rhasc large amounts in single orders and who provide a higli proportion 

 of the total husiness, thus accounting in large j)art for the correlation 

 hetween retailers' gross sales and delivery distance. The average delivery 

 distance for all classes is 25 miles and is represented hy those retailers in 

 the 301-400.000 dollar sales class. 



Size Classes 

 (thousands of dollarsi 



Over 1000 



601-1000 



401-600 



301-400 



201-300 



101-200 



51-100 



1-50 



Average all yards 



Miles 



FIGURE 5. AVERAGE DELIVERY DISTANCE IN MILES FOR RETAIL LUMBER YARDS 

 BY GROSS DOLLAR VOLUME SALES CLASSES. 



Advertising Expenditures 



Ahout 49 percent of the retail yards spend hetween one and two 

 percent of their gross revenues for advertising (Figure 6). Another 29 

 j>crc(^nt indicate that they spend one j)erc<*nt or less while six percent 

 of the yards spend nothing on advertising. Only 14 percent of all firms 

 spend over two percent of their gross sales in hringing their products 

 hefore the puhlic. There appears to be no significant difTerences in ad- 

 vertising expenditures hy the various yard size classes. Advertising ex- 

 j)erts feel that two percent of gross sales is a sound advertising hudget 

 and less than one percent is almost certain to he inadequate, regardless 

 of dealer size or location.^ 



' Woyerh;nis«T (lomijany. How to Plan Advertising for Profit: A management guide 

 for retail lumber dealers. Loose leaf, p. 16. 



12 



