1. New Multi-Brand Accounts New Accounts Displacement/Placements Remodeling Activity Probuild, San Diego, CA – Their ad introducing the new in-stock program with Contractor’s Choice has brought in customers due to the price advertised. A 10 x10 starting at $1,053. (PG) Western States Carson, CA- This location sold two Diamond projects this week for a total value of $22K. They are reporting that the 10% off promotion really helps to close business. (CH) TGI, Irvine, CA - Sold two Decora’ projects for a total value of $26K. Jim Becker stated that the 10% off for Decora’ made the difference, and helped to sell the projects. He said that MBCI should include Decora’ brand in more promos like this through the year. (CH) DirectBuy, Long Beach, CA -This location sold a $15K Kitchen Craft project this week and the Designers are selling it over Ultra Craft. They also wished that MBCI would do a Kitchen Craft promo for DirectBuy. (CH) We conducted a very successful Plant Visit to Grants Pass for two designers from Hank Builders dba J & J Cabinets & Design, Chatsworth, CA. Dave Borgard gave an extremely detailed plant tour and both designers came away with greatly increased familiarity with the SDK manufacturing process, especially as regards capabilities that the didn’t know we had. (RM) Sears has (finally) started doing local advertising for the TGI-in-a-store in Torrance, CA, and this is generating markedly increased traffic. The ads are abut ¼-page and appear in the Daily Breeze and beach Cities Reporter, which are distributed in the TGI’s immediate marketing area. Previously there weren’t even banners or sign on the main floor of the store to let shoppers know that there was a design center on the Lower Level. (RM) Projects The Pismo medical Office project, through Hayward Lumber, San Luis Obispo has started up again, after being on hold since May; KC Contempra Woodgrain. (RM) Competition Costco partner Miramar Kitchen & Bath, San Diego, CA is reporting consumers are getting confused with the All Wood Cabinets advertised by Costco online. They are contacting Miramar Kitchen & Bath asking for All plywood cabinets for $2,300. (PG) Mid-Continent is introducing 39” high wall cabinets due to customer demand. (PG) Ultra Craft is running 20% off promotions till January 2011 with key dealers like Kitchen & Bath Solutions in Fountain Valley, CA. (CH) Kitchen Craft dealers are asking for MBCI to start promoting this brand like they do with all the others. The dealers want to see a national 10% off promotion to help close sales over other brands like Ultra Craft and Columba. (CH) DeWils standard: Cherry, maple, alder at oak price. African Mahogany and Bamboo offered on all styles except ½” reverse raised panel. (SW) Market Notes Kitchen Craft product launch – I am receiving good feedback on the Kitchen Craft product launch especially on the new Alabaster Mocha and Seashell Mocha glazes. (PG) Tom LaBerteaux from The Cabinet Outlet in Anaheim, CA is reporting that he is losing some Contractor Choice projects because of the drawers not being dovetail solid wood. He feels that this product would sell and complete with Chinese much better if it has a wood drawer. (CH) Sandra Rodriguez of L & S Interiors in Anaheim, CA is selling more Kitchen Craft product since the brand introduced the new expanded offering with the Euro style. She says it keeps the customers in our catalog. (CH) Tom LaBerteaux from The Cabinet Outlet in Anaheim, CA reviewed the new Kitchen Craft Fall launch and thinks that the new matching melamine ends in maple finishes will ready help to drive sales in his showroom. This helps to ease the design process and keep costs down. He hopes we will expand it to other wood types soon. (CH) Raytheon and Northrop Aircraft have both announced lay-offs totaling around 550 positions in Los Angeles County. The eliminated positions will all be exceptionally desirable, high-paying jobs, and are due to expected draw-downs in limitary procurement. (RM) San Diego Union-Tribune: On Monday, Oct 11 th, Bank of America was the first lender to freeze foreclosure proceedings, and while other lenders may soon follow suit, it won't have much of an impact in San Diego -- with one big exception. Statewide, more than 67,000 homes are currently listed as foreclosures. There are 8,600 additional homes listed as short sales and more than 88,000 listed as pre-foreclosure. "Now that we've taken this timeout, if you will, it'll actually grow the short- sale bubble," said Mark Marquez of Weichert Realty. "The foreclosure freeze will extend the short sale process and could add almost an entire year to the housing market's recovery. Without the freeze we would be going through these properties, getting them to market as quickly as possible so that we can get the distressed properties behind us. (SW) San Diego Union-Tribune: Vantage Pointe, the mammoth downtown high-rise that failed as a condo project, has been sold to one of the nation's largest apartment owners and operators for $200 million. The sale, finalized in late September, allows Canadian developer Pointe of View to exit a financially troubled development that encountered a series of setbacks even before construction was complete. Most recently, Pointe of View was unable to close any condo sales on what is downtown San Diego's largest residential project after it defaulted on its original $210 million construction loan in March. There had been as many as 100 purchasers, but 60 of those buyers opted to cancel over the last several months. The remaining 40 were to have their deposits returned.(SW) Pacific West Area Executive Summary 10/22/10 Highline-Southwest Key Targets Pacific West Northwest Southwest Financial Metrics