Chilean Port Status, 4/26

Our ForAction team in Chile is reporting the following:

“The actual situation of the port is:

– San Vicente , working to 100%

– Lirquen, working to 100%

– Coronel, working to 100%”

Great to hear that things are back to 100% at all three ports…

BOOM! Here Comes the Fiber!

Surry, VA Plant: Boats are still on schedule to arrive into ports this evening, and unload in the morning.  All containers have been cleared and trucks will be standing by to pick up as soon as containers are off-loaded.  We have raw material for three weeks of WindsorONE production due to arrive between this evening and Friday evening; and we currently have an additional six weeks of raw material on the water.

The Surry, VA Crew will be coming in tomorrow, and working through the weekend so that we may begin to ship WindsorONE next week, at 100% capacity.

Surry, VA plant raw material pipeline is full and intact!

Willits, CA Plant: Currently manufacturing, will be a few loads short in shipments this week, and back to 100% capacity of WindsorONE shipments next week. 

Willits, CA plant raw material pipeline is full and intact! 

Our ForAction team in Chile is running strong, and we expect no future disruptions in their supply.

We’ll be playing “W1-order-catch-up” over the next few weeks, yet looking forward to a return to normal shortly thereafter.

In Solidarity,

Craig

What’s in Your Sales Toolkit?

Miller Heiman recently released their excellent Annual Sales Best Practices Study, where they detail the best practices of world class selling organizations.

You can find a link to the executive summary of the report here: http://www.millerheiman.com/2010research

Some of the study’s key highlights include:

  • 97 percent of World-Class Sales Organizations know why their customers buy from them.
  • World-Class Sales Organizations are four times more likely to consistently utilize comprehensive prospecting plans.
  • 97 percent of World-Class Sales Organizations have an organizational structure that allows them to adapt to customer’s changing needs.
  • World-Class Sales Organizations are four times more likely to spend adequate time coaching their salespeople.
  • 90 percent World-Class Sales Organizations agree that their salespeople have a solid understanding of our customer’s business needs.
  • World-Class Sales Organizations are four times more likely to have a formal process for executive-to-executive selling.

We’re Miller Heiman clients, and they’ve served us VERY well over the years; I’m more than happy to speak with any of you regarding our experiences.

In Solidarity,

Craig

Chile: Rebuilding The Country, an Update

Chile’s government shared it would take the country up to four years to recover from the earthquake.  Chile’s new President Sebastian Pinera is in charge of the country’s earthquake recovery work, and has prepared an emergency bill and a reconstruction law.  Pinera has estimated reconstruction will cost approximately 30 billion dollars and plans to build thousands of makeshift houses and tents, and dozens of hospitals to accommodate affected regions. Damaged roads, bridges, ports, airports, and other infrastructure are also in the process of being repaired.  Swiss Re, the world’s second largest reinsurer, has estimated that the earthquake in Chile may cost insurance companies an additional 7 billion dollars.

The reconstruction program will be implemented in three phases.  The first, called the emergency reconstruction period, has ended in late March (took 30 days to complete).  The second, the winter reconstruction period, will primarily be for the re-settlement and heating for the affected people during winter time.  The final phase will focus on reconstruction throughout the country, and is expected to last four years.  According to Chile’s Interior Minister, these costs will be covered via five financial sources: fiscal austerity, state savings, donation from private sectors, public bonds, and tax adjustment for big companies.

Supergenius… BOOM!

Check out this Supergenius referral I just received from Chris Freeman of Ganahl Lumber:

“Expectations are completely subjective to ones outlook on life.  Some set their expectations too high, others too low.  Some may have an infinite number of expectations, while others have no expectations at all.  I walked into the Supergenius Conference with high expectations.  The caliber of presenters, and the content covered, appeared to have the settings of an amazing conference.  The Supergenius not only exceeded all my expectations, but WindsorONE’s post-conference round table was the rich chocolate icing on the cake.”

I spoke to Andy Sernovitz today, and it sounds like Supergenius in NYC is going to be even better!

More details HERE.

Making Up Lost Revenue from the “Tough Two”

So, here’s the Big Idea…

Attend the Supergenius Conference with us, and you’ll walk away with a BOATLOAD of ideas that will help you increase your revenue throughout 2010, and beyond.

We did from the last one we attended; as did Ganahl Lumber, Riverhead Building Supply, Dunn Lumber, Jackson Lumber and Evanston Lumber.

Heck, as proof of that, they invited us to speak about WindsorONE as a “case study” success this go around.  Go figure, WindsorONE along side of Dell, National Geographic, and Maker’s Mark.  Okay… well, maybe myself and Maker’s Mark makes sense.

Conference is July 20th in NYC.  Passes aren’t cheap, but you don’t need to worry about that since we’re buyin’.

Of course, this is for W1 Dealers only; yourself and a colleague or two, pending the response we get.  Gaspedal shared they’d work on a group rate for us, but we’re limited on the number of people.

Hit me via e-mail to confirm your spot: craig@WindsorONE.com

In Solidarity,

Craig

The Tough Two…

This week and next will be the damaging two weeks for our customers due to the Chile 8.8 Earthquake.

Other than two roll-over trucks from last week, we will have zero WindsorONE shipments from our Surry, VA plant this week and next; and the Willits, CA plant will have a handful of WindsorONE shipments pending domestic raw material.

With no raw material, plant crews will unfortunately be at minimum; however, we will be aggressively prepping the plants to process raw material arriving the end of week of 4/12, where we’ll work through the weekend for manufacturing and shipments of WindsorONE the week of 4/19.

Additionally, we’ll work overtime the weeks of 4/19 and 4/26 in order to maximize WindsorONE shipments to our W1 Dealers.

While we’re doing everything within our control, we’re aware that our customers are still losing revenue from lack of WindsorONE shipments.

“Great Blog, Craig, the W1 Insights have been excellent.  However, I’m still out of 1×6…”

We understand that, and would appreciate the opportunity to actually DO something in that regard.

Correct, we can’t make up for lost shipments; however, we’re hoping we CAN find a way to make up for it by helping to increase your company’s overall sales (not just W1) throughout 2010.

Give us a few days on exactly that concept; we’re brainstorming some things.

Strong revenue generating idea/s for W1 Dealers coming soon…

In Solidarity,

Craig

Mention + WOMM Book = Friday Promo

We just got a mention on Andy Sernovitz’s Blog:

[click logo above to read blog mention]

Mr. Sernovitz is the author of the excellent “Word of Mouth Marketing Book” – and he’s one of the most well respected word-of-mouth marketers, consulting for big brands like Bosch, Hitachi, Dell and HP.

Great to read this morning that Andy feels we’re on the right path with “W1 Insights: The Flynn Report!”

Leave a comment below, or drop me an e-mail (craig@WindsorONE.com), and I’ll send you a copy of Andy’s Book; and past that, if you come up with a cool word-of-mouth marketing campaign, we’ll help you sponsor it! (fr W1 Dlrs)

Perhaps we’ll be able to work together to make up some lost sales?

Respectfully,

Craig

Price Sheets Live

W1 Dealers:

Price Sheets with the 7%-8% increase have been completed; you’ll hear from Jan Hull and/or your Sales Director possibly this evening or tomorrow some time. 

(I say “possibly” b/c those of you in the Northeast might have a delay given that Sean Pasell’s house is almost under water, he’s in Westerly, RI; for those of you looking for extra credit, stop by his place and help the guy sand-bag!)

The day-long delay in getting the price lists out is completely my fault, for that I apologize.  And we still have not had time to re-do the Molding Price Sheets, which should be completed in the next day or so.

Please don’t hesitate to hit me via e-mail (craig@WindsorONE.com) this evening should you need a copy of W1 Board pricing right away.

In Solidarity,

Craig (707-321-8889)

The Big Kahuna Isn’t So Big

The Windsor Mill ForAction team has done an excellent job with our raw material procurement in Chile; as a result, the WindsorONE price increase will stay in the single digits. Excellent work down there ForAction Team.

WindsorONE price increase: 7%-8% (fob mill), pending thickness/width of sku.

Approximately two-thirds of our total raw material is supplied to us by strategic partners, and one-third we source on the open market.  To date, our partners have been able to hold log prices to us, which is the reason for the single digit increase in price.  The other one-third of material that we procure in the open market has seen significant increases in cost, both in the Radiata we’ve purchased, and the domestic pine (this will be used at the Willits, CA Plant for West Coast shipments).

Please give us the day Monday to prep new price lists for each of you, and you should have them from us Tuesday morning.

The price increase will take effect on all shipments leaving the week of April 19th.

The next question of course is will WindsorONE pricing be reduced should market conditions settle, to which the answer is an absolute “yes.”  However, it’s going to be an interesting year, and we just can’t predict right now exactly how things are going to play out.  Here are some additional market insights in that regard:

  • Significant manufacturing capacity temporarily and permanently reduced at Arauco, CMPC and other large producers due to earthquake;
  • Chilean port restrictions and availability of ships will exacerbate the supply causing market price spikes, and there may be further pressure due to strikes at ports in Finland, which could put added pressure on ability to reserve space vessel in Chile due to competition w/ pulp;
  • 30% of NZ sawmill capacity is gone in the last 12 months due to the prices low last year;
  • Australia has a strong economy with limited export availability;
  • China receives 50% of Radiata supply from Chile and 50% from New Zealand, as a result of the inability to purchase what they need from Chile, they’re aggressively purchasing from NZ and elsewhere;
  • US domestic alternatives in weaker supply, and significantly higher prices;
  • Alternative species, such as EWP and Poplar 20% higher than Radiata;
  • Brazil, Argentina have little availability in blanks and block;
  • Start-up costs in Chile will force price increases to cover inefficiency caused by uninsured events;
  • Reinvestment in Chile plants and equipment will require higher prices to substantiate investment and returns;
  • Chilean Peso 10% stronger over the past year;
  • Brazilian Real 25% stronger over the past year;
  • Worldwide freight rates on the rise.

As always, please do not hesitate to contact me directly should you have any questions.

In Solidarity,

Craig