"principal sources." This constitutes an average of four major suppliers 

 for each ultilization plant. 



Measurement of the volume purchased was made more frequently by 

 the seller (45 percent) than the buyer (35 percent). Only four percent 

 of the volume was measured by Association 5 graders and 16 percent was 

 measured by both buyer and seller. In contrast the purchasing company 

 did most of the grading, 55 percent of the volume. Fifteen percent was 

 Association graded and 30 percent was graded by the seller. Sawmill 

 owners are not prepared to grade their lumber in New Hampshire but 

 out-of-state mills are evidently doing some grading. Manufacturing prac- 

 tices are strongly influenced by lumber grade since poor quality process- 

 ing shows up as grade defects. More grading of New Hampshire lumber 

 could help improve the manufacturing quality. 



Only 17 percent of the industrial plants determined the lumber price 

 of their purchases. Seller's prices were accepted by 48 percent and com- 

 promise prices by 26 percent of all plants reporting. Nine percent said 

 they used a price from published reports. When lumber was purchased 

 from a sawmill owner the price was determined twice as often by the 

 seller as by the purchaser. The same was true of purchases from market 

 intermediaries. 



Eight plant owners reported that they did considerable "shopping 

 around" to obtain the lowest price for the desired quality. Two reported 

 use of a bid system to some extent and several reported that price deter- 

 mination depended upon the seller. Some lots were bought in one manner 

 whereas at another time the price might be determined in one of the 

 other ways. Sawmill owners reported that they knew about the "going" 

 price and sold accordingly. Generally they had a minimum below which 

 they would not sell. 



Table 15 shows that the small plants did most of the "shopping 

 around" and less actual price determination. The largest plants usually 

 set the price they would pay and were successful in obtaining desired 

 lumber volume and grades. These latter plants represent a large steady 

 market and thus a good selling opportunity for sawmill owners and 

 marketing agencies. 



5 National Hardwood Lumber Association. Chicago 5, Illinois. 



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