Since we’ve talked here several times about small lumberyards vs. the big boxes, I thought this article might interest some of you:
http://famulus.msnbc.com/famuluscom/bizjournal04-28-010104.asp?bizj=BUF
Never appeal to a man’s better nature. He may not have one. Invoking his self-interest gives you more leverage.
Replies
Boss,
I went to a place like that yesterday. Anech? Lumber/Pal Steel in Palmyra, WI. Sells lumber AND steel (as well as other non ferrous alloys) to the general public. The business is spread out in different buildings all over the place. You go in there, old building, creaky wood floors. Nice guy owns it and too remote for big box competition yet.
The reason I went there is because I needed some stainless stock (12' length) and didn't want to deal with the hassle of a big commercial metal supplier who doesn't really want my business anyway. He still has his little nitch carved out. If they are going to survive, they do need a way to distinguish themselves from the big boxes.
But who knows, maybe HD will soon start carrying 26' I-beams for the DIY.
Jon
"But who knows, maybe HD will soon start carrying 26' I-beams for the DIY."
Around here, some of them carry 20' LVL beams. Guess they figure most homeowners can't get into trouble with something that short.Men look at women the way men look at cars. Everyone looks at Ferraris. Now and then we like a pickup truck, and we all end up with station wagons. [Tim Allen]
While I understand the point of you directing attention to the article I hope that isn't common business practice among up and coming lumber yard owners. I mean the guy bought a business that had lost money the last SEVEN years. And "thought" he could turn it around but ran out of cash. I mean as heavily as he was involved prior to the buy out you would have thought he would have had the electric and banking situation worked out to a satisfactory level before signing on the bottom line. I think he made some rather foolish business moves and competion wasn't his main problem. DanT
I've never been to Pal steel or Lumber but have always seen their ads in the classified section of the Journal. I always figured them to be a salvage yard with a few new things thrown in. You've piqued my interest.
Any T&G cedar deals? I need a bunch.Jack of all trades and master of none - you got a problem with that?
"I've never been to Pal steel or Lumber but have always seen their ads in the classified section of the Journal. I always figured them to be a salvage yard with a few new things thrown in. You've piqued my interest."
Mike,
That's what I thought too. Then one day I needed to buy a 26' 10W26 I beam and called around. They by far had the best price so I drove out to Palmyra looking for the place. To my surprise it was a large collection of buildings dispersed throughout the downtown (try not to blink passing though) plus a very large outdoor yard (2 acres?) about three miles out of town where they keep the really BIG stuff. Main business seems to be lumber, followed buy new metal stock. They do sell "scrap" which really is just shorter cut-offs. The last time I bought some [scrap], cold rolled it was going for 26 cents a pound.
As far as T&G cedar, I couldn't tell you so you would have to call. Can say one thing, while it's kind of a a long drive, it is a scenic one as you have to go through the Kettle Morrain Southern Unit, and pass lots of dairy country.
Jon
Hey B.H. My idle mind wonders sometimes "how come" lumber yards don't do something with what they got ? They have lumber why not build truss's , truss's factories ,why not build panelized house's . I know we hear often about the farmer 's getting only a small percentage of the cost of a box of Corn Flakes , why don't they do something with thier own crops? Another thing since i'm rambling , the Irish potato famine , when people starved and were surronded by water full of fish.
Well I'm gonna take my idle mind and go fishing and maybe some mushroom hunting, let the week end begin and be kind to yourself.
I agree with you to a point - Diversification is a good idea.
Some lumberyards DO, in fact, make trusses. But the ones in our area don't stock SYP lumber, which trusses are commonly built with. (Except in larger sizes)
Farmers are another matter. Some have banded together to build processing plants and the like. Some try to find niche markets for their products. Some sit around complaining and waiting for the government to solve their problems. Remember that there are both good and bad farmers, just like contractors. And everything inbetween.
Good luck with the mushrooms - I hear they're out in force this year. If ya make it down my way, I'll ask Dad if you can visit some of his favorite patches..........Oh, what a fate worse than death it is to be strapped to the back of a Wookie. [C3PO]
We have some great small lumberyards around here, southern ontario, mayny of them are within 5 km of a HD, and for the most part are doing well, i may buy a cpl of small things a month from HD but i buy everything big is from my lumberyard, The small things add up, a discount of 5% if i pay my account within 15 days of month end, free delivery, and staff that rember who you are, know your business and will bend over backwards to accomodate. Home depot cant offer me this, and many other things like truss design or specialty products, but the big thing is SERVICE, theres always a market for service., it never goes out of style.
many smaller lumberyards have joined forces and buying power to compete, but at the same time keep their signage their history and their customers.
HDs may be strong now but there just a fad in the big picture.
Dan T is right with his comments; the business was ailing for 7 years, what do you expect? As a former business "turn around" consultant, I'm guessing the case became hopeless a year or two ago.
I hope I don't start a barage of big box rants, but I continue to marvel at the folks who depend on these stores for their materials. I'll just leave it at this - I overheard a salesperson telling a DIY that they don't carry brass washers for the brass bolts they stock and it is perfectly fine to use a plated washer. Now how many of the building professionals trying to wrap up a job on Firiday afternoon and needs 10 more brass washers for an outside application and just grabs what he can so he can get the job done. Unfortunately, that happens more than one cares to admit. The full service lumber yards I frequent have the complete selection of boxed Sharon fasteners - usually a section running 20 to 30 ft. with all types of fasteners to help you do the job correctly. Big box users and FHB are a contradiction of terms!
That's an interesting story, and one which I'm sorry is often too true. However, in my area of central California, one of our best family owned lumber yard, in business now for 43 years, told me that their sales are up 15% this year to date. Al this when two Home Depot stores have opened within 15 miles of the store within two years. Like any business, you have to be competitive. I own a business that goes head to head with Walmart and Best Buy in the electronics business. The biggest problem we have with businesses like that is their massive advertising budgets. It's tough getting the consumer to think of you as a merchant instead of the big boxes when they decide to buy. Careful shoppers will find that their prices are no big deal, and their sales people in general don't know ####. Sorry if I offended some of you.
In reality, I think a good small lumber company can compete with Home Depot and you don't have to be open 24 hours a day to do it. To say that insurance costs, labor, and overhead drove you out of business is to believe that your comptetition doesn't pay those same things. When you want to buy a hammer, Home Depot will have 20 to choose from and your local yard may only have four, but don't ever get the idea that Home Depot is a better deal. On most things, I can carefully shop Home Depot and then my local yard and beat HD both on price and QUALITY. People who say that boxes like HD are consistently cheaper, aren't careful when they shop quality.
ive been in the renovation business for 15 yrs, and a HD store opened here last year(sarnia ontario), and i have found that most materials bought from HD are inferior in quality or just plain defective
cases in point:
3 leaking whirlpool tubs all from HD, never had that problem before
terrible quality cabinets, Mills Pride? yeah right
and dont get me started on doors and windows from HD
only good thing? people window shop and then call me or another small renovator
I used to buy from a small local lumber yard. Then they stopped stocking redwood.
Now I shop at Lowe's.
Both the small lumber yard and Lowe's order material from the same local distributors. Lowe's always had the best prices.
I now order from Lowe's and pick up at the distributor on my way home.
here in sarnia(southwestern ontario near detroit) we have a independently owned franchise of home hardware building center formerly beaver lumber. the place is great, customer service, knowledgeble staff, lots of stock, great special order system, in house accounts for trades people, discount structure for the trades which is very generous
no wonder the contractor parking section at our HD store is always empty