One Man's ldea

How the Price Reporting ond Cost Analysis Plan Operotes-Detailed Explonotion of the Plon Discussed by \fl. C. Bell at the Annual Convention of the Calilornia Retail Lumbermen's Association and the first staff consisted only of Mr. Bell and a stenographer.

Most powerful of all forcesin establishing sound merchandising methods and stabilized price conditions is the desire for them, in the mind of the dealer himself. To build up that desire through a constant informational program, based on accurate statistical facts is the prime motive for the existence of Lumber Promotion, Inc., an active corporation furnishing retail lumber dealers a highly specialized market analysis service that has proved its worth in increased profits for the individual retail dealer.

W. C. Bell, originator of the Lumber Promotion plan, spent a good many years in the retail lumber business, and found that increasing cut-throat competitio'n among dealers rvas eliminating most of the profit. For years he met with competitors in an efiort to develop a friendly understanding, and found that they all wanted to make a reasonable profit and free themselves from unpleasant suspicions o{ the other fellow, that none of them were malicious in their intent, but suspicion hovered over them all the timg.

It occurred to him that the chief trouble was lack of information about their business; they guessed at the market price, individually; they guessed at the volume and found it easy to envy the other fellow and magnify his success; they would not admit the other fellow was the better salesman, but simply decided he must be cutting prices. These are all very human reactions, of course, but there rvas nothing to make them feel differently.

It seemed to Mr. Bell that the average dealer, if supplied with the right information, would use it profitably. So he developed the statistical service plan known as Lumber Promotion, Inc., and set about utilizing natural human motive forces to relieve competitive animosity, instead of trying to oppose these forces by artificial price fixing and other common restrictions.

Lumber Promotion, Inc. was formed in September, 1932.

The first contracts for this service were signed by the retail lumber dealers in Bremerton, Washington, followed almost immediately by the dealers in Tacoma and Olympia, Washington. The first office was established in the Winthrop Hotel. Tacoma, from which these three cities were served.

Today Lumber Promotion, Inc. has an operating force of forty employees. It contacts and is active in principal cities in western Washington, Oregon, and Idaho, and in Minneapolis, St. Paul, and Kansas City in the midwestern part of the United States. The territory is divided into seventeen districts, each one under the personal supervision of a district manager, whose duties are to audit each dealer's books and records each month; obtain merchandising and operating costs; rvholesale and retail prices. The information is tabulated and sent to the statistical office in Tacoma rvhere the further work of compiling and computing each dealer's record of sales, gross return and operating expense is completed. The same information covering the combined operations of the other dealers within his trade area is included in the finished reports rvhich are distributed at group meetings, where they, and other phases of operation, are discussed. Dealers are encouraged to study market conditions and commodity turnovers for their individual benefit.

Another activity of the organization is the constant check on daily transactions of each dealer. This continual checking by Lumber Promotion's auditors of errors in footage and 'price extensions is of value both to the consumer and the dealer. The knowledge that an impartial check of every transaction will be made keeps every firm constantly alert and careful in the listing and pricing of sales tickets. They have found that this feature alone is especially valuable to small one and tr,vo-man yards, where there is no opportunity for double checking, except through the rnedium of a service such as this one, thereby saving dollars for retail lumbermen by the correction of sales tickets, a saving that often covers the entire cost of the service to the dealer.

An added service of immeasurable value is the recording assistance rendered by the auditors. Through the encouragement and help of the various service men, many dealers have installed new and simpler bookkeeping systems and have improved their methods of keeping stock, displaying merchandise and estimating costs.

Competent legal advice is offered as another phase of this service organization, and it is continually seeking a solution of technical and trade problems as they arise. The maintenance of friendly relations with wholesatrers, manufacturers and contractors is still another activity of Lumber Promotion, Inc.

The job is only half done when the report forms are planned and the routine is set to work. It takes the work of the district managers and the men in the field to put it over. The reports are simply the too s which these men use in carrying on their work. They are specially trained for this type of position and are constantly striving to bring about higher standards of ethics and better merchandising methods, for the benefit of the individual dealer and the lumber industry as a whole. They are familiar with the courage, initiative and constant struggle on the part of the men engaged in the retail lumber industry and ' have a ready understanding of the many problems peculiar to their section of the country. fn every district these local managers have earned the confidence and respect of the dealers.

Contrary to some beliefs, Lumber Promotion, Inc. is not and does not operate as an association. It is a private service corporation, and each individual dealer signs a simple agreement for the service at a stipulated fee.

Lumber Promotion, Inc. was established six years ago as an agency to give the retail lumber dealer this information. It was a comparatively new theory. Many dealers were skeptical of its possibilities as a price stabilization program, but its continued expansion proves that hundreds of retail dealers and many trade territories are realizing the benefits of its application.

Lumber Promotion, Inc. is one man's solution to many of the perplexing problems which his long experience as a lumber dealer had taught him were common to all retail lumbermen.

Britigh Press Shows Interest in U. S. Lumber Situation

Washington, Jan. 6.-Further indication of the increasing British interest in United States lumber and forest products problems during 1938 was evidenced by publication in the December issue of Trade & Engineering of an article labeled "American Lumber Problems." The magazine is published by the London Times.

The story, written by Wilson Compton, secretary and manager of the National Lumber Manufacturers Association, first discusses conservation, showing there is no danger of American timber shortage or "famine" and then points out the need for increased lumber exports. In addition, it considers the grading of American sarvn timber, small home building, hardwoods, pitch pine and its use, and West Coast woods an,d their use.

The article is evidently an outgrowth of IVIr. Compton's visit to Europe and the Comite International du Bois last fall.

Vacation In California

William Swindells of Willamette Valley Lumber Co., Dallas, Ore, and Mrs. Swindells, were in California on a vacation trip during the holidays. They took in the Rose Bowl game at Pasadena,lanuary 2.

A. T. McKINNEY VISITS TEXAS

A. T. McKinney, Willow Glen Lumber Co., San Jose, retunred early in January from paying a visit to his parents in Texas. He was accompanied on the trip by his family.

Calls On Los Angeles Office

C. G. Price, general manag'er of the California Door Company, Diamond Springs, Calif., spent a couple of days last rveek in Los Angeles with Glenn O. Fogleman, resident manager of the company's Southern California operation.