The Merchant Magazine - February 2012

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The

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Special Features 9 FEATURE STORY THE SECRETS OF SELLING DECKING ONLINE

12 PRODUCT SPOTLIGHT COMPOSITE MANUFACTURERS ROLL OUT NEW DECKING LINES

14 PRODUCT SPOTLIGHT JAPANESE COMPOSITE DECK HITS THE U.S.

16 INDUSTRY TRENDS STRICTER GREEN STANDARDS FOR COMPOSITE PANELS

22 MARGIN BUILDERS OSB SUBFLOORING NOTCHES MOISTURE-FIGHTING INNOVATIONS

34 MANAGEMENT TIPS MAKE “VALUE ADDED” REALLY VALUABLE

44 PHOTO RECAP: HUMBOLDT CRAB FEED

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The Merchant Magazine February 2012

In Every Issue 6 TOTALLY RANDOM 18 FAMILY BUSINESS 20 OLSEN ON SALES 24 COMPETITIVE INTELLIGENCE 26 MOVERS & SHAKERS 28 KAHLE ON SALES 39 NEW PRODUCTS 46 ASSOCIATION UPDATE 46 IN MEMORIAM 48 CLASSIFIED MARKETPLACE 49 DATE BOOK 50 IDEA FILE 50 ADVERTISERS INDEX

February 2012

Volume 90 Number 8

Magazine

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The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872 by Cutler Publishing, Inc. Periodicals Postage paid at Newport Beach, Ca., and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states.

Copyright®2012 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

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TOTALLY Random

T

By Alan Oakes

Who wants to be a billionaire? Me!

1%! HOW DARE THEY! According to some of us in the 99%, the 1% possess most of the country’s wealth, lay off millions, pay no taxes, don’t care about anyone else, and are basically a blight on society. They are the enemy! They need to pay more to fund the healthcare reforms, the unemployed, and the bailouts, which have made them richer, while the rest of us lose our jobs and our houses, and pay our fair share of taxes. Really?

I am both a small business owner and a working employee (although, in truth, with a few more perks). But like most who read this column, I work hard to achieve business success, which allows me to provide for my family. Financially, I’ve experienced both good times and bad, but have always recognized that I live in a country that offers me with the opportunity to be who I want to be, one that has given me the freedom to pursue the life I’d earlier only dreamed about.

There has been much debate in the press, instigated by the Occupy Wall Street movement, filled with “us” vs. “them” rhetoric. I must say that I’m not one of the 1% by a long shot, but sure would like to be one. While that will never happen now, that aspiration has motivated me to succeed all my working life, starting in the U.K. back in the ’60s. Then, I was motivated by wanting more than my parents had. I never expected to be handed anything. I knew I had to work hard and be better than the next guy. I wanted to live and work where there would be rewards for what I achieved and if there was not (as has happened), I could move on and try something else (including changing continents three times).

The OWS movement suggests that we are heading for a class war. Yet it is complete nonsense to suggest that a gap between rich and poor is any different than in any other country or at any other time in history—although some could argue the gap is getting larger. Wealth (and sometimes obscene wealth) has existed from time immemorial, from the pharoahs in Egypt to the capitalist railway barons, the Communist elite (where all was supposed to be equal), and today’s tech inventors. Every country that has had wealth has had the wealthy and not-so-wealthy. The difference in the U.S. was that, if you came from nothing and were smart or, even better, had a great idea, you could succeed here like nowhere else. And, you were typically applauded for being a winner. Sadly, the tide is changing. There is an ever-increasing sense of entitlement.

Yet, it is that go-go entrepreneurial spirit that made this country so great. It’s why I made the decision 35 years ago, like many before me, to move to the USA, the international poster child for opportunity. Ironically, the likes of the late Steve Jobs, who 30 years ago might have fit in with the OWS protesters, went on to become one of the world’s richest men and no doubt enjoyed every dollar he earned. That’s America!

I have never regretted my own decision and take great pride in what I have achieved here. I do not believe I could have been more successful anywhere else. And though I’ll never have the wealth of the 1%, I don’t begrudge them their success. I have worked directly for billionaires. I’ve seen how they spend—and sometimes waste—their money.

I’ve even shaken my head at their lifestyles, but in most cases they earned it, along with the right to spend it how ever they want. They had the guts to risk everything, sometimes after losing everything and coming back fighting, to risk it all again and again.

Many of today’s super-rich were just like “us” in times past. Isn’t it great that we live in a country that gives us all that opportunity instead of the elite few? How many of us 99% drink coffee from Starbucks, helping to make its founder a billionaire? Or purchased Microsoft Windows? Microsoft has made over 10,000 “Us” employees millionaires, while enriching thousands of investors and allowing Bill Gates to become a very generous philanthropist. Successful companies benefit not only employees and stockholders, but the rest of us as well.

Its rags-to-riches stories have made America the most unique—and prosperous—nation in history, despite its warts.

Take that away and who do we become?

I am not blind. I know there is abuse—at all levels. There are too many tax loopholes that should be closed at a personal and corporate level. But the view that all millionaires and billionaires are cheats and not paying their fair share is disingenuous. I suspect the bigger issue is that many of us have become totally disillusioned, after so many people losing their jobs and homes.

I know a number of “millionaires”—including in this industry—who have also lost everything these past few years. Do not let us change what made this country great!

HOSE

Alan Oakes, Publisher ajoakes@aol.com

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The Merchant Magazine February 2012

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A publication of Cutler Publishing

4500 Campus Dr., Ste. 480, Newport Beach, CA 92660

Publisher Alan Oakes ajoakes@aol.com

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Contributing Editors Dwight Curran, Carla Waldemar, James Olsen, Jay Tompt, Mike Dandridge Advertising Sales Manager Chuck Casey ccasey@building-products.com

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FEATURE Story Online Decking Sales

The secrets of selling decking products online

T

HE DECK APPEARS to be stacked against selling decking online. The products can be long and heavy, and are typically purchased in full-project quantities.

Currently, most LBM dealers use their websites to provide product information to “physical customers.” E-commerce sales of decking are “maybe, one day.”

“I do see us selling decking online to local (25-mile radius) customers in the near future,” predicts Eric Murphy, sales manager for East Coast Lumber, East Hampstead, N.H. “I see (an e-commerce site for decking) as mostly a pro tool, since these guys are already familiar with the features and benefits of the products we carry. I don’t see any potential at this point for selling to long-distance customers, ‘Amazon style.’ Shipping and purchase requirements from the manufacturers would mitigate any perceived savings for the customer.”

Yet a number of companies have already found a way to make online deck sales work. The Merchant asked several to share the secrets of their success:

Boehlke: The biggest advantage is convenience.

Customers can sit at home on their computers and shop through the different items available on our site. We carry a number of different manufacturers’ products, so there are a lot of options to choose from.

A second advantage is the amount of inventory available. Most big box stores carry one or two manufacturers’ products, but in limited colors, quantities or sizes. Our site offers every size and option the manufacturers offer, and 90% of purchases are shipped within a day of order placement.

Ivancic: Customers can have access to a variety of sizes, lengths and species not available at their local yards.

Customers who want a few boards to finish a job or do a small project can shop online at their leisure when our phone center is closed. Customers can also take advantage of substantial savings, since many online companies are often structured with lower overhead cost.

Sweet: Customers receive wholesale pricing and can

The Merchant: What are the primary advantages to buyers of purchasing decking products online?

IPEDEPOT.COM is a popular online decking site launched by Advantage Trim & Lumber, Buffalo, N.Y.

The Merchant: How long have you been selling decking products online?

Jim Sweet (president/c.e.o., VinylFenceandDeck.com, Rochester, Mn.): Seventeen years.

Dan Ivancic (director of marketing, Advantage Trim & Lumber Co. and IpeDepot.com, Buffalo, N.Y.): Our e-commerce website research and development started back in 1993. We have been investing in our web presence long before having a company website became standard practice. These efforts have paid off, as online search engines tend to give preference to well-aged domain names. Since then, we have reinvested a substantial portion of our revenue into programmers and online marketing.

Jim Hourigan (v.p.-supply chain, BuildDirect, Vancouver, B.C.): We have been selling decking for over eight years.

Paul Boehlke (general manager, Deck Builder Outlet, Palos Heights, Il.): We have had a website that sold deckrelated products online since 1997, but the Deck Builder Outlet name and website were introduced and began selling products in 2005.

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February 2012 The Merchant Magazine

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HARDWOOD and composite decking are featured prominently at BuildDirect.com.

work with experts in fence and decking. Unlike a big box retailer that sells thousands of items, we only manufacture and sell vinyl fence and deck.

The Merchant: Is there anything unique to decking products compared to other building products that makes it easier or more difficult to sell online?

Ivancic: Decking, or any wood material for that matter, can be challenging to sell online since wood is a natural material and, of course, no two pieces look exactly the same. So the challenge is often to convince the customer that they will be happy with our staff selecting the product for them.

The long lengths of decking, up to 24', are also a shipping and handling concern, as some LTL carriers are not fully equipped or used to handling such long freight.

Conveying a company’s rock solid local reputation to a national level is an everyday effort, as Internet scam artists can taint the customer’s willingness to trust Internet retailers in any industry.

Hourigan: We make it easier for customers by providing a sample and delivery to the project site. So a customer can order online, check the sample the next morning for color and physical properties, and then have the product delivered without the hassle of going to a store or having to arrange delivery. Decking, especially 16-ft. boards, is a challenge to transport. We, with our freight partners, take the hassle out of getting the product home.

Boehlke: Most of the deck-related products you find on our site are packaged by the manufacturer, so they can be shipped UPS. Post caps, balusters, deck lighting, screws, connectors and similar products are packaged in small sizes. They can be purchased online and shipped to a customer’s home. A customer doesn’t need to worry about walking the aisles in a home center looking for these items and hoping they have them in stock.

The cost of shipping is somewhat offset by the savings in sales tax. Building products like framing lumber and bags of cement are too expensive to ship and are almost impossible to sell online.

The Merchant: Weight would seem a possible issue with actual decking. Are a large percentage of your customers

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The Merchant Magazine February 2012

located geographically close to your point of shipping?

Hourigan: Yes, we agree that weight and the length of certain deck products may be an issue for some retailers, but we used our demand data to determine the best place for our multiple distribution center system. This system helps us provide the customer with both reduced freight costs and lead times. Also, because of the amount of freight we move, our freight rates are among the best in the industry so our products travel efficiently from our warehouses.

Ivancic: Weight is a major issue. We went through great pains to ensure we were using accurate freight quotes, as tight margins can easily be eaten up by a misquoted freight price. The last thing a customer ever wants to hear is that their price changed because of inaccurate shipping figures, so it’s typically on the dealer to absorb any freight cost discrepancy. As for geographic locations, our customers are spread across the entire U.S. and the world, so it entails searching many carriers to maintain competitiveness.

Sweet: We ship worldwide. Location is not an issue. All of our quotes include shipping.

Boehlke: We sell composite decking, but only in the Chicagoland area. It’s simply too expensive to ship nationally. Most brands are available locally throughout the country, so even if we have lower prices, the cost of shipping puts the price above what a local store may sell it for.

I had a customer on Long Island that compared our composite decking prices to his local supplier. Our cost on the decking alone was over $800 less, but the cost to ship it to him from Chicago would have offset those savings. We offer composite and vinyl decking comparisons on our site, but due to shipping costs, don’t offer (vinyl) for sale.

The Merchant: Do you accept returns if customers order too much?

Hourigan: We do not accept returns of, say, a single board. We encourage customers to keep any small pieces left over in case they may need to replace a piece that may get damaged in the course of use. Our product experts talk with customers to get the right amount for their job. If they have a significant overage and the product is able to be resold, we will accept a return with certain conditions.

Ivancic: Yes, we accept returns. Returns are often remilled into smaller sizes to remove scratches and dings from excessive shipping across the country and back.

Sweet: For most deck projects, we suggest ordering 10% extra for cuts and unforeseen modifications. We work with each customer on their project, so that the order is usually right on the mark. This is an advantage with working with an expert company that sells only fencing and decking.

Each project is unique, and our job is not done until the deck is installed properly. We provide 24/7 install support.

Boehlke: We allow our customers to return unopened products for a refund. Our policy states that the customer has 30 days to return the items, and there will be a 15% restocking fee. We allow some flexibility on those rules.

The Merchant: Decking can be an intimidating product to buy sight unseen. Does the “typical customer” seem to have done his/her homework, shopped around, and know exactly what (s)he wants, or does (s)he typically have question after question before ordering?

Hourigan: We have customers that are very knowledgeable, including many contractors who buy from us for all their jobs. They know what they want, but also want to know of new products or trends that we see that can help their business. We also have d-i-y customers that need a lot Building-Products.com

more information to ensure they have a successful project.

We advise on things like spacing, clearance, etc.

Ivancic: We deal with a variety of customers, from wood experts to first-time users. Purchasing any product online can be scary, but typically our customers are comfortable with our strong reputation of supplying products to the â&#x20AC;&#x153;sight unseenâ&#x20AC;? buyer, as they have often seen a job we supplied in their area, previously visited one of our milling facilities, and have done extensive online research.

Educating the customer can be a big investment, as it often takes the same amount of time to talk a new customer through an order of a couple boards as it does an order of several bundles. This makes customer retention an even more important part of everyday business, as repeat customers become the true profit center.

Sweet: Some customers know exactly what they want, others require full support. Our typical customer already has a rough idea of their needs, and we then help them to provide a detailed quote for their project.

Boehlke: The majority of our composite decking sales are to deck builders who know about the different manufacturers and their respective lines, so they know exactly what they want. Composite decking is very uniform and does not have to be picked through like cedar or treated decking.

A homeowner usually does have a lot of questions and needs guidance in differentiating the types of composite and vinyl decking that are available. Even after explaining the differences, we still recommend that the customer stop by to pick up samples to compare the colors.

The Merchant: What are the prospects for future growth in online decking sales?

Hourigan: We are seeing huge growth online for this category and forecast much more. Building products and decking in general have not yet achieved a significant percentage of sales online compared to other categories, but the trend is unmistakably clear. Every day more and more people are becoming more comfortable buying building products online, and this is due to how we treat customers and deliver great products and great prices with no hassles.

Ivancic: We see continued growth for online decking sales as the overall economy improves; however, the risk of rising freight cost, government regulation on Internet sales, and increased competition are always looming issues.

Sweet: We are of the opinion that the market will continue to grow. The majority of consumers are committed to receiving the best price, along with the best service available and are unable to find this local, so going online and working with an expert in the field can provide a solution to the problems of buying local from big box retailers.

Boehlke: We were one of the first websites to offer deck-related products online. Back in 2005, our best-selling products were wood post caps, deck screws, and connectors that were used on wood decks. Now with the popularity of low deck maintenance growing, our site has seen large sales increases in aluminum balusters and post caps, along with composite and vinyl railing systems, which are replacing their wooden counterparts.

Many people building new decks and those rebuilding their old ones are looking for low maintenance, not necessarily on the decking but more so on the railings, which is what most of the products on our site offer. The new lines of LED deck lighting are also catching on. As the economy builds more steam and the low deck maintenance and LED lighting ideas grow, I think the online deck product sales can see additional growth. At least I hope so.

Building-Products.com

February 2012 The Merchant Magazine

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PRODUCT Spotlight New in Composite Decking

Composite makers roll out new decking

A

S DECK SEASON approaches, manufacturers of composite deck boards are introducing new products—or expanding and improving old ones.

Advanced Environmental Technologies Inc. is the proud parent of NanoShield, the first composite deck board to incorporate nanotechnology.

The Springdale, Ar., company devel-

oped the new product in partnership with NanoMech, Fayetteville, Ar. The process bonds inorganic nanoparticles to treated wood particles to form a durable shell of similar composition.

“We believe nanotechnology will be one of the next technology leaders for this industry,” says chairman and c.e.o. Joe Brooks. “AERT’s NanoShield board will represent a game-

changing product with unmatched performance and characteristics.”

Brent Gwatney, v.p. of sales and marketing for AERT’s MoistureShield brand, says that NanoShield will be a “high-end product that will look more like wood. It will be something to compete with cellular PVC and capstock composites.”

TAMKO Building Products, Joplin,

TIMBERTECH has added three new colors—brick, slate, and brownstone—to its new Earthwood Evolutions collection.

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The Merchant Magazine February 2012

Building-Products.com

decking portfolio and provide consumers with a composite product that features a multitude of innovative features,” says Ronald W. Kaplan, chairman, president and c.e.o. “We’re establishing a clear ‘good, better, best’ decking line-up, which allows consumers to select the ideal product to meet their outdoor living needs.”

TimberTech, Wilmington, Oh., has added three new colors—brick, slate and brownstone—to its new Earthwood Evolutions collection.

Featuring proprietary HydroLock technology, the line is the company’s first fully capped composite decking product, with a flat-grain surface that doesn’t trap dirt and a consistent variegated color for the look of hardwood.

“The success of Earthwood Evolutions exceeded even our expectations, but we knew that customers were looking for a product with increased scratch, stain and fade resistance coupled with unmatched aesthetics,” says product manager Toby Bostwick. “The collection brings the same high performance qualities with

ARMADILLO DECK by Master Mark Plastics has wood grain on both sides, in four colors: painted desert, canyon gray, Sedona, and driftwood.

Mo., plans to introduce a new compression-molded deck board that is capped on three sides, but details have not been released. However, industry sources believe that the new product will be christened Envision, the same name used in 2009 for a PVC deck board that failed to gain significant market share.

The new product will be produced using TAMKO’s compression-molding manufacturing process—already used for the company’s EverGrain composite decking—which experts say gives boards a deeper grain and texture than composite boards that are injectionmolded.

Armadillo Deck is the latest offering from Master Mark Plastics, Albany, Mn., which also produces Rhino Deck. The composite boards are made from a proprietary mix of wood pulp and recycled, high-density polyethylene plastics, then fully wrapped with a tough polyethylene coating to resist fading, weathering, scratching, stains, and mildew.

Available colors are painted desert, canyon gray, Sedona, and driftwood, with wood grain on both sides.

Trex Co., Winchester, Va., recently introduced Enhance composite decking, which is positioned between its Transcend and Accents lines. Like Transcend, Enhance has a three-sided shell that protects against staining, fading, mold, rot, cracks and splinters.

Available in two colors—clam shell and beach dune—Enhance decking is manufactured from 95% recyBuilding-Products.com

cled content, including reclaimed wood, sawdust and plastic bags.

“Enhance will both expand and strengthen our high-performance

NyloDeck Expands Distribution

Nyloboard LLC is expanding distribution of its NyloDeck, NyloTrim, and NyloSheet products in the Southeast.

Produced from 100% recycled carpet fiber and VOC-free bonding resins, the products are also available in California and Hawaii.

“We spent much of last year modifying our process to become much more efficient, so we could become more competitive and be able to produce much more volume,” said Kevin Guthard, vice president of operations for the Covington, Ga., company.

Last year, the company’s 200,000sq. ft. plant was modified and new equipment was added so loose-fill carpet fibers could be used, which significantly lowered manufacturing costs.

“The challenge has mostly been in manufacturing,” said Guthard. “We had to travel across the globe to make sure we have the right technology and equipment for manufacturing.”

Guthard believes that NyloDeck has an advantage compared to other alternative decking products because it looks like hardwood. It also has natural resistance to mildew and water because it is made from 100% recycled

carpet fiber and bonding resins that are free from volatile organic compounds.

Available in three colors—caramel, cocoa and gray—NyloDeck has an ultraviolet coating for fade-resistance and can be installed with conventional building tools.

“It is impervious to moisture and water because there is no wood in the product,” said Guthard. “It also appeals to people who appreciate the idea of diverting carpeting from a landfill.”

NYLOBOARD is expanding distribution of NyloDeck, produced from 100% recycled carpet fibers and VOC-free bonding resin, in the Southeast this year.

February 2012 The Merchant Magazine

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a color palette that offers customers a more traditional choice.”

Universal Consumer Products, Grand Rapids, Mi., is unveiling the next generation of co-extruded composite decking under its Latitudes Capricorn and Captiva brands. The new product has a more natural looking, realistic grain pattern that is resistant to scratches, stains and fading.

“The new cap stock we’ve employed is highly durable and proven in many exterior applications,” says sales manager Geoffrey Meyer. “Builders, d-i-yers, and homeowners will appreciate its great looks and exceptional performance.”

ProTekt capped composite deck boards from Fiberon, New London, N.C., are now offered in four colors: two solids, canyon brown, and harbor gray, and two multi-chromatics, chestnut and gray birch. Each board has a rigid core that is encased on three sides with a patent-pending, non-organic surface material that is resistant to staining, fading, scratches, and mold.

“The best aesthetics in alternative decking products drive market demand,” says marketing director Edie Kello. “Fiberon offers homeowners innovative, low maintenance products that retain their beauty for years and enhance their quality of life and the value of their homes.”

Natures Composites, Torrington, Wy., mixes recycled milk jugs with wheat straw cellulose to produce TerraDeck composite decking in three grades: standard, premium, and ulti-

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The Merchant Magazine February 2012

EINWOOD TECHNOLOGY from Japan is behind GeoLam wood-plastic composite decking.

Japanese Composite Technology Hits U.S.

Geolam Inc., Toronto, Ont., is bringing wood-plastic composite decking, siding, and trim products—developed in Japan and widely used around the world—to the U.S. “We want to bring a whole new level of sophistication to the evolution of wood in the American marketplace,” said Ron Factor, who co-founded Geolam Inc. with Christian Stephan seven years ago.

“Geolam-brand products grace the finest buildings in the world, yet have been unavailable in North America,” said Stephan. “With much research, independent third-party testing, and market analysis, we concluded there is

a strong need for WPC materials of this caliber in the U.S.” The patented Einwood technology removes 100% of the moisture from the wood-fiber so the injected plastic is fully integrated or embedded, to create a new homogenous product. It is fully recyclable, has no formaldehyde emissions, and is free of all solvents and chlorine. According to Geolam, it’s the only wood-plastic composite to earn Eco-Mark certification.

“The results were very positive and undeniably set a new standard for composite decking performance with the U.S.,” said Factor. mate. All three contain 94% recycled content and 6% non-toxic adhesive.

Formerly known as Heartland BioComposites, the company is now owned by the RRM Composites investment group, which stepped in when Heartland went bankrupt and closed its doors after defaulting on loans of more than $5 million.

Current vice president Heath Van Eaton founded the company and developed the products, which recently received building certification from ICC Evaluation Services, a subsidiary of the International Code Council.

“The market’s been soft, but this year is looking much better,” said Kim Boos, national sales and marketing manager. “We are priced 15-20% less than traditional wood-plastic composites, and we have a green story that resonates with people.”

Building-Products.com

INDUSTRY Trends Composite Panel Certification

Stricter green standard for composite panels

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HE COMPOSITE PANEL ASSOCIATION is rolling out a new voluntary eco-certification standard for composite wood panels and finished products made with particleboard, MDF, hardboard, and engineered wood siding and trim.

The Eco-Certified Composite Standard (CPA 4-11), or ECC Sustainability Standard, is a more rigorous successor to CPA’s Environmentally Preferable Product specification and certification program. The EPP program was established in 2002 and is currently in wide use throughout North America.

The basis of the ECC standard includes the “CPA Carbon Calculator,” a tool developed by a third-party expert to assess the life cycle and carbon footprint of composite wood panels made at a particular manufacturing plant.

The first ECC-certified wood products were introduced in recent months, while the EPP program will be sunset on

COMPOSITE PANELS or finished products made with composite wood may now feature the ECC certification stamp on panel unit bundles, purchase documents, or other informational materials.

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March 31, 2012.

The North American composite panel industry is predicated on the optimal use of forestry byproducts and residuals—turning this raw material into higher value products so it’s not burned or landfilled. Some consider composite wood panels, by their very nature, to be among the greenest products available for architectural, construction and consumer products.

It’s a great green story, says CPA, but it’s not enough.

Today’s architects, designers, retailers and consumers want verifiable evidence of greenness, and the ECC certification program offers that assurance. Only products carrying the ECC seal are produced in a manufacturing plant or other facility that is audited and certified by the CPA. ECC certification is granted on an individual manufacturing plant basis, and is subject to an on-site qualification audit and subsequent annual on-site audits by CPA. Composite panel products must first comply with the stringent California Air Resources Board (CARB) formaldehyde emission regulation. In addition, the panel manufacturing facility must meet at least three of the following requirements: • Carbon Footprint – The plant must demonstrate that the panel’s carbon store offsets its carbon footprint cradleto-gate as determined in kg-CO2 equivalents of greenhouse gas (GHG) emissions. Each plant must use the CPA Carbon Calculator to determine if its panels perform as a carbon sink, resulting in overall net carbon storage.

• Local and Renewable Resource – At least 85% of wood fiber must be sourced within 250 miles of the panel plant.

• Recycled/Recovered – At least 75% of wood fiber must be recycled or recovered or at least 50% recycled or recovered wood fiber plus a minimum of 5% post-consumer wood fiber.

• Sustainability – At least 97% of wood fiber is converted to panels or re-utilized as a valued product. Non-valued products include wood residuals shipped to a landfill, material hauled away for a tipping fee as waste material, and boiler ash waste.

• Wood Sourcing – Conformity with FSC Controlled Wood Standard (2008), FSC Chain of Custody Standard (2008), or SFI Fiber Sourcing Requirements (2011).

ECC panels may help achieve LEED credits for recycled content, regional materials, certified wood, and lowemitting material.

Building-Products.com

Sea-Sno Mill to Close

Open since 1941, SeattleSnohomish Mill, Snohomish, Wa., has notified its 50 employees that it will close next month.

“This is a very difficult decision,” said owner Megan McMurray. “We have a dedicated work force, some of whom have been with us for more than three decades.”

She blamed the collapse of the housing and construction industry for closure of the mill. Nearly 4,000 building permits were issued for Snohomish County in 2006, compared to less than 2,000 last year.

Timber harvests also fell, from about 3 million bd. ft. in 2005 to about 1.8 million bd. ft. in 2009.

RSG Buys Washingtonʼs Intermountain Supply

Roofing distributor Intermountain Supply, with DCs in Seattle and Spokane, Wa., has been acquired by Roofing Supply Group, Dallas, Tx. “Founded in 1995, Intermountain Supply has established itself as the leading roofing supply distributor in the state of Washington and throughout the Northwestern U.S. and has an excellent reputation,” said RSG president and c.e.o. Mike Farrell. “We had identified Washington as an attractive market for RSG’s entry in 2011, and we are thrilled to partner with the IMS team to extend our footprint into this new geographic region.”

RSG serves roofing contractors and homebuilders from 58 branches in 23 states.

Murphy Expands Panel Mill

Murphy Plywood is building three structures totaling 60,000 sq. ft. at its plywood plant in Rogue River, Or. The expansion will boost the size of the mill, currently 164,000 sq. ft.,

by one third. Murphy is also installing new machinery to create value-added plywood and is constructing a rail spur to improve shipping.

Two years ago, Murphy paid $3.6 million for the mothballed facility previously operated by Panel Processing, Alpena, Mi., and restarted it in December 2010.

Murphy also operates a hardwood plywood mill in Eugene, Or., and a structural beam facility in Sutherlin, Or.

DEALER Briefs

City Mill Co. is building a 45,000-sq. ft. store in Ewa Beach (Oahu), Hi., to open by year’s end.

Demolition began on All American Home Center ,

Downey, Ca., Jan. 16, one month after the 52-year-old business closed.

Three-unit King’s Ace Hardware , Billings, Mt., has acquired Laurel Ace Hardware , Laurel,

Sears Spins Off OSH

Sears Holding Corp. completed its spinoff of Orchard Supply Hardware, San Jose, Ca., effective Dec. 30.

The 87-unit hardware chain now trades on the Nasdaq market as “OSH.”

Mt., from Dean Rankin, who is retiring after 31 years.

Laurel Ace will retain its name as well as longtime mgr. Reece Garrett.

Ace Hardware is opening a 9,300-sq. ft. store next month in Seaside, Or. (Winfield Muffett, owner).

Coating Company Adds Contractor Supply Store

Meeks Lumber & Hardware’s shuttered 6-acre site in Grass

Eco Building Products has opened a retail store for contractors and homeowners in a newly expanded space at its headquarters in Vista, Ca. The new space offers Eco Red Shield treated lumber products, JeldWen windows and doors, Decra roofing systems, and Superior Universal Vinyl fencing to the general public.

The company also recently began treating wood at its new, 30,000-sq. ft. coating facility in Salem, Or., which is located on a rail spur.

“ECOB has been on the move throughout the stagnant housing market and is well positioned in the right markets,” said president and c.e.o.

Steve Conboy. “Our efforts are starting to show results with this new coating facility positioning us closer to where the trees turn into lumber.

Now we can cost effectively deliver Eco Red Shield products to Hawaii and northeastern regions.”

Valley, Ca., has been placed up for sale for $3.349 million.

Brinton’s, Carmel, Ca., abruptly closed Jan. 22 after 51 years.

Lowe’s has canceled plans to build a store on 20 acres in Salinas, Ca., which had been approved by the city in October.

Nelson Auctions, Porterville, Ca., liquidated inventory during a Feb. 3-4 auction at Lowe’s former store site in Los Banos, Ca. The home center closed last October due to underperformance.

City Lumber Co., Astoria, Or., was voted the area’s best home improvement store by readers of the Daily Astorian.

Cal Coast Wholesale Lumber, Inc. Pressure Treated Forest Products Alkaline Copper Quat (ACQ) Custom Treating Selected Inventory Available

P.O. Box 673 • 3150 Taylor Drive • Ukiah, Ca. 95482 Phone 707-468-0141 • Fax 707-468-0660 info@wetreatwood.com

Sales for Coast Wood Preserving

Building-Products.com

February 2012 The Merchant Magazine

17

FAMILY Business

By James Olan Hutcheson

Dealing with a death in the family business

I

’VE BEEN WORKING as a family-business consultant full time for more than 15 years. In 2006, three of my clients died, which is more deaths than I’ve experienced during my entire career. With every family I work with, I take steps to prepare their business for a death, setting up succession plans and buyout agreements. But all the planning in the world couldn’t have prepared me for how to handle the aftermaths of these three deaths.

Like each family, I was put to the ultimate test following each death. My counsel and wisdom were quickly shown to either work or not work. Until you’ve lived through a death in a family business, you just don’t know what’s going to happen. And the effects on the business will vary depending on the way the family deals with the loss: Reactions can range from temporary shock to falling apart to continuing to function relatively normally.

In one scenario, two of the family’s three sons had been locked in a long conflict, causing the business to suffer, and I had been hired to help resolve it. But then the son who wasn’t involved in the conflict died. One of the two rival brothers tried to leverage the death to gain an advantage, by suggesting that the actions of his rival brother caused the death and refusing to join hands with his family in mourning. The elderly parents, who still served as leaders of the business, weren’t prepared for this and my work salvaging the business took a major step backward.

The whole experience showed me that in a deeply conflicted family, tragedy can drive members further apart instead of bringing them closer together.

An Incomplete Bequest

In the second family, the father and founder of the business died unexpectedly. While the business was prepared for his death, with wills and other arrangements already in place, the family wasn’t. And to make matters worse, the founder’s spouse enforced certain terms in his will to lash out at the couple’s son-in-law, who hadn’t worked for the family business because he hadn’t gotten along with the founder. But what was in the will wasn’t what the founder had ultimately intended. That’s because after the son-in-law and the founder had gone their separate ways businesswise, emotions cooled and their relationship had improved.

Unfortunately, the founder died without having changed

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The Merchant Magazine February 2012

his will to reflect his change of heart. As a result, the surviving spouse took action to give the business to her children, who weren’t involved in it and didn’t live in the state, probably not the best outcome for the business. The experience showed me that even when all the proper succession planning steps are taken, a death can bring out the most unexpected reactions in family members. In fact, their actions can foul up what seem like welllaid plans. The hard-earned lesson is to review estate plans on at least an annual basis or upon each significant life event.

In the third family, the father had sold his family business and collected a sizable payout. This is what I think of as a natural evolution, a sunrise-sunset scenario. He had planned appropriately by transferring assets, obtaining suitable life insurance, and otherwise managing his estate to prevent estate taxes from gutting the business. Sadly, he died shortly after he had completed the sale and was unable to enjoy the fruits of his hard work.

Expecting the Unpredictable

I found myself acting almost as a grief counselor to his widow. It wasn’t a role I had filled before but one I fell into because I was considered a source of stability as the family’s longtime business consultant.

The reactions of the three families taught me that there’s more to the game of family business consulting than I had realized, despite my years of experience. I realized the job isn’t just about installing the right procedures and plans. I learned that when clients are vulnerable, a good bedside manner is worth more than an business-school MBA. That was my takeaway. Perhaps it seems pretty obvious.

Family members aren’t billiard balls you can spin a certain way and consistently expect a certain result. In my consulting engagements from now on, I’ll continue to get the processes and policies in place to produce the result that seems appropriate. But I’ll also be ready to adapt to the unpredictable needs of the family members during the unexpected tough times.

– James Olan Hutcheson is managing partner and founder of Dallas, Tx.-based family business specialist ReGeneration Partners. Reach him at (800) 406-1112 or regeneration-partners.com Reprinted with permission of ReGeneration Partners. No portion of this article may be reproduced without its permission.

Building-Products.com

OLSEN On Sales

By James Olsen

The Goddesses of Yes, No and Maybe

C

ONIFIDENT SELLERS GET 80% of the business in any market. Why? Because people want to be associated with winners.

Confidence is the ultimate aphrodisiac. Humans are drawn to confidence more than anything else. The opposite is also true. When sellers lack confidence, customers will do everything they can to avoid them.

In 1893, the Italian socio-economist Vilfredo Pareto (1848 – 1923) observed that 80% of the wealth in Italy was owned by 20% of the people. Upon further study, we see that Pareto’s Principle affects more than just wealth creation: • 20% of the carpet in the room you are sitting in gets 80% of the wear.

• 20% of the players on a basketball team score 80% of the points. Scorers are not afraid to miss and will continue to shoot despite misses, while the majority of players (80%!) become more conservative in their shot selection or stop shooting altogether.

• 20% of the fishermen catch 80% of the fish.

• 20% of the sellers in every industry get 80% of the business!

Think about #4. If we are not in the top 20%, we are fighting over 20% of the business with 80% of the competition. No wonder many sellers are miserable.

What are the top 20% doing differently? Confidence is the main ingredient in their recipe.

Yesville

The only way to Yesville is through Noville. Many sellers are so afraid of the No they will never get to the Yes. Master sellers fail at a 90% rate, while struggling sellers fail at a 98% rate. The struggling seller looks at master sellers and thinks they are selling all the time. They are selling four to five times more than their weaker-selling brethren, and they make it look easy, BUT they are still in the 90% rejection business! In fact, master sellers get more No’s in a week than struggling sellers get in a year! The crucial difference between these two groups is not experience or product knowledge. It is their relationship to Yes, No and Maybe.

Yes, No and Maybe. Master sellers are not afraid of the No. They search it out. What they are disdainful of is the Maybe. The struggling seller will take the Maybe, a fool’s

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The Merchant Magazine February 2012

gold victory, because of their fear of the No. Forgetfulness. Master sellers forget about No’s. No leaves a lasting impression on the struggling seller.

Denial. For the master seller, No does not exist. “Let’s not call it ‘No,’ let’s call it ‘We’ll do business in the future’” is the attitude of the master seller, while the struggling seller will be emotionally bruised for an hour, day or career because of a simple No.

The Three Goddesses

There are three goddesses. The Goddesses of Yes, No and Maybe. The Goddesses Yes and No hang out with winners, while the Goddess of Maybe, while initially the most attractive, if only for ease of access, will turn any salesperson that falls for her into the dreaded Willy (or Willamina) Loman.

We must have a good relationship with the Goddess of No. In fact, when we chase after her, the Goddess of Yes will become jealous and chase after us.

If, on the other hand, we fear the Goddess of No and consort with the Goddess of Maybe, Goddess Yes will run from us and the Goddess of No will kick us around just for fun.

What is your relationship with the Goddess No? Do you fear her? Avoid her? The Goddess No is a wild animal. If she smells fear, she will mangle us. But if we show confidence, she will find someone else to pick on.

Author Neil Straus, in The Game, suggests that if we treat our potential sweethearts like queens, they’ll treat us like paupers.

He advises treating them like our “best friend’s little sister” (i.e., tease and flirt with them, and they’ll treat us like kings).

The same can be said for the Goddess of No. We should have a playful, nonchalant attitude with her and she (and our customers) will treat us like sales kings!

James Olsen Reality Sales Training (503) 544-3572 james@realitysalestraining.com

Building-Products.com

SUPPLIER Briefs

M&L Enterprises , Crescent,

Or., closed with the death of owner Lawrence Gieber and auctioned off its rolling stock and post peeling equipment Jan. 19.

BlueLinx is now distributing TerraDeck composite decking from Natures Composites, Torrington, Wy., in test markets Denver, Co.; Portland, Or., and Tampa, Fl. Tiger Deck’s Tigerwood decking products are now approved by the California Department of Forestry & Fire Protection for construction in the Wildland Urban Interface areas.

Competing New Mexico Hardware Stores to Merge

After 52 years, Triangle Ace Hardware, Clovis, N.M., is merging with local competitor Burns Hardware Do-It Center.

Next month, Burns will close its Clovis store and move into Triangle’s larger location, under the purview of Burns owner James Burns.

“The merger with Triangle will allow Burns’ loyal customers a greater selection of merchandise, including lumber and building materi-

als,” said Burns. “It will also give Triangle’s customers access to Merrilat cabinets, Mohawk, Beaulieu, and Shaw flooring, as well as installation on those items.”

Triangle owner Richard Petty will take “a less active role” in the business, while general manger and IT administrator Randy Petty will depart, after 37 years with Triangle.

Burns also operates Burns Hardware stores in Tucumcari and Raton, N.M., and Texline, Tx.

Pacific Western Wood Products, Los Angeles, Ca., is now distributing Kolay Flooring International’s Luxury Vinyl flooring and has added a Kolay flooring showroom.

Conifex Timber , Vancouver, B.C., has completed its acquisition of Welco Lumber’s commodity lumber distribution business and Navcor Transportation Services’ transportation and logistics business.

Weyerhaeuser Co. , Federal Way, Wa., sold its OSB mill in Miramichi, New Brunswick, to P.Q.-based Arbec Forest Products . The facility has been closed for five years.

Vista Pointe Architectural Systems, Gilbert, Az., is now incorporating optional Hurd aluminum clad

With Cascadia decking, the unsurpassed natural beauty of Western Red Cedar is matched with Terminal Forest Products’ renowned manufacturing quality. This creates a product that is beautiful, functional, and eco-friendly.

Cascadia decking is made from a 100% renewable and sustainable North American resource unlike PVC and composite decking, which is largely made from non-renewable petroleum products. Third-party life cycle analysis clearly shows WRC decking as the best environmental choice for decking: WRC significantly outperforms sustitute products in every environmental measure.

Cedar decking is low maintenance, naturally resistant to decay and insects, and has decades of proven performance. Pair that with TFP’s excellent reputation for quality and you have the best possible product for your decking.

door panels in its folding and sliding patio door systems.

CalStar Products is relocating its headuarters and R&D activity from Newark, Ca., to its manufacturing plant in Caledonia, Wi.

Pacific Lumber Inspection Bureau has been approved by the American Lumber Standards Committee to serve as a third-party auditing agency of the Pellet Fuels Institute’s densified wood pellet monitoring and labeling program.

Anniversaries: Simpson Door Co. , McCleary, Wa, 100th …

Milgard Windows & Doors , Tacoma, Wa., 50th … Riddle Laminators, Riddle, Or., 45th …

Building-Products.com

Available from Discerning Distributors in Your Area February 2012 The Merchant Magazine

21

MARGIN Builders Premium OSB Panels

OSB subflooring notches moisturefighting innovations

T

NOTCHED Down Pore drainage grooves channel water off the surface of Weyerhaeuser’s Edge Gold OSB subflooring panels.

OSB has traditionally been its susceptibility to moisture. When the panels get wet, their edges swell. Consequently, home builders often must sand OSB subflooring to ensure their floors are flat.

But moisture-fighting innovations over the last several years have helped OSB take over a majority of the subflooring market. And, the upgraded panels have dealers again marketing OSB as a premium, instead of a commodity, product.

Most recently, Weyerhaeuser has added another feature to its premium Edge Gold flooring panels to further enhance the panels’ resistance to rain and moisture. The company’s new Down Pore self-draining technology channels water from the panels’ surfaces and drains it off the joists below. Along with a high-performance edge seal, this helps reduce construction delays for contractors during inclement weather.

The Down Pore technology consists of three specially shaped drainage grooves on one of the narrow ends of each 4x8 panel. The unique design resists clogging from sawHE KNOCK ON

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The Merchant Magazine February 2012

dust or adhesive, and allows water to drain even if the panels are not properly gapped. Preventing standing water reduces water absorption and helps maintain the floor system’s integrity.

“The new Down Pore technology removes the need to sweep pooled rainwater off the floor or drill holes to let it through,” said Bob Olson, engineering & technical director for Weyerhaeuser OSB. “Our new self-draining panel design removes water quickly, reducing the drying time needed before installing finishing materials. That can save several days or more during construction. Plus, our proprietary edge sealant also saves builders time and money since they do not need to sand panel edges to achieve a smooth surface.”

Other recent enhancements to Edge Gold panels include a proprietary edge seal formulation that significantly reduces edge swell, and extension of Weyerhaeuser’s “no sand” guarantee for the panels from 90 days to 200 days.

The move follows on the heels of Ainsworth’s introduction last year of its PointSIX subflooring. It features a patented tapered-edge technology whereby a thin layer of the highly compressed fiber along all four edges of the OSB panel is milled off, removing the part of the subfloor that’s most prone to swelling. PointSIX takes its name from research results indicating a .6mm taper depth to be the most effective in reducing edge swell.

The taper on PointSIX is almost imperceptible, and it’s

RATHER THAN resist moisture, Ainsworth’s pointSIX acknowledges that OSB swells and accommodates the effects of moisture via its tapered-edge technology.

Building-Products.com

a dimension that wonâ&#x20AC;&#x2122;t require sanding. With moisture, the wood fibers expand to essentially â&#x20AC;&#x153;fill up to flushâ&#x20AC;? the micro-taper. If no moisture contacts the engineered subfloor, it does not require any filler or mastic. APAapproved for structural integrity, PointSIX features a precise tongueand-groove profile for a secure fit.

According to Mark Sutherland, Ainsworthâ&#x20AC;&#x2122;s general manager of marketing, â&#x20AC;&#x153;We created PointSIX and its patented edge taper to accommodate the effects of moisture and put an end to a problem that builders have long struggled with: OSB edge swell. The industry response since the productâ&#x20AC;&#x2122;s introduction has exceeded our expectations, with our dealer partners reporting positive feedback from customers who no longer have to factor edge sanding into labor and budgets.

More important has been what we havenâ&#x20AC;&#x2122;t heard: Since introducing pointSIX, weâ&#x20AC;&#x2122;ve received noticeably few callbacks due to edge swell or other moisture-related problems.â&#x20AC;?

Huber has long marketed its AdvanTech, Norbord its Stabledge, and LP its TopNotch subflooring as premium products that offer minimal water absorption, 50-year warranties,

and guarantees against the need for sanding. (TopNotch, in fact, gets its name in part from its RainChannel notch system that helps protect the OSB against moisture absorption and edge swell.)

They and other OSB manufacturers continue to improve their resins, sealants, and manufacturing processes, committed to making OSB a maximum-value-added building product.

IN ADDITION to its 180-day no-sand guarantee, PointSIX Durastrand flooring reportedly is the only OSB on the market to carry a limited lifetime warranty.

Help your builders start smart, finish strong.

Choose Universal as your key building products supplier.

Universal has been a key supplier in Southern California for years.

With the broadest lineup of lumber and specialty products in the area, itâ&#x20AC;&#x2122;s no wonder why dealers look to UFP as a key supply partner.

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February 2012 The Merchant Magazine

23

COMPETITIVE Intelligence

By Carla Waldemar

Jack’s be nimble

L

IKE A LOT of people reading this magazine, Jeffry Peters grew up working in his dad’s lumberyard— hauling bags, waiting on customers, sweeping the proverbial floor. Then, like some of you, too, he felt the urge to strike out on his own.

He did some reconnoitering, found a nearby town where new homes were sprouting, and decided to earn their business. To open his own yard there, he had a metal structure built—like dad’s but a tad more compact—then completed all the interior work himself, with the help of a couple of buddies. By putting in sweat equity, he says, he not only achieved the “clean and modern” operation of his dreams but—important—saved himself a pile of cash.

Jeffry opened Jack’s Home Improvement Center (named after his dad and mentor) in Wiggins, Ms., exactly nine years ago. Today, he’s 29. Do the math and gasp.

Not a big fan of academic learning, Jeffry picked up his business acumen—and, as we’ll see, there’s no shortage of it—on the job, based on innate smarts and passion. “I had the heart to be successful, to go out and do my own thing. I admired what my dad was doing. So, at 20, I picked this community and brought in lumber and hardware, and I moved my family.” True to form, “I married young,” he adds.

Why Wiggins? “There was a void—no lumberyard— and there’s a real good highway, 45, to feed off of. They call it ‘Main Street Mississippi’,” serving the countryside of 30,000 as well as tiny Wiggins, pop. 5,000, sought after as an ideal place to live for many who do a 30-mile com-

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The Merchant Magazine February 2012

mute to work. Plus, Wiggins was built upon lumbering and still retains a plywood plant and three pole facilities.

Jack’s Center, where Jeffry’s wife, Morgan, also works, managing the paperwork, billing and marketing, boasts a staff of seven, “and I trained every one of them,” says the boss, making customer service a top priority. “Two guys have been here since day one.”

Why do they like it here? “It’s a good working atmosphere,” Jeffry maintains. “We make a great team. And I’m a pretty good boss,” he adds when prodded for a comment: “very understanding. Around here, we put family needs first.”

During the golden years when Jack’s first opened, its builders were completing 20 houses a year, and figured as 70% of the company’s customers. Now, down to six new homes in 2011, the ratio has swung—deliberately on Jeffry’s part—to 60%, with 50% as his goal. And he’s drawing more of these d-i-yers by design, not accident.

PERSONAL SERVICE has been a hallmark of Jack’s Home Improvement Center since day one.

Building-Products.com

“We adapted for the downturn. I changed the store layout, adding more hardware, grills, and John Deere toys where we used to have sheetrock mud right out front. Now, it’s a different set-up, with more of an old-fashioned hardware store appeal, so people can come in, walk the aisles, and see all the stuff. My favorite customer,” he adds, “is the one who brings in a broken part and we can fix it, so they don’t have to call a plumber or electrician.”

JACK’S OWNER Jeffry Peters is intently focusing on increasing its share of d-i-y business.

That kind of service is Jack’s forte. The extra mile? You bet. “If ever there’s something wrong, I’ll take care of it,” says Jeffry. He talks about the guy who’d bought a Green Egg grill and came in six months later saying, “I can’t figure it out.” Jeffry’s response: “Buy some meat and go home. I’ll stop by around 4 o’clock and cook your supper.”

He also takes the big-picture economic slide in stride— again, by adapting. “If you’re a product in my store, you gotta work for me,” he insists. “I look at each square foot of the store, to get the profit I need from it. For instance, we had a strong power tool department, but nowadays they aren’t selling fast enough. So I cut back 64 sq. ft.” To spin off the excess, he sent out an e-blast to his customers, announcing Tool Closeout Tuesdays.

That’s another way you can tell he’s 20-something: Not only those e-blasts (“Customers tell me they don’t leave home in the morning until they’ve checked to see if there’s a deal today”), but other social-media venues go to work for him, such as a strong Facebook presence, which Morgan oversees.

That’s how customers learned about Jack’s recent Building-Products.com

Christmas promotions. The company launched a contest with prize of $150 in merchandise; for every $50 spent, a customer was entered in the drawing. And it worked fine.

“They’ll have a bill of $38, then go back and buy something else to raise it to the $50,”Jeffry reports. “Our goal was to raise the average transaction from $30 to $50, and it’s working.”

Another holiday promotion was called John Deere Bucks. For every $10 someone spendt on one of the Deere toys, he received a chance to win a whole package of the popular gifts. Jack’s had Case Cash going, too: Buy a Case knife and be entered in a drawing for a complete set. And a Christmas Open House featured photos with Santa, mailed to each kid who sat on his lap.

An earlier promo, offered as a community thank-you for its support, was Jack’s Antique Car Show, which drew 125 vehicles and 600 attendees—“a big event for us, and fun for the whole family.” Naturally, attendees were offered coupons to use within the store. Jeffry also serves on the town’s Economic Development Committee and buys his business supplies—paper, whatever—right here in his home base. “Wiggins should grow, and I want to be part of it,” he explains.

Jack’s product mix is also changing with the times. “We listen to what customers are asking for and make a list of what we don’t have. If three or four a week want the same thing, we add it.”

Or add it simply because Jeffry’s got his eyes open.

“There’s an RV camp with 300 spots in Flint Creek Park, so when campers sign in, they’re handed a coupon for 10% off whatever they need—maybe a sewer hose, a power supply.”

So far, there are no looming boxes to prey on his business, but the prospect doesn’t make him blink. “Our prices are competitive, our quality is excellent, and our service?

No comparison.”

Talk about service: When Hurricane Katrina was forecast to hit on a Monday, Jack’s stayed open all day Sunday, when it’s normally closed, so folks could stock up on supplies. Then, after being slammed by the storm on Monday, when the store sustained substantial damage— holes in the roof, outbuildings gone with the wind, no power for two weeks—“I opened back up on Tuesday, by myself,” Jeffry notes. “With banks closed and credit cards inoperable, we took checks and trusted folks. It was chaos for a long time.”

In these times—tough in a different way—he’s back to trusting once again, by extending credit to good customers.

“So far, it’s been okay; I stay on top of it,” he says. “They come to me and I try to take care of them.”

“The economy has bottomed out here,” in his view, “but the worst is over.

We’ve lowered our operating costs, so we’ll be fine.” His modus operandi: “Learn by common sense. Learn by doing. And have the heart for it.

“I decided early that I was going to be somebody—whatever I decided to do, I’d be the most successful at it, because my heart is in it.”

Sounds like a lumber guy.

Carla Waldemar cwaldemar@comcast.net February 2012 The Merchant Magazine

25

MOVERS & Shakers Bob Mion, ex-California Redwood Co., has been named marketing mgr. for Pacific States Industries, San Jose, Ca. Charlie Jourdain will assume the additional duties Mion handled as director of marketing for the California Redwood Association.

Andrew Cross has been promoted to president and c.e.o. of TruckeeTahoe Lumber Co., Truckee, Ca. His father, Breeze Cross, who initially retired in 2007 but returned as c.e.o. in 2008, remains chairman of the board.

Robert Marchbank, ex-Wolseley, has been named c.e.o. of ProBuild Holdings, Denver, Co. Interim c.e.o. Fred Marino remains vice chairman. Brett Norton is now a marketing specialist, and Renee Malone, ex-BlueLinx, is new to supply chain demand & replenishment planning.

Ron Scherber has joined Weyerhaeuser Co., Sacramento, Ca., as a dealer sales rep for Northern California and Northern Nevada.

26

Rob Stout, ex-Alpine Lumber, has been named channel mgr. for Louisiana-Pacific Corp., Denver, Co. Pete Fleming is new to inside sales at Taiga Building Products, Rocklin, Ca. Jack Obie, ex-Lumber Yard Supply, is new to contractor sales at Knecht Home Center, Gillette, Wy. Brian Buck, ex-National Coatings Corp., has joined Fiberon as director of sales for the Pacific Northwest. He is based in the Seattle area.

Rob Bourne, ex-Industrial Lumber, is now with Sapphire Lumber, Hamilton, Mt. Erica Ecker has joined Orchard Supply Hardware, San Jose, Ca., as visual marketing project mgr.

Steve Collett is new to the jambs, moulding, and industrial lumber division of Sylvan Forest Products, Portland, Or. Derek Bolalin is a new associate merchant at HD Supply, San Diego, Ca.

The Merchant Magazine February 2012

Stacey Baker, ex-International Wood Products, has joined Weyerhaeuer, Tacoma, Wa., as a dealer sales rep.

Jason Sele, ex-Bright Wood Corp., has been named director of information technology at McFarland Cascade, Tacoma, Wa. Nicky Ekwall, ex-Pro Building Supply, has opened Nickyâ&#x20AC;&#x2122;s Window & Door Supply, Wheat Ridge, Co. Rob Morck, ex-All American Home Center, is now chief operating officer of new online Do it Best dealer Hometown Hardware & Garden, Downey, Ca. Caitlyn Kari has been named marketing communications mgr. for bamboo building products manufacturer Teragren, Bainbridge Island, Wa. Bryan Ripka, ex-EcoTimber, is now Northwest regional sales mgr.

Janise Kring, Home Depot, Fullerton, Ca., has been promoted to senior director-supply chain.

Sheron Dinnoo has joined Forest2Market, Charlotte, N.C., as mgr.information technology.

Building-Products.com

Gary M. Freedman has been hired to manage the liquidation of Bill’s Ace Hardware’s store in N. Concord, Ca., which is closing March 31 after five years.

Russell Hagen has been promoted to senior v.p.-business development for Plum Creek Timber Co., Seattle, Wa. Brad Johansen has resigned as a director of Conifex Timber, Vancouver, B.C., to pursue other interests.

Ryan Furtado, ex-Suwarne Lumber, is now selling western red cedar for Western Forest Products, Vancouver, B.C. Nathan Tellis is new to industrial sales.

Paul Harrison, ex-Tolko Industries, is new to Progressive Solutions, Vancouver, B.C., as mgr., professional services-LumberTrack.

Gord Campbell, ex-Taiga Building Products, is new to the wholesale export purchasing staff of Griff Building Supplies, New Westminster, B.C. Jim McLoud, ex-Hilti, has been named West Coast sales mgr. for Robert Bosch Tool Corp. Based in the Los Angeles area, he oversees sales in California, Oregon and Washington.

Nancy Clark, ex-American Chemistry Council, has joined the American Forest & Paper Association, as director of air & climate programs.

Brett McCutcheon has been promoted to general mgr. of Fasco America, Muscle Shoals, Al., and Empire Products, North American distribution divisions of the Beck Fastener Group. He succeeds Jerry Koontz, who has retired after 20 years with the company.

Brian Luoma, Louisiana-Pacific, Nashville, Tn., was elected chairman of the American Wood Council, succeeding Joe Patton, Westervelt Co., Tuscaloosa, Al. First vice chairman is Fritz Mason, Georgia-Pacific, Atlanta, Ga., and 2nd vice chairman Andrew Miller, Stimson Lumber, Portland, Or. Ray Dillon, Deltic Timber, El Dorado, Ar., was elected and Rob Taylor, Weyerhaeuser Co., Federal Way, Wa., was reelected to the board.

Laurel Anne Hardy is now handling media relations at Mungus-Fungus Forest Products, Climax, Nv., according to co-owners Hugh Mungus and Freddy Fungus.

Building-Products.com

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February 2012 The Merchant Magazine

27

KAHLE On Sales

By Dave Kahle

Ensure your bid is the final bid

H

Not All Suppliers Are Created Equal

Buy your Western Red Cedar from these OW DO YOU ensure that you get quality the last look inproducers. a competitive bid

Beautiful, sustainable

Western Red Cedar

www.realcedar.org

1.866.778.9096

28

situation?

MEMBERS This isWRCLA a question that I’m often Timber/Selkirk asked. In Downie a lot of industries, Specialty particuEnyeart Cedarin Products larly those involved construction, Gilbert Smith Forest Ltd. government purchases, and Products large-volHaida Forest Products ume manufacturing, most of Ltd. the cusIdaho Forest Groupbid. It’s not tomers require an official Interfor unusual for these to be highly formal Mary's River Lumber Co. and structured.

Valley Lumber Specialties Here’sMid a typical scenario: The cusNortha Enderby Ltd. tomer sends bid to Timber five suppliers, Building and each OrePac responds with Products a written docWood Corp. ument byPower a certain specified date.

Quadrareviews Wood Products The customer the bids and Lumber Company Ltd. awards theSawarne business.

Shakertown The writer of the question wants Products Ltd. have the abilitySkana to goForest in after the bids Twin Rivers Cedar been submitted, to look at the competBayleast Forest the Products itive bidsWest or at lowest bid Western Foresthis/her Products, Inc. in prices, and to change prices order to be awarded the business.

First, AFFILIATE it shouldMANUFACTURERS be noted that in BW Creative Woodlook” Industries some instances, the “last is illeCedarshed Industries gal. In many cases, it’s viewed as Living Today and situnethical.Outdoor In other industries Synergy Pacific/Quattro Timber uations, it’s viewed as business-asusual. This question and answer is only relevant to the latter situation.

1. Avoiding a bid situation to begin with.

Okay, I know that bids are stanwww.realcedar.org dard operating procedures in your business. But, I also know that a lot of business 1.866.778.9096 is “negotiated.” In other words, the customer selects the vendor he/she wants to work with, and

The Merchant Magazine February 2012

then negotiates the best deal with that customer.

I’d much rather you get yourself into a negotiating rather than a bid situation. That way, you’d avoid the bid scenario altogether.

And, while it is true that you’ll never convince 100% of your customers to negotiate with you rather than send out bids, if you are successful over the next few years in moving 20% to 30% of your customers to negotiating status, you’ll see a tremendous improvement in your sales.

How do you earn that position?

Two ways: First, build powerful business relationships, be a reliable supplier, and offer a special relationship—“negotiating”—with all your good customers.

In other words, bring the subject up regularly, plant the seed in your customer’s brain, tell stories about how you were able to work effectively with others—how they cut costs, paperwork and time out of the cycle by working with you.

Building-Products.com

If you are good, and persistent, you’ll eventually convert a significant chunk of your customers.

The second way to operate effectively in this situation is to become more deeply involved in the customer’s buying process and influence the creation of the specifications in such a way so you are the only one who can meet those specifications.

The bid then becomes superfluous.

Some of you who have been in my programs have heard me tell the story of how I did the most profitable transaction of my life in an account whose policy it was to bid everything to five vendors.

2. Making a last look unnecessary.

The whole concept of a “last look” implies that the reason the customer would do business with you is that you are the lowest price of the group of bidders. While there is a time and place to be the low price, I’d like for you to question whether or not this is how you’d like the customer to think of you.

If you have done a good job in the past for the supplier, if you have become the low-risk supplier, if you have understood the customer’s situation at a deeper level than your competitors, if you have some aspect of your product, service or offer that sets you apart from the competitors, if you have communicated those things in a persuasive way, then the customer should be happy to do business with you even if you are not the absolute lowest price.

In other words, if you have done a good job of selling, then a couple percentage points in the price should have no impact on the deal.

So, rather than try to be the low price, I’d prefer that you do a deeper, better job of selling this account so that you don’t have to be the lowest price. And that means that you have created powerful, trusting relationships with the key people, that you have understood the dynamics of their situation at a deeper and more detailed level than any of your competitors, and that you have fashioned a unique proposal that meets their deeper needs.

When you do that, you don’t need to worry about the last look.

3. Ensuring that you get a last look.

While everything I said above is Building-Products.com

fine, the reality is that there will still be some situations where you won’t be able to implement those strategies and are reduced to one option—be the low bidder.

Some of your customers negotiate the business with you, and the last look is, of course, not an issue with them. Some of them will buy from you because of the good job of selling you did, and the last look, with them, is not an issue.

But you will still probably be left with those who are going to bid and award the business primarily on the basis of price. It’s that group for which you’d like to have the last look.

How do you do that? By achieving excellence in the basics: building powerful, positive business relationships with those key contacts, by understanding their needs in deeper and more detailed ways than any of your competitors, by doing everything you can to assure that your company is highly respected by the customer, and, finally, by asking for the opportunity.

What you are really asking for is the preference of the customer. In other words, where the customer sees no difference between you and the other guy in your offer, he still prefers doing business with you. This scenario assumes that there is no difference between you and your competitor, and there is no reason for the customer to pay a little more to do business with you. Your only hope is that the customer will prefer to do business with you, providing you are the lowest price.

Ask yourself why the customer would prefer you. Create a detailed answer. Then set about becoming the supplier with which your customer would want to do business. Continually ask for the opportunity to have a last look.

Remember that getting the last look is the last, least desirable strategy to pursue. While there will always be times and situations where it is your last resort, those times and situations should be minimal.

Beautiful, sustainable

Western Red Cedar

– Dave Kahle is a distribution industry consultant, trainer, seminar presenter, and author of nine books, including his latest How to Sell Anything to Anyone Anytime. Reach him at (800) 331-1287 or www.realcedar.org via www.davekahle.com.

1.866.778.9096

Not All Suppliers Are Created Equal Buy your Western Red Cedar from these quality producers.

WRCLA MEMBERS Downie Timber/Selkirk Specialty Enyeart Cedar Products Gilbert Smith Forest Products Ltd. Haida Forest Products Ltd. Idaho Forest Group Interfor Mary's River Lumber Co. Mid Valley Lumber Specialties North Enderby Timber Ltd. OrePac Building Products Power Wood Corp.

Quadra Wood Products Sawarne Lumber Company Ltd. Shakertown Skana Forest Products Ltd. Twin Rivers Cedar West Bay Forest Products Western Forest Products, Inc. AFFILIATE MANUFACTURERS BW Creative Wood Industries Cedarshed Industries Outdoor Living Today Synergy Pacific/Quattro Timber

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1.866.778.9096 February 2012 The Merchant Magazine

29

Millwork Industry Looks Online for Training

The Association of Millwork Distributorsâ&#x20AC;&#x2122; Learning Management System for its online education programs has quickly become one of the preferred education training systems for AMD members and non-members alike.

In less than two years, the program has grown to currently offer more than 20 online courses and has become the â&#x20AC;&#x153;go toâ&#x20AC;? source for millwork companies to train their employees on an extensive range of industry topics, including mouldings, doors,

door frames, windows, stairs, and cabinets.

The latest addition is a 16-hour online course on the â&#x20AC;&#x153;Principles of Professional Selling.â&#x20AC;?

By request, AMD also recently introduced a Spanish version of its most popular program, â&#x20AC;&#x153;Millwork Principles and Practices,â&#x20AC;? to accommodate employees whose primary language is Spanish.

To date, more than 900 students have taken over 5,000 hours of AMD online education since the program

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was launched.

This year, AMD will look at enhancing the curriculum of online education courses by partnering with other organizations to make available a broader array of education topics as related to the millwork industry.

Also for 2012, AMD plans on developing of a series of safety courses and instruction on door, window and skylight installation.

Boise Cascade Adds to Workforce at Oregon Mills

Boise Cascade, Boise, Id., has added 40 workers at its mills in Medford, White City and Willamina, Or., thanks to better sales of its plywood and engineered wood panels in the U.S. and Canada. The new hires will boost Boiseâ&#x20AC;&#x2122;s regional employee count to 580. â&#x20AC;&#x153;The current markets for our wood products, and the recent upturn in demand for the products we make using the veneer produced in our mills, have necessitated this hiring,â&#x20AC;? said spokesperson R.J. Roberts.

Other factors affecting the market include closure of Georgia-Pacificâ&#x20AC;&#x2122;s plywood plants in Crossett, Ar., and Hawthorne, Fl., plus a fire that destroyed Celuosa Araucoâ&#x20AC;&#x2122;s mill in Nueva Aldea, Chile.

Roberts acknowledged that new contracts with Home Depot and some Canadian companies also helped. â&#x20AC;&#x153;Housing starts are stagnant at best,â&#x20AC;? he said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re just hoping that the bleeding stops soon.â&#x20AC;?

Idaho Sawmill Operator Remains Optimistic

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The Merchant Magazine February 2012

Richard Vinson, owner of Emerald Forest Products, is optimistic that Chapter 11 bankruptcy will allow the company to reorganize and stay in operation at a 22-acre site in Emmett, Id., formerly occupied by Boise Cascade. â&#x20AC;&#x153;The only way to put off foreclosure was to file Chapter 11 reorganization,â&#x20AC;? he said. â&#x20AC;&#x153;Our direction is to pay every creditor 100% so nobody loses money.â&#x20AC;?

Boise Cascade left the site in 2001 and Emerald opened there in May 2010. Last November, Western Capital Bank filed foreclosure proceedings against Emerald Forest for a $1.9 million debt.

According to Vinson, he has obtained financing from a new partner to fund mill renovations, including installation of an automatic debarker Building-Products.com

and horizontal saw.

“In our case, we just need time,” said Vinson. “We have the money, we have the logs. Fourteen people are working right now on completing the mill. Our plan shows we will open in April.”

By that time, he hopes to hire 40 to 45 workers to comprise one full-time shift.

Home Depot Purchases Online Contractor Finder

Home Depot, Atlanta, Ga., has acquired Redbeacon, San Mateo, Ca., which has a software platform that allows users to search, browse, and book pre-screened, home-service contractors that have paid a fee to be listed on Redbeacon’s website.

The company also offers an iPhone app that allows users to get service quotes without a home visit. The app uses the phone’s GPS to locate the job and match it with appropriate professionals, who then provide quotes and compete for the job.

Founded in the San Francisco, Ca., area by three former Google employees, Redbeacon has expanded to all major metropolitan areas of the U.S. Home Depot will use the service to connect its own customers—both consumers and professionals.

The deal was Depot’s first acquisition since 2006.

B.C. Exports to China Surge

Through the first 11 months of 2011, British Columbia exported a record 4.28 billion bd. ft. of lumber to China, surpassing the province’s goal of shipping 4 billion bd. ft. for the year.

The 11-month total was 74% ahead of 2010 and a 200% jump over 2009.

Sales to China, now with a value of more than $1 billion, make up about 29% of all B.C. lumber exports. Only the U.S., at 42% of exports, is a larger market.

When the province challenged industry in 2008 to work collaboratively with government to increase export sales, B.C. was shipping about 700 million bd. ft. of lumber to China.

A three-way market development program between the province, federal government, and industry targeting China was launched in 2003. Since then, B.C. sales have surged over 1,300% and more than tripled in the last two years.

Building-Products.com

February 2012 The Merchant Magazine

31

Softwood Lumber Pact Extended

The U.S. and Canada have agreed that the 2006 Softwood Lumber Agreement will remain in effect through October 2015.

“The Softwood Lumber Agreement is a compromise agreement that is not ideal from the U.S. industry’s perspective. Nevertheless, we support extension of this agreement with the expectation that Canada will improve its record of compliance with this trade agreement,” said Steve Swanson, chairman of the U.S. Lumber Coalition and president of Swanson Group, Glendale, Or. He said, “The coalition will continue to work with the U.S. government to ensure that this agreement is enforced,” but added that “if the U.S. industry continues to find itself having to seek multiple arbitrations to address Canada’s unwillingness to adhere to its commitments under this trade agreement, then U.S. industry has to seriously consider whether it would not be better off exercising its rights under U.S. trade laws.”

According to the coalition, Canada’s compliance record during the first five years of the agreement has been uneven at best. Independent dispute resolution panels have found Canada in breach of its obligations and prescribed measures to offset the resulting injurious effects on American companies and workers.

“Multiple rulings by independent dispute resolution panels confirm that Canada has repeatedly violated its obligations under this trade agreement,” stated Swanson. “It is essential that Canada complies with, and lives up to, its obligations under this trade deal.” He added that improved Canadian compliance “would give U.S. industry the confidence it needs in Canada’s compliance with its trade obligations to pursue long-term trade agreements instead of returning to traditional trade litigation.”

Strong-Tie Acquires Truss Plate, Concrete Repair Businesses

Simpson Strong-Tie, Pleasanton, Ca., has acquired the majority of the assets of truss plate firm Automatic Stamping LLC and Automatic Stamping Auxiliary Services LLC, Edenton, N.C., and has entered the concrete repair, protection and strengthening business with the purchase of Fox Industries, Baltimore, Md., and Switzerlandbased S&P Clever Reinforcement Co. The former owner of Automatic Stamping, Bill Black, will continue to lead the manufacturing and plate innovation operations.

In addition to the new truss plate offering, Simpson Strong-Tie will launch an initial release of its new truss plate software later this year. The company acquired the source code of Keymark’s truss software last fall and has been aggressively developing its software and technical support capabilities.

Founded in 1969, Fox Industries manufactures a complete line of cementitious, epoxy, urethane, elastomeric and polyester coatings, grouts, mortars, adhesives, sealers, sealants, membranes and custom-manufactured fiberglass parts for the marine, industrial, transportation, commercial building, and public works industries.

Formed in 1998, S&P Clever produces epoxy resins and fiber-reinforced polymer materials for concrete and asphalt reinforcement. Its systems are manufactured from fiber made of materials such as carbon, glass and aramid.

S&P also provides static design software to engineers

32

The Merchant Magazine February 2012

Building-Products.com

and planning and design offices.

S&P’s manufacturing and distribution facilities are located in Switzerland, Poland, Germany, Austria, the Netherlands, Portugal and Spain.

“Simpson Strong-Tie has been in this industry for more than 15 years with its Anchor Systems product line and is excited to bring complementary product lines to our customers in the U.S. and in Europe,” said SST president Terry Kingsfather.

Revised SP Design Values Gain Partial Approval

The Southern Pine Inspection Bureau’s proposed design value changes have been partially approved by the American Lumber Standard Committee’s Board of Review, effective June 1, 2012.

The board approved proposed design value changes for No. 2 2x4 southern pine visually graded dimension lumber and all lower grades of 2x4: No. 3, Stud, Construction and Utility. It declined to approve the proposed design values for other grades and sizes of southern pine, but was mindful that testing is currently underway on a full matrix sample.

“Southern pine producers and their customers are pleased with the board’s decision on design values,” said Cathy Kaake, SFPA’s senior director of engineered and framing markets. “Industry and customer groups need time for an orderly implementation and this announcement provides that.”

The Southern Pine Design Value Forum, held last November in Atlanta, was instrumental in bringing industry and customer groups together. SFPA will continue to facilitate the dialog among key industry segments to help formulate a unified

approach to implementation of these new design values.

“The decision from ALSC is a good thing,” said Kaake. “We are receiving positive reactions from our customer groups and will continue to work with them on a united front going forward.”

At Long Last, Jeld Wen to Start Up in North Louisiana

Late this year, Jeld-Wen, Klamath Falls, Or., will finally open a longdelayed door-facings facility in Winn

Parish, La. The manufacturer first announced the facility in 2006. It began construction soon after, but mothballed the $120-million project before it could be completed.

“Jeld-Wen felt now was the time to complete the plant,” said spokesperson Teri Cline. “We already had quite a bit invested and want to see it come to fruition.”

The facility near Dodson, La., will initially employ 75 workers, manufacturing wood fiber door skins.

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February 2012 The Merchant Magazine

33

MANAGEMENT Tips

By Bill Blades

Make “value added” really valuable

Give clients the gift of education

T

stupid the average salesperson is and then consider that half of all salespeople are even more stupid than that. Don’t expect value from this second-tier group.

Smart salespeople, on the other hand, can earn more clients in five months by being interested in the success and happiness of others than in five years of getting them interested in you. Yet, the majority of salespeople make routine sales visits without thinking, “How am I going to earn their business?” and “How can I make my selling proposition so compelling that no one else will stand a chance?”

Focusing on adding value to your HINK OF HOW

34

The Merchant Magazine February 2012

repertoire and providing education for your clients will bring in huge increments of revenues versus making virtually the same presentation (lots of talking) day in and day out.

First, let’s address education. As a sales representative, I gave my first convention speech at age 25. Then as a regional sales manager, I developed an all-day seminar that typically drew 150 to 200 industrial attendees by invitation only. It was so successful, the company had me speak nationwide as it was bringing in tens of millions of dollars. Then with another industrial firm, I started providing seminars on sales, leadership, culture,

Building-Products.com

exporting and other topics. Again, millions of dollars flowed in.

My next venture in life was speaking and consulting. I’ve had many retainer clients where I work with a firm for one or more years—usually a week per month. While my initial services are invested with the president, v.p. of sales, and the sales force, we soon begin to seek out target accounts that are progressive and could represent considerable revenues for my clients. We then arrange for me to speak or consult for them. In each of these scenarios, I furnish usable information for growing people and revenues. That’s value.

Let’s face facts… all indicators point to slow growth for several more years. So do we just ride it out and hope for the best? There are tons of ignorant corporations doing just that.

Organizations that focus on competition will eventually die. And those that focus on creating value will thrive.

I’ve seen building material distributors that have grown during the recession. How? By taking business away from competition that still “sell” and operate in the old school way: products, pricing and service. The successful have these same three components, but they add value.

Let’s look at our own people. How many sales and management personnel do you have that acted on just 12 new skills in the past year? The answer should be “all of them.” Yes, education costs money, but ignorance costs more.

Here are real-life examples of the benefits of providing education.

• During a speaking engagement for one company, we took a coffee break about 9:30 and I noticed the c.e.o. and his executive team talking among themselves for 90% of the

break time.

We went back in the room and the c.e.o. asked if he could speak before I continued. Of course I didn’t say “no.” He said, “We just talked about the fact that we just learned more in one hour than the quarter-million I spent on education on this group last year. What is it you want from us?” I replied, “Just all of your business and I’d like to leave here today with your (largest item) business.”

He asked what time my flight departed. He then suggested we stop the seminar by a certain time to get to their headquarters to get the order and get me to the airport on time.

• I’ve been part of many sporting events where the client hires a sports legend and fan favorite to sign programs and balls. I’m there to sign books and offer consulting advice.

Many ask if I can visit their executive team before I leave town. Again, I’m not going to say “no.” I respond in the affirmative and set up the appointments before the game ends.

I’m armed with a state map and my day planner so I can set appointments that make geographic sense. But I always conclude with “get your team prepared to ask me questions that you’re struggling with” and “get them prepared to give us our first order. Is that fair?” I’ve never encountered a “no.”

We then arrive, field and answer questions, sign a book for each executive, get our first order, and often offer a seminar… for additional business.

• A large plumbing contractor said he wanted me to be the first visitor in his new home. My client’s salesperson dropped me off and the client, his wife, and I met on the patio. In advance of our meeting, I said, “Get your order pad ready for water

heaters,” which my client had sold him a total of zero.

I got 200 units plus about 25 minor items, but Ms. Bean Counter (spouse) said, “Their heaters are $X, representing $Y more for the 200.” He replied, “Yes, but I get Bill.” Our agreement was that he would drive 90 minutes for lunch and it would be a working lunch. I just told him that we couldn’t spend three hours of travel time plus a 90-minute lunch each quarter. He cheerfully responded, “I’ll gladly drive to you.” At every lunch, which was a consulting session, we received new items.

• I’ve spoken for my clients’ clients at conventions, usually at breakfast or lunch. One big rule for a nice turn-out and avoiding a run-in with the convention is that your event must not be held while convention events are taking place. What I like is the venue is held in the same hotel where your target accounts are staying. No one has to travel and everyone needs to eat. And they receive value.

• I provide consulting in my clients’ booths at conventions. We set up a section in the corner of the booth with comfy chairs, pastries, coffee and end tables, beverages etc. It’s another by invitation only. The c.e.o. has gifts purchased for the clients, along with a neat note that I give at the end of our consulting session.

Over 90% of the time, we get business and they never ask what our prices are.

Most exhibitors do the same thing every year… same booth, same people, same literature. As with many other things your group does, they do them by habit. Look at every major segment of your annual sales and

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February 2012 The Merchant Magazine

35

Give the Gift of Education (Continued from previous page)

marketing plan and figure out how to put a spin on it. New, new, new helps you to avoid what happens to over 90% of corporations—they drift.

We know that most romantic affairs take place because of the bedroom monotony at home. The same applies to business. You can’t blame the economy, but you can stop the drift and build excitement among your people and clients.

• At a breakfast seminar in Atlanta, I arranged for the c.e.o. of a very large firm to sit next to my client’s c.e.o. At the conclusion, the c.e.o. guest was in no hurry to leave, but I loved his question to our c.e.o.: “Do you mind if I ask you what your revenues are?”

My client replied, “$50 million.”

Silence. Then the guest said, “It’s kind of embarrassing for a $5-billion client to be educated by a $50 million vendor. I’m very appreciative, as I learned a lot. How do you propose we build on this relationship?” Ka-ching!

• On a routine basis, I join the

salesperson on a target account sales call. Naturally, we tell them we want the c.e.o. in attendance and ask that everyone be armed with their best questions.

Caution: I’ve been doing this long enough that I can share that your onehour visit often winds up as a two- to three-hour session. Often the group is dismissed and we wind up in the c.e.o.’s office. And most often, the c.e.o. asks me to get our salesperson to go make a call elsewhere as a plethora of things on the c.e.o.’s mind is confidential in nature. The c.e.o. gets better and we get business.

• This one was classy. There was an extremely large potential client and I noticed the v.p. of sales never mentioned them so I inquired about the reason. I got something like, “They’re not going to switch.” I had him make an appointment with the #2 guy in the organization and had a salesperson drive me there, where I received a modest $20,000 trial order.

But here’s the classy portion: I invited him, his executive team, and their spouses to come to my client,

Stimson Swaps Northern Idaho Forestlands

Stimson Lumber Co., Portland, Or., has swapped 921 acres of land adjacent to the Idaho Panhandle National Forests, to be preserved for wildlife habitat.

In exchange, Stimson received in 995 acres of federal land near Bayview, Id., and Hoodoo Lake, which lacked public access or had lower-quality wildlife habitat.

“This project is good for elk, moose, deer and other wildlife because it protects habitat in a

scenic area that’s disappearing beneath summer-home developments,” said David Allen, president and c.e.o. of the Rocky Mountain Elk Foundation. “Plus, larger contiguous public lands are more easily managed for elk than small isolated tracts,” The deal took 10 years to finalize. “Doing the ‘right thing’ just took a while to complete,” said Stimson v.p. Ray Jones.

TREATERS

who was based in a tourist city. We had the ladies touring in horses and carriages and, without them knowing it, we arranged for stops at classy stores along the way where a gift (sometimes inscribed) awaited them.

While they toured, I provided a management seminar for their spouses.

My c.e.o. got his bank to loan us his yacht, chefs and servers. The #2 executive came to the back of the boat where I was sitting watching the porpoises “escort” our boat while swimming along side. It was as if we had trained the porpoises to entertain our group. He said, “Bill, we cancelled the rest of our agenda to just plan on implementing the education we received. This was the best management retreat ever.” There’s more to this client example, but I can share that we received millions of dollars in orders in five months.

Providing valuable education helps your clients be better prepared to sell more (often your products) and lead better. You’ve provided a valueadded service, they will remember you for years, and you’ve further bolstered your reputation.

If you do not create competitive advantages, you cannot successfully compete. Forget the old school lunches, ball games, and holiday gifts.

Instead provide a service that will help your clients be more successful.

The rewards will come back to you 10,000 to 100,000 fold. You can still have lunch, but you will be setting up the next seminar—for more business.

Education is one of the most valuable gifts you can provide.

– Bill Blades, CMC, CPS, specializes in growing people and revenue in the areas of sales and leadership. He can be reached at wblades@aol.com or (443) 477-0061.

WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY

ACQ ACQPreserve • Borates D-Blaze® Interior Fire Retardant Heat Treating ISPM 15 Compliant • Custom Drying Rail Served BNSF • TPI Third Party Inspected FSC Certified SCS-COC-002513

909-350-1214 15500 Valencia Ave. (Box 1070), Fontana, CA 92335 Fax 909-350-9623 • email – sales@fontanawholesalelumber.com

www.fontanawholesalelumber.com

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The Merchant Magazine February 2012

Building-Products.com

ANSI Approves CLT Standard

The American National Standards Institute has approved a new standard for cross-laminated timber, according to APA–The Engineered Wood Association.

Used for more than 10 years in Europe, CLT is currently being produced by two APA members in Canada, while several U.S. manufacturers are considering started production this year.

The engineered panels are comprised of three or more layers of solidsawn lumber or structural composite lumber that are stacked cross-wise and bonded with structural adhesives.

Construction applications include roofs, floors and walls in residential and non-residential buildings.

The new standard, ANSI/APA PRG 320, provides requirements and test methods for qualification and quality assurance of CLT. The standard includes seven stress classes covering major wood species in North America.

Code change proposals that would allow CLT products manufactured to the new standard to be recognized as code-compliant construction materials by the 2015 International Building Code have been submitted by APA on behalf of its CLT Standard Committee. Similar proposals for adoption into the Canadian timber design code are also being discussed.

Buyers to Evaluate New Products at Hardware Show

This spring’s National Hardware Show features a new program to offer companies introducing new products with feedback and possibly distribution deals with prospective buyers.

Each vendor that registers for the new Product Review & Vetting Program will be allowed to submit one product to up to three buyers, who will evaluate the product for their programs. The buyers will then provide feedback to the vendors, to help them sharpen their marketing efforts.

Buyers will represent—among others—Ace Hardware, Distribution America, Handy Hardware, Jensen Distribution, Lancaster, PRO Group, and United Hardware.

Products categories to be considered are Hardware & Tools, Homewares, Lawn & Garden, Paint & Accessories, Plumbing & Electrical, Storage & Organization, and Tailgate.

The show will be held May 1-3 in Las Vegas, Nv. Building-Products.com

February 2012 The Merchant Magazine

37

Dealer Group Unveils Policy Agenda

The National Lumber & Building Material Dealers Association has unveiled its national legislative and regulatory policy agenda for 2012, focusing on common interests of the industry and including policy goals to revitalize the construction industry.

“With the House and Senate going into the final session of the 112th Congress, many are rightly focused on reviewing and eliminating burdensome regulations, and NLBMDA will do all we can to assist policymakers,

as they pull off the wet blanket from our businesses, in order to bring about an economic recovery,” said Cally Fromme, NLBMDA chair and executive v.p. of Zarsky Lumber, Victoria, Tx. “It is essential that Congress focus not on election year politics, but on job creation and sound fiscal policies that will restore housing as the cornerstone of our national economy.

This common-sense, pro-growth National Policy Agenda is a legislative and regulatory plan that can and

Old World Craftsmanship In Today’s Designs

Tru-Dry Timbers Geo. M. Huff Lumber Co. has teamed up with Forest Grove Lumber to become the exclusive Southern California stocking distributor of Tru-Dry Timbers.

e g r La

n i y r o t n e v n I

k c o St

All FGL Tru-Dry timbers are dried in “HeatWave USA’s RFV” kilns, which use clean, renewable energy and have zero emissions.

Tru-Dry timbers are dried completely and evenly throughout so you won’t experience the sticky problems often encountered with beams that are not dried to the core.

Combine our selection of Douglas fir timbers along with our skilled milling staff and you’ve got one of the best resources in Southern California.

HUFF LUMBER COMPANY SANTA FE SPRINGS, CALIFORNIA

800-347-4833

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The Merchant Magazine February 2012

will put the building supply industry and our nation’s economy back on the path to recovery.”

The agenda includes LBM industry positions on housing, legal reform, workforce policy, tax policy, product supply, transportation, and energy.

NLBMDA will distribute the agenda to members of Congress and key Administrarion officials during the group’s spring meeting and legislative conference March 5-7 in Washington, D.C.

Conradʼs California Treating Plant Now Offering ACZA

Conrad Forest Products has added ACZA Chemonite to its line of Wolman preservatives at its Arbuckle, Ca., facility.

Conrad has been treating with ACZA for over 20 years at its plants in North Bend and Rainier, Or. The Arbuckle facility has added the preservative in hopes of gaining new markets in California and other areas of the Southwestern U.S., Mexico and Micronesia, for products such as crossties, switchties, guardrail, marine lumber and timbers, and utility poles.

California Insulation Maker Expands to Arizona

Insulation manufacturer InsulTech, Santa Ana, Ca., is adding a distribution center in Yuma, Az., and is negotiating to lease a manufacturing facility nearby.

Initially, the 17,000-sq. ft. warehouse is distributing products made in InsulTech’s export assembly plant in San Luis Rio Colorado, Sonora, Mexico.

Within six to nine months, the company hopes to also be manufacturing products in Yuma.

Oregon LBM Producers Feted for Energy Efficiency

Several building material companies were among the manufacturers honored with the first-ever Oregon Leaders Awards for Industrial Energy Efficiency at the recent Northwest Industrial Energy Efficiency Summit.

Hampton Lumber, Willamina, received the Governor’s Award for strategic energy management.

Contact Industries, Prineville, earned the Governor’s Award for energy performance improvement.

And, CalPortland, Portland, won the State Award for strategic energy management.

Building-Products.com

NEW Products

Pretty Timber

Tomball Forest mills pine and western red cedar timber to create architectural-quality beams for exposed construction.

The milling process removes chain stains, banding marks, oxidation, rail rub, and water stains on all four sides.

TOMBALLFOREST.COM (877) 701-8965

Wholesale Industrial Lumber

REEL

LUMBER SERVICE

1321 N. Kraemer Blvd. (Box 879), Anaheim, Ca. 92806 Fax 714-630-3190 (714) 632-1988 • (800) 675-REEL 3518 Chicago Ave., Riverside, Ca. 92507

(951) 781-0564

www.reellumber.com Building-Products.com

Engineered for Strength

OnCenter engineered lumber from BlueLinx offers superior strength and consistent uniform properties.

The line includes BLI Joists in varying widths and depths, 1.5E, 1.9E, and 2.0E LVL, Glulam 3000 beams, and rimboard.

BUILDONCENTER.COM (877) 914-7770

A

t Reel Lumber Service, we supply domestic and foreign hardwoods.

Our products and services include: • Hardwood Lumber & Pine • Hardwood Plywood & Veneers • Melamine Plywood • Hardwood Moulding (alder, cherry, mahogany, MDF, maple, red oak, paint grade, pecan hickory, white oak, walnut, beech) • Milling (moulding profiles, S2S, SLR1E, SLR2E, & resawn lumber) • Woodworking Accessories (appliques, ornaments, butcher blocks, corbels, etc.)

• Woodworking Supplies (deft finishes, color putty, adhesives, etc.)

O

ur products are widely used in interior finish carpentry, furniture, cabinetry and hundreds of industrial and manufacturing applications. We stock a complete line of complementary products to complete virtually any woodworking or millwork project.

February 2012 The Merchant Magazine

39

Specialized Lumber Coatings Expanded Deck Fasteners

Simpson Strong-Tie has expanded its line of Dexxter fasteners for composite and encapsulatedcomposite decking.

Now available in coated carbon steel, the product has a trim pan head and patented thread formation to reduce mushrooming. Other improvements include a Type-17 point for faster starts and a Quik Guard coating for corrosion protection.

STRONGTIE.COM/DECKCENTER (800) 999-5099

Cornerstone Products has introduced three VOCfree, non-toxic sealants formulated specifically to treat lumber, fencing, and cedar.

The TriCo Polymer coatings create a thin, breathable barrier over wood and other porous surfaces.

Lumber Seal stops mold growth, to stabilize lumber during drying and protect the wood’s original color.

Fence Seal extends the life and color of wood fencing.

Cedar Seal is formulated to preserve the natural beauty of cedar siding, shingles, and fencing without harsh cleaners or heavy oil finishes.

LUMBER-SEAL.COM (888) 770-4910

Look Who’s Back in Town!

Manufactured exclusively for the Pro’s PO BOX 1328, MORTON, WASHINGTON 98356 Phone (360) 496-6777

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The Merchant Magazine February 2012

Building-Products.com

Screen that View

Composite Gate Kits

QUANEX.COM

TIMBERTECH.COM

Quanex Building Products offers a top-hung, extruded-aluminum patio screen door in a choice of 10 colors, totally assembled or in a kit.

Sizes include 30” to 48” wide and up to 96” high.

Door handles and an integral side latch are preinstalled, and a fiberglass insect-screen mesh is standard.

Upgrades include BetterVue, pet, and solar screens.

(713) 961-4600

Building-Products.com

A new gate kit from TimberTech is fully customizable in applications spanning up to 4 ft. with 36” railing systems.

Each kit includes all the necessary components to construct and install a gate, including two powdercoated side rails, brackets and hinges, and matching fasteners. Available colors are classic black and coastal white.

(800) 307-7780

February 2012 The Merchant Magazine

41

WHAT YOU WANT. WHEN YOU NEED IT. Dimension Lumber Treated Products Domestic

Timbers Green & K.D. Export

Software on the Move

Manke Lumber Company is familyowned and has been serving the needs of the lumber industry since 1953. We take pride in milling and stocking quality lumber in a full range of commodity sizes and larger dimension timbers. We also answer your market needs for a wide variety of treated lumber products.

Our forest products are milled from carefully harvested Northwest trees ready for distribution to you—on time and at the right price.

Located in the Port of Tacoma, we have ready access to deep water shipping, rail heads or trucking terminals for longer haul loads. Manke operates its own fleet of trucks and is at your service for straight or mixed loads by truck, rail or sea.

We manufacture primarily Douglas fir and western hemlock, including • 2x4 thru 2x12, Lengths 8-20’ • 3x4 thru 3x12, Lengths 8-26’ • 4x4 and wider, Lengths 8-26’ • 6x6 and wider, Lengths 8-26’ • 8x8 and wider, Lengths 8-26’ • Timber sizes up to 12x12

Manke Lumber Company Call 1-800-426-8488 1717 Marine View Dr., Tacoma, WA 98422

Phone 253- 572-6252

Fax 253-383-2489

www.mankelumber.com

42

The Merchant Magazine February 2012

Epicor Software Corp. has released Epicor Eagle Release 21 business management software for smallto medium-sized businesses.

Compatible with both Apple and Android mobile devices, Mobile Manager provides real-time metrics and inventory, sales, and customer information, while Mobile POS brings the register to the customer.

Other improvements include better access to realtime performance data and streamlined inventory planning tools through Performance Manager, Inventory Planner, and POS Touch.

EPICOR.COM

(800) 999-1989

Tougher Gypsum Board

Georgia-Pacific has made its ToughRock line of gypsum boards 25% lighter than traditional wall and ceiling drywall products.

The products reportedly also have improved impact resistance, to reduce pre- and post-installation wear and tear.

GPGYPSUM.COM (800) 225-6119

Building-Products.com

Caps for Posts

VersaCaps from Deckorators have nested inserts for a snug fit over the most common size posts.

Each cap comes with three inserts, making them adaptable for posts ranging from 3-1/2”x31/2” to 4-5/8”x4-5/8”.

Options include traditional solar, solar band, and high point pyramid, in a variety of colors.

DECKORATORS.COM (800) 332-5724

Versatile MDF Doors

Masonite’s new router-carved MDF door collections offer something for every décor.

The Cyma and Carte Blanche lines each include 65 standard designs.

The Bolection line allows homeowners, designers and architects to create their own custom door designs.

MASONITE.COM (800) 663-3667

Building-Products.com

Ultra-Green Exterior Composite Trim Boral TruExterior Trim is composed of a minimum of 70% recycled content, reportedly the highest amount of recycled content for exterior trim.

Ideal for ground contact and moisture-prone areas, the composite trim does not require end-sealing, special adhesives, or other

costly installation techniques.

Made from bio-based polymers and coal combustion materials, it is reversible, can be painted any color, and is virtually free from rotting, splitting and termites.

BORALTRUEXTERIOR.COM (888) 926-7259

With Cascadia decking, the unsurpassed natural beauty of Western Red Cedar is matched with Terminal Forest Products’ renowned manufacturing quality. This creates a product that is beautiful, functional, and eco-friendly.

Cascadia decking is made from a 100% renewable and sustainable North American resource unlike PVC and composite decking, which is largely made from non-renewable petroleum products. Third-party life cycle analysis clearly shows WRC decking as the best environmental choice for decking: WRC significantly outperforms sustitute products in every environmental measure.

Distributed by

P.O. Box 1802, Medford, OR 97501 • Fax 541-535-3288

• (541) 535-3465 • www.normandist.com

Superior Service, Products & Support February 2012 The Merchant Magazine

43

HUMBOLDT CRAB FEED Photos by The Merchant

HUMBOLDT HOO-HOO CLUB feasted at its annual Crab Feed Jan. 19 at the Elks Lodge in Eureka, Ca. [1] Jean Henning, Randy Huffman. [2] Dave Wright, Gene Pietila, Bob Palacioz. [3] Allen Schmitz, Jim Moses.

[4] Mike Croxton, Marc Weaver, Mike Spengler. [5] Tom Von Moos, Larry

44

The Merchant Magazine February 2012

Stonum. [6] Michael Wood, Tom Czlapinski.

[7] Mark Borghesani, Dennis Tyrrell. [8] Claudia Lima, Liby Titus, Charmaine Jennings. [9] Denis Stack, Doug Willis, Ken Smith. [10] Rafael Sandoval, Richard Sandoval. [11] Carl Schoenhofer, Mike Vinum [12] Tim Brennan, Julie Wright. [13] Chuck Casey, Mike Boone. [14] Michael Ross, Gary Island, Ernie Burton, Bruce Burton. [15] Stan Reynolds, Sam Meranda, Margaret Campbell, Otto Van Emmerik.

[16] John Klar, Curt Wood, Bob Kuester. [17] Erika McNamara, Emily Shirman, Erin Freeman.

(More photos on next page) Building-Products.com

HUMBOLDT CRAB FEED Photos by The Merchant

GET CRACKING: More Crab Feeders in Eureka, Ca. (continued from previous page): [1] Bill Scott, Dave Creech, Kirk Conzelmann. [2] Rhiannon Wood, Valerie Scoggin, Lena Fite. [3] Ben Campbell, Rex Bohn. [4] Art Reid, Gil Sissons, Ben Cassanerio, Tom Bacon. [5] Clyde Jennings, Sean Burch. [6] Carl Henoch, Rich Giacone. [7] Miguel Gutierrez, Ken Dunham. [8] Gary Gamble, 2012 Lumberman of the Year Russ Britt. [9] Travis Campbell, John Russell. [10] Rick Deen, Chris Swanson. [11] Joe LaBerge, Tanka Chase. [12] Bob Maurer, Ron Hanson. [13] Tod Kintz, Building-Products.com

Rod Lucas. [14] Jeff Ward, George Albertson. [15] Rich Graham, Mike Shorten, Pat Meyers, Greg Winakur. [16] Charlie Brittain, Kristen Lockhart. [17] Chris Tritschler. [18] Danny Andrea, Ron Gattone, James Crosswhite. [19] Jim Rydelius. [20] Adam Figas, Denny McEntire, Claudia Lima.

February 2012 The Merchant Magazine

45

ASSOCIATION Update

Western Wood Products Association will hold its annual meeting March 11-12 at Embassy Suites, Portland, Or. Committee meetings will focus on exports, quality services and technical concerns, and market services.

Lumber Association of California & Nevada hosts its annual PAC golf tournament April 12 at Black Gold Golf Club, Yorba Linda, Ca.

Mountain States Lumber & Building Materials Dealers Association will host its annual Products Expo March 10-11 at The Plaza, Denver Merchandise Mart, Denver, Co. Educational seminars will cover green regulations and the green economy, online LBM dealers, and western redwood and cedar.

Bill Adams, SafeX, and Chris Dolbow, Stiles Machinery, will host a combustible dust webinar on April 12.

The Colorado Council’s annual bowling tournament will be April 17 at Arapahoe Bowling Center, Greenwood Village, Co.

46

MSLMDA plans a sales boot camp April 26 at Hampton Inn & Suites, Denver, Co., led by writer, consultant, and trainer Rick Davis.

Los Angeles Hardwood Lumberman’s Club will play golf March 8 at the El Prado Golf Course, Chino Hills, Ca. On April 28, LAHLC members will enjoy a day at Santa Anita Racetrack, Sierra Vista Terrace, Arcadia, Ca.

International Wood Products Association has scheduled Henry Juszkiewicz, c.e.o. of Gibson Guitar, as the keynote speaker for its March 28-30 convention at Miramonte Resort & Spa, Indian Wells, Ca. Educational sessions will focus on compliance with the Lacey Act, media training, international trade policy implications for importers, and going green with tropical wood.

North American Wholesale Lumber Association has tentatively scheduled an April 12 regional meeting at the Vancouver Club, Vancouver, B.C.

The Merchant Magazine February 2012

NAWLA will present its Wood Management Course-Level II March 12-15 at Mississippi State University’s College of Forest Resources, Starkville, Ms.

IN Memoriam

Lloyd H. Olson, 94, retired founder of Crenshaw Lumber Co., Gardena, Ca., died Jan. 8 in Rolling Hills, Ca. Mr. Olson graduated from the University of California in 1938. He served as a Naval officer during World War II in the Pacific Theater.

He founded Crenshaw in 1949 and retired in 1985.

Vaderon E. “Bud” Keeney, 90, retired v.p. of engineering for Stimson Lumber, Portland, Or., died Jan. 24 in Hillsboro, Or. He began his career in 1938, with Giustina Brothers, Eugene, Or. When World War II started, he joined the Navy and served in the Pacific.

Afterward, he worked at steam-powered mills in Oregon, including Mapleton Lumber and Fall Creek

Building-Products.com

Lumber.

When the Fisher Marcola mill shut down in 1956, he was hired to dismantle it and install the equipment in other mills around the Pacific Northwest.

He then managed other mill modernization projects for FarWest Steel, Eugene.

In 1965, he launched Northwest Materials Handling Co., providing consulting and construction services for lumber mills such as Willamette Industries and Rosboro Lumber. In 1980, he became the operations manager of Stimson Lumber’s mill in Forest Grove, Or., later rising to v.p.

After retiring from Stimson, he worked part-time for Coe Manufacturing and in the 1990s built a computerized mill for Roseburg Lumber.

Eugene Milton Anderson, 85, longtime Washington lumberman, died Jan. 9 in Lakewood, Wa. After serving with the Navy until 1949, he worked for several industry companies, including Cheney Lumber, Louisiana-Pacific, Brazier Lumber, Burns Lumber, and Pacific Western Lumber Co.

Lawrence Eugene Gieber, 79, owner of M&L Enterprises, Crescent, Or., died Jan. 11 of heart disease.

He began his career in the lumber industry in 1951 and owned the M&L post peeling plant since 1985.

William H. “Bill” Kuphaldt, 87, longtime Northern California forestry manager, died Dec. 26 in Jackson, Ca. During World War II, he served

Building-Products.com

with the Navy in the Pacific.

Afterwards, he earned a degree in forestry from the University of California, Berkeley.

He started his lumber career at Winton Lumber Co., Winton, Ca., as a log scaler and quickly advanced to forester. He retired as manager of the land and timber division of American Forest Products, Stockton, Ca. He also served as president of the Western Timber Association, v.p. of the California Forest Protective Association, and was appointed by Governor Ronald Reagan to the District Forest Practice Committee.

Roger Kotter, 65, part owner of Stone Lumber, Nampa, Id., died Jan. 9 due to a pulmonary embolism, in Nampa.

A year after graduating from Brigham Young University in 1971, he began working at Stone Lumber and became part owner in 1980.

Harold Hockett, 89, owner of Hockett’s Builders Supply, Ridgecrest, Ca., died Dec. 26 in Ridgecrest.

Mr. Hockett served as an Army Air Forces pilot during World War II. He then attended Cal Poly San Luis Obispo, graduating as an engineer.

He established the business in 1960 and operated it until his passing.

Nicholas Louis “Nick” Larsen, 57, warehouse/yard clerk at Central Valley Builders Supply, St. Helena, Ca., died Jan. 3.

He previously worked at Ace Hardware, Calistoga, Ca.

February 2012 The Merchant Magazine

47

HELP WANTED

CLASSIFIED Marketplace Rates: $1.20 per word (25 word min.). Phone number counts as 1 word, address as 6. Centered copy/headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if 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. Deadline: 18th of previous month.

Make checks payable to Cutler Publishing, 4500 Campus Dr., #480, Newport Beach, Ca. 92660.

FOR SALE

HELP WANTED

The

Keep track of the West

CEDAR SPECIALTIES MILL sales position available. Customers are wholesale distributors, also inventory sales from the cedar industries largest producers. Position is available in Portland, Oregon. For consideration, please send resume and cover letter to: Cedar Sales, P.O. Box 2743, Tualatin, Or. 97062.

MERCHANT Magazine

keeps you up to date on industry issues throughout the West.

Now find out what’s happening on the other side of the Rockies.

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Building Products Digest covers the other 37 states, including the Midwest, Southeast and Northeast. Subscribe for just $24 for 12 issues.

Contact Heather at (949) 852-1990 HKelly@building-products.com 48

The Merchant Magazine February 2012

Latest Breaking Industry News Updated Daily

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SOUTHERN CALIFORNIA OUTSIDE SALES REP

Universal Forest Products, the nation’s leading manufacturer and distributor of wood and woodalternative products to retail/dealer, manufactured housing and industrial markets, is seeking an outside sales representative to serve its southern California customer base. This position is based out of the company’s Riverside, Ca., facility. This candidate should have comprehensive knowledge of the southern California marketplace and a thorough understanding of the products therein. We are looking for people who can contribute to our growth, who are hungry for success, who bring a winning attitude to their work, and who are interested in new opportunities in an established arena. You provide the skill, knowledge, integrity and perseverance, and we will provide a great place to work, where you will be encouraged to grow and learn and rewarded with outstanding benefits and compensation. If you are interested in joining our team, please email your resume to Steve Mitchell at smitchell@ufpi.com. All replies will be kept strictly confidential.

Universal is an equal opportunity employer.

Order Blank

CLASSIFIED ADVERTISING – Fax to 949-852-0231 or email to dkoenig@building-products.com –

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DATE Book

Listings are often submitted months in advance. Always verify dates and locations with sponsor before making plans to attend.

Paint & Decorating Expo – Feb. 19-22, Planet Hollywood Hotel, Las Vegas, Nv.; www.paintanddecoratingexpo.com.

True Value Co. – Feb. 20-22, spring market, Orlando, Fl.; (773) 6955171; www.truevaluecompany.com.

California Forestry Assn. – Feb. 22-24, annual meeting, Sheraton Grand, Sacramento, Ca.; (916) 444-6592; www.foresthealth.org.

Western Wood Preservers Institute – Feb. 23-24, winter meeting, Embassy Suites, Portland, Or.; (800) 729-9663; www.wwpinstitute.com.

Oregon Logging Conference – Feb. 23-25, Lane County Fairgrounds, Eugene, Or.; (800) 595-9191; www.oregonloggingconference.com.

Colorado Springs Home & Landscape Expo – Feb. 24-26, NorrisPenrose Event Center, Colorado Springs, Co.; (800) 374-6463; www.homeshowcenter.com.

American Architectural Manufacturers Assn. – Feb. 26-29, annual conference, Naples, Fl.; (847) 303-5664; www.aamanet.org.

WoodWorks – Feb. 29, Wood Solutions Fair, Long Beach Convention Center, Long Beach, Ca; (866) 966-3448; woodworks.org.

National Frame Building Association – Feb. 29-March 2, frame building expo, America’s Center, St. Louis, Mo.; (800) 557-6957; www.nfba.org.

Lumber Association of California & Nevada – March 1, 2nd Growth meeting, Knott’s Berry Farm Resort Hotel, Buena Park, Ca.; (800) 266-4344; www.lumberassociation.org.

Panel & Engineered Lumber Conference – March 1-2, Omni Hotel, Atlanta, Ga.; (334) 834-1170; www.pelice-expo.com.

International Hardware Fair – March 3-7, Cologne, Germany; www.eisenwarenmesse.com.

North American Wholesale Lumber Association – March 12-15, Wood Management Course, Mississippi State University, Starksville, Ms.; (800) 527-8258; www.lumber.org.

WoodWorks – March 13, Wood Solutions Fairs, Oregon Convention Center, Portland, Or.; March 15, Wood Solutions Fair, Washington State Conference Center, Seattle, Wa.; (866) 9663448; www.woodworks.org.

Redwood Region Logging Conference – March 15-17, Redwood Empire Fairgrounds, Ukiah, Ca.; (707) 443-4091; www.rrlc.net.

Remodeling & Decorating Show – March 17-18, Orange County Fair & Event Center, Costa Mesa, Ca.; (818) 557-2950; www.thehomeshow.com.

Moulding & Millwork Producers Association – March 19-24, winter meeting, Loews Coronado Bay Resort, San Diego, Ca.; (800) 550-7889; www.wmmpa.com.

Seattle Remodeling Expo – March 23-25, Washington State Convention Center, Seattle, Wa.; (800) 374-6463; www.homeshowcenter.com.

Remodeling & Decorating Show – March 24-25, Pechanga Casino, Temecula, Ca.; (818) 557-2950; thehomeshow.com.

International Wood Products Association – March 28-30, annual convention, Miramonte Resort & Spa, Indian Wells, Ca.; (703) 820-6696; www.iwpawood.org.

North American Wholesale Lumber Association – March 29, regional meeting, Embassy Suites, Portland, Or.; (800) 5278258; www.lumber.org.

American Institute of Timber Construction – April 2-3, annual meeting, Naples Beach Hotel & Golf Club, Naples, Fl.; (303) 7929559; www.aitc-glulam.org.

Lumber Association of California & Nevada – April 12, associates/dealers golf tournament, Black Gold Golf Club, Yorba Linda, Ca.; (800) 266-4344; www.lumberassociation.org.

National Lumber & Building Material Dealers Association – March 5-7, legislative conference & spring meeting, Marriott, Washington, D.C.; (800) 634-8645; www.dealer.org.

Window & Door Manufacturers Assn. – March 5-7, legislative conference, Washington, D.C.; (800) 223-2301; www.wdma.com.

Greenprints – March 7-8, conference & show, Georgia Tech Research Institute Conference Center, Atlanta, Ga.; (404) 8723549; www.greenprints.org.

Pacific Northwest Association of Rail Shippers – March 7-8, conference, Doubletree, Portland, Or.; (503) 656-4282; www.railshippers.com.

Lumbermens Merchandising Corp. – March 7-9, annual meeting, Ft. Worth, Tx.; (610) 293-7049; www.lmc.net.

Los Angeles Hardwood Lumberman’s Club – March 8, golf tournament, El Prado Golf Course, Chino, Ca.; (626) 445-8556; www.lahlc.net.

Mountain States Lumber & Building Material Dealers Association – March 8-9, products expo, Denver Merchandise Mart, Denver, Co.; (800) 365-0919; www.mslbmda.org.

Ace Hardware Corp. – March 8-10, spring market, Georgia World Congress Center, Atlanta, Ga.; (630) 990-7662; www.acehardware.com.

Tacoma Remodeling Expo – March 9-11, Greater Tacoma Convention & Trade Center, Tacoma, Wa.; (800) 374-6463; www.homeshowcenter.com.

International Home & Housewares Show – March 10-13, Chicago, Il.; (847) 292-4200; www.housewares.org.

Western Wood Products Association – March 12, annual meeting, Embassy Suites Downtown, Portland, Or.; (503) 224-3930; www.wwpa.org.

Building-Products.com

February 2012 The Merchant Magazine

49

IDEA File

When the local Filling the Void

hardware store in Wilton, Ct., closed last October, the city’s sole remaining building supplier saw an opportunity to fill the gap.

Founded in 1902, Ring’s End Lumber has traditionally served builders and architects throughout Connecticut. But after Keeler’s True Value Hardware closed, the Wilton branch of Ring’s End decided to let locals know that its neighborhood location offers more than just lumber and tools.

“When we opened here in 2005, there were two hardware stores within a mile of here. Now there’s none,” says general manager Mike Burkhart. The chain, which has its headquarters and flagship store in Darien, Ct., has a total of 10 retail locations in the state, plus a millwork division, an educational center, an estimating and design office, and a distribution center.

“We’re trying to listen every day, to see what people are asking for. We’d like to get more seasonal things out there. In winter, have ice melt or wood brick fuel, and more consumer-friendly type things,” he continues.

“For instance, we just brought in bird seed—I don’t think a lot of other lumber businesses stock bird seed.

We started cutting keys, we started selling chains, water softener, salt, which we never had before, but a lot of people in Wilton have wells.”

The store has also expanded its electrical aisle and is changing its overall look, to make it more consumerfriendly. “We’re raising aisle shelving 18 inches so we can bring in more stuff,” says Burkhart. “The shelves were low for an open feel, but we think it’s important to get more inventory in here to meet the needs of people in town.”

The store’s layout is also being tweaked, to make homeowners feel more comfortable shopping there.

“It’s intimidating for a homeowner is to see power tools as the first thing,” says assistant merchandise manager Corey Bates, who came to Ring’s End after Keeler’s closed. “We’re going to change so lawn and garden is in the front of the store.”

The store’s merchandise manager, Christopher Quintal, says that he tries to do whatever he can to make consumers—not just builders and architects— happy.

“Especially the last couple of years, as the housing economy has not been doing so well, that’s become more of a focus of ours,” he says. “It’s helped us to stay profitable and continue to grow.”

Burkhart agrees. “The biggest thing has been listening to our customers, learning what people are asking for outside of the normal realm of a lumberyard,” he says. “We’re keeping a running list of things that customers ask for. If we don’t stock it, we’ll add it to the list to get it in. This is an evolving thing that we’ve taken on, and we want as best as we can to help meet the needs of homeowners.”

50

The Merchant Magazine February 2012

ADVERTISERS Index For more information on advertisers, call them directly or visit their websites [in brackets].

Advantage Trim & Lumber [www.advantagelumber.com]..........31

Allweather Wood [www.allweatherwood.com] ..................Cover III

Boise EWP [www.bc.com] ...............................................................3 Cal Coast Wholesale Lumber ........................................................17

California Cascade Industries [www.californiacascade.com]....47

California Redwood Co., The [www.californiaredwoodco.com] ..5

California Timberline [www.caltimberline.com] ............................4 C&E Lumber [www.lodgepolepine.com] ......................................33 Capital [www.capital-lumber.com]..........................................31, 33

Collins Co. [www.collinswood.com].....................................Cover I Eco Chemical [www.ecochemical.com] .......................................30 Fontana Wholesale Lumber [fontanawholesalelumber.com].....36

GRK Fasteners [www.grkfasteners.com].....................................41 Huff Lumber ....................................................................................38

Humboldt Redwood Co. [getredwood.com/merchant] .....Cover III Ipe Clip Co., The [www.ipeclip.com].............................................32 Keller Lumber .................................................................................47

Krauter Solutions [www.krauter-storage.com]............................46

Manke Lumber [www.mankelumber.com]....................................42

Master Mark Plastics [www.armadillodeck.com].........................34 Norman Distribution [www.normandist.com] ..............................43

Nyloboard [www.nyloboard.com] ........................................Cover II Osmose [www.osmose.com]...........................................................4 Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....37

Redwood Empire [www.redwoodemp.com].................................19

Reel Lumber Service [www.reellumber.com] ..............................39

Regal Custom Millwork ..................................................................39 Roseburg Forest Products [www.rfpco.com] ..............................27 Royal Pacific Industries .................................................................11

RoyOMartin [www.royomartin.com] ...............................................8 Screw Products [www.screw-products.com] ..............................49

Simpson Strong-Tie [www.strongtie.com].....................................7 Swanson Group Sales [www.swansongroupinc.com]................15 Terminal Forest Products [www.terminalforest.com].................21

Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....35

Tiger Deck [www.tigerdeck.com] ..................................................14 TMI Forest Products [www.tubafor.com] .....................................40

Universal Forest Products [www.ufpi.com] .................................23

Wahoo Decks [www.wahoodecks.com] .......................................26 Western Red Cedar Lumber Association [www.wrcla.org]...28-29

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