The Power of Purpose

ttTo plan without purpose is fu1ils."-$. C. Forbes.

By Ketrneth Smith, Secretary Lumber Dealers Association of Los Angeles.

The lack of co-operation between Los Angeles yards last year, plus the severe decline in lumber consumption had brought the trade to a distressing condition. 1923 was a peak volume year and it was the culmination of a widely heralded boom that multiplied the number of yards far beyond any need of normal times. 1924 f.ound less volume done than 1923, 1925 less than L924,1926 less thatr 1925, 1927 less than 1926; four years of steadily declining volume, yef about as many yards as in 1923. The result was that where the final result did show in black, you needed a spy glass to see it and in most cases the figures were so glaringly red that owners had to use sun glasses when looking them over.

There is nothing unique in what we have done. We just decided to quit talking about what used to be, to quit wailing that there were too many yards, too many boats, too many salesmen, too many wholesalers, too much low grade, too much unsold c?rgo, ahd that profits could not be bettered because these barriers could not be removed, and began thinking from where we were. Result. 'We organized all yards in a series of neighborhood groups, each represented in a central board, which represents all yards and all interests, and of which 104 of the 106 yards in Los Angeles are nol^r a part.

We set out to do two things as the foundation of our organization effort, with the understanding that whatever was necessary to attain these objects would be done. One was to develop a competitive situation that would be equitable to all interests, large yards and small yards, common yards and No. 3 yards. We recognized the present position in the trade of every one in it, and conceded his right to be there. We started thinking from the premise that they do exist and will probably continue to do so, regardless of whether half the number might be more than enough; that low-grade is carried in the market and will continue to be, and that the problem was not eradication of yards or commodities but rather how to create profitable conditions for each and every yard.

In the second ptace, we recognized that selling on price is the quicksand that swallows profits and set out to create an understanding of costs, of sound estimating practices, of uniform terms that would insure a legitimate margin of profit. We concluded that education was the most effective means of achieving our prog'ram and developed a written Standard Practice which is the guide of.271yards today; as, in addition to the Los Angeles association, it is used by all the surrounding communities, having been adopted by Santa Monica, San Fernando Valley, Pasadena, Alhambra, Centinella Valley, San Pedro, Long Beach, and Orange County.

The grade situation is our next greatest problem. Selling mixed grades that defy description, is a tremendous merchandising handicap and ure are solidly behind a program that calls for merchandising on grade just as soon as a practicable and feasible means of making it effective ca$ be worked out.

Our problem was, and still is, further complicated by the volume of low grade lumber that is dumped in on our market and the huge quantities of unsold cargo always on hand at the Harbor. To handle these last two intelligently requires close co-operation with the manufacturers and we have great hope that with the new spirit being shown in the Northwest, we will have help from that source in the effort we are making to market their product intelligently at this end.

We created in the Lumber Dealers Association of Los Angeles a permanent organization that will carry on, regardless of the vicissitudes that might beset any one part of the program. This determination of permanently continuing our effort to again control our own business is responsible in considerable measure for our unusual success.

As this goes to press, we have seven months of surprising achievement behind us. The program we are working on is cutting the water today with all sails set and looks like a sure success, but if it wrecks on some unseen rock, the goal will not be abandoned as unattainable, but instead, another program will be launched and a continuous effort made until a workable solution of .our problems is found. The force of such a purpose is a tremendous aid in its achievement. If you set out to try a given plan and then when that plan fails, throw up your hands, you may as well not have started. But if you set your objective first and then make and remake your campaign to attain that objective without ever entertaining any thought but that it can be done-then IT WILL BE DONE.