Monthly Report for __April 5, 2011____________
From: Highline-Southwest, Inc.
Issues for discussion:

The new release U-design can now be used for production and newbies’. It’s a much
needed step in right direction. The camps are divided on it’s use. Those that are trying it
and others that won’t until it’s closer to what they are using.
Competition:

LMI is very busy with glass work and are too busy to design and quote wire. However
designs are still being produced and they are still using up their 5/8” material. John
believes that Organizer’s Direct is supplying them with bridged inventory to make
production happen.
Account Activity:

ABS must now be getting low on inventory. Many smaller finish trades have applied for
open credit.

Several trim shops are reporting new projects from the builders out for bid:
BG Construction (Credit ap pending)
House Construction
Lark Industries (Residential Design)
Masco

McDuff-Daniels: John is presenting the U-design for their use in in-home closet
presentations for Granahl Lumber.

Casablanca: The incomplete U-design is still holding back Casablanca from
ordering ClosetMaid. Crowned One, Stephen King, is doing manual conversions so
we are still getting their business. Casablanca will not do it. Glenn refuses to mess
with it in the field and doesn't even want us doing the conversions. According to
Shelby, Casablanca wants to sell ClosetMaid, but finds this situation completely
unacceptable.

Cal Bath: We still have not heard a response back from our CM February report
regarding the possibility of offering a small island for their home and garden show
display with a credit memo on orders placed until all is paid within 12 months. Jack,
can you please follow up with Jeff?
New Accounts:

Specialty Apartment Supply, Anaheim, CA. Wire customer. Number 8000.

ClosetFinish, Rancho Cucamonga, CA. Wire customer. Number 8011 Has been buying
up ABS stock which is now pretty much depleted.

Scale 1 : 1, Los Angeles, CA. Wire and laminate. Customer number 7976.

BG Construction, Rudy Padilla. Submitting credit ap. Wire.
MVP and Dealer Targets:

The market is warming up in the retail market. Going after larger (locally advertised)
retail/home improvement type businesses.

Paradise Kitchens, Lake Elsinor, CA. They are interested in ClosetMaid to do turn key
projects.

Livin’ It, San Diego, CA. Interested in becoming a ClosetMaid dealer. Pricing two
closets to see if competitive for their model.

Gregg Johnson , Santa Clarita, CA. He is recently laid off by Turner Construction, but
has been doing closets (from Lowes) on the side for quite a while and does at least a
couple a month by referral. He is getting a contractors’ license and is interested in
becoming a dealer. At least initially he will be a credit card account. Dick will meet this
Wednesday.

Filling out Credit Ap’s:
Home Paradise - for 6 locations
Hayward Lumber - Santa Barbara, CA
Buellton Kitchen & Bath, Buellton, CA.

Stock Supply Showroom - Northridge

Dick Brice, Temecula, CA. Contact later on lead. Will contact if Paradise Kitchens does
not move forward.

Jeff Curtis, Santa Clarita, CA. Left message.

BDI Insulation, Bakersfield, CA. Dick has left messages without a reply. Will continue
to follow up.

Continued interest by kitchen dealers in doing custom closets as soon as JAAT and UDesign are up and running, presumably early in the 2nd Quarter.
Dick has generated interest from:
American Vision: Will start processing set up.
Classic Installations
South Bay Design Center
Morro Bay Cabinets
J & J Cabinets: Will get credit ap going this week.
Dannick Designs: Will start processing set up.
Stockdale Cabinetry
Fred Jacobs Door & Hardware, El Cajon, CA. Small dealer. Waiting on credit ap. Interested
in wire.
Remodel Solutions, Vista, CA. Design Build Firm. Quoted a closet to high end customer. This
customer wanted solid wood and so will keep working with them.
SureCraft, Escondido, CA. Using Rubbermaid. Interested in converting. Not much business
right now.
B&B Accoustics, Lakeside, CA. Had submitted a credit ap to ABS in November, however
ABS never responded. Still trying to follow up without much response.
Robert Christian, Garage Envy, Sun Valley, CA. Is waiting until the new garage program
comes out.
Dana Scott, Aliso Viejo, CA. Also is waiting on the new garage program. Interested in the
closet organizers as well.
Eddie Wong, Diamond Bar, CA. Still interested.
Hayward Lumber, Santa Barbara: Dick will get a credit ap from Hayward Lumber for 15' of
product and will try to push them to use their 20/20 until the U-design is working properly.
Western States, Sherman Oaks Branch is considering expanding their product offering to
closets. Inventory is a problem and so JAAT will help to bring them onboard. They have several
branches. Success with Sherman Oaks may lead to opening the other branches.