LBM's Best-Kept Secret

CSA’s mission is to build strong independent dealers. Probably the best way we do that is through our dealer roundtables. We have about 50 dealers participating now, and all of them can attest to how their business has benefitted. We have several seats open in our roundtables and are actively seeking more participants. Following is an article written by Chris Rader, an industry consultant and good friend of CSA. In the article, Chris explains why joining a roundtable is a good idea. If you want more information on CSA’s roundtables, contact lisagolden@gocsa.com

Investing a bit of money and time in a roundtable will give you one of the best returns you can make in today's market.

Source: PROSALES Information ServicePublication date: March 24, 2009
By Chris Rader

In the past, I've looked in-depth at such issues as reducing expenses or boosting profitability, but I haven't looked at investments. In particular, how should we invest our money and time?

One of the best investments for a dealer in today's uncertain economy is to build relationships with other dealers that are fighting the fight. I feel that the best investment for a dealer today is to join an industry roundtable; the best-kept secret in the industry.

On a recent consulting trip, I spent time with "Bob," an LBM dealer. Bob was not a large dealer by any means; his sales totaled just over $4 million annually. But he ran his operation like a powerhouse dealer doing well over $100 million.

I could not believe how well Bob did all parts of his business; sales, accounting, and operations. He was efficiently measuring deliveries, and knew what it cost him to make a delivery. His showroom was crisp (Are your showrooms crisp?) and he had a very knowledgable, highly motivated talented staff. I reviewed his financials for holes and opportunities and found ratios and ROI that would be the envy of many larger dealers. In this economic climate, Bob was putting dollars on the bottom line beyond 10%.

What did Bob know that others in industry do not know? So I asked him. Read the rest.