How I Sell the Completed Home

By Gerald E. Melifr, San Anlonio, Texas

(Mr. Meliff is senior member of the retail lumber firm of Melifi-McAllister Lumber Company, immediate past President of The Lumbermen's Association of Texas, and one of the most successful "modern merchandisers" in the United States, particularly successful in selling the completed home through the retail lumber dealer.)

In the spring of 1910, shortly after I had entered the retail lumber business, it was my good fortune to attend a Retail Lumbermen's Convention. It was a good Convention and many instructive talks were made. There was one statement made by a prominent retailer that impressed me very strongly-I have never forgotten it.

He stated that, in his opinion, the retail lumber industry was the least developed large industry in the United States; that it offered more room for exploitation, expansion, and advancement than any business he knew of.

The speaker was not only a good lumberman, but a thinker and a man of vision, as well. He prophesied many changes in the industry that have since taken place.

The greatest change that has occurred since I have been in the business, has been the awakening of the retail dealer to a realization of his proper place in the sun in his own community. The retailer has come to realize that he is not, and should not be, a mere peddler of boards, a buyer and seller of wood. He hds realized that he owes his community an obligation, a very definite and well-defined one, and on the fulfillm.ent of it rests the happiness and contentment of his neighbors. He has realized that he is obligated to see that those in his community are properly housed, which means a HOME-happiness, contentment, and real American citizenship.

It is his duty to see that people do not bver-buy; that they can pay for their homes without too great sacrifice; that the loan on the home, if there is one, is properly and permanently financed; that the style of architecture is good and suitable for the community in which the home is to be built; that the proper materials are used in their proper places; that the construction is what it should be; and last, but not least, that it does not cost the owner too much money.

With these thoughts in mind, has come the so-called "modern method of merchandising" in the retail lumber industry. This, in a few words, in my opinion, means "the selling of the completed home," the most satisfactory and profitable form of selling, to all concerned, that has yet been developed in the industry. An amount in excess of. X)% of our own total sales are derived from this method of selling. The prospects are secured from the following sources, in the order named: lst. Tips from satisfied customers, and friends of the Company.

?nd. From advertising:

3rd. From contractors doing business with the Company.

On receipt of a prospect, one of our salesmen calls. lf found to be a real prospect, who has not already practically closed with one of our competitors, salesman established point of contact; endeavors to sell the firm to prospect; ascertains requirement and desires; secures information that can latef be used to get detailed data on prospect's ability to pay. If the prospect has no definite idea as to size of home and design, location of lot is secured, survey made, and tentative floor plans and design submitted. Salesman works prospect until definite and satisfactory plan has been perfected, that he knows will not exceed in total cost, the maximum figure that has already been established. When this has been accomplisled, plans and specifications are turned over by us to competent contractors dealing with us, and definite figures obtained, we recommending in most cases, that contract be let to the lowest bidder, if the price is satisfactory to all concerned.

Salesman, being familiar with the prospect's ability to pay, location of lot, and appioximate cost of the house, has already made necessary loan arrangements, if a loan is desired. In all cases, the plans and complete specifications are prepared under our own supervision, and are naturally written to conform with our own stocks.

The contractor's first contact with the owner is at the time the job is signed. The contractor has been sold on this form of selling, as he has seen that his yearly outptlt can and has been materially increased, if he is relieved of the burden of selling. .He looks to us to keep him busy. He is obligated to us and we are not to him . . a happy solution of the contractor's problem.

We are not in competition with anyone on a mere bill of material. We have furnished the prospect with competitive bids on a home of our (the prospect and ourselves) creation. The frame of mind that the prospect is in, is obvious.

This system is used on all homes up to $9,000 total cost. When the cost exceeds this figure, we recommend that the owner employ an architect, and submit names to him of competent architects, if he has no choice. By this recommendation, we are permitted to submit names of contractors to figure the job, and of course, submit only such contractors' names as are doing business with us.

An outline of our organization is as follows:-

Approximate net annual sales, $500,000.

Average investment in merchandise, $6O,000.

We maintain a down-town ground floor sales office, and display room. In this office are maintained samples of all materials we handle, and a complete plan book system; two salesmen working out of this office, on a commission basis. 'We maintain and operate a Roof Application Department, which applies all types of roofs; rve issue our two-year guaranty on materials and labor on all contracts.

We have established connections for handling any loan that should be handled. We carry in stock materials of qvery kind that go into a home, with the exception of plumbing fixtures, heating plants, electric wiring and fixtures, and wall-paper.

Business is as good as we make it.

During tt " ',,"""tiof;:lt#'lfrlT;ond, the san Francisco office of the Santa Fe Lumber Co. is again graced by the presence of Mrs. Vernon Bernstein, nee Miss Katherine Grant, who for some seven years prior to her marriage last February so smilingly greeted friends and customers cf "Gus Russell's Outfit."

A considerable celebration was held in honor of her return, the office being decorated with bunting, flowers, and photos.