November, 2007

The “To-Do” List

By Rick Schumacher

In my 17 years of working with lumber/ building material dealers, I have yet to meet one who has plenty of time to spare. Whether the market is up or down, there is seldom a shortage of urgent tasks and fires that all need to be put out now. That’s why it can be helpful to start the day with a list. Among our 40,010 subscribers, there would likely be 40,010 different “to-do” lists.

I’ve put together a different kind of to-do list. Regardless of where your company is located, how your market conditions are, how many employees you have, etc., this list is for you. As you’ll see, this list won’t replace any of your urgent action items. Instead, with the year winding down and the holidays approaching, it is aimed at encouraging a fresh look at your business, and towards opportunities in the year ahead.

1: Your customers.

Human nature being what it is, it is far too easy to take solid, steady customers for granted. Don’t slip into this trap. Remember to provide the service and attention that your steady customers have earned. Something as simple as a handwritten card saying, “Thank you for your business,” takes little effort, yet clearly communicates your appreciation.

2: Your people.

A friend manages a sales organization in another industry. Each year, the owner of the company flies into town for the big awards banquet—where the top producers are recognized. This year, since it’s a down year, the owner chose to send a subordinate, and to replace the prestigious, weighty wood and brass awards with smaller plastic ones. If you want your people be on your team when the strong market returns, don’t devalue them while the market is soft.

3: Create opportunity.

Having just returned from back-to-back trips—NLBMDA’s Summit & Expo and the Remodelers Show—I have a much more positive feel for opportunities in the housing market. Instead of gloom and doom, the atmosphere at both events was positive and forward-looking. And why not? NLBMDA leaders have identified green building as a key growth opportunity for LBM dealers. Also, while big builders work to thin their inventories of unsold homes, remodelers of all sizes are keeping busy. And don’t forget installed sales—another opportunity for solid profits, if done correctly. Opportunity is knocking; are you going to answer the door?

4: Get involved.

Considering the number and the quality of associations and organizations within the lumber/building material industry, there’s no reason not to get involved. As an LBM dealer, a great starting place is NLBMDA (web site: www.dealer.org). The National Lumber & Building Material Dealers Association is comprised of state and regional associations, many of whom provide training and education programs, legislative initiatives, as well as conventions and social activities. While being involved does require time and resources, the payback far exceeds the investment. Having been involved with NLBMDA since 1990, and as a director on my state magazine association board, I know firsthand that the return on investment from association involvement is tough to match.