Buying group looks to repeat success - Progressive Affiliated Lumbermen - Brief Article

Home Channel News, July 3, 2000

Progressive Affiliated Lumbermen signs first members in Virginia, Georgia and Louisiana

GRAND RAPIDS, MICH. -- The addition of about 140 lumberyards gave Progressive Affiliated Lumbermen a 14 percent increase in wholesale sales in 1999, and the buying group is hoping for a repeat performance this year.

With its 285 shareholders now operating 376 locations in 15 states, PAL, based here, is looking to expand farther southward and eastward.

PAL signed its first members in Virginia, Georgia and Louisiana last year. In 2000, it plans to fill the gaps in its existing markets and extend its reach to other areas east of the Mississippi and farther south than it has traditionally done business, said marketing manager Nelson Wood.

"We've simply been following the need," Wood said. "Often, a dealer will call us wanting to join PAL, and that will lead us to a new area."

In 1999, Progressive Affiliated Lumbermen strengthened its alliance with Orgill, allowing both companies to become a more complete source for dealers.

The PAL Advertising Agency debuted some new services last year to benefit its members. Through a preferred customer program, PAL helps dealers maintain and analyze a database of loyal customers, to whom they can offer special discounts and bargains. A recently introduced in-store signage program provides dealers with Microsoft Word templates and saves them from having to invest in sign-making materials and machinery.

"The templates work with their existing computer systems, so all they're paying for is the paper," said PAL advertising manager Ken Crandle.

Earlier this year, PAL held its best-attended buying show in recent years. The four-day event was held online at www.palshow.com in March and drew twice the number of dealers that the co-op has traditionally seen at its spring market, although there was a decline in the number of exhibitors owing to skepticism about the viability of an online buying show.

Wood conceded that some PAL members said they would rather speak face to face with their suppliers than conduct business online, and that others complained about the amount of typing required to place orders.

But Wood said the benefits of a virtual show outweigh the drawbacks, and most of the dealers' concerns can and will be addressed. PAL still plans to host one live show each year.

"By reducing the travel requirement to once a year, we hope to encourage more show participation by both suppliers and dealers," said Progressive Affiliated Lumbermen's president, Bill Danzig.