2 minute read
Package merchandising pays off
r rOW DID unknown RafaellumEber Co.,San Ral-ael, Ca., grow tiom six employees to 38 in two short years amid strong, established competition in suburban Marin County?
They did it by selling redwood dream projects and by promoting the services that would help customers turn the dreams into realities.
Marc Canizzzro, store manager, and Dave Kirk, general manager of the two-acre operation took over Graham Lumber Co. in 1983 with six employees and a business that sold
Story at a Glance
lmpressive growth for retailer attributed to merchandising gazebos, decks, other projects, rather than just boards at a low price...from two to 38 employees in two years. packaged projects are offered customers in various grades, prices.
mostly to contractors. They knew they could grow and be profitable by finding a niche that wasn't being filled by the competition. "Nobody was promoting projects and services in a market that was very sophisticated about wood and redwood in particular," says Canizzaro. They targeted redwood from the beginning and dramatized projects that would suit local lifestyles instead of promoting boards and prices.
Newspaper advertising has been the main method of getting and building name recognition from the start and frequency of advertising has steadily increased. Ads are built around luxury projects like gazebos, decks and other amenities and are illustrated with line art. Inserts for local newspapers double as direct mail advertising.
Rafael not only sells the project idea but also has entire packages to build the desired end-use. A deck package includes footings, fasteners and hardware as well as lumber. Many of the packages come with blueprints. Demonstration decks, shelters and gazebos are built on the premises to dramatize the projects and stimulate demand.
Business is split 50/50 between contractors and do-it-yourselfers. Since their predecessors had concentrated mostly on contractors, Canizzaro and Kirk had to make some big changes to attract the profitable do-it-yourself market. The store and yard areas were modernized and the layout, display and counter areas were changed to accommodate new kinds of customers.
Rafael carries virtually all redwood grades and patterns, but their strongest business is in the top-of-theline dimension lumber. Clear All Heart is carried in all dimensions ranging from benderboard to timbers and is by far the best seller to localities who don't want to waste the time and effort involved in do-it-yourself projects by using anything less than the best building materials. Construction heart and construction common decking are also good sellers as well as merchantable grades for retaining walls and utility applications.
Lumber is kept indoors, well displayed in giant bins up to 20 feet high and clearly labeled. This helps do-it-yourselfers and novice woodworkers to visually identify woods and become familiar with them. The system promotes browsing and helps educate customers without taking unnecessary time from the sales staff.
Meaningful employee contact with customers is, however, one of Rafael's unique services. "Our salespeople are encouraged to spend time with customers," says store manager Canrzzaro. "They will help plan decks, gazebos, shelters or virtually any pro j ect. One counterman spent so much time
