The Merchant May 2013

DECKING: BETTER STORING, BETTER SELLING  NAWLA WHOLESALERS SPECIAL ISSUE

The

MERCHANT

MAY 2013

Magazine

THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

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Product Features

CANADA

THUNDERBOLT WOOD TREATING CO. INC COLORADO Riverbank, CA 800-826-8709 www.thunderboltwoodtreating.com FONTANA WHOLESALE LUMBER Fontana, CA 909-350-1214 www.fontanawholesalelumber.com

Compare and see.

Take the EverGrain Deck Board Challenge. ®

Compare EverGrain’s beauty side-by-side vs. the appearance of the leading competitor and see the difference it makes for your customers.

Challenge 1: Random Look LEADING COMPETITOR

PATTERN REPEATS EVERY 37- 3/8"

EVERGRAIN® ENVISION® PATTERN NEVER REPEATS ACROSS ENTIRE BOARD

Challenge 1: First, notice how the leading competitor’s pattern repeats every 37- 3/8 inches—that’s the same grain pattern repeated five times on a single 16-foot board. But EverGrain creates a random pattern that never repeats across the entire board for a more natural wood look.

Challenge 2: Wood Grain Beauty LEADING COMPETITOR

Challenge 3: Limited Warranty* RESIDENTIAL LIMITED WARRANTY

COMMERCIAL LIMITED WARRANTY

LABOR LIMITED WARRANTY**

LEADING COMPETITOR

25 YEARS

10 YEARS

0 YEARS

EVERGRAIN & EVERGRAIN ENVISION

20 YEARS

20 YEARS

5 YEARS

EVERGRAIN ENVISION

Challenge 2: The competitor’s extruded board features an embossed repeating pattern on the surface of the board. EverGrain’s compression molded process creates a grain with dramatic and lasting beauty.

Challenge 3: Finally, compare limited warranties. EverGrain offers a 20-year commercial Limited Warranty and covers both materials and labor for the first 5 years of the Limited Warranty.**

To learn more about EverGrain, visit EverGrainChallenge.com.

EverGrain

Envision Bonded Composite Decking

©2013 TAMKO Building Products, Inc. TAMKO, EverGrain and Envision are registered trademarks of TAMKO Building Products, Inc. *This comparison is based on the leading competitor’s standard limited warranty compared to TAMKO’s Limited Warranty. To obtain a copy of TAMKO’s Limited Warranty, visit us online at tamko.com or call us at 1-800-641-4691. **Coverage for the reasonable cost of labor does not include the cost of removal or disposal of previously installed decking material.

May 2013

The

Volume 91  Number 11

MERCHANT

Special Features 9 INDUSTRY TRENDS

BUYERS SEEK “TRUTH IN DECKING”

10 FEATURE STORY

COMPOSITES FOR MORE THAN DECKS

12 MARGIN BUILDERS IMPROVE YOUR OF DECKING

STORAGE & HANDLING

14 PRODUCT SPOTLIGHT

COMPOSITE DECKING BENEFITS FROM ADVANCES IN EUROPEAN TECHNOLOGY

32 SPECIAL SECTION: NAWLA

TIPS FOR WHOLESALERS ON SALES, NETWORKING, CREDIT, EDUCATION

56 PHOTO RECAP

WEST COAST DEALERS’ GOLF

CHANGE OF ADDRESS Send address label from recent issue, new address, and 9-digit zip to address below.

POSTMASTER Send address changes to The Merchant Magazine, 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872.

The Merchant Magazine (ISSN 7399723) (USPS 796560) is published monthly at 4500 Campus Dr., Ste. 480, Newport Beach, Ca. 92660-1872 by Cutler Publishing, Inc. Periodicals Postage paid at Newport Beach, Ca., and additional post offices. It is an independently-owned publication for the retail, wholesale and distribution levels of the lumber and building products markets in 13 western states. Copyright®2013 by Cutler Publishing, Inc. Cover and entire contents are fully protected and must not be reproduced in any manner without written permission. All Rights Reserved. It reserves the right to accept or reject any editorial or advertising matter, and assumes no liability for materials furnished to it.

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Magazine

In Every Issue 6 TOTALLY RANDOM 16 COMPETITIVE INTELLIGENCE 18 OLSEN ON SALES 26 MOVERS & SHAKERS 29 APP WATCH 31 IN MEMORIAM 48 FAMILY BUSINESS 50 MASTERING LEADERSHIP 52 NEW PRODUCTS 59 ASSOCIATION UPDATE 60 CLASSIFIED MARKETPLACE 61 DATE BOOK 62 IDEA FILE 62 ADVERTISERS INDEX

Online BREAKING INDUSTRY NEWS, INDUSTRY EVENT PHOTO DOWNLOADS, & DIGITAL EDITION OF THE MERCHANT

BUILDING-PRODUCTS.COM Building-Products.com

TOTALLY Random

By Alan Oakes

The

MERCHANT

Magazine

www.building-products.com

A publication of Cutler Publishing

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

Flip-flops aren’t just for politicians

I

T WAS JUST announced that the c.e.o. of J.C. Penney is out. Nothing unusual perhaps, except that it highlights how wrong decisions can cause the downfall of the best managers. It also shows that if you must flip-flop, do it and do it fast!

First, some background: I haven’t been in a J.C. Penney for some time, mostly because the stores have seemed 20 years out of date compared to Macy’s, Bloomingdale’s, and others. In my rare visit, the merchandise mix seemed unfashionable and the stores were unappealing. They lacked any real identity.

After years of mismanagement, a new hot-shot c.e.o. was brought in from Apple and, as is usual when new managers come in, radical surgery took place. The problem was what may work in an Apple Store may not work in a JCP. And in the wantit-now environment of Wall Street and instantaneous performance, even if the new plan could work, it almost certainly is not likely to be given the time to succeed.

The problem is, when I heard of the new plan about 16 months ago, my first inclination was that it was never going to work. The turnaround strategy of moving to new and perhaps younger brands to attract younger shoppers, while making some sense (indeed, some results suggested it was slowly working), was too slated towards shoppers who do not go to JCP and instead alienated current shoppers, leading to massive losses and a large drop in revenue. Wholesale shifts are always risky and, in this case, wrong. But that was only part of the change. The largest shift in strategy was to get rid of sales events and move to everyday low prices. A horrible decision!

If you train your customers to expect end-of-week sales each and every week and they continue to see advertising from every other competitor while you cut your ad budget substantially, then over time you get what you deserve. If you read that at Macy’s that shirt you need has been discounted from $49.95 to $24.95 (and additional discounts will bring it down to $16.95), then you are not going to check out what JCP has, even though JCP may price the shirt every day at $19.95. We are trained to go to the store advertising the big sale price. Out of sight, out of mind!

We all want a “sale” and to announce them, we all need to advertise them.

Experience is making mistakes and learning from them. If you manage the numbers, it soon becomes clear what is working and what is not. I do not care who it is (including myself), we have all made wrong business decisions (which is why there are so many corporate management changes). The real failure is not to admit a wrong decision and make a change. If you need to flip-flop, do it! Don’t make a mistake that everyone knows is a mistake and stick with it because of pride or to avoid looking weak. In fact, I would argue that it makes you weak to not adjust as target numbers and dates come and go and results are not happening.

The worst mistake you can make is to alienate your regular customers. Yet we often don’t look two or three steps ahead to see how our decisions affect others.

Fortunately, the public can be somewhat forgiving. Coca-Cola’s turnaround following its disastrous formula change about 25 years ago provides a great lesson about flip-flops for business schools today. Possibly the biggest marketing fiasco of all time (turning a beloved product into one current customers hated) was defused after long and loud mea culpas from executive management, aggressive advertising, and a PR campaign that boosted the stock price 70% in six months. So the moral is, when you are wrong, admit it and make changes fast.

Lastly, as we hit the second quarter, the year has started well by all accounts, but supply has its issues and it will be interesting to see how the industry handles this challenge and the higher prices that will result.

Publisher Alan Oakes ajoakes@aol.com Publisher Emeritus David Cutler Director of Editorial & Production David Koenig dkoenig@building-products.com Editor Karen Debats kdebats@building-products.com Contributing Editors Dwight Curran James Olsen Carla Waldemar Advertising Sales Manager Chuck Casey ccasey@building-products.com Administration Director/Secretary Marie Oakes mfpoakes@aol.com Circulation Manager Heather Kelly hkelly@building-products.com

How to Advertise

Chuck Casey Phone (949) 852-1990 Fax 949-852-0231 ccasey@building-products.com Alan Oakes www.building-products.com Phone (949) 852-1990 Fax 949-852-0231 ajoakes@aol.com CLASSIFIED David Koenig Phone (949) 852-1990 Fax 949-852-0231 dkoenig@building-products.com

How to Subscribe

SUBSCRIPTIONS Heather Kelly Phone (949) 852-1990 Fax 949-852-0231 hkelly@building-products.com or send a check to 4500 Campus Dr., Ste. 480, Newport Beach, CA 92660 U.S.A.: One year (12 issues), $22 Two years, $36 Three years, $50 FOREIGN (Per year, paid in advance in US funds): Surface-Canada or Mexico, $48 Other countries, $60 Air rates also available.

SINGLE COPIES $4 + shipping BACK ISSUES $5 + shipping

Alan Oakes, Publisher ajoakes@aol.com

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Building-Products.com

INDUSTRY Trends

By David Elenbaum

LBM industry pursues “truth in decking”

S

INCE ITS INCEPTION ,

composite lumber—specifically decking—has undergone a terrific number of ups and downs. There have been failures from a structural standpoint, mold and mildew, grammar mishaps (such as calling the products “maintenance free”), and more.

The class action arena has been lucrative for lawyers, to say the least. But why? I like to think that some of the problems were because some clown made a poor product, some were because there was no regulation on what was being produced, and some of it is from good people making a good product that was sold as a perfect product, which doesn’t exist.

After 20-plus years, the product group has certainly transformed to overcome these “growing pains,” as I like to call them. That’s good news. The surviving brands have gotten better at spreading the word of the incredible quality of their products.

But what about disclosing their limitations? How does one even know the limitations of a piece of plastic that is a mixture of so many chemicals, polymer compounds, organic and non-organic fillers, and other “proprietary mixtures”? Can we take the salesman’s word for it?

Perhaps we can read the MSDS sheet, do some online research, or maybe look for ICC or CCRR approval. I, for one, being a reasonably educated member of the industry, do in fact look for all three.

Salespeople know their products, which are likely made by a reputable company and have the appropriate code approval (or it’s pending). But what if you are a homeowner, or a contractor who just can’t focus the time and energy on learning if the one board your client picked out is a piece of gold or the opposite? You sure can’t believe what you read on the Internet, despite what they say on TV. So, a couple of years ago, a few of us at the North American Deck & Railing Association (NADRA) got together and decided that some kind of “truth in decking” disclosure would be kind of neat. It could establish standardized testing protocols for the industry, so the scores from the tests could be evaluated on a level playing field, and then the results could be published along with nonBuilding-Products.com

code required performance data on a label of sorts so Mr. and Mrs. Jones could make an informed decision about their decking purchase.

The NADRA Consumer Product Awareness Charter (CPAC) was formed to create the consumer guide for the deck and rail industry. Goal one is to gather information about what all of the leading manufacturers are using to test products and try to establish standard equipment and calibration.

Goal two is to identify five areas of consumer concern and develop tests for those areas, such as the solar heat gain co-efficient on the board surface.

Finally, this data would be published, along with the ICC or equivalent code approval on a label that should accompany an information packet, so consumers can quickly determine how products compare to each other. Similar programs include the NFRC window label or the familiar energy guide found on refrigerators and other appliances.

This program will benefit everyone in the supply chain, from the manufacturer down. The best part is the comparative value it brings to the in-home sale process. NADRA contractors can be educated on the system and how to share the program with their prospects, giving them advantage over contractors who do not. The same applies for dealers and distributors alike.

The future of the decking business is going to be based on statistics of performance and quality of products.

Streamlining the delivery of stats will help propel deck and rail upward in the LBM industry.

With the CPAC program in the development stage of establishing standards, now is the time for manufacturers, dealers and contractors alike to get involved and steer the industry in the right direction.

For more information, contact cpac@nadra.org.

– For over 12 years, David Elenbaum has worked in the LBM industry in the retail, wholesale and contractor fields. He owns Specialty LBM Holdings of S.C., LLC, a company engaged in contracting, retail and liquidation of building materials. Reach him at davidelenbaum@gmail.com.

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FEATURE Story

By Edie Kello Wilson, Fiberon

Composite decking isn’t only for decks O

trends in outdoor remodeling is the creative use of traditional composite decking.

More and more people, professionals and consumers alike, are finding surprising, entirely new applications for composite decking materials. With a little creative flair, composite decking provides an alternative to wood with the added benefits of more durability and lower maintenance requirements.

Whether it is a contractor or a d-iyer, people are discovering that composite decking isn’t limited to decks any longer—it’s a building material.

It’s a highly adaptable building material that’s being used almost anywhere you would traditionally find wood, with the exception of structural uses for which composite materials are not designed. A few of the items we’ve seen built with composite decking materials include beautiful benches, near-impervious planters, picture-perfect pergolas, fabulous fencing and outstanding outdoor kitchen cabinets.

With today’s composites emulating exotic hardwoods, expanding the use of composite materials beyond the deck surface can create a beautiful aesthetic in outdoor living areas that

All photos courtesy Fiberon

NE OF THE HOTTEST

PLANTERS & BENCHES

keeps its good looks. Wood-like, contemporary appearances and a variety of colors in modern composite decking products deliver artistic flexibility in outdoor living areas, relaxation spaces, hardscapes and landscapes.

There are even instances in Europe where it’s used as siding on houses, boardwalks by the sea, privacy fencing and office cubicles!

Custom deck builders are in an ideal position to explore new ways to utilize composite materials. This is especially true as, according to a recent Freedonia Group study, U.S. demand for decking is expected to rise 2.4% annually through 2016 to 3.3 billion lineal ft., worth $5.7 billion.

The versatility of composite decking makes it the perfect medium to satisfy the creative imaginings of artisan deck builders and their customers.

And, custom decks buyers are generally willing to pay a premium price for a deck designed with their style and needs in mind.

Professional deck builders can use composite decking to differentiate themselves by creating beautiful as well as practical outdoor living spaces that have all the benefits of composite decking: durability, lower-maintenance, and stain, mold and termite resistance. When it comes to intricate structures such as pergolas, benches or fencing, where periodic staining is required, composite decking is a welcome relief to time-consuming, backbreaking labor.

D-i-yers can show off their building expertise by creating works of art that far exceed boxy decks. The simple addition of a few benches, some latticework for privacy, or sturdy yet elegant planters can elevate a deck to nearly professional quality. Other popular projects include replacing stair treads, building a sandbox, or creating a raised herbal bed. The value, ease of installation, and low-maintenance requirements for composite decking make it ideal for projects such as these.

Whether your customer is a professional deck builder or an ambitious di-yer, opening their eyes to the possibilities of designing with composite decking will inspire them to create unique outdoor living spaces that will be enjoyed for years to come.

BOARDWALK

BENCHES & STRUCTURE

– Edie Kello Wilson is director of marketing communications for compositedecking manufacturer Fiberon, New London, N.C. She can be reached at (704) 463-2971 or ediek@fiberondecking.com.

Building-Products.com

POOLSIDE FENCING

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MARGIN Builders

By Jacqueline Palazzolo, Weyehaeuser Distribution

Best practices for storing and handling decking

D

ECKING PRODUCTS are made to withstand the rigors of the outdoors. But no matter the material, it’s still important to handle decking planks with care—from the lumberyard to the delivery truck to the jobsite.

Follow these storage and handling strategies to ensure decking planks look their best when it comes time to

install: • Follow guidelines. As with any product, be sure to follow the manufacturer’s specific recommendations for proper storage and handling of your decking materials. Especially when it comes to composites and other non-wood products, requirements may vary from brand to brand.

• Keep it covered. All decking will fade over time with exposure to the sun. Keep planks covered in the yard and on the jobsite to avoid premature fading or, worse, uneven weathering across multiple planks.

For example, when TAMKO ships its planks, the pieces are stacked face down, except for the bottom piece, says Bill Koll, TAMKO’s territory manager in Portland, Or. This way, if the stack loses its protective bonnet, the underside is the side exposed.

• Keep it clean. Decking that’s dry and debris-free will stay looking newer, longer. When storing, keep planks covered and off the ground so that they stay clean and free of moisture.

• Don’t abuse it. Exterior product or no, decking is still a finished product and should be treated as such, Koll notes. In other words, don’t drag the top side along the driveway or run the forklift into it. Like any other building material, mishandling can lead to chips, gouges or damage if impacted hard enough.

• Support long planks. To avoid flexing, particularly when the weather is warm, decking stored on racks needs to be supported. Check with the manufacturer for recommendations.

KEEP DECKING covered during storage, and follow manufacturer recommendations for supports to ensure planks don’t flex.

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• Practice good forklift techniques. Avoid carrying materials against the very back of the lift; a few Building-Products.com

inches off of the back should help prevent damage. Use caution when maneuvering around stacks to avoid striking the material.

• Monitor temperature. Like most building materials, composite decking will expand and contract with temperature fluctuations.

If your company does installed sales, make sure your contractors are keeping an eye on temperature. They should measure the temperature where the planks are being stored and then consult installation instructions for the proper gap to ensure there is room for movement.

• Handle with help. Long boards are heavy and may flex more in warmer temperatures, so carrying planks should be a two-person job.

When planning your inventory, be sure to add on complementary products such as coordinating accessories, matching railings, matching face fasteners, and the manufacturer’s approved hidden fastening system.

This will ensure products are compatible and coordinated and that they can be installed per manufacturer recommendations.

Overall, common sense prevails— decking doesn’t require you to tiptoe, but just be conscious not to abuse it.

And, as with any product, always follow manufacturer instructions and guidelines from storage to handling to installation to ensure optimal performance and intact warranties.

– Jacqueline Palazzolo is dealer sales representative for Weyerhaeuser, based in Eugene, Or. For more decking how-to articles, download Weyerhaeuser’s Decking Sales Kit at www.woodbywy.com/ decktools.

New Deck Safety Video

After seven years of promoting May as Deck Safety Month, the North American Deck & Railing Association has produced a video that it hopes will reach more of those involved with deck building and maintenance.

The video can be found on NADRA’s website at www.nadra.org, on the association’s YouTube channel, and various social media networks. It was produced using images and text about the association’s 10point checklist and its Check Your Deck evaluation forms.

Building-Products.com

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PRODUCT Spotlight Composite Decking

Composite decking benefits from Euro breakthroughs

G

in materials and manufacturing featured at the 2013 European Coatings Show & Congress are finding their way to the latest composite decking materials, according to Dr. Shae Brown, senior chemist at NyloBoard, Covington, Ga., who recently attended the show in Nuremburg, Germany.

Many European product and manufacturing advancements have been borne out of a need to innovate in the midst of stringent environmental regulations, coupled with a desire to achieve greater sustainability. Brown said this setting offers excellent opportunities for U.S. companies to proactively address product development in the context of increasing concerns over similar issues domestically.

Brown recounts top trends and insights from the show, LOBAL ADVANCEMENTS

along with their potential impact for NyloDeck:

1. Shared knowledge is helping manufacturers address production holistically to identify individual opportunities for greater sustainability.

“By learning from other companies’ and industries’ best practices, we’re looking at how a single step in our production line can either be removed or combined, without sacrificing any quality. That one change can add up to significant energy efficiency, which contributes to improved sustainability.”

2. Coatings, which are considered more environmentally friendly, are becoming increasingly prevalent for building materials, without compromising durability.

“We currently use an advanced flexible, yet incredibly durable coating, which provides superior UV protection that enables us to offer a 25-year fade and stain warranty on top of our 25-year limited residential warranty.

However, we continue to work with our coating partners to identify the latest proven technologies that are both environmentally friendly and highly effective against UV exposure.”

3. IR (infrared reflective) coatings have the potential to enhance the properties of decking materials.

“IR reflective coatings can create cooler surface temperatures by efficiently reflecting near-infrared rays of sunlight. This is an exciting advancement not only in the coatings industry, but in the decking industry as well, because this may lead to decks that stay cooler to the touch, even in the heat of the summer.”

U.S.-PRODUCED composite decking products, such as NyloDeck, are becoming more durable, weather resistant, better performing, and more sustainable, thanks to new technology from Europe.

Photo by NyloBoard

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4. Advancements in weather testing equipment are delivering even higher levels of confidence in product performance.

“By using the most sophisticated weathering testing and equipment, both internally and with third-party labs, we are able to accelerate weathering conditions faster and with more quality control than ever before.”

Building-Products.com

thick skin. strong core. any environment.

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Isn’t that what customers are really looking for—a gorgeous deck that can endure the punishment of time? Endeck capped cellular PVC decking is slip-resistant, impervious to stains and scratches, plus it stands up to the daily torture from pets, kids, and guests who drag heavy deck furniture from one end to the other.

Endeck is covered by a Limited Warranty and comes in six colors—three monochromatic and three variegated—with fascia to match or contrast. You’ll need railing, of course—and Enrail® is the perfect complement to Endeck.

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www.endeck.com

COMPETITIVE Intelligence

By Carla Waldemar

Preserve the past, build the future “A

LUMBERYARD IS A STAPLE of a community and cannot disappear.” That’s Lori Stangler talking. So when the outdated, decaying, 128-year-old yard in their hometown of Lonsdale, Mn. (pop. 5,000), finally called it quits—well, what’s a person gonna do? You buy it, right?

Maybe not, if you’ve got all your faculties and have yet to win the lottery. Yet, that’s what Lori and her husband, Randy, aimed to do. Never mind they had not one iota of retail expertise between them. After month following month putting together a business plan and scouring for

TAKING OVER the century-old H.E. Westerman Lumber Co. (top), Generation Home & Building Center needed to appeal to the next generation of home improvement shoppers.

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money, they took over the yard that had stood vacant for close to two years. After all, declares Lori, “Lonsdale is the best place in the world to live, so we wanted to add to what this wonderful small town already has—add a lumberyard to the mix: One more place to stop,” she preaches.

Okay, they’re dreamers, but they’re not dumb. For decades the Stanglers have operated R&L Woodworking Co., three miles away, fabricating cabinets and commercial showcases for retail operations such as luggage, shoe and jewelry stores, and, since the 1990s, concentrating almost exclusively on supplying Olive Garden restaurants nationwide. “We’re their go-to vendors,” Lori explains. “Except for their tables and chairs, if it’s wood, we supply it,” aided by a staff of 31.

R&L is doing well—and by doing well, it’s helped supply the cash flow for doing good (and soon enough, doing well) at the new building center, too. “When that lumberyard went out of business, we could see the town feel the pinch. It took time, but we got our ducks in a row” and signed the papers.

The new building center’s name, Generation Home & Building Center, doubles as a mission statement. Its tagline, says Randy, is “‘to preserve the past and build the future.’

To transcend time.”

But the first hurdle was to transcend the outdated building. “It’s totally different now from what it used to be,” the couple explains. “We’ve increased the size of the store and doubled the retail.” And while the former operation primarily served contractors, the new outfit favors d-i-yers, because, the owners figure, “the town is growing; more people are looking to live here” in the bedroom community half an hour south of the Twin Cities and neighboring Northfield, home of two elite college campuses, Carleton and St. Olaf. “When people would walk into the old place, they’d feel like strangers. We wanted it to be customerfriendly.”

And ultra-friendly to what their research indicated was now a building center’s best customer: women. “They’re doing more and more of the purchasing, so we made it light and bright. The whole layout is very accommodating. We added a home décor section and hired an interior designer, who’s doing really, really well for us. She offers a lot of Building-Products.com

EVEN WITH a spiffy remodel, lumber remained the yard’s main focus, receiving covered storage and an infusion of high-grade inventory.

expertise in everything from paint colors to kitchen layout,” or what Randy ticks off, with a smile on his face, as “technical things only another woman can do.”

She’s but one of the store’s rookie staff of 14, including four part-timers, only one of whom was involved in the previous operation. “We hired for attitude rather than experience,” attests Lori—“something you can’t teach.” And vendors step in to amp up the product knowledge.

Altogether, the Stanglers agree, “We’ve established a good base, with good service, good product knowledge, and quality merchandise.”

Contractors, having formed alternative relationships while the store stood vacant, are starting to trickle back.

Generation last year supplied a couple of new custom homes and remodeling projects, such as roof replacements.

To lure these pros (and the weekend warriors stand to profit, too), the store now boasts a new rental center, saving folks a 20-mile hike on the highway. “In town, there was nothing but a rug shampooer. We’ve added construction equipment, like an air compressor and Bobcat.” Quite an investment, then? Allows Randy, with a long intake of breath, “Ohhhhhhh… yes!”

Above all, however, “lumber is my main focus,” he maintains. “Previously it stood outside, under the snow.

Now, it’s under a roof. No more warped boards. I also opt for the highest-quality lumber, thinking, ‘If you’re investing in a house, it’s worth just a little bit more.”

That’s Lori’s view, too: “Sell the dream, not the product,” she emphasizes. “Inspire customers to make their home a place to be proud of. Introduce them to the possibilities, so they won’t just settle for the cheapest.” And the route to their purse strings? Voila, the Internet.

Research also schooled them that the Web is where women, in particular, do their major shopping, so the Stanglers lassoed their tech-wizard daughter into designing and maintaining their website, which is educational and informative, but not in the ho-hum way that usually follows those boring adjectives. “You’ve got to make it entertaining,” Lori knows—“like those [legendary] Peterman Building-Products.com

Company ads.”

Thus, the zippy site offers everything from tips on tree pruning and info on lumber stamps (“What do they mean?”) to a motivational call to “Caulk the tub! Just do it!” with step-by-step photos, on to an “organizing spree,” providing tips to gain the “minimalist mentality.” Take a look yourself at www.generationhbc.com. Facebook and Twitter, too.

All of those technologies also promote the rental center, prodding “You can do it!” rather than have it done. (Of course, for those jobs just too daunting for a homeowner, Generation hands out the business cards of its trusted contractor customers rather than install, in order to build loyalties and refrain from becoming competition.)

The website boosts another innovative customer lure: the children’s Carpentry Club. The win-win promotion works like this: Generation sponsors a birdfeeder-making contest, requiring purchase of a kit (however, all completed entries receive a refund in the guise of a $10 gift certificate). The motive, Randy spells out, is to get kids involved and interested in the trades, growing future customers, while at the same moment, “letting parents know we’re here.” Plus, as their research indicates, offer that $10 gift certificate and when they’re back in the store with it, they’ll spend twice as much. To promote the contest, Generation has distributed flyers to area schools and posted info via Twitter and Facebook (of course).

Staff—those newbies—get lots of vendor training, including trips to Marvin’s Northern Minnesota manufacturing plant so they can walk the talk. But they’re also schooled in add-on and suggestive-sell techniques to augment the bottom line and alert customers to the one-stopshopping savings of time and stress that Generation offers (especially to those who exclaim, “We didn’t even know you were here!”)

Still, it’s not a walk in the park. As first-timers, the learning curve has had its steep moments. “Being in retail is totally different,” Randy says upfront, “especially bookkeeping. And I’ve adjusted my product mix, location and displays based on what I hear customers telling me, especially in the rental center.”

Competition is a way of life, primarily from boxes stationed along the Interstate commute. There’s also a hardware store in town, but Randy makes it a point of honor not to infringe on its turf. “I don’t want to hurt anybody, or duplicate, so we won’t carry any lawnmowers or small appliances. I send customers his way. I don’t want to drive anyone out of business,” says his neighbor. “Besides, it’s building critical mass [in shoppers’ eyes].

The Stanglers look to break even in two years. In the meantime, cash flow from the couple’s other business helps smooth the bumps. (“We’re our own best customers,” they laugh.) They’re in it for the long haul and they love the journey, actively working to burnish their credo. If Lori’s right and “Lonsdale is the best place in the world to live,” it’s in part because of Generation and its commitment to small-town life and values.

Carla Waldemar cwaldemar@comcast.net May 2013

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17

OLSEN On Sales

By James Olsen

The Sales Q’s

W

HAT’S IT TAKE to be a great salesperson? Am I smart enough? Can I deal with people in a profitable way?

Am I tough enough?

Many factors/traits make up the successful salesperson. There is no classic model. The greats come in all shapes, sizes, colors, intelligence and likeability levels.

Toughness is the underlying factor for success in sales. What do you do when someone kicks you in the shins—or somewhere more sensitive? How long can you hang in there? My friend Jim Dermody says, “Sales is a mental toughness game.” I agree. So many intelligent, charismatic salespeople fail. Just as common is the hard-working salesperson who can’t sell a stick.

It takes an amalgam of attributes and skills to make a great salesperson. Here are three—The Sales Q’s.

tion to I.Q. is that raw intelligence is important, but only so much. How to navigate the emotional world we live in is more important to success and happiness.

Goleman’s E.Q. core competencies: • Self-awareness – How do others perceive me? Am I aware of my motivations?

• Self-regulation – Can I control my reactions/emotions?

• Social skill – How do I relate to others? Can I move them to action?

• Empathy – Do I understand how others feel? At all times?

• Motivation – Can I stay motivated?

Emotional Intelligence and How to Win Friends and Influence People (Carnegie) reach the same conclusion: Being smart is fine, but getting along with people is the most important factor in our success— especially in sales!

I.Q. Intelligenz-Quotient, introduced by German psychologist William Stern (1871-1933), has become the most common test in the U.S. for measuring intelligence. Ninety percent of us have an I.Q. that falls between 70 and 130.

Most smart people overvalue intelligence. Smart people should listen more. Research shows that a certain amount of intelligence is necessary, but after that, the advantage of intelligence is negligible.

Mistakes smart sellers make: Overvalue product or market knowledge. Especially in B2B sales, your competitors and customers know as much as you do. Just because you can talk product and market does not mean you will get the order. Intelligent sellers must use their intelligence to understand their customer as well as their product. Intelligent sales strategy is more important than product knowledge.

Pontificate. Use your smarts to make the customer look smart, not to make yourself look smart. Do not instruct your customer. Ask them questions that lead them. Listen.

Listen. Listen.

Underestimate others’ intelligence. Perilous and costly.

Intelligence directed at creative problem solving, margin creation, or solutions creates lifelong customers.

But what if you’re not that smart? Tell me who your friends are and I’ll tell you who you are. Align yourself with intelligent leaders/sellers you trust.

A.Q. What do we do when they say no? What do we do when we have a bad year? Month? Day? Call? Each of these are a test of our Adversity Quotient, originated by Dr. Paul Stoltz. How hard and how many times can we take a hit and keep on coming?

Adversity Quotient is the defining measurement. Are there certain personality types that are better for sales?

There are master sellers of all personalities. What they have in common is resiliency (A.Q.) and a will to win/succeed/be the best/prove something to themselves and the world.

All master sellers reinvent themselves several times in their career. It feels like turning yourself inside out and shedding skin at the same time. It is necessary, but it hurts. The difference between the journeyman and the master seller is how they react when they: • Lose an order • Lose a contract • Lose a customer The master seller’s lifetime challenge is to work on our personal mix of I.Q./E.Q./A.Q.

1985. E.Q. (Emotional Intelligence Quotient) measures our ability to relate to others. The main argument made in rela-

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

E.Q. Daniel Goleman wrote Emotional Intelligence in

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May 2013

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Rough & Ready Shuts Down after 90 Years

Rough & Ready Lumber closed its 90-year-old mill in Cave Junction, Or., last month. The company’s kiln and shipping operations are expected to close by late May. “We deeply regret having to close the family lumber business that my

DEALER Briefs Orchard Supply Hardware

has opened two stores in the Portland, Or., area—its first locations outside California.

The 41,000-sq. ft. stores with 12,000-sq. ft. garden centers in Beaverton (Mike Wickstrom, store mgr.) and Tigard, Or., opened April 27, bringing the chain to 91 units.

OSH also held a May 4 grand opening in Yorba Linda, Ca. (Richard Penticoff, store mgr.).

Ace Hardware opened a 10,386sq. ft. store in Green Valley, Az., April 5 (Mark Hoffman, owner/store mgr.).

Workbench True Value Hardware, Castro Valley, Ca., will

open store #4 Aug. 1 in Pleasanton, Ca.

Parkrose Ace Hardware , Portland, Or., held a grand re-opening celebration last month to show off its $500,000 remodel.

Astoria Builders Supply’s

former yard in Astoria, Or.—shuttered since September—has been acquired by the neighboring Columbia River Maritime Museum.

Builder’s Choice, Anchorage, Lumbermens Merchandising Corp. , Wayne,

Ak., has joined

Pa. The buying group now has members in all 50 states.

Habitat for Humanity of Utah County opened its second ReStore home improvement outlet April 25 in Spanish Fork, Ut.—the sixth anniversary of its Orem, Ut., store.

Anniversaries: Fisher Hardware & Lumber Co., Santa Monica, Ca., 90th … Monument Lumber Co., Freedom Ca., 60th … Pacific Coast Building Products, Sacramento, Ca., 60th …

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grandparents founded in 1922,” said c.e.o. and co-owner Jennifer Phillippi.

The company had considered a $2 million upgrade, slated to begin in 2014, but couldn’t overcome problems with obtaining a sufficient supply of logs.

“We can’t justify the cost with an inadequate, unpredictable log supply supporting only one shift,” said Phillippi.

The Phillippi and Krauss families will continue managing Perpetua Forest Co., which sells timber from its private forestlands to other mills.

Hayward Buys Bay Area Yard

Hayward Corp., Monterey, Ca., expanded its presence in the Bay Area with its acquisition of T&H Building Supply, Redwood City, Ca. “T&H Building Supply will give Hayward a platform to offer its complete line of building products to new and existing customers in the Bay Area,” said president, c.e.o., and chief sustainability officer William E. Hayward. “It will dovetail with our newest Design Center in Menlo Park.”

Hayward, in business since 1919, has six lumberyards in Monterey, San Luis Obispo, and Santa Barbara counties, as well as six Hayward Design Centers, and a truss manufacturing facility (Hayward Building Systems)

in Santa Maria, Ca. The new acquisition will offer a full-service lumberyard, roof trusses, Hayward Fast Floor, and Zehnder Comfosystem, a whole house air management system distributed exclusively in California by Hayward Corp.

“Hayward will give T & H additional resources to offer more products and even better values to our existing customer base,” said Carol (Hodgson) Ebner, president and c.e.o. of T&H Building Supply, who will stay on.

OSH Gets Delay from Lenders

Orchard Supply Hardware, San Jose, Ca., now has until June 30 to reach a deal with its lenders to deleverage, modify or otherwise address the company’s capital structure.

“Orchard continues to make solid progress in our efforts to strengthen our capital structure and improve our operating performance,” said c.e.o. and president Mark Baker. “Our supplier partners have done a great job helping to keep our inventories at appropriate levels, even while we have been outperforming our sales plan through the start of the spring season.”

In February, OSH had warned that it could default on a $55.2 million loan, if the previous May 1 deadline was not extended. Restructuring lawyers were then hired, to help negotiate a new agreement.

Mendocino Redwood Strikes Logging Deal

Mendocino Redwood Co., Ukiah, Ca., has promised to improve conservation measures on 332 square miles of redwood forest in return for an 80year federal and state permit to disturb the habitat of up to 42 endangered and threatened plants and animals as part of its timber harvesting operations.

Although Mendocino would not be permitted to deliberately kill protected wildlife, it would be allowed to cause limited damage to habitat and population during routine timber operations.

The company believes that the new arrangement will be better than trying to manage the environment with a patchwork of separate permits. “If you think about that large ownership like ours, that’s not the most effective way” to manage a forest, said Michael Jani, president and chief forester of Mendocino Redwood.

May 2013

In return for the blanket permit, the company pledges to expand its existing conservation efforts, including preserving the scattered patches of old-growth forest and improving fishspawning habitat in the adjacent streams and rivers, which have reportedly suffered under traditional logging practices since the 1850s.

Environmentalists like the proposed conservation measures, but fear that the 80-year lifespan of the permit would make it hard to challenge the company if the preservation plans don’t succeed.

“That is just simply too long a time period,” said Andrew Orahoske, conservation director of the Humboldt County-based Environmental Protection Information Center, “particularly since many of these species are on the brink of extinction on the Mendocino coast.”

Building-Products.com

Pleasanton Dealer Aces Expansion

SUPPLIER Briefs Atlas Holdings subsidiary Wood Resources LLC has signed a 25-year lease with Colville Tribal Federal Corp. to reopen its plywood mill in Omak, Wa., which closed in 2009.

Green Diamond Resource Co., Eureka, Ca., had its California timberlands certified to Forest Stewardship Council standards.

The company’s wholesale arm, The California Redwood Co., Arcata, Ca., also received FSC chain-ofcustody certification.

Plum Creek Timber Co., Seattle, Wa., has completed the purchase of roughly 46,000 acres of timberlands in western Georgia and eastern Alabama from the Campbell Group for approximately $72 million.

Johns Manville Corp. , Denver, Co., will open a 125,000-sq. ft. DC in Grand Prairie, Tx. Aspen Planers Ltd. , Merritt, B.C., has acquired Ardew Wood Products’ Merritt mill site, idled since Jan. 11.

Hampton Affiliates, Portland, Or., purchased milling equipment from Gorman Bros. Lumber, Westbank, B.C., to replace machinery lost at Babine Forest Products, Burns Lake, B.C., in a fire 16 months ago.

The purchased equipment was culled from the idled Canoe Forest Products mill in Canoe, B.C., which Gorman acquired in 2012.

PPG Industries completed its $1.05-billion acquisition of the North American architectural coatings business of Akzo Nobel, including Glidden, Flood and Liquid Nails brands.

Eastman Chemical, Kingsport, Tn., earned green product certification for its Perennial Wood decking from Home Innovation Research Labs (formerly NAHB Research Center).

Inteplast, Livingston, N.J., added new variegated colors (burnished maple and harbor gray) to its TUFboard Porch line.

Osmose completed its acquisition of the wood preservatives business of New Zealand’s Mattersmiths Holdings Ltd. and Mattersmiths Technologies Ltd. TYR Wood Products, Portland, Or. (www.tyrwood. com); Tropical Roofing Products, Los Angeles, Ca. (www.tropicalroofingproducts.com), and AERT, Springdale, Ar. (moistureshield.com), have redesigned their websites.

– Correction –

Our 2013 Top Treaters list (April, p. 11-16) inadvertently omitted Permapost Products Co. , Hillsboro, Or. (www.permapost.com), which treats with pentachlorophenol, copper naphthenate, Hi-Clear II IPBC/permethrin, and fire retardant.

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May 2013

Richert Lumber, Pleasanton, Ca., recently held a grand reopening to show off its newly enlarged—and rebranded—store.

After being affiliated with True Value Hardware for 28 years, the store has switched to Ace Hardware. When Matt Richert took over the business last year from his father, Tom, they decided to expand, particularly in categories Ace specializes in, such as housewares and home improvement items.

They also tripled the sales floor from 5,000 to 15,000 sq. ft.

The city will not be without a True Value for long, however; Workbench True Value Hardware is renovating a local storefront for a mid-summer opening.

Higgins Liquidation Continues

J.E. Higgins Lumber’s former DC/office in Livermore, Ca., was sold by bankruptcy court-appointed receiver Douglas Wilson Cos., San Diego, Ca., for $5.1 million to an auto parts distributor.

The 71,680-sq. ft. facility was the second large Higgins property sold by the receiver.

Wilson has also recently engaged Woodland Hillsbased Great American Group, Woodland Hills, Ca., to complete the liquidation of the 125-year-old lumber company’s other assets.

Stores Renamed to Honor History

Third-generation hardware store operators Richard and Eric Hassett have rebranded their four Bay Area stores as Hassett Ace Hardware.

Ocean Shore Hardware, Half Moon Bay, Ca.; Palo Alto Ace Hardware, Palo Alto, Ca.; Willow Glen Ace, Willow Glen, Ca., and Wisnom’s Ace, San Mateo, Ca., are all making the change, adopting a new logo, signage and overall look.

“With our father, Larry Hassett, retiring from a long and celebrated career, and with our family of stores continuing to grow, we have decided to bring all of the stores back to the original family name,” said the brothers, whose grandfather opened his first Ace Hardware with his brother in 1956.

Thief Hits Montana Sawmill

A 45-year-old man has been charged with stealing batteries and electrical wiring from logging equipment and trucks at F.H. Stoltze’s mill in Columbia Falls, Mt. Tim Bauer pleaded not guilty to the charges, but faces up to 10 years and a $50,000 fine for each of the two charges. According to court documents, a Stoltze employee contacted the Flathead County Sheriff’s Office on Aug. 27, 2012, after a log loader wouldn’t start and workers discovered the missing electrical parts. The logging equipment hadn’t been used for about two weeks.

In all, six batteries and various wiring harnesses and battery cables valued at $3,138 were missing from a Mack truck, a Dart log stacker, and a Kenworth truck. Stoltze estimated labor costs to repair the equipment at $3,000.

The sheriff’s deputy who responded to the scene located some of the missing items in a ditch not far away, along with an alternator and pruning shears with 2 ft. handles wrapped in duct tape.

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Simpson’s Shelton Mill Suffers Fire

Simpson Lumber sustained an April 20 fire at the power house of its Shelton, Wa., sawmill.

Firefighters arrived to discover flames in the wall extending to the second story of the building.

Investigators suspect the cause to be a hot ember that lodged itself under metal sheeting outside the power house.

HD Supply Files for IPO

HD Supply, Atlanta, Ga., has filed for a $1 billion initial public offering.

The company, which operates more than 600 locations in the U.S. and Canada, was sold six years ago by Home Depot for $8.5 billion to a group of private-equity firms that includes Carlyle Group, Bain Capital, and Clayton, Dubilier & Rice.

OSH’s Suit vs. Depot Dismissed

Orchard Supply Hardware, San Jose, Ca., has lost its bid to pursue an antitrust claim against Home Depot and

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two power tool manufacturers.

OSH claimed that Home Depot demanded exclusive supply contracts with Makita USA and Milwaukee Electric Tool Corp., both of which then stopped supplying OSH. A federal court rules that those allegations alone were not enough to state a viable antitrust action.

The decision rejected each of OSH’s theories. First, the court ruled that it would not be inherently illegal for a large dealer like Home Depot to seek and obtain an exclusive distribution agreement with a supplier. It also ruled that two suppliers simultaneously reaching exclusive arrangements with the same large dealer does not constitute an unlawful agreement under the Sherman Antitrust Act. The court ruled that unless two suppliers agree with each other to take parallel action, no horizontal conspiracy exists.

The court also rejected OSH’s claim that competition was harmed in a relevant geographic market, under the “rule of reason” for weighing antitrust claims.

On similar grounds, the court also dismissed claims under California’s state antitrust statute and other law.

Ace Expands Site for Store Sellers

Ace Hardware, Oak Brook, Il., has expanded HardwareStoresforSale.com to sell equipment, in addition to the stores themselves.

Newly added is a Marketplace section that offers fixtures, signage and equipment. Items can be listed for 60 days for a listing fee of $9.95.

The site launched in February to help owners list and view stores for sale.

Utah Dealer on Lookout for Bandit

The owners of Moroni Feed Hardware, Moroni, Ut., are hoping that a new surveillance system will help catch thieves who have robbed the store four times in the past few months.

“They are spending a short amount of time in there, just a couple of minutes, grabbing a few items, and back out again,” said Justin Aagard, deputy sheriff of Sanpete County.

In each of the burglaries, the thieves broke a plate glass window to gain entry. Video from break-ins on April 11 and April 24 shows at least three men, some wearing masks. All have on rubber gloves on, apparently to conceal any fingerprints they could leave behind.

“They are running in, grabbing some strange items— flashlights, BB guns, things like that,” said store manager Neil Johnson.

“One time is one thing, but to come back here four different times? We’ve got to have some help to get it stopped. Somebody out there has got to recognize them,” said Aagard.

The store is offering a $500 reward for information leading to an arrest. “Just help us out and find them,” said Johnson.

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May 2013

Home-improvement products containing asbestos must be clearly labeled to be sold in Washington State under a new bill that goes into effect next year.

The bill, prompted by a request from the Spokane Regional Clean Air Agency, covers shingles, wallboard and other construction products that legislators admit aren’t typically a problem when they are installed, but may release asbestos during demolition.

Building-Products.com

MOVERS & Shakers John Cencak has been promoted to president of Jones Wholesale Lumber, Lynwood, Ca. Rick Jones is now v.p. Rod Jones continues as c.e.o.

Casey O’Neill, ex-Zeeland Lumber & Supply, has joined ProBuild, Denver, Co., as senior commodity buyer for SPF. Jonathan Massopust is a new assistant buyer.

Doug Nedved, ex-USP Structural Connectors, is now with Capital Lumber, Denver, Co. Steve Willis, ex-Parr Lumber, has joined the millwork department at Dixieline Lumber, San Diego, Ca., in inside sales.

Adrian M. Blocker has joined Weyerhaeuser Co., Federal Way, Wa., as v.p. of lumber, succeeding Robert Taylor, who is retiring this month.

David Hindmarsh, ex-Capital Lumber, has joined Nu Forest Products, Healdsburg, Ca. Carl Christoferson, ex-Windsor Mill, is new to sales at Disdero Lumber, Portland, Or. Chris Olsson, ex-Talon Forest Group, has joined Tumac Lumber Co., Portland, Or. Callee Setzer has joined the sales team at Setzer Forest Products, Sacramento, Ca. Her great-grandfather, Curt Setzer, founded the company.

Chris Bailey, ex-Collins Cos., is now in sales at Spokane Forest Products, Boise, Id. George Mealer, ex-Honduras Mahogany International, has joined TYR Wood Products, Portland, Or., repping tropical hardwoods.

Louise Zirbel is new to sales at J&H Forest Products, Boise, Id., focusing on low-grade dimension.

The answers for a long lasting, more beautiful deck.

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May 2013

Tracy O’Campo, ex-Golden State Lumber, is new to outside sales at Central Valley Builders Supply, Woodland, Ca. Rick Green has retired after 22 years with Potlatch Corp., Spokane, Wa. Mike Flynn will now handle plywood sales.

Robert Turbes, ex-Prairie Pella Wyoming, is new to millwork & decking sales at Win-Dor Industries, Billings, Mt. Dave Vail, ex-Fowler & Peth, is new to sales at IDI Insulation Distributors, Denver, Co. Casey Garland, ex-Bridgewell Resources, has joined Priaulx Forest Products, Portland, Or. Robert F. Rugg, v.p.-strategic accounts, James Hardie Building Products, Mission Viejo, Ca., has been appointed to the board of directors at Grabber Construction Products, Alpine, Ut. Todd Spivey has joined Jeld-Wen, as regional builder development mgr. for Colorado, New Mexico, Texas, Oklahoma, and Louisiana.

Greg Clarke has been named senior v.p. and chief financial officer at Johns Manville, Denver, Co. Eric Watson, ex-Roofing Supply Group, is now territory mgr. for Shake & Shingle Supply, Fort Collins, Co. Mark Warriner, ex-Pella, has joined Dimensional Millwork of Arizona, Mesa, Az., as Los Angeles territory mgr. of window & door sales, based in Oxnard, Ca. Jeannine Laitres, Canyon Creek Cabinet Co., Monroe, Wa., has been promoted to national training mgr.

Dennis Hardman, president of APA-The Engineered Wood Association, Tacoma, Wa., since 2005, is retiring at the end of the year.

Huck DeVenzio, mgr.-marketing communications, Lonza/Arch Wood Protection, Smyrna, Ga., retired April 12 after 40 years promoting Wolmanized wood products.

David Tetzlaf, ex-HD Supply, has been named marketing mgr. for Solatube, Carlsbad, Ca. Bob Powell has opened a sales office in Alice, Tx., for Matheus Lumber, Woodinville, Wa. John Hartmann has been appointed president and c.e.o. of True Value Co., Chicago, Il., to succeed Lyle Heidemann, who is retiring at the end of the month.

Todd Spivey has joined Jeld-Wen, as regional builder development mgr. for Co., N.M., Tx., Ok., and La. Brian Leung has joined Western Forest Products, Vancouver, B.C., as a specialty cedar remanufacturing coordinator.

Justin Ellis, Builders Do it Center, Roswell, N.M., was named a Young Retailer of the Year by the North American Retail Hardware Association.

John K. Smith, president and c.e.o., Pennsylvania Lumbermens Mutual Insurance Co., Philadelphia, Pa., was inducted as an honorary chief in the Union Fire Co.—the volunteer fire company formed by Benjamin Franklin and colleagues in 1736, which would serve as a model for other brigades throughout the nation.

Wendell Hicks is celebrating 50 years with Steamboat Lumber, Steamboat Springs, Co. Dan D. Lyons now heads the garden center at MungusFungus Forest Products, Climax, Nv., report co-owners Hugh Mungus and Freddy Fungus.

Building-Products.com

Spike in I-Joists Helps Wood Production Climb

The small but positive uptick in the economy and residential construction closed 2012 on an optimistic note for the first time since the recession began, and that slow-but-steady growth is expected to continue through 2013.

With indicators pointing to rising housing starts through the year and into 2014, APA-The Engineered Wood Association predicts a second straight year of growth in all four of the wood product sectors it represents, led by growth in I-joists.

“Last year saw across-the-board increases in structural panels, I-joists, glulam, and LVL. In 2013, not only will that trend continue, but at a slightly faster pace in most cases,” said Craig Adair, APA’s market research director. “Residential construction will drive much of that growth, with pent-up demand for housing, moderately rising home prices, and growing consumer confidence having the most influence.”

Housing is beginning to lead the economy and is expected to provide an economic catalyst for years to come. The residential market is gain-

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ing strength from a very low bottom, and interest rates are still low. While housing is not immune from potential tax increases and government spending cuts, momentum is favorable for a healthy increase in starts.

APA is forecasting single-family housing starts to reach 665,000, a 24% gain, as homeowners take a positive view toward purchasing a home, the job market improves, and home prices firm up in many cities.

Multifamily starts are expected to improve 35% to 330,000 units.

The remodeling market is also showing small signs of life, although the outlook is brighter into the second half of 2013 and in years following.

The NAHB’s Remodeling Market Index is above 50 for the first time since 2005, meaning that more remodelers expect business to be higher or better in the future. The Harvard Joint Center for Housing Studies predicts repair and remodeling expenditures to reach 2007 levels, around $145 billion, a dramatic improvement over 2008-2012 levels.

Non-residential’s mild 3% uptick in starts in 2012 is expected to be

May 2013

repeated in 2013. School construction and healthcare will lead in total square footage, although the education sector will experience a small decline. Collectively, non-residential starts are expected to recover to more than 1 billion sq. ft. within the next four years.

The industrial market will see only modest growth in 2013 due to a number of factors, from government budget cuts that impact manufacturing to the millwork industry’s dependence on remodeling, as well as non-residential construction. Overall, manufacturing is expected to grow about 2% this year, down from 4% in 2012.

Improvement to 5% growth is anticipated in 2014.

Finally, indicators point to U.S. structural panel manufacturers exporting about the same quantity of material in 2013 as in 2012.

Wood products demand is expected to accelerate as rapid housing growth is followed by renewed repair and remodeling energy, an upturn in the nonresidential construction cycle, and industrial demand that increases with consumer spending and higher

Building-Products.com

GDP growth.

Domestic (U.S. and Canada) production of OSB and plywood is expected to reach 30.5 billion sq. ft. in 2013, a 10% rise over 2012.

Glulam is predicted to see a 10% increase over 2012, reaching 248 million bd. ft. The growth is due entirely to housing, with little support from non-residential.

Growth in the I-joist market is forecast around 17% in 2013 to 651 million linear ft., slightly slower than 2012’s 22% increase. Most of the gains will come from housing, with raised-floor construction continuing to provide a notable boost.

Increased housing starts also will drive demand for LVL, the majority of which is used for beams, headers and rimboard. LVL production should reach 54.9 million cubic ft. in 2013, a 10% growth over 2012.

For more details, APA’s latest Yearbook, containing historical data and a look at 2013, is $250 for nonmembers from www.apawood.org.

CPA Pleads Guilty to Fraud

A certified public accountant in Kalispell, Mt., has pleaded guilty in a wire fraud case involving RBM Lumber Co., Missoula, Mt. According to federal court records, 66-year-old Jesse Wall approached RBM in 2008 and offered to invest $350,000 of the company’s money in ways that would produce a higher rate of return than a bank. Instead, Wall used the money for his own struggling business, Nevada-based Milestone Innovations.

In February 2011, when RBM asked Wall to return the money, it

was told that the money was tied up in a real estate investment. In June, he did return $190,000 to RBM and hoped to sell his house and repay the rest.

When FBI agents interviewed Wall in December 2011, he admitted that “perhaps he did say something misleading to them” to induce RBM to invest with him.

He was indicted a year later and now faces up to 20 years in prison, a $250,000 fine, and three years of supervised release. Sentencing is set for July 12.

APP Watch

Application: TIMBERTECH DECK GUIDE Produced by: TimberTech Price: Free Platforms: iPad A new app allows dealers, contractors and homeowners to design photorealistic decks using various TimberTech styles and color combinations.

Designed as a decking sales tool, the app permits customers’ selections to be saved and tagged with keywords, allowing projects to be easily retrieved, emailed and shared via social media.

A color visualizer feature allows users to alter photo-realistic images of three different decking lines (Traditions, Earthwood Evolutions, XLM) and four railing options (Evolutions Rail Contemporary and Builder styles, RadianceRail, RadianceRail Express).

Download from iTunes App Store

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Remodeling Spending Picks Up Pace Spending on remodeling projects will continue to increase, according to a report from Harvard University’s Joint Center for Housing Studies.

“House prices are increasing in most markets across the country,” said managing director Eric S. Belsky.

“This has increased the home equity

levels for most homeowners, encouraging them to reinvest in their homes.”

According to the U.S. Census Bureau, remodeling activity increased almost 10% last year. Together with Harvard’s projections, this is good news for the housing industry—if enough skilled labor can be found to

complete the projects.

“The strong growth that we’ve seen recently is putting pressure on the current capacity of the home improvement industry,” said director Kermit Baker. “Contractors and subcontractors are having more difficulty finding skilled labor, and building materials costs are unusually volatile for this stage of a recovery.”

Distributor Teams with Software Provider

Associated Building Material Distributors of America, El Dorado Hills, Ca., has enlisted Sales-i to provide on-demand sales and customer intelligence services.

The firms have created a cloudbased customer-intelligence program to allow better support of the sales management and CRM functions.

Near-term, Sales-i will provide expanded SaaS options, host comparative webinars, and outline new lowercost ERP platforms, helping ABM customers “to improve their overall customer service platform and to strategically plan to capitalize on gained customer intelligence,” said Garry Tabor, ABM executive v.p.

NATIONWIDE STOCKING DISTRIBUTORS SUPERIOR TO PAINT OR COATINGS STRONGEST FRTW WARRANTY COMPETITIVE PRICING TSO AND KDAT

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IN Memoriam George Weyerhaeuser Jr., 59, retired executive at Weyerhaeuser, Federal Way, Wa., died of a heart attack April 14 in Tacoma, Wa. He received a bachelor’s degree in philosophy and mathematics from Yale and a master’s of science degree from MIT’s Sloan School of Management.

In his 30-year career with the company, he served in several executive positions. He retired in 1998 following five years as president and c.e.o. of Weyerhaeuser Canada.

Clark College, he spent a year in the Navy. Afterwards, he helped his father launch Marine Lumber in 1946. He retired in 1993.

Derl Stovall, 57, part owner and chief financial officer of Bright Wood Corp., Madras, Or., died March 25 in Madras.

John Edwin Wilkinson, 70, retired manager of the wood treating industry’s Penta Task Force, died of cancer April 8 while visiting Boulder, Co.

As an analytical chemist for Vulcan Materials, Birmingham, Al., he became a champion of the chemical and wood preserving industry.

While serving as the Washington, D.C.-based government affairs director for Vulcan, he worked to ensure that government regulation of the wood preservation industry was based on sound science. Most recently, he directed the task force in its successful effort to secure re-registration of the wood preservative label for pentachlorophenol with the EPA.

Dan Naughton, 70, retired general manager of Redwood Empire, San Jose, Ca., died Jan. 31 in Grass Valley, Ca. Mr. Naughton graduated from the University of San Francisco and served in the U.S. Army.

During his 40-year career, he also worked at Windsor Mill. He then worked at Redwood Empire, retiring in 1999 after 19 years.

Dale Grover O’Harra, 95, owner of Jacksonville Lumber Co., Jacksonville, Or., died April 17 in Medford, Or. He served in the Army Air Corps during World War II, flying missions out of Italy.

In 1954, while working for Bellevue Lumber Co., Ashland, Or., he purchased Jacksonville Lumber. He remained active in daily operations for 59 years.

Albert Charles “Al” Smith, 86, retired general manager western manufacturing for Champion International, died March 31 in Roseburg, Or. He joined U.S. Plywood, Roseburg, Or., in 1956, in its LBM management training program and stayed on after the company merged with Champion Papers in 1967 and was renamed Champion International in 1972. He retired in 1985.

Irene Eloise Mullen, 96, who with her late first husband, Wally Warm, started Cash & Carry Lumber (now E&E Lumber), Sedro-Wooley, Wa., died April 21 in Sedro-Woolley.

Stan McGrath, 83, former owner and president of Marine Lumber, Tualatin, Or., died March 21 in Tualatin.

After graduating from Lewis and Building-Products.com

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NAWLA 2013 NAWLA Traders Market 2013

Traders Market again rolling into Las Vegas

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MARKET will once again be returning to Las Vegas, Nv., for the second show in that city. The 2013 Traders Market will be held Oct. 23-25 at the Mirage Resort & Casino.

Since 1996, Traders Market has held a unique position among lumber and building material trade shows since it is the only one that is focused almost exclusively on the lumber supply chain. Unlike other shows, the exhibitors are almost always manufacturers of lumber and lumber-related products, not machinery or other equipment providers.

This focus on supply chain partners has fostered an unrivaled atmosphere for networking. In today’s global marketplace, Traders Market provides a chance to meet current and prospective clients face to face. In an industry where million dollar deals are still made with a handshake, that personal networking is invaluable.

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During a time when many trade shows have struggled, Traders Market continues to grow. Overall attendance in 2012 was 1,325, an increase of 16% since the 2009 show. The attendee profile continues to be almost evenly split between wholesalers and manufacturers.

May 2013

“Traders Market has solidified its place as the one trade show you can’t afford to miss,” said Gary Vitale, NAWLA c.e.o. and president. “As the lumber industry continues its recovery, companies that participate in Traders Market have an advantage on positioning themselves for success.”

The 2013 show will follow the successful and popular format from the last couple of years. The floor show will be open on Thursday and Friday, allowing attendees to enjoy Las Vegas over the weekend or return home.

Other recent additions, such as the Product Showcase, will also return.

“Traders Market remains the best value in the lumber industry,” said Vitale. “By attending a single trade show, a company has the chance to meet with many of its current clients and network with dozens of potential new customers.”

The Traders Market website— www.nawlatradersmarket.com—has complete information on the schedule, fees, floor layout, hotel reservations, and sponsorships. Registration has already opened and is exclusively online.

Building-Products.com

NAWLA 2013

By Ken Schultz, Blue Book Information Services

Capitalize on the industry turnaround with a well-defined credit policy

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appears to have weathered the Great Recession. Lumber demand, prices and output are all increasing. As the pendulum finally swings toward industry growth, lumber sellers should remain disciplined in the area of credit management, or risk hampering the opportunity to grow profits with uncollected receivables. Companies that remain vigilant in their credit policies and procedures will be well positioned to capitalize on the industry’s recovery.

When extending credit to a customer there are two key considerations a credit professional must consider: the buyer’s financial position and trading practices. The buyer’s financial figures will provide credit extenders with an indication of the company’s overall financial strength, through a review of its overall debt structure, working capital, and equity position. Trading methods will reveal how the company conducts itself within the business community.

The due diligence put forth to investigate a prospective customer before making a credit decision can go a long way in determining how much credit to extend while also protecting your bottom line. A customer should not be granted credit without a reasonable degree of certainty regarding its ability and intention to honor the terms of the sale.

Unfortunately, no standard formula exists to determine the creditworthiness of a company. Although some have tried developing software for “scoring” companies, according to HE LUMBER INDUSTRY

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Phillip Lattanzio, president and chief operating officer of the Rolling Meadows, Il.-based National Association of Credit Managers, it always comes back to the need for a “human element” in making the final decision.

The process begins by determining a company’s creditworthiness or ability to repay debts. While some companies have a formal policy with strictly adhered to rules, many maintain an informal process. Even with more informal policies, it helps to at least have some procedures in place to deal with customer evaluations, setting credit limits, terms, and conditions, and late payments.

For example, say a lumber company is approached by a firm it has done business with for a number of years, asking for a substantial increase in its credit limit. If the lumber company has no procedures and/or checkpoints in place, the absence of these determining factors may result in an approval delay, pushing the customer

May 2013

to go elsewhere for its purchase. This results in not only a lost sale for the lumber company, but a lost opportunity for future business.

Investigating a potential customer’s creditworthiness can be both an art and a science. Credit professionals agree that securing financial figures is optimal to determining if the company has documented profits and steady growth. Liquidity and the ability to generate cash are key indicators in its ability to pay.

Furthermore, it is a good idea to check not only the most recent yearend financial breakdown but also prior statements to identify a financial trend. Additionally, comparing the position of a company during its “peak” or interim periods will demonstrate the current year’s performance versus the company’s historical strengths or weaknesses.

Equally important in evaluating a customer’s ability to pay are the trade responses of suppliers who have a history of dealing with the company.

Lattanzio says credit professionals should gather as much information as they can from as many sources as possible. “A credit professional is like an investigator. It is not wise to make decisions based on one piece of information, whether it be a credit report, financial statement, or credit group report,” he says.

When dealing with a new customer, as opposed to one the company has done business with in the past, many credit professionals agree that a trial period—limiting and closely monitoring credit limits and payments—is a Building-Products.com

good idea. A longtime Blue Book Member explains, “Trial periods are used whenever we determine that a new customer’s integrity or credit worth is questionable. Depending on the seriousness, we may decide to reduce payment terms to one week or even go on a load-by-load basis (meaning payment for an outstanding load must be received before we ship the next load). There is no hard and fast rule as to how long the trial period lasts, but certainly the customer’s cooperation and timely payments will speed things up. Once the customer demonstrates an ability and willingness to make payments promptly, he/she will be given the same terms as our more well-established customers.”

In the case of a new company, there are other considerations to take into account. According to one credit professional interviewed, “You may be faced with a new company made up of principals from a previous organization you were doing business with. Or the company you may be considering does not have a credit rating yet. If our salesperson had a previous relationship with this firm, we will extend credit cautiously and then build it up gradually. It happens all the time.”

In many cases, a firm’s strategic, financial, and operational plans directly impact its credit policy. According to Lattanzio, credit policies should mirror the company’s philosophy. “If the powers-that-be want to ship anything and worry about collecting money later, that’s one philosophy,” he says. But the credit policy should not only start at the top—in the executive suite—but be compatible with the company’s long-term goals and philosophy.

As lumber demand grows, sellers will see an uptick in new credit inquiries and requests for limit increases. To avoid the sting of uncollected receivables, wise credit professionals will not only have an established credit policy in place, but maintain highly disciplined credit approval procedures.

– Ken Schultz is vice president of rating services at Blue Book Services, the leading credit and marketing information agency for the lumber industry. He has over 20 years experience with Blue Book Services and is a certified credit executive. Contact him at (630) 668-3500 or kschultz@bluebookservices.com.

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NAWLA 2013

By John Whyte, Brown & Joseph

Managing receivables in today’s economy

A

LL BUSINESSES LOSE clients during a receding (or recovering) business climate. The revenues from these clients must be replaced in order to maintain profits and growth. Yet, there is risk in working with new clients. Of 10 new clients, six will pay on time, two will pay in 60 days, and two will become a receivable problem. The risk must be managed carefully to assure business growth that is profitable.

The profiles of those new clients that can become a receivable problem include:

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• New business – 20% of all new businesses fail within 18 months of startup.

• Existing clients can experience a contraction in their own business. Will they contract further, or rebound and prosper?

Current statistics are frightening. During the past three years, there were over 4 million bankruptcies filed in the U.S. Over 150,000 were commercial filings. Assuming the 2013 business climate improves only slightly, the number of bankruptcies will be enormous and can have a definite

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2013 20 13

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impact on your bottom line.

At the same time, a post-recession (or depression) business environment offers a unique opportunity. By offering timely services to those businesses undergoing change, you may gain customer loyalty forever.

Survival Comes with Cash Flow

Most commercial businesses can delay payment of their accounts payable, thereby assisting in the financing of their receivables. Other services of financing for your receivables are available, but, there is an associated cost. Timely pursuit of your receivables reduces both your costs of financing and the likelihood of incurring bad debt.

In today’s economy and highly regulated business environment, cash is king. And, accounts receivable is the next best thing to cash. Minimal credit losses are crucial for survival regardless of the industry.

Minimizing Your Credit Losses

A review of how you extend credit is essential to minimize losses. Credit applications are a valuable tool to

reduce exposure. A credit application offers protection against significant losses. Credit applications should include, at a minimum, the customer’s legal composition, address, the officers’ names and references from other firms (including other temporary firms) with which your customer has been doing business. Check with at least three companies to determine how much credit has been extended and their payment history. Additionally, a good credit application will outline credit terms, collection procedures, and liabilities in the event the invoice is not paid timely. Often, a credit application includes a personal guarantee clause, or a separate personal guarantee document.

This can offer additional protection as the financial obligation is guaranteed to be paid by an individual if the business fails to pay.

In addition to a credit application, a credit report should be run, especially when your exposure justifies this additional cost. Any judgments or tax liens should raise a red flag.

Timely Collection of Receivables

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Whether the economy is in recession, recovery or growing, solid billing and collection procedures are a must in order to maximize cash flow. Internal collection procedures should be timely and offer a systematic method of Building-Products.com

follow-up at regular intervals (10, 30, 45 days past due). Reminders, statements, past due notices, and telephone calls are several critical methods available.

The contacts should be made to the person that can authorize the payment. Contacts should be kept short and professional. Appeal to the pride and honesty of the customer. Be personable and firm. Problems or disputes should surface if there is a cash flow issue. Handle everything accurately and quickly, and put all arrangements, payment schedules, and interest charges in writing, including late fees, if applicable.

Follow up on every account to the point where communication, or lack thereof, indicates that an alternative action should be taken. You must utilize third-party professionals to enforce payment once communications break down. Time is absolutely critical. To delay could affect the ultimate collectability of that account.

Aggressively Using Professionals

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Major benefits of utilizing an outside collection service include: • Procedures, contacts and followup from a third party commands attention from the debtor.

• Most collection services offer a contingency fee program. That is, fees are only earned by the collection service if it successfully recovers money.

Motivated to collect the account, a collection service offers a strong psychological advantage.

• The use of the collection service allows your credit department more time to grant credit, review accounts, and follow-up on current invoices rather than be involved in the repeated pursuit of past-due delinquent customers.

When selecting an outside collection firm, use the same criteria as you would in selecting any business service: firm reputation, compatibility and performance.

The company you choose should be fully licensed and bonded for your protection. A quality, professional collection service is a very cost-effective tool, whereby a client has at their

disposal, an entire professional staff providing one of the most needed, important business services.

Getting Motivated

There is only so much time in a day. Time usually does not permit that all items on the to-do list get done each day. A good collection service will, in a timely manner, consult with a client at no cost and provide the motivation for change. It is essentially time well spent.

The management of accounts receivable is a constant ongoing business function. A professional and aggressive approach coupled with solid, systematic procedures will allow you to not merely survive in a recovering economy, but prosper.

Reduce tomorrow’s losses—improve your procedures and processes today.

– A sales executive in the accounts receivable management industry for more than 30 years, John Whyte is v.p. of business development for credit and collections firm Brown & Joseph. Reach him at jwhyte@brownandjoseph.com or (888) 829-9997, ext. 207.

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NAWLA 2013

By Dave Kahle

Closing the sale

A realistic perspective

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HERE IS NOT A salesperson in existence who hasn’t repeatedly heard of the need to “close the sale.” Every new sales manager must view the process of encouraging his/her sales force to close the sale as an initiation into the profession.

If you’re going to be a sales manager, you, therefore, must improve

everyone’s ability to close. Doesn’t it come with the job?

The sales training literature is awash with advice. Some of it is tedious and trivial: “If he says this, you say that.” Other advice is grandiose: “35 new sure-fire closing techniques.” Still other is harmful: “Overcome that objection,” as if sell-

ing in the B2B world was a contest between you and the customer, with one of you winning (overcoming) and the other losing (being overcome).

That’s an attitude that won’t get you far.

All of this advice shares one common element. It’s incredibly overdone. There is no one aspect of sales (at least in the B2B world) that undeservedly receives more disproportionate time and talk than the subject of closing the sale.

Not that there is no need to close.

Every project must come to a conclusion, every offer be resolved one way or the other. It’s just that, in my experience, closing has never been the

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result of verbal gymnastics on my part. It’s not my clever refrains, my slick tactics, my memorized “objection over-comers” nor my manipulative perseverance that has brought me business. Instead, it was the suitability of my offer to the needs/desires/values of the customer.

On those occasions where my offer precisely met the customer’s combination of desires, values and preferences, I got the business. Where my offer was off, and some competitor’s offer was a closer match, I didn't get the business.

I don’t mean to imply that every sales opportunity is that black and white. Clearly there is a lot of grey area in the process. But, from my perspective, the grey area tipping point was most often the personal factors of rapport, relationship and trust, and almost never the tactical manipulations of the salespeople involved.

I learned early on in my sales career that it was far more important and profitable to open the sale precisely than it was to close strongly. If I spend a lot of time, energy and mental acuity on learning the precise dimensions of the customer’s needs, and if I crafted an offer that matched those precisely, there was very little need for concern about closing.

I realize that I am tramping all over the hallowed ground of a vast number of sales managers, sales trainers, and sales consultants. I am, however, reflecting thoughtfully on my 30-plus years of selling all kinds of things, and my 18-plus years of training and developing salespeople. I believe that most thoughtful salespeople will line up on my side of the issue.

All that said, there some principles and simple rules that can give us direction on this issue. Let’s start with our language. Instead of “closing the sale,” let’s first call it “resolving the next step.” Not only should the project in general have a resolution, but also every sales interaction (a conversation with a prospect or customer), should have as its goal the identification of a next step in the sales process and the natural and logical commitment to that step.

So, for example, when you are seeing a prospect for the first time, the ideal next step is to get a commitment from the prospect for a second meeting. Without that, you have no hope Building-Products.com

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of getting the ultimate purchase order.

To walk away from the sales call without resolving “what happens next” is to leave the sales call incomplete and relatively worthless.

The ideal next step for a meeting when you are collecting information about the customer’s needs is the customer’s commitment to view your presentation of your solution.

The ideal next step following a sales call in which you present your solution is for the customer to identify

the next step in his/her buying process, and commit to that.

On and on we go. Every sales call should end in some resolution of the next step in the process, even if the resolution is “no next step with you.”

Notice that in each of these occasions, the definition of the “next step” is a commitment on the part of the prospect or customer to do something that moves the project forward.

Acquiring that commitment, in each and every sales interaction, is one of

the habits of the most successful salespeople. It’s what I term “resolving the next step.”

If the goal is to successfully arrive at the ultimate resolution, the perceptive salesperson understands that the means to that is a step-by-step process. Every sales call is an investment of time and energy on the part of the customer. And every investment of time and energy should result in some kind of an action step. Unless you are so entertaining that the customer looks at his/her time invested with you as a substitute for the movies this weekend, he/she probably doesn’t want to squander his time with you. He probably wants to accomplish something as a result of his investment of time with you. The something will take the shape of a “next step” in his process.

So, the thoughtful and effective salesperson recognizes that, and merely asks the customer to identify the next step. When he does, it’s nailed down with a deadline. The project moves forward, the sales process continues, and you know exactly where you and the customer stand.

All of that brings us to one the most powerful “resolution” strategies.

I call it “alternate next steps.” An alternate next step is an offer made to the customer following the stated or implied rejection of a previous offer.

It always involves a smaller risk on the part of the customer, like plan B. If the customer agrees to the alternate offer, it always keeps you in the game and the project moving forward.

For example, you are offering a one-year contract on a product which the customer uses every month. The customer indicates that he’s not ready to sign that. Instead of confronting the issue, you resolve it. You offer plan B, an alternate next step.

You suggest, instead, that the customer buy two months worth of the product to see how it works out, and

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then you and he will get together to assess the benefits of continuing.

Instead of a 12-month contract, your offer is a two-month trial.

Does that offer represent less risk to the customer? Of course. If the customer agrees to that step, are you still in the game? Is the project still going forward? Yes to both.

You see, the reason the customer didn’t say yes to your original offer has to do with his concerns—perhaps issues that have nothing to do with you or your product. By offering an alternate next step, you reduce his risk, and provide a mutually acceptable way to resolve the next step. The reason he didn’t offer a positive solution to your original offer has more to do with you missing something in the customer, than it did with your lack of verbal dexterity.

Let’s summarize: 1. Forget “closing the sale.”

Instead think “resolving the next step.”

2. Remember that effective “opening” is the best single tactic for closing.

3. Create a habit of always asking for action as a way to resolve every sales interaction.

4. Develop the habit of offering “alternate next steps.”

If you can execute these four things with ever-growing excellence, you’ll enjoy your customers’ respect, maintain positive relationships,

become far more important to them, and far outsell the manipulative “closers” surrounding you.

– One of the distribution industry’s leading sales educators, Dave Kahle has

presented in 47 states and eight countries, produces a free weekly ezine, and has written nine books, including How to Sell Anything to Anyone Anytime. Reach him at (800) 331-1287 or via www.davekahle.com.

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NAWLA 2013

By Dennis Connelly

7 trade show tactics

to ensure your ROI

I

WALKED INTO A large trade show booth recently. It looked like they spent a small fortune on the space and the construction. The exhibitor was selling a system that keeps water from seeping through a sliding door at the bottom. I wondered if they would get a return on that investment.

I walked in to see five company representatives talking with each other and was greeted by one of two young women who didn’t work for the company, but launched into a recently memorized product features seminar. It didn’t matter that I wasn’t in the market for such a product.

She never asked. The company staff never stopped their

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ARE YOUR trade show personnel like sleeping lions?

own discussion to find out if I was a prospect. After a few questions, the woman confessed that she was hired the previous day and given a briefing on the product. It showed.

Rather than bore you with what needed to be different in that booth, let’s examine what was happening and why. Often, in the absence of clear objectives, companies default to what they have done in the past—whether or not it has proven to be successful. Their strategy looked like the following: (1) Make a showing (2) Demonstrate your industry commitment (3) Attract attention (4) Get the product out there, so you’re seen as a player (5) Collect a bunch of business cards (6) Have a good time in Vegas (or wherever) Does this sound familiar? Have you ever seen it lead to tremendous amounts of new business? I mentioned in a previous article that Frank Belzer, author of the new book Sales Shift, calls this the “Denial = Visibility Model.”

Companies who adopt this strategy are accepting the low standard of visibility and denying that there is another way that might even reap multiples of their investment. So let’s unpack the scenario above a bit further.

The five company employees missed at least 100 people who walked by in 10 minutes. It’s likely that this is how sales works in their office as well: “Let someone else Building-Products.com

attract leads. Call us when you’re ready for a proposal.” And what about using this “attraction-distraction” method, as I like to call it, in a trade show booth? That the hired booth personnel know very little about the product is not even the real issue. It’s that they have no idea how to sell.

Instead of the strategy outlined above, maybe it’s time to update our view of trade shows and what they can produce for our companies. Here are a few tactics that compose a strategy that you might find more helpful:

1.

Have preset goals on the number of prospects that the booth must generate to be worth the investment.

This is fairly simple math, and it’s based on your critical sales ratios and margins. Email me if you need help with this.

2. Only real salespeople should greet prospects. A good salesperson knows how to lower resistance sufficiently to allow for a more in-depth product discussion. This is the art of sales. More on that in another article.

3. Visitors should be asked questions to find out if they fit the customer profile, so that time is not wasted on tire kickers while real prospects walk by. You spent too much money in a short period of time to veer away from your trade show goals.

4. At large shows, booth personnel

should stand in the aisle to ask questions filtering the thousands of people

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passing by, rather than waiting for someone to wander in. This is an obvious point, but it takes leadership to get it done. Elect or appoint a team captain for the booth each day.

5. The sales process should be updated, reviewed and executed. It should follow time-tested methods of consultation, discovery, needs-assessment, urgency and qualification. The sales conversation must leverage the many potential customers walking by your extremely short-term store front.

6. Salespeople who stand out from their competitors know how to have a business discussion that can lead to how their product or service can genuinely help a prospect. This is the most consistently effective way to be seen as different, and is an especially critical sales tool in commodities or when differences are otherwise subtle.

In non-commodities, the right kind of discussion can even eliminate competition from the mix altogether. If you want to understand how that works, send me an email.

7. All salespeople should be committed to their share of the total prospects needed for that show, by relentlessly pursuing attendees and maybe even competing with each other to make it fun.

Applying good selling skills to a trade show environment, setting clear goals for sales outcomes, and keeping everyone energized and engaged in the

effort is the key to an effective show strategy, especially when so much time and money is invested. There are many articles written on the subject of trade show etiquette and best practices, and they are helpful (e.g., don’t talk on the cell phone in the booth). I believe that the problem is even more fundamental and ties directly to the basics of sales effectiveness.

After drawing data from over 600,000 empirically assessed salespeople in thousands of companies across hundreds of industries, we know that 74% of all salespeople do not have the skill sets and sales “DNA” to be effective. Where could your organization make a sales shift to match the changing market dynamics?

How is management impacting salespeople and their effectiveness at meeting company goals? Do you have the right people, systems, processes and metrics to meet the expanding marketplace challenges? Even if business is on the rise, is your boat rising faster than the others? How can you ensure that will be true a year from now?

Improving the entire sales function in your company will carry over to the trade show floor. In this dynamic and shifting business climate, with everincreasing time constraints, it’s no place for amateurs, no matter how good looking.

– Dennis Connelly is a sales growth expert at Kurlan & Associates and author of the Living Sales Excellence blog. Reach him at dconnelly@kurlanassociates.com.

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NAWLA 2013 NAWLA Education Foundation

Education Foundation trains students for internships and careers

T

HE N ORTH A MERICAN Wholesale Lumber Association formed the NAWLA Education Foundation to introduce today’s students to career opportunities in the forest products industry. The primary objective of the not-for-profit foundation is to seed growth in all sectors of the industry by

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attracting a new generation of leaders and equipping them for success in building and managing sustainable businesses in the new green economy.

Recently, NEF completed its third career exploration workshop at a joint session between Mississippi State University and St. Peter’s University students.

Students who complete the NEF course are eligible for internships within the lumber distribution and manufacturing industry. The course included both classroom lectures and field work. Students had a chance to learn about important industry topics such as supply chain management, forest certification, green building, and carbon markets. These classroom presentations were supplemented by field visits to lumber mills, working forests, and residential building sites. Students receive college credit for the course.

Gary Vitale, NAWLA c.e.o. and president, believes bringing in young talent can benefit the entire industry.

“Today’s students are not familiar with our industry, and what they do know is often out-dated. The industry has gone through tremendous technological advancements of late, and environmental stewardship has become an even bigger focus in companies. In a recovery that struggles to create jobs, the forest products industry creates billions of dollars in trades and many new career opportunities. We want tomorrow’s leaders to consider the industry as a career.”

When creating NEF, NAWLA researched its members’ internship programs and found few companies that had a formal program. Since many of today’s college students need internships for graduation, the forest products industry has been missing out on recruiting new talent and exposing them to a career in the industry.

“The industry needs more than just forestry and industrial distribution majors,” said Vitale. “We need talent in accounting and finance, marketing and sales, engineering and operations. Many NEF students come from these majors and take the workshop for the internship opportuniBuilding-Products.com

ties. Unfortunately, we have more students than internships so far.”

Setting up an internship program from scratch can be hard, but the results can be very rewarding.

Companies get the chance to “test drive” potential new employees, while also educating future leaders on the value of the forest products industry. If done right, an internship can also benefit a company by bringing in a fresh perspective to an age old industry.

“We are looking for companies to step up and invest in the future of the industry. It can be through a valuable internship or a contribution to NEF,” said Vitale. “Regenerating quality entry-level employees should be a priority of each forest products company who wants to remain viable and successful in this changing world.”

“I urge every company who is interested to visit nawlaeducationfoundation.org to learn how to invest in the future of this great industry,” said Vitale.

NAWLA Education Foundation’s third career exploration workshop included field visits to sawmills, timberlands and construction sites.

We’re growing Colville, WA – Usk, WA – Midway, BC – Eagar, AZ

Building-Products.com

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FAMILY Business

By Wayne Rivers

I want to sell my company.

What do I need to do?

L AST WEEK,

my investment advisor called. He had a couple of clients who wanted to sell their small businesses. We discussed the nature of the companies: what they do, who works there, the goals of the owners, etc.

After bit of discussion, it became painfully apparent to us that these gentlemen, whose firms are very small and depend on the owners for virtually every single decision or function, have nothing worth buying!

Sadly, that harsh truth is the case for the majority of family businesses.

Forewarned is forearmed: It’s better to deal with reality now than to hope for some future miracle.

No matter how big your company is, how clever your advisors are, or how fat your margins are, there are only five ways to dispose of a closely held or family business: • Close the doors.

• Give it away.

• Sell to insiders.

• Sell to outsiders.

• A combination of the four above.

In the first alternative, a family could decide the business is no longer viable, they have socked away suffi-

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cient savings/investments for themselves, and they simply wish to liquidate the firm and walk away. There is nothing at all wrong with this alternative, if it is consistent with the goals of the family.

The next alternative would be to give away ownership to family members, key employees, or strangers on the street, for that matter. Then the company’s ownership, if not its dayto-day management, would be in the hands of others for strategic decisionmaking purposes.

In most family businesses, things are pretty clear when either the older generation owns 100% of the company or the subsequent generation owns it all. What is often murky, and usually quite contentious, is when the senior and junior generations share ownership and must develop new rules or norms about how they will make collective, group decisions and share power.

Selling to insiders means simply the owners wish to sell to either family members who are employed in the company or key, trusted managers— or a combination of the two. Again, there are power sharing and decision Building-Products.com

making questions to answer. Also, since NextGen family or employees aren’t likely to have piles of cash lying about for just such an occasion, how the deal will be financed can present obstacles.

A family company could decide to sell to outsiders (including the alternative of going public). Selling out, which is often seen as a valid alternative by the owners of closely held companies, is a fantasy for most family-owned businesses.

Finally, a company could use a bit of each of the four alternatives and come up with a combination plan that makes sense. They could close down a problematic area of the company, sell a division to key managers, give certain assets to NextGen family members either during senior generation owners’ lifetimes or at death, and sell another portion to outsiders if this option is viable and there are suitable purchasers.

Now, in the two “I want to sell…” instances above, the owners don’t really have businesses at all, although they are incorporated, file tax returns as businesses, etc. What I mean is that businesses, by definition, are perpetual. That is, they can continue in spite of the demise or retirement of the chief executive.

What most family business owners have is not a business, but a job—and a pretty demanding, often thankless one at that. If they genuinely want to have a business capable of creating sustainable opportunity and wealth for future generations, there is a step-bystep process for doing so.

To put an even more emphatic point on the assertion that most family business owners have jobs and not businesses—and therefore their companies are not worth an outside buyer’s attention—we call on the experience of one of our consultants, who had an 18-month assignment for buying viable, closely held companies for an investor’s portfolio. He learned that potential buyers or investors look at hundreds of deals before they close on even one.

In evaluating the viability of a closely held company, investors want the following: • Customers and suppliers loyal to the company, not just the owner • A company with a unique niche, with barriers to entry • Relatively little competition • The management team can run Building-Products.com

the company without the owner being there • There are assets inside the company that can be leveraged (such as property or receivables) • A recurring, predictable stream of revenue • Employees are motivated to stay, rather than leave (a buyer’s worst nightmare) The absence of any one of these seven items dramatically reduces the value of the acquisition target. The sad fact is that most sellers receive far lower selling prices than they had anticipated. If you are interested in selling your family business to outsiders, use this objective checklist to see how you stack up and where you might have deficiencies that should be improved.

If there are only five ways to dispose of a closely held company, which of the five is the most common and which alternative is the most realistic for the typical family business?

The two most common transition methodologies for closely held companies are giving the company to family members over time (often while retaining a salary or other income stream from the company), and selling to insiders who could be family members, loyal employees, or any combination thereof.

The beauty of either of these two methodologies—or using them in concert—is that the insider purchasers or recipients are usually more knowledgeable about the capabilities of the company, are willing to pay a higher price in one form or another, usually have extensive emotional ties to the business and senior generation owners, will rely on the departing owners as sources of funds (which can increase total return for the sellers) and ongoing expertise, therefore causing less disruption, upheaval, and radical change than might be expected from an outside purchaser.

The best advice I can give is to start planning early for the ultimate transfer of your family business, in order to maximize your opportunities and value.

– Wayne Rivers is the president of The Family Business Institute Inc., Raleigh, N.C. Reach him at wayne.rivers@familybusinessinstitute.com or (877) 326-2493.

Reprinted with permission of Key Resources LLC. No portion of this article may be reproduced without its permission.

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MASTERING Leadership

4 steps to taming

a combative culture

L

OOK AROUND .

Has a 10,000-lb. gorilla taken over your company?

Before you reply with a quick “no” and refocus on your to-do list, bear in mind that this giant beast is known by a second name: culture. And understand that taming him is imperative because his destructive behaviors can keep your company’s tribe from doing what it was brought together to do.

Here are some tell-tale signs that he has adopted your organization as his habitat:

• There are several positive change initiatives in the works, but the old guard refuses to alter “the way we’ve always done things.” They aren’t receptive to new hires and won’t take an active role in training them. Rather than working to move the company forward, they spend most of their day making excuses for why things should stay the same.

another department. These “celebrations” only serve as a smokescreen to hide stagnation and lack of progress.

• Your employees are constantly patting themselves and each other on the backs. Unfortunately, they’re often celebrating empty wins like getting a client’s order right on the second try or passing an angry customer on to

• Most people in your company seem too comfortable. They gravitate toward and “nest” in the familiar. At times, you wonder if innovation, creativity and motivation are foreign concepts to them.

TREATERS

“Unfortunately, the gorilla’s constant bellowing drowns out other messages in the concrete jungle, which allows poisonous cultures to take entire organizations hostage,” says Micheal J. Burt, coauthor of Zebras & Cheetahs: Look Different & Stay Agile to Survive the Business Jungle. “The good news is, prepared and proactive leaders can provide clarity, unite the tribe, and tame that unruly gorilla so that cooperation, growth and innovation are once again in the spotlight.”

According to Burt and co-author Colby Jubenville, leaders who can successfully go nose-to-nose with culture gorillas are members of a newly evolving breed: Zebra and Cheetah (or Z&C) Leaders.

“Zebra and Cheetah Leaders are so called because they exhibit qualities of both breeds,” explains Jubenville.

“Like zebras, they boast a distinctive appearance that others can easily recognize. Like cheetahs, they possess great speed and are particularly quick accelerators. And like both, they have an ability to utilize their senses so well that they excel in adapting to their environments. In other words, these

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Building-Products.com

are leaders who are able to adapt to the fast-paced, always-changing, and highly competitive business world, and who are capable of leading diverse tribes within it.”

Zebra and Cheetah Leaders recognize that 10,000-lb. gorillas are sustained by individuals who, unlike themselves, have refused to adapt to the ever-changing landscape of reality.

The authors suggest four things Z&C Leaders must do in order to stop feeding the gorilla… and create clarity amid the chaos of the concrete jungle: • Get real about the reality your tribe is facing. Chances are, the path you once took through the jungle was wide, well marked, and free of most significant obstacles. You could count on easily visible indicators, typical benchmarks, and annual performance ratings to keep you going in the right direction. And if any doubt cropped up, your company’s fearless leader would dictate who should lead, who should follow, and what should be done. To hear your change-averse gorilla tell it, that’s still an accurate portrayal of reality. Don’t let him fool you. The good old days are long gone.

“In today’s competitive, constantly changing global economy, organizations whose cultures expect the journey through the concrete jungle to be easy won’t last long,” Burt says.

“These days, the path can quickly change, or disappear altogether. You might encounter rockslides or quicksand at any moment. And predators— otherwise known as competitors—will be constantly nipping at your heels.

“Z&C Leaders are committed to drawing a clear picture of the true, actual circumstances their organizations face, regardless of how positive or negative they may be. Only then will you be able to cut through the smokescreen your gorilla may be throwing up and unite your tribe in pursuit of an overarching dominant aspiration.”

matter how balanced and well calibrated your tribe is on paper if all of its members don’t understand where, how and why they fit.

“It’s a natural instinct for people to worry about their futures,” Jubenville says. “That’s why so often new ideas, policies and people spark pushback.

Established tribe members worry that they’re being edged out or that they’re entering the endangered species list.

And that type of uncertainty feeds the gorilla. It’ll beat its chest, bellow and attack what it mistakenly perceives to be the competition, effectively halting growth and progress.

“As a Z&C Leader, it’s imperative for you to not only leverage your tribe’s talents, but to make sure all of its members understand where they fit within your organization’s ecosystem, both now and in the future.”

• Clearly define success. Once tribe members understand the order of the jungle they inhabit, Z&C Leaders must outline what, exactly, constitutes success. Left to their own devices, each individual is likely to define that outcome differently, usually in whatever way would benefit them most personally. In this scenario, you’re

likely to have some employees who mistakenly believe they’ve “made it,” while others struggle, strive and snipe their way in the wrong direction.

“We refer to the force of a tribe working toward success as collective passion,” says Burt. “The struggle to survive and succeed in the global economy won’t always be pleasant or easy. But if your tribe goes through the metaphorical fire together, it will emerge as a stronger, more efficient group. Collective passion helps create a cooperative, unified environment— in which gorillas can’t survive.”

• Create new levels of professionalism. This step is the easiest. You’ll find that when your tribe’s members have collectively survived the crucible and reached the first level of success you’ve set for them, their relationships with each other will change.

“Specifically, competition within the tribe will naturally be replaced by new levels of cooperation once everyone sees what they’re all capable of accomplishing together,” promises Jubenville. “This will then allow the competitive focus to fall where it belongs: outside the tribe.

• Make sure your tribe understands the complex order of the concrete jungle. In nature, jungles are incredibly complex. They contain a dizzying amount of animals and plants that are competing for resources and survival. But despite (or in some cases, because of) the occasional casualty, the ecosystem supports the many populations that call it “home” and enables them to thrive.

Ideally, that’s the case within your company, too. However, it doesn’t Building-Products.com

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NEW Products

Stabilizing Primer

Light the Decks

Fiberon’s new post, post cap, accent and riser lights are controlled with a remote-control dimmer.

The low-voltage LED lights are

built from rust-free aluminum and powder-coated in white, black or bronze for a long-lasting finish.

 FIBERONDECKING.COM (800) 573-8841

Historic Measurer

Stanley Tools is celebrating the 50th anniversary of the PowerLock tape measure with special designs.

Each device measures up to 25 ft. and features a sliding lock, a durable Mylar protective coating, and a Tru-Zero endhook for accurate measurements.

Duckback’s P-3 primer stabilizes peeling paint and stops most rust and tannin bleeding.

The 100% acrylic elastomeric primer can be used on wood, concrete, stucco and metal surfaces. Environmentally friendly and low-VOC, clean-up is easy with just soap and water.

 SUPERDECK.COM (800) 825-5382

 STANLEYTOOLS.COM (860) 827-5480

Water-Based Preservative

Tool Organizers

Klein Tools makes it easier to organize and transport tools.

The Tradesman Pro rolling tool bag is load tested to 200 lbs., with rugged 6” wheels and a reinforced metal frame.

The Hacksaw Electrician’s bag has 48 pockets. An attachable Hacksaw Holder has a quick link

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that can be secured to tool bags, carts, ladders and more.

The Tradesman Pro electrician’s tool belt has a pocket for drill bits and a holder for a tape measure.

Removable pouches have 26” wide-open pockets for tools, drills and spare parts.

Green’s clear water-based wood preservative prevents deterioration without coloring, plus shrinking, warping and cracking.

Application is by dipping, brushing or spraying, with easy soap and water cleanup.

Once dry, the surface can be covered with oil or alkyd paints.

 KLEINTOOLS.COM

 COPPERGREEN.COM

(847) 821-5500

May 2013

(510) 235-9667

Building-Products.com

Wrap Those Windows

Aluminum-alloy railing kits from Feeney Design are a durable alternative to wood or composite railing.

The kits are sized for 36” residential railings and include all necessary components and connecting brackets.

MFM Building Products’ WindowWrap waterproof tape can be used around windows, doors, building seams, and in general construction.

The tape features PowerBond asphalt adhesive to ensure a tight bond, even in low temperatures. It selfseals around common fasteners, for protection against water, air, insect and noise penetration.

The 100’ rolls are 25 mils thick, in widths of 4’, 6’, 9’ and 12’.

 FEENEYINC.COM

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Building-Products.com

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Metal Balusters

Connecting Decks and Fences

Metal balusters from Azek Building Products can be attached directly to railing.

An extruded channel allows direct screw attachment. It also eliminates plastic connectors, for a clean, uncluttered look.

Balusters come in four lengths (29”, 31”, 35” and 37”), with stair balusters in two lengths (31” and 37”), in both round and square styles.

RailLok from Screw Products connects railing and fence sections to posts.

The fasteners are available in 316 stainless steel, white and black powder-coated finishes, as well as custom colors.

DeckLok brackets create stronger deck connections at the floor joist, to meet or exceed IRC 2006 requirements.

 AZEK.COM

 SCREW-PRODUCTS.COM

(800) 275-2935

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(877) 844-8880

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Building-Products.com

More PVC Decking

Inteplast expanded its offerings of PVC decking.

The Eco collection is designed to be economical and environmentally friendly, with lightweight and reversible boards.

The Kinbo collection features reversible boards with embossed woodgrain, capstocked on all four sides.

 TUFBOARDS.COM (800) 452-2117

Roof Underlayment

Ply40 underlayment from Boral Roofing can be used under tile, shake and shingle roofing systems.

Made of modified fiberglass, the reinforced product is designed to minimize the wrinkling and buckling often associated with non-modified felts.

 BORALROOFCOMPONENTS.COM (800) 669-8453

Building-Products.com

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WESTERN DEALERS’ GOLF Photos by The Merchant

WEST COAST Lumber & Building Material Association hosted an April 12 golf tournament at Black Gold Golf Club, Yorba Linda, Ca. [1] Angelo Cleffi, Eric Carreon, Jerry Romero, Andy Salazar. [2] Chris Likert, David Hollingworth, Aaron Howe, Mike Russell. [3] John Seely, Danny Sosa, Jeff Norihiro, Tom

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Lopez. [4] Micah Orr, Jim Russell, Matt Deitchman, Kim Wood. [5] Sergio Paz, Troy Staufenbeil, Jack Butler. [6] Glenda DeFrange, Marlene Salazar, Karen Glover, Suzy Cleffi. [7] Geoff Garner, Dale Verseput. [8] Curt Nierman, Frank Bader, Alain Patton, Jim Nicodemus. [9] Carlton Jennings, Ted Smith, Scott Middaugh,

May 2013

Al Reed. [10] Gavin Morris, J.C. Lopez, Raymond Torres, Jason Rutledge. [11] Mike Irish, Tim Dickison, Jeff Pardini, Dave Wallace.

[12] Doug Willis, Oliver Banes, Steve Lawrence, Augie Venezia, Rick Deen, Danny Andrea. [13] Kristin Miller, Lisette Silverman, Rebecca Jones. (More photos on next 2 pages) Building-Products.com

WESTERN DEALERS’ GOLF Photos by The Merchant

MORE WCLBMA GOLF (continued from previous page): [1] Sean Cummings, Jennifer Burford, Chris Huntington. [2] Bill Ferguson, Greg Stout, Frank Huerta, Brad Satterfield. [3] Mike Claborn, Walter Frederick, Mark Davis.

[4] Ericka Chavez, Alfie Henshaw. [5] Mike Potthoff, Mike Carey, Rex Klopfer, Mark Building-Products.com

Ganahl. [6] Ken Lineberger, John Assman, David Coleman. [7] Brian Hurdle, Grant Phillips, Kevin Dodds, Joe LaBerge, Kevin Paldino, Lynn Bethurum. [8] Carlos Zarate, Allan Pantig. [9] Mark Ramsey, Rich Langton, Mark Huff, Joe Bolton. [10] Ryan Lauterborn, Cory Peterson, Mike Tompkins, Jarrett

Deschenes. [11] David Iblings, Rolando Robles, Richard Rios, Larry Christensen. [12] Jim Kaminski, Steve Mitchell, Dan Lucero, Tony Campbell. [13] Chris Thoman, Andrew Jacquet, Barrett Burt, Steve Schroeder, Jim Burns. [14] Christoper & Debbie Quezambra, Joe McCarron.

(More photos on next page)

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WESTERN DEALERS’ GOLF Photos by The Merchant

EVEN MORE GOLF (continued from 2 previous pages): [1] Ken Smith, Tim Hummel, Marc Weaver, Greg Hexberg. [2] Keith Lyng, Rich James, Scott Whitman, Terry Rasmussen. [3] John Pasqualetto, Matt Manke, John Davis, Mike Nicholson. [4] Sean Fogarty, Marc Spitz, Troy Allen, Dale Donnelly. [5] Ron Hillman, Tom Angel, Erik Nagli, Craig Larson. [6] Dave Vigil, Paul Corso, John Mayhew, Kelly Lyon. [7] Grant Pearsall,

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Doreen Meeks, Pete Ganahl, Melissa Greyson, Pete Meichtry, Sheldon Doss. [8] Dan May, Dave Miller, Joe Allotta, Deonn DeFord. [9] Gerry Perez, David Abbott, Chris McDonough, Nate Johnston. [10] Joe Honochick, Karl Hallstrom, Mark Grube, Sal Camarda. [11] Charlene Valine, Bill Sullivan, Jean Henning, Ken Dunham. [12] John Neel, Jennifer Burford, Dave Bufe, Dan Croker. [13] Lovell Williams, Michael O’Dell.

Building-Products.com

HARDWOOD RACES Photos by Walter Ralston

BIG PAYOFF: Los Angeles Hardwood Lumberman’s Club drew its largest attendance since the club’s inception in 1969 to its annual Day at

the Races April 20 at Santa Anita Racetrack, Arcadia, Ca. [1] Garrison Cox, Mark Mahood, Jim Gaither, Nicole Cox, Tammy & Kevin Tranter. [2] Ryan & Alyssa Haag, Christian Aldam, John Banks, Robert Schad. [3] Mike & Lisa Rossi, Jeremy & Emily Moyer, Amy & Tony Moyer. [4] Stephanie Beck, Steve Long, Mike Long, Louis Wohf. [5] Walter & Dian Maas, Joyce & Walter Ralston, Charley James. [6] Tim Mathews, Vicki Johnston. [7] (back) Dan Bohannon, Randy Porter, Dale Bohannon, (front) Kit Rohm, Marty Porter.

[8] Margie Findlay, Paul & Candace Pendergast, Shannon Jacuez, Sue & Paul Jukes.

ASSOCIATION Update West Coast Lumber & Building Material Association’s 40-and-under 2nd Growth group will gather July 18-19 at Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca., for its annual summer conference.

Southern Oregon Lumbermans Association will meet July 25-26 for a golf tournament and BBQ at Rogue Valley Country Club, Medford, Or. Western Red Cedar Lumber Association will host its annual Cedar Summit on Sept. 5, during the BC Wood Global Buyers Mission, Sept. 5-7 at Whistler Conference Center, Whistler, B.C. Building-Products.com

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CLASSIFIED Marketplace Rates: $1.20 per word (25 word minimum). Phone number counts as 1 word, address as 6. Centered copy or headline, $9 per line. Border, $9. Private box, $15. Column inch rate: $55 if art furnished “cameraready” (advertiser sets the type), $65 if we set type.

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To reply to ads with private box numbers, send correspondence to box number shown, c/o The Merchant. Names of advertisers using a box number cannot be released.

HELP WANTED

NEIMAN REED LUMBER CO., a San Fernando Valley-based wholesale lumber and plywood distributor, is looking for two quality and seasoned salespersons. The first candidate will manage and run our plywood operation with sales and buying responsibilities. Mill contacts and customer following are essential. The second candidate will be a softwood/hardwood trader with loyal following. We offer the most comprehensive inventory with a full spectrum of grades, a competitive compensation program, earned bonuses, 401K, travel and expense accounts, and full-health insurance benefits. This is an excellent opportunity to be a key part of a premier wholesale lumber company. Please send resumes in confidence to Ed Langley: elangley@neimanreed.com.

CALIFORNIA CASCADE INDUSTRIES is currently hiring quality, seasoned salespeople.

Opportunities are for both inside and outside sales. Send resume to ckaufenberg@ californiacascade.com

WANTED TO BUY WANTED: DOWNFALL & SECONDS Downfall, excess or salvage lumber, panels, roofing, etc., purchased for export. Contact CarlHanson103@aol.com, (619) 954-9955.

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

WoodWorks – May 15, multi-story wood-frame structures seminar, Red Star Tavern at Hotel Monaco, Portland, Or.; May 16, Luna Restaurant, Spokane, Wa.; woodworks.org.

National Retail Federation – June 12-14, loss prevention conference & expo, San Diego Convention Center, San Diego, Ca.; (800) 673-4692; www.nrf.com.

Los Angeles Hardwood Lumberman’s Club – June 13, meeting, Moreno’s Restaurant, Orange, Ca.; (626) 445-8556; www.lahlc.net.

Do it Best Corp. – May 18-20, spring market, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

West Coast Lumber & Building Material Association – June 13, associates/dealers golf tournament, Rancho Solano Golf Club, Fairfield, Ca.; (800) 266-4344; www.lumberassociation.org.

Hardwood Plywood & Veneer Association – May 19-21, annual convention, Meritage Hotel, Napa, Ca.; (703) 435-2900; www.hpva.org.

Southern California Hoo-Hoo Club – June 19, meeting, Anaheim Hills Golf Course, Anaheim, Ca.; (760) 324-0842; www.hoohoo117.org.

Society of American Foresters – May 23, Selkirk chapter meeting, Longhorn BBQ, Airway Heights, Wa.; (509) 571-3374; www.safnet.org.

Western Wood Preservers Institute – June 23-25, summer meeting, Ritz-Carlton Lake Tahoe, Truckee, Ca.; (360) 693-9958; www.wwpinstitute.org.

Tacoma-Olympia Hoo-Hoo Club – June 4, meeting, La Quinta Inn, Tacoma, Wa.; (253) 531-1834.

Northwest Natural Resource Group – June 24-26, small-scale logging workshops, Oakville, Wa.; (360) 316-9317; nnrg.org.

Window & Door Manufacturers Association – June 4-6, annual technical conference, Intercontinental Hotel, Milwaukee, Wi.; (312) 637-5891; www.wdmatechconference.org.

Western Forestry & Conservation Association – July 8-11, advanced insect & disease field session, Hood River, Or.; www.westernforestry.org.

PCBC – June 5-6, San Diego Convention Center, San Diego, Ca.; (800) 956-7469; www.pcbc.com.

Mountain States Lumber & Building Material Dealers Association – July 16, Colorado WOOD Council golf tournament, The Ranch Country Club, Westminster, Co.; (800) 365-0919; www.mslbmda.org.

Forest Products & Machinery Equipment Expo – June 5-7, sponsored by Southern Forest Products Association, Georgia World Congress Center, Atlanta, Ga.; sfpaexpo.com.

Elmia Wood – June 5-8, international forestry fair, Elmiavagen, Jonkoping, Sweden; www.elmia.se.

Oregon Urban & Community Forestry Conference – June 6, World Forestry Center, Portland, Or.; pries@odf.state.or.us.

Global DIY Summit – June 6-7, Sheraton Roma Hotel & Conference Center, Rome, Italy; www.edra-online.com.

Willamette Valley Hoo-Hoo Club – June 7, golf tournament, Shadow Hills Country Club, Junction City, Or.; (541) 485-5979.

Forest Products Society – June 9-11, 67th international convention, AT&T Conference Center, Austin, Tx.; (608) 231-1361; www.forestprod.org.

American Architectural Manufacturers Association – June 9-12, national summer conference, Hyatt Regency O’Hare, Rosemont, Il.; (847) 303-5664; www.aamanet.org.

Western States Roofing Contractors Association – June 9-12, convention & expo, Peppermill Hotel & Casino, Reno, Nv.; (800) 725-0333; www.wsrca.com.

Western Forestry & Conservation Association – June 10-14, basics of forestland & timber appraisal seminar, Corvallis, Or.; www.westernforestry.org.

National Lawn & Garden Show –June 11-13, Crowne Plaza O’Hare, Rosemont, Il.; (888) 316-0226; www.nlgshow.com.

West Coast Lumber & Building Material Association – July 1819, 2nd Growth summer conference, Rancho Las Palmas Resort & Spa, Rancho Mirage, Ca; (800) 266-4344; www.lumberassociation.org.

Association of Woodworking & Furnishings Suppliers – July 2427, woodworking fair, Las Vegas Convention Center, Las Vegas, Nv.; (800) 946-2937; www.awfsfair.org.

Southern Oregon Lumbermans Association – July 25-26, golf tournament & BBQ, Rogue Valley Country Club, Medford, Or.; (541) 779-5121.

Oceania Plantation, Forest & Wood Products Trade Conference – Aug. 8-9, Bayview on the Park Hotel, Melbourne, Australia; www.prcc.com.au.

Willamette Valley Hoo-Hoo Club – Aug. 14 , trap shoot, Eugene Gun Club, Eugene, Or.; (541) 393-3309.

Orgill – Aug. 22-24, fall dealer market, Boston Convention Exhibition Center, Boston, Ma.; www.orgill.com.

Mountain States Lumber & Building Material Dealers Association – Aug. 23, golf tournament, Western Slope golf tournament, Rifle Creek Golf Course, Rifle, Co.; (800) 365-0919; www.mslbmda.org.

National Association of Women in Construction – Aug. 28-31, annual convention, Hyatt Regency, Bellevue, Wa.; (800) 5523506; www.nawic.org.

THUNDERBOLT WOOD TREATING “WE TREAT WOOD RIGHT”…Quality Wood Treating Services Since 1977

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Bob Palacioz, sales/marketing mgr. • bob@thunderboltwt.com (916) 402-3248

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Miguel Gutierrez • miguel@thunderboltwt.com (209) 747-7773

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The Merchant Magazine

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61

ADVERTISERS Index

IDEA File Putting a Finger on Profits

A hardware store outside Philadelphia, Pa., is surviving against larger competitors by offering more than the usual services.

“I’m more of a convenience store; more like a 7Eleven to a supermarket,” says Bob Wipplinger, who has owned 80-year-old Penndel Hardware, Penndel, Pa., for the past 15 years. “We depend on people who want to support a local store.”

The 3,000-sq. ft. location offers standard hardware merchandise and a number of extra items, like greeting cards and toys. It also offers the usual services—such as cutting of glass and mirrors, plus screen and lamp repair—but has branched out with several that are less commonly offered at hardware stores.

“We install watch batteries, too. It’s another little niche,” he says. “We have to be flexible.”

But it’s the store’s newest service—taking fingerprints for locals applying for a government position or a job with direct contact with children, as an authorized Cogent Fingerprinting facility—that has become the most profitable.

A good customer suggested that the store should offer the service so nearby residents wouldn’t have to drive 15 miles to get fingerprinted.

“We’ve done 9,000 prints in two years and we get $3 per print,” says Wipplinger, who’s pleased with the arrangement since no costs were involved and training was simple.

He also makes money by renting the upstairs of the building, which he owns, to tenants. “That’s really how we survive. Otherwise it’s game over,” says Wipplinger, who also is a real estate agent. “I knew I couldn’t make a decent living just selling nuts and bolts.”

Even though he’s had to branch out to survive in a difficult marketplace, Wipplinger is happy to be in the hardware business. He started working in his father’s hardware store at age 16 and has been in the business ever since—and doesn’t plan to quit anytime soon.

“I like the freedom of being self-employed, of helping customers, of fixing things,” he says.

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

Advantage Trim & Lumber [www.advantagelumber.com]..........51 Allweather Wood [www.allweatherwood.com] ............................23 Azek [www.azek.com] ....................................................................21 Big Creek Lumber Co. [www.big-creek.com]...............................54 Blue Book Services [www.lumberbluebook.com].......................46 BW Creative Wood [www.bwcreativewood.com] ........................53 Cabot [www.cabotfactoryfinish.com] .............................................7 California Cascade Industries [www.californiacascade.com]......4 California Redwood Co. [californiaredwoodco.com]........Cover III Capital [www.capital-lumber.com]..........................................40, 43 DeckWise [www.deckwise.com] ...................................................55 Digger Specialties [www.diggerspecialties.com]........................39 Distribution Management Systems Inc. [www.dmsi.com]..........36 Endeck [www.endeck.com] ...........................................................15 Fiberon [www.fiberondecking.com] .............................................19 Fontana Wholesale Lumber [fontanawholesalelumber.com].....50 Hoover Treated Wood Products [www.frtw.com]........................30 Huff Lumber Co. .............................................................................31 Humboldt Redwood [www.getredwood.com] ..............................23 Idaho Forest Group [www.idahoforestgroup.com] .......................3 Inteplast Group [www.tufboards.com] .........................................25 J.M. Thomas Forest Products [www.thomasforest.com] ...........45 Keller Lumber Co............................................................................59 Mendocino Forest Products [www.mfp.com] ..............................23 MoistureShield [www.moistureshield.com] ...................................5 Mount Storm Forest Products [www.mountstorm.com].............24 Norman Distribution Inc. [www.normandist.com].......................43 North American Wholesale Lumber Assn. [www.nawla.org] .....38 NyloBoard [www.nyloboard.com]...................................................8 Pennsylvania Lumbermens Mutual Insurance [plmins.com] .....41 Railing Dynamics Inc. [www.rdirail.com] .....................................29 Redwood Empire [www.redwoodemp.com].................................37 Roseburg Forest Products [www.rfpco.com] ..............................13 Simpson Strong-Tie [www.strongtie.com] ........................Cover IV Siskiyou Forest Products [siskiyouforestproducts.com]...........35 Specialty Forest Products [www.specialtyforest. com]..............25 Sunbelt [www.sunbeltracks.com] .................................................42 Sure Drive USA [www.suredrive.com]..........................................26 Swanson Group Sales Co. [www.swansongroupinc.com].........33

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TAMKO Building Products [evergrainchallenge.com].......Cover II

Have your recent expansion, personnel promotions, new product introductions, or other company changes published in the next issue of The Merchant Magazine.

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Vaagen Bros. Lumber Inc. [www.vaagenbros.com]....................47

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62

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Thunderbolt Wood Treating [thunderboltwoodtreating.com] ....61 TigerDeck [www.tigerdeck.com] ...................................................32 Viance [www.treatedwood.com] ...........................................Cover I Wahoo Decks [www.wahoodecks.com] .......................................28 Western Red Cedar Lumber Association [www.wrcla.org]...48-49 Western Woods Inc. [www.westernwoodsinc.com]....................27 Yakama Forest Products [www.yakama-forest.com]..................44

May 2013

Building-Products.com