Complete Price Lists, Definite Estimatin$ Rules and Standard Trade Practices are Necessary to the Modern Trade Association

By M. D. Bishop, Secretary-Manager Coast Counties Lumberrnents Association

Complete price lists, definite estimating rules and standard trade practices are to the modern trade assgciation what a rudder is to a ship. It is hard to conceive an association of any proportions succeeding, for any length of time, without these essentials.

Some years ago it was unlawful to make any attempt whatsoever toward stabilizing prices or to establish trade practices of any description. However, in 19@ our wise lawmakers saw the folly of this ruling and amended the law. As we interpret the amended statute, it now provides that organizatic:m and price fixing are not injurious to public welfare as long as no more than a reasonable profit is procured.

The tendency in the past was to charge the honest, reliable contractor the straight counter price and take business from the "fly by night" contractor, the "peddler" and "out-of-town shopper" at a few dotlars under, what they told the dealer was his competitor's price. Dealers always knew that this practice worked a hardship on everyone. They knew how to stop it but could never get confidence enough in one another to start formulation of the necessary plans. In horse and wagon days, the incentive of dealers to drive their nags into the other fellow's territory was not as great as it is today, with high speed trucks. Consequently. modern transportation facilities has had much to do ' *ltn dealers uniting, against outside invasion, if for no other reason. Now that they have become acquainted and have delved into the industry's problems as a unit, they see where many economies can be effected.

fn one particular section of the coast territory the dealers have become very proficient in the art of protecting and stabilizing the building material business. They have reduced the prices of many commodities and still are making more profit than they did prior to the time when they got together and started to use concentrated effort in the conduct of their business.

The first thing they did was to take advantage of quantity discounts by pooling their purchases. The next saving they effected was by reducing sales expense. They made further savings by eliminating bad credit risks. The "fly by night" contractor and "peddler" now pay, at least, as much as honest, reliable builders, thereby eliminating the selling of hundreds of "cut" estimates during the course of. a year. More economy and better service is resulting in the consolidation of delivery equipment. Considerable volume is added through the stifling of out-of-town competition-another reduction in overhead. Free plan service has been eliminated-a big saving. The net result is-the dealer makes more money-the legitimate contractor is better off -the home owner pays less for his home-no one is hurtthe law says nothing as the dealers get only a reasonable profit, and are mighty well satisfied with it as compared with the old red ink days.

A unique book has been adopted by a large group of building material dealers. It is a letter size ring binder and is equipped with plainly printed colored tabs as follows: LUMBER (orange), MATERIALS (pink), MILLWORK (yellow), HARDWARE (green), PAINT (blue), TRADE PRACTICE (white), BULLETINS (pink), EDUCATIONAL (yellow). There are between sixty and seventy of these books in use and almost everything concerning the selling of building materials can be ioundbetween the covers. All of its contents are mimeographed at a central office and sent by mail to the users. Good paper is used and much care is exercised as to the neatness and arrangement of schedules and information. Corrections and improvements by all members, from time to time, will soon make this book invaluable. as it will contain COMPLETE PRICE LISTS. DEFINITE ESTIMATING RULES and STANDARD TRADE PRACTICES.