As the year comes to a close and we are in the middle of the busy holiday season we would like to remind you to renew your Northwestern Lumber Association membership for 2010. Over the coming year, the NLA would like to help put members in touch with each other and maybe even save a little money in the process. To help jumpstart this initiative the Association will be offering all members that renew prior to January 31, 2010 a FREE classified advertisement on the NLA website.
We believe this simple offer will not only save members money by helping them find deals on items such as a used forklift or extra shelving units but will also help to stimulate conversation between members. As you call to ask about the product for sale, maybe you will strike up a conversation with “your new best friend from the state of …” or, you might share an operations problem with someone that offers you that “magical, why didn’t I think of that” moment?
Once your renewal payment has been processed, you will receive a coupon for your classified ad listing that can be redeemed anytime prior to December 31, 2010. These ads will be posted on www.nlassn.org, by date, and be active for 30 to 45 days. All you will have to do is send the ad description and contact information to the Association office.
As we move through the holiday season we are constantly reminded of the importance of helping others. A simple classified ad could help your neighbor and renewing your membership goes a long way in helping the entire lumber industry. Your small investment will contribute to the protection, education, and awareness within the retail lumber dealer community.
Tuesday, December 8, 2009
Monday, November 23, 2009
Intangible Value
How Much Is Your Time Worth?
As I ask you to renew for the 2009 – 2010 membership year I will speak to the example of how saving time and frustration can be just as valuable as the more tangible savings you may receive from some of your most established vendors. There is no doubt that a new vendor (or existing one) can directly impact your bottom line by saving you a percentage on an order, which allows a greater sales margin. But I ask you to also consider the intangible savings an association membership has on your sanity and routine?
As much as we hate to admit it, every business is impacted by the decisions made at the capital. In just the past year the NLA has provided its members with the extreme luxury of identifying and translating the legal jargon that made it way through the legislative process. With a simple call to the office (or reading Paula’s legislative summaries) you can find out exactly what that legislation means and what you have to do to comply or take advantage of the changes. And what about that suspicious letter, email, fax or phone call you received telling you that you are not in compliance with… ? Again, put your membership dues to work by turning it over to the NLA staff and go on with running your business. Staff will investigate and follow-up with you in short order. It might be a scam, but members go on without losing any time or sleep over the issue.
With that I ask you to note the enclosed membership dues renewal form and return it with a payment. Also, please verify the contact information and make any changes directly on the statement before returning it to the office. The more members we have in NLA, the more questions our staff can research; which leads to a much more informed industry and a better bottom line for everyone!
Please feel free to submit your questions to me at (800) 896-5130 or any of our great staff at (888) 544-6822 as we look forward to serving you over the next year.
As I ask you to renew for the 2009 – 2010 membership year I will speak to the example of how saving time and frustration can be just as valuable as the more tangible savings you may receive from some of your most established vendors. There is no doubt that a new vendor (or existing one) can directly impact your bottom line by saving you a percentage on an order, which allows a greater sales margin. But I ask you to also consider the intangible savings an association membership has on your sanity and routine?
As much as we hate to admit it, every business is impacted by the decisions made at the capital. In just the past year the NLA has provided its members with the extreme luxury of identifying and translating the legal jargon that made it way through the legislative process. With a simple call to the office (or reading Paula’s legislative summaries) you can find out exactly what that legislation means and what you have to do to comply or take advantage of the changes. And what about that suspicious letter, email, fax or phone call you received telling you that you are not in compliance with… ? Again, put your membership dues to work by turning it over to the NLA staff and go on with running your business. Staff will investigate and follow-up with you in short order. It might be a scam, but members go on without losing any time or sleep over the issue.
With that I ask you to note the enclosed membership dues renewal form and return it with a payment. Also, please verify the contact information and make any changes directly on the statement before returning it to the office. The more members we have in NLA, the more questions our staff can research; which leads to a much more informed industry and a better bottom line for everyone!
Please feel free to submit your questions to me at (800) 896-5130 or any of our great staff at (888) 544-6822 as we look forward to serving you over the next year.
Wednesday, September 23, 2009
Blogging For Business Tips
I know, I know so everyone is telling you that you need to start blogging, but why?
I'll be the first to admit that I wasn't quite sure how blogging was relevant to my life and I will also say that I was a bit of a late comer when it comes to the Internet trend from five years ago. Now it's all about Twitter, Facebook, and LinkedIn, but before their "take-overs" blogging was all the rage.
I've always kept an eye on this trend but never really participated until about the last year or so. And for the record, "participation" doesn't necessarily mean you have to write. I got my start by reading and learning from the postings made by experts. I have found that to be the most valuable part of "Blogging". Where else can gain valuable realtime insight from the brains of experts in any area of YOUR choosing. I would not yet consider myself an expert, but I certainly feel I am a knowledgeable resource when it comes to NLA developments, so if you are interested in this, you should become a regular reader...
Over the last year I have found some experts on the blog-o-sphere that really seem to know their stuff. I now get tips from a leading "Non-Profit Adviser", a Small Business Consultant, an E-marketing Guru and a lawyer that comments on current events. All but the last of my subscriptions have directly helped me do my job better. I just happen to enjoy learning the legal implications of law suites and how they impact the rest of society- so I added that to my reading list.
The best part about it is that all of these subscriptions and tips are FREE and I can read them on my time. Plus I don't have the ever mounting piles of magazines in the corner of my office that I'm not quite sure if I can recycle. All of my favorite articles are neatly archived on my computer and I can even bookmark my favorites to reference later when I am ready to act! The one downside that I can think of is that my library of impressive half-finished business books is not quite as complete as it could be.
It is easy to go crazy and to get overwhelmed by the number of blogs that are out there, so my strategy is to find a couple of favorites and follow them regularly. Every once in a while they will refer me to another and I read the archives to see if it peaks my interest. If it does I add it to my list.If I find that I don't read it after a couple of weeks, I can cancel it, hassle free and I don't even have to tell them why.
So I encourage you to find an Internet reader and start clicking on those "Subscribe Here" buttons that are all over the Internet. See where they take you. I may be partial to "The NLA Membership Desk" but there are certainly greater experts out there. Find your own (other) favorites. My goal is just to keep you in the loop about the lumber industry and maybe introduce you to a few new things. Subscribe and find out...
I'll be the first to admit that I wasn't quite sure how blogging was relevant to my life and I will also say that I was a bit of a late comer when it comes to the Internet trend from five years ago. Now it's all about Twitter, Facebook, and LinkedIn, but before their "take-overs" blogging was all the rage.
I've always kept an eye on this trend but never really participated until about the last year or so. And for the record, "participation" doesn't necessarily mean you have to write. I got my start by reading and learning from the postings made by experts. I have found that to be the most valuable part of "Blogging". Where else can gain valuable realtime insight from the brains of experts in any area of YOUR choosing. I would not yet consider myself an expert, but I certainly feel I am a knowledgeable resource when it comes to NLA developments, so if you are interested in this, you should become a regular reader...
Over the last year I have found some experts on the blog-o-sphere that really seem to know their stuff. I now get tips from a leading "Non-Profit Adviser", a Small Business Consultant, an E-marketing Guru and a lawyer that comments on current events. All but the last of my subscriptions have directly helped me do my job better. I just happen to enjoy learning the legal implications of law suites and how they impact the rest of society- so I added that to my reading list.
The best part about it is that all of these subscriptions and tips are FREE and I can read them on my time. Plus I don't have the ever mounting piles of magazines in the corner of my office that I'm not quite sure if I can recycle. All of my favorite articles are neatly archived on my computer and I can even bookmark my favorites to reference later when I am ready to act! The one downside that I can think of is that my library of impressive half-finished business books is not quite as complete as it could be.
It is easy to go crazy and to get overwhelmed by the number of blogs that are out there, so my strategy is to find a couple of favorites and follow them regularly. Every once in a while they will refer me to another and I read the archives to see if it peaks my interest. If it does I add it to my list.If I find that I don't read it after a couple of weeks, I can cancel it, hassle free and I don't even have to tell them why.
So I encourage you to find an Internet reader and start clicking on those "Subscribe Here" buttons that are all over the Internet. See where they take you. I may be partial to "The NLA Membership Desk" but there are certainly greater experts out there. Find your own (other) favorites. My goal is just to keep you in the loop about the lumber industry and maybe introduce you to a few new things. Subscribe and find out...
Optimism From the Accounts Receivable Survey
The most recent edition of the Accounts Receivable Survey has been completed and that means that I have a new chart to share.
We are three-quarters of the way through the year I thought I would try to identify any developing patterns that may have emerged in 2009. Below you will see trend lines of the six revenue breakdowns measured each quarter by the survey.
I’ll grant that this is a relatively small “sample-size” and say that it is difficult to identify any real major trends in just three quarters. But on the other hand, it is also kind of nice to see how cash flow is changing throughout the year. And for the most part the news is good.
Gross Profit
Gross Profit hasn’t changed that much from the start of the year and looks to be on its way back up after a slight decline in the second quarter. The average gross profit margin in quarter three is just over 24 percent which seems to be pretty comparable to years past. Are these lean times helping us develop business practices that make us more effective sales operations? If that is the case, just wait until we can utilize our new skills in a booming economy …
Sales that are “Current”
The percentage of gross revenue budgets that are “Current”- with no outstanding payments for inventory purchased on credit- has gone up steadily throughout the year and currently sits just over 63 percent. Is this simply a matter of being “outstanding long enough” and customers are finally responding to collection notices or our subtle warnings as they come back into the store for more supplies? Or does this mean they are actually starting to see their cash flow improve and are finding it easier to make their payments on time? We can only hope that it is the latter, and if gross profit margins mentioned above are any indication, this is what I am going to believe.
Outstanding for 30, 60 or 90 Days
The last bit of good news is that outstanding amounts in the 30, 60 and 90+ days all have continued a downward trend from the beginning of the year. This makes perfect sense as “Current” amounts continue to rise. Are we are finally starting to close out some lingering accounts? Maybe the fact that we were so patient along the way has earned us clients for life!
Outstanding for 120+ Days
The only bit of bad news that I can glean from this chart is that the percentage of outstanding revenue, over 120+ days, has gone up. Are the same accounts that were outstanding in the first quarter still outstanding in Q3? I see this as a likely possibility, in which case we may have already written these off in our minds. Although this 16 percent is a bit higher than in years past, there may be some reason for optimism if cash flow is truly starting to pick up. Maybe we will be pleasantly surprised when the final numbers are tallied up.
We are three-quarters of the way through the year I thought I would try to identify any developing patterns that may have emerged in 2009. Below you will see trend lines of the six revenue breakdowns measured each quarter by the survey.
I’ll grant that this is a relatively small “sample-size” and say that it is difficult to identify any real major trends in just three quarters. But on the other hand, it is also kind of nice to see how cash flow is changing throughout the year. And for the most part the news is good.Gross Profit
Gross Profit hasn’t changed that much from the start of the year and looks to be on its way back up after a slight decline in the second quarter. The average gross profit margin in quarter three is just over 24 percent which seems to be pretty comparable to years past. Are these lean times helping us develop business practices that make us more effective sales operations? If that is the case, just wait until we can utilize our new skills in a booming economy …
Sales that are “Current”
The percentage of gross revenue budgets that are “Current”- with no outstanding payments for inventory purchased on credit- has gone up steadily throughout the year and currently sits just over 63 percent. Is this simply a matter of being “outstanding long enough” and customers are finally responding to collection notices or our subtle warnings as they come back into the store for more supplies? Or does this mean they are actually starting to see their cash flow improve and are finding it easier to make their payments on time? We can only hope that it is the latter, and if gross profit margins mentioned above are any indication, this is what I am going to believe.
Outstanding for 30, 60 or 90 Days
The last bit of good news is that outstanding amounts in the 30, 60 and 90+ days all have continued a downward trend from the beginning of the year. This makes perfect sense as “Current” amounts continue to rise. Are we are finally starting to close out some lingering accounts? Maybe the fact that we were so patient along the way has earned us clients for life!
Outstanding for 120+ Days
The only bit of bad news that I can glean from this chart is that the percentage of outstanding revenue, over 120+ days, has gone up. Are the same accounts that were outstanding in the first quarter still outstanding in Q3? I see this as a likely possibility, in which case we may have already written these off in our minds. Although this 16 percent is a bit higher than in years past, there may be some reason for optimism if cash flow is truly starting to pick up. Maybe we will be pleasantly surprised when the final numbers are tallied up.
Monday, August 17, 2009
Computers & Technology
The Northwestern Lumber Association Board of Directors has recently set a goal of identifying the needs and next steps in the area of technology and leading the industry towards efficient usage of available tools. The NLA has called on marketing research students at Winona State University for assistance in this effort.
Leon Tyler, Assistant Professor in Marketing, along with his research students, developed a survey to find out how computers are used in the daily operations of lumber dealers and how satisfied members are with their processes. The research consisted of in-depth phone interviews and an online survey. Fifty-six members completed the survey which revealed that many members are less than satisfied with one or more aspects of their technology experience.
Along with the overall satisfaction level some other basics findings that were revealed included:
- Windows XP is the preferred operating system among dealers
- Computers are primarily used for accounting functions
- Many members utilize third party vendors to assist in computer training and maintenance
- Computer networking is the most frustrating technological issue among dealers
Those participating in the survey also indicated that a resource to generate and distribute “upgrade” information would be helpful as it is hard to know what and when upgraded technology will improve operations. Acknowledged along with that was the need for training when the upgrades occur.
The researches did draw one interesting conclusion from the in-depth telephone interviews. “We observed that none of the dealers interviewed were experiencing real pain around computer and software issues. But the longer they talked about their computer and technology the more likely they were to express frustration with the current solutions and resources. It appears that computer issues are not a major problem, but rather a minor, persistent irritation- like a stone in one’s shoe.”
From the conversations I have had, I would believe this to be true. But the contrary argument might be that members don’t experience pain because they are doing their best to ignore the problem. Maybe technology issues are just too big to tackle alone. But I bet we may be able to say the very same thing about any number of issues within our businesses?
Wednesday, August 12, 2009
Non-Residential Construction
With the economic times being what they are, some members have been wondering if it is time to explore additional markets. One of these potential sectors is Non-Residential Construction (NRC). The NLA has recently completed a survey to find out exactly how prominent NRC is within the membership.The survey was completed by 33 Retail Dealers and 8 Wholesalers/Distributors. Some key numbers are summarized below…
- 90% of those responding say they currently work/supply for some NRC projects.
- 40% of those responding say have seen an increase in NRC projects the past year (2009).
- 74% of those responding report that NRC projects are between 6 and 25% of their total sales.
- Education/Academic Buildings
- Worship Facilities
- Office Buildings
- Retail Commercial Buildings
- Housing projects
- “Most commercial construction projects deal with items beyond the normal ‘retail lumber dealer's’ inventory (ie concrete, block, steel, etc.) and some commercial contractors have direct means to purchase some items (ie foam insulation, interior millwork, trim, etc.).”
- “We mainly supply commercial contractors with lumber only. We work hard to get business from our City, schools, and others. But it seems they have other suppliers that are easily accessible and lower priced on most products...I believe most of their suppliers are specialized.”
- “We have decided to go after this typically lower margin business for the volume and have made it work well for us. We have even tried some “new ideas”; working with customers on a “cost plus” basis.”
However, the initial graphic would indicate that even though some members are experiencing an increase in NRC projects the majority of members have seen no change or a decrease in the area over the past year. I think we can safely say that this market segment is a viable option to consider, but it may be too early to consider it a trend.
Friday, August 7, 2009
Welcome NLA
I have started this blog as a way to quickly distribute information and gather feedback from members about new or possible programs.
Periodically, the NLA office takes calls in which we answer questions or find answers to an issue that would have otherwise cost members valuable time. A blog is the perfect way to answer these questions for all to see.
It is like my 5th grade teacher, Mrs. O'Neil, always use to say. "If you have a question, don't be afraid to ask it, chances are someone else has the same question."
Don't worry, your privacy will be maintained at all times and we will not use your name unless permission is granted.
Periodically, the NLA office takes calls in which we answer questions or find answers to an issue that would have otherwise cost members valuable time. A blog is the perfect way to answer these questions for all to see.
It is like my 5th grade teacher, Mrs. O'Neil, always use to say. "If you have a question, don't be afraid to ask it, chances are someone else has the same question."
Don't worry, your privacy will be maintained at all times and we will not use your name unless permission is granted.
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