6 steps to increased fastener profit

Stock

Adequate supply and selection are needed to accommodate customers. Having the right fastener assists in the sale of many related products. Full service, one-stop shopping depends greatly on fastener accessories and components. Since labor is the most expensive aspect of any job, both homeowners and contractors concerned with expense go to full service stores for fastener needs.

Product Knowledge

Trained personnel who know what they sell and how the products should be used are important. They must be able to recommend products. They also must be able to sell up by suggesting the newest fastener products and components. Example: when customers buy bolts, they generally need nuts and washers as well or driver tips and screwdrivers when buying screws.

Merchandising

Access to products must be simple and easy for customers. Merchandise to accommodate them. Example: contractors buy piece lots. Prepackaging is a deterrent to contractor sales while it is useful and important to a homeowner sale. In some stores a combination of bulk and prepackaged fasteners can be used.

Vendor Support

In-slore service from vendors is necessary in a complicated department such as fasteners. A vendor should supply product training to help personnel become experienced fasteners salespeople. A vendor's ability to ship complete orders in a timely manner is another important requirement.

Single Source Buying

Deal with as few sources as possi-

Fastener Act Clarificatbn

Although some lumber and hardware retailers are concerned about Public Law l0l-592, the Fastener Quality Act, only a small portion of products at the retail level will be affected.

"This law primarily affects industrial and government applications where equipment and projects require specified grades and hardness," explains Pat Grattan, Dave Grattan and Sons, Inc., a wholesale lastener supplier.

The regulation does not include any screw, nut, bolt or stud produced and marked as ASTM A 307 Grade A (also known as Grade 2), according to Grattan. Since these are the lasteners primarily carried by retailers, stores are affected only if they special order items such as Grade 5 or ble within the fastener department. Not only do you become more important to the vendor, he be' comes more important to you. Fewer

Grade 8 fasteners.

A fastener which comes under the law cannot be sold unless it has been manulactured to certain standards and specifications, inspected, tested and certified. "All packages must be lot numbered to enable the purchaser to trace the origin. If a fastener is from more than one but not more than two lots, it may be put into one package, but both lot numbers must be clearly noted since comingling of more than two lots of fasteners subject to the regulation is unlawful," Grattan said.

The law is designed to protect public safety and deter use of nonconlorming lasteners by improving traceability and providing assurance that fasteners meet specifications. he added.

Story ataGlance

Advice on stockiqg for full service, onestq slropgilng, educating personnel, buytrg corniort level ways to use vendor sutr port' lrcrvto make profitwiUlout losing competitive edge.

orders from separate sources result in fewer bills with less paperwork which helps to reduce costs. Generally, it is less expensive to buy from a single source. Example: many short line suppliers have low price leaders on common items, but premium prices for unpopular items. A total order cost should be a deciding factor in selecting a source. In many cases you will find your entire order less expensive without low ball items offset by inflated prices on others,

Pricing

Being competitive is important, but being profitable is more important. Very few customers do price comparisons on fasteners so it's more important to have product than the lowest price. A store can become more competitive by buying popular items in bulk cartons. This can save up to 25010. If small quantities are sold at regular price levels, profits increase. Larger sales also can be discounted from the same inventory.

These suggestions for making a slore's .fastener department and salesperson more e.fiicient and profitable were adapted from advice by Pat Grattan, president of Dave Grattan and Sons, Inc., Irwindale, Ca.editor.