Vote S-Point Program Enabling Dealers to Become Local Building Headquart ers

In the most beautiful setting ever picked for a National Retail Lumber Dealers Association meeting, the most cooperative, effective and progressive program was planned and passed bY tl.re board of directors, November 6-7-8, during hardr,vorking sessions at the Broadmoor Hotel. Colorado Springs, Colorado.

Highlight of the Tuesday, November 6th morning session was a discussion of current problems facing the industry in dealing with the Office of Price Administrasecretary-manager of the Associa-

It was brought out that there were four major problems confronting the industry in its dealings with OPA:

1. The problem of several years' standing of securing revisions of lumber price regulations to correct inequities and'to relieve the retail industry from hardships being suffered by reason of present regulations. Among these problems were those involving remanufacturing charges, green weights on lumber and shingles, plywood markups, a recog.ritio.r of the dealer's function in making direct mill shipments, the question of over-weights, and similar problems, all of which have resulted in an inability on the part of the retail industry to realize the markups allowed them by RMPR-215.

2.Theproblems developing from the release by the Office of Price Administration of its "major program to control the .costs of construction." It was pointed out that thiq program had been generally opposed by the retail lumber indurtty and by many other groups concerned with the distribution of building materials. The industry took the viewpoint that while already operating under twenty-three price control orders which were sufficiently strong to win th. *ur, it was difficult to understand why these existing controls would not be sufficient to establish the peace in the months between now and July 1, when OPA expires'

In the field of lumber distribution, OPA's program' apparently, is to establish community prices on lumber in .iti., of more than 10,000 population-such community prices to be fixecl on a dollars-and-cents basis on the more .o-rrron items going into construction' Community prices would, in effect, give lumber dealers a two-price system in thai they would be working on the common construction items on dollars-and-cents ceiling published by OPA and on rhe other' lumber items they would be pricing on the basis of the markups provided by RMPR-215' k was' however, pointed out that OPA proposed, in the development of the community pricing on lumber, to instruct their regional administrators that such prices when established should not deviate more than 2% up or down from the price that would be established from utilizing the formulas provided in RMPR-2l5.

It was likewise emphasized that to date the OPA had taken from June 27 until the date of this meeting and had not yet worked out a satisfactory community price ceiling for the pilot area, Chicago, Illinois.

Going beyond OPA proposals to establish community prices on lumber, as well as community prices on other building materials which are being currently developed in many communities, the so-called lumber distribution plans in OPA's major program apparently" embraces a determination by the OPA to apply profit control to the retail industry inasmuch as OPA definitely states that it will make continued analysis of margin data and reappraise the margins from the retail sale of lumber on the basis of expected high volume of sales. To this philosophy, the industry records itself as being unalterably opposed.

It was indicated that as a result of hearings before the Small Business Committee of the Senate, it seemed likely that OPA proposals to Put prices on existing real estate and new houses would not be acceptable to the Congress.

3. The third matter of importance and currently under discussion with the Office of Price Administration is their policy of absorption to be applied at the retail level in the lumber industry. Although lumber manufacturers might neecl increases in mill price ceilings to encourage labor to produce more lurnber, this will not necessarily immediately afiect the supply of lumber and in any event, mill price increases should not be arbitrarily taken from the lumber dealer. It was further pointed out that the retail lumber dealers had, over a period of years operating under price control, been absorbing remanufacturing costs, extra freight .on green lumber and shingles, additional costs involved in the purchase of LCL shipments, and other costs which were not a part of customary or usual industry practice'

The board of directors went on record as being opposed to the principle of cost absorption in view of increasing cosis of operation in retail yards and other costs already being absorbed as has been outlined.

4. And iourth, the discussion brought out that the present application of wholesalers for an 8/o markup on mill ceilings rvhich it is proposed that retail lumber dealers absorb, would be a reversal of past practice where-the wholesalers have always taken their commissions in the form of discounts allowed to them by the lumber mills. Doubt was expressed that the granting of this markup to wholesalers would increase the volume of shipments to retail yards.

The Board of Directors of the NRLDA supported the position of the Retail Advisory Committee to OPA in opposition to the granting of a wholesale markup at the ex- pense of the lumber dealer, and agreed that it would be far better to wait out the present period of scarcity of two to four months and rely on lumber after that time flowing through the normal channels in the usual way.

The meeting on the first day was opened by an address of welcome by M. D. Bradfield, president of the Mountain States Lumber Dealers Association. host to the National Association.

President S. L. Forrest, Lubbock, Texas, in his annual report keynoted the meeting by stressing the fact that the retail lumber dealer would be judged by his ability to serve customers, and that the industry as a whole would rise or fall on this basis. He emphasized the importance of preparing to serve the ,community through better yard layouts, handling methods, employee training, cooperation with manufacturers and a more effective means of keeping in touch with national legislative and governmental affairs through the chbnnels afforded by the National Asso,ciation.

"The period just ahead is perhaps the most critical in the life of our industry," he said.

Irnplemcnting his remarks, President Foirest appointed a Nationai Affairs Steering Committee and discussed the much larger National Affairs Committee now in the process of being formed. The purpose of this 4@ or 500-man National Affairs Committee which will embrace every ,congressional district in the United States, is to be able to quickly obtain a grass roots reaction on every piece of legislation or proposed legislation affecting the retail lumber industry.

In connection with dealer-manufacturer cooperation, President Forrest appointed a lumber dealer liaison committee to meet with a like committee whi.ch has been selected by the Producers Council to work on problems of mutual interest.

Of major importance to the industry was the S-point program which has been under discussion for the past year, and which was presented to this meeting by Robert A. Jones, secretary-manag'er, Middle Atlantic Lumbermen's Association.

The S-point program consists of a pledge br platform of service in which the lumber dealer subscribes to the following: within the limits of his ability and the area of his operation, he will provide an establishment which for his customers will integrate and correlate the various materials and elements within the building industry necessary to home or farrn or commercial .construction. This does not mean that he will necessarily enter the architectural, financing or contracting fields, but that he will attempt to correlate these activities and his own in such a manner as to make it easy for the customer to buy or remodel a home or other structure. It is pointed out that if these activities are correlated through the dealer, the lumber dealer will rnaintain control of the sale.

This part of the S-point plan, the pledge or platform of service, to which lumber dealers subscribe, was promptly adopted by the board of directors.

The second point presented was the modernization of lumber yards to include better and more efficient handling methods and,better display and showroom facilities. In a recent survey, 75/o of the dealers of the United States have already indicated their interest in remodeling their yards and incorporating adequate display space and equipment.

The third point was the development of a yard personnel training program which would be put into effect for the training of .new yard employees, and as a refresher course for older employees.

The fourth point consisted of the establishment of a specialty sales department for the handling of such application materials as roofing, siding, insulation and other specialty equipment such as household electrical appliances.

The fifth and one of the most important points embraces cooperbtive planning and promotion by liaison committees of the National Association and manufacturing groups such as Producers Council.

As an example of what cooperative planning can mean to the dealer and the dealer's customer, Mr. Jones spoke of the Modular System which if adopted by manufacturers of all types of building materials would make the various parts or elements within a building fit with a minimum of waste. He pointed out that the Modular System has been adopted by many millwork manufacturers, brick and tile, glass, wallboard and in'sulation manufacturers, and most important of all the architects.

To illuminate the need for adequate display space and showroom equipment, he pointed to the trend which indicates that in the future most customers in the lumber yard will be women.

During the meeting of the 6th, H. R. Northup emphasized, "home.prices will seek normal levels once the demand is lessened through new construction. There is a demand for homes, but once building begins the pressure will be lessened and prices will seek normal levels. The philosophy

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