Rader's Edge: How To Pick Vendors
Sometimes the biggest successes in LBM come from something as simple as a vendor and dealer teaming up for mutual benefit
By Chris Rader
In today's LBM business, the relationship between the vendor and supplier can't be taken for granted. A strong vendor-supplier relationship can not only outflank the competition but also ensure profits. Below you will find my account of a partnership between a vendor and a dealer that has existed for more than 10 years. You will also find nine ideas regarding how to find the best vendors. This is the story of how two guys have built their business by supporting each other. To protect their identities against competitors, I will call them Victor the vendor and Larry the LBM dealer.
Victor started his career working at an airline ticket counter for a number of years. He began to understand people and how to take care of them. He had to make last-minute decisions to board or not board passengers and to turn every plane, always shooting for on-time performance. Victor then moved to a sales job at window manufacturing plant. Read more.
Monday, November 30, 2009
News You Can Use - Product Information
Chinese Drywall Caused Homes' Woes, CPSC Finds
With "strong association" made, government now will try to figure out extent of problem, possible remedies
By Craig Webb
A "strong association" exists between homes where Chinese drywall was installed and where occupants reported smells and corroded metals, the U.S. Consumer Product Safety Commission (CPSC) reported today. The finding clears the way for a federal task force to figure out how many houses have this problem and what to do about it.
The report released today (see executive summary) lends government-funded scientific support to the notion that Chinese drywall used in homes in recent years is behind complaints of rotten-egg smells, corroded metal connections, tarnished jewelry, and equipment breakdowns in homes across the United States. CPSC says it has received 2,000 reports from 32 states, the District ofColumbia, and Puerto Rico regarding problem drywall in their homes, and some liability lawsuits already have been filed.
How many homes could be affected remains uncertain, says the CPSC, which recently reached out to the governors of every state and U.S. tereritory seeking data. The agency does know that roughly 7 million sheets of Chinese drywall were imported between 2000 and 2009. What it doesn't know is how many of those sheets went into homes and what percentage of them have problems. Read more.
With "strong association" made, government now will try to figure out extent of problem, possible remedies
By Craig Webb
A "strong association" exists between homes where Chinese drywall was installed and where occupants reported smells and corroded metals, the U.S. Consumer Product Safety Commission (CPSC) reported today. The finding clears the way for a federal task force to figure out how many houses have this problem and what to do about it.
The report released today (see executive summary) lends government-funded scientific support to the notion that Chinese drywall used in homes in recent years is behind complaints of rotten-egg smells, corroded metal connections, tarnished jewelry, and equipment breakdowns in homes across the United States. CPSC says it has received 2,000 reports from 32 states, the District ofColumbia, and Puerto Rico regarding problem drywall in their homes, and some liability lawsuits already have been filed.
How many homes could be affected remains uncertain, says the CPSC, which recently reached out to the governors of every state and U.S. tereritory seeking data. The agency does know that roughly 7 million sheets of Chinese drywall were imported between 2000 and 2009. What it doesn't know is how many of those sheets went into homes and what percentage of them have problems. Read more.
News You Can Use - Trends and Numbers
New US home sales rise 6.2 percent
By ALAN ZIBEL (Associated Press)
Sales of new homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.
The Commerce Department says sales rose 6.2 percent to a seasonally adjusted annual rate of 430,000 from an upwardly revised 405,000 in September. Economists surveyed by Thomson Reuters had expected a pace of 410,000. Read more.
Existing-Home Sales Jump 10.1%
By Big Builder Staff
The soon-to-expire $8,000 federal tax credit for first-time homebuyers sent sales of existing homes soaring in October, the National Association of Realtors reported Monday.
Sales of existing single family homes, townhouses, condominiums and co-ops surged 10.1% to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, up 23.5% from the same month last year. The NAR has not seen numbers like this since February 2007, when the annual pace was 6.55 million. Read more.
Building Material Reuse Can Pay Off
By Teresa Burney
It's happened to every builder--the windows you ordered are the wrong size and unreturnable so they sit in the warehouse for years.
And most every remodeler has shaken his head while hauling a perfectly nice set of cabinets to the landfill because the homeowner wants something different and he has no place to store them. Read more.
Builders in Atlanta Struggle to Survive
By Michelle E. Shaw, The Atlanta Journal-Constitution
When the housing market was white-hot, McCar Homes was one of the nation's leading builders.
In 2006, the Alpharetta-based company built and sold more than 2,200 homes and boasted revenues upward of $500 million. But now that the market temperature is in the Arctic region, McCar's chief executive isn't sure the company will make it into 2010. Read more.
Touched By Lumber: The World’s Most Famous Lumberyard OwnerA newly restored and remastered version of Gone With the Wind is out in Blu-Ray DVD format this Holiday season, reminding us all that Scarlett O’Hara exceeds even 84 Lumber’s Joe Hardy as the world’s most famous lumberyard owner. Scarlett, who built her busines
s up from the ashes of a fire-ravaged, post-Civil War Atlanta, offers both good and bad management lessons for these hard times. She knew how to be tough--“The War Is Over: Don’t Ask for Credit,” one sign in her store reads. But hiring her unrequited love, the milquetoast Ashley Wilkes, to run the yard shows a serious fault in judgment. Oh well: at least when we watch the two clench in the lumberyard office, thanks to the new restoration we now can admire the moulding display in the background.
By ALAN ZIBEL (Associated Press)
Sales of new homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.
The Commerce Department says sales rose 6.2 percent to a seasonally adjusted annual rate of 430,000 from an upwardly revised 405,000 in September. Economists surveyed by Thomson Reuters had expected a pace of 410,000. Read more.
Existing-Home Sales Jump 10.1%
By Big Builder Staff
The soon-to-expire $8,000 federal tax credit for first-time homebuyers sent sales of existing homes soaring in October, the National Association of Realtors reported Monday.
Sales of existing single family homes, townhouses, condominiums and co-ops surged 10.1% to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, up 23.5% from the same month last year. The NAR has not seen numbers like this since February 2007, when the annual pace was 6.55 million. Read more.
Building Material Reuse Can Pay Off
By Teresa Burney
It's happened to every builder--the windows you ordered are the wrong size and unreturnable so they sit in the warehouse for years.
And most every remodeler has shaken his head while hauling a perfectly nice set of cabinets to the landfill because the homeowner wants something different and he has no place to store them. Read more.
Builders in Atlanta Struggle to Survive
By Michelle E. Shaw, The Atlanta Journal-Constitution
When the housing market was white-hot, McCar Homes was one of the nation's leading builders.
In 2006, the Alpharetta-based company built and sold more than 2,200 homes and boasted revenues upward of $500 million. But now that the market temperature is in the Arctic region, McCar's chief executive isn't sure the company will make it into 2010. Read more.
Touched By Lumber: The World’s Most Famous Lumberyard OwnerA newly restored and remastered version of Gone With the Wind is out in Blu-Ray DVD format this Holiday season, reminding us all that Scarlett O’Hara exceeds even 84 Lumber’s Joe Hardy as the world’s most famous lumberyard owner. Scarlett, who built her busines
s up from the ashes of a fire-ravaged, post-Civil War Atlanta, offers both good and bad management lessons for these hard times. She knew how to be tough--“The War Is Over: Don’t Ask for Credit,” one sign in her store reads. But hiring her unrequited love, the milquetoast Ashley Wilkes, to run the yard shows a serious fault in judgment. Oh well: at least when we watch the two clench in the lumberyard office, thanks to the new restoration we now can admire the moulding display in the background.Photo courtesy of Warner Home Video.
Monday, November 23, 2009
Webinar: Year Round Strategies for Making Tax Law Work for You
W E B I N A R
Year Round Strategies for Making Tax Law Work for You
Tuesday, December 8, 2009
3:00 p.m. to 4:00 p.m. (Eastern Time)
$139 per logged on computer
Tax planning is a year-round event if you want to minimize your business’ tax bill. Whether it’s surviving an audit, capitalizing on business deductions, or finding a tax-friendly way to run your business, this webinar will help reduce your tax obligations and make paying taxes less anxiety provoking
What will the hour cover?
Business Tax Planning:
Accelerating Depreciation
Net Operating Less Deductions
Project Your Income
Manufacturer’s Deduction
Auto Tax Breaks
Tax Credits and Incentives
Individual Tax Planning:
Income and Deduction to Consider at Year End
Tax Planning for Families
Tax Planning for Investors
Retirement Tax Planning
Estate Planning and Gift Tax Exclusions
And Information on Tax Document Record Retention
ABOUT THE SPEAKERS:
Elizabeth Grubb; Beth specializes in tax planning, tax compliance and business valuations for gift and estate tax planning, charitable contribution and income tax planning, buy / sell agreements, business purchase and sale, and S corporations. She has been with the firm since 1995.
Brian Schneider; Brian has more than 10 years of Big 4 public accounting experience. Brian has been involved in all aspects of state taxation planning including income / franchise tax, tax credits and incentives, property tax and sales and use tax. Brian’s experience includes working with SEC clients and privately held companies with expertise in manufacturing and distribution industries.
Beth and Brian are with Battelle & Battelle, LLP, located in Dayton, OH.
The webinar is being hosted by Turnkey Programming. Prior to the webinar, you’ll be contacted by Turnkey with the webinar phone number and password, as well as instructions for logging onto the website to view the webinar live.
Click the picture to enlarge and use the registration form.
Year Round Strategies for Making Tax Law Work for You
Tuesday, December 8, 2009
3:00 p.m. to 4:00 p.m. (Eastern Time)
$139 per logged on computer
Tax planning is a year-round event if you want to minimize your business’ tax bill. Whether it’s surviving an audit, capitalizing on business deductions, or finding a tax-friendly way to run your business, this webinar will help reduce your tax obligations and make paying taxes less anxiety provoking
What will the hour cover?
Business Tax Planning:
Accelerating Depreciation
Net Operating Less Deductions
Project Your Income
Manufacturer’s Deduction
Auto Tax Breaks
Tax Credits and Incentives
Individual Tax Planning:
Income and Deduction to Consider at Year End
Tax Planning for Families
Tax Planning for Investors
Retirement Tax Planning
Estate Planning and Gift Tax Exclusions
And Information on Tax Document Record Retention
ABOUT THE SPEAKERS:
Elizabeth Grubb; Beth specializes in tax planning, tax compliance and business valuations for gift and estate tax planning, charitable contribution and income tax planning, buy / sell agreements, business purchase and sale, and S corporations. She has been with the firm since 1995.
Brian Schneider; Brian has more than 10 years of Big 4 public accounting experience. Brian has been involved in all aspects of state taxation planning including income / franchise tax, tax credits and incentives, property tax and sales and use tax. Brian’s experience includes working with SEC clients and privately held companies with expertise in manufacturing and distribution industries.
Beth and Brian are with Battelle & Battelle, LLP, located in Dayton, OH.
The webinar is being hosted by Turnkey Programming. Prior to the webinar, you’ll be contacted by Turnkey with the webinar phone number and password, as well as instructions for logging onto the website to view the webinar live.
Click the picture to enlarge and use the registration form.
Thursday, November 19, 2009
What’s the Outlook for 2010? Help Us All Know by Taking Part in ProSales’ Latest Survey
How did America’s LBM operations fare in 2009? How will they do next year? You can get these valuable insights by taking part in ProSales’ latest online survey, just launched today. This five-minute poll is designed to help us all learn the financial and operational state of dealers from coast to coast. To get the invaluable written comments, you must take part. We’ll be collecting results through Dec. 1.
Take the Survey
Take the Survey
Wednesday, November 18, 2009
Member News
Gwen Hill of Hill's Ace Hardware Honored by Barrow County Chamber of Commerce
The Barrow County Chamber of Commerce announced Gwen Hill as the first recipient for its Inaugural "Woman of the Year" recognition to be presented at the Women in Business Luncheon, to be held Nov. 11 at The Georgia Club.
"The Barrow County Chamber proudly recognizes Gwen Hill of Hill’s Ace Hardware and Lumber Center as the recipient of this award," said Chamber President Tommy Jennings.
Chosen for her continued efforts to make a difference throughout Barrow County, Gwen Hill has worked with The Tree House and Peace Place, and has been one of the driving forces for the Barrow County Cooperative Benevolence Ministries and the Food Pantry and Food distribution each month.
She has served Barrow County in the past as the chairman of numerous organizations, including the Barrow County Chamber of Commerce, the Winder First United Methodist Church, Jackson EMC Foundation, the Winder Noon Lions Club and many others. In 2001, she was recognized as the Barrow County Chamber’s Citizen of the Year.
Not mentioned in the article is the fact that Gwen has worked in the business since 1971 and has been involved in most every facet of the business including IT systems, inside and outside sales, internal accounting, and other back-office functions. Her dedication and hard work have made Hill's Ace Hardware what it is today. Gwen continues to handle the accounting while being involved in a variety of community organizations and church groups (and keeping up with three grandchildren!)
Source.
The Barrow County Chamber of Commerce announced Gwen Hill as the first recipient for its Inaugural "Woman of the Year" recognition to be presented at the Women in Business Luncheon, to be held Nov. 11 at The Georgia Club.
"The Barrow County Chamber proudly recognizes Gwen Hill of Hill’s Ace Hardware and Lumber Center as the recipient of this award," said Chamber President Tommy Jennings.
Chosen for her continued efforts to make a difference throughout Barrow County, Gwen Hill has worked with The Tree House and Peace Place, and has been one of the driving forces for the Barrow County Cooperative Benevolence Ministries and the Food Pantry and Food distribution each month.
She has served Barrow County in the past as the chairman of numerous organizations, including the Barrow County Chamber of Commerce, the Winder First United Methodist Church, Jackson EMC Foundation, the Winder Noon Lions Club and many others. In 2001, she was recognized as the Barrow County Chamber’s Citizen of the Year.
Not mentioned in the article is the fact that Gwen has worked in the business since 1971 and has been involved in most every facet of the business including IT systems, inside and outside sales, internal accounting, and other back-office functions. Her dedication and hard work have made Hill's Ace Hardware what it is today. Gwen continues to handle the accounting while being involved in a variety of community organizations and church groups (and keeping up with three grandchildren!)
Source.
Tuesday, November 17, 2009
Take a ProSales Poll
ProSales wants to know which brands your company currently stocks, plans to discontinue, or may be added to your inventory in the next 12 months. In exchange, we'll put you in the running to receive a $500 American Express gift card.
Just click on this link... and you'll see a 22-question survey that will only take a few minutes to fill out. Be sure to complete the survey all the way to the end and provide contact information so that you'll be in contention to win the AMEX card. ProSales will pick a winner in mid-December.
Just click on this link... and you'll see a 22-question survey that will only take a few minutes to fill out. Be sure to complete the survey all the way to the end and provide contact information so that you'll be in contention to win the AMEX card. ProSales will pick a winner in mid-December.
Estimating Seminar: Register Now
CSA is once again presenting our popular Long Form Estimating and Advanced Estimating sessions. These sessions are designed for all levels of estimating and outside sales. The Long Form Estimating session is a two-day session, while the Advanced Estimating session fits into a one-day session.
Lunch is included in the seminars. Please bring a calculator, pencil and paper to each session.
Long Form Estimating - This seminar will give participants instruction and practice in taking off a material list of items usually included in an estimate made by a lumberyard or building material center. Learn the basics to get started in estimating homes, garages, remodeling jobs, and the like! The first day’s schedule runs from 8:00a.m to 6:00p.m., and the second day runs from 8:00a.m. to 5:00p.m.
February 2 & 3, 2010: Blue Linx Learning Center located in the CSA Headquarters, 120 Handley Drive, Suite 610, Tyrone, GA 30290
Advanced Estimating - This seminar is designed to assist the estimator or outside salesperson who already knows how to estimate, but wants to know shortcuts and instructions in multi-pitched roofs, and finding wall lengths/floor areas for more complicated house layouts. This seminar begins at 8:00a.m. and ends at 4:00p.m.
February 4, 2010: Blue Linx Learning Center located in the CSA Headquarters, 120 Handley Drive, Suite 610, Tyrone, GA 30290
About Keith Kluis: Keith is the author of three popular correspondence courses in wide use nationally on estimating, drafting, and selling. He has been a draftsman, estimator and manager of a building material store, as well as a classroom instructor on these topics.
DEADLINE TO REGISTER: January 25, 2010
First person from each company: Second person from each company:
MEMBER - before deadline: $330 MEMBER - before deadline: $280
MEMBER - after deadline: $380 MEMBER - after deadline: $330
NONMEMBER - before deadline: $430 NONMEMBER - before deadline: $380
NONMEMBER - after deadline: $480 NONMEMBER - after deadline: $430
Please note that any staff from a member company is considered a member.
(This seminar requires a minimum of 12 attendees, so register early!)
Click the pictures to enlarge and print the Registration Form.
Lunch is included in the seminars. Please bring a calculator, pencil and paper to each session.
Long Form Estimating - This seminar will give participants instruction and practice in taking off a material list of items usually included in an estimate made by a lumberyard or building material center. Learn the basics to get started in estimating homes, garages, remodeling jobs, and the like! The first day’s schedule runs from 8:00a.m to 6:00p.m., and the second day runs from 8:00a.m. to 5:00p.m.
February 2 & 3, 2010: Blue Linx Learning Center located in the CSA Headquarters, 120 Handley Drive, Suite 610, Tyrone, GA 30290
Advanced Estimating - This seminar is designed to assist the estimator or outside salesperson who already knows how to estimate, but wants to know shortcuts and instructions in multi-pitched roofs, and finding wall lengths/floor areas for more complicated house layouts. This seminar begins at 8:00a.m. and ends at 4:00p.m.
February 4, 2010: Blue Linx Learning Center located in the CSA Headquarters, 120 Handley Drive, Suite 610, Tyrone, GA 30290
About Keith Kluis: Keith is the author of three popular correspondence courses in wide use nationally on estimating, drafting, and selling. He has been a draftsman, estimator and manager of a building material store, as well as a classroom instructor on these topics.
DEADLINE TO REGISTER: January 25, 2010
First person from each company: Second person from each company:
MEMBER - before deadline: $330 MEMBER - before deadline: $280
MEMBER - after deadline: $380 MEMBER - after deadline: $330
NONMEMBER - before deadline: $430 NONMEMBER - before deadline: $380
NONMEMBER - after deadline: $480 NONMEMBER - after deadline: $430
Please note that any staff from a member company is considered a member.
(This seminar requires a minimum of 12 attendees, so register early!)
Click the pictures to enlarge and print the Registration Form.
NLBMDA News
NLBMDA Makes Case for Eco-Label Before American Lumber Standards Committee
On November 13, NLBMDA presented its proposal for an eco-label to the board of the American Lumber Standards Committee (ALSC) in Charleston, SC. Representing NLBMDA were Val Hanson, former LBMI Trustee, Ken Marson, NLBMDA Board Member and NLBMDA's alternate representative to ALSC and NLBMDA Counsel Frank Moore. Read more.
Health Care Bill Faces Uncertain Future in Senate
Last week, House Democratic leaders celebrated their slim victory on health care overhaul legislation (H.R. 3962), which passed by a vote of 220-215. NLBMDA, which opposed H.R. 3962 for its numerous costly tax increases and mandates on employers, has joined the Start Over Coalition of business groups urging Congress to go back to the drawing board to draft health care reform legislation which will focus on reducing the cost of health care. Read more.
Estate Tax Reform Vote Pending
While Congressional tax committee leaders have continued to indicate that votes on the estate tax would be held before the end of the year, it is not yet clear in what form those votes will take. The NLBMDA Legislative Advocacy Committee at their October meeting reiterated their preference for full repeal of the tax, and support for potential compromises only if they maintain a high enough exemption level to protect the asset-heavy nature of a family-owned building supply company. Read more.
Congress Considers Mandated Paid Sick Leave for Swine Flu
Legislation has been introduced in Congress to require employers to provide up to five days paid sick leave to workers sent home sick with swine flu or other contagious illness. Read more.
On November 13, NLBMDA presented its proposal for an eco-label to the board of the American Lumber Standards Committee (ALSC) in Charleston, SC. Representing NLBMDA were Val Hanson, former LBMI Trustee, Ken Marson, NLBMDA Board Member and NLBMDA's alternate representative to ALSC and NLBMDA Counsel Frank Moore. Read more.
Health Care Bill Faces Uncertain Future in Senate
Last week, House Democratic leaders celebrated their slim victory on health care overhaul legislation (H.R. 3962), which passed by a vote of 220-215. NLBMDA, which opposed H.R. 3962 for its numerous costly tax increases and mandates on employers, has joined the Start Over Coalition of business groups urging Congress to go back to the drawing board to draft health care reform legislation which will focus on reducing the cost of health care. Read more.
Estate Tax Reform Vote Pending
While Congressional tax committee leaders have continued to indicate that votes on the estate tax would be held before the end of the year, it is not yet clear in what form those votes will take. The NLBMDA Legislative Advocacy Committee at their October meeting reiterated their preference for full repeal of the tax, and support for potential compromises only if they maintain a high enough exemption level to protect the asset-heavy nature of a family-owned building supply company. Read more.
Congress Considers Mandated Paid Sick Leave for Swine Flu
Legislation has been introduced in Congress to require employers to provide up to five days paid sick leave to workers sent home sick with swine flu or other contagious illness. Read more.
Green Things
Feud Continues Between Wood Certifiers
By Leora Broydo Vestel
United States Fish & Wildlife Service A group filed a complaint with the Federal Trade Commission last week arguing that the premier certifier of eco-friendly wood products in the United States engages in unfair trade practices.
Another shot had been fired in the battle between rival certifiers of environmentally friendly wood products.
The Coalition for Fair Forest Certification filed a complaint with the Federal Trade Commission last week charging that the Forest Stewardship Council – the premier certifier of green forestry products in the United States – engages in unfair and deceptive trade practices.
The group also asserted that the United States Green Building Council’s Leadership in Energy and Environmental Design rating system for efficient and sustainable buildings — known widely as L.E.E.D. — is anticompetitive because it only recognizes products certified by the Forest Stewardship Council and not those of other certifying bodies.
A letter submitted on behalf of the coalition by the law firm Steptoe & Johnson asks the trade commission to investigate. Read more.
Who is liable for green building performance?
As standards become more stringent, experts urge care on guarantees
By D. Ashley Furness, Business Journal Staff Reporter
Green building performance, or rather failure to perform, has long topped the list of legal risks related to sustainability-minded construction, but developers face even greater stakes this year as government-mandated LEED standards loom and achieving certification becomes more difficult.
“Whether it’s the engineer, architect contractor, builder, the biggest issue in green building is writing careful construction contracts that do not guarantee a certain level of performance,” said North Coast Builders Exchange Green Building Coordinator Hallie Fraser. Read more.
By Leora Broydo Vestel
United States Fish & Wildlife Service A group filed a complaint with the Federal Trade Commission last week arguing that the premier certifier of eco-friendly wood products in the United States engages in unfair trade practices.
Another shot had been fired in the battle between rival certifiers of environmentally friendly wood products.
The Coalition for Fair Forest Certification filed a complaint with the Federal Trade Commission last week charging that the Forest Stewardship Council – the premier certifier of green forestry products in the United States – engages in unfair and deceptive trade practices.
The group also asserted that the United States Green Building Council’s Leadership in Energy and Environmental Design rating system for efficient and sustainable buildings — known widely as L.E.E.D. — is anticompetitive because it only recognizes products certified by the Forest Stewardship Council and not those of other certifying bodies.
A letter submitted on behalf of the coalition by the law firm Steptoe & Johnson asks the trade commission to investigate. Read more.
Who is liable for green building performance?
As standards become more stringent, experts urge care on guarantees
By D. Ashley Furness, Business Journal Staff Reporter
Green building performance, or rather failure to perform, has long topped the list of legal risks related to sustainability-minded construction, but developers face even greater stakes this year as government-mandated LEED standards loom and achieving certification becomes more difficult.
“Whether it’s the engineer, architect contractor, builder, the biggest issue in green building is writing careful construction contracts that do not guarantee a certain level of performance,” said North Coast Builders Exchange Green Building Coordinator Hallie Fraser. Read more.
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