For most of the industry, May was a quiet sales month due to a lagging demand and, particularly on the East Coast, bouts of soggy weather certainly didn’t help matters. While dealers and lumber mills have been enduring the brunt of the lackluster market, distributors seemed to motor along reasonably well as they supplied a steady stream of stock to dealers who opted to cherry-pick their needs locally in lieu of ordering truckloads from the mills. Reports varied widely whether lumber dealers were overstocked and had no need to buy or were underbought and playing a game of risk, waiting for the market to bottom during what is usually a busy period (and at a time when trucking has been particularly problematic). Traders focused on proclaiming the latter in the hopes that they could instill some doubt and fear in lumber buyers’ minds (and therefore stimulate sales), but it became apparent as the month progressed that a soft-demand, over-supplied market was at hand as offers were abundant and more aggressively priced as they went unsold. Nonetheless, as Memorial Day approached and the weather improved, activity did pick up. Whether or not it will be sustained has yet to be determined but, as of print, pricing is firming as buyers appear to be jumping in to replenish or to cover their needs for the next 30-45 days. As many lumber mills conduct scheduled shutdowns during the summer for retooling and vacations, this is a prudent move, especially in anticipation of longer lead times due to the dearth of truck drivers and rigs. We anticipate that pricing for June will flatten and firm until a supply and demand equilibrium is reached and potentially tick upward by month’s end.
When sales slow down, there’s a desperation that sets in that usually brings out some unsavory behavior in salespeople, not the least of which are untruths, withholding information and likely the most common, pressure tactics. Some people handle pressure tactics better than others, in that they aren’t easily persuaded to believe that the “deal” will no longer be available after “x” date, or that there’s a line of other interested customers standing behind you, waiting to cut a check for their once-in-a-lifetime deal the moment you walk away. As contractors, you are often inundated with making snap decisions and must conduct business with salespeople who are trying their hardest to obtain business from you. Most of us can recall times (particularly when we were young) when we were pushed to decide, pressured to sign on the dotted line and, in the end, commit to a situation that we eventually come to regret. Who needs that kind of hassle from a supplier? The title “Contractor” has in its origin the word “contract” which is, by definition, “a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law.” A contractor consigns work that is to be executed by the terms of a contract with a customer while simultaneously signing off on contracts from suppliers for goods and services that are necessary to complete that work. We know that that is a tremendous amount of responsibility, pressure, and reputation at stake and that you have your hands full trying to coordinate all that needs to get done to get the job done. No one typically wants to sign off on anything, especially when there is risk involved. However, good business practices require contracts: it’s a “meeting of the minds” that helps to ensure that both parties acknowledge one thing in return for another, and we are staunch believers that they are necessary to help ensure that things go as intended. We deal with complicated products that are usually going into multi-million-dollar homes being built by very discerning professionals, and we must do everything within our power to ensure that nothing jumps the tracks during the process. It’s important for you to take the time to review, understand and consult all necessary parties before signing off on a contract, which is why we would never, under any circumstances, pressure you into signing off on orders or services before you are ready to do so. Our sincerest intent is to ensure that you have a full understanding of what our commitment is to you, which is to provide the correct products that you need for your job at a price and time that is mutually agreed upon. That is one of the big reasons that we honor our quotes for 30 days: you need the time and space to review the quote to ensure that it is to your liking. The last thing we want is for you to put your John Hancock on a Shepley quote without reading, understanding and 100% agreeing with its specifications, terms, and conditions. So, like the many salespeople we encounter in our daily lives that put on the “hard sell” in order to close the deal (looking at you, lumber traders), with earnest we want to be your supplier and sell our material to you but, unlike many of them, we want you to have all the right material, at the right time and at the best price only after you’ve carefully reviewed our offering and are ready to do so, without any pressure.
We are the “Partners to the Pro’s,” with emphasis on the word “Partner,” as we fully realize that our success depends upon your success: it is our job to do all that we can to help our “Pro” contractor-partner to accomplish that. Please do not hesitate to reach out to us with any questions or concerns about the quotes we supply to you, or even for ones that we don’t. We are happy to help discern between apples and oranges, identify actual market conditions, and discuss what, in our opinion, would be best for you and your project. Thank you for your business!