Expanding

Frequently when a builder experiences the value of the installed service, they become building materials customers as well.

2. Itt"rease Average Sale

Once a builder becomes comfortable with your installed sales program, it is fairly easy to add other products. Most builders would rather deal with one company that they know and trust than juggle multiple

By Roy Burleson

One builder I worked with even suggested my customer's installation service helps him build an extra house or two per year because the builder was able to rely on the dealer's staff to install insulation and many of the after-paint products with one phone call. And when a loyal customer can build more houses, you have the opportunity to increase the builder's frequency of purchases.

4. Inc.ease Profit Margins

Most builders have multiple sources for most of the building components that comprise the house. Anyone can provide the builder with a lumber drop. However, not everyone can help the builder with installation services. Most builders acknowledge that good subcontractors are very valuable to the home building process, many times more valuable than their product suppliers.

subcontractors. The more you can bundle, the more valuable your installation service becomes for your customer. Your installed program becomes a business solution when it helps the builder control time and/or money. One-stop shopping will almost always save the builder time.

3. Increase Purchase Frequency

Initially this may seem like a tough order, especially in this market, but it can be done. I have seen more than one builder come to the conclusion that a dealer's properly executed, bundled installed sales program could assist with his project schedules and even shorten building cycles.

Dealers that do both typically enjoy better margins. Many installed sales departments enjoy margins 107o to l5Vo higher than their product-only counterparts. And when these same dealers bundle their installed offerings, their margins get even better.

The housing market isn't likely to dramatically change in the next few years. That being said, every building material dealer needs to find ways to generate non-traditional revenues by increasing the value of their unique selling proposition. Offering installation services is one way to increase value because it offers solutions.

- Roy Burleson is director of Builder Solutions for Guardian Building Products, Greer, S.C. Contact him at (248) 760579 I or royburleson@ bp. guardian.com.

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Weyrick Buys Gang Nails

Four-unit Weyrick Lumber, Templeton, Ca., is fast expanding thoughout Central California with its purchase of Gang Nail Truss, Visalia, as well as a building in Santa Maria that it will remodel into a full-service lumberyard.

Former Gang Nail owners Tim Rouch, Rob Rouch, Rich Rouch, and Cyril Thompson will continue to oversee the truss operations. They have been active in all phases of the 49-year-old business since the early 1970s and acquired the company upon their father's retirement in 1989.

New owner Colin Weyrick said Gang Nail Truss will retain its name and add a full lumberyard and range of building products. And Weyrick Lumber locations will now be able to offer roof and floor trusses.

Weyrick said the Santa Maria site, formerly devoted to a non-industryrelated use, will be remodeled within the next few months. opening up a new market to the company.

Weyrick operates a lumberyard, retail store, door and window shop, and custom milling facility in Templeton, plus distribution and sales locations in Lompoc, Chino and Bakersfield. Ca.

Cedar Fencing Mill Glosing

Sierra Cedar Products LLC, Marysville, Ca., is winding down operations and will permanently close by March 31 due to poor market conditions and high log costs.

The mill was built in the early 1990s and acquired in 2005 by SoperWheeler Co., Strawbeny Valley, Ca.

P&T Sawmills Ghange Hands

International Forest Products. Vancouver, B.C., has completed its acquistion of three mills from bankrupt Pope & Talbot, Portland, Or.but immediately turned around and sold one of the facilities.

Neiman Enterprises, Hulett, Wy., agreed to pay Interfor $14 million for the Spearfish, Id., mill. Interfor paid $69 million for the facility, along with mills in Grand Forks and Castlegar, B.C., and related timber tenures.

Neiman plans to operate the Spearfish mill at full capacity. Interfor v.p. Rick Slaco said the company parted with the facility due to its distance from its core operations in B.C. and the Pacific Northwest.

As for Pope & Talbot's remaining mills, suitors were given until Jan. 8 to submit bids. Operations receiving a single bid were to be sold Feb. 1, while facilities with more than one offer were to be auctioned off Feb. 5.

Indonesia's Sinar Mas Group, parent of Asia Pulp & Paper, has offered $225 million for P&T's pulp mills in Halsey, Or., and Mackenzie and Nanaimo. B.C.

Other P&T assets include idled sawmills in Fort St. James and Midway, B.C.

Portac Pulling Out Of Tacoma

Portac Inc. is permanently shuttering its large-log sawmill in Tacoma, Wa.. but will continue operations at its mill near Forks. Wa.

President Gary Takahashi blamed the closure on timber supply problems and a depressed housing market. Portac will lay off 71 employeesprimarily mill workers-beginning in late February. More than a dozen office workers will remain in Tacoma to provide administrative support for the Forks facility.

Portac eliminated one 50-man shift of workers last spring due to a shrinking supply of large logs.

Portac leases the 66-acre property from the Port of Tacoma. which has agreed to allow the nearby Pierce County Terminal to take over the site when it's ready to expand.