7 minute read
Selling Up to a Standard and not Down to a Price
By M. L. Cooper, Plan Service and Tade Extension Depannent, Hammond Lumber Company
M. L. Coope
It is not our intention to lay down any set of rules to loid collars, and buys his sugar, salt and flour in wooden bargovern ttre conduct of the lumber and building material rels; or the woman who is cont€nt to wear a long skirt, business in general ; neither do we assume to tell you gen- quilted petticoat, steel-ribbed corset or leg-o-mutton- sleeve tlemen how to run your individual business. If from what waist at a profit that will permit him. to-expand his busiis said, however some one gets a cut that he can elaborate ness. on and by so doing increase his volume of business and at We are not ridiculing this type of people; far be it from the same ti?ne maintain a margin of profit sufficient to our intention. 'We are talking from a-strictly pro'fit making net a fair return on his investment and- a fair recompense business standpoint. And we repeat again tliai these p.opt! for his labors then the mission of this little talk will have can not be sold at a profit because their only standlrd is been in a measure fulfilled. price.
There is one item of merchandise that can always be sold at a profit, it matters not whether you are merchandising shoestrings, automobiles, clothing or threshing machines, provisions, radios, dwelling houses or what not. And that item is more than superior qualities of materials; it is more than superior class of workmanship in fabricating these materials into the finished product.
'We venture to say that in practically every large department store in the country there are tucked awav shoestrings that are made of the finest silk tape that #as ever woven and tipped in the highest class manner; yet because these strings are forty-two or forty eight inches long they can not be sold at a profit, while inferior shoe strings both in material and workmanship that are twenty-seven inches long are being sold by the thousands at a high margin of profit. Why?
At one time or another each one of you have heard statements regarding something like this "The 19- model put out by that automobile company was the best car they ever put out. It had the best engine under the hood; its chassis was the most rigid, it steered easiest; the upholstering was the highest class in both material and workmanship," and so on. That has been said of practically every automobile that was ever manufactured. yet what dealer would be foolish enotrgh to fill his saleiroom floor with I92C--1923 models of the best car ever made and expect to sell it at a protfit? Why?
The finest English broadcloth, Scotch tweed or American serge that was ever woven if made into a cut-away or Prince Albert style coat or full pegged trousers can not be sold at a profit.
A pair of shoes made from the finest side of leather that was ever tanned if made into pointed toe-congress top gaiters can not be sold at a pro.fit.
The finest piece of silk that an), worm ever spun if patterned into a leg-o-mutton sleeve waist can not be solil at a pro6t, Why?
We challenge any merchant in any line to sell his goods to the man who is content to wear a cut-awav or Prince Albert coat, full pegged trousers, congress top ihoes, cellu-
What is this item or characteristic then that can be sold at a -profit. It is style. CaIl it what you will; fad*pass- ing fancy or what not. Nevertheless it is that standard th.a-t appeals to that portion of the buying public who is willing to pay the price that makes buJiness expansion possible. It is the man who wears the 1928 cut of -clothes and shoes; drives the 1928 model auto; listens to the l92B radio and the woman who is attired in curr.ent fashion who pays the price that nets a profit.
- Naturatly- the phase thaf interests this group most is" the type of .home that appeals to these people who pay the price. Are we trying to sell them thi cutaway, cbng-ress top, full pegged type? Are we trying to appeal to the up-to-date riloman of today with the type of home that was in vogue when women were wearing shoes that required a forty-eight inch shoe string? Aie we depending- too mu,ch on a type of builder who learned his trade when flour, salt and sugar were sold in wooden barrels ? He is the best mechanic in the community no doubt and buys. the highest quality materials yet he can not sell his servicls at a profit, because he lacks that item or characteristic that lppeals to that portion of the buying public that makes. for bigger business.
Some months ago we were calling on a lumberman and talking over business conditions. HC stated that his volume was quite satisfactory but that the margin of profit was not, sufficient to pay a fair return on his investmtnt and leave. an1'thing for his labors.
While talking, a man and woman entered the office. We. noticed they had a small plan with them. Stepping aside. we soon learned that they had been in previous-iy and left a list to be figured. The dealer produced this liit and quoted them $756.0O. -The reply he received was ,'My, my. you are'way out of line! I would like to give you mv b-usiness; in fact, would give you a little priference, but. there, is, too much difference."
In reply to the dealer's question the prospect stated ,,Oh,. around ten per cent.'
How did this dealer meet the situation? Did he seltt up to a standard or down to a price ?
Without giving any consideration to the plans or type of building or analyzing the list, he suggested number two dimension and boards, lower oak floors and cheaper front door and front windows. Bv this method he reduced the price to $710.00.
"That's a little more like it,"'was the reply he' received with an added, "I'll see you again in a few days," as the man and woman left the office.
"Well I suppose my competitor will cut that price five percent and take the business," was the dealer's comment.
"We don't know what your competitor will do but were we your competitor we would figure on selling that couple at least $800.00 worth of material for that home," was our reply.
We rvere told in no uncertain manner that we should learn something about the lumber business and that a l,ot of such would-be high-powered salesmen should get in the business and learn something and a lot more along that line.
Our reply was, "fs that your car," as rve pointed to a nice looking sedan standing outside the office.
He answered in the affirmative so we offered to sell him a set of the highest class balloon tires on the market and quoted an exhorbitant price.
Naturally he thought the price high so we used his line of selling by telling him that the inferior type of car he drove did not warrant first class tires. We have "seconds" that are plenty good enough for such a cheap car. Even suggesting that some rejects that we had re-treaded would be the thing.
Then asked him what his feelings were toward a salesman who would ciiticize his judgment in selecting an automobile by finding fault with it.
Mr. Lumberman that is what you did to those pros- pects. They no doubt had a plan that they had worked on for months. They had spent their evenings studying it. Nights they had dreamed of it. To their mind that plan incorporated all the desirable qualities of any horne without any of their defects.
Then you deliberately tell them that any old junk is good enough as they would have a cheap outfit when it was completed anyway.
You could not sell that woman a twenty dollar gold piece for fifteen dollars.. She is saying to her husb=and right now, "the idea; that fellow telling us that his old second-hand stuff was good enough for our have no more to do with him. house." Wetll
With the dealer's permission we took the alyzed, it, and rather s,urprised him by asking how this man and woman were dressed.
He admitted that the man had on up.to-d That the woman did not have on a long skir.$j the floor and that thev rode awav frorn current model auto.
Knowing this, I\{r. Lumbermen, why did sell them building materials that we.re in vo lunged autos thrived ? list and anif he rioticed ct to two-
Why did you not take that plan:r and showthem by comparison that the front door spe#fied in thdir list was not in keeping with their windorvs iird woulildi:tfact from the value of the home. That hardwood finish was necessary in the living and dining room to carry out their scheme. That they were not using eight inch base and four and a quarter round edge casing in the better houses today.
That they should use a better grade oak floor in the dining and living room. There is a hundred ways you could talk that home up to a standard but only one way to talk down to a price.
As stated at the beginning the mission of this talk was to show by illustration the important position the building ma-t-erial merchant should occupy in his community. We believe there is no occupation, profession, vocation, trade or calling that is so potent with possibilities of doing real service that of the real home selling, building mal terial merchant.
If the homes in your community are not up to the 1928 styles in other lines of merchandise then you are not measuring up to your responsibility, and we ask you to take this one question home with you:
Why .d9. ro many lumbermen talk intelligently with their neighbors about the latest in automobiles, -radics, clothes, golf equipment etc., but when asked for real up- to-the-minute advice regarding modern equipment for a home refer that neighbor to some one who learned all he knows about home building when side whiskers were a facial adornment, hogs pastured on the public hiehways and who says the 1914 flivver he is driving: w-as tIe beit car ever put out by that factory?