How to Increase Lumber Yard Profit Margins by Improving Inventory Turns

Operations + Inventory Turns

The Quick Answer: Lumber yards increase profit margins operationally by improving inventory turns through category-specific targets, reducing shrink with process controls, managing special orders with clear policies, and implementing exit plans for slow-moving stock.

Margin Isn't Just Pricing, it's What You Keep

Improving turns and control is one of the fastest ways to protect profit without changing our customer-facing pricing.

1) Identify Your Margin Drains Start with a simple inventory health review. Create a "watch list" of the top 100 items by on-hand value and items with no sales in 90+ days. Review this weekly.

2) Set Turn Targets by Product Type The problem is treating all inventory the same.

  • Commodities: High turn, tight replenishment.
  • Specialty: Lower turn, order-to-demand controls.
  • Seasonal: Pre-buy with a markdown schedule exit plan.

3) Reduce Shrink with Process Gates Shrink usually comes from repeatable failures. High-impact fixes include requiring photos for damaged receiving, enforcing location discipline (no "temp piles"), and cycle counting top-value categories weekly.

4) Control Special Orders Special orders are profitable until they aren't. Protect margin with clear deposit policies, documented restocking rules, and order confirmation with full product specs.

5) Use Exit Plans to Convert Slow Movers Slow inventory is a profit problem. Use contractor bundles, internal spiffs, or job-lot promotions to move aged stock. Waiting rarely improves the outcome.

Next Step Looking for operational strategies that support stronger purchasing decisions and cleaner inventory? Explore cooperative resources built for independent dealers.

Contact Us

Recent

Compete with Big Box Lumber Stores

How to Compete with Big Box Lumber Stores on Marketing (Without Outspending Them)

We’re dealing with price volatility, uneven demand, and customers who compare us to big boxes in seconds. Our best lever isn’t “charge more.” It’s pricing with intent, supported by a mix and offers that protect gross margin. You’re not going to outspend a big box on advertising. You can out-target them. The smartest answer to

Operations + Inventory Turns

How to Increase Lumber Yard Profit Margins by Improving Inventory Turns

The Quick Answer: Lumber yards increase profit margins operationally by improving inventory turns through category-specific targets, reducing shrink with process controls, managing special orders with clear policies, and implementing exit plans for slow-moving stock. Margin Isn’t Just Pricing, it’s What You Keep Improving turns and control is one of the fastest ways to protect profit

how independent lumber yards compete

Compete with Big-Box Using Local Authority + Contractor Marketing

Why local authority is a real competitive advantage Big-box wins on national scale. YOU win when you become the default local source for pros. 2026 Trends: Contractors are consolidating vendors to cut admin time. They want suppliers who handle packages, takeoffs, and schedule-based deliveries. 1) Own the map: your Google Business Profile is a lead

Scroll to Top

Privacy Policy

Information regarding our policy on collecting personal information from LBM Advantage.com users:

On some pages of the LBM Advantage corporate website we require the submittal of personal information including, name, address, phone number, fax number and email address. If you submit this information to us via our website, we may use it to send you information regarding corporate events, new LBM Advantage programs, etc.

We may also use this information to evaluate site usage in order to personalize your LBM Advantage.com experience.

LBM Advantage automatically receives and records information on our server logs from your browser, including your IP address, cookie information, and the page you request. LBM Advantage uses such information for the following general purposes: to customize the content you see, fulfill your requests for products and services, improve our services, contact you, conduct research, and provide anonymous reporting for internal clients.

Mobile numbers, which LBM Advantage may collect for multifactor authentication purposes, will not be shared or sold.

Although we take the rightful measures to shield the information collected against unsanctioned publication, we do not guarantee that the personal information that we collect will never be disclosed in a manner that is contrary to this Privacy Statement.

We have also put together the appropriate physical, electronic and managerial procedures to safeguard and try to prevent unsanctioned access and maintain the security of any data we collect via our website.

We may periodically update our online privacy notice. It is suggested that from time to time you check back and review our policy so you will be familiar with the information we collect and how we use it.

Terms & Conditions

Last updated: January 28, 2025

Please read these terms and conditions carefully before using Our Service.

Interpretation and Definitions

Interpretation

The words of which the initial letter is capitalized have meanings defined under the following conditions. The following definitions shall have the same meaning regardless of whether they appear in singular or in plural.

Definitions

For the purposes of these Terms and Conditions:

  • Affiliate means an entity that controls, is controlled by or is under common control with a party, where “control” means ownership of 50% or more of the shares, equity interest or other securities entitled to vote for election of directors or other managing authority.

  • Country refers to: New York, United States

  • Company (referred to as either “the Company”, “We”, “Us” or “Our” in this Agreement) refers to LBM Advantage, 555 HUDSON VALLEY AVENUE.

  • Device means any device that can access the Service such as a computer, a cellphone or a digital tablet.

  • Service refers to the Website.

  • Terms and Conditions (also referred as “Terms”) mean these Terms and Conditions that form the entire agreement between You and the Company regarding the use of the Service. This Terms and Conditions agreement has been created with the help of the Terms and Conditions Generator.

  • Third-party Social Media Service means any services or content (including data, information, products or services) provided by a third-party that may be displayed, included or made available by the Service.

  • Website refers to LBM Advantage, accessible from https://lbmadvantage.com

  • You means the individual accessing or using the Service, or the company, or other legal entity on behalf of which such individual is accessing or using the Service, as applicable.

Acknowledgment

These are the Terms and Conditions governing the use of this Service and the agreement that operates between You and the Company. These Terms and Conditions set out the rights and obligations of all users regarding the use of the Service.

Your access to and use of the Service is conditioned on Your acceptance of and compliance with these Terms and Conditions. These Terms and Conditions apply to all visitors, users and others who access or use the Service.

By accessing or using the Service You agree to be bound by these Terms and Conditions. If You disagree with any part of these Terms and Conditions then You may not access the Service.

You represent that you are over the age of 18. The Company does not permit those under 18 to use the Service.

Your access to and use of the Service is also conditioned on Your acceptance of and compliance with the Privacy Policy of the Company. Our Privacy Policy describes Our policies and procedures on the collection, use and disclosure of Your personal information when You use the Application or the Website and tells You about Your privacy rights and how the law protects You. Please read Our Privacy Policy carefully before using Our Service.

Links to Other Websites

Our Service may contain links to third-party web sites or services that are not owned or controlled by the Company.

The Company has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third party web sites or services. You further acknowledge and agree that the Company shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods or services available on or through any such web sites or services.

We strongly advise You to read the terms and conditions and privacy policies of any third-party web sites or services that You visit.

Termination

We may terminate or suspend Your access immediately, without prior notice or liability, for any reason whatsoever, including without limitation if You breach these Terms and Conditions.

Upon termination, Your right to use the Service will cease immediately.

Limitation of Liability

Notwithstanding any damages that You might incur, the entire liability of the Company and any of its suppliers under any provision of this Terms and Your exclusive remedy for all of the foregoing shall be limited to the amount actually paid by You through the Service or 100 USD if You haven’t purchased anything through the Service.

To the maximum extent permitted by applicable law, in no event shall the Company or its suppliers be liable for any special, incidental, indirect, or consequential damages whatsoever (including, but not limited to, damages for loss of profits, loss of data or other information, for business interruption, for personal injury, loss of privacy arising out of or in any way related to the use of or inability to use the Service, third-party software and/or third-party hardware used with the Service, or otherwise in connection with any provision of this Terms), even if the Company or any supplier has been advised of the possibility of such damages and even if the remedy fails of its essential purpose.

Some states do not allow the exclusion of implied warranties or limitation of liability for incidental or consequential damages, which means that some of the above limitations may not apply. In these states, each party’s liability will be limited to the greatest extent permitted by law.

“AS IS” and “AS AVAILABLE” Disclaimer

The Service is provided to You “AS IS” and “AS AVAILABLE” and with all faults and defects without warranty of any kind. To the maximum extent permitted under applicable law, the Company, on its own behalf and on behalf of its Affiliates and its and their respective licensors and service providers, expressly disclaims all warranties, whether express, implied, statutory or otherwise, with respect to the Service, including all implied warranties of merchantability, fitness for a particular purpose, title and non-infringement, and warranties that may arise out of course of dealing, course of performance, usage or trade practice. Without limitation to the foregoing, the Company provides no warranty or undertaking, and makes no representation of any kind that the Service will meet Your requirements, achieve any intended results, be compatible or work with any other software, applications, systems or services, operate without interruption, meet any performance or reliability standards or be error free or that any errors or defects can or will be corrected.

Without limiting the foregoing, neither the Company nor any of the company’s provider makes any representation or warranty of any kind, express or implied: (i) as to the operation or availability of the Service, or the information, content, and materials or products included thereon; (ii) that the Service will be uninterrupted or error-free; (iii) as to the accuracy, reliability, or currency of any information or content provided through the Service; or (iv) that the Service, its servers, the content, or e-mails sent from or on behalf of the Company are free of viruses, scripts, trojan horses, worms, malware, timebombs or other harmful components.

Some jurisdictions do not allow the exclusion of certain types of warranties or limitations on applicable statutory rights of a consumer, so some or all of the above exclusions and limitations may not apply to You. But in such a case the exclusions and limitations set forth in this section shall be applied to the greatest extent enforceable under applicable law.

Governing Law

The laws of the Country, excluding its conflicts of law rules, shall govern this Terms and Your use of the Service. Your use of the Application may also be subject to other local, state, national, or international laws.

Disputes Resolution

If You have any concern or dispute about the Service, You agree to first try to resolve the dispute informally by contacting the Company.

For European Union (EU) Users

If You are a European Union consumer, you will benefit from any mandatory provisions of the law of the country in which You are resident.

United States Legal Compliance

You represent and warrant that (i) You are not located in a country that is subject to the United States government embargo, or that has been designated by the United States government as a “terrorist supporting” country, and (ii) You are not listed on any United States government list of prohibited or restricted parties.

Severability and Waiver

Severability

If any provision of these Terms is held to be unenforceable or invalid, such provision will be changed and interpreted to accomplish the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue in full force and effect.

Waiver

Except as provided herein, the failure to exercise a right or to require performance of an obligation under these Terms shall not affect a party’s ability to exercise such right or require such performance at any time thereafter nor shall the waiver of a breach constitute a waiver of any subsequent breach.

Translation Interpretation

These Terms and Conditions may have been translated if We have made them available to You on our Service.
You agree that the original English text shall prevail in the case of a dispute.

Changes to These Terms and Conditions

We reserve the right, at Our sole discretion, to modify or replace these Terms at any time. If a revision is material We will make reasonable efforts to provide at least 30 days’ notice prior to any new terms taking effect. What constitutes a material change will be determined at Our sole discretion.

By continuing to access or use Our Service after those revisions become effective, You agree to be bound by the revised terms. If You do not agree to the new terms, in whole or in part, please stop using the website and the Service.

Contact Us

If you have any questions about these Terms and Conditions, You can contact us:

Kathleen O'Neill

In her role as Director of Risk Management, Kathleen O’Neill leads efforts to mitigate risks and ensure financial stability for the co-op. Her responsibilities include overseeing member credit and reload inventory levels, assessing the financial health of prospective members, and managing key financial instruments such as futures and swaps. With over 18 years of experience at LBM Advantage, Kathy brings a wealth of expertise in accounting, finance, and a comprehensive understanding of the co-op's operations. Her deep industry knowledge and strategic approach position her to play a pivotal role in safeguarding the financial health and long-term success of the organization.

Rodline Smith

Rodline Smith brings over a decade of accounting and leadership experience to LBM Advantage, playing a key role in upholding the company’s commitment to excellence in fiscal management. Before joining LBM Advantage, she served as Controller at AdWeek in New York City, where she developed expertise in navigating complex accounting environments. At LBM Advantage, she oversees all accounting functions, leading a team of accountants, specialists, and supervisors. In addition to managing audits, preparing and analyzing financial reports, and ensuring compliance with regulatory standards, Smith works closely with Chief Financial Officer Rich Kennealy to implement strategic financial initiatives that drive the company’s growth and operational efficiency.

Rich Kennealy

With over 25 years of experience in finance and operations, Rich Kennealy most recently served as Vice President of Product Finance and Analytics at Kaseya, a leading IT and security management software provider. Throughout his career, he has held executive roles at renowned organizations, including Red Hat, Qlik, Inc., and IBM, where he played a pivotal role in driving financial strategy and operational efficiency. Rich holds a Bachelor of Science in Environmental Engineering from Rensselaer Polytechnic Institute (RPI) and an MBA from Carnegie Mellon University.

Rob Andren

Rob Andren brings nearly 25 years of IT expertise and a decade of leadership experience to LBM Advantage, where he plays a key role in advancing the cooperative’s technology strategy. Before joining LBM Advantage, Rob served as Software Engineering Manager at Sunbird Software, where he led development teams in creating innovative solutions for data center infrastructure management. Prior to that, he was the Director of Information Technology at EXSIF Worldwide, overseeing global IT operations, infrastructure, and security for one of the world’s largest tank container leasing companies. Throughout his career, he has specialized in software development, IT strategy, cybersecurity, and process automation, driving efficiency and innovation within organizations. His expertise in leading cross-functional teams and implementing cutting-edge technologies has made him a valuable asset in optimizing business operations. Andren holds a Master of Science in Technology Management from Columbia University.

Joe Burlison

Joe Burlison is the Vice President of Southwest Operations at LBM Advantage, bringing decades of experience in the lumber and building materials industry. After earning a Bachelor of Administration from Baylor University, Joe began his career in retail lumber management before transitioning to Louisiana Pacific, where he oversaw mill sales and distribution in Houston, TX. His expertise in lumber futures grew during his time in a major energy company’s hedge program, leading to a 20-year tenure as a Southwest Regional Manager for a large building cooperative. A key driver of member acquisition and market expansion, Joe’s deep knowledge of the South-Central and Texas markets plays a vital role in LBM Advantage’s growth in the Southwest and beyond.

Making an Appointment

To make an appointment click the blue button on the “My Event” page of the virtual attendee hub.

Click Create Appointment at the Top Left Corner

Under Appointment Type Click Event Appointment

To Add Attendees you can scroll through the list or type in the search bar. Once you have clicked the attendees that you would like to invite to the meeting make sure to click the blue button at the button left of the screen

Then pick your time, add in a subject and description of the meeting and Send the appointment invitation by clicking the blue button at the bottom left corner of the screen.

**TIP** Make sure “Attendees can join this appointment virtually” is clicked. This is how the zoom link will generate in the invite

Once you’ve sent the meeting request, the recipient will receive an email like this. To accept or deny the meeting the recipient will be brought back to the virtual attendee hub solidify their decision.

After the appointment has been approved a zoom link will generate and you can add the meeting to your calendar. Zoom phone numbers are not provided as the system will not generate them, so you will need to use an alternate route in this situation.

I would still schedule the appointment and in the description of the meeting inform all attendees that you will be calling them or using an alternative approach.

Join our Advantage text list!
Sign up to receive important industry updates!
    Please select at least one group to join.

    Thank you for submitting

    Message and data rates may apply.
    Recurring messages subscription.
    Click to view Terms & Privacy.
    Available in USA and Canada.
    Powered by EZ Texting

    Covid-19 Response

    June 25, 2020 – Update

    The impact of COVID-19 continues to be felt by individuals and communities around the country. We hope our industry partners are faring well. In accordance with state and local requirements, Advantage has taken steps to protect the safety of its employees. 

    Currently no more than 40% of staff is working in our offices at one time, with the rest working remotely. Additionally, if outside visits are necessary, they will be scheduled by appointment only.

    General employee business travel has been suspended, but limited essential travel is permitted for our Member Sales team.

    There continues to be no disruption to daily business activity, and communication to traders and support staff remains seamless. We will continue to post updates as this situation continues to evolve.

    Kellianne Lundgren

    Kellianne Lundgren is the Human Resources Director at LBM Advantage, bringing 16 years of HR experience with expertise in recruitment, employee relations, performance management, and compliance. She is dedicated to fostering a positive workplace culture that encourages collaboration, growth, and continuous learning. Kellianne began her HR career in healthcare before joining ENAP as HR Manager. In 2020, she was promoted to HR Director. Kellianne holds a Bachelor’s in Business and an MBA from Mount Saint Mary College, along with PHR and SHRM-CP certifications.

    Tim Johnson

    Tim Johnson is the Vice President of Forest Products at LBM Advantage, based in the North Carolina office. With over three decades in the building supply industry, he brings extensive experience in sales, operations, and business development. Tim began his career in 1991 with Front Royal Environmental Services, managing construction projects as an N.C. Licensed General Contractor. In 1997, he joined Moore-Handley, where he successfully tripled sales in Eastern North Carolina. In 2003, Tim joined IBSA, a cooperative buying group, and held various leadership roles before becoming President & CEO in 2011. Under his leadership, IBSA thrived, culminating in its successful 2017 merger with LBM Advantage.

    Bob Carson

    Bob Carson is Vice President, Southern Operations. Carson is considered a veteran of the lumber and building materials industry, having worked in it for over 39 years. He began his career in 1974 at Howard’s Home Care Center as a buyer. Shortly after, he was hired by Allied Building Stores Inc. (ABS) as Merchandising Manager. Carson had a successful career at ABS where he held several progressive positions such as: Vice President Building Material Development, Vice President Operations, Executive Vice President and Vice President of Strategic Planning. In 2009, he opened his own lumber wholesale company. Carson joined ENAP as Vice President in January 2012, while their new office was opening in Monroe, Louisiana, to help establish growth in the Southern territory. He currently oversees LBM Avantage’s Monroe office and development in the region. Carson received a bachelor’s degree in Business Management from University of Louisiana at Monroe.

    Glenn Canino

    Glenn Canino is Director of LBM Advantage’s Building Products Division. He facilitates daily operational and sales function among LBM Advantage’s four regional offices, as well as helping to spearhead the company’s overall growth initiatives. Canino has over thirty years of industry experience with a multi-faceted background that includes home construction, corporate finance and sales. He has been with LBM Advantage since 2003, initially working in the Hardlines/Specialties Department, then overseeing the Kitchen and Bath department. Canino became manager of the Millwork group in 2009 and then Director of Building Products in 2018. Canino holds a bachelor’s degree in Business Administration, focused in Finance with concentrations in Financial Analysis and Real Estate from California State University, Fullerton.

    Dave DeJoy

    Dave DeJoy became LBM Advantage's President & CEO on August 19, 2024. Prior to that, he served as the cooperative’s Chief Financial Officer since 2021. Dave began his career at IBM in 1990 working in the accounting department for IBM Asia Pacific in Rye Brook NY. Over the next three decades, he held various roles at IBM in accounting, finance, sales operations, marketing, and human resources, with the majority of his career in sales operations, supporting IBM’s software sales teams. Most recently, Dave served as Director of Sales Operations for IBM’s Worldwide Cloud and Cognitive Software division. In that role, Dave was instrumental in providing direction into business success through pipeline metrics, forecasting, and resource planning on a global level. Dave holds a bachelor’s degree in Finance and Managerial Accounting from Pace University and an MBA in Finance from Fordham University.

    Tom Molloy

    Tom Molloy serves as the Executive Vice President of Products & Programs at LBM Advantage. A highly respected industry veteran, he brings over 30 years of experience in the lumber and building materials cooperative sector. With deep expertise across all facets of a buying group cooperative—including retail operations, supplier relations, sales, and marketing—Tom is known for his strategic leadership and industry insight. His career began at ENAP in 1983, where he spent 14 years in the Building Materials Division, holding key leadership roles such as Vice President/Manager of Building Products and Vice President of Sales. In 1997, he joined Do-It-Best Corporation as Division Manager for Pro Sales–Lumber and Building Products. After nearly a decade, he returned to ENAP Inc., where he continued to build on his extensive industry experience. In his current role, Tom oversees all aspects of LBM Advantage’s Building Products Division, ensuring continued growth and success. He holds a bachelor’s degree in Business Administration and Marketing from the State University of New York at Oswego.

    Stephen Sallah

    Stephen J. Sallah retired as President & CEO of LBM Advantage on August 18, 2024. Sallah joined ENAP in 2008 as Chief Financial Officer and began serving as President & CEO in January of 2011. Prior to ENAP, Sallah worked at IBM for sixteen years. He began at IBM as an engineer and worked in various operational roles in Poughkeepsie, NY and Burlington, VT. After spending five years in semiconductor pricing and program management, Sallah spent ten years as division controller for the Software Group in Somers, NY. His last assignment was as program manager for the IBM Software Group supporting the group general manager in Mergers and Acquisitions. Sallah began his career in the U.S. Navy. He served as a Nuclear Engineer and Submarine Officer on the USS Norfolk out of Norfolk, VA; a fast attack Los Angeles Class Submarine. He served a total of seven years of active duty and completed his service in the Naval Reserves, retiring in 2004 as a Commander. Sallah received a bachelor’s degree in Mechanical Engineering from the University of Massachusetts at Amherst and his M.B.A. from Harvard Graduate School of Business Administration.
    [tmm name="ny-panel-products"]
    [tmm name="ny-commodity-framing"]
    [tmm name="smithfield-commodity-framing-panel"]
    [tmm name="monroe-commodity-framing-panel"]
    [tmm name="grand-rapids-commodity-framing-panel"]
    [tmm name="treated-engineered-wood-products"]
    [tmm name="commodities"]
    [tmm name="millwork"]
    [tmm name="specialties"]

    Service Charge Schedule

    Advantage’s primary revenue source is derived from charging the member a percentage of the gross invoice amount based on the categories below. This service charge will appear on the transmittal unless the program is either deferred or non-adder.

    • Deferred:
      The service charge for deferred adder programs will be deducted from quarterly rebate statements and will not appear on transmittals. The service charge amount is set at 1% and a line item on the statement lists the amount being deducted. Each member has the option of declining the deferred adder and will be charged the 1% service charge on the transmittal.

    • Non-Adder:
      The service charge for these programs is not charged to the member.
    • Fixed Service Charge:
      A number of programs have a fixed service charge, regardless of the invoice amount.
    • Sliding Scale:
      If the program does not fall into the categories above, the charge will be applied per the following schedule:
    $0
    to
    		   $2,500: 3%
    $2,501
    to
    		 $40,000: 1%
            $40,001 and above is capped at $400