materials, without compromising durability.
“We currently use an advanced flexible, yet incrediblydurable coating, which provides superior UV protectionthat enables us to offer a 25-year fade and stain warrantyon top of our 25-year limited residential warranty.However, we continue to work with our coating partners toidentify the latest proven technologies that are both envi-ronmentally friendly and highly effective against UV expo-sure.”
3. IR (infrared reflective) coatings have the potential toenhance the properties of decking materials.
“IR reflective coatings can create cooler surface temper-atures by efficiently reflecting near-infrared rays of sun-light. This is an exciting advancement not only in the coat-ings industry, but in the decking industry as well, becausethis may lead to decks that stay cooler to the touch, even inthe heat of the summer.”
4. Advancements in weather testing equipment aredelivering even higher levels of confidence in product per-formance.
“By using the most sophisticated weathering testing andequipment, both internally and with third-party labs, weare able to accelerate weathering conditions faster and withmore quality control than ever before.”
GLOBAL ADVANCEMENTS in materials and manufacturingfeatured at the 2013 European Coatings Show &
Congress are finding their way to the latest compositedecking materials, according to Dr. Shae Brown, seniorchemist at NyloBoard, Covington, Ga., who recentlyattended the show in Nuremburg, Germany.
Many European product and manufacturing advance-ments have been borne out of a need to innovate in themidst of stringent environmental regulations, coupled witha desire to achieve greater sustainability. Brown said thissetting offers excellent opportunities for U.S. companies toproactively address product development in the context ofincreasing concerns over similar issues domestically.
Brown recounts top trends and insights from the show,
PRODUCT SpotlightComposite Decking
U.S.-PRODUCED composite decking products, such as NyloDeck, arebecoming more durable, weather resistant, better performing, and moresustainable, thanks to new technology from Europe.
Photo by NyloBoard
Endeck—where beauty and strength come together. Isn’t that what customers are really looking for—a gorgeous deck that can endure the punishment of time? Endeck capped cellular PVC decking is slip-resistant, impervious to stains and scratches, plus it stands up to the daily torture from pets, kids, and guests who drag heavy deck furniture from one end to the other.
Endeck is covered by a Limited Warranty and comes in six colors—three monochromatic and three variegated—with fascia to match or contrast. You’ll need railing, of course—and Enrail® is the perfect complement to Endeck.
888-329-7428 | www.endeck.com
thick skin. strong core. any environment.
Hard capstock shell protects your deckboard on all 4 sides. 100% Cellular core with no voids adds strength.
16 The Merchant Magazine May 2013 Building-Products.com
Preserve the past,build the future
TAKING OVER the century-old H.E. Westerman Lumber Co. (top),Generation Home & Building Center needed to appeal to the next gener-ation of home improvement shoppers.
money, they took over the yard that had stood vacant forclose to two years. After all, declares Lori, “Lonsdale is thebest place in the world to live, so we wanted to add to whatthis wonderful small town already has—add a lumberyardto the mix: One more place to stop,” she preaches.
Okay, they’re dreamers, but they’re not dumb. Fordecades the Stanglers have operated R&L WoodworkingCo., three miles away, fabricating cabinets and commercialshowcases for retail operations such as luggage, shoe andjewelry stores, and, since the 1990s, concentrating almostexclusively on supplying Olive Garden restaurants nation-wide. “We’re their go-to vendors,” Lori explains. “Exceptfor their tables and chairs, if it’s wood, we supply it,” aidedby a staff of 31.
R&L is doing well—and by doing well, it’s helped sup-ply the cash flow for doing good (and soon enough, doingwell) at the new building center, too. “When that lumber-yard went out of business, we could see the town feel thepinch. It took time, but we got our ducks in a row” andsigned the papers.
The new building center’s name, Generation Home &Building Center, doubles as a mission statement. Its tagline,says Randy, is “‘to preserve the past and build the future.’To transcend time.”
But the first hurdle was to transcend the outdated build-ing. “It’s totally different now from what it used to be,” thecouple explains. “We’ve increased the size of the store anddoubled the retail.” And while the former operation primar-ily served contractors, the new outfit favors d-i-yers,because, the owners figure, “the town is growing; morepeople are looking to live here” in the bedroom communityhalf an hour south of the Twin Cities and neighboringNorthfield, home of two elite college campuses, Carletonand St. Olaf. “When people would walk into the old place,they’d feel like strangers. We wanted it to be customer-friendly.”
And ultra-friendly to what their research indicated wasnow a building center’s best customer: women. “They’redoing more and more of the purchasing, so we made it lightand bright. The whole layout is very accommodating. Weadded a home décor section and hired an interior designer,who’s doing really, really well for us. She offers a lot of
COMPETITIVE IntelligenceBy Carla Waldemar
“A LUMBERYARD IS A STAPLE of a community and can-not disappear.” That’s Lori Stangler talking. So
when the outdated, decaying, 128-year-old yard in theirhometown of Lonsdale, Mn. (pop. 5,000), finally called itquits—well, what’s a person gonna do? You buy it, right?
Maybe not, if you’ve got all your faculties and have yetto win the lottery. Yet, that’s what Lori and her husband,Randy, aimed to do. Never mind they had not one iota ofretail expertise between them. After month followingmonth putting together a business plan and scouring for
Building-Products.com May 2013 The Merchant Magazine 17
EVEN WITH a spiffy remodel, lumber remained the yard’s main focus,receiving covered storage and an infusion of high-grade inventory.
expertise in everything from paint colors to kitchen layout,”or what Randy ticks off, with a smile on his face, as “tech-nical things only another woman can do.”
She’s but one of the store’s rookie staff of 14, includingfour part-timers, only one of whom was involved in theprevious operation. “We hired for attitude rather than expe-rience,” attests Lori—“something you can’t teach.” Andvendors step in to amp up the product knowledge.Altogether, the Stanglers agree, “We’ve established a goodbase, with good service, good product knowledge, andquality merchandise.”
Contractors, having formed alternative relationshipswhile the store stood vacant, are starting to trickle back.Generation last year supplied a couple of new customhomes and remodeling projects, such as roof replacements.To lure these pros (and the weekend warriors stand to prof-it, too), the store now boasts a new rental center, savingfolks a 20-mile hike on the highway. “In town, there wasnothing but a rug shampooer. We’ve added constructionequipment, like an air compressor and Bobcat.” Quite aninvestment, then? Allows Randy, with a long intake ofbreath, “Ohhhhhhh… yes!”
Above all, however, “lumber is my main focus,” hemaintains. “Previously it stood outside, under the snow.Now, it’s under a roof. No more warped boards. I also optfor the highest-quality lumber, thinking, ‘If you’re invest-ing in a house, it’s worth just a little bit more.”
That’s Lori’s view, too: “Sell the dream, not the prod-uct,” she emphasizes. “Inspire customers to make theirhome a place to be proud of. Introduce them to the possibil-ities, so they won’t just settle for the cheapest.” And theroute to their purse strings? Voila, the Internet.
Research also schooled them that the Web is wherewomen, in particular, do their major shopping, so theStanglers lassoed their tech-wizard daughter into designingand maintaining their website, which is educational andinformative, but not in the ho-hum way that usually followsthose boring adjectives. “You’ve got to make it entertain-ing,” Lori knows—“like those [legendary] Peterman
Company ads.” Thus, the zippy site offers everything from tips on tree
pruning and info on lumber stamps (“What do theymean?”) to a motivational call to “Caulk the tub! Just doit!” with step-by-step photos, on to an “organizing spree,”providing tips to gain the “minimalist mentality.” Take alook yourself at www.generationhbc.com. Facebook andTwitter, too.
All of those technologies also promote the rental center,prodding “You can do it!” rather than have it done. (Ofcourse, for those jobs just too daunting for a homeowner,Generation hands out the business cards of its trusted con-tractor customers rather than install, in order to build loyal-ties and refrain from becoming competition.)
The website boosts another innovative customer lure:the children’s Carpentry Club. The win-win promotionworks like this: Generation sponsors a birdfeeder-makingcontest, requiring purchase of a kit (however, all completedentries receive a refund in the guise of a $10 gift certifi-cate). The motive, Randy spells out, is to get kids involvedand interested in the trades, growing future customers,while at the same moment, “letting parents know we’rehere.” Plus, as their research indicates, offer that $10 giftcertificate and when they’re back in the store with it, they’llspend twice as much. To promote the contest, Generationhas distributed flyers to area schools and posted info viaTwitter and Facebook (of course).
Staff—those newbies—get lots of vendor training,including trips to Marvin’s Northern Minnesota manufac-turing plant so they can walk the talk. But they’re alsoschooled in add-on and suggestive-sell techniques to aug-ment the bottom line and alert customers to the one-stop-shopping savings of time and stress that Generation offers(especially to those who exclaim, “We didn’t even knowyou were here!”)
Still, it’s not a walk in the park. As first-timers, thelearning curve has had its steep moments. “Being in retailis totally different,” Randy says upfront, “especially book-keeping. And I’ve adjusted my product mix, location anddisplays based on what I hear customers telling me, espe-cially in the rental center.”
Competition is a way of life, primarily from boxes sta-tioned along the Interstate commute. There’s also a hard-ware store in town, but Randy makes it a point of honor notto infringe on its turf. “I don’t want to hurt anybody, orduplicate, so we won’t carry any lawnmowers or smallappliances. I send customers his way. I don’t want to driveanyone out of business,” says his neighbor. “Besides, it’sbuilding critical mass [in shoppers’ eyes].
The Stanglers look to break even in two years. In themeantime, cash flow from the couple’sother business helps smooth thebumps. (“We’re our own best cus-tomers,” they laugh.) They’re in itfor the long haul and they love thejourney, actively working to bur-nish their credo. If Lori’s right and“Lonsdale is the best place inthe world to live,” it’s in partbecause of Generation and itscommitment to small-townlife and values.
18 The Merchant Magazine May 2013 Building-Products.com
tion to I.Q. is that raw intelligence isimportant, but only so much. How tonavigate the emotional world we live inis more important to success and happi-ness.
Goleman’s E.Q. core competencies:• Self-awareness – How do others
perceive me? Am I aware of mymotivations?
• Self-regulation – Can I control myreactions/emotions?
• Social skill – How do I relate toothers? Can I move them to action?
• Empathy – Do I understand howothers feel? At all times?
• Motivation – Can I stay motivated?Emotional Intelligence and How to
Win Friends and Influence People (Carnegie) reach thesame conclusion: Being smart is fine, but getting alongwith people is the most important factor in our success—especially in sales!
A.Q. What do we do when they say no? What do wedo when we have a bad year? Month? Day? Call? Each ofthese are a test of our Adversity Quotient, originated by Dr.Paul Stoltz. How hard and how many times can we take ahit and keep on coming?
Adversity Quotient is the defining measurement. Arethere certain personality types that are better for sales?There are master sellers of all personalities. What they havein common is resiliency (A.Q.) and a will towin/succeed/be the best/prove something to themselves andthe world.
All master sellers reinvent themselves several times intheir career. It feels like turning your-self inside out and shedding skin atthe same time. It is necessary, but ithurts. The difference between thejourneyman and the master seller ishow they react when they:
• Lose an order• Lose a contract• Lose a customerThe master seller’s lifetime
challenge is to work on our per-sonal mix of I.Q./E.Q./A.Q.
WHAT’S IT TAKE to be a great sales-person? Am I smart enough? Can I
deal with people in a profitable way?Am I tough enough?
Many factors/traits make up the suc-cessful salesperson. There is no classicmodel. The greats come in all shapes,sizes, colors, intelligence and likeabilitylevels.
Toughness is the underlying factor forsuccess in sales. What do you do whensomeone kicks you in the shins—orsomewhere more sensitive? How longcan you hang in there? My friend JimDermody says, “Sales is a mental tough-ness game.” I agree. So many intelligent,charismatic salespeople fail. Just as com-mon is the hard-working salesperson who can’t sell a stick.
It takes an amalgam of attributes and skills to make agreat salesperson. Here are three—The Sales Q’s.
I.Q. Intelligenz-Quotient, introduced by German psy-chologist William Stern (1871-1933), has become the mostcommon test in the U.S. for measuring intelligence. Ninetypercent of us have an I.Q. that falls between 70 and 130.
Most smart people overvalue intelligence. Smart peopleshould listen more. Research shows that a certain amountof intelligence is necessary, but after that, the advantage ofintelligence is negligible.
Mistakes smart sellers make:Overvalue product or market knowledge. Especially
in B2B sales, your competitors and customers know asmuch as you do. Just because you can talk product andmarket does not mean you will get the order. Intelligentsellers must use their intelligence to understand theircustomer as well as their product. Intelligent sales strategyis more important than product knowledge.
Pontificate. Use your smarts to make the customer looksmart, not to make yourself look smart. Do not instructyour customer. Ask them questions that lead them. Listen.Listen. Listen.
Underestimate others’ intelligence. Perilous and costly.Intelligence directed at creative problem solving, margin
creation, or solutions creates lifelong customers. But what if you’re not that smart? Tell me who your
friends are and I’ll tell you who you are. Align yourselfwith intelligent leaders/sellers you trust.
E.Q. Daniel Goleman wrote Emotional Intelligence in1985. E.Q. (Emotional Intelligence Quotient) measures ourability to relate to others. The main argument made in rela-
The Sales Q’s
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20 The Merchant Magazine May 2013 Building-Products.com
DEALER Briefs
Rough & Ready Lumber closed its90-year-old mill in Cave Junction,Or., last month. The company’s kilnand shipping operations are expectedto close by late May.
“We deeply regret having to closethe family lumber business that my
grandparents founded in 1922,” saidc.e.o. and co-owner Jennifer Phillippi.
The company had considered a $2million upgrade, slated to begin in2014, but couldn’t overcome prob-lems with obtaining a sufficient sup-ply of logs.
“We can’t justify the cost with aninadequate, unpredictable log supplysupporting only one shift,” saidPhillippi.
The Phillippi and Krauss familieswill continue managing PerpetuaForest Co., which sells timber from itsprivate forestlands to other mills.
Hayward Buys Bay Area YardHayward Corp., Monterey, Ca.,
expanded its presence in the Bay Areawith its acquisition of T&H BuildingSupply, Redwood City, Ca.
“T&H Building Supply will giveHayward a platform to offer its com-plete line of building products to newand existing customers in the BayArea,” said president, c.e.o., and chiefsustainability officer William E.Hayward. “It will dovetail with ournewest Design Center in MenloPark.”
Hayward, in business since 1919,has six lumberyards in Monterey, SanLuis Obispo, and Santa Barbara coun-ties, as well as six Hayward DesignCenters, and a truss manufacturingfacility (Hayward Building Systems)
Rough & Ready Shuts Down after 90 Years
Mendocino Redwood Strikes Logging Deal
Orchard Supply Hardwarehas opened two stores in the Portland,Or., area—its first locations outsideCalifornia.
The 41,000-sq. ft. stores with12,000-sq. ft. garden centers inBeaverton (Mike Wickstrom, storemgr.) and Tigard, Or., opened April 27,bringing the chain to 91 units.
OSH also held a May 4 grand open-ing in Yorba Linda, Ca. (RichardPenticoff, store mgr.).
Ace Hardware opened a 10,386-sq. ft. store in Green Valley, Az., April 5(Mark Hoffman, owner/store mgr.).
Workbench True ValueHardware, Castro Valley, Ca., willopen store #4 Aug. 1 in Pleasanton,Ca.
Parkrose Ace Hardware ,Portland, Or., held a grand re-openingcelebration last month to show off its$500,000 remodel.
Astoria Builders Supply’sformer yard in Astoria, Or.—shutteredsince September—has been acquiredby the neighboring Columbia RiverMaritime Museum.
Builder’s Choice, Anchorage,Ak., has joined LumbermensMerchandising Corp., Wayne,Pa. The buying group now has mem-bers in all 50 states.
Habitat for Humanity ofUtah County opened its secondReStore home improvement outletApril 25 in Spanish Fork, Ut.—the sixthanniversary of its Orem, Ut., store.
in Santa Maria, Ca. The new acquisition will offer a
full-service lumberyard, roof trusses,Hayward Fast Floor, and ZehnderComfosystem, a whole house air man-agement system distributed exclusive-ly in California by Hayward Corp.
“Hayward will give T & H addi-tional resources to offer more prod-ucts and even better values to ourexisting customer base,” said Carol(Hodgson) Ebner, president and c.e.o.of T&H Building Supply, who willstay on.
OSH Gets Delay from LendersOrchard Supply Hardware, San
Jose, Ca., now has until June 30 toreach a deal with its lenders to delev-erage, modify or otherwise addressthe company’s capital structure.
“Orchard continues to make solidprogress in our efforts to strengthenour capital structure and improve ouroperating performance,” said c.e.o.and president Mark Baker. “Our sup-plier partners have done a great jobhelping to keep our inventories atappropriate levels, even while wehave been outperforming our salesplan through the start of the springseason.”
In February, OSH had warned thatit could default on a $55.2 millionloan, if the previous May 1 deadlinewas not extended. Restructuringlawyers were then hired, to help nego-tiate a new agreement.
Mendocino Redwood Co., Ukiah,Ca., has promised to improve conser-vation measures on 332 square milesof redwood forest in return for an 80-year federal and state permit to dis-turb the habitat of up to 42 endan-gered and threatened plants and ani-mals as part of its timber harvestingoperations.
Although Mendocino would not bepermitted to deliberately kill protectedwildlife, it would be allowed to causelimited damage to habitat and popula-tion during routine timber operations.
The company believes that the newarrangement will be better than tryingto manage the environment with apatchwork of separate permits. “Ifyou think about that large ownershiplike ours, that’s not the most effectiveway” to manage a forest, said MichaelJani, president and chief forester ofMendocino Redwood.
In return for the blanket permit, thecompany pledges to expand its exist-ing conservation efforts, includingpreserving the scattered patches ofold-growth forest and improving fish-spawning habitat in the adjacentstreams and rivers, which have report-edly suffered under traditional log-ging practices since the 1850s.
Environmentalists like the pro-posed conservation measures, but fearthat the 80-year lifespan of the permitwould make it hard to challenge thecompany if the preservation plansdon’t succeed.
“That is just simply too long a timeperiod,” said Andrew Orahoske, con-servation director of the HumboldtCounty-based EnvironmentalProtection Information Center, “par-ticularly since many of these speciesare on the brink of extinction on theMendocino coast.”
22 The Merchant Magazine May 2013 Building-Products.com
LLC has signed a 25-year lease with Colville TribalFederal Corp. to reopen its plywood mill in Omak, Wa.,which closed in 2009.
Green Diamond Resource Co., Eureka, Ca., hadits California timberlands certified to Forest StewardshipCouncil standards.
The company’s wholesale arm, The CaliforniaRedwood Co., Arcata, Ca., also received FSC chain-of-custody certification.
Plum Creek Timber Co., Seattle, Wa., has complet-ed the purchase of roughly 46,000 acres of timberlands inwestern Georgia and eastern Alabama from the CampbellGroup for approximately $72 million.
Johns Manville Corp., Denver, Co., will open a125,000-sq. ft. DC in Grand Prairie, Tx.
Hampton Affiliates, Portland, Or., purchased millingequipment from Gorman Bros. Lumber, Westbank,B.C., to replace machinery lost at Babine ForestProducts, Burns Lake, B.C., in a fire 16 months ago.
The purchased equipment was culled from the idledCanoe Forest Products mill in Canoe, B.C., whichGorman acquired in 2012.
PPG Industries completed its $1.05-billion acquisitionof the North American architectural coatings business ofAkzo Nobel, including Glidden, Flood and Liquid Nailsbrands.
Eastman Chemical, Kingsport, Tn., earned greenproduct certification for its Perennial Wood decking fromHome Innovation Research Labs (formerly NAHB ResearchCenter).
Inteplast, Livingston, N.J., added new variegated colors(burnished maple and harbor gray) to its TUFboard Porchline.
Osmose completed its acquisition of the wood preserv-atives business of New Zealand’s Mattersmiths Hold-ings Ltd. and Mattersmiths Technologies Ltd.
TYR Wood Products, Portland, Or. (www.tyrwood.com); Tropical Roofing Products, Los Angeles, Ca.(www.tropicalroofingproducts.com), and AERT, Springdale,Ar. (moistureshield.com), have redesigned their websites.
– Correction –Our 2013 Top Treaters list (April, p. 11-16) inadvertently
omitted Permapost Products Co., Hillsboro, Or.(www.permapost.com), which treats with pentachlorophenol,copper naphthenate, Hi-Clear II IPBC/permethrin, and fireretardant.
Pleasanton Dealer Aces ExpansionRichert Lumber, Pleasanton, Ca., recently held a grand
reopening to show off its newly enlarged—and rebrand-ed—store.
After being affiliated with True Value Hardware for 28years, the store has switched to Ace Hardware. When MattRichert took over the business last year from his father,Tom, they decided to expand, particularly in categoriesAce specializes in, such as housewares and home improve-ment items.
They also tripled the sales floor from 5,000 to 15,000sq. ft.
The city will not be without a True Value for long,however; Workbench True Value Hardware is renovating alocal storefront for a mid-summer opening.
Higgins Liquidation ContinuesJ.E. Higgins Lumber’s former DC/office in Livermore,
Ca., was sold by bankruptcy court-appointed receiverDouglas Wilson Cos., San Diego, Ca., for $5.1 million toan auto parts distributor.
The 71,680-sq. ft. facility was the second large Higginsproperty sold by the receiver.
Wilson has also recently engaged Woodland Hills-based Great American Group, Woodland Hills, Ca., tocomplete the liquidation of the 125-year-old lumber com-pany’s other assets.
Stores Renamed to Honor HistoryThird-generation hardware store operators Richard and
Eric Hassett have rebranded their four Bay Area stores asHassett Ace Hardware.
Ocean Shore Hardware, Half Moon Bay, Ca.; Palo AltoAce Hardware, Palo Alto, Ca.; Willow Glen Ace, WillowGlen, Ca., and Wisnom’s Ace, San Mateo, Ca., are allmaking the change, adopting a new logo, signage and over-all look.
“With our father, Larry Hassett, retiring from a long andcelebrated career, and with our family of stores continuingto grow, we have decided to bring all of the stores back tothe original family name,” said the brothers, whose grand-father opened his first Ace Hardware with his brother in1956.
Thief Hits Montana SawmillA 45-year-old man has been charged with stealing bat-
teries and electrical wiring from logging equipment andtrucks at F.H. Stoltze’s mill in Columbia Falls, Mt.
Tim Bauer pleaded not guilty to the charges, but facesup to 10 years and a $50,000 fine for each of the twocharges. According to court documents, a Stoltze employeecontacted the Flathead County Sheriff’s Office on Aug. 27,2012, after a log loader wouldn’t start and workers discov-ered the missing electrical parts. The logging equipmenthadn’t been used for about two weeks.
In all, six batteries and various wiring harnesses andbattery cables valued at $3,138 were missing from a Macktruck, a Dart log stacker, and a Kenworth truck. Stoltzeestimated labor costs to repair the equipment at $3,000.
The sheriff’s deputy who responded to the scene locatedsome of the missing items in a ditch not far away, alongwith an alternator and pruning shears with 2 ft. handleswrapped in duct tape.
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Simpson’s Shelton Mill Suffers FireSimpson Lumber sustained an April 20 fire at the power
house of its Shelton, Wa., sawmill.Firefighters arrived to discover flames in the wall
extending to the second story of the building.Investigators suspect the cause to be a hot ember that
lodged itself under metal sheeting outside the power house.
HD Supply Files for IPOHD Supply, Atlanta, Ga., has filed for a $1 billion ini-
tial public offering.The company, which operates more than 600 locations
in the U.S. and Canada, was sold six years ago by HomeDepot for $8.5 billion to a group of private-equity firmsthat includes Carlyle Group, Bain Capital, and Clayton,Dubilier & Rice.
OSH’s Suit vs. Depot DismissedOrchard Supply Hardware, San Jose, Ca., has lost its
bid to pursue an antitrust claim against Home Depot and
two power tool manufacturers.OSH claimed that Home Depot demanded exclusive
supply contracts with Makita USA and Milwaukee ElectricTool Corp., both of which then stopped supplying OSH. Afederal court rules that those allegations alone were notenough to state a viable antitrust action.
The decision rejected each of OSH’s theories. First, thecourt ruled that it would not be inherently illegal for a largedealer like Home Depot to seek and obtain an exclusivedistribution agreement with a supplier. It also ruled thattwo suppliers simultaneously reaching exclusive arrange-ments with the same large dealer does not constitute anunlawful agreement under the Sherman Antitrust Act. Thecourt ruled that unless two suppliers agree with each otherto take parallel action, no horizontal conspiracy exists.
The court also rejected OSH’s claim that competitionwas harmed in a relevant geographic market, under the“rule of reason” for weighing antitrust claims.
On similar grounds, the court also dismissed claimsunder California’s state antitrust statute and other law.
Ace Expands Site for Store SellersAce Hardware, Oak Brook, Il., has expanded
HardwareStoresforSale.com to sell equipment, in additionto the stores themselves.
Newly added is a Marketplace section that offers fix-tures, signage and equipment. Items can be listed for 60days for a listing fee of $9.95.
The site launched in February to help owners list andview stores for sale.
Utah Dealer on Lookout for BanditThe owners of Moroni Feed Hardware, Moroni, Ut., are
hoping that a new surveillance system will help catchthieves who have robbed the store four times in the pastfew months.
“They are spending a short amount of time in there, justa couple of minutes, grabbing a few items, and back outagain,” said Justin Aagard, deputy sheriff of SanpeteCounty.
In each of the burglaries, the thieves broke a plate glasswindow to gain entry. Video from break-ins on April 11and April 24 shows at least three men, some wearingmasks. All have on rubber gloves on, apparently to concealany fingerprints they could leave behind.
“They are running in, grabbing some strange items—flashlights, BB guns, things like that,” said store managerNeil Johnson.
“One time is one thing, but to come back here four dif-ferent times? We’ve got to have some help to get itstopped. Somebody out there has got to recognize them,”said Aagard.
The store is offering a $500 reward for informationleading to an arrest. “Just help us out and find them,” saidJohnson.
Asbestos Products to Be LabeledHome-improvement products containing asbestos must
be clearly labeled to be sold in Washington State under anew bill that goes into effect next year.
The bill, prompted by a request from the SpokaneRegional Clean Air Agency, covers shingles, wallboardand other construction products that legislators admitaren’t typically a problem when they are installed, but mayrelease asbestos during demolition.
26 The Merchant Magazine May 2013 Building-Products.com
The answers for a long lasting, more beautiful deck.
John Cencak has been promoted to president of JonesWholesale Lumber, Lynwood, Ca. Rick Jones is nowv.p. Rod Jones continues as c.e.o.
Casey O’Neill, ex-Zeeland Lumber & Supply, has joinedProBuild, Denver, Co., as senior commodity buyer forSPF. Jonathan Massopust is a new assistant buyer.
Doug Nedved, ex-USP Structural Connectors, is now withCapital Lumber, Denver, Co.
Steve Willis, ex-Parr Lumber, has joined the millworkdepartment at Dixieline Lumber, San Diego, Ca., ininside sales.
Adrian M. Blocker has joined Weyerhaeuser Co., FederalWay, Wa., as v.p. of lumber, succeeding RobertTaylor, who is retiring this month.
David Hindmarsh, ex-Capital Lumber, has joined NuForest Products, Healdsburg, Ca.
Carl Christoferson, ex-Windsor Mill, is new to sales atDisdero Lumber, Portland, Or.
Chris Olsson, ex-Talon Forest Group, has joined TumacLumber Co., Portland, Or.
Callee Setzer has joined the sales team at Setzer ForestProducts, Sacramento, Ca. Her great-grandfather, CurtSetzer, founded the company.
Chris Bailey, ex-Collins Cos., is now in sales at SpokaneForest Products, Boise, Id.
Louise Zirbel is new to sales at J&H Forest Products,Boise, Id., focusing on low-grade dimension.
Tracy O’Campo, ex-Golden State Lumber, is new to out-side sales at Central Valley Builders Supply, Woodland,Ca.
Rick Green has retired after 22 years with Potlatch Corp.,Spokane, Wa. Mike Flynn will now handle plywoodsales.
Robert Turbes, ex-Prairie Pella Wyoming, is new to mill-work & decking sales at Win-Dor Industries, Billings,Mt.
Dave Vail, ex-Fowler & Peth, is new to sales at IDIInsulation Distributors, Denver, Co.
Casey Garland, ex-Bridgewell Resources, has joinedPriaulx Forest Products, Portland, Or.
Robert F. Rugg, v.p.-strategic accounts, James HardieBuilding Products, Mission Viejo, Ca., has beenappointed to the board of directors at GrabberConstruction Products, Alpine, Ut.
Todd Spivey has joined Jeld-Wen, as regional builderdevelopment mgr. for Colorado, New Mexico, Texas,Oklahoma, and Louisiana.
Greg Clarke has been named senior v.p. and chief finan-cial officer at Johns Manville, Denver, Co.
Eric Watson, ex-Roofing Supply Group, is now territorymgr. for Shake & Shingle Supply, Fort Collins, Co.
Mark Warriner, ex-Pella, has joined DimensionalMillwork of Arizona, Mesa, Az., as Los Angeles territo-ry mgr. of window & door sales, based in Oxnard, Ca.
Jeannine Laitres, Canyon Creek Cabinet Co., Monroe,Wa., has been promoted to national training mgr.
Dennis Hardman, president of APA-The EngineeredWood Association, Tacoma, Wa., since 2005, is retiringat the end of the year.
Huck DeVenzio, mgr.-marketing communications,Lonza/Arch Wood Protection, Smyrna, Ga., retiredApril 12 after 40 years promoting Wolmanized woodproducts.
David Tetzlaf, ex-HD Supply, has been named marketingmgr. for Solatube, Carlsbad, Ca.
Bob Powell has opened a sales office in Alice, Tx., forMatheus Lumber, Woodinville, Wa.
John Hartmann has been appointed president and c.e.o.of True Value Co., Chicago, Il., to succeed LyleHeidemann, who is retiring at the end of the month.
Todd Spivey has joined Jeld-Wen, as regional builderdevelopment mgr. for Co., N.M., Tx., Ok., and La.
Brian Leung has joined Western Forest Products,Vancouver, B.C., as a specialty cedar remanufacturingcoordinator.
Justin Ellis, Builders Do it Center, Roswell, N.M., wasnamed a Young Retailer of the Year by the NorthAmerican Retail Hardware Association.
John K. Smith, president and c.e.o., PennsylvaniaLumbermens Mutual Insurance Co., Philadelphia, Pa.,was inducted as an honorary chief in the Union FireCo.—the volunteer fire company formed by BenjaminFranklin and colleagues in 1736, which would serve asa model for other brigades throughout the nation.
Wendell Hicks is celebrating 50 years with SteamboatLumber, Steamboat Springs, Co.
Dan D. Lyons now heads the garden center at Mungus-Fungus Forest Products, Climax, Nv., report co-ownersHugh Mungus and Freddy Fungus.
MOVERS & Shakers
28 The Merchant Magazine May 2013 Building-Products.com
The small but positive uptick in theeconomy and residential constructionclosed 2012 on an optimistic note forthe first time since the recessionbegan, and that slow-but-steadygrowth is expected to continuethrough 2013.
With indicators pointing to risinghousing starts through the year andinto 2014, APA-The EngineeredWood Association predicts a secondstraight year of growth in all four ofthe wood product sectors it represents,led by growth in I-joists.
“Last year saw across-the-boardincreases in structural panels, I-joists,glulam, and LVL. In 2013, not onlywill that trend continue, but at aslightly faster pace in most cases,”said Craig Adair, APA’s marketresearch director. “Residential con-struction will drive much of thatgrowth, with pent-up demand forhousing, moderately rising homeprices, and growing consumer confi-dence having the most influence.”
Housing is beginning to lead theeconomy and is expected to providean economic catalyst for years tocome. The residential market is gain-
ing strength from a very low bottom,and interest rates are still low. Whilehousing is not immune from potentialtax increases and government spend-ing cuts, momentum is favorable for ahealthy increase in starts.
APA is forecasting single-familyhousing starts to reach 665,000, a24% gain, as homeowners take a posi-tive view toward purchasing a home,the job market improves, and homeprices firm up in many cities.Multifamily starts are expected toimprove 35% to 330,000 units.
The remodeling market is alsoshowing small signs of life, althoughthe outlook is brighter into the secondhalf of 2013 and in years following.The NAHB’s Remodeling MarketIndex is above 50 for the first timesince 2005, meaning that moreremodelers expect business to behigher or better in the future. TheHarvard Joint Center for HousingStudies predicts repair and remodel-ing expenditures to reach 2007 levels,around $145 billion, a dramaticimprovement over 2008-2012 levels.
Non-residential’s mild 3% uptickin starts in 2012 is expected to be
repeated in 2013. School constructionand healthcare will lead in totalsquare footage, although the educa-tion sector will experience a smalldecline. Collectively, non-residentialstarts are expected to recover to morethan 1 billion sq. ft. within the nextfour years.
The industrial market will see onlymodest growth in 2013 due to a num-ber of factors, from government bud-get cuts that impact manufacturing tothe millwork industry’s dependenceon remodeling, as well as non-resi-dential construction. Overall, manu-facturing is expected to grow about2% this year, down from 4% in 2012.Improvement to 5% growth is antici-pated in 2014.
Finally, indicators point to U.S.structural panel manufacturers export-ing about the same quantity of materi-al in 2013 as in 2012.
Wood products demand is expect-ed to accelerate as rapid housinggrowth is followed by renewed repairand remodeling energy, an upturn inthe nonresidential construction cycle,and industrial demand that increaseswith consumer spending and higher
Spike in I-Joists Helps Wood Production Climb
Building-Products.com May 2013 The Merchant Magazine 29
A new app allows dealers, contrac-tors and homeowners to design photo-realistic decks using various Timber-Tech styles and color combinations.
Designed as a decking sales tool,the app permits customers’ selectionsto be saved and tagged with keywords,allowing projects to be easily retrieved,emailed and shared via social media.
A color visualizer feature allowsusers to alter photo-realistic images ofthree different decking lines (Traditions,Earthwood Evolutions, XLM) and fourrail ing options (Evolutions RailContemporary and Builder styles,RadianceRail, RadianceRail Express).
Download from iTunes App Store
GDP growth.Domestic (U.S. and Canada) pro-
duction of OSB and plywood isexpected to reach 30.5 billion sq. ft. in2013, a 10% rise over 2012.
Glulam is predicted to see a 10%increase over 2012, reaching 248 mil-lion bd. ft. The growth is due entirelyto housing, with little support fromnon-residential.
Growth in the I-joist market isforecast around 17% in 2013 to 651million linear ft., slightly slower than2012’s 22% increase. Most of thegains will come from housing, withraised-floor construction continuingto provide a notable boost.
Increased housing starts also willdrive demand for LVL, the majorityof which is used for beams, headersand rimboard. LVL production shouldreach 54.9 million cubic ft. in 2013, a10% growth over 2012.
For more details, APA’s latestYearbook, containing historical dataand a look at 2013, is $250 for non-members from www.apawood.org.
CPA Pleads Guilty to FraudA certified public accountant in
Kalispell, Mt., has pleaded guilty in awire fraud case involving RBMLumber Co., Missoula, Mt.
According to federal court records,66-year-old Jesse Wall approachedRBM in 2008 and offered to invest$350,000 of the company’s money inways that would produce a higher rateof return than a bank. Instead, Wallused the money for his own strugglingbusiness, Nevada-based MilestoneInnovations.
In February 2011, when RBMasked Wall to return the money, it
was told that the money was tied up ina real estate investment. In June, hedid return $190,000 to RBM andhoped to sell his house and repay therest.
When FBI agents interviewed Wallin December 2011, he admitted that“perhaps he did say something mis-leading to them” to induce RBM toinvest with him.
He was indicted a year later andnow faces up to 20 years in prison, a$250,000 fine, and three years ofsupervised release. Sentencing is setfor July 12.
30 The Merchant Magazine May 2013 Building-Products.com
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Spending on remodeling projectswill continue to increase, according toa report from Harvard University’sJoint Center for Housing Studies.
“House prices are increasing inmost markets across the country,” saidmanaging director Eric S. Belsky.“This has increased the home equity
levels for most homeowners, encour-aging them to reinvest in their homes.”
According to the U.S. CensusBureau, remodeling activity increasedalmost 10% last year. Together withHarvard’s projections, this is goodnews for the housing industry—ifenough skilled labor can be found to
complete the projects.“The strong growth that we’ve seen
recently is putting pressure on the cur-rent capacity of the home improve-ment industry,” said director KermitBaker. “Contractors and subcontrac-tors are having more difficulty findingskilled labor, and building materialscosts are unusually volatile for thisstage of a recovery.”
Distributor Teams withSoftware Provider
Associated Building MaterialDistributors of America, El DoradoHills, Ca., has enlisted Sales-i to pro-vide on-demand sales and customerintelligence services.
The firms have created a cloud-based customer-intelligence programto allow better support of the salesmanagement and CRM functions.
Near-term, Sales-i will provideexpanded SaaS options, host compara-tive webinars, and outline new lower-cost ERP platforms, helping ABMcustomers “to improve their overallcustomer service platform and tostrategically plan to capitalize ongained customer intelligence,” saidGarry Tabor, ABM executive v.p.
Remodeling Spending Picks Up Pace
Building-Products.com May 2013 The Merchant Magazine 31
IN MemoriamGeorge Weyerhaeuser Jr., 59,
retired executive at Weyerhaeuser,Federal Way, Wa., died of a heartattack April 14 in Tacoma, Wa.
He received a bachelor’s degree inphilosophy and mathematics fromYale and a master’s of science degreefrom MIT’s Sloan School ofManagement.
In his 30-year career with the com-pany, he served in several executivepositions. He retired in 1998 followingfive years as president and c.e.o. ofWeyerhaeuser Canada.
Dan Naughton, 70, retired generalmanager of Redwood Empire, SanJose, Ca., died Jan. 31 in GrassValley, Ca.
Mr. Naughton graduated from theUniversity of San Francisco andserved in the U.S. Army.
During his 40-year career, he alsoworked at Windsor Mill. He thenworked at Redwood Empire, retiringin 1999 after 19 years.
Dale Grover O’Harra, 95, ownerof Jacksonville Lumber Co.,Jacksonville, Or., died April 17 inMedford, Or.
He served in the Army Air Corpsduring World War II, flying missionsout of Italy.
In 1954, while working forBellevue Lumber Co., Ashland, Or.,he purchased Jacksonville Lumber. Heremained active in daily operations for59 years.
Albert Charles “Al” Smith, 86,retired general manager western man-ufacturing for Champion International,died March 31 in Roseburg, Or.
He joined U.S. Plywood, Rose-burg, Or., in 1956, in its LBM man-agement training program and stayedon after the company merged withChampion Papers in 1967 and wasrenamed Champion International in1972. He retired in 1985.
Irene Eloise Mullen, 96, who withher late first husband, Wally Warm,started Cash & Carry Lumber (nowE&E Lumber), Sedro-Wooley, Wa.,died April 21 in Sedro-Woolley.
Stan McGrath, 83, former ownerand president of Marine Lumber,Tualatin, Or., died March 21 inTualatin.
After graduating from Lewis and
Clark College, he spent a year in theNavy. Afterwards, he helped his fatherlaunch Marine Lumber in 1946. Heretired in 1993.
Derl Stovall, 57, part owner andchief financial officer of Bright WoodCorp., Madras, Or., died March 25 inMadras.
John Edwin Wilkinson, 70, retiredmanager of the wood treating indus-try’s Penta Task Force, died of cancerApril 8 while visiting Boulder, Co.
As an analytical chemist for VulcanMaterials, Birmingham, Al., hebecame a champion of the chemicaland wood preserving industry.
While serving as the Washington,D.C.-based government affairs direc-tor for Vulcan, he worked to ensurethat government regulation of thewood preservation industry was basedon sound science. Most recently, hedirected the task force in its successfuleffort to secure re-registration of thewood preservative label for pen-tachlorophenol with the EPA.
32 The Merchant Magazine May 2013 Building-Products.com
TRADERS MARKET will once againbe returning to Las Vegas, Nv.,
for the second show in that city. The2013 Traders Market will be held Oct.23-25 at the Mirage Resort & Casino.
Since 1996, Traders Market hasheld a unique position among lumberand building material trade showssince it is the only one that is focusedalmost exclusively on the lumber sup-ply chain. Unlike other shows, theexhibitors are almost always manufac-turers of lumber and lumber-relatedproducts, not machinery or otherequipment providers.
This focus on supply chain partnershas fostered an unrivaled atmospherefor networking. In today’s global mar-ketplace, Traders Market provides achance to meet current and prospec-tive clients face to face. In an industrywhere million dollar deals are stillmade with a handshake, that personalnetworking is invaluable.
During a time when many tradeshows have struggled, Traders Marketcontinues to grow. Overall attendancein 2012 was 1,325, an increase of 16%since the 2009 show. The attendeeprofile continues to be almost evenlysplit between wholesalers and manu-facturers.
NAWLA 2013NAWLA Traders Market 2013
“Traders Market has solidified itsplace as the one trade show you can’tafford to miss,” said Gary Vitale,NAWLA c.e.o. and president. “As thelumber industry continues its recov-ery, companies that participate inTraders Market have an advantage onpositioning themselves for success.”
The 2013 show will follow the suc-cessful and popular format from thelast couple of years. The floor showwill be open on Thursday and Friday,allowing attendees to enjoy Las Vegasover the weekend or return home.Other recent additions, such as theProduct Showcase, will also return.
“Traders Market remains the bestvalue in the lumber industry,” saidVitale. “By attending a single tradeshow, a company has the chance tomeet with many of its current clientsand network with dozens of potentialnew customers.”
The Traders Market website—www.nawlatradersmarket.com—hascomplete information on the schedule,fees, floor layout, hotel reservations,and sponsorships. Registration hasalready opened and is exclusivelyonline.
Traders Market againrolling into Las Vegas
34 The Merchant Magazine May 2013 Building-Products.com
THE LUMBER INDUSTRY appears tohave weathered the Great Reces-
sion. Lumber demand, prices and out-put are all increasing. As the pendu-lum finally swings toward industrygrowth, lumber sellers should remaindisciplined in the area of credit man-agement, or risk hampering theopportunity to grow profits withuncollected receivables. Companiesthat remain vigilant in their creditpolicies and procedures will be wellpositioned to capitalize on the indus-try’s recovery.
When extending credit to a cus-tomer there are two key considera-tions a credit professional must con-sider: the buyer’s financial positionand trading practices. The buyer’sfinancial figures will provide creditextenders with an indication of thecompany’s overall financial strength,through a review of its overall debtstructure, working capital, and equityposition. Trading methods will revealhow the company conducts itself with-in the business community.
The due diligence put forth toinvestigate a prospective customerbefore making a credit decision can goa long way in determining how muchcredit to extend while also protectingyour bottom line. A customer shouldnot be granted credit without a reason-able degree of certainty regarding itsability and intention to honor theterms of the sale.
Unfortunately, no standard formulaexists to determine the creditworthi-ness of a company. Although somehave tried developing software for“scoring” companies, according to
NAWLA 2013By Ken Schultz,Blue Book Information Services
Phillip Lattanzio, president and chiefoperating officer of the RollingMeadows, Il.-based National Associ-ation of Credit Managers, it alwayscomes back to the need for a “humanelement” in making the final decision.
The process begins by determininga company’s creditworthiness or abili-ty to repay debts. While some compa-nies have a formal policy with strictlyadhered to rules, many maintain aninformal process. Even with moreinformal policies, it helps to at leasthave some procedures in place to dealwith customer evaluations, settingcredit limits, terms, and conditions,and late payments.
For example, say a lumber compa-ny is approached by a firm it has donebusiness with for a number of years,asking for a substantial increase in itscredit limit. If the lumber companyhas no procedures and/or checkpointsin place, the absence of these deter-mining factors may result in anapproval delay, pushing the customer
to go elsewhere for its purchase. Thisresults in not only a lost sale for thelumber company, but a lost opportu-nity for future business.
Investigating a potential cus-tomer’s creditworthiness can be bothan art and a science. Credit profes-sionals agree that securing financialfigures is optimal to determining ifthe company has documented profitsand steady growth. Liquidity and theability to generate cash are key indi-cators in its ability to pay.Furthermore, it is a good idea tocheck not only the most recent year-end financial breakdown but also
prior statements to identify a financialtrend. Additionally, comparing theposition of a company during its“peak” or interim periods will demon-strate the current year’s performanceversus the company’s historicalstrengths or weaknesses.
Equally important in evaluating acustomer’s ability to pay are the traderesponses of suppliers who have a his-tory of dealing with the company.Lattanzio says credit professionalsshould gather as much information asthey can from as many sources as pos-sible. “A credit professional is like aninvestigator. It is not wise to makedecisions based on one piece of infor-mation, whether it be a credit report,financial statement, or credit groupreport,” he says.
When dealing with a new customer,as opposed to one the company hasdone business with in the past, manycredit professionals agree that a trialperiod—limiting and closely monitor-ing credit limits and payments—is a
Capitalize on the industryturnaround with awell-defined credit policy
Building-Products.com May 2013 The Merchant Magazine 35
good idea. A longtime Blue BookMember explains, “Trial periods areused whenever we determine that anew customer’s integrity or creditworth is questionable. Depending onthe seriousness, we may decide toreduce payment terms to one week oreven go on a load-by-load basis(meaning payment for an outstandingload must be received before we shipthe next load). There is no hard andfast rule as to how long the trial periodlasts, but certainly the customer’scooperation and timely payments willspeed things up. Once the customerdemonstrates an ability and willing-ness to make payments promptly,he/she will be given the same terms asour more well-established customers.”
In the case of a new company, thereare other considerations to take intoaccount. According to one credit pro-fessional interviewed, “You may befaced with a new company made up ofprincipals from a previous organiza-tion you were doing business with. Orthe company you may be consideringdoes not have a credit rating yet. If oursalesperson had a previous relation-ship with this firm, we will extendcredit cautiously and then build it upgradually. It happens all the time.”
In many cases, a firm’s strategic,financial, and operational plans direct-ly impact its credit policy. Accordingto Lattanzio, credit policies shouldmirror the company’s philosophy. “Ifthe powers-that-be want to ship any-thing and worry about collectingmoney later, that’s one philosophy,”he says. But the credit policy shouldnot only start at the top—in the execu-tive suite—but be compatible with thecompany’s long-term goals and phi-losophy.
As lumber demand grows, sellerswill see an uptick in new creditinquiries and requests for limitincreases. To avoid the sting of uncol-lected receivables, wise credit profes-sionals will not only have an estab-lished credit policy in place, but main-tain highly disciplined credit approvalprocedures.
– Ken Schultz is vice president of ratingservices at Blue Book Services, the leadingcredit and marketing information agencyfor the lumber industry. He has over 20years experience with Blue Book Servicesand is a certified credit executive. Contacthim at (630) 668-3500 or [email protected].
36 The Merchant Magazine May 2013 Building-Products.com
ALL BUSINESSES LOSE clients during a receding (orrecovering) business climate. The revenues from these
clients must be replaced in order to maintain profits andgrowth. Yet, there is risk in working with new clients. Of10 new clients, six will pay on time, two will pay in 60days, and two will become a receivable problem. The riskmust be managed carefully to assure business growth thatis profitable.
The profiles of those new clients that can become areceivable problem include:
NAWLA 2013By John Whyte, Brown & Joseph
• New business – 20% of all new businesses fail within18 months of startup.
• Existing clients can experience a contraction in theirown business. Will they contract further, or rebound andprosper?
Current statistics are frightening. During the past threeyears, there were over 4 million bankruptcies filed in theU.S. Over 150,000 were commercial filings. Assuming the2013 business climate improves only slightly, the numberof bankruptcies will be enormous and can have a definite
Managing receivablesin today’s economy
38 The Merchant Magazine May 2013 Building-Products.com
impact on your bottom line.At the same time, a post-recession (or depression) busi-
ness environment offers a unique opportunity. By offeringtimely services to those businesses undergoing change, youmay gain customer loyalty forever.
Survival Comes with Cash FlowMost commercial businesses can delay payment of their
accounts payable, thereby assisting in the financing of theirreceivables. Other services of financing for your receiv-ables are available, but, there is an associated cost. Timelypursuit of your receivables reduces both your costs offinancing and the likelihood of incurring bad debt.
In today’s economy and highly regulated business envi-ronment, cash is king. And, accounts receivable is the nextbest thing to cash. Minimal credit losses are crucial forsurvival regardless of the industry.
Minimizing Your Credit LossesA review of how you extend credit is essential to mini-
mize losses. Credit applications are a valuable tool to
reduce exposure. A credit application offers protectionagainst significant losses. Credit applications shouldinclude, at a minimum, the customer’s legal composition,address, the officers’ names and references from otherfirms (including other temporary firms) with which yourcustomer has been doing business. Check with at leastthree companies to determine how much credit has beenextended and their payment history. Additionally, a goodcredit application will outline credit terms, collection pro-cedures, and liabilities in the event the invoice is not paidtimely. Often, a credit application includes a personal guar-antee clause, or a separate personal guarantee document.This can offer additional protection as the financial obliga-tion is guaranteed to be paid by an individual if the busi-ness fails to pay.
In addition to a credit application, a credit report shouldbe run, especially when your exposure justifies this addi-tional cost. Any judgments or tax liens should raise a redflag.
Timely Collection of ReceivablesWhether the economy is in recession, recovery or grow-
ing, solid billing and collection procedures are a must inorder to maximize cash flow. Internal collection proce-dures should be timely and offer a systematic method of
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follow-up at regular intervals (10, 30,45 days past due). Reminders, state-ments, past due notices, and telephonecalls are several critical methodsavailable.
The contacts should be made to theperson that can authorize the pay-ment. Contacts should be kept shortand professional. Appeal to the prideand honesty of the customer. Be per-sonable and firm. Problems or dis-putes should surface if there is a cashflow issue. Handle everything accu-rately and quickly, and put allarrangements, payment schedules,and interest charges in writing,including late fees, if applicable.
Follow up on every account to thepoint where communication, or lackthereof, indicates that an alternativeaction should be taken. You must uti-lize third-party professionals toenforce payment once communica-tions break down. Time is absolutelycritical. To delay could affect the ulti-mate collectability of that account.
Aggressively UsingProfessionals
Major benefits of utilizing an out-side collection service include:
• Procedures, contacts and follow-up from a third party commandsattention from the debtor.
• Most collection services offer acontingency fee program. That is, feesare only earned by the collection ser-vice if it successfully recovers money.Motivated to collect the account, acollection service offers a strong psy-chological advantage.
• The use of the collection serviceallows your credit department moretime to grant credit, review accounts,and follow-up on current invoicesrather than be involved in the repeatedpursuit of past-due delinquent cus-tomers.
When selecting an outside collec-tion firm, use the same criteria as youwould in selecting any business ser-vice: firm reputation, compatibilityand performance.
The company you choose shouldbe fully licensed and bonded for yourprotection. A quality, professionalcollection service is a very cost-effec-tive tool, whereby a client has at their
disposal, an entire professional staffproviding one of the most needed,important business services.
Getting MotivatedThere is only so much time in a
day. Time usually does not permitthat all items on the to-do list get doneeach day. A good collection servicewill, in a timely manner, consult witha client at no cost and provide themotivation for change. It is essentiallytime well spent.
The management of accountsreceivable is a constant ongoing busi-ness function. A professional andaggressive approach coupled withsolid, systematic procedures willallow you to not merely survive in arecovering economy, but prosper.Reduce tomorrow’s losses—improveyour procedures and processes today.
– A sales executive in the accountsreceivable management industry for morethan 30 years, John Whyte is v.p. of busi-ness development for credit and collec-tions firm Brown & Joseph. Reach him [email protected] or (888)829-9997, ext. 207.
40 The Merchant Magazine May 2013 Building-Products.com
NAWLA 2013By Dave Kahle
THERE IS NOT A salesperson in exis-tence who hasn’t repeatedly heard
of the need to “close the sale.” Everynew sales manager must view theprocess of encouraging his/her salesforce to close the sale as an initiationinto the profession.
If you’re going to be a sales man-ager, you, therefore, must improve
everyone’s ability to close. Doesn’t itcome with the job?
The sales training literature isawash with advice. Some of it istedious and trivial: “If he says this,you say that.” Other advice isgrandiose: “35 new sure-fire closingtechniques.” Still other is harmful:“Overcome that objection,” as if sell-
ing in the B2B world was a contestbetween you and the customer, withone of you winning (overcoming) andthe other losing (being overcome).That’s an attitude that won’t get youfar.
All of this advice shares one com-mon element. It’s incredibly over-done. There is no one aspect of sales(at least in the B2B world) that unde-servedly receives more disproportion-ate time and talk than the subject ofclosing the sale.
Not that there is no need to close.Every project must come to a conclu-sion, every offer be resolved one wayor the other. It’s just that, in my expe-rience, closing has never been the
Closing the saleA realistic perspective
Building-Products.com May 2013 The Merchant Magazine 41
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result of verbal gymnastics on mypart. It’s not my clever refrains, myslick tactics, my memorized “objec-tion over-comers” nor my manipula-tive perseverance that has brought mebusiness. Instead, it was the suitabili-ty of my offer to theneeds/desires/values of the customer.
On those occasions where my offerprecisely met the customer’s combi-nation of desires, values and prefer-ences, I got the business. Where myoffer was off, and some competitor’soffer was a closer match, I didn't getthe business.
I don’t mean to imply that everysales opportunity is that black andwhite. Clearly there is a lot of greyarea in the process. But, from my per-spective, the grey area tipping pointwas most often the personal factors ofrapport, relationship and trust, andalmost never the tactical manipula-tions of the salespeople involved.
I learned early on in my salescareer that it was far more importantand profitable to open the sale pre-cisely than it was to close strongly. IfI spend a lot of time, energy and men-tal acuity on learning the precisedimensions of the customer’s needs,and if I crafted an offer that matchedthose precisely, there was very littleneed for concern about closing.
I realize that I am tramping all overthe hallowed ground of a vast numberof sales managers, sales trainers, andsales consultants. I am, however,reflecting thoughtfully on my 30-plusyears of selling all kinds of things,and my 18-plus years of training anddeveloping salespeople. I believe thatmost thoughtful salespeople will lineup on my side of the issue.
All that said, there some principlesand simple rules that can give usdirection on this issue. Let’s start withour language. Instead of “closing thesale,” let’s first call it “resolving thenext step.” Not only should the pro-ject in general have a resolution, butalso every sales interaction (a conver-sation with a prospect or customer),should have as its goal the identifica-tion of a next step in the sales processand the natural and logical commit-ment to that step.
So, for example, when you are see-ing a prospect for the first time, theideal next step is to get a commitmentfrom the prospect for a second meet-ing. Without that, you have no hope
42 The Merchant Magazine May 2013 Building-Products.com
of getting the ultimate purchase order.To walk away from the sales callwithout resolving “what happensnext” is to leave the sales call incom-plete and relatively worthless.
The ideal next step for a meetingwhen you are collecting informationabout the customer’s needs is the cus-tomer’s commitment to view yourpresentation of your solution.
The ideal next step following asales call in which you present yoursolution is for the customer to identify
the next step in his/her buyingprocess, and commit to that.
On and on we go. Every sales callshould end in some resolution of thenext step in the process, even if theresolution is “no next step with you.”
Notice that in each of these occa-sions, the definition of the “next step”is a commitment on the part of theprospect or customer to do somethingthat moves the project forward.Acquiring that commitment, in eachand every sales interaction, is one of
the habits of the most successfulsalespeople. It’s what I term “resolv-ing the next step.”
If the goal is to successfully arriveat the ultimate resolution, the percep-tive salesperson understands that themeans to that is a step-by-stepprocess. Every sales call is an invest-ment of time and energy on the part ofthe customer. And every investmentof time and energy should result insome kind of an action step. Unlessyou are so entertaining that the cus-tomer looks at his/her time investedwith you as a substitute for themovies this weekend, he/she probablydoesn’t want to squander his timewith you. He probably wants toaccomplish something as a result ofhis investment of time with you. Thesomething will take the shape of a“next step” in his process.
So, the thoughtful and effectivesalesperson recognizes that, andmerely asks the customer to identifythe next step. When he does, it’snailed down with a deadline. The pro-ject moves forward, the sales processcontinues, and you know exactlywhere you and the customer stand.
All of that brings us to one themost powerful “resolution” strategies.I call it “alternate next steps.” Analternate next step is an offer made tothe customer following the stated orimplied rejection of a previous offer.It always involves a smaller risk onthe part of the customer, like plan B.If the customer agrees to the alternateoffer, it always keeps you in the gameand the project moving forward.
For example, you are offering aone-year contract on a product whichthe customer uses every month. Thecustomer indicates that he’s not readyto sign that. Instead of confronting theissue, you resolve it. You offer planB, an alternate next step.
You suggest, instead, that the cus-tomer buy two months worth of theproduct to see how it works out, and
Building-Products.com May 2013 The Merchant Magazine 43
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then you and he will get together toassess the benefits of continuing.Instead of a 12-month contract, youroffer is a two-month trial.
Does that offer represent less riskto the customer? Of course. If the cus-tomer agrees to that step, are you stillin the game? Is the project still goingforward? Yes to both.
You see, the reason the customerdidn’t say yes to your original offerhas to do with his concerns—perhapsissues that have nothing to do withyou or your product. By offering analternate next step, you reduce hisrisk, and provide a mutually accept-able way to resolve the next step. Thereason he didn’t offer a positive solu-tion to your original offer has more todo with you missing something in thecustomer, than it did with your lack ofverbal dexterity.
Let’s summarize: 1. Forget “closing the sale.”
Instead think “resolving the nextstep.”
2. Remember that effective “open-ing” is the best single tactic for clos-ing.
3. Create a habit of always askingfor action as a way to resolve everysales interaction.
4. Develop the habit of offering“alternate next steps.”
If you can execute these fourthings with ever-growing excellence,you’ll enjoy your customers’ respect,maintain positive relationships,
become far more important to them,and far outsell the manipulative“closers” surrounding you.
– One of the distribution industry’sleading sales educators, Dave Kahle has
presented in 47 states and eight countries,produces a free weekly ezine, and haswritten nine books, including How to SellAnything to Anyone Anytime. Reach himat (800) 331-1287 or via www.dav-ekahle.com.
44 The Merchant Magazine May 2013 Building-Products.com
7 trade show tacticsto ensure your ROII WALKED INTO A large trade show booth recently. It
looked like they spent a small fortune on the space andthe construction. The exhibitor was selling a system thatkeeps water from seeping through a sliding door at the bot-tom. I wondered if they would get a return on that invest-ment.
I walked in to see five company representatives talkingwith each other and was greeted by one of two youngwomen who didn’t work for the company, but launchedinto a recently memorized product features seminar. It did-n’t matter that I wasn’t in the market for such a product.She never asked. The company staff never stopped their
own discussion to find out if I was a prospect. After a fewquestions, the woman confessed that she was hired the pre-vious day and given a briefing on the product. It showed.
Rather than bore you with what needed to be different inthat booth, let’s examine what was happening andwhy. Often, in the absence of clear objectives, companiesdefault to what they have done in the past—whether or notit has proven to be successful. Their strategy looked likethe following:
(1) Make a showing(2) Demonstrate your industry commitment(3) Attract attention(4) Get the product out there, so you’re seen as a player(5) Collect a bunch of business cards(6) Have a good time in Vegas (or wherever)Does this sound familiar? Have you ever seen it lead to
tremendous amounts of new business? I mentioned in aprevious article that Frank Belzer, author of the new bookSales Shift, calls this the “Denial = Visibility Model.”Companies who adopt this strategy are accepting the lowstandard of visibility and denying that there is another waythat might even reap multiples of their investment. So let’sunpack the scenario above a bit further.
The five company employees missed at least 100 peoplewho walked by in 10 minutes. It’s likely that this is howsales works in their office as well: “Let someone else
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attract leads. Call us when you’reready for a proposal.” And what aboutusing this “attraction-distraction”method, as I like to call it, in a tradeshow booth? That the hired booth per-sonnel know very little about the prod-uct is not even the real issue. It’s thatthey have no idea how to sell.
Instead of the strategy outlinedabove, maybe it’s time to update ourview of trade shows and what they canproduce for our companies. Here are afew tactics that compose a strategythat you might find more helpful:
1. Have preset goals on the num-ber of prospects that the booth mustgenerate to be worth the investment.This is fairly simple math, and it’sbased on your critical sales ratios andmargins. Email me if you need helpwith this.
2. Only real salespeople shouldgreet prospects. A good salespersonknows how to lower resistance suffi-ciently to allow for a more in-depthproduct discussion. This is the art ofsales. More on that in another article.
3. Visitors should be asked ques-tions to find out if they fit the cus-tomer profile, so that time is not wast-ed on tire kickers while real prospectswalk by. You spent too much moneyin a short period of time to veer awayfrom your trade show goals.
4. At large shows, booth personnelshould stand in the aisle to ask ques-tions filtering the thousands of people
passing by, rather than waiting forsomeone to wander in. This is an obvi-ous point, but it takes leadership to getit done. Elect or appoint a team cap-tain for the booth each day.
5. The sales process should beupdated, reviewed and executed. Itshould follow time-tested methods ofconsultation, discovery, needs-assess-ment, urgency and qualification. Thesales conversation must leverage themany potential customers walking byyour extremely short-term store front.
6. Salespeople who stand out fromtheir competitors know how to have abusiness discussion that can lead tohow their product or service can gen-uinely help a prospect. This is themost consistently effective way to beseen as different, and is an especiallycritical sales tool in commodities orwhen differences are otherwise subtle.In non-commodities, the right kind ofdiscussion can even eliminate compe-tition from the mix altogether. If youwant to understand how that works,send me an email.
7. All salespeople should be com-mitted to their share of the totalprospects needed for that show, byrelentlessly pursuing attendees andmaybe even competing with eachother to make it fun.
Applying good selling skills to atrade show environment, setting cleargoals for sales outcomes, and keepingeveryone energized and engaged in the
effort is the key to an effective showstrategy, especially when so muchtime and money is invested. There aremany articles written on the subject oftrade show etiquette and best prac-tices, and they are helpful (e.g., don’ttalk on the cell phone in the booth). Ibelieve that the problem is even morefundamental and ties directly to thebasics of sales effectiveness.
After drawing data from over600,000 empirically assessed sales-people in thousands of companiesacross hundreds of industries, weknow that 74% of all salespeople donot have the skill sets and sales“DNA” to be effective. Where couldyour organization make a sales shift tomatch the changing market dynamics?How is management impacting sales-people and their effectiveness at meet-ing company goals? Do you have theright people, systems, processes andmetrics to meet the expanding market-place challenges? Even if business ison the rise, is your boat rising fasterthan the others? How can you ensurethat will be true a year from now?
Improving the entire sales functionin your company will carry over to thetrade show floor. In this dynamic andshifting business climate, with ever-increasing time constraints, it’s noplace for amateurs, no matter howgood looking.
– Dennis Connelly is a sales growthexpert at Kurlan & Associates and authorof the Living Sales Excellence blog. Reachhim at [email protected].
46 The Merchant Magazine May 2013 Building-Products.com
THE NORTH AMERICAN WholesaleLumber Association formed the
NAWLA Education Foundation tointroduce today’s students to careeropportunities in the forest productsindustry. The primary objective of thenot-for-profit foundation is to seedgrowth in all sectors of the industry by
NAWLA 2013NAWLA Education Foundation
attracting a new generation of leadersand equipping them for success inbuilding and managing sustainable busi-nesses in the new green economy.
Recently, NEF completed its thirdcareer exploration workshop at a jointsession between Mississippi StateUniversity and St. Peter’s Universitystudents.
Students who complete the NEF course are eligible forinternships within the lumber distribution and manufactur-ing industry. The course included both classroom lecturesand field work. Students had a chance to learn aboutimportant industry topics such as supply chain manage-ment, forest certification, green building, and carbon mar-kets. These classroom presentations were supplemented byfield visits to lumber mills, working forests, and residentialbuilding sites. Students receive college credit for thecourse.
Gary Vitale, NAWLA c.e.o. and president, believesbringing in young talent can benefit the entire industry.“Today’s students are not familiar with our industry, andwhat they do know is often out-dated. The industry hasgone through tremendous technological advancements oflate, and environmental stewardship has become an evenbigger focus in companies. In a recovery that struggles tocreate jobs, the forest products industry creates billions ofdollars in trades and many new career opportunities. Wewant tomorrow’s leaders to consider the industry as acareer.”
When creating NEF, NAWLA researched its members’internship programs and found few companies that had aformal program. Since many of today’s college studentsneed internships for graduation, the forest products indus-try has been missing out on recruiting new talent andexposing them to a career in the industry.
“The industry needs more than just forestry and indus-trial distribution majors,” said Vitale. “We need talent inaccounting and finance, marketing and sales, engineeringand operations. Many NEF students come from thesemajors and take the workshop for the internship opportuni-
Education Foundationtrains students forinternships and careers
Building-Products.com May 2013 The Merchant Magazine 47
NAWLA Education Foundation’s third career exploration workshop included field visits to sawmills,timberlands and construction sites.
ties. Unfortunately, we have more stu-dents than internships so far.”
Setting up an internship programfrom scratch can be hard, but theresults can be very rewarding.Companies get the chance to “testdrive” potential new employees,while also educating future leaders onthe value of the forest products indus-try. If done right, an internship canalso benefit a company by bringing ina fresh perspective to an age oldindustry.
“We are looking for companies tostep up and invest in the future of theindustry. It can be through a valuableinternship or a contribution to NEF,”said Vitale. “Regenerating qualityentry-level employees should be a pri-ority of each forest products companywho wants to remain viable and suc-cessful in this changing world.”
“I urge every company who isinterested to visit nawlaeducation-foundation.org to learn how to investin the future of this great industry,”said Vitale.
We’re growingColville, WA – Usk, WA – Midway, BC – Eagar, AZ
We’re growingColville, WA – Usk, WA – Midway, BC – Eagar, AZ
48 The Merchant Magazine May 2013 Building-Products.com
FAMILY BusinessBy Wayne Rivers
I want to sellmy company.What do I need to do?LAST WEEK, my investment advisor
called. He had a couple of clientswho wanted to sell their small busi-nesses. We discussed the nature of thecompanies: what they do, who worksthere, the goals of the owners, etc.After bit of discussion, it becamepainfully apparent to us that thesegentlemen, whose firms are verysmall and depend on the owners forvirtually every single decision orfunction, have nothing worth buying!
Sadly, that harsh truth is the casefor the majority of family businesses.Forewarned is forearmed: It’s betterto deal with reality now than to hopefor some future miracle.
No matter how big your companyis, how clever your advisors are, orhow fat your margins are, there areonly five ways to dispose of a closelyheld or family business:
• Close the doors.
• Give it away.
• Sell to insiders.
• Sell to outsiders.
• A combination of the four above.In the first alternative, a family
could decide the business is no longerviable, they have socked away suffi-
cient savings/investments for them-selves, and they simply wish to liqui-date the firm and walk away. There isnothing at all wrong with this alterna-tive, if it is consistent with the goalsof the family.
The next alternative would be togive away ownership to family mem-bers, key employees, or strangers onthe street, for that matter. Then thecompany’s ownership, if not its day-to-day management, would be in thehands of others for strategic decision-making purposes.
In most family businesses, thingsare pretty clear when either the oldergeneration owns 100% of the compa-ny or the subsequent generation ownsit all. What is often murky, and usual-ly quite contentious, is when thesenior and junior generations shareownership and must develop newrules or norms about how they willmake collective, group decisions andshare power.
Selling to insiders means simplythe owners wish to sell to either fami-ly members who are employed in thecompany or key, trusted managers—or a combination of the two. Again,there are power sharing and decision
Building-Products.com May 2013 The Merchant Magazine 49
making questions to answer. Also,since NextGen family or employeesaren’t likely to have piles of cashlying about for just such an occasion,how the deal will be financed can pre-sent obstacles.
A family company could decide tosell to outsiders (including the alter-native of going public). Selling out,which is often seen as a valid alterna-tive by the owners of closely heldcompanies, is a fantasy for most fami-ly-owned businesses.
Finally, a company could use a bitof each of the four alternatives andcome up with a combination plan thatmakes sense. They could close downa problematic area of the company,sell a division to key managers, givecertain assets to NextGen familymembers either during senior genera-tion owners’ lifetimes or at death, andsell another portion to outsiders if thisoption is viable and there are suitablepurchasers.
Now, in the two “I want to sell…”instances above, the owners don’treally have businesses at all, althoughthey are incorporated, file tax returnsas businesses, etc. What I mean is thatbusinesses, by definition, are perpetu-al. That is, they can continue in spiteof the demise or retirement of thechief executive.
What most family business ownershave is not a business, but a job—anda pretty demanding, often thanklessone at that. If they genuinely want tohave a business capable of creatingsustainable opportunity and wealth forfuture generations, there is a step-by-step process for doing so.
To put an even more emphaticpoint on the assertion that most familybusiness owners have jobs and notbusinesses—and therefore their com-panies are not worth an outsidebuyer’s attention—we call on theexperience of one of our consultants,who had an 18-month assignment forbuying viable, closely held companiesfor an investor’s portfolio. He learnedthat potential buyers or investors lookat hundreds of deals before they closeon even one.
In evaluating the viability of aclosely held company, investors wantthe following:
• Customers and suppliers loyal tothe company, not just the owner
• A company with a unique niche,with barriers to entry
• Relatively little competition
• The management team can run
the company without the owner beingthere
• There are assets inside the com-pany that can be leveraged (such asproperty or receivables)
• A recurring, predictable stream ofrevenue
• Employees are motivated to stay,rather than leave (a buyer’s worstnightmare)
The absence of any one of theseseven items dramatically reduces thevalue of the acquisition target. Thesad fact is that most sellers receive farlower selling prices than they hadanticipated. If you are interested inselling your family business to out-siders, use this objective checklist tosee how you stack up and where youmight have deficiencies that should beimproved.
If there are only five ways to dis-pose of a closely held company,which of the five is the most commonand which alternative is the most real-istic for the typical family business?The two most common transitionmethodologies for closely held com-panies are giving the company to fam-ily members over time (often whileretaining a salary or other incomestream from the company), and sell-ing to insiders who could be familymembers, loyal employees, or anycombination thereof.
The beauty of either of these twomethodologies—or using them inconcert—is that the insider purchasersor recipients are usually more knowl-edgeable about the capabilities of thecompany, are willing to pay a higherprice in one form or another, usuallyhave extensive emotional ties to thebusiness and senior generation own-ers, will rely on the departing ownersas sources of funds (which canincrease total return for the sellers)and ongoing expertise, therefore caus-ing less disruption, upheaval, and rad-ical change than might be expectedfrom an outside purchaser.
The best advice I can give is tostart planning early for the ultimatetransfer of your family business, inorder to maximize your opportunitiesand value.
– Wayne Rivers is the president of TheFamily Business Institute Inc., Raleigh,N.C. Reach him at [email protected] or (877) 326-2493.
Reprinted with permission of KeyResources LLC. No portion of this articlemay be reproduced without its permission.
50 The Merchant Magazine May 2013 Building-Products.com
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4 steps to taminga combative cultureLOOK AROUND. Has a 10,000-lb.
gorilla taken over your company? Before you reply with a quick “no”
and refocus on your to-do list, bear inmind that this giant beast is known bya second name: culture. And under-stand that taming him is imperativebecause his destructive behaviors cankeep your company’s tribe from doingwhat it was brought together to do.
Here are some tell-tale signs that hehas adopted your organization as hishabitat:
• There are several positive changeinitiatives in the works, but the oldguard refuses to alter “the way we’vealways done things.” They aren’treceptive to new hires and won’t takean active role in training them. Ratherthan working to move the companyforward, they spend most of their daymaking excuses for why things shouldstay the same.
• Your employees are constantlypatting themselves and each other onthe backs. Unfortunately, they’re oftencelebrating empty wins like getting aclient’s order right on the second tryor passing an angry customer on to
another department. These “celebra-tions” only serve as a smokescreen tohide stagnation and lack of progress.
• Most people in your companyseem too comfortable. They gravitatetoward and “nest” in the familiar. Attimes, you wonder if innovation, cre-ativity and motivation are foreign con-cepts to them.
“Unfortunately, the gorilla’s con-stant bellowing drowns out other mes-sages in the concrete jungle, whichallows poisonous cultures to takeentire organizations hostage,” saysMicheal J. Burt, coauthor of Zebras &Cheetahs: Look Different & Stay Agileto Survive the Business Jungle. “Thegood news is, prepared and proactiveleaders can provide clarity, unite thetribe, and tame that unruly gorilla sothat cooperation, growth and innova-tion are once again in the spotlight.”
According to Burt and co-authorColby Jubenville, leaders who cansuccessfully go nose-to-nose with cul-ture gorillas are members of a newlyevolving breed: Zebra and Cheetah (orZ&C) Leaders.
“Zebra and Cheetah Leaders are socalled because they exhibit qualities ofboth breeds,” explains Jubenville.“Like zebras, they boast a distinctiveappearance that others can easily rec-ognize. Like cheetahs, they possessgreat speed and are particularly quickaccelerators. And like both, they havean ability to utilize their senses so wellthat they excel in adapting to theirenvironments. In other words, these
Building-Products.com May 2013 The Merchant Magazine 51
are leaders who are able to adapt tothe fast-paced, always-changing, andhighly competitive business world,and who are capable of leadingdiverse tribes within it.”
Zebra and Cheetah Leaders recog-nize that 10,000-lb. gorillas are sus-tained by individuals who, unlikethemselves, have refused to adapt tothe ever-changing landscape of reality.
The authors suggest four thingsZ&C Leaders must do in order to stopfeeding the gorilla… and create clarityamid the chaos of the concrete jungle:
• Get real about the reality yourtribe is facing. Chances are, the pathyou once took through the jungle waswide, well marked, and free of mostsignificant obstacles. You could counton easily visible indicators, typicalbenchmarks, and annual performanceratings to keep you going in the rightdirection. And if any doubt croppedup, your company’s fearless leaderwould dictate who should lead, whoshould follow, and what should bedone. To hear your change-aversegorilla tell it, that’s still an accurateportrayal of reality. Don’t let him foolyou. The good old days are long gone.
“In today’s competitive, constantlychanging global economy, organiza-tions whose cultures expect the jour-ney through the concrete jungle to beeasy won’t last long,” Burt says.“These days, the path can quicklychange, or disappear altogether. Youmight encounter rockslides or quick-sand at any moment. And predators—otherwise known as competitors—willbe constantly nipping at your heels.
“Z&C Leaders are committed todrawing a clear picture of the true,actual circumstances their organiza-tions face, regardless of how positiveor negative they may be. Only thenwill you be able to cut through thesmokescreen your gorilla may bethrowing up and unite your tribe inpursuit of an overarching dominantaspiration.”
• Make sure your tribe under-stands the complex order of the con-crete jungle. In nature, jungles areincredibly complex. They contain adizzying amount of animals and plantsthat are competing for resources andsurvival. But despite (or in somecases, because of) the occasional casu-alty, the ecosystem supports the manypopulations that call it “home” andenables them to thrive.
Ideally, that’s the case within yourcompany, too. However, it doesn’t
matter how balanced and well calibrat-ed your tribe is on paper if all of itsmembers don’t understand where, howand why they fit.
“It’s a natural instinct for people toworry about their futures,” Jubenvillesays. “That’s why so often new ideas,policies and people spark pushback.Established tribe members worry thatthey’re being edged out or that they’reentering the endangered species list.And that type of uncertainty feeds thegorilla. It’ll beat its chest, bellow andattack what it mistakenly perceives tobe the competition, effectively haltinggrowth and progress.
“As a Z&C Leader, it’s imperativefor you to not only leverage yourtribe’s talents, but to make sure all ofits members understand where they fitwithin your organization’s ecosystem,both now and in the future.”
• Clearly define success. Oncetribe members understand the order ofthe jungle they inhabit, Z&C Leadersmust outline what, exactly, constitutessuccess. Left to their own devices,each individual is likely to define thatoutcome differently, usually in what-ever way would benefit them mostpersonally. In this scenario, you’re
likely to have some employees whomistakenly believe they’ve “made it,”while others struggle, strive and snipetheir way in the wrong direction.
“We refer to the force of a tribeworking toward success as collectivepassion,” says Burt. “The struggle tosurvive and succeed in the globaleconomy won’t always be pleasant oreasy. But if your tribe goes throughthe metaphorical fire together, it willemerge as a stronger, more efficientgroup. Collective passion helps createa cooperative, unified environment—in which gorillas can’t survive.”
• Create new levels of profession-alism. This step is the easiest. You’llfind that when your tribe’s membershave collectively survived the crucibleand reached the first level of successyou’ve set for them, their relationshipswith each other will change.
“Specifically, competition withinthe tribe will naturally be replaced bynew levels of cooperation once every-one sees what they’re all capable ofaccomplishing together,” promisesJubenville. “This will then allow thecompetitive focus to fall where itbelongs: outside the tribe.
52 The Merchant Magazine May 2013 Building-Products.com
Light the DecksFiberon’s new post, post cap,
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The low-voltage LED lights are
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NEW Products
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Application is by dipping,brushing or spraying, with easysoap and water cleanup.
Once dry, the surface can becovered with oil or alkyd paints.
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Stabilizing PrimerDuckback’s P-3 primer stabi-
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The 100% acrylic elastomericprimer can be used on wood,concrete, stucco and metal sur-faces. Environmentally friendlyand low-VOC, clean-up is easywith just soap and water.
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Historic MeasurerStanley Tools is celebrating the 50th
anniversary of the PowerLock tape mea-sure with special designs.
Each device measures up to 25 ft. andfeatures a sliding lock, a durable Mylarprotective coating, and a Tru-Zero end-hook for accurate measurements.
STANLEYTOOLS.COM(860) 827-5480
Tool OrganizersKlein Tools makes it easier to
organize and transport tools. The Tradesman Pro rolling tool
bag is load tested to 200 lbs., withrugged 6” wheels and a reinforcedmetal frame.
The Hacksaw Electrician’s baghas 48 pockets. An attachableHacksaw Holder has a quick link
that can be secured to tool bags,carts, ladders and more.
The Tradesman Pro electrician’stool belt has a pocket for drill bitsand a holder for a tape measure.Removable pouches have 26”wide-open pockets for tools, drillsand spare parts.
KLEINTOOLS.COM(847) 821-5500
Building-Products.com May 2013 The Merchant Magazine 53
Interior Exterior DIY Exterior DIY Interior Aluminum Professional
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Durable Railing KitsAluminum-alloy railing kits from Feeney Design
are a durable alternative to wood or composite railing.The kits are sized for 36” residential railings and
include all necessary components and connectingbrackets.
FEENEYINC.COM(800) 888-2418
Wrap Those WindowsMFM Building Products’ WindowWrap water-
proof tape can be used around windows, doors, build-ing seams, and in general construction.
The tape features PowerBond asphalt adhesive toensure a tight bond, even in low temperatures. It self-seals around common fasteners, for protection againstwater, air, insect and noise penetration.
The 100’ rolls are 25 mils thick, in widths of 4’, 6’,9’ and 12’.
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54 The Merchant Magazine May 2013 Building-Products.com
Connecting Decks and FencesRailLok from Screw Products connects railing and
fence sections to posts. The fasteners are available in 316 stainless steel,
white and black powder-coated finishes, as well ascustom colors.
DeckLok brackets create stronger deck connectionsat the floor joist, to meet or exceed IRC 2006 require-ments.
SCREW-PRODUCTS.COM(877) 844-8880
Metal BalustersMetal balusters from Azek Building Products can
be attached directly to railing.An extruded channel allows direct screw attach-
ment. It also eliminates plastic connectors, for a clean,uncluttered look.
Balusters come in four lengths (29”, 31”, 35” and37”), with stair balusters in two lengths (31” and 37”),in both round and square styles.
AZEK.COM(800) 275-2935
Building-Products.com May 2013 The Merchant Magazine 55
Roof UnderlaymentPly40 underlayment from Boral Roofing can be
used under tile, shake and shingle roofing systems.Made of modified fiberglass, the reinforced prod-
uct is designed to minimize the wrinkling and buck-ling often associated with non-modified felts.
BORALROOFCOMPONENTS.COM(800) 669-8453
More PVC DeckingInteplast expanded its offerings of PVC decking. The Eco collection is designed to be economical
and environmentally friendly, with lightweight andreversible boards.
The Kinbo collection features reversible boardswith embossed woodgrain, capstocked on all foursides.
TUFBOARDS.COM(800) 452-2117
56 The Merchant Magazine May 2013 Building-Products.com
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WEST COAST Lumber & Building MaterialAssociation hosted an April 12 golf tournamentat Black Gold Golf Club, Yorba Linda, Ca. [1]Angelo Cleffi, Eric Carreon, Jerry Romero,Andy Salazar. [2] Chris Likert, DavidHollingworth, Aaron Howe, Mike Russell. [3]John Seely, Danny Sosa, Jeff Norihiro, Tom
Al Reed. [10] Gavin Morris, J.C. Lopez,Raymond Torres, Jason Rutledge. [11] MikeIrish, Tim Dickison, Jeff Pardini, Dave Wallace.[12] Doug Will is, Oliver Banes, SteveLawrence, Augie Venezia, Rick Deen, DannyAndrea. [13] Kristin Miller, Lisette Silverman,Rebecca Jones. (More photos on next 2 pages)
Lopez. [4] Micah Orr, Jim Russell, MattDeitchman, Kim Wood. [5] Sergio Paz, TroyStaufenbeil, Jack Butler. [6] Glenda DeFrange,Marlene Salazar, Karen Glover, Suzy Cleffi. [7]Geoff Garner, Dale Verseput. [8] Curt Nierman,Frank Bader, Alain Patton, Jim Nicodemus. [9]Carlton Jennings, Ted Smith, Scott Middaugh,
Building-Products.com May 2013 The Merchant Magazine 57
MORE WCLBMA GOLF (continued from pre-vious page): [1] Sean Cummings, JenniferBurford, Chris Huntington. [2] Bill Ferguson,Greg Stout, Frank Huerta, Brad Satterfield. [3]Mike Claborn, Walter Frederick, Mark Davis.[4] Ericka Chavez, Alfie Henshaw. [5] MikePotthoff, Mike Carey, Rex Klopfer, Mark
Deschenes. [11] David Iblings, RolandoRobles, Richard Rios, Larry Christensen. [12]Jim Kaminski, Steve Mitchell, Dan Lucero,Tony Campbell. [13] Chris Thoman, AndrewJacquet, Barrett Burt, Steve Schroeder, JimBurns. [14] Christoper & Debbie Quezambra,Joe McCarron. (More photos on next page)
Ganahl. [6] Ken Lineberger, John Assman,David Coleman. [7] Brian Hurdle, GrantPhillips, Kevin Dodds, Joe LaBerge, KevinPaldino, Lynn Bethurum. [8] Carlos Zarate,Allan Pantig. [9] Mark Ramsey, Rich Langton,Mark Huff, Joe Bolton. [10] Ryan Lauterborn,Cory Peterson, Mike Tompkins, Jarrett
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58 The Merchant Magazine May 2013 Building-Products.com
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EVEN MORE GOLF (continued from 2 previous pages): [1] Ken Smith,Tim Hummel, Marc Weaver, Greg Hexberg. [2] Keith Lyng, Rich James,Scott Whitman, Terry Rasmussen. [3] John Pasqualetto, Matt Manke,John Davis, Mike Nicholson. [4] Sean Fogarty, Marc Spitz, Troy Allen,Dale Donnelly. [5] Ron Hillman, Tom Angel, Erik Nagli, Craig Larson. [6]Dave Vigil, Paul Corso, John Mayhew, Kelly Lyon. [7] Grant Pearsall,
Doreen Meeks, Pete Ganahl, Melissa Greyson, Pete Meichtry, SheldonDoss. [8] Dan May, Dave Miller, Joe Allotta, Deonn DeFord. [9] GerryPerez, David Abbott, Chris McDonough, Nate Johnston. [10] JoeHonochick, Karl Hallstrom, Mark Grube, Sal Camarda. [11] CharleneValine, Bill Sullivan, Jean Henning, Ken Dunham. [12] John Neel, JenniferBurford, Dave Bufe, Dan Croker. [13] Lovell Williams, Michael O’Dell.
the Races April 20 at SantaAnita Racetrack, Arcadia,Ca. [1] Garrison Cox, MarkMahood, Jim Gaither,Nicole Cox, Tammy &Kevin Tranter. [2] Ryan &Alyssa Haag, ChristianAldam, John Banks, Robert Schad. [3] Mike & Lisa Rossi, Jeremy &Emily Moyer, Amy & Tony Moyer. [4] Stephanie Beck, Steve Long, MikeLong, Louis Wohf. [5] Walter & Dian Maas, Joyce & Walter Ralston,Charley James. [6] Tim Mathews, Vicki Johnston. [7] (back) DanBohannon, Randy Porter, Dale Bohannon, (front) Kit Rohm, Marty Porter.[8] Margie Findlay, Paul & Candace Pendergast, Shannon Jacuez, Sue& Paul Jukes.
Building-Products.com May 2013 The Merchant Magazine 59
ASSOCIATIONUpdateWest Coast Lumber & Building
Material Association’s 40-and-under2nd Growth group will gather July18-19 at Rancho Las Palmas Resort &Spa, Rancho Mirage, Ca., for itsannual summer conference.
Southern Oregon LumbermansAssociation will meet July 25-26 fora golf tournament and BBQ at RogueValley Country Club, Medford, Or.
Western Red Cedar LumberAssociation will host its annualCedar Summit on Sept. 5, during theBC Wood Global Buyers Mission,Sept. 5-7 at Whistler ConferenceCenter, Whistler, B.C.
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Photos by Walter R
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BIG PAYOFF: Los Angeles Hardwood Lumberman’s Club drew itslargest attendance since the club’s inception in 1969 to its annual Day at
60 The Merchant Magazine May 2013 Building-Products.com
WANTED TO BUY
WANTED: DOWNFALL & SECONDSDownfall, excess or salvage lumber, panels,
roofing, etc., purchased for export. [email protected], (619) 954-9955.
CLASSIFIED Marketplace
Rates: $1.20 per word (25 word minimum). Phone number counts as1 word, address as 6. Centered copy or headline, $9 per line. Border,$9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type.
Send ad to Fax 949-852-0231 or dkoenig@ building-products.com.For more info, call (949) 852-1990. Make checks payable to Cutler
Publishing. Deadline: 18th of previous month. To reply to ads with private box numbers, send correspondence
to box number shown, c/o The Merchant. Names of advertisers using abox number cannot be released.
HELP WANTED
NEIMAN REED LUMBER CO., a SanFernando Valley-based wholesale lumber andplywood distributor, is looking for two qualityand seasoned salespersons. The first candidatewill manage and run our plywood operationwith sales and buying responsibilities. Mill con-tacts and customer following are essential. Thesecond candidate will be a softwood/hardwoodtrader with loyal following. We offer the mostcomprehensive inventory with a full spectrumof grades, a competitive compensation pro-gram, earned bonuses, 401K, travel andexpense accounts, and full-health insurancebenefits. This is an excellent opportunity to be akey part of a premier wholesale lumber compa-ny. Please send resumes in confidence to EdLangley: [email protected].
HELP WANTED FOR SALE
CALIFORNIA CASCADE INDUSTRIES iscurrently hiring quality, seasoned salespeople.Opportunities are for both inside and outsidesales. Send resume to [email protected]
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DATE BookListings are often submitted months in advance. Always verify
dates and locations with sponsor before making plans to attend.
WoodWorks – May 15, multi-story wood-frame structures seminar,Red Star Tavern at Hotel Monaco, Portland, Or.; May 16, LunaRestaurant, Spokane, Wa.; woodworks.org.
Do it Best Corp. – May 18-20, spring market, Indianapolis, In.; (260)748-5300; www.doitbestcorp.com.
Hardwood Plywood & Veneer Association – May 19-21, annualconvention, Meritage Hotel, Napa, Ca.; (703) 435-2900;www.hpva.org.
Society of American Foresters – May 23, Selkirk chapter meeting,Longhorn BBQ, Airway Heights, Wa.; (509) 571-3374;www.safnet.org.
Tacoma-Olympia Hoo-Hoo Club – June 4, meeting, La Quinta Inn,Tacoma, Wa.; (253) 531-1834.
Window & Door Manufacturers Association – June 4-6, annualtechnical conference, Intercontinental Hotel, Milwaukee, Wi.;(312) 637-5891; www.wdmatechconference.org.
PCBC – June 5-6, San Diego Convention Center, San Diego, Ca.;(800) 956-7469; www.pcbc.com.
Forest Products & Machinery Equipment Expo – June 5-7, spon-sored by Southern Forest Products Association, Georgia WorldCongress Center, Atlanta, Ga.; sfpaexpo.com.
Elmia Wood – June 5-8, international forestry fair, Elmiavagen,Jonkoping, Sweden; www.elmia.se.
Oregon Urban & Community Forestry Conference – June 6,World Forestry Center, Portland, Or.; [email protected].
Global DIY Summit – June 6-7 , Sheraton Roma Hotel &Conference Center, Rome, Italy; www.edra-online.com.
Willamette Valley Hoo-Hoo Club – June 7, golf tournament,Shadow Hills Country Club, Junction City, Or.; (541) 485-5979.
Forest Products Society – June 9-11, 67th international conven-tion, AT&T Conference Center, Austin, Tx.; (608) 231-1361;www.forestprod.org.
American Architectural Manufacturers Association – June 9-12,national summer conference, Hyatt Regency O’Hare, Rosemont,Il.; (847) 303-5664; www.aamanet.org.
Western States Roofing Contractors Association – June 9-12,convention & expo, Peppermill Hotel & Casino, Reno, Nv.; (800)725-0333; www.wsrca.com.
Western Forestry & Conservation Association – June 10-14,basics of forestland & timber appraisal seminar, Corvallis, Or.;www.westernforestry.org.
National Lawn & Garden Show –June 11-13, Crowne PlazaO’Hare, Rosemont, Il.; (888) 316-0226; www.nlgshow.com.
National Retail Federation – June 12-14, loss prevention confer-ence & expo, San Diego Convention Center, San Diego, Ca.;(800) 673-4692; www.nrf.com.
Los Angeles Hardwood Lumberman’s Club – June 13, meeting,Moreno’s Restaurant, Orange, Ca.; (626) 445-8556;www.lahlc.net.
West Coast Lumber & Building Material Association – June 13,associates/dealers golf tournament, Rancho Solano Golf Club,Fairfield, Ca.; (800) 266-4344; www.lumberassociation.org.
Southern California Hoo-Hoo Club – June 19, meeting, AnaheimHills Golf Course, Anaheim, Ca.; (760) 324-0842;www.hoohoo117.org.
Western Wood Preservers Institute – June 23-25, summer meet-ing, Ritz-Carlton Lake Tahoe, Truckee, Ca.; (360) 693-9958;www.wwpinstitute.org.
Northwest Natural Resource Group – June 24-26, small-scale log-ging workshops, Oakville, Wa.; (360) 316-9317; nnrg.org.
Western Forestry & Conservation Association – July 8-11,advanced insect & disease field session, Hood River, Or.;www.westernforestry.org.
Mountain States Lumber & Building Material Dealers Associa-tion – July 16, Colorado WOOD Council golf tournament, TheRanch Country Club, Westminster, Co.; (800) 365-0919;www.mslbmda.org.
West Coast Lumber & Building Material Association – July 18-19, 2nd Growth summer conference, Rancho Las Palmas Resort& Spa, Rancho Mirage, Ca; (800) 266-4344; www.lumberassoci-ation.org.
Association of Woodworking & Furnishings Suppliers – July 24-27, woodworking fair, Las Vegas Convention Center, Las Vegas,Nv.; (800) 946-2937; www.awfsfair.org.
Southern Oregon Lumbermans Association – July 25-26, golftournament & BBQ, Rogue Valley Country Club, Medford, Or.;(541) 779-5121.
Oceania Plantation, Forest & Wood Products Trade Confer-ence – Aug. 8-9, Bayview on the Park Hotel, Melbourne,Australia; www.prcc.com.au.
Willamette Valley Hoo-Hoo Club – Aug. 14 , trap shoot, EugeneGun Club, Eugene, Or.; (541) 393-3309.
Orgill – Aug. 22-24, fall dealer market, Boston ConventionExhibition Center, Boston, Ma.; www.orgill.com.
Mountain States Lumber & Building Material Dealers Associa-tion – Aug. 23, golf tournament, Western Slope golf tournament,Rifle Creek Golf Course, Rifle, Co.; (800) 365-0919; www.mslbm-da.org.
National Association of Women in Construction – Aug. 28-31,annual convention, Hyatt Regency, Bellevue, Wa.; (800) 552-3506; www.nawic.org.
62 The Merchant Magazine May 2013 Building-Products.com
A hardware store outside Philadelphia, Pa., issurviving against larger competitors by offering morethan the usual services.
“I’m more of a convenience store; more like a 7-Eleven to a supermarket,” says Bob Wipplinger, whohas owned 80-year-old Penndel Hardware, Penndel,Pa., for the past 15 years. “We depend on people whowant to support a local store.”
The 3,000-sq. ft. location offers standard hardwaremerchandise and a number of extra items, like greetingcards and toys. It also offers the usual services—suchas cutting of glass and mirrors, plusscreen and lamp repair—but hasbranched out with several thatare less commonly offered athardware stores.
“We install watch batter-ies, too. It’s another littleniche,” he says. “We have tobe flexible.”
But it’s the store’s newestservice—taking fingerprintsfor locals applying for a gov-ernment position or a job withdirect contact with children, as anauthorized Cogent Fingerprintingfacility—that has become the most profitable.
A good customer suggested that the store shouldoffer the service so nearby residents wouldn’t have todrive 15 miles to get fingerprinted.
“We’ve done 9,000 prints in two years and we get$3 per print,” says Wipplinger, who’s pleased with thearrangement since no costs were involved and trainingwas simple.
He also makes money by renting the upstairs of thebuilding, which he owns, to tenants. “That’s really howwe survive. Otherwise it’s game over,” saysWipplinger, who also is a real estate agent. “I knew Icouldn’t make a decent living just selling nuts andbolts.”
Even though he’s had to branch out to survive in adifficult marketplace, Wipplinger is happy to be in thehardware business. He started working in his father’shardware store at age 16 and has been in the businessever since—and doesn’t plan to quit anytime soon.
“I like the freedom of being self-employed, of help-ing customers, of fixing things,” he says.
ADVERTISERS IndexFor more information on advertisers, call them
directly or visit their websites [in brackets].
Advantage Trim & Lumber [www.advantagelumber.com]..........51Allweather Wood [www.allweatherwood.com] ............................23Azek [www.azek.com] ....................................................................21Big Creek Lumber Co. [www.big-creek.com]...............................54Blue Book Services [www.lumberbluebook.com].......................46BW Creative Wood [www.bwcreativewood.com] ........................53Cabot [www.cabotfactoryfinish.com] .............................................7California Cascade Industries [www.californiacascade.com]......4California Redwood Co. [californiaredwoodco.com]........Cover IIICapital [www.capital-lumber.com]..........................................40, 43DeckWise [www.deckwise.com] ...................................................55Digger Specialties [www.diggerspecialties.com]........................39Distribution Management Systems Inc. [www.dmsi.com]..........36Endeck [www.endeck.com] ...........................................................15Fiberon [www.fiberondecking.com] .............................................19Fontana Wholesale Lumber [fontanawholesalelumber.com].....50Hoover Treated Wood Products [www.frtw.com]........................30Huff Lumber Co. .............................................................................31Humboldt Redwood [www.getredwood.com] ..............................23Idaho Forest Group [www.idahoforestgroup.com] .......................3Inteplast Group [www.tufboards.com] .........................................25J.M. Thomas Forest Products [www.thomasforest.com] ...........45Keller Lumber Co............................................................................59Mendocino Forest Products [www.mfp.com] ..............................23MoistureShield [www.moistureshield.com] ...................................5Mount Storm Forest Products [www.mountstorm.com].............24Norman Distribution Inc. [www.normandist.com].......................43North American Wholesale Lumber Assn. [www.nawla.org] .....38NyloBoard [www.nyloboard.com]...................................................8Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....41Railing Dynamics Inc. [www.rdirail.com] .....................................29Redwood Empire [www.redwoodemp.com].................................37Roseburg Forest Products [www.rfpco.com] ..............................13Simpson Strong-Tie [www.strongtie.com] ........................Cover IVSiskiyou Forest Products [siskiyouforestproducts.com]...........35Specialty Forest Products [www.specialtyforest. com]..............25Sunbelt [www.sunbeltracks.com] .................................................42Sure Drive USA [www.suredrive.com]..........................................26Swanson Group Sales Co. [www.swansongroupinc.com].........33TAMKO Building Products [evergrainchallenge.com].......Cover IIThunderbolt Wood Treating [thunderboltwoodtreating.com] ....61TigerDeck [www.tigerdeck.com] ...................................................32Vaagen Bros. Lumber Inc. [www.vaagenbros.com]....................47Viance [www.treatedwood.com] ...........................................Cover IWahoo Decks [www.wahoodecks.com] .......................................28Western Red Cedar Lumber Association [www.wrcla.org] ...48-49Western Woods Inc. [www.westernwoodsinc.com]....................27Yakama Forest Products [www.yakama-forest.com]..................44
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