Document ppbB7wg2Zo6Da6RoBDEgbBNeE

GEORGE M. HAMMOND Manager NATIONAL LEAD PAINT DIVISION South Atlantic Sales District 0 $hf6 20 August 1970 Mr. J. A. Southworth Eastern Regional Manager National Lead Company ., N. .211 CroGsways Parle Drive Woodbury* L, 1 Y 11797 REs PEHN PAINT & WALLPAPER COMPANY NORRISTOWN - LANSDALE, PENNA, MATE. HARRY AND SAM SANDLER, OWNERS Dear Jacks The above Company was appointed exclusive franchise dealer* Blue and White Paint* 1947. Sara Sandler and wife, Ida, took over management of Lansdale operation. Operation included retail, wholesale store and large ware house area utilized for large stocks of wallpaper and serving as a distributing warehouse (Elliot Paint & Varnish, Chicago - consigned stock?) They serviced dealers in Pennsylvania, Southern Mew Jersey, Delaware and part of Maryland. Ida and Sam Sandler separated in 1951. Sam opened United Paint and Wallpaper September, 1952, with Dutch Boy paint as his major line. In addition he stocked the Elliot line. Ida Sandler became sole owner and operator of Penn Wallpaper and Paint, subsequently marrying Elliot Sales Representative, Mr. Lou Snyder. Sandler's two daughters raind with their mother. Sam Sandler died December, 1969. A subsequent power play developed for the proprietorship of Sam Sandler's paint and wallpaper operation, located Lansdale Shopping Center, 2 South Broad St., Lansdale, Penna.. Four parties were interested in securing this business. Ida and Lou Snyder, with the aid of the two Sandler daughters (executrix), were successful (February, 1970). Ida and Lou Snyder requested the Dutch Boy paint line be continued in conjunction with Elliot, The above back ground is certainly not conducive with future growth of .Dutch Boy .paint under this new setup,. However, the decision was made permitting them 2607 E. Cumberland Street, Philadelphia, Pa. 19144 - (215) 426-0600 Division of National Lead Company continued. . . . . N 27458 Page 2 Na t io n a l Le a d Co mp a n y South Atlantic District to continue with the Dutch Boy paint line because of the followings A. We had no other prospects in the area. B Notwithstanding their obvious allegiance to Elliot Paint and Varnish they promised to show a normal growth in Dutch Boy paint sales* THEY REQUESTED'A CONTRACT FROM NATIONAL LEAD COMPANY INDICATING NO OTHER DUTCH BOY DEALERS WOULD BE OPENED IN THE LANSDALE TRADING AREA. This was obviously denied by me. I pointed out that an immediate increase and continued loyalty in selling Dutch Boy paint would pre-empt any'other Dutch Boy dealers being appointed. Finneran & Haley, Cook and Dunn, were discontinued from their inventory. Notwithstanding the cancellation.of the above two lines of paint, our sales began a slow but steady decline. Furthermore, Dutch Boy Dry Swift Enamel was being discontinued (no need for two lines of quick drying enamel). They didn't purchase the Acclaim Line because of their concentration on the retail trade and because of the damage it might do to the Elliot Line (my opinion). A painter meeting was requested, turned down because they wanted this meeting to be a 50% Dutch Boy - 50% Elliot. Additional advertising monies were allocated them under the new ownership for promotions. This was stopped because their first two promotions featured a 50-50 space allocation, Dutch Boy - Elliot. (As much as $2.00 a gallon spread in Elliot's favor). John Ringhoffer and I spent a day in Lansdale canvassing the area. Results, Lansdale National Paint Center, well organized, financed, paint and wallpaper store, operating in center Lansdale. They have captured a good share of the PMI business and from our survey, showed that this Company was doing the paint business. Haste was the essence because they had been negotiating the past three months with a paint manufacturer, as a matter of record, the officials were due in the store the following evening to pick up the opening order. In view of our presentation they held off making any decision until Tuesday, August 18th when we were scheduled to meet with them. The order was written up that. evening, all major categories (1500 gallon truck with a November 1st dating). December they will take in a much larger order Tinder our spring dating terms. It is thair intention to make Dutch Boy their major paint line, discontinuing Devon and Dupont with, the exception of products from each of the above companies they feel necessary to maintain. Fall promotion has si- ... HI 000041833 Page 3......................... Na t io n a l Le a d Co mp a n y South Atlantic District * been planned and a large PMI meeting scheduled early in 1971. CONCLUSIONS% In such matters I personally contact the dealer and advise them of our decision, however Tuesday evening the meeting ran later than anticipated (10 P.M,) precluding the possibility of seeing them that evening at their home. Wednesday# a Painter meeting Clambake in Allentown again ran later than expected, hence my plans to visit the# on ary way home last evening were cancelled. Acknowledging the fact that such news travels quickly I phoned Mrs. Ida Snyder (August 20th, 10 P.M,) advising our decision. Furthermore, have agreed to meet them at their earliest convenience. We have indicated to our new Dutch Boy dealer, Lansdale National Paint Center, that it is our intention to continue with United Paint and Wallpaper as a Dutch Boy dealer. United Paint and Wallpaper purchases; 1968 (12 months)...............$19,612 1969 (12 months)...............$24,258 July and 7 months, 1970........$10,554 July and 7 months, 1969........$12,776 (Percentage decline - 17%) August, 1969 purchases................... $ 2,174 August, 1970 (thru Aug. 20th).$ 800 Very truly yours, GMH/jb CC: Mr. CC: Mr. L3-R3-7 K.C. E. L Specht Beenfeldt George M. Hammond, Manager South Atlantic District NL 000041834