Co-op unveils new paint, garden formats

Home Channel News, Nov 6, 2000 by Brae Canlen

Dragoo was waiting for some news from the co-op's lumber buyer, Ken Meyer, who soon showed up carrying four quotes. For an order of 1,000 board feet of yellow pine, there was a $17 spread between the cheapest and the most expensive. Dragoo, who was buying a truckload, wanted to give one of the suppliers the chance to match the low bid. "There's never a problem with their shipments," Dragoo noted. He dispatched Meyer, who came back looking pleased.

"He took a pretty steep counter [offer]," Meyer reported. "And I got Jan. 5 payment terms."

Dealers at the convention could speak directly with suppliers about their prices, and a few prefer to do it that way. But most, like Dragoo, prefer a more courtly approach. "I'll deal with [the supplier] socially and ask him about his jogging, but I go through Ken to get the best deal," he explained.

Meyer's job is to negotiate terms and prices for Do it Best's members while keeping the co-op's suppliers relatively happy. "Our members don't have to come here to buy their lumber," said Meyer, rattling off the many ways and places to buy building materials. But Meyer, who met with the 21 other Do it Best lumber buyers at 6:30 that morning to compare notes, knew who was offering what on that particular day. As Dragoo soon discovered, Meyer could work his connections -- and his co-workers' connections -- to fill a hole on a member's laundry list.

At another table, Todd Hixson, the co-op's divisional manager for lumber and building materials, was pitching Do it Best to someone from another buying group. The new prospect, who requested anonymity, was clearly conflicted about making the switch. "I pride myself on being loyal," he said. "This is very traumatic for me." At the same time, this lumberyard owner, whose Texas unit does a fair amount of consumer business, was attracted to Do it Best's offerings in both hardlines and commodities.

"We're the core of [Do it Best], and we're not going anywhere," said Hixson, referring to TruServ's recent decision to sell its lumber and building materials division to Builder Marts of America. As Hixson explained the specifics of adders, rebates, block buys and reloads, the dealer commented on the overall friendliness of people at the market. He also liked the tables and chairs in the lumber trading section. "At my other co-op, you tell them what you want and they just point to the [suppliers'] booth," he said.

Again and again, people wandered into the blue square to say hello to someone or introduce one colleague to another. Some had already called their buyers the week before to place orders. Others just came to check out the deals; they'd follow up on the following Monday if they heard something good. Mostly, they wanted to speculate on how long lumber prices would continue to drop, or whether the Midwest market would tank like the South has done.

The lumber trading mantra -- "It's all about relationships" -- got repeated several times for the benefit of visitors. When Dragoo and Meyer couldn't find any 2x4x14s of a certain quality and price, they consulted Pat Yorke, the western spruce buyer for Do it Best. "We have some in rolling stock," Yorke said. "I know what's in there because I bought the [railroad] car."