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THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

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CONTENTS

August 2019 Volume 98 n Number 8

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Magazine

THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

SALES & MARKETING SPECIAL ISSUE

James Olsen How to Sell a Program

Alex Goldfayn Sales Perseverance

Connie Kroskin Marketing Secrets That Shouldn’t Be Secret

John Waid How to Create a Sales Culture

Jill Johnson Profit Per Sale

Lindsay Pedersen Big Branding Mistakes

How to hook the big fish

Merchant 8-19_Layout.indd 29

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Special Focus

Features

Departments

29 HOW TO HOOK THE BIG FISH

10 FEATURE STORY

8 ACROSS THE BOARD 16 COMPETITIVE INTELLIGENCE

12 MARGIN BUILDERS

20 TRANSFORMING TEAMS

OUR ANNUAL SALES & MARKETING SPECIAL ISSUE BRINGS TOGETHER

SHINING A LIGHT ON THE LATEST BACKYARD PRIVACY SOLUTIONS

SIX EXPERTS TO HOOK YOU UP WITH TIPS FOR REELING IN NEW CUSTOMERS

BRIGHT FUTURE FOR WINDOWS, DOORS & SKYLIGHTS IN SMART HOMES

14 INDUSTRY TRENDS

IPE SUPPLIES STAY STRONG AS SHORTAGE FEARS FIZZLE

42 BEST ADS OF THE YEAR 56 PHOTO RECAP

60 IN MEMORIAM 60 CLASSIFIED MARKETPLACE

The Merchant Magazine Digitial Edition at www.building-products.com

The Ofﬁcial Publication of

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59 ASSOCIATION UPDATE 59 DATE BOOK

GOLFING WITH THE WILLAMETTE VALLEY HOO-HOO CLUB

52 NEW PRODUCTS

26 THINKING AHEAD

THE CALL OF THE WOOD

48 MOVERS & SHAKERS

61 ADVERTISERS INDEX 62 FLASHBACK

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ACROSS the Board By Patrick Adams

A hidden talent ’ll blame it on my daughter. Each night before bedtime, we watch a little of America’s Got Talent. Rather than explain the concept of this television show, I’ll assume you already know so that I can save a shred of my ego. I’m writing this as we’ve gone through the assortment of dog acts, magicians and other oddities, and a young woman came on stage. They introduced her background as a single mother with some “normal” job who always dreamed of being a singer, but “life happened.” She had her son young in life and the father was not in the picture. Like many, she was just working hard trying to get by and raise her child. She was a pretty woman, but dressed simply and one you could imagine being a waitress as much as a celebrity in the right circumstances. As I was only half watching and expecting another half-hearted karaoke version of a song, she started singing. Granted, I’m not in the music business but everyone knows the “real deal” when they hear it. She sang a Mariah Carey song and while I’m not a personal fan, nobody can dispute that in her day, the woman could sing like perhaps only a few in history could. Well, this “nobody” from who knows where simply put her to shame. When you witness such talent, whether you’re a fan of the song, or a show, or a genre, it makes you stop in your tracks. Something deep inside you brings chills and makes the hair on your arms stand up. Thoughts started racing through my mind. Holy cow! Where has this woman been hiding? Why isn’t she a superstar? How could talent like this be hidden for so long? Then I thought, what if everyone has some “hidden talent” that has gone undiscovered? What if we were each given some rare gift that because of “life,” or demands, or insecurity, or early rejection that we gave up on? While I completely love my life and what we have built as a family, I started thinking back on my life. I wonder what my hidden talent could have been? I was pretty good at a few things in life, but I’m not sure it would have put me in that 0.001% of “greats” like this woman was. Maybe it was something I always wanted to do, but have never gotten around to like playing the guitar. Maybe I could have been the next Eric Clapton! Probably not. It made me think about whether we really spend the time to explore. As kids, life is all about exploring, testing, trying, learning. At some point that transitions to an assumption that we already know it “all.” But, what if that didn’t have to stop? What if we remained curious, fearless and didn’t let time or failure stand in our way? What if

everyone discovered and knew what their “hidden talent” was? I thought about my family and my team at work. What if I could somehow help them find their hidden talents? Provide the encouragement, the support, and the time to explore? They talk about these “super teams” and constantly compare great sports teams to how work teams should be. But… the key difference is that great sports teams are full of individuals who have found their hidden talent and are pursuing it. Work, well as they say is a “means to an end.” What if it didn’t have to be? I don’t know the answer to this question, but I’m going to try to make the time to explore, test, try and learn a bit more about this. In the meantime, I know my daughter says I’m a “great” dad and I know at times, my wife says I’m a pretty “great” husband. There have been times in my career that an employee has said I was the “best” boss they’ve ever had and I’ve had a couple friends say I’m their “best” friend. I will never win a singing competition and I have a feeling that being the next Eric Clapton is beyond reach. But, if our path to peace in life is paved by not having regrets and doing the best you can, then I hope that all of us have found enough of our hidden talents to look back on our lives fondly. As always, I remain grateful to serve so many people in an industry that I consider to be great.

Patrick S. Adams Publisher/President padams@526mediagroup.com

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August 2019

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FEATURE Story By Loren Wohlgemuth

WOODWAY’S Moderna Panel Screen is perfect for space definition with flair and sophistication. (Photo by LWO)

Exposing backyard privacy solutions n oversight on the part of many builders is developing into a big concern for many homeowners: privacy. Urban development and growth continue to be on the rise—80% of North Americans now live in urban areas and are concentrated in mid-sized and large cities. The average new home encompasses some 2,500 sq. ft., about 50% more than the average home of the 1970s.

ROOFTOP DECKS are a natural application for panel screens. (Photo by Unique Decks)

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As home sizes increase, lot sizes have remained largely static or gotten smaller—meaning available yard space and thus a buffer from neighbors has reduced. As a result, homeowners wanting to enjoy what yard remains are seeking privacy solutions. In today’s marketplace, customers looking for privacy turn to traditional fences or lattice structures (in plastic and wood, and multiple spacing variations, such as diagonal or square lattice), and more modern approaches such as panel screens. To speed the construction process and provide immediate relief, some manufacturers are providing pre-fabricated panel screens and fencing. Homeowners and apartment/condo dwellers are increasingly on the lookout for privacy solutions—and they want it nearly immediately. The typical privacy options are to plant shrubs or trees which can take years to mature, or install fencing variations. Panel screens—or privacy screens—have matured into a growing segment of fencing. They provide not only privacy, but with horizontal lath construction, allow significant light through to illuminate the defined space. Homeowners and builders can combine multiple screens to craft a traditional fence (and extend the height with the addition of fence toppers), or attach hinges to two or three panels for quick, versatile and portable porch or patio Building-Products.com

screening. They have even been turned on end—creating a visually stunning screen around hot tubs and pools. Installation of a panel screen is quick and easy for builders and DIYers alike—because panel screens are framed, they can be attached to fence posts with common hangers or screwed into place through the frames. Because common panel screens are typically 4’x8’, many installations have incorporated fence toppers, such as 2’x8’ diagonal or square lattice to create a traditional 6’ high fence.

Traditional Privacy Solutions

Lattice: The classic solution to the privacy issue. Lattice consists of wood strips crossed and fastened together, leaving diamond or square spaces between. Typically, it’s produced in 4’x8’ sheets and can be cut and manipulated to meet almost any privacy need. Trellis: Create a living wall, using wood with lattice or metal wiring infill to construct a trellis for vines to grow, creating a natural outdoor privacy screen.

Modern Privacy Solutions

Panel screens: Panel screens—or privacy screens—have matured into a growing segment. They provide not only privacy, but aesthetics. Screens are made from wood, composites or vinyl. • Wood: Architecturally beautiful and made with prominent directional lines, wood screens are the perfect balance of style and function. Available in pre-manufactured panels, made from natural rot resistant fiber (western red cedar or mahogany) or can be made custom on the job site. By varying slat width and opening size, the optimal privacy, look and shade desired can be achieved.

PRIVACY SCREENS are a stylish substitute for traditional backyard fencing. (Photo by Elizabeth Hardisty)

• Composite: Available in modular panels. Composite screens offer a variety of patterns, most often used as accents rather than a complete solution. They must be accompanied by a wood or metal frame. • Vinyl: As with composite, vinyl screens come in many patterns and are used more as an accent than a complete solution. With so many solutions available in the marketplace, privacy options are endless.

How Do Dealers Take Advantage of This Opportunity?

Customers often aren’t aware of panel screens as a fencing alternative, so dealers must show and explain the product, stock the product, and broadcast their offerings through social media channels. Product display, with appropriate visual examples of installation, is often the most effective selling method. Manufacturers are happy to provide product samples for prospective buyers to get their hands on, making it easier for them to visualize the potential application. And because of our “gotta have it now” society, you’ll lose sales without a stocking program—customers want product immediately, thanks to Amazon! There’s nothing more disappointing for a customer to make a decision to purchase a product, only to be told that there will be a twoweek wait for their order to arrive. Most manufacturers are happy to provide lifestyle and application images of their products for dealer social media use. Facebook, Instagram and Twitter posts announcing your panel screen offerings can also lead to additional counter sales! Many dealers have shown success by staging “Lunch and Learn” events, where customers can benefit from a handson workshop, such as learning how to frame a lattice panel, or install panel screens and fencing. For a small investment, dealers can invite new clientele on-site to see products in action.

PREASSEMBLED screens can replace simple lattce. (Photo by LWO) Building-Products.com

– Loren Wohlgemuth is marketing manager for LWO Corp., a company which includes Woodway, Arboria and Naked Bee Hives products. For more info on panel screens, visit www.woodwayproducts.com. August 2019

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MARGIN Builders By Michael O’Brien

Bright future

Windows, doors and skylights in smart homes T

here’s no doubt that we live in a connected age. Sensors and Internet of Things (IoT) devices continue to proliferate, infiltrating every corner of our lives and making everyday functionalities smarter and more efficient. This is especially true within the home, where devices like Alexa can tell your smart oven to preheat upon your voice command, or a smart fridge can detect when the family is out of milk and automatically order more from Amazon—but it’s not just the inside of the home that’s getting smarter. Homeowners demand smart technologies for their windows, doors and skylights as well, and architects, builders and remodelers can meet these ever-evolving needs by keeping tabs on what’s out there. Some ways windows, doors and skylights can play into a connected or smart home include: • Windows and doors with hidden sensors allow homeowners to check whether those openings are open or closed, and whether doors are locked or unlocked, via either on-demand request or real-time notification. This adds a sense of security and peace of mind for the homeowner; if a closed window opens and no one is home, the homeowner can immediately alert police. These sensors also can let a AS TECHNOLOGY advances, homeowners are looking for smart features in all aspects of their living space—so why not in their windows, doors and skylights? (Photos by WDMA)

AUTOMATED WINDOWS, doors and skylights and those with advanced features can reduce utility bills, improve energy efficiency and increase safety. Not to mention the value that new windows and doors can bring to a home.

parent know their child has come home from school, or an elderly relative has left the home, by sending a notification that the door has been unlocked and opened. • Window sensors also improve a home’s energy efficiency and reduce utility bills by alerting homeowners when windows are closed but unlocked, as unlocked, closed windows lose air three times faster than a closed, locked window. • New automated skylights not only bring in daylight; they also can open at the touch of a button to let in a breeze. Rain sensors automatically close the skylight if the weather turns inclement.

• Automated window systems monitor factors like temperature, humidity and CO2 concentration, opening and closing windows to let in fresh air, or closing blinds if the temperature gets too high. Homeowners also can program motorized blinds or shades to raise or lower automatically at a specific time of day, conserving energy by restricting the sunlight that can heat up a home. • New advances in window glass can reduce or eliminate the need for blinds and shades, giving architects, builders and remodelers more creative freedom when designing or remodeling a home. Windows with electrochromic glass reduce glare and heat while letting natural light in. Liquid crystal windows use electric currents to switch between clear and translucent, while thermochromic windows adjust for tint or opacity based on temperature. Photochromic windows adjust to light using technology similar to light-adaptive eyeglasses, darkening during very bright days. • Future advances could include high-definition screens embedded into windows, or windows that collect solar energy that can then be used to power the home. We haven’t seen the last of the smart and automated technologies that window, door and skylight manufacturers will implement within their products—making the future of the industry very bright indeed. – Michael O’Brien is president and chief executive officer of the Window & Door Manufacturers Association, Washington, D.C. (www.wdma.com), the national trade association for the window, door and skylight industry. Mike has over 30 years of experience in housing and building industry trade associations.

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INDUSTRY Trends By David Koenig

Ipé supplies stay strong as fears fizzle

ight weeks ago, nearing the end of spring, one of the largest U.S. importers of ipé encouraged dealers to quickly ramp up their inventories of the durable Brazilian hardwood, warning that supplies were expected to run “very dry” for a second summer in a row, possibly leading to double-digit price increases. Now, more than halfway through summer, the opposite actually seems to be occurring. “I have had no issues with ipé supply this year,” noted Sean Burch, Redwood Empire, Morgan Hill, Ca. “We have also had one of our better sales seasons. Harvest season is going to start up soon and bring more supply to market.”

BEAUTIFUL AND durable, ipé decking remains readily available despite concerns of an uncertain future. (Photo by OHC)

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Jim VanPelt, Lumber Timber Group, Cape Canaveral, Fl., agreed: “Surprisingly, ipé has been coming through this spring, more so than previous years during ‘high season.’ The new production season in Brazil is now just underway, the mills are just now into the bush. So wood will be available replenished again, for a good six months anyway. We’ll see how pricing fares, it’s all about supply/demand, global markets (particularly Europe), exchange rates, etc. But there is ipé available; I know—I have wood to sell.” Any dramatic change in the supply and price of ipé would lie further down the road. Some had sensed that changes were imminent after, this spring, CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) agreed to weigh a proposal to list ipé. The country of Brazil had submitted the proposal in response to illegal harvesting and trading. If listed by CITES, a species would be severely restricted in—and under certain classifications outright banned from—commercial trade. Soon after, the proposal was withdrawn. VanPelt suggested that since “the whole ‘ipé/CITES’ vote thing fell apart, this won’t be revisited for at least another two years, even if then.” Others anticipate enivironmental groups will grow more aggressive in trying to regulate the trade of ipé, such as through the enforcement of The Lacey Act. In recent years, some architects and builders have moved away from the species due to environmental concerns. Some wholesalers have followed suit. “We are off the tropical hardwoods for good,” said Weston Leavens, Deck Supply Warehouse, Windsor, Ca. “We have switched away from ipé to Americana thermally modified ash for our hardwood decking. It is a much more stable wood, faster and easier to install, and our customers love it. I don’t like thinking about destroying rainforests, and even FSC certified is no longer trustworthy.” WalkGreen, Poulsbo, Wa., is the largest holder of FSC tropical hardwood decking and siding inventory in North America. Tess Lindsey explained, “Our business model is to source and inventory only those tropical hardwoods that are 100% pure FSC certified. The majority of our customer base are not chain-of-custody holders, but rather utilize us as part of their green message. So, given our continued commitment to responsibly sourced wood, we have been unable to find a consistent legal origin for ipé. In light of that, we’ve chosen to pursue alternative species with a proven track record and leave ipé out of our sourcing and offerings.” Lindsey also senses a shakeup could be coming, but for now ipé remains in ample supply. Building-Products.com

COMPETITIVE Intelligence By Carla Waldemar

Wonder Woman to the rescue

espite a clever disguise as owner of Wood Shed Lumber & Hardware Supply, Sharona Eiserer is really Wonder Woman. Read on and you’ll see how her super power (a.k.a. a healthy mix of guts and good judgment) helped her transform a dozing 76-year-old family-owned outfit whose owner was ready to retire into an enterprise that has since doubled sales and is aiming even higher. Wood Shed is located in Carrollton, Mo.—an ag-based town so tiny (under 4,000) it doesn’t even merit a pinpoint on my map. Sharona grew up here, married Cecil Eiserer, the owner of a local construction company, and—in 2016, six months pregnant with her third child (they’re now 12, 8 and 2) bought the under-performing yard “because they were ready to shut the doors if they couldn’t find a local buyer, and I hated to just let it go. It had potential, and the price was pretty good, but it needed investments in the

MISSOURI DEALER’S team includes (left to right) Megan Shannon, Tristan Wright, Cecily Mae Eiserer, owner Sharona Eiserer, Triniti Gibson, Novah Jane Eiserer, and Bailey McNelly.

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building materials and hardware inventory. I decided, ‘Let’s just do it!’” “Local contractors were nervous about us at first (since my husband also ran a construction company), but to ease their minds, I let them know that I wasn’t trying to get all the business and put them out of work. ‘We’ll never bid against our customers,’ we told them. ‘There’s something for all of us.’” Still, some of them chose to shop in Chillicothe, a hike down the highway, which boasted a big box. So she laid out her message: “You used to have to drive to get what you needed. Now, you can spend that time with your kids, spend time with your family, instead of behind the windshield. Shop where you grew up!” “I maintained I’d help them grow their business by carrying more products here, expanding the SKUs—and reliably, too: a delivery truck in every Tuesday, to better serve them in a timely manner.” And yes, that delivery truck showed up right on schedule as we spoke—despite, just before our chat, a dam on the nearby Missouri River had broken, making the drive to Wood Shed dicey. “One of our competitors is suggesting to his customers, ‘I wouldn’t go over there.’ But the truck came through,” she reports. Wood Shed’s contractors have grown loyal. And today the walk-in trade is growing, too, thanks to more attention to the town’s needs. She’s added housewares and lawn & garden to the mix, as well as rentals, a popular niche. She expanded the paint department and initiated a drive-thru yard. Today Wood Shed has become the town’s prime place to shop (“a drastic change”). “When I first bought the company, I didn’t have any idea what would happen. I looked at the product mix the store was carrying and had to wonder why, but I trusted our co-op’s recommendations, and it paid off. Still, I wanted to add more SKUs, but wondered how I’d find room to fit them in. Because you have to keep your offerings fresh.” The solution? Build a brand-new store. It opened in January, replacing a building of 2,000 sq. ft. that was “long and skinny and not efficient. Plus, it had a lot of outdated outbuildings. When we bought it, it had a staff of three. Now we have 13 employees, besides family.” (Her dad checks in Building-Products.com

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nearly every day; her kids have been conscripted, too.) “I’d offered jobs to those former employees, but no takers. And I experienced a lot of turnover at first; people didn’t realize the work was heavy, packing and loading. Nowadays, the staff ranges from under 16 to over 60 in age. To find people, I picked up the phone and contacted folks I knew: ‘What are you up to? Want to help us out?’ “I also got some walk-ins, attracted because the building was new—had quality and appeal. ‘I just want to be part of it’, they’d tell me. What I looked for was, did they really want the job, or just a paycheck? I wanted people with energy. I brought a lot of energy, intensity to it, myself. I ran through the store if I had to, to help a customer. I was a role model. “As for formal training, you think, ‘common sense.’ But it’s not. So we searched for a training program, but they seemed outdated. Plus, am I going to sit my people down to watch a PowerPoint when I’ve got customers waiting?” Not gonna happen. Instead, she teaches, “Stay happy and friendly and smile. At staff meetings, we role-play through situations that might not have been handled the best way. We go back and rethink them. And we also all learn from each other. Two older gentlemen help others learn patience with older customers, and our younger employees gain from this. It’s anyone—15, 16, 40: You learn something every day, from customer service and product knowledge to programs on the computers,” Sharona instructs. Customers now drive her way from Chillicothe, 30 miles north, Sharona knows, “because I always welcome folks and ask them where they’re from. I have a lot of paperwork to do in my office—I worked late-late last night—but I need, and like, to be on the floor.” To attract new those customers, Wood Shed employs

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print circulars. And she utilizes spokesmen. But the company’s spokesmen aren’t men at all: They’re Sharona’s kids. “They’re on our radio ads and their photos are on our billboards. (They’re cuter than my husband and I,” she laughs.) “At our grand opening, the radio station let us play the commercial in our store. The message was, ‘This place is run by family, not a big box.’” Sharona is trying her best to educate her buildercustomers as well. “The most frustrating thing was to try to teach them to shop local. ‘To choose to shop in town is to give back to the community that made you successful,’ I tell them. That used to be hard; now, we’ve supplied two or three homes. I lead by example. For three years now, I’ve been saying, ‘I could go out of town, but I want to shop with you.’ “I volunteer at school, reading to kids, and I host the third grade on a tour here. If you start them young,” she believes, “they’ll feel part of Wood Shed. If you wait till they’re adults, they may shop somewhere else. The kids ask their parents to shop here, and when they come in, they say, ‘I know you! You read to our class!’ And who doesn’t like to recognize people?” New store, new customers. “After our January opening, things really kicked in; before, it had been frustrating. People keep telling me, ‘Balance how you grow,’ but business has been so much better. I love the store’s design. I live and breathe and touch it.” Sales have doubled, from $900,000 to $1.5 million, “and we’ll see $2 million this year,” Sharona is confident. “Business in town had been fed up [before we took over], but we won them back. We added a rewards program that took a while to get folks on board, but now they’re bent out of shape if they don’t get a coupon. It builds return customers, gives them an incentive. “I went into all this blind,” she’s up-front in admitting. “I increased inventory dramatically—and then did it again, when we built the new store. It was scary, the cash flow. I was told, ‘You’re getting too big too fast,’ but I had no choice. In the old store, you couldn’t walk the narrow aisles or stairs if you needed a wheelchair. Women were intimidated to come in. So I added a UPS drop-off to lure them. I added rentals. Sno-cones. A popcorn machine. Tables and chairs. “At the grand opening we dressed an employee as Owens Corning’s Pink Panther. We invited a woodcarving artist, and donated his work to the YMCA to auction off as a fund-raiser—giving back to the community. “We recently added a Lawn & Garden department when a former nursery went out of business. And we took down the old outbuildings that were an eyesore. The community deserves a facelift,” Sharona insists. “We’ll do our part. We’ll offer them more.” Speaking of more: “Yes,” she answers a reporter’s final question, “I hope to grow by launching another store. If somebody believes in us enough to give us a phone call, we take a look. There’ll be more Wood Sheds in the future.” And, the way it looks, three kids growing up to fill the slots. Carla Waldemar cwaldemar@comcast.net Building-Products.com

TRANSFORMING Teams By Claudia St. John

Your 10-penny challenge The power of positive feedback couple of months ago, I got a call from a client who was clearly frustrated. Over the previous year he had restructured his customer service team, he had put in place a new reporting structure, he had rolled out a new set of performance goals, and he implemented a new financial incentive plan. He also gave each customer service representative an additional $1 per hour to incent the behaviors and outcomes he was hoping his new structure would achieve. Nine months into the new plan his team was not achieving his performance goals, they were not earning the bonus incentives he had put in place and, to make matters worse, his top CSR was now putting forth only mediocre effort. “I just don’t get it,” he said. “The structure is sound and I even gave them an additional buck-an-hour, but nothing’s working. Actually, performance is worse now than it was before!” Ahhh, the old “buck-an-hour” trick. I’m not going to belabor the point, but the truth is, you won’t motivate positive behavioral change by throwing $1 at the problem. Except for certain sales-types of people who are highly motivated by money, incenting behavioral change with cash doesn’t work. At best, you’ll get a little bounce in productivity but that typically lasts only five to six weeks. After that, you’re back to square one.

Q. To make sure we hire the right people, we bring in prospects to shadow an employee so that we can see whether the candidate has the right skills/abilities for the job and so that the candidate gets a realistic representation of the job. Is there anything wrong with doing this?

A. Absolutely not. I think it makes sense for each of you to assess whether the “fit” is right before you hire the candidate. That said, you should pay the candidate at least minimum wage for the time spent shadowing the employee. You can include the pay in the candidates first paycheck if she is hired, or simply cut a check to her if you decide not to hire her. For added protection, you may want to process a W4 and I9. 20

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So trade in your “buck-an-hour” for 10 pennies instead. In his book Tell Me How I’m Doing – A Fable About the Importance of Giving Feedback, Richard L. Williams describes the four types of feedback: Positive Feedback – designed to encourage a repetition of desirable behavior. Corrective Feedback – designed to correct or change an undesirable behavior. Insignificant Feedback – designed to provide support but resulting in minimal change in behavior. Abusive Feedback – designed to breed contempt and fear. What Williams explains is that managers should focus on positive and corrective feedback and discontinue insignificant and abusive feedback as they will have either no effect or will cause harm. It’s my professional assessment that, as managers and supervisors, we’re awesome at giving corrective feedback. “You’re late again.” “Your skirt is too short.” “You didn’t do what I asked you to.” “Your attitude needs to improve or we’re going to need to get on a performance improvement plan.” We’re good at all that stuff—reprimanding employees for an error in their ways. But we are terrible at giving positive feedback. When was the last time you noticed an employee doing exactly what you wanted them to do and gave them praise Building-Products.com

and recognition for doing their job? What if I was to tell you that, more than anything else, giving positive feedback is really the most important part of your job? Consider this, if you dedicate your time to recognizing all of the ways your employees are satisfying your expectations, they will work harder to continue to do so, even in areas where they may be falling a bit short. We do it with our children. We should be dedicating ourselves to doing it with our employees. In fact, according to Gallup Inc., the No. 1 most contribution to having an engaged worker is letting her know what you expect and giving her feedback and recognition. There is a wonderful story about an Alamo branch manager in South Central Los Angeles who had extraordinarily high marks for employee and customer satisfaction. The corporate office explored why the manager had such high marks, particularly in such a challenging market. He shared with them his 10-penny rule. Apparently, this manager starts every morning with 10 pennies in his right pocket. They represent giving positive feedback to a customer or an employee. Every time he gives someone praise or recognition for doing a good job, he moves one penny from his right pocket into his left pocket. At the end of the day, all 10 pennies should be moved into his left pocket for him to feel that he had done his job well for the day. Such a simple rule and such profound results. Here’s how it works: (1) Dedicate yourself to giving positive feedback each day. (2) Observe someone doing their job according to your wishes. They don’t need to be a rock star, just a solid employee putting in a solid effort. Or even a sub-par employee trying hard to improve. (3) Let the employee know what you observed. (4) Let them know how it makes you feel. (Answer: Good! Proud! Delighted!) (5) Tell them how their behavior contributes to the success of the company. (6) Thank them for their effort. “What if,” argued one client, “I literally can’t find anything positive to say about an employee?” “Well,” I responded, “either check your expectations or fire the employee.” There should always be something positive to see and positive to say. Moreover, I believe 90% of our feedback should be positive and only 10% should be corrective. And, if you have to give corrective feedback, you should start and conclude the conversation by recounting all the ways that the employee is satisfying or exceeding your expectations. I truly can’t overstate this enough—you can completely transform your culture and your workplace by dedicating your time to giving positive feedback. Don’t believe me? Give it a try. Forget the “buck-an-hour” incentive. Instead, spend a week with 10 pennies in your pocket. I promise, you’ll never doubt the power of positive feedback again.

Claudia St. John, SPHR, SHRM-SCP President Affinity HR Group contact@affinityhrgroup.com Building-Products.com

August 2019

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Homewood Buys Puget Sound Door/Millwork Supplier

Homewood Holdings has acquired the assets of Custom Choice Door, Lakewood, Wa., from owners Ted Matthews and Alan Pascoe. Matthews and Pascoe founded Custom Choice Door in 2007 and have grown it into a leading full-service door and millwork supplier servicing the greater Seattle and Puget Sound markets. Employing 45, it supplies single- and multi-family residential builders, contractors, and DIY homeowners with exterior wood, fiberglass and steel doors, interior doors, millwork, hardware, shelving, mantels, stair parts, cabinets, and pre-finishing services. Homewood is a portfolio company of the investment firm Building Industry Partners LLC. CCD becomes Homewood’s sixth overall investment and its third business in Washington, joining Evergreen Lumber and Eagle Creek Siding. The transaction allows Custom Choice to accelerate its growth in the Puget Sound and beyond. Matthews will remain as president of CCD post-transaction and will retain a significant financial interest in CCD’s success going forward.

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Matthews noted, “Homewood Holdings is a perfect fit for our growth strategy, and strengthens our ability to service our customers with door and millwork products better than anyone in our market.”

Epicor Collects Majure Data

Epicor Software, Austin, Tx., has acquired Majure Data, Milton, Ga., a 35-year-old provider of warehouse management solutions for the LBM industry. “Both companies offer deep industry expertise and are committed to building long-term relationships with customers, providing increased efficiency, accuracy, and operational improvements in warehouse operations,” said Bill Wilson, senior VP, retail & building materials solutions, Epicor. “Majure Data offers full integration tools for leading industry ERP platforms, allowing a broad range of LBM dealers and distributors to transform their warehouse operations.” Prior to the deal closing on July 1, Epicor had acted as a reseller for Majure’s RF Navigator and RF Navigator Foundations.

August 2019

SUPPLIER Briefs Akron Lumber , Akron, Co., was opened June 17 by Randy Arnold. Since 2000, he and his wife Lori have operated Akron Hardware, but did not find it feasible to carry lumber at the hardware store. Lowe’s opened a 94,000-sq. ft. home center with 28,000-sq. ft. garden center July 4 in Newbury Park, Ca. ABC Supply opened new branches in Boise, Id. (Darin Weaver, mgr.) and Stockton, Ca. (Sandy Steele, mgr.). L&W Supply added a new location in Modesto, Ca., managed by Manny Inostros. OrePac Building Products’

distribution centers will begin carrying Fiberon composite decking as soon as its contract with its current supplier, AZEK/TimberTech, expires.

Pyramid Mountain Lumber, Seeley Lake, Mt., is installing a $3-million computerized grading system, to boost production and quality.

Building-Products.com

2019

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NOVEMBER is the anticipated start-up of a new rice straw-based MDF plant in Willows, Ca.

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Rice Straw-Based MDF Project Enters Homestretch

For over a century the BECK Fastener Group® has been dedicated to creating the best equipment for the most important people on earth: Craftsmen. Our innovative fasteners and tools are designed for one thing: To help you get your job done quicker, easier and exactly the way you want it to be – perfect. Master Distributor: FASCO America Inc. 800-239-8665 | www.fascoamerica.com

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CalPlant I, a $315-million rice straw-based MDF plant currently under construction in Willows, Ca., is scheduled to begin production this fall. An inventory of more than 200,000 tons of rice straw is already in storage at the site for the first run of panels, which should roll off the line this November. “This facility is the first of its kind in the world in so many ways,” said CEO Jerry Uhland. “Not only will it have a production capacity to supply 30% of California’s MDF demand, it will significantly reduce the use of water to flood rice fields in the Sacramento Valley, thereby cutting the production of greenhouse gases.” CalPlant will be the world’s first commercial-scale producer of no-added-formaldehyde, rice straw-based MDF, and at design capacity, the plant will produce more than 140 million sq. ft. (¾” basis) annually. Rice straw is an annually renewable raw material, with all of the material for the plant being procured each year from Sacramento Valley rice growers within a 15- to 25-mile radius of the plant site. Employing a 115-ft.-long Generation 9 Siempelkamp ContiRoll continuous press, CalPlant will be staffed by 115 full-time employees with 450 part-time jobs created during the annual straw-collection period. The mill will be able to produce MDF thicknesses of 2.0 mm to 30 mm. Columbia Forest Products, which is CalPlant’s exclusive sales agent, is an investor in the project. In addition to its formaldehyde-free adhesive system, which will guarantee compliance with new Federal TSCA Title VI regulations on formaldehyde emissions from composite panels, CalPlant’s operations will produce significantly less volatile organic compound (VOC) emissions due to its feedstock and is expected to be a minor source of emissions under EPA rules. Its reclamation of approximately 20% of the Sacramento Valley’s rice straw waste will also result in significant savings of the water now used to flood fields to decompose straw after the annual harvest. Building-Products.com

Building-Products.com

August 2019

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THINKING Ahead By Donna Whitaker, Interfor

The Call of the Wood

ust when you think you’ve got it all figured out— including your career—that’s exactly when life will throw you a curveball! But sometimes, that’s just the disruptor needed for change; and if you’re brave enough to face it, you might even come out of the situation for the better. That, in a nutshell, describes the life journey that led me home to the wood products industry.

Best-Laid Plans

I was busy being a mother and studying to become a nurse when my husband and I decided to end our marriage: that was the first catalyst. The second came when my son and I relocated back to the town where I grew up, which happened to be home to a Rayonier mill. In 1994, with time to kill before returning to nursing school for my last two semesters—I was so close!—I agreed to fill in doing customer service there until the regular employee returned from maternity leave. Needless to say, that’s all it took for the sawdust to get in my veins!

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As the day approached to give up my temporary position, neither I nor Rayonier wanted to say goodbye. The next domino in the chain fell as I decided to forego nursing, despite the time and money I’d poured into chasing that dream, to remain with Rayonier. In just a short time, I had come to love the company, the business, and the relationships that define this industry. Getting to know and interact with the customers was more like fun than work, and it didn’t carry the heavy emotional toll that nurses sometimes face… or the overnight hours. Rayonier, which promoted me from customer service to sales, even opened the door to the same kind of pay I would make on a nurse’s salary. Even now, as vice president of sales at Interfor— which acquired Rayonier in 2013—I still get a thrill out of talking to customers and closing the deal. Not once have I had a single regret about choosing lumber sales over nursing. I don’t deny that I had a passion for the profession, but people often take the path that

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A Special Series from North American Wholesale Lumber Association

their parents or other influences steer them toward. You ultimately have to make the decision that makes you happy. And it isn’t always what you think it is.

A Man’s World, With a Woman’s Touch

For example, many of the young women I meet literally cringe when I tell them that I work for a sawmill; but they can better imagine themselves in the industry after being enlightened. You’re not out in the field and in the heat when you work in sales, I assure them. You’re dealing day to day over the phone, via email, through text, and in person with strong partners who will contribute to your success and you to theirs, I add. You’ll build relationships, professional and personal, that will stand the test of time. I tell them how I’ve been doing this work for about a quarter of a century and how I still

About NAWLA North American Wholesale Lumber Association is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn more about how NAWLA can help your business at www.nawla.org.

keep in touch with the person who gave me my very first purchase order, my first sale. Those are the kind of unforgettable bonds that you forge while working in this industry. You can’t really blame women, though, if their initial reaction to the lumber industry is, like James Brown tried to convince us, that it’s a man’s world. It’s true that we’re outnumbered by men in many ways. But I’m here to say that we don’t have to be on the outside looking in. At Interfor, our core values state that we are responsible for our own success; and I strongly believe in that statement. If you have integrity, an unflappable work ethic, and the desire, you can achieve anything you want in this business. I went from customer service to an executive sales title, and I did it with strong support from several male mentors. But unlike what some women mistakenly believe, you don’t have to act like a man to elevate your career. In fact, being female might actually be an

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advantage. To be clear, I’m not talking about being pretty or wearing a short skirt. That might get you in the door, but it’s not going to get you business or respect. Both have to be earned and for that, you had better know your stuff—plain and simple. At the same time, though, women have an innate, softer side that can serve them well. With no disrespect to men intended, women have a tendency to remember birthdays and to ask about a person’s family—something that our male counterparts may be less in tune to. In fact, I tell young women whom I mentor or coach that their first job when entering a business partner’s office is to scan the room, taking note of which college name is stamped on the framed degree, whether there are photos of children or grandchildren, and so on. These are little things, but they mean so much to folks, so paying attention to them and remembering them will go a long way in relationship-building. I try to pass along these and other nuggets I’ve gleaned over the years, using events like the Women in Lumber conferences and board membership at organization such as NAWLA as platforms.

No Regrets

Getting involved in NAWLA has also been a blessing for me, personally. Having spent my entire career with the same publicly owned company, I was totally focused on my own group and its challenges and opportunities. Sitting on the board at NAWLA for the last five years has helped me to get out of that box and open my eyes to other segments of the business, practices that are trending, and more. That exposure, in turn, has only cemented my feeling of belonging in this business. I never intended to end up here, but once I looked past the exterior and peeled back the layers of this industry, I knew I would never leave. Who ever thought that a nursing candidate would toss aside her love of caring for others to work in sales? The truth is that I didn’t discard that trait at all, I simply redirected it to a space that was better for me, personally. Sometimes you choose your career… and sometimes it chooses you. I picked nursing, but lumber picked me. – Donna Whitaker is vice president of sales for Interfor, Vancouver, B.C., and a board member of the North American Wholesale Lumber Association.

August 2019

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The

MERCHANT

Magazine

THE VOICE OF THE WEST’S LBM SUPPLY CHAIN — SINCE 1922

SALES & MARKETING SPECIAL ISSUE

James Olsen How to Sell a Program

Alex Goldfayn Sales Perseverance

Connie Kroskin Marketing Secrets That Shouldn’t Be Secret

John Waid How to Create a Sales Culture

Jill Johnson Profit Per Sale

Lindsay Pedersen Big Branding Mistakes

How to hook the big fish

SALES & MARKETING SPECIAL ISSUE

By JAMES OLSEN

How to sell a program hen selling a program, we will have to make a written proposal. Even if we are talking to the owner, often the person will need to at least consider the proposal, and often will have to sell it on the inside of their organization. We want to write a proposal that is easy to understand and explain to others.

First Sentence The first sentence should be short, to the point, and have a positive statement about the program. “Susan, I appreciate your interest in this program. We are currently using this with other customers with great success.” “John, this program is helping many of our customers get what they want when they want it. “Pete, my customers use this program to ensure they get the prices and tallies they need.” Title The title of the program should have our customer’s company name in it. • Johnson 2x4 Ute Program • ABC Lumber Random 2x4 Solution • XYZ Lumber D+Btr Fir Larch on Time Deliver Program • Olsen Lumber #2 Spruce Program • Smith Lumber 1x6 C/Btr Short Board Program Details with Bullet Points Use bullet points to delineate the details of the program. DO NOT

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write the details of the program in paragraph form. It is more difficult to write and way more difficult to read and understand. Our goal in the detail section is show the customer, thus setting them at ease, that we have thought through all the details and possibilities. Buying a car of 2x4 92 5/8” from a known mill has little risk. To commit to a program our customer, and their organization, have to believe that we are an expert. XYZ Lumber D+Btr Fir Larch on Time Deliver Program • Two trucks per month for 12 months starting July 15, 2019 ending June 15, 2020 • Trucks will deliver on Monday of the first and third week of every month • The distribution will be 1/3 1x4, 1/3 1x6, 1/3 1x8 • Tallies will be 10’-16’ on the 1x4 and 8’-16’ on the 1x6 and 1x8 • Stock will be from any of these mills: Smith Lumber, Jones Lumber and Vitaly Lumber • Pricing will be based on R/L print the Friday prior to shipment +$113 • Terms are 1% 15, net 30

• 10’-16’ from three different mills at R/L + 125 Pricing We can price programs several ways: Friday Prior’s Print + Adder. We take the R/L print prior to the week the product ships as our base price and add profit and freight to come up with the adder. Three Month Running Average + Adder. Same as above just using a running average over a number of months. By Month or Quarter. We set a firm price and adjust at a pre-agreed time. Price Time of Shipment (PTS). We negotiate the price when the product ships. Firm Price for the Life of the Program. Some customers want and/ or need a firm price for a year or for the length of a specific project. Note: Writing a proposal can seem like a lot of work. The great thing is that once we finish the first one, we can “Copy and Paste” the format and just change the details to fit the individual customer.

Options We give three options to our program. This gives our customer a feeling of having “shopped it” and reinforces that we are experts.

What’s Programmable? We can program any product, but I think it makes more sense with some items more than others.

Option #1 • 8’-16’ from 10 different mills at R/L + $110 Option #2 • 8’-16’ from five different mills at R/L + 115 Option #3

• Funky tallies. 1x6 #2 10’ Pine is always about $100/MBF less than 1x6 #2 R/L Pine, then it is more important for the customer to have the product, than to save $10/MBF shopping it. It’s always going to be less and the premium the customer has to pay for

August 2019

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the R/L 1x6#2 is prohibitive, so this is a good item to program. • Premium tallies. If a customer has to have 12’ and longer #3 and those tallies aren’t always available, this is a good item to program. • Premium stock. If there is an item that the customer loves and so does everyone else, this is a good item to program. • Poor quality stock. Some customer need “fightin’ wood” quality and don’t want to pay more, ever. One man’s garbage is another man’s gold. Program it. Overcoming “Program Objections” and Closing In any sales situation we need to be prepared and confident. This is even more important when selling a program, because it is a larger commitment. We need to anticipate any and all detail questions and options. We must sound confident and prepared when discussing pricing or objections. We must tell the customer why the program is good for them. Many sellers make the mistake of presenting a program with few details. This kind

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of approach says, “Hey, Terry, let’s put this together so I can sell you more volume.” That does not sell programs. Customer: “I prefer to buy on the open market.” Master Seller: “That’s the beauty of this program, Susan. We are only programming six of the 10 loads you buy per quarter. This gets us the stock and the tallies we like and leaves us flexible to work the open market also.”

make money is when this product is tight, and it gets tight twice a year every year. That’s why we are putting it on a program.” I know many Master Sellers who have a profitable year already booked on January 1 of every year. If we promote 10 programs a month and fail at a 90% rate, we will have 12 programs in place a year from now. Happy Selling!

Customer: “What happens if I slow down?” Master Seller: “Tom, that’s why we are only programing 70% of our usage. In addition, I will work with you, just like I do now, to help you with shipments.” Customer: “What if the market comes off?” Master Seller: “That’s why we are tying it to print, John. We will be protected on the way down.” Or “Tom, we are tying this to print, which protects us, we are getting the quality and tallies we want. We make good money on this when the market is steady or flat, but where we really

August 2019

James Olsen

is the founder of Reality Sales Training, Portland, Or. After 20 years in sales, in 2001 James started his own sales training business, devoted to helping companies and individuals achieve rapid sales growth. Contact him at (503) 544-3572 or james@realitysalestraining.com.

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SALES & MARKETING SPECIAL ISSUE

By ALEX GOLDFAYN

How to maximize sales with sales perseverance ’ve worked with thousands of salespeople, helping them improve and sell more. My typical clients add 10 to 20% to their company sales, but individual salespeople often increase their performance by 50%, 100%, even 200% (yes, tripling their sales) in a single year. I’ve observed one particular trait that separates the most successful of these salespeople—the ones who do the best, and add the most sales—from those who underperform. This trait is perseverance. Thomas Edison said, “Many of life’s failures are people who did not realize how close they were to success when they gave up.” Martin Seligman, the founder of the entire field of positive psychology, did scientific research that found that per-

severance and resilience are twice as important to attaining success as talent is! This means that not giving up is two-thirds of the equation to success, and talent is just one-third of the total. Simply put, the most successful people don’t give up as much as less successful ones. They’ve developed their “sales perseverance.” Interestingly, in my experience, they (we) get rejected just as many times as other salespeople—after all, the life of a salesperson is filled with rejection. But the most successful salespeople overcome this rejection better than others. We do not accept a no as final and permanent. Rather, we understand that a no simply brings us closer to the next yes. It’s particularly interesting to examine the specific areas of their work and

New Sales Podcast

I am pleased to announce the launch of my brand new podcast, “Sell More Now.” I’ve been asked to do this for years, and I’ve thought about the best way for quite some time. It’s ﬁnally ready. Like all of my work—this article notwithstanding!—the episodes will be brief. Nearly all of them will be shorter than 10 minutes. My goal is to give you a regular boost of conﬁdence, optimism and technique to sell more now. I hope you listen before your sales meetings and calls, to put yourself into the right mindset and position to effectively increase your sales. Check it out wherever podcasts are available, including iTunes and my website, www.goldfayn.com

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August 2019

lives where the most successful salespeople apply perseverance and resilience. I’ve been studying these areas of perseverance. Here they are—the specific areas where the best salespeople apply perseverance and resilience: The single most important application of sales perseverance is in our own minds. This might be surprising, considering the other categories of perseverance listed below, but, in fact, behavior follows mindset and all success begins with how we think. Effective salespeople are resilient against “getting down” after a rejection. They are better at avoiding (the completely understandable and totally normal and common) rejection sadness that most salespeople experience. And when they do get down, they recover more quickly than others. Also, these salespeople persevere to maintain their enthusiasm and passion more effectively than others. They are excited and grateful even after they get rejected, because that means they either (1) try again with this prospect, which they correctly view as a significant opportunity, or (2) move on to the next interested prospect, which is a big win in itself. How we think shapes what we do, and even though it’s our behavior that leads to sales growth, everything starts with mindset. Fight for positivity. Fight to maintain confidence and optimism and gratitude. The key: be grateful, even for the rejection. Be positive even after hearing a no. Building-Products.com

The other areas of sales perseverance revolve around our behaviors and actions: With Individual Prospects: The most effective salespeople simply reach out to prospects more than others. Non-customers hear from them more than from other salespeople. It comes as no surprise then, that more of these prospects buy more from them. Additionally, these best salespeople apply perseverance to following up with prospects more than all other salespeople. Shocker, right? They follow up more. When there is silence, they check in and ask what’s happening. When the prospect is thinking about it, they are present. And when the prospect says no, they understand that this does not means no forever. It simply means not at this moment. So these exceptional salespeople excel at giving prospects more moments. They give many prospects many moments to say yes. With Specific Orders: The best salespeople keep trying to close the sale. They try multiple ways to close the deal during the same conversation. They will ask: How many would you like? And then they’ll inquire, when would you like us to deliver this? And then, for example, how would you like to pay? This is a form of sales perseverance. And as you can probably feel here, it’s difficult to say no to this sale! When Trying to Reach a Prospect on the Phone: The best salespeople keep trying to reach customers and prospects, even when they do not connect. They leave voicemail, but different messages in different ways. I want to be clear: I am not talking about cold calling. I am talking about connecting with people who know your name, and whose name you know. There are a lot of people like this. And the most successful among us call them—and yes, if necessary, email and text—until we reach them. When Following Up on Quotes and Proposals: As with the other examples above, we keep following up on quotes and proposals, even when the customer is quiet. Even when the customer puts us off, and asks for more time. We stay present repeatedly, because we know that this is what the customer wants. The customer asked us for a quote or proposal! It is not Building-Products.com

our job to try to help them with what they asked for. This rarely happens in a single effort. In fact, with anything good in life, one effort is almost never enough. Nearly all good things in life require multiple efforts. And selling more (helping more people more)—is a damn good thing. Give your customers and prospects—and your company and your family—the perseverance and resilience that they all deserve.

August 2019

Alex Goldfayn

is the author of the Wall Street Journal bestseller, Selling Boldly. He is the CEO of the Revenue Growth Consultancy. For more information, visit www.goldfayn.com.

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SALES & MARKETING SPECIAL ISSUE

By CONNIE KROSKIN

8 marketing secrets that shouldn’t be secret ’ve been consulting for eight years now and got to thinking about some of the unexpected, more insider types of things I wish more people knew about marketing. It’s not that I’ve only learned one secret per year. (That’s for all you smart alecks.) The Small Business Administration states that 30% of new businesses fail during the first two years of being open, 50% during the first five years. Wow. I don’t feel like doing the math, but if we met eight years ago chances are that one of us wouldn’t still be here! So here we go—eight marketing secrets that shouldn’t be secret:

1. Those who invest in marketing when others are cutting back win. Just look at any economic downturn. It’s a time to invest, not bail. Although budgets need be aligned, marketing is a profit opportunity that shouldn’t be ignored. 2. They won’t come if you build it. It’s surprising how often I’ve come across people who are surprised they aren’t busier just because they have a website or placed a social media ad. If it were really that easy, the statistics would be very different. 3. A shocking number of people think they just need to get their social media going, and that will drive tons of traffic to their website. Social media has the lowest conversion rate. The

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Lowest. These days you need to invest about $1,000 per month to get any results. Yes, really.

4. It helps to be an extrovert—in networking, sales, and because you need to brag. How else will people know? I’m definitely more of an introvert, but the quiet types don’t get as much attention. 5. Some salespeople feel like they have to explain everything about everything they offer. Most people do not want to hear it all. Know your top three key differentiators. The human brain can only handle three things at a time. Don’t go in-depth with them. Think short attention spans. 6. A surprising number feel that all it takes is to hand you their card or brochure and tell you what a good referral for them is. Here’s the thing; and this goes for number 5 above too, you are more impressed with your business than anyone else is. That’s the cold hard truth, and sorry to be so blunt about it but I’m a New Yorker and there you have it. 7. It’s NOT good to have a goal for

networking. Some people teach you to have a goal of, say, making five new contacts at an event. However, it could be a bad event, those in attendance aren’t your best target markets, only six people show up, etc. Then you have to go through with all the one-

August 2019

to-ones and you waste your time and possibly theirs. And if you’re doing that because you want to pitch to everyone, please just don’t. Don’t waste our time like this.

8. And my number one secret: What works is to tell them something different. If you are a starfish in a sea of starfish, find something unique about You—your personal key differentiators. Tell them things they may have heard before but in a different way. Take your “best customer service” to a new level—and promote what that is. And there you have it. Did I tell you something different? I hope so. I wonder what the SBA statistics would be if everyone knew these secrets out of the gate.

Connie Kroskin

is a strategic brand and marketing leader, brand positioning expert, and marketing communications guru. Align, Attract & Prosper! For more information, visit www.conniekroskin.com or contact her at connie@conniekroskin.com.

Building-Products.com

SALES & MARKETING SPECIAL ISSUE

By JOHN WAID

Sales culture eats strategy for breakfast on’t you wish your salesforce sold twice as much as your competitors, your business was extremely profitable and your salespeople and customers loved you? Is this even possible? Chik-fil-A produces twice as much revenue as any other fast food chain and they are closed on Sundays. An investment in Southwest Airlines in the early 1970’s of $10,000 dollars was worth close to $12 million in 2000—the highest return of almost any company in a 30-year period—and it’s a low cost airline in a very competitive industry. Zappos shoes went from start-up to being bought by Amazon in 10 years for more than 1 billion dollars. These companies all have one at least one thing in common. When sales managers are asked what makes for a great salesforce they’ll often cite characteristics like great products and services, excellent strategies, sound processes and systems, and being in the right place at the right time. Although these elements are important, there is one secret that the really successful sales leaders have. When the founder of Chik-fil-A was asked why they were so successful, he mentioned that the company’s success comes from its people. Regardless of your particular industry, once you establish the mindset that you are in the “people business” then it almost does not matter what you sell. The mindset of the great salesforces starts with focusing on the salespeople and their attitudes and behaviors.

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Below are three mindsets you can work on with your sales leaders to move towards having much better employee and customer loyalty and amazing financial results.

1. Salespeople First, Customers Second, Money Third Let’s face it: we are driven in companies to push the salesforce for results, and in many cases, financial results. This focus on money first leads us to then focus on customers (where the money comes from) and then as a distant third, fourth, fifth or more, we spend some resources on the salespeople. This order is actually leading to less profits, upset customers and high employee turnover. What would happen if we changed the order in which we focus on these three elements to employees first, customers second and money third? Richard Anderson, the former CEO of Delta Airlines, realized that if his company was to survive (he helped bring two airlines, Delta and Northwest out of bankruptcy) it was going to be because of the people. During his tenure at Delta he focused his time and communication on employees (who he thought of as all selling the Delta brand) and making sure they followed the company founder’s values and behaviors. To do this, Richard found an employee manual from the 1940s and rewrote it into what became the driving principles at Delta. This led to a rebirth

August 2019

in a sales and service culture which led to record profits. If you want to be truly successful, change the order in your mindset to focus on salespeople/employees first; this drives customer satisfaction and as a result more profits.

2. Sales Culture First, Structure Second, Strategy Third For at least the last century, the focus has been on sales/company strategy, creating a structure to support it and finally (as an after-thought many times) creating a generic culture. What has this led to? As companies focused on getting things done, too many strategies) were completed which did not fulfill the key element of strategy, which is to create a sustainable competitive advantage. While sales managers pushed to get things done, they created structures to support this frantic activity. After the strategy and structure were created (with little employee involvement) sales managers wondered why employees did not want to execute the strategy and why restructuring the salesforce was not working. Make your sales culture the focus of your efforts and then the structures and strategies to support that culture. This will lead to highly productive and happy salespeople who customers love and buy more from. A good culture to start out with is one based on the C.A.P. values of Curiosity, Accountability and People Skills. Building-Products.com

3. Sales Leaders First, Coaching Second, Managing Third A leader focuses on salespeople and sales culture, a coach on sales processes and a manager on sales strategies and results. It is important as a sales leader to focus on all three of these areas, in the order mentioned, as people first need to be inspired and have a culture to live, then be in a structure that grows and then be held accountable for producing great results. There are currently too many sales managers, a few sales coaches and hardly any sales leaders. This heavy emphasis on managing the salesforce with quotas and a â&#x20AC;&#x153;Beatings will continue until morale improves attitudeâ&#x20AC;? is leading to salespeople

Building-Products.com

who sell because they have to, customers that buy because they have to, and profits that come in below expectations because everyone is being forced to do something sometimes against their will. When you lead first, coach second and manage third you will have a salesforce that likes and is successful at selling, treats customers well and produces great results. A secret to having a great salesforce is to hire and promote well and this is again done with an emphasis on hiring people that fit your culture, growing them with coaching and training and holding them accountable to reach the high levels they are capable of. Remember: Sales culture eats sales

strategy for breakfast, and ensure that you adopt a culture-driven selling mindset.

August 2019

John Waid

is the founder of C-3 Corporate Culture Consulting, a speaker, trainer and author of Reinventing Ralph, who firmly believes that corporate culture is the key to success for companies. Visit www. corporatecultureconsulting.com.

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SALES & MARKETING SPECIAL ISSUE

By JILL J. JOHNSON

Understand the impact of profit per sale ew enterprises truly understand the actual profits generated by the individual sales they make. Most metrics for sales effectiveness are monitored by reviewing top line revenue results. Yet the most critical determinant of on-going business viability is understanding what revenue actually drops to the bottom line after all costs have been taken into account. You must understand what profit is generated by sales to each of your clients. Then consider the benefits and vulnerabilities the cumulative impact these sales mean to your business. Knowing the breakdown of the profitability by the individual sales to your clients can have a significant impact on your ability to achieve your business goals.

1. Undestand the Impact of the

Profit Per Sale There are many expenses that go into determining profitability for a company. The same is true for determining the profitability of a sale. Each sale has multiple components impacting its final profit. You should consider your total cost of goods sold, including investments in promotion and delivery expenses. Factoring in the costs associated with the staff time required to generate a sale is a must, too. Unfortunately, few companies consider all these expenses when developing their marketing and sales strategies. Whether you are working on growing your business or you are struggling financially, the impact of the true prof-

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its generated by each individual sale takes on greater importance.

2. Know Your Profit Per Client

Frankly, not all clients are worth the effort to generate the sale. Sometimes your growth goals for your business mean you also are growing beyond clients you have historically served. This transition period is a very vulnerable point for any enterprise. It is also very stressful because you might be wrong and wind up losing a client that could have provided even revenue value if you have not been afraid to maximize your relationship. Carefully study the costs associated with serving each client. Perhaps you have long-term clients you like personally, but if you have not taken the time to explore the costs of the sale, their value to your business may have changed dramatically over the years. Before abandoning these clients, try to identify options to trim your expenses without jeopardizing your quality. But it may be time to move on if they are not generating any real profit to your company.

3. Review Your Customer Segments Revenue Using a target marketing approach to grouping your customers into similar client segments provides you with a more detailed understanding of what is working and what is not. The key to effective target marketing is to focus your sales activities and expenditures toward those type of customers who can best be served by

August 2019

your enterprise, who will stay with you over the long-term and who will generate solid profitability.

4. Evaluate Individual Sales Profitability There are two ways of looking at your sales profitability data. One is by the individual clients. The other is by combining clients using some specific target marketing components. Grouping clients by similar characteristics makes it easier to identify trends in the data that you can use to assess the profitability of each of these major segments. There are many options for grouping your customers into segments. For a B2B client, you could group them by their industry sector, number of employees, location, etc. For a B2C customer, you could group them by where they live, personal attitudes, age, family size, income level, etc. If Client Segment A generates solid profits for you, but all of your marketing efforts are being devoted to Client Segment B who are barely break-even, the choice is obvious. You must retool your marketing and sales activity to attract more prospects from Client Segment A. 5. Monitor Individual Client Profitability A complete review of the mix of your customers and sources of sales will reveal your potential vulnerabilities if market conditions change. It is not enough in todayâ&#x20AC;&#x2122;s Building-Products.com

complex and competitive marketplace to look only at your total overall sales. If you have one customer that generates more than one-third of your sales, you are in an extremely vulnerable position if you lose that client to a merger, change of staff or if it goes out of business. Controlling and monitoring your client profitability and cost of sales allows you to take corrective action before your businessâ&#x20AC;&#x2122;s survival is at risk. This takes on even greater importance if you are overly dependent key clients for your profitability.

6. The Impact of Pricing on

Profitabililty A close companion to client profitability is understanding the impact of various pricing strategies on the perceived value of your goods and services, and how they intertwine in attracting the customers who will buy from you. Engaging in discounted pricing strategies often attract customers who are buying from you based on price, not your value. If you are in a service-oriented business, this can be a slippery slope. You may get

Building-Products.com

clients who keep you busy, but who do not generate the profits you need to build a sustainable enterprise or build your net worth. It is a delicate balancing act, but one you must realistically consider given your business objectives.

7. The Impact of Strategy on

Profits You must also consider the financial consequences of your business direction and your vulnerability to setbacks. This assessment allows you to make better business decisions and to set a more realistic strategic vision for your organization. â&#x20AC;&#x153;Finding a laneâ&#x20AC;? or picking your niche through target marketing must also incorporate a true understanding of the costs of reaching them, as well as their ability to add to your bottom line in a meaningful way.

your clients to allow you to be more detached in considering their impact on meeting your business objectives. They are no longer become just people you like, but a bigger grouping of customer segments who impact your future costs and business growth. If you are not attracting the kinds of clients generating the profitability to move your enterprise forward, it is time to reconsider all of your sales and marketing efforts.

Final Thoughts Reviewing the trend information for each of your major client segments is a highly impactful approach to revaluating the effectiveness of your sales and marketing efforts. It removes your emotions and relationships with

August 2019

Jill Johnson

is president and founder of Johnson Consulting Services, a highly accomplished speaker, award-winning management consultant, and author of the best-selling Compounding Your Confidence. For more information, visit www.jcs-usa.com.

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SALES & MARKETING SPECIAL ISSUE

By LINDSAY PEDERSEN

11 most common branding mistakes hether or not you realize it, brand is tremendously important to every aspect of your business. A well-crafted and well-executed brand strategy can cut through the noise of a million messages, articulate your promise to the customer, set you apart from the competition, scale your business, and establish yourself as a leader in the space. Problem is, most leaders underestimate and neglect their brand. Even those who think they know brand inside and out often have big misconceptions or serious flaws in their strategy—and in this case, what they don’t know can hurt them. Misunderstanding brand leads to costly mistakes. Only by recognizing common missteps and avoiding them can you fully realize the power of a strong brand and put your business ahead of the competition. Brand should be a company’s North Star. It should guide every decision you make. Forging an ironclad brand lets you occupy the single best position in the hearts and minds of customers. When you pinpoint this optimal position, you’ll be able to create value, maximize scale, and lead with purpose. On the other hand, a poorly crafted and executed brand can seriously cost you. Here’s a list of mistakes that too many companies regularly make:

Mistake #1: You don’t claim your brand position at all. Instead you let the market do it for you. Position happens whether or not you are driving it. If you allow yourself to be positioned

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by the market, it most likely will not be your optimal brand position for growth. So, the number-one mistake is to underestimate the importance of brand positioning by not intentionally claiming your brand position at all. Don’t be an accidental brand. A business’s brand can either unleash your competitive advantage or thwart it. Mistake #2: You delay on brand strategy. Ironclad brand strategy is not just for established businesses with traction. It is also for start-ups. The sooner you have a brand strategy, the sooner you’ll have both your North Star and your rudder. Know your purpose now—you can always revisit it later as your product gains market fit and momentum. As with any business, you will refine your direction as you learn more about your customer, the competitive space, and your own strengths as a business. Mistake #3: You focus on the category benefit of your product. Assuming you do participate in careful brand positioning, the most common business pitfall is choosing a positioning idea that is not ownable and differentiated. Many businesses pin their brands on a category benefit or “table stakes:” a benefit that is not only not unique to the market, but is a must-have for anyone in the space. If you sell a pancake mix (and your brand isn’t dominant), it’s vital to avoid relying on table stakes like “comfort food on Sunday mornings.” Instead, you have to focus on some-

August 2019

thing that only you bring to the pancake experience. Identify things you are particularly good at (maybe your mix is healthier, or you deliver a traditional Swedish-style pancake). Then isolate which of these are unique in the market. Finally, determine which resonates with your target audience. Mistake #4: You don’t recognize the vastness of brand. Lots of people misunderstand brand because a lot of different components and tactics make up brand. It includes logos, advertising, TV, social media, the product itself, customer experience, tagline, SEO, font, your business’s personality, and even the color of your employees’ uniforms. But none of these are, by themselves, brand. Brand is the interconnected web of what your business means and how you deliver that meaning, all made possible by your special position in your customer’s universe. To conflate brand with one of its many manifestations is to miss its power. Mistake #5: You don’t choose a focus. Brand strategy includes choosing what you are not going to focus on (even though it is scary). By choosing what falls inside your brand purpose, you are also choosing what falls out of it. Focus is how you win. You must muster the courage and effort to undertake this heavy-lifting strategic work. Choose to stand for something— one thing. In choosing your “yes,” you necessarily choose many “nos.” Shining the light on one thing darkens what lies outside that beam. Building-Products.com

Mistake #6: You fail to get the customer’s attention. A customer can engage with your business only when she knows it exists. That means you must make it easy for them to notice you. The solution isn’t to shout loudly (and most lack the marketing budget to shout loudly enough). The solution instead is to speak with bracing clarity, which most businesses fail to do. Be crystal clear about what your business is and why that matters to customers. A storefront near my office failed to get my attention. Its windows featured women clad in fleece tunics, and the signage was vague and New Age-y with an obscure tagline. I assumed that this business sold crystals and incense, so I was surprised to learn it was a Pilates studio. I practice Pilates and am in the middle of this business’s target customer profile. But this Pilates studio failed to make their business easy for me to see, so I did not see it. I did not become a customer because they did not make it easy for me to do so. Mistake #7: You forget to consider the customer’s frame of reference. A frame of reference is that thing your customer would be using if your product or service didn’t exist. It’s what they would buy instead of your offering. Businesses tend to think about their frame of reference from the business’s perspective, instead of from the customer’s perspective. This is a huge missed opportunity. It’s easy to know your most persistent direct competitors. But remember that your target is evaluating your offering in the context of other competitive options—both direct competitors and more elusive ‘substitutes.’ Therefore it’s important to consider your brand positioning with respect to all other options your customer might choose, including direct competitors, indirect competitors, and options completely outside of your space.” When it came out in 1975, Atari sold zero units at a toy industry trade show because it was priced at $79, an astronomical price point for the frame of reference of “toys.” It wasn’t until they contacted Sears, which sold a very successful home pinball machine for $200, that they sold 175,000 units by the end of the year. By distributing their console as a home sporting good, they were in a useful context for the customer—and they had a compelling price point. Building-Products.com

Mistake #8: Your brand doesn’t have “teeth.” Your brand strategy must be demonstrably true. It must have the power to make people believe it, trust it, and follow it because it offers compelling proof it will live up to its promise—in other words, it has teeth. Its teeth can be an attribute, feature, fact, guarantee, ingredient— any special thing the brand offers and follows through with that provides its promise. The less debatable, the better. Look at Zappos, a brand that represents best-in-class customer service. That is no squishy promise, because specifics back it up. For example, Zappos displays its phone number on every page of its website. And when you call it, a live person answers and sounds genuinely glad you called. Its promise of customer service has teeth. Mistake #9: You fail to narrow down your target customer. Your target customers are the people you want to attract more of. They are the people you are most able to delight because of your distinctive strengths. Most businesses characterize them in a superficial way and end up describing little of their inner world. Instead, characterize your target customer as a subtle and empathetic picture of how they view themselves. Remember that identifying your target customer does not eliminate your larger addressable market! Picture your customers as sprinkled across a dartboard. The full dartboard is your addressable market. You sell to the whole dartboard. The bullseye is your target, the customers you must aim to please the most. The target customers in the middle will ideally influence the customers on the outer circles of the dartboard.

value for your customer that she will be moved to buy and pay meaningfully for your offering. When your focus is too high on the ladder, you are not providing accessible scaffolding for the customer to believe your promise. The linchpin of a ladder is its middle. The middle is low enough to be accessible to the customer—sharpedged, believable, rationally easy-tograsp. Focusing on the ladder’s middle enables you to deliver substantial value, gain a sizeable and defensible position, and appeal to emotions. Mistake #11: You try to reach all customers with one-size-fits-all messaging. There are five stages of a customer’s journey with your brand: Unaware, Aware, Consider, Purchase and Loyal. Your goal should be to craft a messaging hierarchy for customers at every stage of the journey. Unfortunately, many people are tempted to develop a sentence or paragraph so great that it will serve all stages of the journey. Resist the temptation. There’s no one magic message that will advance all customers at all stages. Further, it’s a mistake to conflate stages of the journey, either coming on too strong too soon (conflating the Aware or Consider stage with the Purchase stage) or bragging about your product features to someone not yet liking the promise (conflating Consider or Purchase with the Loyal stage). Take your fences one at a time. It’s never too late to brush up on brand and start making better choices for your business. Don’t let past mistakes derail your future success. Even if you recognize yourself or your product or service in every common mistake, you can start turning things around today.

Mistake #10: You wind up too low or too high on the benefit ladder. A benefit ladder spells out the layers of your benefits from product features and specifications at the bottom, to functional benefits in the middle, to emotional benefits at the top. Savvy leaders shine the spotlight on the rung of the ladder that is as high as their customer currently permits them to go, but no higher. The higher the better, until it is too high. The common errors here are choosing emphasis on the ladder that is either too low (features and product attributes) or too high (the intangible, ethereal benefits). If you’re too low, features will not create high enough August 2019

Lindsay Pedersen

is the author of Forging an Ironclad Brand: A Leader’s Guide. She is a brand strategist, board advisor, coach, speaker and teacher known for her scientific, growth-oriented approach to brand building. For more information, visit www.ironcladbrandstrategy.com.

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SALES & MARKETING SPECIAL ISSUE

The best ads of the year HE MERCHANT MAGAZINE’S third annual ad competition is designed to showcase the best in LBM marketing over the last 12 months. Ads evaluated ran for the first time in The Merchant or Building Products Digest between July 2018 and June 2019. Entries were divided into four categories (fractional size, in-house de-

sign, series, and best overall). A panel judged the ads on four criteria: 1. Attention Getting. Does it make the reader stop to take a closer look? 2. Easily Understood. Does the reader in a quick glance know what is being promoted? 3. Enticing. Does it promote the company/product in an appealing way

that would make its targeted audience want to seek more information? 4. Clean. Is the layout attractive and easy to navigate, so elements don’t compete with each other and key information—particularly contact info—is easy to find? And the winners are...

BEST FRACTIONAL PAGE AD Timber Products “From Seed to Finish” “A great print ad is TOUGH to achieve. Being fractional makes it even more difficult—yet this ad accomplishes many things in a clean, simple approach.” “Tells a compelling, ‘big-picture’ story” “‘Before’ and ‘after’ begs you to read more”

Screw Products, Inc.

From Seed to Finish for 100 Years For 100 years, Timber Products has been providing the best wood products to customers day in and day out. Our business was built by combining our products with customers’ dreams to create impeccable results. Our business has grown and evolved, but our values remain the same. We’re here for you from seed to finish.

“Smart in choosing to focus on just one product— resulting in a very strong and appealing ad”

Combilift

Our patented DeckLok® System provides Code Compliant bolted connections at all critical structural locations of your deck. Available in post-manufactured, hot-dip galvanized and 316 stainless steel, DeckLok helps you exceed IRC and IBC 2006, 2009 and 2012 code requirements.

“Using very strong visuals allows this small ad to convey several important benefits of their unique product line.”

•

Ledger Connections: Anchors against deck pullout and collapse, 4,000 lbs. per set.

•

Rail Post Connections: Increases connections over 500%.

•

Stair Stringer Connections: Provides bolted connection for Stair Stringer to deck substructure.

1-800-547-9520 ti b d t timberproducts.com

“Packs a lot into a small space”

• Best Fractional Page Ad Honorable Mention – Warren Trask

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August 2019

Building-Products.com

Leadership is an action not a position. You may not have heard of us, but weâ&#x20AC;&#x2122;re a pretty big deal. A global leader in EWP and consistent innovator in the industry, weâ&#x20AC;&#x2122;ve been helping our customers grow their businesses for two decades. With an unrivaled support team, massive distribution network, and fully integrated website, we have some big ideas to help you keep your business ahead of the pack. See what we can do for you at pacificwoodtech.com

SALES & MARKETING SPECIAL ISSUE

BEST IN-HOUSE DESIGN Lonza “Measuring Contest”

“A smart and simple way to illustrate a very powerful message about their product using what matters to their audience” “Strong, straightforward message” “Easily digested message coordinates seamlessly with clever graphic”

OHC “Great combination of visual and copy that are in sync with each other. Makes you want to learn more about the product”

Everwood Treatment “Eye-popping” “Great ads catch attention and make you THINK! This ad makes you think about the things that are most important and that not all products are the same.”

“Clean and dramatic— simplicity is key”

“Good use of color to play off logo”

* Best In-House Design Honorable Mention – U2 Fasteners

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August 2019

Building-Products.com

SALES & MARKETING SPECIAL ISSUE

BEST AD SERIES Great Southern Wood “The Woodland’s Most Wanted” “The theme is catchy, funny and easy to remember.” “The beavers make you smile and want to read more. I’m curious what they’ll do next!”

ST SUPPLY THE BEAL L

teeth and nature’s highest those with leather tails, buck by all the best builders, especially and unrivaled support of the treated pine is sought after ® the Yella Tag. The five-star service YellaWood brand pressure products drives demand for ® at YellaWood .com. reputation for having high quality YellaWood brand delivers building standards. Our proven specific needs. See how the in position to meet their customer’s ® YellaWood brand puts dealers

FOR BUILDERS OF

SHAPES & SPECIES.

regarding the Preservatives, unrelated third parties. For details 36310. methods, and technologies of Abbeville, AL (the “Preservatives”) and preservative tive or write us at P.O. Box 610, products are treated with preservatives Preserving, Incorporated, see www.yellawood.com/preserva ® Wood YellaWood brand pressure treated technologies used by Great Southern

IF IT DOESN’T HAVE THIS

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.com/warranties or (SDS), please visit us at www.yellawood the appropriate Safety Data Sheet concerning our products including trademarks of Great Southern Wood Preserving, Incorporated. handling and other information ® For warranty or for important yellow tag are federally registered Ask dealer for warranty details. AL 36310. YellaWood and the write us at P.O. Box 610, Abbeville,

methods, and

“Enough cannot be said about this campaign! It’s well thought-out and executed. It’s visually appealing and on target with the audience, while being different and ‘shocking’ enough that everyone pays attention and wants to learn more! Brilliant!”

EW VERYONE

YellaWood ® brand pressure treated pine is sought after by all the best builders, especially building standards. Our proven those with leather tails, buck reputation for having high quality teeth and nature’s highest products drives demand for the the YellaWood® brand puts dealers Yella Tag. The five-star service in position to meet their customer’s and unrivaled support of specific needs. See how the YellaWood® brand delivers at YellaWood.com.

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products are treated with preservatives (the “Preservatives”) and preservative technologies used by Great Southern methods, and technologies of Wood Preserving, Incorporated, unrelated third parties. For details see www.yellawood.com/preserva regarding the Preservatives, methods, tive or write us at P.O. Box 610, and Abbeville, AL 36310.

Ask dealer for warranty details.

For warranty or for important handling and other information concerning our products including write us at P.O. Box 610, Abbeville, the AL 36310. YellaWood® and the yellow tag are federally registered appropriate Safety Data Sheet (SDS), please visit us at www.yellawood trademarks of Great Southern .com/warranties or Wood Preserving, Incorporated.

Simpson Strong-Tie “How do you get someone to pay attention to a new product line? Make them stand out with great visuals supported by clear, concise copy that targets your core audience.” “Photos tell the story” “Answers all my questions” BEST CHOICE. FIRST CHOICE. ITH

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From lumber and building materials to hardlines, Do it Best Corp. is committed to helping our members grow and achieve their dreams. Providing a trusted, comprehensive business solution uniquely tailored to the LBM marketplace is just one way we’re helping members buy, work and run smarter.

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With our LBM Total Solution, you’ll leverage our extensive mill and vendor relationships that provide uninterrupted product supply at the lowest cost – either mill-direct or leveraging our extensive lumber reload network. Members also have weekly trucks available from Do it Best hardware distribution centers with pro/tradesman products and over 350 proven merchandising planograms to enhance your showroom and encourage add-on sales. Let our team of experts show you how our LBM Total Solution is the ﬁrst and best choice to help power your growth.

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Massive support base. And that’s just the tip of the iceberg.

“Great ads are simple, and complex at the same time. They evoke an emotional response that is tied to what’s important to the target audience. This ad does it all!”

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New Brand. Deep Roots.

Pacific Woodtech “Roots” “Strong visual draws you in” “An amazing illustration that supports a simple statement while also being tied directly to the industry. Subtle and powerful at the same time!”

Thermory “Drift” “Brings the category into the spotlight in a warm and appealing way.”

“Appealing setting makes you want to climb into the ad and sit in the chair” “Beautiful product presentation”

• Best Overall Ad Honorable Mention – C&C Wood Products, Norbord Building-Products.com

August 2019

The Merchant Magazine n

MOVERS & Shakers Kelly Fox is the new president of Frontier Building Supply, Anacortes, Wa.

Chris Metcalf has joined Roseburg, Springfield, Or., as director of reliability.

Art Andrews has retired as sales mgr. and general mgr. of Malheur Lumber, John Day, Or., after 50 years in the industry, the last 30 with Malheur.

Scott Holman is now Irvine, Ca.-based district sales mgr. for MiTek USA.

Don Kavert, ex-Boise Cascade, has been named operations mgr. for BuildersMax, Anaheim, Ca. Freddy Radillo is new to outside sales of surfaces. Jeffrey Schauer, ex-HD Supply, has moved to Ganahl Lumber, Anaheim, Ca., as building material products development mgr. Sarah Pirlot is new to sales at BlueLinx, Denver, Co. Wade Hickson has been appointed general mgr. of Huttig Building Products, Auburn, Wa. Jim Schumacher has joined Parr Lumber Co., Hillsboro, Or., as regional sales mgr. overseeing three Puget Sound locations. Paul Goldstein, ex-Katerra, is now with BMC, Los Angeles, Ca., as business development mgr. for the West. Arthur Verreault, ex-Altera Windows & Doors, has joined Meek’s Lumber & Hardware, Sacramento, Ca., as director of regional sales. Sarah Spence has been promoted from mgr. of Meek’s in Vacaville, Ca., to senior sales mgr. for Metro West. Nancy Pak, ex-Home Depot, is new to inside sales with Honsador Lumber, Kapolei, Hi. Joe Hallmeyer has retired as president of Kens Stakes & Supplies, Visalia, Ca. He is succeeded by Daniel Hallmeyer. Joey Obledo, ex-Marvin, has joined Western Window Systems, as Moreno Valley, Ca.-based director of remodel sales. Ken Dzioba has joined Atlas Roofing Corp., as Seattlebased Northwest district sales mgr., overseeing Oregon, Washington and Alaska. Patrick Hooper, president, Trimlite LLC, Renton, Wa., has added the title of CEO. Jon A. Murphy, ex-AZEK, is new as VP of U.S. sales, based in Cheyenne, Wy.

Todd Hixson, Do it Best Corp., Fort Wayne, In., will now serve as LBM business development mgr. Josh Ratcliff moves to division mgr. for lumber & reload operations; Joe Corah, division mgr. for panels, distribution & specialty products; Jean Fahy, division mgr. of building materials; Corinne Beer, global sourcing associate merchandise mgr.; David Dalman, LBM reload inventory & pricing mgr.; Shannon Bearman, business analyst; and Amanda Roy, retail technology specialist. Recent hires include order clerk Jenna McDaniel, ecommerce logistics mgr. Adam Neddeff, and business technical support specialists Chris Rodriguez and Laura Watson. Julian G. Francis, Owens Corning, is slated to become president, CEO and board member of Beacon Roofing Supply, Peabody, Ma., effective Sept. 1. James T. Jones has been named VP of procurement for PPG, Pittsburgh, Pa. Jack Delaney was promoted to VP of sales at Boral Building Products, overseeing all 12 of the firm’s brands. Lisa Ayala, ex-Accys Technologies, has been named U.S. sales mgr. for U.K.-based modified wood manufacturer Lignia Wood Co. Brian McManus is stepping down as president and CEO of Stella-Jones Inc., effective Oct. 11, 2019. Eric Vachon, senior VP and CFO, will serve as interim CEO. Sam Hensen, VP and general mgr. of connectors & lateral systems at Simpson Strong-Tie, Pleasanton, Ca., has been appointed to the Habitat for Humanity East Bay/ Silicon Valley board of directors. Brad Southern, CEO, LP Building Solutions, was named 2019 North American CEO of the Year by Fastmarkets RISI. The award will be presented Oct. 29 at RISI’s North American Conference in Boston, Ma. Barb E. Dahl is welcoming showgoers to the Mungus Fungus Forest Products booth at the annual Climax, Nv., Home Show, according to company owners Hugh Mungus and Freddy Fungus.

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Building-Products.com

Being Independent

Orgill provides solutions that drive profits and help us grow our business!

“Working with Orgill, we have the freedom to be Hooten’s Hardware, not a generic cookie-cutter store. We run the business the way we know it needs to be run.” Kirk Reams l Hooten’s Hardware, Texas l An Orgill customer since 2005

Why We Like Working With Orgill: • Flexible, comprehensive retail programs • Broad product selection • Impressive retail knowledge • Supportive of our independence

Click the video link to find out how Orgill’s offerings help Hooten’s be successful!

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com

Longtime Seattle Hardware Store Relocating to Idaho

Hardwick & Sons Inc. will move its location from downtown Seattle, Wa., to Post Falls, Id. According to CEO and thirdgeneration owner Dean Hardwick, rising taxes in Washington are a driving force behind the move. Several locations in Post Falls are being considered for the 87-year-old business, but a final decision has not yet been made. In its new home, the store will still offer the same products including standard tools and some specialty tools.

Hampton Buying Conifex Mill

Hampton Lumber, Portland, Or., has agreed to purchase Conifex Timber’s sawmill in Fort St. James, B.C., with intentions to build a new facility on the site.

Hampton will pay approximately $39 million plus the market value of finished lumber and log inventory at closing, and will also receive the plant’s associated forest license. Hampton Lumber operates nine sawmills in Oregon, Washington and British Columbia, including two in the Burns Lake area of British Columbia. Steve Zika, CEO of Hampton, said that “while economic conditions are extremely challenging right now for the lumber industry in British Columbia, we believe the long-term outlook for Canadian lumber is promising. We intend to build a new sawmill in Fort St. James and look forward to building relationships with local First Nations and other community partners similar to a successful joint venture we have with the Burns Lake Native Development Corporation in the Burns Lake area.”

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Due to continued uncertain market conditions, Conifex does not expect to resume normal operations at the Fort St. James site prior to the deal closing.

Modified Wood Heating Up

The worldwide market for thermally modified wood is expected to grow at approximately 3.0% annually over the next five years, to increase from a value of $328.5 million in 2019 to $380.6 million in 2024, according to a new study by Global Info Research. Based on geography, the global thermally modified wood market can be segmented into Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Europe remains the primary market for thermally modified wood, “due to the expansion of construction and siding and decking industries in the region.” The heaviest increases in investment, however, are coming in Asia Pacific and Latin America.

Huber Settles Barrier Suit

Huber Engineered Woods, Charlotte, N.C., has settled its patent infringement suit against Martco LLC, Alexandria, La. The suit, filed in December, alleged that RoyOMartin Eclipse Weather Resistant Barrier products infringed Huber’s patents for its ZIP System sheathing and tape products. As part of the settlement, RoyOMartin agreed to suspend sales of the weatherresistant barrier and Huber will dismiss its suit.

Sherwin-Williams’ New Color Visualizer Aids Manufacturers

Sherwin-Williams’ Industrial Wood Coatings division has launched the Color Express Visualizer Program.

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August 2019

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The online solution provides wood building product manufacturers a customized tool that allows homeowners to preview alterations to their home’s exterior virtually. The program includes a variety of sample images, and also offers an “upload your own” functionality, so consumers can see siding, doors, windows, and more, blended with Sherwin-Williams colors on their home or one like it. “When making changes to their home, most consumers easily become overwhelmed with the number of colors, styles and options available. Even the smallest tweak can feel daunting,” said Doug Krusenklaus, industry director for Sherwin-Williams. “This customizable tool gives building product manufacturers the ability to make the decision-making process easier for the consumer.” A manufacturer is able to fully brand their instance of the visualizer and customize it to align with their core color strategy, which allows this online tool to serve as an extension of their website. Sherwin-Williams also offers the option to extend the core color offering, providing access to the entire spectrum of colors. The tool, according to Krusenklaus, “is mutually beneficial because it streamlines the path-to-purchase for the consumer, while helping increase exposure and awareness of the full product line-up for the manufacturer.”

Alleged Yard Arsonist Arraigned

An alleged serial arsonist who’s been accused of setting multiple fires around Seattle, Wa., including the four-alarm fire at Gascoigne Lumber Co. last fall, was arraigned on four counts of second-degree arson on July 17. Matthew D. Hooper is suspected of setting five fires between Oct. 28 and Nov. 28, 2018, and is being charged for four set within a three-mile radius over the course of three weeks. The Gascoigne fire caused an estimated $4.3 million in damage. Hooper was first identified as a suspect through surveillance footage at each of the locations where he is accused of setting fires. After the Gascoigne Lumber fire, he was accused of setting fire to wood pallets that he had stacked next to the Seattle Gymnastics Academy, according to reports. By the time charges were filed, Hooper was already in custody for two counts of third-degree assault and one count each of second-degree burglary, third-degree theft, and malicious mischief in the third degree.

Sunny 5-Year Forecast for SIPs

The global market for Structural Insulated is predicted to grow 6.5% annually over the next five years, to exceed $600 million by 2024. During the forecast period, North America’s share of the SIP market is expected to surpass 35%. In part, growth will be driven by increasing preference for low-maintenance building materials and escalating government regulations, including EPA’s Energy Star Home and the U.S. Department of Energy’s plan to cut residential energy consumption by supporting zero-energy homes development by 2020. So far, the residential sector has dominated the SIP market. However, the commercial sector is projected to witness the fastest growth over the next five years. Demand will be driven by the increasing need for high thermal insulation to reduce energy consumption in commercial buildings, and the rapid expansion of hotel chains, malls and hospitals. Building-Products.com

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(818) 953-5350 August 2019

The Merchant Magazine n

NEW Products

Design Your Deck Simpson Strong-Tie’s enhanced online tool, Deck Planner Software is designed to help deck builders and homeowners’ quickly and easily design their dream deck. Featuring 3D software, design guides and an in-app user tutorial, the free web-based design center provides a suite of intuitive tools and resources for designing and building stronger, more beautiful decks. n STRONGTIE.COM (800) 999-5099

Seal it Up Right The new PWC acrylic caulk by Bostik offers an advanced formula, fortified with silicone for long-lasting flexibility and excellent adhesion, ensuring a protective barrier against moisture both indoors and out. The general-purpose caulk provides a watertight seal around most building materials and common household surfaces including: trim, windows, door frames, sinks, tubs, shower surrounds, countertops, ceramic tile, and natural stone. n BOSTIK.COM (561) 203-2981

A New Stone Hue Boral Building Products has added several new products and colors to its accessories system for the Versetta Stone family of stone siding panels including sills in Stone Grey. A lighter gray, joining existing colors of Taupe and Charcoal, the Stone Grey sill works well with Versetta Stone’s Mission Point and Sterling stone siding colors. The sill has a 2.6” exposure and 2” thickness, with the same built-in rainscreen as the siding panels. The line is designed to provide the beauty and texture of authentic stone masonry without the added skill and time required for installation. n BORALBUILDINGPRODUCTS.COM (800) 521-8486

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August 2019

A Natural Gray That Pops Derby Building Products has added a new color, Atlantica, as the latest addition to its Beach House Shake and composite product line. The hue is a soft, silvered coastal gray tone reminiscent of cottages found in a quaint New England village. It’s the fourth color in the Beach House Shake line in addition to Sandcastle, the look of natural white cedar; Hatteras, a deep, rich weathered gray; and Pacifica, which looks like fresh western red cedar. n BEACHHOUSESHAKE.COM (844) 698-2636

Building-Products.com

Ace Offers Extra Mile Guarantee

product is present in the basements of about 2,200 houses in various stages of construction in limited markets. Most Ace Hardware is rolling out its Extra Mile Promise, a of the houses are not yet occupied. guarantee that Ace has the expert advice and supplies needWeyerhaeuser will cover the cost to either remediate or ed to help consumers successfully tackle any paint project replace affected joists. It has halted production, sales and with just one trip to the store. shipments of the product, and is collecting unused product Available at participating stores nationwide, the vow from customers. was created to address and relieve the frustration conApproximately $9 million of the product has been sold sumers deal with when faced with the proposition of yet since December 2016. Weyerhaeuser expects to spend $50another trip to the store as a result of forgotten items or not $60 million resolving the issue. enough paint. Ace is so confident in its one-trip guarantee that it will provide free delivery to consumers who may be Windows & Doors Keep Growing in need of additional paint supplies. Faster Circular Saw Residential window shipments increased 2016, “While it hurt our pride to learn this, the truth is that Milwaukee Tool’s5.7% new in Rear amounting to more thanHandle 43.2 million units shipped across while consumers trust Ace as the Helpful Place, far too Circular Saw not only the nation. Looking forward, national growthofisaexpected many of them believed that our speedy sized stores didn’t Basement Protection generates the power 15-amp to increase another 5.6% incorded 2017 before off somewhat have enough product complete their paint project,” said Bilco Co.’s new to weatherstripsaw, ittrailing also cuts faster in 2019 to 4.6% growth, a new Window John Venhuizen, president and and CEO. “We know this isn’t ping kit is easy to install andaccording offers thetomost run-time of & Door Manufacturers Association study. thereduces case, so gaps to assuage these misperceptions, we decided to Fire Sprinkler Systems to block leaves, any cordless rear handle circular In 2016, side-hinged doors increased stand our large assortment with the Extra MileResidential dirtbehind and pests from paint entering the Firepex Fireshipments of saw, capable entry of making up to unitscuts on in thea national level, alleviatPromise. Ourdoor objective as the #1, basement area. is simple: to be known Sprinkler System by by 6.1% Rehauto is9.7 million 570 2x4 per charge. anybuildconcerns over the units tools, shipped best, most helpful and most designed credible store The convenient, kit installs most in minutes to provideing home Likedecrease all M18inFUEL between 2014 and 2015. Based on the analysis of the data, forand paintmay in theaccommodate neighborhood.”other ers a competitive alternative for the saw combines a Powerstate annual growth is forecasted to climb to 5.9% in 2017 brands of steel basement doors. improving protection against brushless motor, Redlithium before to a modest 5.2% growth 2019. Plus Weyco Recalls Coated It contains a series of gaskets I-Joists injury and loss of life fromdeclining fires. battery pack, and in Redlink Architectural interior flush doors recovered from a Weyerhaeuser is recalling a batch of TJI JoistsItwith Flak designed to seal the intricate meets the requirements for intelligence. It also has an elecdecline the previous year by growing 4.5% in 2016 Jacket an odor in certain newlyfire sprinkler sysshapeProtection, and areasafter of a linking basement residential tric brake to stop the bladewith nearly 2.9 million units shipped, stile and doors constructed homes to a recent formula change in the coatdoor. The only tools required are tems as defined by National Fire after a cut,while and gears thatrail don’t continued its upward trend withoiling. a 6.6% increase with nearingtinthat included resin.Protection The issueAssociation. is snips or largeformaldehyde-based scissors. require ly 0.44 million units shipped. Annual growth of flush doors isolated to Flak Jacket product made after Dec. 1, 2016, is forecast to be 4% inn 2017 before declining to 1% in n n BILCO.COM REHAU.COM MILWAUKEETOOL.COM and does not affect any of the company’s other products. 2019. Stile and rail doors are also predicted to grow 4% in (800) 854-9724 289-8739 (800) 729-3878 Flak Jacket Protection is a coating applied to(800) I-joists to 2017 and decline to 1% by 2019. enhance fire resistance, and it is not widely in use. The

Wholesale Industrial Lumber

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www.reellumber.com Building-Products.com The Merchant Magazine 20

August 2017

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.)

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.

August 2019

The Merchant Magazine n 53 Building-Products.com

Simple-Snap Decking Classy Glass Options Two new doorglass styles, Beaufort and Davidson, are new to Western Reflections’ collection of decorative glass for doors and windows. Beaufort is inspired by the “modern plantation” style. A member of the Traditional Style of Western Reflections products, its wide, flat caming simulates traditional grille patterns and coordinates with many of today’s architectural styles The Davidson style pairs bronze-vein, wroughtiron caming with high-privacy arctic glass to emulate the arching ceilings found in cathedrals around the world.

DuraLife’s Step-Clip is now designed to fit Kebony decking. The product uses easy-to-install strips along with custom profiled deck boards to minimize the time and labor spent surfacing decks. Strips are placed directly onto the joists with a pneumatic nail gun. Strips are designed to protect the top of the joists, eliminating the need for joist protection tape. It also properly spaces each deck board. Once the strips are laid, the installer steps on the Kebony deck boards to snap them into place. n KEBONY.COM (855) 230-5656

n WESTERN-REFLECTIONS.COM (800) 507-8302

Boots Tough as Nails Bogs’ newest waterproof workboots are designed to deliver comfort to the toughest jobs. The Rebound midsole provides all-day cushioning and energy return to keep tradesmen on the go. A seamless heel-outsole construction protects against outsole separation. The insulated version is equipped with 3MM Neo-Tech insulation for subzero temperatures, and Max-Wick and EverDry to move sweat away to keep your foot dry. n BOGSFOOTWEAR.COM (877) 321-2647

The Merchant Magazine n

More Rubberized Flooring Options Ecore has streamlined its ECOsurfaces flooring product offering to include 32 colors. Available in rolls and tiles, this high-performance, durable vulcanized composition rubber flooring offers an ergonomic solution with superior slip resistance and enhanced acoustic properties. The flooring features an array of metal- and woodlike neutrals accented by splashes of complementary colors. n ECORECOMMERCIAL.COM (877) 258-0843

August 2019

Building-Products.com

Upgraded Software Solutions ECi Software Solutions has released upgraded versions of its LBMH division software productsâ&#x20AC;&#x201D; Spruce, an end-to-end management software for the LBM industry, and RockSolid MAX, a cloud-based POS software for independent hardware stores, home centers, and convenience lumberyards. The updates include significant new industry-specific features that provide opportunity for hardware stores and LBM businesses to run more efficient operations. RewardsPlus, an internal customer loyalty program, will help target, track and ultimately increase sales by rewarding customers for repeat purchases. ProLink in a Browser allows customers to view and reprint invoices or statements, view pricing, and prepare and place orders using any internet browser connection.

Picture Perfect Decking Deckorators is introducing a new composite picture framing board designed specifically for use as a picture frame or breaker board that complements Deckorators decking. Featuring patented Eovations technology, boards are available in a dark slate color and 21-ft/ solid profile. Matching fascia is available in 12-ft lengths and both 8-inch and 11-Âź-inch widths. n DECKORATORS.COM (800) 332-5724

n ECISOLUTIONS.COM (800) 959-3367

Roof Deck Seam Tape Alside is keeping curb appeal in mind by adding black to the Charter Oak and D5 Punched Vinyl Soffit lines. The hue adds a bold, sleek look to the line. The products are an attractive, low-maintenance option for porch ceilings, overhangs or focal points where you want to create high-impact appeal.

Contractors can now offer an additional layer of protection with TAMKOs TW Seam Tape, used to close sheathing gaps on the roof deck and help keep water from entering the home. The tape is a flexible, self-adhering SBS-modified bitumen membrane with a polymer film on the surface and a removable treated release film on the adhesive side. It has a textured, skid-resistant surface for added safety of the roofing crew.

n ALSIDE.COM (800) 299-6009

n TAMKO.COM (800) 441-7190

Building-Products.com

August 2019

Jet Black Soffits

The Merchant Magazine n

WILLAMETTE VALLEY GOLF Photos by Archie Brown

WILLAMETTE VALLEY Hoo-Hoo Club honored past member Bill Hallstrom at its annual golf tournament June 7 at Shadow Hills Golf Course, Junction City, Or. [1] Sue Hallstrom, Karl Hallstrom, KayCee Hallstrom, KayLee Hallstrom. [2] Tod Kintz, Alex Cousins. [3] Nathan Bucey. [4] Brad Myers, Brian Myers. [5] Roger Condoes, Dale Deshaw. [6] Kevin Lang, Joe Laberge. [7] Bill Bourgaizce, Bryce Campbell. [8] Michael Kirkelie, Mark Denner. [9] Rick Siltanen, Ned Olsen. [10] Zack Konnie, Jeff Hendrickson. [11] Mike Jones, Ken Reffstrup. [12] Garry Greathead, Gene Klohs. [13] Jim Steele, Nick Klohs. [14]

32 n

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Charity Isakson, Dudley Mills. [15] Sue Morgan. [16] Sandy Dellinger, Ruth Butler. [17] Mark Mitchell, Steve Grimes. [18] Reid Schooler, Frank Forward. [19] Gary Newman, Bryan Borovec. [20] Bob Brass, Jerry Farley. [21] Joe Honochick, Mark Grube. [22] Craig Grifith, Norm Persons, Mark Osuna. [23] Dave Andersen, Mike Mannex. [24] Pat Myers. [25] Mike Holm, Nick Smith. [26] Jeremy Weist, Brad Warner. [27] Rod Miles, Virgil Lamb. [28] Dale York, Randy Stout. [29] Scott Boyer, Author Spears. [30] Bryce Jonas, Jay Hart. [31] Bob Kuester, Will Kuester. [32] Joe Emmons. Building-Products.com

ASSOCIATION Update

DATE Book

National Lumber & Building Material Dealers Association has blocked out The Broadmoor in Colorado Springs, Co., Oct. 8-10 for its annual Industry Summit.

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

North American Wholesale Lumber Association will hold its upcoming Wood Basics course Sept. 9-13 at Oregon State University, Corvallis, Or. The four-day course includes classroom training and field operations. Expert instructors will cover negotiations training, product segmentation, price & cost trends, logistics & transportation, and forest management & operations.

Big Home Building & Remodeling Show – Aug. 9-11, sponsored by Building Industry Association of Hawaii, Neal S. Blaisdell Center, Honolulu, Hi.; www.biahawaii.org.

Mountain States Lumber & Building Material Dealers Association wants members to save the date for its upcoming clay shoot Sept. 6. Location and other details will be announced in mid-August. Western Hardwood Association is reaching out to all solid hardwood suppliers in the U.S.—not just the West— to attend its annual convention Sept. 11-12 in Portland, Or. Not only will attendees have the opportunity to network with buyers and sellers from throughout the country, they will be treated to a stellar line-up of speakers and panels on such topics as China tariffs, anti-dumping regulations, hardwood promotion, optimization of low-grade hardwoods, and modified wood development and application. BC Wood will roll out the red carpet for over 800 invitees from around the world for its 16th annual Global Buyers Mission Sept. 11-13 in Whistler, B.C. An educational WoodTALKS program will be held concurrently for architects, contractors and engineers. Hoo-Hoo International is gearing up for its 127th annual convention Sept. 14 at Westin Resort & Spa, Whistler, B.C. The convention will offer city tours, boat excursions, and plenty of receptions great for networking. The event will conclude with an installation of the organization’s new Snark of the Universe.

Black Bart Hoo-Hoo Club – Aug. 9, annual trap shoot, Ukiah Rifle & Pistol Club, Ukiah, Ca.; www.blackbarthoohoo181.org.

Los Angeles Hardwood Lumbermens Club – Aug. 10, BBQ, Yorba Linda, Ca.; www.lahlc.net. California State Home & Garden Show – Aug. 16-18, McClellan Conference Center, McClellan Park, Ca.; www.calstateshows.com. Tacoma-Olympia Hoo-Hoo Club – Aug. 18, board meeting, Tacoma, Wa.; Aug. 20, golf, Orting, Wa.; tbilski614@aol.com. Lumbermens Merchandising Corp. – Aug. 21, LMC Hardware Express, Chicago, Il.; www.lmc.net. Tacoma-Olympia Hoo-Hoo Club – Aug. 21, board meeting, Tacoma, Wa.; tbilski614@aol.com. Orgill – Aug. 22-24, fall dealer market, McCormick Place, Chicago, Il.; www.orgill.com. San Diego Fall Home Show – Aug. 23-25, San Diego Convention Center, San Diego, Ca.; www.homeshowsandiego.com. Ace Hardware – Sept. 6-8, fall convention, Georgia World Congress Center, Atlanta, Ga.; www.myace.com. North American Wholesale Lumber Association – Sept. 9-13, Wood Basics Course, Oregon State University, Corvallis, Or.; www.nawla.org. Western Hardwood Association – Sept. 11-12, annual convention, Portland, Or.; www.westernhardwood.com. BC Wood – Sept. 11-13, Whistler, B.C.; www.bcwood.com. Hoo-Hoo International – Sept. 11-15, 127th annual international convention, Whistler, B.C.; www.hoo-hoo.org. American Wood Protection Association – Sept. 15-19, technical/ committee meetings, Anchorage, Ak.; www.awpa.com. Tacoma-Olympia Hoo-Hoo Club – Sept. 18, board meeting, Tacoma, Wa.; Sept. 20, golf, Orting, Wa.; tbilski614@aol.com. Pacific Northwest Association of Rail Shippers – Sept. 18-19, annual meeting, Vancouver, B.C.; www.pnrailshippers.com. Moulding & Millwork Producers Association – Sept. 22-25, fall conference/plant tours, New Orleans, La.; www.wmmpa.com. Tacoma-Olympia Hoo-Hoo Club – Oct. 1, general meeting, Tacoma, Wa.; tbilski614@aol.com. National Hardwood Lumber Association – Oct. 2-4, annual convention, New Orleans, La.; www.nhla.com. True Value – Oct. 3-6, Fall Reunion convention, Chicago, Il.; www. truevaluecompany.com. World Millwork Alliance – Oct. 6-10, annual convention & show, Reno, Nv.; www.worldmillworkalliance.com. National Lumber & Building Material Dealers Association – Oct. 8-10, Industry Summit, The Broadmoor, Colorado Springs, Co.; www.dealer.org.

DAVID WEEKLEY HOMES recently presented its A,A Partner of Choice Awards for 2018, recognizing suppliers with the highest rankings in both quality and service performance based on world-class supplier evaluation metrics. Winners included Weyerhaeuser, Simpson Strong-Tie, James Hardie, Bosch and Thermador. Weyerhaeuser won for the eleventh time— (left to right) David Weekley’s Orlando, Fl., purchasing manager Kami Parks, Weyerhaeuser director of wood products marketing Sheli Derato, Weyerhaeuser national accounts manager Shelly Jackson, and chairman David Weekley. Building-Products.com

Los Angeles Hardwood Lumbermens Club – Oct. 10, meeting, Orange, Ca.; www.lahlc.net. Railway Tie Association – Oct. 15-18, annual meeting, Tucson, Az.; www.rta.org. Southern California Hoo-Hoo Club – Oct. 16, initiation meeting & golf, Chino, Ca.; www.hoohoo117.org. North American Wholesale Lumber Association – Oct. 16-18, Traders Market, San Antonio, Tx.; www.nawla.org. Do it Best – Oct. 18-21, fall market, Indianapolis, In.; doitbest.com. August 2019

The Merchant Magazine n

IN Memoriam Andrew John “Andy” Honzel, 88, retired head of Columbia Forest Products, Portland, Or., passed away June 18 in Lake Oswego, Or. The graduate of Santa Clara University was the son of Andrew Honzel Sr.,

who founded Columbia’s predecessor, Klamath Hardwoods. Under Andy, who rose to president, CEO and ultimately chairman of the board, the company grew from a single plant in Klamath Falls to the largest producer of hardwood plywood and veneer in North America.

CLASSIFIED Marketplace Rates: $1.20 per word (25 word minimum). 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 art furnished “camera-ready” (advertiser sets type), $65 if we set type. Send ad to Fax 714-486-2745 or dkoenig@526mediagroup.com. Checks payable to 526 Media Group. Deadline: 18th of previous month. Questions? Call (714) 486-2735.

HELP WANTED

FOR SALE

HIGHLAND LUMBER Sales Inc., Anaheim, is looking for an experienced local industrial salesperson. Our custom manufacturing capabilities include Hardwood and Softwood with on-site milling and priming services. We also have an opportunity in Georgia for a salesperson at our distribution warehouse. Generous commission-based compensation including a 401/k match, health care benefits, and a friendly, family-like culture to work with. Please contact Dan LoBue at dlobue@gmail.com or (714) 778-2293.

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He also served as chairman of the board of the Oregon Forest Industries Council. Andrew J. “Andy” Richardson, 54, lumber broker with Emerald Forest Products, Eugene, Or., passed away May 20 from complications due to health problems. After graduating from the University of Oregon in 1986, he joined the forest products industry, culminating in 11 years with Emerald. Jim D. Vergobbi, 89, former manager of the Forest Products wood treating plant and sawmill in Kellogg, Id., died July 9 in Kellogg. He attended the University of Idaho, then served in the Army during the Korean War. In the 1950s, he started as a carpenter with Bisaro Brothers, Kellogg. He later served as mayor and a county commissioner until retiring. Neil Manford Geer, 89, former lumber grader with Vaagen Bros. Lumber, Colville, Wa., died July 1. An Army veteran of the Korean War, he worked for Cel Chout Mill in Colville, until it burned down. He then joined Vaagen Bros., retiring in 1992.

Plant Manager, Clatskanie, OR

Our Clatskanie mill procures logs from a wide variety of timberland owners in northwest Oregon and southwest Washington. One of the few mills in the Pacific Northwest that can process large logs, the Clatskanie mill produces a wide variety of products, including power transmission arms, appearance-grade timbers and long-length dimensional lumber.

Stimson Lumber Company is seeking a Plant Manager for our Clatskanie, Oregon Mill. In this role you will drive continuous improvement and optimization of all of our processes, while upholding Stimson’s Company values of safety, respect and hard work. The Plant Manager directs and manages all plant operations through team work, collaborative problem solving and focused execution. This role is accountable for all production aspects of the plants performance, ensuring high quality production, optimizing processes, and preventative and corrective maintenance of the facility, all in an efficient and safe manner.

Navigate online to www.stimsonlumber.com to learn more. Apply today. 60

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August 2019

Building-Products.com

ADVERTISERS Index Page 58

Building-Products.com www.building-products.com

Pelican Bay Forest Products www.pelicanbayfp.com

C&C Resources www.ccresourcesinc.com

ProWood www.prowoodlumber.com

C&E Lumber Co. www.lodgepolepine.com

Cover I

Redwood Empire www.buyredwood.com

CMPC www.selex.cl

Reel Lumber Service www.reellumber.com

Combilift www.combilift.com

Remodeling Show www.remodelingdeck.com

DeckExpo www.remodelingdeck.com

Seneca www.senecasawmill.com

Deckorators www.deckorators.com

Cover IV

Simpson Strong-Tie www.strongtie.com

Fasco America www.fascoamerica.com

CONNECT. LEARN.

ELEVATE YOUR526 Media Group 58 www.building-products.com CRAFT. 48

• Connect with thousands of industry participants, experts and influencers • Experience new cutting edge products & services from hundreds of building product manufacturers • Hands-on training through LIVE Building and Business Clinics

• In-depth conference program with 50+ education sessions from 7 new seminar tracks • New! Financial and Leadership Boot Camps

Fontana Wholesale Lumber www.fontanawholesalelumber.com Huff Lumber Co. www.hufﬂumber.net

International Wood Products www.iwpllc.com

Jones Wholesale Lumber www.joneswholesale.com

• Enjoy fun networking events and meetups

LOUISVILLE 7

EXHIBIT HALL: NOVEMBER 7-8 CONFERENCE: NOVEMBER 6-8 KENTUCKY INTERNATIONAL CONVENTION CENTER LOUISVILLE, KENTUCKY

Maze Nails REGISTRATION www.mazenails.com

OPENS IN JULY

CONNECT. LEARN.

ELEVATE YOURStimson Lumber Co. 60 www.stimsonlumber.com CRAFT. 51

Swaner Hardwood www.swanerhardwood.com

Swanson Group Sales Co. www.swansongroupinc.com

• In-depth conference program with 50+ education sessions from 7 new seminar tracks • New! Financial and Leadership Boot Camps

Thunderbolt Wood Treating www.thunderboltwoodtreating.com

Timber Products Co. www.timberproducts.com

• Enjoy fun networking events and meetups

LOUISVILLE

5 EXHIBIT HALL: NOVEMBER 7-8 CONFERENCE: NOVEMBER 6-8 KENTUCKY INTERNATIONAL CONVENTION CENTER LOUISVILLE, KENTUCKY

TruWood/Collins Products LLC REGISTRATION www.truwoodsiding.com

OPENS IN JULY

www.remodelingdeck.com UC Coatings www.uccoatings.com

MCL www.remodelingdeck.com Lumber Products www.mid-columbialumber.com

Universal Forest Products www.ufpedge.com

Cover II

Norbord www.norbord.com

Rough TiMbeRs Utah Wood Preserving Co. uTiliTy Poles www.utahtreatedwood.com PRessuRe TReaTed

North American Wholesale Lumber Assn. www.nawla.org

Cover III

Borates CA-C

luMbeR

• Robert Moore

Orgill www.orgill.com

Pacific Woodtech www.pacificwoodtech.com

FiRe ReTaRdanT

TReaTed luMbeR Western Lumber Co. and PlyWood www.westernlumber.com Call the experts:

Above + Ground Contact

• Jim Winward

UTAH WOOD PRESERVING CO.

Western Woods Inc. www.westernwoodsinc.com

1959 SOUTH 1100 WEST WOODS CROSS, UTAH

PHONE - WOODS CROSS: (801) 295-9449 FAX (801) 295-9440 PHONE - SALT LAKE (801) 262-6428 FAX (801) 748-0037

Weyerhaeuser Distribution www.weyerhaeuser.com

Next Month in The Merchant Magazine – OSB, Panels & Plywood – California Redwood – Western Red Cedar Building-Products.com

August 2019

The Merchant Magazine n

FLASHBack 60 Years Ago This Month

S ixty

years ago, the August 1959 edition of The California Lumber Merchant reported on manufacturers’ attempts to help LBM dealers benefit from the trend toward component-built housing. Masonite Corp. joined forces with Koppers Co. to develop an insulated wall component for use in tract homes. “The trend to component construction, aside from the uniformity of quality and construction standpoints, is an economic necessity,” noted Masonite VP of sales Paul Shoemaker. “Components made under mass production methods in the factory cost less than conventional construction by costly labor in the field. “Another factor often overlooked is that in our 1960-1965 economy we will not have the labor to build all the homes we need by conventional construction methods.” He added that the rapid increase in use of components for home construction was also due to builders and lumber dealers feeling the competition from— and mimicking the production techniques of—producers of manufactured homes. The researchers were working on both exterior and interior wall units, which utlilized Koppers’ polystyrene, formed-in-place, sandwich-type core, with prefinished siding and a prefinished interior of Masonite hardboard. The exterior load-bearing wall panels would have insulation, vapor barrier, two factory-finished surfaces, and wiring and heating facilities; while the interior partition wall panels would likewise have prefinished surfaces, be narrow to save floor space, moveable and functional. In other news of August 1959: • Salesmen for National Gypsum Co. were using a dramatic deskside test to demonstrate the nailholding power of their new Gold

The Merchant Magazine n

TWIN-CITY Lumber Co., San Rafael, Ca., ran a series of “twin ads” on covers of The California Lumber Merchant.

Bond Brace-Wall “N” Insulation Sheathing. The salesman hammered a nail into a 5”-square sample of the sheathing and attached a scale to the nail head. He then invited the prospective customer to hold the sample while he pulled on the scale, illustrating nail-holding power in excess of 40 lbs. • Ernest F. Ganahl, a pioneering lumber merchant of Anaheim, Ca., died July 29, 1959, at age 70. He became associated with the business in 1904, at age 15, when his family purchased the old Grim Lumber in downtown Los Angeles. Ernest opened the Anaheim yard in 1922 which he co-owned with his son, John, at the time of his death. • A new study disclosed that retail lumberyards were losing from 5% to 38% of their profits annually due to loose cost-control procedures. “Low profit ratios, both on sales and capital investment, in the retail lumber industry are often the result of antiquated and inadequate costcontrol methods,” said Harold F. Birnberg, senior consultant for Wolf Mangement Engineering Co. “While each dealer must take into account his own individual situation and the competitive positon of his operation, certain practices that

August 2019

often occur can be pinpointed as harmful.” The study uncovered three main control or costing errors: 1. Discounting was erratic and often did not take into account the yard’s real costs, based on the types of customers involved. 2. Services weren’t accurately reflected in cost calculations. 3. Many dealers did not keep track of their purchases in a sound and orderly fashion. These cost control weaknesses were frequently accentuated by inefficient yard layouts and inadequate mechanization, both of which bloated operating expenses. Birnberg advised three ways a yard could check to discover its true costs: l. Differential costing (taking into account the hidden items of cost involved in selling lumber) 2. Yield Equalizing (all costs should be covered by the price structure of the yard’s whole line, regardless of which items are selected for competitive pricing) 3. Standard Purchase Costs (purchase costs should be recorded for every item sold, as they are sold, allowing the yard’s costs to be known at a glance) Unfortunately, point-of-sale and business management software were still decades away.

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