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DOUBLE YOUR DECKING SALES IN 12 MONTHS NAWLA WHOLESALERS SPECIAL ISSUE M A Y 2 0 1 4 The MERCHANT Magazine THE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

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May 2014 edition of The Merchant Magazine, monthly trade magazine for lumber & building material dealers & distributors in the West

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Page 1: The Merchant May 2014

DOUBLE YOUR DECKING SALES IN 12 MONTHS NAWLA WHOLESALERS SPECIAL ISSUE

MAY 2014

The MERCHANT MagazineTHE VOICE OF THE WEST’S LBM DEALERS & DISTRIBUTORS – SINCE 1922

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4 The Merchant Magazine May 2014 Building-Products.com

May 2014 Volume 92 Number 11

OnlineBREAKING INDUSTRY NEWS, EVENT PHOTOS, & DIGITALEDITION OF THE MERCHANT

BUILDING-PRODUCTS.COM

The MERCHANT Magazine

CHANGE OF ADDRESS Send address label fromrecent issue, new address, and 9-digit zip to addressbelow. POSTMASTER Send address changes to TheMerchant Magazine, 4500 Campus Dr., Ste. 480,Newport Beach, Ca. 92660-1872.The Merchant Magazine (ISSN 7399723) (USPS 796-560) is published monthly at 4500 Campus Dr., Ste.480, Newport Beach, Ca. 92660-1872 by CutlerPublishing, Inc. Periodicals Postage paid at NewportBeach, Ca., and additional post offices. It is an inde-pendently-owned publication for the retail, wholesaleand distribution levels of the lumber and building prod-ucts markets in 13 western states. Copyright®2014 byCutler Publishing, Inc. Cover and entire contents arefully protected and must not be reproduced in anymanner without written permission. All RightsReserved. It reserves the right to accept or reject anyeditorial or advertising matter, and assumes no liabilityfor materials furnished to it.

Special Features8 FEATURE STORY

HOW TO DOUBLE YOUR DECKING

SALES IN 12 MONTHS

12 PRODUCT SPOTLIGHTLATEST IN COMPOSITE DECKING

14 MARGIN BUILDERSOUTDOOR LIVING DESIGN TIPS, TOOLS

32 SPECIAL FOCUS: NAWLA• TRADERS MARKET TO CHICAGO

• GAUGING LUMBER MARKETS

• SETTING CREDIT LIMITS

• TOPPING TRANSACTIONAL SALES

• FOREST CARBON ACCOUNTING

53 PHOTO RECAPNAWLA LEADERSHIP CONFAB

In Every Issue6 TOTALLY RANDOM

16 COMPETITIVE INTELLIGENCE

18 OLSEN ON SALES

30 MOVERS & SHAKERS

31 APP WATCH

47 IN MEMORIAM

48 NEW PRODUCTS

59 ASSOCIATION UPDATE

60 CLASSIFIED MARKETPLACE

61 DATE BOOK

62 IDEA FILE

62 ADVERTISERS INDEX

THE 4 REASONS YOU’LL NEVER

NEED ANOTHER EWP SUPPLIER:. - , +* ) ( - ' +&, . &. %$#$. " +! Ā

1. COMPLETE PRODUCT LINE

3. EFFECTIVE TOOLS & GUIDANCE

2. DEPENDABLE DISTRIBUTION

4. EASY TO DO BUSINESS WITH

WHY YOU’LL NEVER NEED

ANOTHER EWP SUPPLIER:

OUR VALUE PROPOSITION 2014

© 2014 Boise Cascade Wood Products, L.L.C. BOISE CASCADE, BCI, BC FRAMER and “Great products are only the beginning.” are trademarks of Boise Cascade Company or its affi liates.

Learn more: www.bc.com/inst21

1. COMPLETE PRODUCT LINE

3. USEFUL TOOLS & GUIDANCE

4. EASY TO DO BUSINESS WITH

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2. DEPENDABLE DISTRIBUTION

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www.building-products.comA publication of Cutler Publishing

4500 Campus Dr., Ste. 480, Newport Beach, CA 92660

Publisher Alan [email protected]

Publisher Emeritus David CutlerDirector of Editorial & Production

David [email protected]

Editor Karen [email protected]

Contributing EditorsDwight CurranJames Olsen

Carla Waldemar

Advertising Sales ManagerChuck Casey

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Circulation Manager Heather [email protected]

How to AdvertiseChuck Casey

Phone (949) 852-1990 Fax [email protected]

Alan Oakeswww.building-products.com

Phone (949) 852-1990 Fax [email protected]

CLASSIFIEDDavid Koenig

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How to SubscribeSUBSCRIPTIONS Heather Kelly

Phone (949) 852-1990 Fax [email protected]

or send a check to 4500 Campus Dr.,Ste. 480, Newport Beach, CA 92660

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The MERCHANT Magazine

6 The Merchant Magazine May 2014 Building-Products.com

TOTALLY RandomBy Alan Oakes

What do you want to be when you grow up?I CAN IMAGINE nothing better than finding the right career and being extraordinarily

happy. I wonder how many of us find that. When I’m asked if I followed my dream path,I’ve always replied that I never had the imagination to know what I wanted to be; every-thing good and bad just seemed to follow on from the job before.

When I was 19, my immediate path was determined to a degree when I decided that Iwanted a car, but could not afford one. So I began looking at sales positions that offered acompany car. Soon after, I became the proud driver of a brand new station wagon, all paidfor. At 22, after getting married the year before and with a baby on the way, we needed tobuy a house. To do that, I had to up my earnings and get paid by a combination of salaryand commission. The more I sold, the more I earned. Naturally, I then needed more, and todo that I needed my first management job, so at 24… You get the idea. Of course, by 50, Iwas completely burned out. Would I swap any of it? No! But I sometimes regret that Icould not find a life balance. It took me to my 60s before I finally got it.

I am a true Baby Boomer. In today’s workplace, we have three or possibly four genera-tions working alongside each other, and each looks at the other with increasing incredulity.Interestingly, you read regularly how this industry is not attracting and retaining enoughyoung talent, and this was a topic at the recent NAWLA executive leadership conference.As the industry moves back into a growth mode, I see a number of companies are con-cerned where they will find their new leadership.

Many of the new Gen Y’ers (born from 1979 to 2002, with 70 million strong) are nowhitting the workforce in large numbers. They currently comprise about 14% of the work-force. They are quite different and have different expectations from my generation, as wellas the Gen X’ers. As a seasoned manager, I imagine it would be difficult to manage thisnew generation, one that’s incredibly sophisticated, especially technology-wise, and thatwants to work, but doesn’t want work to be their lives, like me and many of my generation.

Gen Y members are more racially and ethnically diverse, and they are much more seg-mented as an audience, aided by the rapid expansion of cable TV channels, satellite radio,the Internet, e-zines, etc. They have no compunction in changing companies or evencareers, making them difficult to retain. Indeed, they don’t expect to stay in a job long.And, because of my generation’s hire-and-fire mentality, they see no value in loyalty.

They are also very sure of themselves and their abilities, appearing to want to runbefore they can walk, disinterested in long-term projects, preferring to multi-task, and —due to how they were raised, with no downtime and one at-school or after-school activityafter another—getting bored easily. They are both high performance and high maintenance.More importantly, they possess a confidence in their own value that may not match ourview of them. We are used to a command-and-control style of management, yet they grewup differently. We never questioned our parents; they grew up challenging everything, andthey are now doing the same in the workforce, aggravating perhaps their different genera-tional manager. They love their independence and are unafraid of challenging the statusquo. They text the person in the next cubicle, when we would just get up and actually talk.

They also want great flexibility in how—and when—they work. This alone may be ourindustry’s hardest challenge. Unlike us career-minded Boomers, Gen Y wants their jobs toaccommodate their lifestyles and family life. They love working when they want to work,enjoy telecommuting, or feel they’re entitled to the corneroffice after six months. In the end, they want a place to showtheir creativity and independent thinking, where they canwork collaboratively and with great flexibility. After 9/11,they saw that life can be short and should be valued more.

I deliberately framed this column with a “we”/“them”slant, since it’s become clear there is a divide. This is ourfuture. Every company will have to determine what it willor will not do. Many companies will have to change.According to a recent survey, 60% of companiesare experiencing generational divide, and 70%of older employees are dismissive of youngeremployees and their abilities (and, I suspect,the other way round, too). Somewhere thetwo must meet and find an “us.”

Alan Oakes, [email protected]

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How to double yourdecking businessin 12 monthsON BEHALF OF the North American

Deck and Rail Association, Irecently presented a talk to a largegroup of independent lumberyards onhow to double their decking businessin 12 months. I used four case studiesto illustrate the diverse thinking andactions that defined winning strategiesin four very different dealer scenarios.Each one had seemingly insurmount-able challenges.

Dealer 1 had a good location, but itwas on a busy road and was hard tophysically access. Exterior signageand displays are not permitted. Thesales team was initially not focused onthe category, and the store was not

FEATURE StoryBy Bill Ross, Fiberon

larger, stronger, multi-yard companiesthat invested heavily in advertisingand had sales teams that were prettygood at selling decking.

Dealer 4 was located 20 miles out-side the key population center. It had aremote location on a back road, with asmall interior space and limited yardarea.

In spite of the challenges, eachdealer achieved success that dwarfedthe topic of doubling their deckingbusiness. What did they do? How didthey beat the odds? What were theirstrategies and tactics? Did they incursignificant incremental costs? Whatsynergies did they enjoy? What rela-tionships did they leverage? And—thereal question from the room—weretheir successes reproducible so otherdealers could do the same?

In reviewing the success of the casestudies—each so different from theother, the first and the third exampleswere the result of developing and exe-cuting well-formed plans. The successof the other two companies was theoutcome of an evolutionary process, amodicum of luck, and a lot of hardwork. At first glance, the only com-mon thread was the category in whichthey competed and that they enjoyedenviable success. But, the different sit-uations, the dissimilar circumstances,and the varied approaches did havecommon themes, and because of thatthey can be replicated.

Using the framework of theConsumer Relevancy Model exploredin The Myth of Excellence: Why GreatCompanies Never Try to Be the Best atEverything (Crawford and Mathews),

BEST-IN-CLASS dealers start selling the dream at the front door with displays that go way beyondthe functional. Photos by Bill Ross, Fiberon

consumer friendly. Merchandisingwas uncoordinated, displays were notupdated, and it seemed to be therepository of every deck and rail dis-play in existence.

Dealer 2 shares a physical parkinglot with the nation’s largest big boxretailer of building materials. If thatwasn’t enough, both stores sold manyof the same decking and railing prod-ucts, and the big box had lower priceson several of those core products.

Dealer 3 was a small stand-alonedecking retailer. It was visible fromthe interstate, but was a destinationlocation and far off the actual accessroad. The store was surrounded by

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SELLING ACCELERATES once inside the store. There is no mistake that decking is a central focusof this retailer.

the diverse paths to success in theirdissimilar circumstances could beclearly seen, along with the patternsand competitive advantages uponwhich each built their successes. TheConsumer Relevancy Model statesthat every commercial transaction hasfive defining attributes: price, access,product, experience and service.

The book refutes a widely heldbelief that great companies are orshould try to be great at everything.The research exposes that greatness inall five attributes is confusing, illogi-cal and unprofitable. The sweet spot ofgreat companies, regardless of theindustry, is that they dominate in oneattribute, differentiate in a secondattribute, and target industry par as thegoal of the other three. The ConsumerRelevancy Model explains how subtlebut defining differences in strategybetween similar companies (e.g.,Walmart and Target) result in unques-tioned brand superiority within whatseems like the same space.

None of the four case study compa-nies were great at everything, but theydid each dominate in one attribute, dif-ferentiate in a second, and were atindustry par with the other three. Mostimportantly, each company stood forsomething. They knew what that wasand they conveyed consistent messag-ing to internal and external customers.Their successes, whether the result ofa carefully crafted plan or the outcomeof evolutionary effort, clearly fit intothe Consumer Relevancy Model.

Let’s dig a bit deeper into the deal-er that shares a physical parking lotwith the large national retailer ofbuilding materials and what that dealerdid to enjoy unprecedented success. Ifwe were to summarize the strategythat resulted in success, in light of TheConsumer Relevancy Model, it mightlook like this:

Dominate – AccessDifferentiate – Product Industry Par – Experience, Price,

ServiceThe dealer dominates in access, dif-

ferentiates in product, and operates atindustry par in experience, price andservice.

Access. Instead of thinking of thebig box as stealing traffic, they viewedit as raining potential customers uponthem. If the customer who traveled tothe common parking lot could beenticed to visit them after leaving thebig box, they would be leveraging ahigh volume of traffic that they couldnever afford to buy themselves. To do

this, the dealer positioned a large,highly visible sign on the side of theirbuilding facing the competitor. It read,“The Deck and Railing Experts.” Thetactic is similar to the cartoon where amega hardware store moves in next tothe mom-and-pop store. The megastore sports a really huge “Sale” signon its facade, so the mom-and-popstore places a large red arrow and,alongside it, the word “Entrance”above their door. The strategy workedwell and traffic was strong.

Product. Both retailers stockedidentical product lines. How did thatprovide an opportunity to differenti-ate? Rather than see this as an insur-mountable obstacle, they saw this as acompetitive opportunity.

Despite carrying the same product,the big box retailer was limited, com-petitively, in several ways. First,because of space, the big box couldonly offer one color in stock. Second,and importantly, because of aisle sizeand the fact that everything had to fitinside the store, it could only invento-ry decking in 8’, 12’, and 16’ lengths.The big box did have a competitiveprice on the one color it had in stock.The 8’ and 12’ decking were loss lead-ers, which created an illusion of ultra-low pricing. If you looked beyond theloss leaders you would find that the16’ decking in-stock was about thesame in both stores, while the specialorder 20’ decking, fascia, riser andrailing materials were a lot higher-priced. The independent retailer alsostocked two other colors that the bigbox had to special order and chargemore for.

Experience. The dealer, with helpfrom its suppliers, built attractive out-door displays on an unusable slopedhill. Each display was well-appointedwith railing, lighting and signage.They were attractively designed andinviting with furniture and fire pits.Consumers didn’t have to imaginewhat products would look like, theycould see completed projects.

Price. They chose to not competeon a per lineal foot basis, which wouldforce them to explain the competitor’sloss leader strategy. The dealer con-veyed their pricing on a per squarefoot basis, using a 20’-by-20’ deck astheir model. They showed both stores’material lists and retail pricing, side byside. This merchandising of pricingpositioned the independent as compet-itive to lower on decks that used 20’decking and did not use 8’ decking.

Service. The independent retailer’ssales staff was well trained on deckproducts and deck design. Theyinvested with manufacturers in semi-annual training events for staff andbuilders. Local building inspectorswere invited to teach code basics, per-mitting process, etc., to the sales team.They were equipped to demystify theprocess, they could help a d-i-yer suc-cessfully navigate the entire process orput a homeowner in contact with aprofessional deck builder who couldexecute the entire process.

They leveraged both the strengthsand the weaknesses of their competi-tion in their own favor. This was anevolutionary process for the dealer,but in retrospect, the reason for itssuccess is clear. The independent sells

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20 times more decking, railing andaccessories than the big box store.Talk about being given lemons andmaking lemonade—this dealer ownedit. Each of the other case studies is ascreative in thinking, but pragmatic inexecution—and equally successful.

So, how would you go about dou-bling your decking business in 12months? It requires, first, a deep self-evaluation. Ask yourself how commit-ted you are to success. If you thinkyou are 110% committed, then thelessons of toward, to and through willmake sense. They were taught to meby Jesse, my son. That I learned thoselessons playing disc golf is not impor-tant; ball golfers have learned thesesame lessons.

Toward. Toward lacks focus. Itattempts, but it is not committed. Itsefforts are merely in the general direc-tion of a goal, but has no defined goal,and relies as much on good fortune asskill. This is the effort of the masses.

To. To is focused. The vision isclearly upon achieving the goal, and itdepends on skill, not luck. It strivesfor success, but it is not fully commit-ted and too often falls just short at thevery moment of success.

Through. Through accepts the riskof overshooting, but will not riskfalling short of the goal. Throughnever falls short. Through is the effortof winners.

If you are not 110% committed,find another area in the businesswhere you can apply that degree ofcommitment.

What separates you from yourcompetition and far greater successthan you are currently enjoying? My

experience suggests it’s much lessthan you think. I am reminded of thedifference when the temperature ofwater increases from 211˚ to 212˚. Itflashes from liquid to gas and increas-es 1,600 fold in volume. One singledegree makes all the difference. Thereis a tipping point. To double yourdecking (insert any category) business,you must fully commit to winning andseeing it through. You must shootthrough your goal.

What’s the first step? Deeply eval-uate the marketplace in which youcompete. Why deeply? Because it’stoo easy to fool yourself and find theanswers you already believe are thetruth. Deep, honest evaluation asksyou to assume nothing as a given, butto ask the hard questions and to listen,to understand and see with new eyes.

Who are your current customers?How strong are your relationships?Really, how do you know? Who isn’tyour customer today that you want tohave buying from you? How strongare they with their current supplier?Why aren’t they buying from you? Doyou know what they really think aboutyour business? Who are the competi-tors? What are their strengths andweaknesses? How do they see you?Where are you weak and strong? Doyou have the right products? Are youconfusing customers? Are you buyingthe best way? The list goes on…

Are you able to ask and listen to thehard truths of why they are not doingbusiness with you? Are you able toelicit, receive and welcome criticism?Will you allow yourself to see your-self through the customer’s eyes?

A deep market analysis is followed

by a willingness to see things as theyare in the eyes of others, then to get infront of the right people, ask the rightquestions, and listen for the truths(opportunities) in their answers. Thiscan be time consuming if you are deepin the fray, but it can be done.

There are numerous professionalresources to help you develop yourplan. Some are free. Manufacturerscan be a good resource for free localmarket information. Informal cus-tomer councils can provide greatinformation. Look to NADRA as aresource for higher level data. Thereare market intelligence resourcesavailable through a number ofresources like Principia and Freedonia.Increasingly, there are third partyexperts like Lanies LBM Solutionsand others that have taken this exacttopic as the 100% focus of their com-pany’s mission. This full presentation,including the case study, is availableupon request via GoToMeeting.

I’ll finish with a story about LarryWalters, one of my personal heroes.Larry was a truck driver living inCalifornia who always dreamed of fly-ing. On July 2, 1982, Larry finally didwhat he dreamed of for so long—hewas flying. We first found out abouthim when a plane flying to LAXreported seeing something flying inthe approach corridor that was notsupposed to be there. A report fromthe crew of a second plane had theFAA scramble aircraft to investigate.It was Larry Walters. He had attached43 helium-filled weather balloons tohis aluminum lawn chair. He was alsoequipped with a BB gun, a CB radiowith which he maintained ground con-tact, a couple of peanut butter andjelly sandwiches, a six pack of beer,and a parachute. He heard all the rea-sons why he couldn’t fly and ignoredthem, completed extensive planning,and, with unconventional execution,accomplished his dreams.

Upon landing (and as he was beinghandcuffed), reporters asked him if hewas afraid. He replied, “Yes, wonder-fully so!” When asked if he would doit again, he answered, “No!” Andwhen asked why he did it, he replied,“You can only dream about somethingso long. Eventually you have to decideto do something about it.”

I invite you to share your storieswith me. Good selling.

– Bill Ross is v.p. of sales for Fiberon,New London, N.C., and president of theNorth American Deck & Rail Association.Reach him at [email protected].

SUPERIOR MERCHANDISING of high-margin accessories encourages the selling of high-endaccessories and the whole job.

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The latest in composite decking

Not surprisingly, Zambaninibelieves that composite decking willbe the first choice for homeowners. Tosimplify the decision process, thecompany has reorganized its productsinto three distinct groups—Select,Enhanced and Transcend—allowingconsumers to choose the product thatbest meets their outdoor living needs.

According to Zambanini, compos-ite decking is also popular with con-sumers who care about sustainabilityand the environment.

“Composite decking provides thelook and feel of real wood, but with-out the environmental impact, makingit the ideal choice for today’s eco-con-scious consumers,” says Zambanini.“Upkeep is hassle-free and requires nosanding, staining or painting. Foodand drinks wash off easily with justsoap and water.”

Maintenance is even easier withtoday’s new hard-shell technology,

which minimizes upkeep and offersthe look of wood that has been paintedor stained. TimberTech’s new LegacyCollection, the latest member of itsEarthwood Evolutions line of fullycapped composite decking, has thecolor and grain of fine hardwoods.

“This collection represents the mostauthentically unique styles in cappedcomposite decking today,” assertsToby Bostwick, director of productmanagement at TimberTech parentCPG Building Products. “It brings arichness and elegance reminiscent ofthe days of hand-crafted wood floorplanks you would see in a fine homeor charming historic barn.”

Fiberon’s newly introduced GoodLife composite decking has a protec-tive, three-sided capped surface thatresists staining, fading, mold andmildew, while targeting value-con-

BY ALL ACCOUNTS, 2014 promisesto be a good year in outdoor liv-

ing—a category that’s projected toreach $5.7 billion in sales by 2016.Manufacturers of composite deckingare taking note.

“Decks and porches are now con-sidered true extensions of a home’sliving space,” says Adam Zambanini,v.p. of marketing for Trex. “People arerealizing that it’s far more economicalto expand their living space outsidethan to enlarge or renovate theirhome’s interior.”

PRODUCT SpotlightOutdoor Living

GOOD LIFE composite decking from Fiberonhas a protective, three-sided capped surfacethat resists staining, fading, mold, and mildew.

TIMBERTECH’S new Legacy Collection is afully capped composite with the color and grainof fine hardwoods.

MOISTURESHIELD PRO deck boards weredesigned to meet consumers’ preference forcapstock composite decking.

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TAMKO’S Evergrain and Envision composite decking is now available ingrooved deck boards that are easier to install.

ARMADILLO LITE composite decking, made by Rhino Deck, is 20%lighter than comparable composite boards.

Don’t Forget the Finishing TouchesA host of new lighting and railing products allow con-

sumers to take an ordinary outdoor living space from com-monplace to extraordinary.

“Builders and homeowners are looking for enhancementsthat maximize the style and enjoyment of their outdoorspaces,” says Chris Camfferman, senior product manager forUniversal Forest Products, which produces the Deckoratorsline of deck accessories.

Its Classic and Estate balusters are come in texturedwhite and gray, plus weathered brown, to complement theleading deck and railing colors. Two new aluminum balusterstyles, the Twist and Ellipse, offer a variety of style options.

New solar post caps are crafted from pine and featurefrosted glass and warm LED lights. Four styles can be cho-sen: Heritage, Archway and Hammered Metal, plus a cast-stone cover named Woodland Gray.

“The right lighting can take any outdoor space from invisi-ble to inviting,” says Ronald W. Kaplan, chairman, presidentand c.e.o. of Trex. “The right products allow homeowners tocreate customized outdoor living spaces that are compatibleand consistent in both look and performance.”

The company’s LED lighting products feature snap-ininstallation, use less energy than traditional lights, and arecool to the touch—making them safe for children and pets.

New LED rail light kits from Feeney function as an out-door lighting accent and a visual aid for low-light areas. Twolengths are offerd (21” and 32”) with either a 35- or 60-wattpower kit. The lights recess into the underside of top andbottom rails of the company’s DesignRail railing systems.

Iluma LED lighting from i-lighting is designed to work withany form of outdoor railing system. Photocell technologysenses ambient light and automatically turns lights on and offfor both safety and security.

Digger Specialties is offering a drink rail adapter kit thatcan support either awood or compositedeck board on top—providing a safeperch for bever-ages. The Westburypre-dri l led alu-minum rail comesindividually sleevedas a kit, with onerail and screws, foreasy installation.

FEENEY LED RAIL LIGHT KIT

DIGGER DRINK RAILADAPTER KIT

scious consumers.“The new Good Life line delivers exceptional perfor-

mance and value, making it an economically viable alterna-tive to a whole new segment of the home-owning popula-tion,” says Doug Mancosh, president of Fiberon. “Ourchannel partners will see a new wood-alternative customerwalk through their doors now that a high-performancedecking option is available at such a good price.”

Another new entry in the field of capped composites isMoistureShield Pro capstock decking, recently introducedby AERT. “This new line will make it possible to reacheven further into markets where capstock is becoming thepreference,” says Brent Gwatney, senior v.p. of sales andmarketing for MoistureShield. “We want to fulfill allhomeowners’ decking preferences, whether it be with a nat-ural wood-like composite or the benefits of a lower-mainte-nance cap.”

The newest line of composite decking from Rhino Deckis called Armadillo Lite. The line is made from 100% post-consumer recycled material and has a uniquely flutedunderside that makes it 20% lighter than comparable com-posite decking. A wrapped polyethylene coating protectsagainst fading, weathering and staining.

TAMKO Building Products has a new option for itsEverGrain and Envision decking: grooved boards. Thecompression-molded boards are easier to install and featurethe natural look of wood, with no repeat grain patterns anda dramatic deep grain.

TruGrain decking from Westech Building Products rep-resents a whole new category of composite decking. It ismade of Resysta, which was developed in Germany and ismade from rice husks, mineral oil, and salt.

“This is the very first product that looks like exotic ortropical hardwood, is 100% recyclable, and is durable andlong-lasting like foamed composites,” says general manag-er Renee Havrilla. “Water-resistant surfaces with the lookof wood are our future.”

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Help customers dreambig with outdoor livingdesign tips, tools

extra layer of protection to resist staining, fading andscratching, while cellular PVC decking offers the broadestcolor choices with stain- and scratch-resistance.

“Today’s durable products give customers more free-dom to be creative and put some artistry into their backyardprojects,” he said. “These decking options provide the per-fect backdrop for elaborate outdoor kitchens and rooms thatcan redefine how the customer experiences outdoor living.”

Sell the Outdoor Room as an ExperienceFind out early on how many family members there are

and how they plan to use the deck on a daily basis. Then letthem imagine bringing all of the comforts and luxuries ofthe indoors to their outdoor space. “Approaching customerswith the outdoor room concept instead of just the plaindeck or patio helps them to think big, bold and beautiful,”notes Miller.

Jason Russell, Tacoma, Wa.-based president and ownerof Dr. Decks, says he not only builds outdoor rooms, butwows customers with unique and individual features thatsurprise and delight them, like outdoor theaters, built-inbench sound systems, and electronic picnic tables that riseup at a touch of a button.

“My goal is to get their imaginations going on ways toenhance their outdoor experiences,” he says. And, accord-ing to Russell, an important part of his artistically crafteddecks is to use the best, most durable materials, such as

AS SPRING ARRIVES after a rough winter in many regionsof the country, homeowners are feverishly beginning

to plan for their outdoor living spaces. As a focal point of warm weather entertainment, an out-

door living space can become a luxurious retreat, given theright design, materials and amenities. Knowing how toapproach customers to get them involved in the designprocess can spur their imagination, allowing projects toexpand and get more creative. This boosts margins for deal-ers and contractors and provides exciting design possibili-ties for homeowners that they might not have imagined.Here are some ideas for expanding the vision and bringingtogether the dealer, contractor and homeowner as a collabo-rative team.

Use Low Maintenance Materials at the StartUsing low-maintenance materials can help the home-

owner think bigger and out of the box from the get-go.Take the hassle of maintenance and frequent repair out ofthe equation, and the design possibilities become limitless.

“Using the newest low-maintenance deck and railingmaterials ensures the customer’s investment will pay offwith an outdoor space that exceeds their wildest dreams,”says Steve Miller, v.p-sales, Holmes Lumber, Millersburg,OH, a division of Carter Lumber.

Mel Westerman of Cape Cod Lumber, Abington, Ma.,agrees, adding that the new capped composites offer an

MARGIN BuildersBy Carey Walley, AZEK/TimberTech

EXPERTS ADVISE selling backyard projects as “outdoor rooms” instead of merely decks. (Photo of capped composite decking by TimberTech)

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composites and cellular PVC.  “Aftera long winter, a beautiful deck is thecustomer’s ticket to grabbing everypossible second of outdoor enjoymentand that does not include giving upweekends doing maintenance.” 

Ramp Up the Style withRailings

Along with providing safety, rail-ings and fancier infills can also influ-ence the style of the final deck design.To enhance traditional railings, deco-rative in-fills, such as square or roundmetal balusters, offer a sleek stylishoption.

When there are breathtaking, scenicviews beyond the deck, severaloptions to unclutter the view includecable railing and glass panels. Sleek,stainless steel cable railing provides animproved view and serves as a con-temporary design element with verylittle maintenance. For the ultimateview of lush scenery, there are kits tointegrate glass panels into the railingthat become nearly invisible.

Amp Up the Lighting OptionsTo complete the outdoor space,

deck lighting can extend the hours ofenjoyment on the deck long after thesun goes down, as well as serve as adesign element. According to theAmerican Society of LandscapeArchitects’ 2014 Residential Land-scape Architecture Trends Survey,98.3% of respondents rated lighting asa desirable element of their deck.Lighting innovations include post caplights that generate a warm glowaround the deck’s railing, under-the-handrail lighting, subtle surface lights OUTDOOR KITCHENS are the perfect project to build a deck sale around. (Photo by AZEK)

that install flush into the deck boards,and stair riser lights for improvedsafety.

Complete the VisionSeeing a small swatch chart or deck

sample doesn’t really paint a pictureof how that product or color is goingto look on an entire deck. With onlinevisualization tools, the collaborationteam can experiment with differentcolors of decking and railing infilloptions. This helps cut through themire of all the products and colorchoices out there.

“I think online color visualizers area great way for homeowners to betterenvision the complete package andthey are a great selling tool,” saysRussell. “It opens the door to every-

thing from outdoor kitchens to fire pitsto lighting options.” He relies onadvanced software as well as manu-facturers’ online design tools, includ-ing TimberTech’s color visualizersand even an iPad app that makes col-laboration easy.

By presenting the outdoor space asa total experience limited only by theimagination, dealers and contractorscan help customers dream big withtime-tested composite or cellular PVCdecking, outdoor kitchens, electronics,decorative railings and deck lightingfor a total investment that will rewardthem for many years to come.

– Carey Walley is v.p. of marketing forTimberTech and AZEK Building Products,divisions of CPG Building Products.Reach her via www.azek.com.

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16 The Merchant Magazine May 2014 Building-Products.com

Contractors’ Nirvana

COMPETITIVE IntelligenceBy Carla Waldemar

WONDERING IF ANYONE out there has a word of advicefor the man? Usually this column tells the story of a

company that’s found a new niche, a money-saving gam-bit, a different way of doing business that’s keeping itafloat in these turbulent economic waters. Orv Johnson,general manager of Hendricks Farmers Lumber, has aproblem that’s a little more unique: He’s way too busy.

Orv is selling packages for eight to 12 new homes ayear (plus, plus, plus). And he’s doing it in a town of—ready?—720 people. Nor does the town of Hendricks boasta giant industry—simply the hospital, a golf cart distribu-tor, a pretty lake or two. Yet he turns away advertisingreps, because why in the world would he want to lure morecustomers, he asks them. He can’t keep up with the ones hehas.

What is this—the magical kingdom of Oz? No, sir.Hendricks is a rural, farm-based community on the westernborder of Minnesota. Hike a mile, and you’re standing inSouth Dakota. Brookings, S.D., and Marshall, Mn.—theonly sizeable spots on this stretch of the prairie—are 30minutes away. Orv sells to them, too, but they’ve each gottheir own lumberyards. So do the tinier towns closer by—“but we’re friendly,” Orv says of his competitor-dealersdoing business there. “I respect them. If someone’s in needof something, we even trade materials.”

Orv was born and raised in Hendricks, but he’s not the

owner of the company and never will be. Nobody is; well,actually, ownership is divided among 50 or so sharehold-ers. Back in 1915 when the yard was founded, peoplebought shares at $50 each—400 of them—to raise the nec-essary $20,000 so the company could purchase four cars oflumber to open its doors and get the operation up and run-ning. It’s been doing gangbusters ever since. Orv reports toa board of directors who, wisely, give him free rein. “I runthe whole company,” he allows.

Farmers are among his best customers—“a lot of agri-cultural business, livestock equipment. And the farm econ-omy is really good,” Orv reports. “Lots of them are alsobuilding new houses.” So are vacationers who cherish thesurrounding lakes, resulting in “a lot more d-i-y business insummer,” he reports: “remodeling, plus lawn and garden,plants, fertilizer.” They come to Hendricks FarmersLumber because of word-of-mouth, “after talking tofriends they trust,” he says, backed by the ease of one-stopshopping.

Hendricks’ operation is unique in another key facet: notonly one-stop shopping for building materials but also forthe potential homeowners who’re doing the actual build-ing. “We do a lot of generaling. We can be everythingfrom A to Z for them. They can choose to deal only withme and not a lot of subs,” explains Orv, who then overseesthe entire project as he hires and schedules and supervisesfor at least 75% of homeowner-wannabe clients, buildinghouses that range in price from $150,000 to $400,000.However, he’s quick to add, “If homeowners just wantonly the materials, that’s okay, too—however they want towork it.”

But most would just as soon turn it all over to the prosOrv hooks them up with—a function that is a lot morecomplicated that it sounds, says the man who should know.“The biggest thing is for me to get a feel for what a cus-tomer wants in his home and their personalities. Then I’llfind them a contractor they can get along with. Peopledon’t realize how important that is, to have the right match;otherwise, is can be disastrous,” he well knows.

Of course, those pros make mighty loyal customers,themselves. The reason is clear: “The biggest thing is, weget them work. They don’t even have to advertise—justrely on the people coming in the store. This year,” Orvsays, “they’re already booked solid. We’ve got a goodthing going….”

It gets even better. The contractor is never out there on aMINNESOTA LUMBERYARD’S seasoned staff is trained to hook home-owner customers up with the pro customers.

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Building-Products.com May 2014 The Merchant Magazine 17

financial limb, looking at a bill for materials and waiting tobe paid so he, in turn, can pay it. Instead, Hendricks billseverything directly to the end-user, the homeowner him-self—which also cuts down on all those in-house “over 30days” dunning notices.

Hendricks also treats its pros (who account for 60% ofits customer count) to the other perks you might expect:free delivery and events, such as the annual DecemberDeWalt Tool promo (complete with eats and drink) andspring’s Sawdust Day customer-appreciation event, inwhich vendors participate. Those sales reps are also onhand to get staff (eight full-timers plus two part-time peo-ple) up to speed on new products Hendricks carries.

In fact, Hendricks first upped its product line back in

1992, when it opened a hardware store in a property it pur-chased down the street. Then, a year ago, the companybuilt a 4,000-sq. ft. addition to its main location and movedthe hardware to this more-convenient venue. “It had kindof discouraged customers to be sent down the block,” hesays. “It’s easier for them if we offer everything under oneroof”—and that “everything” segues from decks to win-dows and doors, tools, siding and a whole lot more, suitedto the “fine Victorian homes and picturesque estates”Hendricks showcases on its website. “Plus, the consolida-tion better utilizes our staff.”

So, what about the big recession? “We haven’t noticedit,” he says in the understatement of the month. They did-n’t have time to stew over it, being way too busy. Still are.And that creates its own dilemma—might it be time toexpand?

“We’ve thought about it,” Orv ruminates. “We could goout, look for new, young contractorsand try to bring ’em in to handle thebusiness. But what if things slowdown? Then they wouldn’t haveany work. So I guess we’ll contin-ue as is,” he indicates. “If we tellpeople in December that we can’tstart their new house untilAugust—if we’re upfrontabout it—they’re usuallypatient; they’re usually will-ing to wait.”

Carla [email protected]

TOOLS are among the heavily promoted products.

Interior Exterior DIY Exterior DIY Interior Aluminum Professional

GREAT HOMESTurning

GoodHOUSESinto™

www.bwcreativerailings.com

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18 The Merchant Magazine May 2014 Building-Products.com

TO ATTAIN THE number one supplier position with ouraccounts we must, above all, earn (and continue to

maintain) their trust.We are not just talking to our customers. We are asking

for their money. We are asking them to take risks based onwhat we tell them. Sure, they may know what they are buy-ing, but will we ship it on time? Will we ship it at all? Whatdo we do when the market moves against us? How do wehandle problems? These are questions that are essential tothe sales process, which have more to do with our valuesthan our salesmanship.

We have all known salespeople that are great at gettingsomeone to say yes to them, but they don’t (always) backup (everything) they say. We all make mistakes, but there isa difference between mistakes and patterns. A certain kindof salesperson always “forgets” a necessary detail, or needsa price adjustment, or an extra week, day, hour. They putpressure on the customer and their own organization.Things get done, but seldom smoothly. The salesperson’sproblems become their customer’s problems.

These salespeople underperform vis-à-vis their talentbecause they have to rotate through accounts; they get thehustle orders, but they never get the trust orders. They arenever anyone’s number one supplier. They have peoplewho buy from them but few business friends or trustedbusiness partners.

Simple, but in the heat of battle, not always easy, to earntrust, we do what we say we are going to do.

Consistent and Persistent How can I earn a customer’s trust? Whether customers

are buying from us or not our approach is the same.Consistent and persistent.

Same day/time. After our first contact with our newcustomer, we follow up within a week and continue to fol-low up on a weekly or bimonthly basis, on the same day atthe same time.

We are consistent with our call schedule. We can call

intermittently with specials—that is part of our sales arse-nal—but aside from those calls we are like clockwork andthe weather—you can count on us.

We are consistent with our offerings. Just like adver-tising, our offerings to our customers should be consistent.Send them every Monday and Wednesday to one group ofcustomers and Tuesdays and Thursdays to another. As withcalls, we can send special offerings, but our normal offer-ings are consistent—you can count on us.

We engage the whole account. We engage, learn thenames of everyone we speak with at the account (yes, onthe phone also). We become part of the fabric of their busi-ness. Gatekeepers and others who answer the phone oftenhave great influence with the buyer.

Be cheerful. Not ha-ha-funny-as-a-clown cheerful, butprofessionally positive. We are a positive, upbeat, profes-sional part of our customer’s lives—you can count on us (toalways be upbeat.)

Make asking for the business part of the relationship.“I sure love Jack. He is consistent with his offerings. He isalways upbeat. He does what he says he is going to do.”“And he sure wants to do business with me” must be addedto this sentence. We must maintain a consistent, persistentattitude about doing business. We are not just consistentwith the service part of the relationship; we are consistentand persistent sellers also.

Full Disclosure Selling. Full disclosure selling is aseries of questions that lead to an open, trusting way ofdoing business. If we know the answers to the full disclo-sure questions, we are selling the account as a partner, ifnot… something less.

Where are you in your buy cycle? What do you current-ly have on the ground? What do you have on order? Howmuch of that item do you use per month? What is youraverage cost? What is your buy-back(replenish) point? (How low do youlet your inventory go before youbuy?

Many sellers find it difficult toget this information from theircustomers. These questions aretrust-testers. These are reason-able business questions. Ourcustomers’ answers will tell uswhere we are on the road tobecoming their top supplier.

OLSEN On SalesBy James Olsen

James OlsenReality Sales Training

(503) 544-3572 [email protected]

Becoming theirnumber one supplier

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Building-Products.com May 2014 The Merchant Magazine 21

Orchard Supply Hardware,San Jose, Ca., declined comment onreports that it was behind a 37,000-sq.ft. hardware store with 11,300-sq. ft.garden center proposed for Napa, Ca.

The site, currently part of a privatehigh school, was originally going to beanchored by a 10-acre Lowe’s, butneighborhood concerns persuaded thechain to scale back its plan.

Habitat for Humanity relocat-ed its Garden Grove, Ca., ReStorediscount LBM outlet Apri l 17 toAnaheim, Ca.

True Value Hardware present-ed its annual “Best Hardware Store inTown” awards to 13 regional dealers,including Ransom Brothers TrueValue, Ramona, Ca.; Foster TrueValue Hardware, Mariposa, Ca.;Billman’s True Value, Cut Bank,Mt., and Canon City True Value,Canon City, Co.

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Big John’s Back in ColoradoThree years after economic condi-

tions forced the closure of Big John’sAce Hardware in Glenwood Springs,Co., owner John Lindsey is re-openingthe store at a new location.

“The economy just wouldn’t sup-port it,” said Lindsey of the past clo-sure. “That was one of the most diffi-cult things I’ve ever had to do.”

The new store opened April 29, at alocation formerly occupied by aSubaru dealership. A 12,000-sq. ft.steel-frame building on the propertywas converted into a hardware store.

“I like the fact that it’s an oldgarage; I think it really adds to thecharacter of a hardware store,” saidLindsey of the new location, which isabout 2,800 sq. ft. larger than the oldstore, minus the lumberyard.

To maintain this character, the oldgarage-bay doors were retained duringthe remodel, but new energy-efficientheating and lighting systems wereinstalled.

The new store won’t offer lumberor building materials, but will carryfull lines of hardware, fasteners, elec-trical, tools, plumbing, paint, lawn andgarden, and an array of cleaning andhouseware products.

“It’s just nice for people to be ableto park by the front door and walk intoa store that’s well-stocked,” Lindseysaid. “It’s just easier to shop and findwhat you need, and you can’t beat thecustomer service of a place like this.”

Northwest Hardwoods for SaleNorthwest Hardwoods, Tacoma,

Wa., has been put on the sales blockby its owner, private-equity firmAmerican Industrial Partners. Gold-man Sachs Group will handle the sale.

AIP acquired the company fromWeyerhaeuser in 2011, for between$100 and $150 million, as the housingmarket struggled. With the marketimproving, analysts expect NorthwestHardwoods could sell for as much as$700 million.

Disabled Attorney SuesTahoe Area LBM Businesses

Tahoe City Lumber Co., TahoeCity, Ca.; Truckee-Tahoe Lumber Co.,Truckee, Ca., and North Shore AceHardware, Kings Beach, Ca., wereamong dozens of area business recent-ly targeted by a disabled lawyer,claiming they are violating the federalAmericans with Disabilities Act.

Since November, attorney ScottJohnson has sued at least 45 business-

es. He typically sends companies a let-ter stating they are not complying withthe federal law that requires a mini-mum level of access in all publicplaces. His latest accusations concernimproperly marked handicapped park-ing spaces, ramps that are too steep,and door handles that must be twisted,instead of pushed or pulled.

He usually demands between$22,000 and $25,000 per suit.

Officials File Wildfire SuitIdaho officials filed suit against

Potlatch Corp., Spokane, Wa., andrelated companies, alleging they shareblame for a wildfire that killed aForest Service firefighter and burnedmore than 300 acres in northern Idaho,according to the Lewiston Tribune.

The state filed the lawsuit in districtcourt, seeking an unspecified amountin monetary damages for the cost offighting the fire. The suit charges thata logging crew started the fire usingequipment that didn’t meet mandatoryForest Service standards.

Firefighter Anne Veseth, 20, diedAug. 12, 2012, after being struck andkilled by a falling tree while battlingthe Steep Corner Fire near Orofino, Id.

The lawsuit also names PotlatchLand & Lumber, Potlatch ForestHoldings, Clearwater Paper Corp., andKamiah, Id.-based logging contractor,DABCO Inc.

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Building-Products.com May 2014 The Merchant Magazine 23

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SUPPLIER BriefsRosboro, Springfield, Or., tem-

porarily idled its plywood and veneermills in Springfield, due to inadequatelog supply. Lumber and laminate facili-ties remain operational.

Vancouver Specialty CedarProducts, Surrey, B.C., has acquiredthe land, buildings and machinery ofPac-Deck, Maple Ridge, B.C., whichwill operate under the name ValleyKiln & Pattern.

Weston Forest Products,Mississauga, Ont., is now distributingredwood from The California Red-wood Co., Eureka, Ca., across cen-tral and eastern Canada.

Arch Wood Protection movedto new offices in Atlanta, Ga.

MoistureShield now offers deckbuilders a $1 rebate per deck board forpurchases through June 30.

Weyerhaeuser, Federal Way,Wa., launched a 15-part video seriesdemonstrating installation techniquesfor Trus Joist floor and roof framing.

Fiberon has signed as a gold-level sponsor of a new online videoseries on NextGenHomeTV, featuringTy Pennington.

TSF Systems, Sacramento, Ca.,has sold its Trakloc steel framing sys-tem to ClarkDietrich BuildingSystems, West Chester, Oh., makingit the worldwide manufacturer of theproducts.

Nyloboard re-launched its web-site at www.nyloboard.com.

Ganahl Expanding in LA, OC Nine-unit Ganahl Lumber Co.,

Anaheim, Ca., is preparing to planteven deeper roots in Los Angeles,even as it also makes plans to expandin its longtime home base of OrangeCounty.

Ganahl has acquired 18 acres inTorrance, Ca., where it will build anew South Bay yard within the nexttwo years, to be overseen by TomBarclay, currently general manager inLos Alamitos, Ca.

“We supply contractors, and wewant to be where they are,” Barclaysaid. “Currently, half of what we sellgoes into the L.A. market, yet we onlyhave one store in Los Angeles. TheSouth Bay store puts us closer to ourexisting customers.”

He said L.A. customers, who forsmall orders typically stop by one ofthe big boxes “on about every corner,”have been asking for a lumberyard oftheir own. “Having a nicer, more con-veniently located yard will get ussome of the will-call business ourOrange County locations enjoy,” saidBarclay.

Ganahl hopes to break ground bythe end of the year and complete con-struction within 12 months. Whenconstruction begins, Barclay willmove on to the project full-time and asuccessor will be named for him atLos Alamitos. The new location willhire a staff of approximately 100.

The chain began seriously lookingfor additional sites in the L.A. areaafter the early success of its three-year-old location in Pasadena, Ca.

In addition, Ganahl has signed along-term lease on 5.9 acres of landadjacent to its Costa Mesa, Ca., prop-erty, where it will build a new, largerreplacement store.

“We had considered remodeling(the existing store), but with the trafficwe have here, when the opportunitycame up, we decided to build a newone and, when it’s done, we’ll switchstores,” said general manager BradSatterfield.

With an extra acre to work work,the new location will provide signifi-cantly more covered storage, a 30%larger retail store, and a longer lease.

Satterfield expects to obtain allnecessary approvals in 10 to 12months, with construction to takeanother year.

Interfor Proposes New NameInternational Forest Products,

Vancouver, B.C., has proposed for-

mally changing the company name toits trademarked nickname, InterforCorp.

“The change will provide a directlink to our traditional trade name andbuild on the successful rebrandingefforts undertaken in recent yearsusing the Interfor name and logo,”said president/c.e.o. Duncan Davies.“The new name will also be consistentwith the formal names of our U.S.subsidiaries, which now account formore than 50% of our production.”

The proposal was to be put beforeshareholders at the company’s annualgeneral meeting May 6.

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Building-Products.com May 2014 The Merchant Magazine 25

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Skyreach L&S Extrusions Corp. ispreparing to move its U.S. headquar-ters from Orange, Ca., to a larger,92,000-sq. ft. warehousing, fabrica-tion and distribution facility inRancho Cucamonga, Ca.

The move will allow Skyreach tomeet growing demand for its windowand patio door systems and to developnew building products, such as fenc-ing, fiber casement siding and boards,moulding, trim and non-fenestrationcustom profiles.

“We’re in a position to introduceand supply products that have beenspecifically designed to meet thehabits, tastes and requirements of thewestern USA market,” said generalmanager Gavin Taylor. “We’ll contin-ue to build on a strong foundation andexpand our efforts within the fabrica-

tor and window and door dealer chan-nel across the West.”

Skyreach also operates manufac-turing operations in Chicago, Il., andVaughan, Ont., home of its Canadianheadquarters.

Koppers Buying Osmose Koppers, Pittsburgh, Pa., has

agreed to acquire the wood preserva-tion and railroad services divisions ofOsmose Holdings for $460 million.

Griffin, Ga.-based Osmose WoodPreserving provides such preserva-tives as MicroPro micronized CA,Nature-Wood ACQ/CA, AdvanceGuard and Hi-Bor borates, andFirePRO FRTW. It expects to “con-tinue to operate as it has with very lit-tle visible change to customers andmarkets.”

LBM EXTRUDER Skyreach L&S is putting the final touches on a new U.S. distribution and manu-facturing facility in Rancho Cucamonga, Ca.

Skyreach Moving to Bigger Western Base

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26 The Merchant Magazine May 2014 Building-Products.com

Remodeling to Ease Later inYear Following Strong Start

Solid growth is expected in thehome remodeling market this year, butmomentum should begin to moderatein the fourth quarter, according to thelatest Leading Indicator ofRemodeling Activity from theRemodeling Futures Program at theJoint Center for Housing Studies ofHarvard University.

Sluggishness in the housing mar-ket, and specifically in home sales,may result in a deceleration of homeimprovement spending from double-digit annual growth through the thirdquarter to a year-over-year gain in thehigh single digits by the end of theyear.

“The housing recovery has at leasttemporarily lost some of its momen-tum,” said Eric S. Belsky, managingdirector of the Joint Center. “As aresult, remodeling spending is expect-ed to follow suit and see slowergrowth beginning later this year.”

“Home improvement spending hasalready recovered a significant shareof its losses from the downturn,”added Kermit Baker, director of theRemodeling Futures Program at theJoint Center. “As spending moves intothe next phase, we expect to see recentdouble-digit growth tail off to itslonger-term average in the mid-single-digit range.”

LP, Ainsworth Extend Deal As the companies continue to work

with antitrust agencies on both sidesof the border, Louisiana-Pacific Corp.,Nashville, Tn., and Ainsworth LumberCo., Vancouver, B.C., agreed toextend the outside date for completionof the proposed acquisition by LP ofall outstanding common shares ofAinsworth.

The extension, from April 18 toJune 2, results from continued discus-sions with and reviews by theCanadian Competition Bureau and theAntitrust Division of the U.S.Department of Justice. The dealallows either company to furtherextend the outside date for another 45days, if required to obtain certain reg-ulatory approvals.

Closure of the sale remains subjectto various conditions, including theexpiration or termination of the wait-ing period under the HSR Act and thereceipt of other regulatory approvalsand clearances including under theCanadian Competition Act.

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28 The Merchant Magazine May 2014 Building-Products.com

Distributors Predict WarmerWeather Will Rejuvenate Sales

Despite the negative weather impact on first quartersales growth, building material distributors remain opti-mistic that recovery is nigh, according to the NorthAmerican Building Material Distribution Association quar-terly Executive Trends Index.

Weather has been the largest driver to the slower salesgrowth for distributors, with 36% who experienced a fivepoint or greater sales decline in January due to weather.However, distributors see opportunity to push through costincreases and expect profit growth to remain strong, up 8%in 2014 vs. 9% growth in 2013.

Manufacturers also have high hopes for 2014, expectingsales to increase 11% for the year. About 23% of producershave increased their full-year 2014 forecasts over the last90 days. In addition, 50% of manufacturers forecast anincrease in headcount over the next 90 days and nearly80% plan to add distributors during 2014.

$1 Million to Promote Wood UseThe U.S. Secretary of Agriculture, Tom Vilsack,

announced a $1 million program that will provide trainingfor architects, engineers and builders related to the use ofadvanced wood materials in U.S. buildings. The new pro-

gram will be implemented by the U.S. Department ofAgriculture, in partnership with the Wood ProductsCouncil’s WoodWorks initiative.

The training supports The President’s Climate ActionPlan goal of preserving the role of forests in mitigating cli-mate change and the objective of the 2014 Farm Bill tocreate rural jobs.

“The market for wood and other forest products current-ly supports more than one million direct jobs, many inrural America,” said Jennifer Cover, executive director ofWoodWorks. “As advanced wood products allow the useof wood in a greater variety of buildings—including woodhigh rises—we can increase the role of forests in mitigat-ing climate change, while strengthening rural economies.”

Using wood from sustainably managed forests helpskeep carbon out of the atmosphere because wood productsrequire less fossil fuel to manufacture than other majorbuilding materials.

“We appreciate Mr. Vilsack’s support of theWoodWorks program,” said Christopher McIver, chair ofthe Wood Products Council board and vice president oflumber, sales and corporate development for West Fraser,Vancouver, B.C. “WoodWorks has the unique role ofworking closely with design and construction professionalsto provide education and project support related to the useof wood in buildings.”

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30 The Merchant Magazine May 2014 Building-Products.com

Jim Enright has been promoted topresident and c.e.o. of PacificWoodtech Corp., Burlington, Wa.,succeeding Dave DeWitte, who isnow chairman of the board.

John Martinez is new to sales atThunderbolt Wood Treating,Riverbank, Ca.

Wendy Gonzales, ex-Direct Lumber,has joined Trimco Millwork,Denver, Co., as territory sales repfor northern Colorado, Wyomingand Nebraska.

Julie Castor, ex-Huttig BuildingProducts, has joined the sales teamat Boise Cascade BuildingMaterial Distribution, Lathrop Ca.,managing the AZEK andTimberTech decking lines, as wellas fasteners.

Chris Bailey, ex-Spokane ForestProducts, is new to inside sales atWeyerhaeuser’s Boise, Id., distrib-ution center.

Bryan Ashbaugh, ex-Street ofDreams, is now heading outsidesales and marketing throughout thePuget Sound region for MatheusLumber Co., Woodinville, Wa.

MOVERS & Shakers

Orville Shockey, ex-SierraPine, hasbeen appointed mgr. of particle-board operations for Collins,Portland, Or.

Devin Stockfish, corporate secretary,Weyerhaeuser Co., Federal Way,Wa., has added the titles of seniorv.p. and general counsel, succeed-ing Sandy McDade, who willretire in July. Kristen Sawin hasbeen named v.p.-government rela-tions, environment, health & safe-ty. Sara Kendall, v.p.-corporateaffairs & sustainability, has retired.Denise Merle, senior v.p.-humanresources, will also overseeinvestor relations after KathyMcAuley, v.p.-investor relations,retires in August. Elizabeth“Beth” Baum is now director,investor relations.

Doug Williams has been promoted togeneral mgr. of ProBuild, Aspen,Co.

Dan Sutton, plywood sales, retiredApril 10 after 38 years withRoseburg Forest Products,Roseburg, Or. Kevin Murrayjoined the plywood sales staff.

Steve Carbary has joined ScrewProducts Inc., Gig Harbor, Wa., aswarehouse mgr.

Dan Weixelman, ex-Weyerhaeuser,is new to outside sales in westernWashington and Oregon forDisdero Lumber, Clackamas, Or.

Dan Dieter is now territory mgr. foreastern Washington and northernIdaho with PrimeSource BulidingProducts, Spokane, Wa.

Doug McIalwain has rejoinedCanyon Creek Cabinet Co.,Monroe, Wa., to head its newlyremodeled store and showroom inSpokane, Wa.

Shaina Sullivan, ex-Portland MetroHome Builders Association, hasbeen named marketing director forthe Green Building Initiative,Portland, Or. Thomas J. White isthe new chief engineer andAndrew “Andy” Rocker, keyaccount mgr.

Mike Molinar has been appointedv.p./corporate controller forOrchard Supply Hardware, SanJose, Ca.

Paul Casseri, ex-Larson Mfg., is nowproduct mgr. for the residentialshingle and underlayment divisionsof Atlas Roofing, Atlanta, Ga.

Signing Off.After 24 years of working together with

you in the building industry, the time hasnow come to say goodbye.

We from the Walther family had a greatrun during 24 years. It was fun, and wehope it was for you, too. Never ever didwe imagine that we would be so success-ful. This was only possible because youtook a chance on our products.

Our success shows that with a teameffort—you our customers, our colleaguesat GRK Fasteners, and we, the Walthers—change and growth can be made possible.

Please keep GRK products on your

shelves and continue to use them!

Thank you, America, and thank you,Canada, for giving us a fair chance.

I hope that we will not becomestrangers. If you can, drop a line once ina while!

God Speed to all of you.

Yours truly,

Uli WaltherNew email: [email protected] Phone: 1-807-632-1251

Web: www.grkfasteners.com

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Building-Products.com May 2014 The Merchant Magazine 31

Scott Savoian has been named corpo-rate controller for Timber ProductsCo., Springfield, Or.

Matthew Roscoe, ex-LongviewTimber, is now lands mgr. forChilton Logging, Woodland, Wa.

Daniel Vance has joined SenecaSawmill Co., Eugene, Or., as ITmgr.

Rich Lynch has been promoted tov.p. of marketing for Do it BestCorp., Fort Wayne, In.

Robert Staudte has joined Fiberon,New London, N.C., as Europeanmarket mgr., based in Germany.

Mark Hayes, business developmentmgr., Northwest Hardwoods,Tacoma, Wa., was appointed to theKitchen Cabinet ManufacturersAssociation board.

Shanda Lear is now staffing thelighting department at Mungus-Fungus Forest Products, Climax,Nv., report co-owners HughMungus and Freddy Fungus.

APP Watch

App: WALL-TO-WALL SOLUTIONSProduced by: CertainTeedPrice: FreePlatforms: iPad

Builders now have a new mobile,interactive tool to help guide home-owners to the right wallboard productfor specific areas of the home.

The new app features productinformation, literature and videos onsuch gypsum board lines as VOC-absorbing AirRenew IAQ, noise-reducing Silent FX, moisture- andmold-resistant M2Tech, and heavyduty AirRenew Extreme.

“Since most people spend about90% of their time indoors, the qualityof that environment is extremelyimportant,” says CertainTeed’s AngieDay. “With a competitive residentialconstruction market, we wanted toprovide builders with meaningful,value-add features to achieve thebest indoor environment possible.”

Download from iTunes App Store

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32 The Merchant Magazine May 2014 Building-Products.com

Special FocusNorth AmericanWholesale Lumber Association

FOLLOWING AN IMPRESSIVE show lastyear in Las Vegas, the NAWLA

Traders Market returns to Chicago for2014. The premier event will be heldNov. 12-14 at the newly renovatedHyatt Regency Chicago, a familiarvenue for regular attendees.

Since 1996, the Traders Market hasheld a unique position among lumberand building material trade shows, asit is the only one that is focusedalmost exclusively on the lumber sup-ply chain. Unlike other shows, theexhibitors are almost always manufac-turers of lumber and lumber-relatedproducts, not machinery or otherequipment providers.

“The NAWLA Traders Market isthe must-attend event in the forest

products industry. It’s the one timeand place where buyers and sellers ofall types of wood and related buildingproducts can get together for two daysand ‘talk shop’ face-to-face,” said JimMcGinnis, Traders Market chair. 

This focus on supply chain partnershas fostered an unrivaled atmospherefor networking. In today’s global mar-ketplace, the Traders Market providesa chance to meet current and prospec-tive clients face to face. In an industrywhere million-dollar deals are stillmade with a handshake, that personalnetworking is invaluable.

NAWLA chairman Rick Ekstein,president of Weston Forest Products,said that the Traders Market truly pro-vides value to his company, and that

his “purchasing team can accomplishin two days, what it would take weeksto accomplish traveling on the road.”

Last year, the show hosted 246exhibiting companies and 1,435 atten-dees—its highest attendance since2008. The attendee profile continuesto be near evenly split between whole-salers and manufacturers.

The Traders Market Committee isadding a few new wrinkles to the 2014show, but is keeping the essence of thefloor experience the same as in pastyears, said McGinnis. “We’re expect-ing 1,500 or so attendees, and itpromises to again be the one event ofthis type that just can’t be missed.”

Registration is now open. Visitwww.nawlatradersmarket.com.

Traders Marketreturns to Chicago

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34 The Merchant Magazine May 2014 Building-Products.com

“TWO MAIN REASONS markets moveup: a lack of supply or the per-

ception there is a lack of supply.”When I was a boy, my mother

planted a garden every year. Everyyear she would patiently wait until thedays grew warmer, the trees began tobud, and the new grasses began tosprout before she would till the soiland plant her flowers and vegetables.

Some years in late February thedays would get warmer, some of thetrees would begin to bud, and the feel-ing of spring would be in the air.During these times, my mother wouldwait to plant her garden, and sureenough, in a week or so another heavyfrost would come and nip all the earlybuds from the trees. My motherwould call these events a “falsespring.”

To stay with my mother’s gardenmetaphor, the economic winter wehave been in has been a long one, andwe are ready for the business season

to improve. Like my mother, we areanxious to plant new seeds of com-merce and begin to grow our busi-ness. We must be careful not to letour zeal overcome our caution, lestwe get tricked by a false spring. Incase you’re not sure what to look for,we have had a couple in the past fewyears. Here’s what they look like.

2010During the last few months of

2009, lumber and panel prices beganto creep higher. Each week’s marketreports showed modest increases inprices. A few announcements of cur-tailments in production, along with alittle better demand than expected,brought some buyers off the fence. Bythe beginning of the new year, fram-ing lumber prices had moved up $20-$25 and panel prices were $25-$30better. January housing starts cameout at a seasonally adjusted annualrate (SAAR) of 614,000, the highest

number since November of 2008.February’s numbers were slightlylower than January’s, but Marchhousing starts came in at 636,000SAAR and April’s numbers made ajump to 687,000 SAAR. Even thoughit was still early spring, and manyparts of the country were still in thegrip of winter weather, the marketreacted with what was sometimesdescribed as a “gold rush mentality,”pushing mill order files out manyweeks and prices to near all timerecord highs. Framing lumber pricesclimbed $125-$150 higher in fivemonths. OSB prices went from themid $150s to the low $400s.

In May, housing starts dropped by100,000 to 583,000 SAAR, and Junecame off another 47,000 to 536,000SAAR. Traders dumped their longpositions, building contractors can-celed job orders, lumber and panelmarkets made a steep decline.

By the first week of June, lumberprices had dropped $75-$100 andOSB prices were $200-$225 lower.Prices continued to drop through themonth of August before showingsigns of recovery and never got closeto the levels seen in the spring.

2011 and 2012Spring 2011 saw almost a reversal

of events from 2010. Housing startsfluctuated between the mid-550s tothe low 600s, while lumber and espe-cially panel prices began a declinethat lasted well into the third quarter.Many said the market was “overly

False springsBy Ken Tennefoss, Crow’s/RISI

Special FocusNorth AmericanWholesale Lumber Association

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Building-Products.com May 2014 The Merchant Magazine 35

cautious” after the events of spring2010.

Spring 2012 saw markets actingmuch the same as 2011, trading innarrower ranges, much more like tra-ditional trading patterns. This contin-ued through the third quarter beforeprices began to improve.

2013In September of 2012, housing

starts came out at 854,000 SAAR.The last time starts were above800,000 was in September of 2008.Market prices were in a generaldecline and did not show much reac-tion to the housing news.

When the October starts of864,000 SAAR came out, the marketbegan to take notice. By the end of2012, lumber and panel prices hadeach increased by $100. They contin-ued to increase in 2013.

Housing starts numbers continuedto improve and finally broke the onemillion mark in March of 2013, thefirst time since June of 2008 thatstarts had been over one million units.Prices were once again at or nearrecord levels, with SPF 2x4 #2&Btrtrading at $485 and 7/16” OSB sellingfor $435 FOB mill.

When the April housing figures of852,000 units SAAR were released,the market went into a decline thatlasted for 60 days. During that time,market prices for framing lumber andOSB lost around 25% of their value.

Since July of 2013, framing lum-ber prices had slowly made gains buthad not been able to fully climb to thelevels of the spring of 2013. OSBprices have had an even tougher timerecovering lost ground and haveremained in the low to mid-$200s.

Which brings us to this spring.Since the first of the year, prices havebeen slowly eroding, even thoughhousing starts ended last year at overone million for November and

December, and have been over900,000 for January and February.

Heavy winter weather has closed jobsites and stifled demand, as well asslowed transportation to a crawl insome regions.

Most buyers and sellers inter-viewed are optimistic about the futureand feel the year will be a good one.However, buyers time and time againsite the lessons learned in 2010 and2013 as reasons for “guarded opti-mism.” Perhaps this spring will not bea false start and will be the beginningof a prosperous year for all.

– Ken Tennefoss is executive editor ofRISI’s Crow’s Weekly Market Report.Reach him at [email protected].

realcedar.com1 866 778 9096

westernforest.comFor your local distributor contact: 604 648 4500

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IF YOU’RE GOING TO BUILD AN ORIGINAL DECK, WHY NOT BUILD WITH THE ORIGINAL MATERIAL?

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36 The Merchant Magazine May 2014 Building-Products.com

THE EXTENSION of credit, so basic to any business enter-prise, pivots on trust and risk. The biggest challenge a

credit professional faces is deciding whether to extendcredit to a client, and how to determine the proper amountof risk or exposure to accept.

Establishing credit limits is not an exact science. Whilesome seasoned credit professionals develop a ‘gut feeling,’others take an analytical approach to reducing risk. Ineither case, understanding risk tolerance and potentialbuyer performance patterns are essential. This article looksat what factors a company must consider when extendingcredit, what is involved in the credit review process, andhow to answer the standard question: “Should I extendcredit—and if so, how much?”

Extending credit to customers can increase sales,improve customer satisfaction, and help build long-termcustomer relationships. Nevertheless, the risk of loss is

always present when extending credit, so a business mustestablish a formal credit policy and set credit limits. Creditlimits not only improve a company’s ability to collect debt,but help it minimize losses on defaulting customers.

Risk Tolerance & ExposureA credit policy should determine not only how and

when to sell on credit and the terms, but also define whenterms should be revisited, and when necessary, the collec-tions process. Several factors influence the amount ofexposure a business is willing to take. Factors include cashflow, profit margin, and the ability to collect unpaid debt.

Cash flow is critical. When offering credit, the sellerhas not only paid the cost of providing the product or relat-ed service but will receive no cash from the sale to replen-ish operating capital until the debt is paid. When setting thelength of terms, the seller needs to take into account if ithas enough cash flow to cover operations until payment isreceived.

Additionally, a company’s profit margin is a major con-sideration when determining how much exposure is rela-tively safe. The lower the profit margin, the more conserv-ative the credit policy. Tightening credit, however, mayhave a negative impact on sales growth unless the compa-ny’s product or service is in high demand. In a competitivemarket, a looser policy may be needed to maintain cus-tomers even if profit margins are low.

Poor economic conditions also can dampen a compa-ny’s appetite for risk, but not always. Kelly Bates, globalcredit director for a U.S.-based supplier, notes their compa-ny didn’t change its credit policy during the recent eco-nomic downtown.

“Sometimes we get pushback [from buyers] that othercompanies extend longer terms,” she concedes, “but our

To extend ornot to extend?Effectively limiting risk and exposure when setting credit limits

Special FocusNorth AmericanWholesale Lumber Association

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38 The Merchant Magazine May 2014 Building-Products.com

Industry Pay TrendsEvery month, Blue Book Services collects accounts receivable data from lumber

suppliers throughout the U.S. and Canada. Confidentially maintained, this informationis compiled, averaged and analyzed to help Blue Book members make safe andinformed credit decisions. The following chart confirms that industry pay trends havebeen relatively stable for the past five quarters.

Quarter Total A/R % Current % Past Due Average CreditReported Per Customer

Q1 2014 $1.83 billion 83% 17% $48,958Q4 2013 $2.01 billion 84% 16% $54,699Q3 2013 $2.58 billion 85% 15% $58,232Q2 2013 $2.28 billion 83% 17% $57,406Q1 2013 $2.24 billion 83% 17% $52,743

– Source: Blue Book Services database

practices are consistent. Whether it isa good market or a poor market, westick to the same procedures.” Batesexplains that this still requires know-ing their customers, monitoring pay,paying close attention to Blue BookServices credit sheets and ratings, andevaluating any changes that mayoccur on a month-to-month basis.

Know Your CustomerKnowing your customer’s financial

stability and track record are crucial.Large or small, a company must havethe ability and cash flow to sustainitself. As most credit professionalsknow, insolvency can strike firms ofany size and have a devastating rippleeffect.

There are a number of sources toobtain information on a customer’screditworthiness, such as creditagency reports and bank references.Credit agencies can provide informa-

tion on a customer’s payment history,banking relationships, and financialperformance. Bates relies heavily onBlue Book Services for timely infor-mation on pay performance andemerging trends.

“We check a customer’s back-ground. We look at how long a com-pany has been in business and diveinto their financials,” she explains. “Ifwhat we need is not available, we willgo with references, but we take themwith a grain of salt.” She notes, how-ever, that banks are a good source forreferences.

When calling a customer’s bankfor a credit rating, standard questionsinclude how long the account hasbeen open, the average balance, andwhether the bank has credit experi-ence with the account. Bates saysknowing the customer and under-standing its reputation in the marketare critical to making sound creditdecisions. “We go back to the sales-person to find out what they knowabout the customer. It gives us a bet-ter level of comfort for the risk (wemay undertake).”

In some cases, it is advantageousto look at a customer’s operating plan.“We request a forecast of how muchthey intend to purchase, and we keepthe amount of credit in line with theforecast and past history,” Bates says.Company policy is to set the creditline “to actual need as long as thefinancials support it. If there’s a spikein their credit line, it’s a trigger to usto go back to the salesperson (to findout why).”

If a customer is asking for morecredit because the company doesn’thave the required cash, Bates says,such a spike “forces us to investigateto determine what the risk is.”

Not every customer has the finan-cial stability to receive credit. “Mostof the time we extend cash in advanceterms if they don’t meet the criteria,”Bates says.

Equal Credit OpportunityAct

Any business checking the credit-worthiness of its customers needs tobe in compliance with the EqualCredit Opportunity Act. The EqualCredit Opportunity Act (ECOA) of1974 applies to all creditors before,during, and after extending credit.Congress passed the Act in responseto the difficulty minorities, women,and the elderly had in obtaining creditand requires that creditors “make

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Building-Products.com May 2014 The Merchant Magazine 39

With Cascadia decking, the unsurpassed nat-ural beauty of Western Red Cedar is matchedwith Terminal Forest Products’ renownedmanufacturing quality. This creates a productthat is beautiful, functional, and eco-friendly.

Cascadia decking is made from a 100%renewable and sustainable North Americanresource unlike PVC and composite decking,which is largely made from non-renewablepetroleum products. Third-party life cycleanalysis clearly shows WRC decking as thebest environmental choice for decking: WRCsignificantly outperforms sustitute products inevery environmental measure.

P.O. Box 1802, Medford, OR 97501 • Fax 541-535-3288 • (541) 535-3465 • www.normandist.com

Superior Service, Products & Support

Distributed by

credit equally available to all credit-worthy customers” without discrimi-nation. The Act also includes rules oncertain notifications and record reten-tion.

Applications must be worded neu-trally, so as not to ask for any prohib-ited information. Additionally, appli-cants must receive a credit decisionwithin 30 days. If credit is denied,terms have been changed unfavor-ably, or an increase in a line of credithad been refused, the creditor mustnotify the applicant, and he or she has60 days to request, in writing, the rea-son for the “adverse action.” Thecreditor must respond to the applicantwithin 30 days if such a request ismade.

Denied application records forapplicants with gross revenues of $1million or less must be retained for 12months after notification, for 60 daysafter notification for applicants withmore than $1 million in gross rev-enues—or 12 months if so requestedby the applicant.

In addition to actual damages,court costs, and complainant attorneyfees, violators can face punitive dam-ages of up to $10,000 in individuallawsuits and up to the lesser of$500,000 or 1% of the creditor’s networth in class-action suits.

ConclusionThe decision to extend credit and

the terms of credit are different forevery business. Company officialsshould set policies that reflect theirown level of comfort with risk andshould perform due diligence on cus-

tomers’ financial stability, reputation,operations and payment performancehistory.

Bates offers this advice whenextending credit: “Know your cus-tomer, keep [the sales department] inthe conversation when you are decid-ing to give credit, and stick to the

facts. Make a fact-based decision.”– This article was provided by Blue

Book Services, established in 1901, acomprehensive online directory and creditinformation resource for the lumberindustry that has been actively involvedwith NAWLA since 2009. Learn more atwww.lumberbluebook.com.

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40 The Merchant Magazine May 2014 Building-Products.com

AFTER ALL THE advice you’ve beengetting from sales professionals,

managers, trainers and sales colum-nists over all these years, why is thetransactional sale still so common?Why don’t we swim against the tideand find a better way?

Perhaps it’s because the transac-tional sale is easy. Someone calls, youquote a price, you get the order… ornot. Move on to the next call. What’swrong with that? In some cases,there’s nothing wrong with it. In othercases, there’s a lot. Let’s break itdown.

Transactional sales are easy anduncomplicated. That’s the irony. Welove them. And that’s why your sales-people gravitate to selling transaction-ally even when they know there’s abetter way, and even when they knowthat applying a sales process and bet-ter selling methodologies might givethem better results.

In an ideal world, we have the bestproduct in a category, with the bestvalue that no one else has, and every-one in the market knows we have it.Just sit back and let the phones ring,right? Imagine being an iPhone sales-person. I mean no disrespect to thehelpful folks at the Apple store, but ifthere were ever a quintessential exam-ple of an order-taker, that would be it.And if your products were like that,you wouldn’t need salespeople atyour company either. Imagine if yourpeople drove around with a hand-heldorder machine like those guys have.“And would you like your receipt

emailed to you, Mr. Campbell?”But your products are not like that.

There is always an alternative—toyour product, to your company, toyour category, or even to your people(more on that in a minute). And,thankfully, this is so. It’s what makesthe game fun. It gives your people a

Transcending thetransactional saleBy Dennis Connelly

chance to shine, to build value, tosolve business problems, and to dif-ferentiate not only their products butthemselves.

You sell a broad mix of products.Some are special. They might have alonger sales cycle as you try to get theproduct sold as a stock item, or at

Special FocusNorth AmericanWholesale Lumber Association

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least regularly purchased as a triedand true product. Perhaps you’re hop-ing a builder always uses a particulartype of decking or that a dealer stocksa certain set of railings or trim boards.We’ve talked a lot in other articlesabout how to sell those items.

But what about the products thatsell more like a commodity? Whatabout the products for which cus-tomers call and say, “I need another300 pieces.” What about the productsthat seem like price is the only thingthat matters? That’s our domaintoday.

Let’s first divide the transactionalsale into three categories so we canunderstand what to do in each case.First we have the customer callingwho always buys this product fromyou. Then we have the customer whosometimes buys it from you. And,finally, we have the customer whocalls and never buys from you.

Case 1: In this first case, wherethey always buy from you, that’s asclose as you’re going to get to sellingiPhones. Be happy, but don’t be com-placent. The key to it working longterm is maintaining a great relation-ship with that customer. They’re notshopping you, therefore they like you.All of the other qualifications are

there, by definition. So the only thingyou can mess up is the relationship.Put your best account managers on itand cherish them.

Case 2: In the second case, wherethey sometimes buy from you, you’relocked in purchasing department pur-gatory. When I talk to companiesabout this group, I’m almost alwaystold the same thing, “They only careabout price.” I remember one suchdealer many years ago who was pur-chasing primed wooden trimboardsand everyone in distribution “knew”that price was all that mattered to him.Then one day, someone sold him

PVC trim boards at three times theprice. What happened? Differentvalue proposition? Really? Are allprimed wooden trimboards the same?This was a missed opportunity.

The key, in this case, is not accept-ing that the sale is transactional at all.They sometimes buy from you andsometimes someone else. Why? Isprice all that matters? What is theproduct being used for? Are therealternatives? Have they ever had aproblem? And what other problemsdid that problem cause? Does timingmatter? Does having it in stock mat-ter? What if it costs more to keep

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enough in stock to never run out?Who else is affected by this purchase?How often do they need it? Howmany more times this month? Howelse could we structure this to getmore of their business? Why is thisimportant? Who else cares? Shouldthey be in the conversation?

Find out who’s wearing the deci-sion and get to that person. The bestsalespeople can do this. Then, have abusiness conversation. If all you do isquote the price, then you’re the sameas the other guy but with a differentphone voice. When the product seemsthe same, and the service seems thesame, and the only thing that changesis the day of the week, then you needto be the difference. Slow down thecall, find out what other factors are onthe table, and talk about their busi-ness. Be the only one who really getsit. When your people can do that, theyare the difference.

Case 3: In the third case, wherethe prospect frequently asks for aquote, but never (or rarely) gives youthe business, we must take a differentapproach. It might sound somethinglike this:

Salesperson: “You call a lot ask-ing for a quote, and you’re real nice.

You say we’re competitive, and yousay good things about us, but wenever get the business, why is that?”

Prospect: “It’s just business.”Salesperson: “Is it fair to say

you’re in business to make money?”Prospect: “Aren’t we all?”Salesperson: “And if you never

get the business, how can you makemoney, and how can you be in busi-ness?”

Prospect: “Look, I get a lot ofquotes from people who don’t get thebusiness, and I give a lot of quotes formy company and don’t get the busi-ness. That’s what it means to be inbusiness.”

Salesperson: “That doesn’t workfor me. With all this price quoting,I’m spending a lot of time and notgetting paid. Tell me what it’s goingto take to do business with you. If itmakes sense, I’ll give you anotherquote.”

Often, what’s happening in thisthird case is that you are being used tokeep someone else’s prices low. Theprospect is behaving as if business isdevoid of relationship, both withrespect to you and to the incumbent.And they will keep behaving that wayuntil someone shows them a reason to

change their thinking. Why not be thefirst one to do that? You have nothingto lose. They’re not your customer,but they called you. Seize themoment.

In summary, we tend to like trans-actional sales because they are easy.But we are leaving much on the table.We’re either vulnerable to the compe-tition, we’re stuck in a price war and arace to the bottom that no one canwin, or we’re getting walked on whileletting good potential business slipaway.

Can your salespeople cope withthese issues and reverse the transac-tional tendency? Can they change thenature of the conversation and reversethe downward pressure on margins?Can they sell more consultatively andbecome the primary differentiator?Getting the answers to these questionscould be the beginning of transcend-ing the transactional sale and havingyour best year ever.

– Dennis Connelly is a sales develop-ment consultant at Kurlan & Associates,author of the blog series livingsalesexcel-lence.com, and a frequent industry speak-er. Reach him at [email protected].

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THE ONGOING CONTROVERSY over forest carbon account-ing reminds me of the H.L. Mencken quote, “For

every complex problem there is an answer that is clear,simple and wrong.” The clear and simple answers for com-plex questions, such as when to start the carbon accountingclock, for example, are oftentimes fraught with error.

How should we go about accounting for the many waysa tree continues to sequester carbon after a harvest? Weknow forest carbon accounting systems must account for:

• Forest inputs such as fertilizer and herbicides• Moisture and material loss• Electricity used to transform raw wood material to

wood pellets• Fuel (diesel) used to harvest trees and transport mate-

rials from the forest to the boilerMethods to interpret other variables that considerably

affect forest carbon—forest composition, geography andpast land use, for instance—are less clear. Environmental

The role of wood productsin forest carbon accountingBy Suzanne Hearn, Forest2Market

Tab

le 1

– Smith, James E.; Heath, Linda S.; Skog, Kenneth E., & Birdsey, Richard A. (2006). Methods for Calculating Forest Ecosystem and Harvested Carbon with Standard Estimates for Forest Types of the United States.

Special FocusNorth AmericanWholesale Lumber Association

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stressors such as hurricanes or pestoutbreaks and economic pressureslike conversion to crop land andurbanization contribute to imbalancedcarbon accounting ledgers. Add tothis the difficulties of applying thesame set of measurement criteria todifferent wood markets, and we havea complex problem indeed.

Carbon Sequestration inLong-Lived WoodProducts

One particular question thatdeserves an answer is how forest car-bon accounting schemes account forthe carbon sequestered in end-use

products. Changes in forest carbonstocks occur whenever forests are har-vested, yet these changes do not meanall of the carbon sequestered by theharvested trees is immediatelyreleased into the atmosphere. In fact,it is quite the opposite.

Hundreds of products made fromtrees—lumber, OSB, plywood, paper,packaging and furniture, to name afew—continue to sequester carbon fordecades. Table 1 (on previous page)displays the percentage of primarywood products that remain in an enduse product after a specified numberof years following harvest and pro-duction.

For example, column two indicates57.9% of softwood lumber remains inan end-use product like lumber or fur-niture 25 years after the initial har-vest. This means that as of today57.9% of the softwood lumber manu-factured 25 years ago remains “in ser-vice,” sequestering carbon in thestuds, joists and floors of our homes.After 100 years, nearly a quarter(23.4%) of softwood lumber harvest-ed a century earlier remains in prod-ucts that sequester carbon.

When considered in terms of a typ-ical 25-year sawtimber rotation, theongoing sequestration benefits of aharvest are staggering. Forests in theU.S. South produced 47 million tonsof southern yellow pine lumber in2012. Converting this to tonnes andtaking moisture content and carbonpercentage into account translates intocarbon sequestration, expressed as itsCO2 equivalent, of 59,190,390 tonnes.

By 2038, when 57.9% of lumberfrom the original harvest remains inservice in products, 34,271,236tonnes remain sequestered (Table 2).

Now let us consider the CO2 emis-sions from wood pellets producedfrom the same harvest (Table 3). If weestimate 6,000,000 tonnes of pellets

We’re growingColville, WA – Usk, WA – Midway, BC – Eagar, AZ

We’re growingColville, WA – Usk, WA – Midway, BC – Eagar, AZ

Tab

le 2

Tab

le 3

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Building-Products.com May 2014 The Merchant Magazine 45

– Assumes 47,000,000 green short tons of southern yellow pine harvest goes toward lumber production.

were produced from sawtimber har-vest byproducts, we find 9,122,571tonnes of CO2 are released to the

lets from the 59,190,390 tonnes ofCO2 sequestered in the lumber, wehave a net gain of 50,067,819 tonnes

atmosphere from those pellets.When we subtract the 9,122,571

tonnes of CO2 emitted from those pel-T

able

4

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CO2 sequestered (column 2, Table 1). To consider these benefits across

time, the amount of lumber taken inan initial harvest is multiplied by thepercentage of lumber that remains inan end-use product in the years fol-lowing that harvest. Immediately aftera harvest, 100% of the lumber pro-duced sequesters carbon. Within oneyear, 3% of that lumber is no longerin use. As a result, only 97% of thelumber produced in the initial harvestremains in use to sequester carbon inyear two.

Table 4 (previous page) showsthese cumulative affects at the time ofharvest and one, five, 10, 15, 20 and25 years into the future. Keep inmind, this sequestration benefit isfrom the softwood lumber producedfrom just one harvest. These numbersdo not account for the carbon thatremains sequestered in other wood

products, such as OSB or paper.

Carbon Accounting forWood Pellets

Just as it is illogical to believe100% of the carbon sequestered by aharvested tree is immediately releasedto the atmosphere, it is irrational toinclude the carbon from a whole treewhen accounting for carbon in thewood pellets used to generate electric-ity. Pellets are produced from harvestbyproducts such as the unmer-chantable tops and limbs of wholetrees. A good portion of the carbonstored by those trees remainssequestered in lumber and other forestproducts.

Likewise, carbon accounting forwood pellets sourced from wholepulpwood trees (the come-along prod-ucts of a sawtimber harvest) mustcount only the carbon sequestered by

those small trees that go into the pel-let, not the large sawtimber-sizedtrees used for lumber and other long-lived products.

An accurate forest carbon account-ing system must consider both forestcarbon and carbon that remains inharvested wood products (Table 5). Afailure to account for carbon stores inlong-lived wood products consider-ably inflates emissions estimates inthe harvest year. We simply cannotdeclare wood-to-energy is a problemuntil we account for and explore themany challenges inherent in complexsystems of carbon accounting.

– Suzanne Hearn is v.p.-sales & mar-keting for Forest2Market. Reach her atsuzanne,[email protected].

Calculations in this piece are based onlogic presented in Dovetail PartnersCarbon in Wood Products – The Basics.

Tab

le 5

Respecting the forest, honoringthe past, building the future.

A nation’s pride you can build on.

Manufacturers of 6 million bd. ft. monthly of

• 5/4 & 6/4 Ponderosa Pine Shop• 4/4 Premium Pine Board Programs

State-of-the-Art Hewmill & Headrig Mill

Contact

Yakama Forest Products3191 Wesley Rd., White Swan, WA 98952

Fax 509-874-1162www.yakama-forest.com

Sheldon Howell(509) 874-1163

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Building-Products.com May 2014 The Merchant Magazine 47

IN MemoriamDean Roland Bramon, 97, former

operator of Carl Diebold Lumber,Troutdale, Or., died March 17.

He served in the 95th and 99thinfantry divisions during World WarII, fighting in the Battle of the Bulgeand the invasion of Nazi Germany.

After his discharge, he joined hisfather-in-law’s wholesale lumber busi-ness, running the new stud mill itopened in 1946. In 1952, he partneredwith Diebold to buy a redwood mill inSmith River, Ca. In 1959, they addeda distribution yard in Wood Village,Or. He retired and turned the businessover to his son-in-law, Jim Patrick,after building a new reman plant inTroutdale in 1989.

Dave A. Heitzman, 81, retiredcommodities buyer for BMC West,Bellevue, Wa., died April 15 at hisnew home in Montana.

He served with the Army duringthe Korean War, earning a Bronze Starwith valor and a Purple Heart.

He managed retail yards in Harrah,Zillah, Prosser, Wenatchee andQuincy, Wa., before retiring fromBMC in 1989.

Howard H. Hofmann, 80, ownerof Howard Hofmann & Associates,Albuquerque, N.M., died April 19 oflung cancer.

Before forming his own lumber andpanel consulting service, he was afield rep for Western Wood ProductsAssociation in San Jose, Ca., andAmerican Plywood Association inDenver, Co. He also worked forWeyerhaeuser Building Systems,Hillsboro, Or.

Gilbert Carpenter, 86, longtimemanager for A.C. Houston LumberCo., died April 4 in Santa Fe, N.M.

After seving in the U.S. Navy from1946 to 1948, he began his lumbercareer as a salesman with IndependentLumber in Colorado, before joiningA.C. Houston, eventually serving asgeneral manager and overseeing thedesign, construction and opening ofnew yards in Colorado, Idaho, NewMexico, California and Nevada.

Francis “Franc” H. Rice, 82, for-mer partner and co-manager ofLinder-Kind Lumber Co., Helena, Mt.,died March 18.

He served in the U.S. Army duringthe Korean War.

Thomas Elza Lucas, 91, owner ofLucas Builders Supply and LucasLumber, Ogden, Ut., died April 13 inCoalville, Ut.

A U.S. Navy veteran of World WarII, he continued working at LucasLumber until age 90.

David Schoech, 70, retired manag-er of Hylton Lumber Co., Salida, Co.,died March 25 in Aurora, Co.

He served in the U.S. Navy duringthe Vietnam War. In 1970, he becamea home builder and, after 11 years,

joined a lumber company in Hays, Ks.He was quickly promoted to managerof the company’s lumberyard inRussell, Ks. In 1986, he moved toColorado, where he managed yards inLamar, La Junta, and Salida.

Ruby Evelyn Hollifield, 97, for-mer co-owner and bookkeeper ofHollifield Lumber Co., Philo, Ca.,died March 23.

She and her husband, Buster,opened the lumber mill in the 1940s.

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Royal Plywood Company14171 E. Park Pl.,Cerritos, CA 90703

Phone 714.521.5735www.RoyalPlywood.com

Mount Storm Forest Products5700 Earhart Ct.,

Windsor CA 95492Phone 707.838.3177www.MountStorm.com

• Made from American Hardwood• Class 1 Durability — 25+ years (lab tested)• T&G end joint reduces waste and

makes installation fast and easy• In stock for immediate shipment• Class B Fire Rating (WUI approved)

www.thermoryusa.com

Decking • CladdingPorch Flooring

The most beautful outdoorwood product available

Distributed by

NEW Products

Nailing Slate RoofingFasco America simplifies installation of slate roof-

ing with its F24 pneumatic nailer and slate roofinghooks.

The tool is lightweight and easy to use, with thepower to drive through wood knots. A rubber comfortgrip ensures non-slip handling and reduces vibrationsand fatigue.

FASCOAMERICA.COM(800) 239-8665

Real PVC DeckingReál Decking by Gossen Corp. unites the look of

exotic hardwoods with the performance of cellularPVC.

Both solid planks and grooved boards are pre-drilled for easier installation. Offered are lengths of12’, 16’ and 20’, in a Brazilian ipé color.

GOSSENCORP.COM(800) 558-8984

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Building-Products.com May 2014 The Merchant Magazine 49

360˚ Outdoor IlluminationLED deck and railing lights from Regal Ideas Inc.

are designed to add illumination and ambience to theentire perimeter of an outdoor living area, instead ofmerely pointing at a single area.

The lights are operated by remote control to offerdifferent color and brightness choices.

REGALIDEAS.COM(800) 819-4344

Preserve the ViewSuper View stainless steel cable systems from All-

Time Manufacturing are easy to install in any deckingapplication. No special tools are required.

The cables and fittings are made in the USA ofmarine-grade, stainless steel. Many sizes and stylesare available, plus custom orders, as well as a fullrange of stainless steel and power-coated aluminumpost and rail components systems.

ALLTIMEMFG.COM(800) 248-7325

Walls of GlassMoving glass wall systems from Milgard now offer

the choice of bi-fold and pocket door operating styles,in addition to the existing stacking option.

Finishes include white and dark bronze anodizedaluminum, and aluminum-clad wood with clear verti-cal grain Douglas fir and pine.

MILGARD.COM(800) 645-4273

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The Look of StoneDurata mortarless stone veneer from Ply Gem is

designed to accent exterior siding, outdoor livingspaces, and interior areas.

The product’s easy-to-install, interlocking panelsare lightweight and come in two colors—Shenadoahand Antigo—along with coordinating accessories.

PLYGEMSTONE.COM(888) 975-9436

Wide-Open DoorsKommerling Window & Doors’ new PremiDoor

lift/slide doors can be extended to 38’ wide, for easy-glide opening and closing.

The 19’-wide-by-8’ tall doors provide a stylish linkbetween a home’s interior and exterior spaces.Opening modes range from two doors to four, withchoice of fixed and lift/sliding sashes.

KOMMERLINGUSA.COM(800) 330-2239

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Multi-Purpose TrimScrews

Screw Products has designeda new white head-trim interior/exterior screw appropriate for awide range of projects.

A proprietary coating protectsagainst corrosion when used withACQ and CCA pressure treatedlumber.

Available in various sizes—9x1-5/8, 9x2, 9x2-1/2, and 9x3—the fasteners can be ordered invarious quantities, in jars andpails.

SCREW-PRODUCTS.COM(877) 844-8880

Reliable Roof DrainOMG Roofing Products’

RedLine AFR roof drain pro-vides maximum allowable flowfor gravity-based, open-channelroof drainage systems.

The device is designed to cre-ate a watertight connection andminimize the danger of pressur-ized flow. It can be installed byhand, on the rooftop, so buildingoccupants are not disturbed.

OMGROOFING.COM(800) 633-3800

Breathable WallFinish

Stolit Milano wall finish fromSto Corp. can be used on bothinterior and exterior surfaces.

The water-based acrylic finishis breathable, mildew resistant,and can be top-coated to provideadditional surface protection. It isalso low-VOC, requires no addi-tives, and unused material can bestored in the sealed pail.

STOCORP.COM(800) 221-2397

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Hardware on the SlideNew sliding door hardware from L.E. Johnson is

easy to install with a Phillips screwdriver, hammerand, occasionally, a drill.

Series 2200 includes a heavy extruded aluminumtrack, zinc-plated hangers of heavy-gauge steel, mold-ed nylon wheels, and brass-plated pulls. A one-piecemetal guide assembly adjusts laterally for a quickplumb.

JOHNSONHARDWARE.COM(800) 837-5664

Imported Tile CuttersCorona Tools distributes Bellota manual tile cutters

to the North American market.Bellota Pro is designed for professional installers

and big tile jobs. Bellota Pop can be used to cut com-mon ceramic and porcelain tiles, as well as mosaicglass.

Both product lines include two solid steel, chrome-plated guides to ensure maximum wear resistance,noticeably smoother gliding, and exceptional scoringstraightness.

CORONATOOLSUSA.COM(800) 847-7863

RSS™RUGGED STRUCTURAL SCREWQuit wasting your timepre-drilling lag bolts!

R4™ MULTI-PURPOSE FRAMING SCREW Frame your deck with ease and confidence!

KAMELEON™ COMPOSITE DECK SCREW Color matching screws countersink into composite decking without mushrooming.

FIN/TRIM™ FINISHING SCREW Featuring the smallest head on the market today.

www.grkfasteners.com 800.263.0463

THE DECKINGTEAMThere are screws... and then there’s GRK!

TREATED LUMBER APPROV

ED

VISIT OUR WEBSITE FOR YOUR FREE SAMPLES OF GRK’S DECKING TEAM!

“Drive with Speed, Quality & Confidence!”

COMPLIANT

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NORTH AMERICAN Wholesale Lumber Association held its annualLeadership Summit March 30-April 1 at the Lodge & Spa at CallawayGardens, Pine Mountain, Ga. [1] Jody & Todd Lindsey. [2] Vicki & CarlLamb. [3] Joshua Tyler, Harris Gant. [4] Warren Reeves, Josh Goodman,Kyle Little. [5] Steve Carasso, Brandon Arling. [6] Ken Trainor, KimmoJarvinen, Clark Spitzer. [7] Mark Saracco, Ian McLean. [8] Robert Harris,David Brown, Richie Ford, Paul McRae. [9] Bob Bell, Philip Duke. [10]

Mark McLean, Robyn Louderback. [11] John Stockhausen, LawrenceNewton, Jeff McLendon. [12] Frank Johnston, Donna Whitaker, JoeBrown. [13] Larry & Kathy Boyts. [14] Jim & Cindy McGinnis. [15] Dusty& Penny Hammack. [16] Kathy Price, Terry Miller. [17] Rob Hruby, GradyPayne, Tom Rice. [18] Bill & Cindy Anderson. [19] Julie & Mark Kasper.[20] Brad Schneider, Karin Bates. [21] Mary Ann Stockhausen, Russ &Linda Hobbs. (More photos on next two pages)

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NAWLA LEADERS (continued from previous page) in Pine Mountain,Ga. [1] Pat Managan, Thom Black, Shelly & Scott Elston. [2] ElizabethRustja, Alan Oakes. [3] Craig Sichling, Ben Skoog, Dowe McNeil. [4] Curt& Julie Stevens. [5] Adrian Blocker, Scott Vande Linde, Chris McIver. [6]Todd Hixson. [7] Doug O’Rourke, Clarence Young. [8] Anthony Muck,John Cooper. [9] Mike Phillips, Kip Fotheringham. [10] John Quast,Heath Hutchison. [11] Andy Toombs. [12] Ricardo Roman, J.R. Virnich.

[13] Patrick Majure, Anthony Muck, Warren Reeves. [14] Mary LouCarlson, Vicki Klumb. [15] Robert Jordan, Mark Wells. [16] AndrewGoodman, Konrad Tittler. [17] Rob Latham, Joni Berghouse, AmyLatham, Kevin Rooney. [18] Julie McLean. [19] Ashley Boeckholt, AaronSulzer, Kevin Cordesman. [20] Bob McSorley, Jim Pattillo, Dave Adams.[21] Ken Tennefoss. [22] Rick & Lillian Ekstein, Shelly & Scott Elston.

(More photos on next page)

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NAWLA (continued): [1] Mark Erickson, Linda & Barry Schneider. [2]Buck & Janie Hutchison. [3] Kimber & David Hutson. [4] Jim Krauseneck,Mike Mordell. [5] Bob Bratton, Bryan Smalley, Donna Whittaker, Jeff

Baumgartner, Paul McRae. [6] Kevin & Karen Rooney. [7] Joe & Mary JoHonochick. [8] Elizabeth & Steven Rustja. [9] Laurie Creech. [10] DavidJeffers, Jim Robbins. [11] Richie Ford, Mark Richardson.

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BLACK GOLD Golf Course, Yorba Linda, Ca., was the site of WestCoast Lumber & Building Material Association’s Southern California golftournament April 10. [1] Geoff Schroeder, Thomas Stremlau, John Neel,Alex Uniack. [2] David Abbott, Jim Giehl, Bob Derham, Raymond Torres.[3] Brad Satterfield, Sal Castillo, Chris Meichtry, Barrett Burt. [4]Michelle Chase, Tom Barclay, Gavin Morris, Chris Johnson. [5] JimRussell, Danny Andrea, Chris Swanson, Rick Deen. [6] Matt Manke,

Keith Berg, Andrew Manke, Scott Whitman. [7] Corey Dexter, JohnThompson, Jason Rutledge, Scott Foley. [8] Bart Weber, Rick Smith,Danny Sosa, Jeff Norihiro. [9] Mark Ramsey. [10] Mark Huff, RichLangton. [11] Ted Smith, Al Reed, Joe DeRoest. [12] Grant Pearsall,Pete Ganahl, Mark Ganahl, Sheldon Doss. [13] Ron May, D’quawnJefferson, Jay Sin, Mike Caputo. [14] Cory Robertson, Ryan Lauterborn,Joe Allotta, Dan May. (More photos on next two pages)

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GOLF (continued): [1] Paul Corso, John Pasqualetto, Rex Klopfer, ScottMiddaugh. [2] Vern O’Connor, Ed Miron, Clayton Mattox, Troy Huff. [3]Frank Bader, Dan Croker. [4] Don Kavert, Dan Lucero, Steve Mitchell,Tony Campbell. [5] Keith Cotarelo, Joe McCarron, Gerry Merker, KimWood. [6] Terry Rasmussen, James Cederholm. [7] Keith Lyng, Mike

Nicholson, Jon Hagen, Rick Parker. [8] Mike Claborn, Pete Meichtry, MarkDavis, Jim Nicodemus. [9] Pat Hawthorne, Bill Sullivan, John Allen, JackButler. [10] Bob Nagle, Monika Bartko, Mark Rommel, Dean Costello. [11]David Iblings, Rolando Robles, Carl Henoch, Doug Radestock. [12] DaleVerseput, Fedra Chavez, Luisa Torres, Geoff Garner. (More on next page)

TREATERS WITH INTEGRITY, TAKING CARE OF TOMORROW’S NEEDS TODAY

ACQ ACQPreserve • BoratesD-Blaze® Interior Fire Retardant

Heat Treating ISPM 15 Compliant • Custom DryingRail Served BNSF • TPI Third Party Inspected

FSC Certified SCS-COC-002513

909-350-121415500 Valencia Ave. (Box 1070), Fontana, CA 92335

Fax 909-350-9623 • email – [email protected]

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WCLBMA golf (continued from preceding pages): [1] Chris & DebbieQuezambra, Ed Brown, Curt Nierman. [2] Victor Fresca, Tom Devlin, BillShadden, Alain Patten. [3] Chris Likert, Mike Russell, T.J. Johnson, MikeHowe. [4] Tom Angel, Bill Young, Ron Hillman, Larry Christensen. [5]Tim Hummel, Chris Manning, Brenden Hexberg, Chris Skibba. [6] BrianHurdle, Kevin Paldino, Peter Howe, Craig Larson. [7] Jeff Pardini. [8]

Paul Frazier, Deonn Deford, Keith Hitchcock, Rick Parker. [9] Troy Allen,Jason Womack. [10] Max Young, Luis Rojas. [11] Tim Dickison, SeanFogarty, Marty O’Hara. [12] Hank Hornsveld, Walter Frederick, J.C.Lopez. [13] Tim Kennedy, Bill Ferguson. [14] Matt Deitchman, MicahOrr, John Gauger. [15] Sergio Paz, Fabio Gaipa, Troy Staufenbeil, KellyLyon. [16] Carl Christoferson, Brett Collins.

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ASSOCIATION UpdateMountain States Lumber &

Building Material Dealers Associ-ation will present a seminar onmechanics’ lien law June 12 atRenaissance Hotel, Denver, Co.

The annual Colorado WOODCouncil’s golf tournament will beJuly 15 at Ranch Golf & CountryClub, Westminster, Co. Proceeds willbenefit the Tennyson Center forChildren.

West Coast Lumber & BuildingMaterial Association will host itsannual 2nd Growth summer confer-ence July 17-18 at Omni Las PalmasResort & Spa, Rancho Mirage, Ca.

Western Hardwood Associationhas scheduled its 2nd annual WesternHardwood International Conventionand Expo for May 19-22 at HolidayInn Airport, Portland, Or.

Tommy MacDonald, a spokesper-son for the Hardwood ForestFoundation, will be the special guest.

APA–The Engineered WoodAssociation has released a new sys-tem report outlining an efficient, cost-effective construction solution forusing wood structural panels withraised-heel (or energy-heel) trusses.

“Use of Wood Structural Panelsfor Energy-Heel Trusses” (Form SR-103) provides a pre-engineered solu-tion for preventing trusses from com-

press insulation, which can diminishits R-value and create a cold area inthe building envelope.

The report illustrates how to com-

bine raised-heel trusses with woodstructural panels to resist loads thatact on the truss connection, whilemeeting the lateral load and winduplift load requirements of Interna-tional Residential Code without addi-tional cutting or blocking.

MASTERPIECES: The Merchant Magazinepublisher Alan Oakes ( front) joined thespouse/companion program “Wine & Canvas,”

a wine, food and painting class, duringNAWLA’s recent leadership summit in PineMountain, Ga. The session was sponsored by

Digger Specialties. For more event photos, seepages 53-55.

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$9. Private box, $15. Column inch rate: $55 if art furnished “camera-ready” (advertiser sets the type), $65 if we set type.

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Visit The ALL-NEWBuilding-

Products.com

OVER 1,500 attended Meek’s Lumber &Hardware’s recent 9th annual Contractor Expoin South Lake Tahoe, Ca. During the event,more than $30,000 was given away in raffleprizes, including six 60" flat screen TVs. Grandprize winner Pete Garcia (photo at right,flanked by president Carrie Meek and chair-man of the board Bill Meek) took home $1,000in cash. The next expo: April 23-24, 2015.

Hampton Gets Grant to KeepDarrington Mill Running

Hampton Affiliates’ sawmill inDarrington, Wa., received a $300,000grant to help keep the business opera-tional while State Route 530 isrepaired.

Since a March 22 landslide closedthe highway, truckers transportinglumber to and from the mill have beenforced to take a longer route.

“In order for them to drive thatextra 90 miles, they have to charge usmore,” mill manager Tim Johnsonsaid, noting that added trucking coststopped $500,000 in just one month.

The grant is a combination of$150,000 from the state Department

fall, but says a definite estimate willhave to wait until debris has beencleared.

“Our objective is to keep the milloperating and keep people working,”said Johnson. “These funds will helpus do that for as long as possible byoffsetting our increased fuel costs.”

of Commerce and $150,000 fromUnited Way of Snohomish County. Itwill be used to purchase fuel cardsthat will be distributed to truckersserving the mill.

The state’s Department ofTransportation hopes to have one laneof the highway open to local traffic by

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DATE BookListings are often submitted months in advance. Always verify

dates and locations with sponsor before making plans to attend.

Do it Best – May 17-19, spring market, Indianapolis ConventionCenter, Indianapolis, In.; (260) 748-5300; www.doitbestcorp.com.

Composite Panel Assn. – May 18-20, spring meeting, PuertoVallarta, Mexico; (301) 670-0604; www.compositepanel.com.

Hardwood Plywood & Veneer Assn. – May 19-21, annual conven-tion, Waldorf Astoria, Naples, Fl.; (703) 435-2900; www.hpva.org.

Western Hardwood Association – May 19-22, international con-vention & expo, Airport Holiday Inn, Portland, Or.; (360) 835-1600; www.westernhardwood.com.

Pacific Coast Wholesale Hardwood Distributors Association –May 22-23, annual meeting, St. Regis Monarch Beach, DanaPoint, Ca.; (602) 272-1213; www.pcwhda.com.

North American Rail Shippers Association – May 28-30, annualmeeting, Parc 55 Wyndham Hotel, San Francisco, Ca.; (972)690-4740; www.railshippers.com.

American Architectural Manufacturers Association – June 1-4,national summer conference, Hyatt Regency, Indianapolis, In.;(847) 303-5664; www.aamanet.org.

Tacoma-Olympia Hoo-Hoo Club – June 3, meeting & elections, LaQuinta Inn, Tacoma, Wa.; (253) 531-1834.

West Coast Lumber & Building Material Association – June 5,associates/dealers golf tournament, Rancho Solano Golf Club,Fairfield, Ca.; (800) 266-4344; www.lumberassociation.org.

Willamette Valley Hoo-Hoo Club – June 6, golf tournament,Shadow Hills Country Club, Junction City, Or.; (541) 485-5979.

Western States Roofing Contractors Association – June 8-11,convention & expo, Paris Las Vegas Hotel & Casino, Las Vegas,Nv.; (800) 725-0333; www.wsrca.com.

National Lawn & Garden Show – June 10-12, Crowne PlazaDenver International Airport, Denver, Co.; (888) 316-0226;www.nlgshow.com.

Mountain States Lumber & Building Material Dealers Assn. –June 12, mechanic’s lien law class, Renaissance Hotel, Denver,Co.; (303) 793-0859; www.mslbmda.org.

Window & Door Manufacturers Assn. – June 17-19, technical con-ference, Pittsburgh, Pa.; (800) 223-2301; www.wdma.com.

Southern California Hoo-Hoo Club – June 18, meeting, El PradoGolf Course, Chino, Ca.; (323) 559-1958; www.hoohoo117.org.

Western Wood Preservers Institute – June 22-24, summer meet-ing, Meritage Resort & Spa, Napa, Ca.; (360) 693-9958;www.wwpinstitute.org.

PCBC – June 25-27, Moscone Center, San Franscisco, Ca.; (800)956-7469; www.pcbc.com.

Door & Hardware Institute – June 26-27, annual convention, HiltonAnatole, Dallas, Tx.; (703) 222-2010; www.dhi.org.

Roof Coatings Manufacturers – July 14-17, International RoofCoatings Conference, Royal Sonesta Harbor Court, Balimore,Md.; (202) 591-2452; www.roofcoatings.org.

Mountain States Lumber & Building Material Dealers Assn. –July 15, Colorado WOOD Council golf tournament, Ranch Golf &Country Club, Westminster, Co.; (303) 793-0859; mslbmda.org.

West Coast Lumber & Building Material Association – July 17-18, 2nd Growth summer conference, Omni Las Palmas Resort &Spa, Rancho Mirage, Ca; (800) 266-4344; lumberassociation.org.

Black Bart Hoo-Hoo Club – July 18, clay shoot & BBQ, Black PointSports Club, Sonoma, Ca.; (707) 588-7613; www.black-barthoohoo181.org.

Southern Oregon Lumbermans Assn. – July 24-25, golf tourna-ment & BBQ, Rogue Valley Country Club, Medford, Or.; (800)633-5554.

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ADVERTISERS IndexFor more info on advertisers, call directly or visit their websites

Allura [www.allurausa.com] ............................................................7Allweather Wood [www.allweatherwood.com] ..................Cover IIIAZEK [www.azek.com]...................................................................27Big Creek Lumber Co. [www.big-creek.com]...............................51Blue Book Services [www.bluebookservices.com] ....................46Boise Cascade [www.bcewp.com]..................................................4BW Creative Wood [www.bwcreativewood.com] .......................17California Cascade Industries [www.californiacascade.com]....28California Redwood Co., The [californiaredwoodco.com]..........29Capital [www.capital-lumber.com]................................................38C.T. Darnell Construction [www.ct-darnell.com].........................41DeckWise [www.deckwise.com] ...................................................55Distribution Management Systems Inc. [www.dmsi.com]..........45Eco Chemical [www.ecochemical.com] .......................................26Fasco America [www.fascoamerica.com]....................................49Fiberon [www.fiberondecking.com] ...............................................3Fontana Wholesale Lumber [fontanawholesalelumber.com].....57GRK Fasteners [www.grkfasteners.com]...............................30, 52Huff Lumber Co. .............................................................................47Humboldt Redwood [www.getredwood.com]....................Cover IIIInteplast Group [www.tufboards.com] .........................................20Jaaco Corp. [www.jaaco.com].......................................................28J.M. Thomas Forest Products [www.thomasforest.com] ...........39Jones Wholesale Lumber [www.joneswholesale.com] ..............19Keller Lumber .................................................................................25Mendocino Forest Products [www.mfp.com] ....................Cover IIIMoistureShield [www.moistureshield.com] ...................................5Norman Distribution Inc. [www.normandist.com].......................39North American Wholesale Lumber Assn. [www.nawla.org] .....33NyloBoard [www.nyloboard.com].................................................24PrimeSource Building Products [www.primesourcebp.com] ....62Railing Dynamics Inc. [www.rdirail.com] .....................................59Redwood Empire [www.redwoodemp.com] ......................Cover IVRegal Ideas [www.regalideas.com]...............................................15Roseburg Forest Products [www.roseburg.com] .......................11Screw Products [www.screw-products.com] ..............................61Simpson Strong-Tie [www.strongtie.com].......................21, 23, 25Siskiyou Forest Products [www.siskiyouforestproducts.com] .31Sure Drive USA [www.suredrive.com]..........................................50Swanson Group Sales Co. [www.swansongroupinc.com].........22Thermory USA [www.thermoryusa.com] .....................................48TigerDeck [www.tigerdeck.com] ...................................................32TruWood-Collins [www.truwoodsiding.com] ........................8A-8BUniversal Forest Products [www.ufpedge.com] ................Cover IIVaagen Bros. Lumber Inc. [www.vaagenbros.com]....................44Viance [www.treatedwood.com] ...........................................Cover IWestbury Railing [www.westburyrailing.com] ............................42Western Forest Products [www.westernforest.com] ..................35Weyerhaeuser [www.weyerhaeuser.com]....................................37Woodway Products [www.woodwayproducts.com] ...................50Yakama Forest Products [www.yakama-forest.com]..................46

IDEA FileBathroom Contest Is a WinnerA 94-year-old dealer in Marcus, Ia., dis-

covered a sure-fire way to increase traffic in itskitchen and bath showroom: an Ugly BathroomContest.

The fun event was the first ever for MarcusLumber, which encouraged shoppers to bring in pho-tos of their ugly bathroom. Each and every picture—ofpink sinks, purple vanities, and horrendous wallpa-per—was displayed in the showroom. Entrants wereencouraged to ask their friends and family to comeinto the store and vote for the ugliest.

After one month, one of the entrants—with metallicsilver wallpaper and green sink—was declared thewinner. The reward was a new vanity cabinet and top,a Delta faucet, and two gallons of paint.

“We had a lot offun with this con-test, and so did ourcustomers,” saysJim Leavitt, a bath-room designer atMarcus. “We’reexcited to do whatwe do best: turn thebathroom from uglyto outstanding.”2014 Contest Winner

Page 63: The Merchant May 2014

© 2014

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AllweatherWood.comGetRedwood.com

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available in 6” and larger sizes; in lengths up to 24 feet. Call us for your 3” and 4” dimension needs too. And if you have a special request we can custom cut up to 18” x 24” solid sawn timbers.

Get real. Get strong. Get ready for a great year with Humboldt Redwood, Douglas fir and Pressure Treated Timbers. Contact Julie Wright at (707) 764-4450; or [email protected].

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Page 64: The Merchant May 2014

The MERCHANT Magazine