Trade Prornotion

By Frank Burnaby Sun Lumb er Co., Beverly Hills, Calif.*

'frade Promotion in the millwork and lumber industry involves the creation of a greater desire on the part of the public to own homqs, income property, or other buildings; and to use as much as possible of our particular merchandise in these buildings. It also involves the creation of a greater good will toward our produ.cts and ourselves on the part of architects and builders, who to such a great extent control detail building specifi'cations.

Such a program demands just two things-the ability and willingness on our part to produce a worthy product at reasonable cost to the consumer; and then advertising, more advertising and still more advertising.

Promotion of Trade means little to us if we do not first promote co-operation among ourselves to a degree that guarantees a fair profit to ourselves on the goods that we sell and to a degree that enables us to conduct a trade extension or advertising program as a group rather than as individuals.

My first recommendation, therefore, is that some one of several proven price-stabilizing plans be put into effect, and I strongly recommend the so-called Allotment Plan as the most simple and inexpensive as well as most effective plan ever devised for maintaining prices, correcting credit abuses, discouraging excessive sales effont and over-service; also for building up group activities of all kinds.

Briefly this Allotment Plan allocates to each operator a certain percentage of each month's business in a given'community, with the understanding that those operators who sell more than their allotment pay into the association an agreed percentage on their over-sales, and those selling less than their allotment receive this agreed percentage on their under-sales. You will at once see that this agreement guarantees that no member will make a sale that does not guarantee him sufficient net proftt to enable him to pay out in cash this agreed percentage on his over-sales, regardless of the volume of business available for the group.

You will also see that this arrangement automatically discourages the extension of risky or long-time credits and encourages group trade promotion, rather than ,competition with each other, either from the standpoint of price or volume. Complete details of this plan are available to anyone desiring the same.

The matter of promoting the good will of the buyer toward the seller's association activities is a possible activity which is undoubtedly very badly neglected by most trade associations that we as individuals and as an association frankly explain the purposes and activities of our organization to the Architect, the Builder, the Building-Loan institutions and others interested in building.

The ideal association, you will all agree, would be one that not only developed good will and real profitable cooperation among its members as well as promoted profitable new business, but also had the good r,vill of the buyer to an extent that materially reduced or altogether eliminated the tendency on his part to beat down our prices; make us carry his financial burdens and over-service him all along the line.

Remind them that open price ,competition means poorer mer,chandise; less service to the buyer; encouragement to unscrupulous merchants, etc., and results in a general disorganization of the building trade that hurts everyone connected with it, as well as discourages all sorts of new building. We should also tell them that stable prices result in a better quality of merchandise, more service to the buyer and greater effort on the part of each dealer.to merit his full share of business.

Trade Promotion through group advertising directed either to the builder or to the public can employ a large number of channels such as centrally located display rooms, distribution of literature or samples, billboards, newspaper advertisements, radio, etc., any one or'all of which have unlimited possibilities and would pay handsomely if used with a reasonable degree of thought and always with the understanding that a profitable selling price would be demanded.

I like the idea of 'centrally located display rooms, displaying high class woodwork, financed by groups rather than individuals, available to all participating dealers and, of course, to architects, builders and the public. I also believe radio and newspaper advertising would pay well, but after a recent study of advertising costs as well as probable results, I strongly favor the use of outdoor billboards as the best medium per dollar in cost, for our type of advertising.

I found that for an expenditure of from $1,50O.00 to $2,500.00 we can employ from one to two hundred billboards, the cost, of course, dependent upon the number of boards, their location, etc. These boards would be about 12x25 f.eet in size, scattered all over the State, many of them illuminated at night, and advertising copy to be changed every month. or less often if we want to economize.

The advantages of billboard ,advertising as I size up the question are many, but are principally the advantages of continuous display-large display space-color effect, and size of territory which can be covered at comparatively low cost. Incidentally, I am inclined to believe that boards placed along the highways, especially if illuminated, as can be done in many cases, are just as effective if not more so than boards located in thickly populated distri'cts, and according to figures which I have in my possession will cost much less.

It is well to support one type of advertising by the use of other types, but whether this is advisable or not largely depends upon finances available.

Almost any advertising that encouraged general building as well as promoted a greater use of interior woodwork, the chief object of this particular group, should be suppo,rted in a financial way not only by those who are interested in lumber and its allied products but by a large number of other industries that directly profit by building activity, including roofing manufacturers and distributors-

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SUGAR PINE WHITE PINE V/HITE CEDAR SPRUCE

(Continued lrom Page 26) rock and sand dealers, cement plaster and stucco dealershardwood and furniture groups-building finance institutions and various district as well as national lumber associations.

Certainly any group advertising campaign indulged in by the sash, dobr ind millwork groups should be supported by or tied in with any similar campaign sponsored by-t!.e Lumber and Allied Products Institute of Southern California and other similar groups of retail lumber men or visa versa.

I would like to suggest that instead of mentioning the name of the sponsors in the advertising copy, some slogan be employed such as "See Any Reliable Architect or Builder" for the reason that none of our associations are looking for general publicity, and few, if any, of them care to take on the responsibility that would result from direct inquiries requiring the recommendation of ar'chitects' contr'actors, finance institutions, etc., and the use of such a slogan as just mentioned would have the tendency to convey to our principal customers, the architect and builder, the thought that we were interested in promoting their good.

In summing up this whole matter of Trade Promotion as I see it, I get right back to what I said at the beginning of my remarks. Be prepared and willing to produce a worthy product at reasonable cost to the consumer; establish a price that means a fair profit to ourselves, and then group our advertising budgets and advertise until the public becomes building minded and knows the merits of the merchandise we wish to sell.

*Adilress deliaered at the Semi-Annual Meeting of Tke Millutorh Institute ol Colif ornia.

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