Figure 22 indicate!? the order of iiiiportanee of economic and insti- 

 tutional factors in the purcliase of softwood hind)er hy the Northeastern 

 Region retailers. Margin of profit and availability are the major factors 

 affecting purchases. They are considered important hy almost 100 per- 

 cent of all retail yards studied. Contractors' specifications and other 

 economic and institutional factors are considered important hut to a 

 much lesser degree. There are no apparent differences in the factors 

 considered important hy large yards as compared to those considered 

 important by small yards. 



The most inijjortant economic factor influencing purchase of eastern 

 lumber by retailers is immediate availability. Most retailers report that 

 possible margin of profit consistent with the physical requirements for 

 the material is a very important consideration in any lumber purchase. 

 Retail vards purchasing Canadian and southern lumber consider margin 

 of profit to be the predominant factor influencing their decision. Imme- 

 diate availability is second. The use of building codes, lumber grades 

 and government loan building specifications tend to require lumber to 

 meet the physical factors. 



ECONOMIC AND INSTITUTIONAL FACTORS 



Sales effort 



Building codes 



Architect's 

 specifications 



Home owner's 

 specifications 



Unspecified 



Contractor's 

 specifications 



Availability 

 Margin of profit 



100 



Index 



FIGURE 22. INDEX OF RELATIVE IMPORTANCE OF ECONOMIC AND INSTITUTIONAL 



FACTORS AFFECTING THE PURCHASE OF SOFTWOOD LUMBER 



BY REGIONAL RETAIL YARDS. 



29 



