Berkel"v Firm Conducts Merchandising'tlintc" for Lumber Dealers

For the past several months the Built-In Fixture Company, Berkeley, has been conducting a series of meetings on Friday evening of each week, at which the speakers have been representatives of manufacturers of nationally known products, and of banking, building and loan and other businesses, and the audiences have been composed of retail lumber dealers rvho are eager to learn as much as they can about modern merchandising.

The manufacturers' representatives have in most cases been heads of sales deoartments who describe in detail the methods by which their products are marketed, and mdny valuable ideas have been picked up by those who have been regular in attendance at the meetings, which have developed into what G'eneral Manager Ray B. Cox calls a merchandising "clinic".

At recent meetings, for instance, the speakers have included representatives of The Celotex Company, The Westinghouse Electric & Mfg. Co., and a large glass manufacturing concern, and at one meeting a prominent banker explained the workings of the Reconstruction Finance Corporation. Up to date 19 meetings have been held with the attendance ranging between 2O and 30.

The speaker on Friday evening, April 8, was P. H. Peterson, San Francisco, supervisor of West Coast sales of paints, varnishes and Dnco, for E. I. du Pont de Nemours & Co., Inc., who was invited to talk on "'Where Are Modern Lumber Yard Profits ?" Mr. Peterson said that many lumber yards that formerly cater.ed to contractors only are now depending mainly on remodeling and repair work for their profits, and are catering to the home owners by handling such lines as built-in fixtures, builders' hardware, garden tools, cement, unfinished furniture, paints, varnishes and enamels. The lumber yard in the past has operated principally on price appeal only, he said, and he believed they should now carry lines of well known merchandise that are nationally and locally advertised and merchandised to bring consumers into their place of business. The qual- ity of the product must be considered, and the product should have consumer acceptance to eliminate sales resistance as far as possible, and save time in making sales. Lumber dealers have an advantage as a general rule over the downtown store in having parking facilities for customers, so that being on the outskirts of a town is a distinct advantage if they have the lines that attract buyers into their place of business.

In selecting lines the speaker advised dealers to give preference to those for which they can get the excluiive agency for their district, and then to take full advantage of the manufacturer's cooperation so as to hold the agen-y.

In discussing the question, "Where Do Profits Lie in the Paint Business?", Mr. Peterson said that a national survey conducted by his firm showed that ,the average lumber dealer who handles paints carries a stock of $1000 to $1200, and does an average business of 92000. As 50 per cent of paint business is house paint with a 25 per cint profit margin the dealer makes a profit on this of $S|Z.SO yearly, and on the other half of his business, which is spe- cialty sales, makes a profit of 35 per cent, or $432.50. - A recent survey shows that the outside of a house constitutes only 2O per cent of the paintable surface, and that the interior furnishes the other 80 per cent, so that the business in specialties should be in an BO/2O ratio. If the average dealer has the proper setup he should do a business of $500O a year in specialties along with the $1250 business in house paint and make a'total profit of $2062.50 in his paint department instead of about $750.

Mr. Peterson then gave a most interesting explanation of the merchandising program of the du Pont Company, which backs up its products with national advertising, with advertising in newspapers of key cities and advertising in local papers, and which sets up a definite merchandising prog'ram for dealers that positively brings customers into the store. The speaker concluded with a description of the qualities of Dulex, the new exterior paint developed by the du Pont research department.

Frank E. Cox, assistant sales manager of the Built-In Fixture Co.. thanked Mr. Peterson for his talk. and dealers for their attendance. He gave some specific instances of remodeling jobs which had been done recently in Northern California and which had been paid for in the old large currency, indicating that the money had been hoarded. He thought that it is a good sign when people begin to spend hoarded money, and reminded the audience that savings accounts, building-loan funds and hoarded money in the United States are estimated to amount to $33,000,000,000, and that this money belongs mainly to people who earn from $150O to $10,000 a year, so that here is a great potential market for the lumber dealer.

U. S. Plans lor Farmhouses

Washington, March 28-Twenty-three sketch plans for farmhousei are being made available to farmers and rural residents by the Bureau of Agricultural Engineering of the U. S. Department of Agriculture. This is one of the results of the President's Conference on Home Building and Home Ownership, held last fall. The designs represent research of and contributions to the work of the committee on Town an<i Village Housing.

The plans range in size from two room' single-story structures withott basements to 10 rooms, two-stoiy dwellings with basements. Most of these designs call. for wood construction. Several of them are contributions from agricultural colleges. They also represent co:rtributions fiom the National Lumber Manufacturers Association architectural staff. Two of the designs show houses that may be built a part at a time, including the N. L. M. A. "Ilouse for the Growing Income," a model of which was on exhibit and attracted widespread attention at the conference. Convenience, comfort and pleasing appearance were the criteria on which the houses were selected.

In announcing distribution of these sketch plans, the Bureau also called attention to collateral material available, such. as Farmer's Bulletin 1132-F on planning the farmstead and Bulletins 1448-F on labor saving equipment for the home and 1326-F on farm plumbing.