Eastern White R/ne Lumber Hand fed by 99 



n 



53nn 



Who/eso/crs 



T 







44M/1 



L 



^ ° "~? Construct/on 



(TonsuMcrs 



| _ y/V/Y _ 



4-&MM 



^L 



MarwfacTun'flg 



^5~& MM 

 A I 



,/QMS£_ 



Figure 1. Estimated distribution of white pine lumber from 99 sawmill owners to construction 



and manufacturing consumers, 1956. Figures are in millions of board feet 



which is abbreviated by the symbol MM. 



1 No information obtained on 3MM. 



best price offered was the main basis of their sales. Another group of 

 16 owners in the lower three production classes stated that immediate cash 

 payment was of highest importance. Even though 25 of the sawmill owners 

 operated as retailers, six indicated that the buyer's reputation and credit 

 standing were as important as the sales price. 



Why only 17 percent of the sawmill owners should use price as the 

 main basis of their sales can be partially explained. A recent study showed 

 that 60 percent of the sawmill owners had been in business over 10 years.* 

 These owners had time to sort out the buyers with favorable price and 

 credit terms and establish a long-run sales policy. Sawmill owners con- 

 tacted in Maine and New Hampshire had an opportunity to sell to more 

 than one buyer — and did so, as shown by the sample statistics given in 

 Table 7. Nearly three-quarters of the lumber producers visited sold to more 

 than one buyer; most sold to two to five different buyers. 



The 1956 lumber market conditions were favorable for sawmill owners. 

 Over 100 different wholesalers and manufacturers bought from the sawmill 

 owners sampled. In addition, retail lumber yards in nearly every town in 

 New England offered extensive sales opportunities. Despite the good market 

 for white pine lumber, little effort was made by sellers to find additional 

 markets for their products. Previously established marketing contacts were 

 continued. Another contributing factor was that lumber producers usually 



* L. C. Swain and 0. P. Wallace, "Buying Practices of Wood-Using Industries in 

 New Hampshire", N. H. Agr. Exp. Sta. Bui. 433. 



10 



