Running out of you

Ivenv (LUMBER) salesperson in North America is makI)lrng 80Vo of their money from fewer than l0 accounts, many far fewer. (There are exceptions, but they are just that, exceptions.)

Pareto, the father of the 80/20 rule, says that 80% of our gains/progress will come from 2O7o of our activities. This holds true for fishing, hunting, working accounts, and even our friends! We derive 807o of our pleasure from 20Vo of the people we associate with.

Sales example: A salesperson is working 30 accounts and is generating $30000 in profit per month.

30 Accounts = $30K

2OVo of 30 accounts = 6

80Vo of $30K = $24K

$24K + 6 accounts - $4K account value per month

$6K + 24 accounts = $250 account value per month

In this common example, the top six accounts are 16 times more valuable than the bottom 24 ($4000 + $250 = l6).

Seller Value

Life is a mirror, so doing the math on customer value also does the math on seller value. In our example above, the seller is bringing a lot of value to her first six accounts and very little to the rest. If we have been working these accounts for over six months, we are not a good fit with these accounts and, statistically speaking, never will be.

So why do we hang onto these bottom 24 accounts if they are so much less profitable? Some are new. Building trust takes time, so some of these accounts "below the line" will be worth keeping and working. But the older, non-producing accounts-why do we hang on to them?

Because most of us remember how hard it was to build our current account box, even if it isn't perfect. ("They might be a C- account, but they're My C- account!" )

We also "save accounts for a rainy day." We hold onto these barely profitable relationships because we think that if someday we lose one of our good accounts, we will already have a relationship with the accounts that can move up and replace them.

Prospecting is arguably the most difficult thing we do as salespeople. So many of us would rather try to "restart" a known C- than go out and find another A+ account.

This is a mistakel Relationships and their mindsets are established early. ("Love at first sight" comes to mind.) ff we do not have an A or B relationship with an account in six months of working with them, we never will.If we work against this rule, we will lose. There will be exceptions, but we cannot ensure growth (or put our kids through college) working on exceptions.

Itm Busy

"I'm busy" is an excuse. We have a salesperson generating $l7K in profit per month. He ls busy. We have another salesperson generating $50K in profit per month. She is busy, too. They are both busy, so what is the difference? Busy doing what? That's the difference.

The l7K salesperson has some good accounts, but on average, his total account box is a B-. His 30 accounts need service, quotes, etc. This seller "is busy" doing the wrong things. He is servicing accounts that are treating him as a second class citizen. They give him just enough business to "keep the main supplier honest" and use him for market information, but never will make him a real partner in busiNESS.

The 50K salesperson has more good accounts and, more importantly, fewer bad accounts. How does that happen? The 50K seller will not stand for being a second class supplier! She will try to make the relationship work, but if it isn't working, she moves on. She prospects for new and better accounts.

If you are an above-average or exceptional salesperson, you are going to "run out of you" before you run out of good accounts! Because the 17Ks hang onto C- relationships, eventually their time is taken up servicing (not selling) them. They don't have time to prospect for better customers ! ',

Hard work, time management, and salesmanship charms are important; we must develop these skills. To move to the next level, we must also learn to evaluate and manage our accounts.

Boise Cascade Building Materials inked a long{erm lease on a 28,000-sq. ft., 10-acre in Lee's Summit, Mo.-formerlv the home of RL Sweet Lumber.'tt should open this fall (see Aug., p.22).

Seven D Wholesale, Attoona, Pa., has purchased Buttolph Lumber's 9-acre DC in Phoenix. N.Y.

WOLF, York, Pa., is distributing Boral TruExterior Siding along the East Coast.

The distributor is also relocating its New England DC from Worcester, Ma., to a new 100,000-sq. ft. warehouse in Northborough, Ma.

And, the company has optimized its wolfhomeproducts.com site for all mobile computing devices,

J.D. lrving has installed a new grade scanner at its sawmill in Dixfield, Me.

Cedar River Lumb€r, Powers, Mi., auctioned off its milling equipment Sept.25.

Knauf Insulation, Shetbyvitte, In., has completed its acquisition of Guardian Insulation. Aubum Hitts. Mi.

Guardian Fiberglass is being integrated into Knauf Insulation, and Guardian Laminated Building Products has been renamed Silvercote, LLC.

Simpson Lumber Go., Tacoma, Wa., is exploring the possible sale of assets, including its mills in Meldrim, Ga., and Georgetown, S.C.

Timbervest LLC, Attanta, Ga., has purchased 13,220 acres of timberland in northeast Georgia, northwest Tennessee, and east-central Vermont for its investment fund.

Anniversaries: Thomes Bros. Do it Best, Arlington, Mn., 125th Garris Evans Limber, Greenville, N.C., 95th Teague Lumber€o., Fort Worth, Tx., 70th M&M Lumber, Tulsa, Ok.,50th ... Saines Ace Hardw?IO, Lincolnton, N.C., 50th Snodderley Lumber, Clermont, Mo.,50th

New Jersey Dealer Adding 2nd Lumberyard

Dreyer's Lumber & Hardware, Chatham, N.J., opened a second location Sept. 15 in Oakhurst, N.J.

While Dreyer's original, 2l-yearold yard caters to builders and remodelers, the new branch will also focus on homeowners and contractors.

Michigan Chain Takes Over Gheboygan Yard

Bernard Building Centers has opened its fourth location at the former home of Cheboygan Lumber, Cheboygan, Mi.

The chain noticed the growing void created by the longtime yard's closure earlier this year. Locals said they were forced to drive 80 to 100 miles to find the building materials they needed. Brisk business ever since the Sept. 8 opening confirmed the pent-up demand.

Bernard has hired 15 employees from the prior business, including retaining Ron Tallman as manager.

Electronic Dealer Expands to Brick & Mortar

An Internet-based lumber dealer in Tennessee is ready to set down roots and open a physical location to stock and sell specialty lumber products, siding, roofing, flooring and doors.

East Tennessee Building Supply, Bulls Gap, Tn., has acquired several acres in Mosheim, Tn., with plans to open a warehouse and retail showroom.

Owner/manager Charles Lindley attributes the expansion to an improving economy and housing market.

Ply Gem Completes Simonton Acquisition

Ply Gem Industries, Cary, N.C., has finalized the acquisition of Simonton Windows, Columbus, Oh., from Fortune Brands Home & Security.

As part of the $13O-million deal, Ply Gem has also acquired all assets of SimEx, a vinyl and PVC foam extrusion operation in West Virginia.

Ply Gem will operate Simonton as a stand-alone business unit, similar to the way it runs its existing Siding and Window groups.

New Owner for Georgia Aces

The Hardware Company Forsyth, Cumming, Ga., has been formed to purchase bankrupt three-unit Wood Ace Hardware.

Owners include c.e.o. Darin

Workman, ex-Ace Hardware Corp.; his wife, Gina; and Steve Curnutte, of the investment group Capstan Fund, Nashville. Tn..

They are remodeling and remerchandising the stores in Alpharetta and two in Cumming, Ga., in time for an Oct. 17-19 grand reopening. The stores remain open during the construction.

lnvestors Acquire Versatex

Cellular PVC building products manufacturer Versatex Building Products, Pittsburgh, Pa., has been acquired by private investment firm Highlander Partners, Dx.

Versatex will continue to operate under its existing operating structure with its current management team, led by president and co-founder John Pace and v.p. of sales Rick Kapres, who remain as owners. Current chairman and co-founder Jim Wolf will continue with the board of managers and also as an owner.

"Highlander is a perfect fit, given their extensive background in building materials, and we are pleased to have a partner that invests their own capital and takes a long-term strategic approach to growing companies," said Pace.

Jeff L. Hull, Highlander's managing partner and newly appointed chairman. added. "We could not be more thrilled to partner with the Versatex team, who in the company's l0-year history have established a strong brand and leading market presence. We look forward to supporting their vision as being at the forefront of innovation in the building materials space and continue expanding the company's presence throughout the United States and abroad as cellular PVC continues to gain adoption and take share in the market."

W.V. Mill Hit with OSHA Fines

Wayne Lumber & Mulch, Wayne, W.V., is facing $85,080 in proposed fines for 44 alleged safety violations at its sawmill.

The charges include not checking or maintaining fire extinguishers annually, not equipping an elevated mill platform with a stairway, not developing or implementing a hazard communication or training program for workers, lacking proper guards and personal safety equipment, plus others related to noise, electrical, fall, egress and amputation hazards.

East Haven Builders Supply opened lumberyard #3 in Manchester, Ct. (Keith Manceri, mgr.),

The Home Center & Lumber Co., west Memphis, Tn., has been opened by John Grady, Wesley Bricker, and G.W. Sonells. as a True Value affiliate.

Len-Co Lumber Corp., Buffalo, N.Y., has acquired the 8-acre site that houses its Williamsville, N.Y., store and a vacant storefront, which it will rent out.

Gillman Home Center, Batesville, In., is negotiating to buy 7 acres in New Castle, In., to open store #8 by spring.

Simonson Lumber is seeking permission to build a fourth, 12,000-sq. ft. warehouse at its Baxter, Mn., yard.

Curtis Lumber opened a Sears Hometown Store at its Norwich, Ct. lumberyard.

E.L. Spear Inc. has purchased a 10,000-sq. ft. building on 1.1 acres near its Rockland, Me., yard, for future expansion.

Lowe's received approval to build a 135,000-sq. ft. store in Washington, D.C., by summer.

84 Lumber has closed its 36-year-old store in Plainview, Tx.. due to a lack of new residential construction in the area.

Gambles Do it Best Hardware, New Richland, Mn., is seeking a buyer or may close, with the coming retirement of owner Edna Erdmann, who founded the business 60 vears ago with her late husband.

Williams True Value Hardware, Athens, Ga., closed and auctioned off remaining inventory Sept. 6.

Elliott's Hardware has begun construction on a new 14,500-sq. ft. store in northeast Dallas, Tx.

Basler's Ace Hardw?f€, Oregon, ll., closed Oct. 1, with the retirement of Jeff Basler, 63, owner for 40 years.

ABG Suppl! has added new branches in Omaha, Ne.; N. Clarendon, Vt. (Dana Adams, branch mgr.); and Charleston, W.V. (Rod Siler, mgr.).

Weinman's Hardware, Bellmore, N.Y., closed Sept. 15 after 92 years, with the retirement of owner Roy Weinman, 90.

Habitat for Humanity is relocating its ReStore oiscount LBM outlets in Mount Airy, N.C.; Knoxille, Tn.; and E. Madison, Wi,, to larger quarters.

Habitat also recently moved its Marysville, Mi., ReStore to Port Huron, Mi., and purchased the former Decker Floor to Ceiling store in La Crosse, Wi., to move its local Restore into after the fall.

Henry Buys Roof Coatings Firm

Henry Co., El Segundo, Ca., has acquired West Development Group, LaGrange, Oh., manufacturer of silicone and spray polyurethane foam roof coatings for commercial and residential uses.

"We believe this acquisition will strengthen an already impressive portfolio of products and allow us to provide much needed solutions for our customers," said Mike Kenny, c.e.o. of Henry Co.

L.J. Smith Adds Stair Parts Maker

L.J. Smith, Bowerston, Oh., has acquired custom manufacturer/distributor Universal Stair Parts, Ballground, Ga., from Tom Hopson and Jeff Moyer.

In addition to retaining the Universal name, "L.J. Smith has promised to maintain current operations while investing new dollars in updating equipment, and upgrading computers to allow us to serve the customer more efficiently," Moyer said.

L.J. Smith president Craig Kurtz added, "The joining of forces will give us a strong manufacturing and distribution foothold in the Southeast and therefore brings added capabilities which will further strenethen our commitment to serve our customers."

Yard Owner Accused of Tax Fraud

The owner of seven-unit Gui's Lumber, Grand Island, N.Y., has been charged with collecting but failing to pay to the state about $589900 in sales tax from 2005 to 2OO9.

Gail Villani, 63, is accused of second-degree grand larceny, second-degree criminal tax fraud, and first-degree offering a false instrument for filing.

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Jeff Kern, ex-Seaboard International, is now senior buyer for Cox Industries, Orangeburg, S.C.

Russ Kathrein, ex-ProBuild, has been named president and c.e.o. of Alexander Lumber Co.. Aurora. Il.

Paul Colliton has rejoined Huttig Building Products, St. Louis, Mo., as senior director of product management. Greg Terlep, ex-Empire Co., is back at Huttig as general mgr. in Lakeland, Fl.

Paul Connelly, ex-US LBM, is now business development mgr. for Lezzer Lumber, Butler, Pa.

Mitzi Phillips has been promoted to assistant mgr. of Short & Paulk Supply Co., Tifton, Ga.

Zach Fornuto, ex-Huttig, has joined Mid-State Lumber, Branchburg, N.J., as territory mgr. for southern New Jersey and northem Delaware. David Baldino is new as territory mgr. for Connecticut.

Jason T. Ramaley, ex-Boise Cascade, is now Northeast district sales mgr. for Louisiana-Pacific, based in western Pennsylvania.

Laura Brown and Erik Engelhard are new to sales at Metropolitan Lumber, Warrenville, Il.

Warren Gardner, ex-Wurth Wood Group, was named branch mgr. of Bluelinx, New Orleans, La.

Ryan Chitwood is new to the trading staff at Capital Forest Products, Annapolis, Md.

Joey Dungy, ex-Huttig, is a new territory mgr. with Dealers Warehouse, Powell, Tn.

Judy Murray, ex-BB&S Treated Lumber, has joined the inside sales team at Boston Cedar, Mansfield, Ma.

Hagie Cook, ex-ECMD, is now Atlanta, Ga.-based Southeast territory sales mgr. for Endura Products. Colfax. N.C.

Jay Cole, ex-Norandex Building Materials, is new to Allura/Ply Cem USA, as territory mgr. for the Raleigh-Durham, N.C., area.

Ken Delle Donne has been promoted to president of Sunbelt Forest Products, Bartow, Fl. ClilT Daniels is now v.p. of procurement.

Scott Royer, ex-Carter Lumber, is now assistant store mgr. at Lowe's, Danville,Il.

Robert Hyde is new to sales at Sunrise Builders Supply, Horn Lake, Ms.

Suzanne Hearn has retired after eight years as v.p.-sales & marketing for Forest2Market, Charlotte, N.C. Tracy Leslie is new as director, forest biomaterials & sustainability services.

Kori McNeill has joined the sales force at Builders FirstSource, Shelby, Al.

Keith Williams is the new mgr. of Umber's Do it Best Hardware, Fort Wayne,In.

Jason Novak has joined the inside sales team at Boise Cascade, Sugar Land, Tx.

Carlton Martin, ex-Bluelinx, has joined Owens Corning, as McAllen, Tx.-based area sales mgr.

Joel Stopha is new to international hardwood sales with USA Hardwoods, Winchester, Va.

Kami Rogers is a new account mgr. at New South Construction Supply, Snellville, Ga.

Pete Skram, ex-Custom Building Products, is now Kansas City, Mo.based Midwest regional sales mgr. for Protecto Wrap Co., Denver, Co.

James Hand, ex-CertainTeed, has been named director of pricing at Masonite. Tampa. Fl.

Becky Gelula joined the sales team at Sterling Lumber, Phoenix, I1.

John Turland, ex-Greenwood Resources, is new to RISI, Boston, Ma., as senior international timber economist.

Jordan Hicks is a new lumber trader at Tampa International Forest Products, Tampa, Fl.

Andrew Solomon, ex-Premier Window & Building, is new to sales at Associated Materials, Capital Heights, Md.

Patrick Duffy has been promoted to v.p.-dealer sales for Wayne Dalton, Lewisville, Tx.

Jason Clay, ex-Allegheny Wood Products, is handling machinery sales in the Pittsburgh, Pa., area for USNR.

Cliff Langdon is the new v.p. of manufacturing at Soft-Lite Windows, Streetsboro, Oh.

Greg Koch, ex-REHAU, has joined Deceuninck North America, Monroe, Oh., as director of national fenestration sales.

Kyle Gibbons, Weston Forest Products, Mississauga, Ont., has been promoted to mgr. of the truss lumber sales group.

Earl Downing has joined DMSi Software, Omaha, Ne., as senior account mgr. for sales in the western U.S. and the LBM market nationwide.

Bill Parsons, ex-Weyerhaeuser, is now national director-architectural & engineering solutions for WoodWorks.

Jean Poole has joined the human resources department at MungusFungus Forest Products, Climax, Nv., report owners Hugh Mungus and Freddy Fungus.

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