Profit-lrr?king strategies that sell fasteners & connectors

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a major profit center for a retailer.

In many stores hardware accounts fot l4-l1vo of net sales, according to the National Retail Hardware Association. Profit margins, they say, average ovet 40Vo with some retailers using variable pricing to maintain margins of 50Vo or better. With a

Story at a Glance

How to turn fasteners and connectors Into a maior profit center ... ideas to help a retailer maintain margins of 4V/o and better ... technlques that work at independent storcs.

high percentage of fasteners in the blind item category, margins can often exceed 807o.

Retailers who are successful with fasteners and connectors work to create a stfong product niche. They 'stock enough SKUs to fill any need without having to special order and make the section a dominant feature. Broad selections have been found 0o attfact more customers than low pricas.

Retailers are successful following completely different strategies of department placement. sone place an impressive fastener display at the front of the store, making sure it is one of the fint deparunents seen by the custoner. Others locate an equally prominent display at the back with the idea that it draws customers through the store, exposing them to other merchandise. Whether the display is up front u in baclq it must be powerful. Developing a strong product niche also demands fasteners and connectrors be cross merchandised in the lumber and power tool depaftments ils well as near the contractor service desk.

Fasteners and connectors are labor intensive. Constant inventory maintenance is required for a consistent instock positidl. A store employee or a factory rep must be responsible for checking inventory and maintaining stock on an established schedule. Good housekeeping is second only to being in-stock. Fasteners and connectors are easily mixed up and need cons0ant care so customers can find the items they need.

Bin labels and price stickers must be accurate. Displaying in-use sketches or photos with use insfructions can bolster a customer's confidence in making his selection. Some manufacturers including Kant-Sag and Simpson Srong Tie provide displays showing how their products are used. Teco/Lumberlok has posters with line drawings of projects and explanations of hardware needed for them.

Customers like the choice of buying individual or packaged fasteners and connectors. Bulk fasteners sell best to customers requiring only a few. Packaged fasteners, which often have a price brealc, appeal to those who need large numbers of fasteners and don't mind buying a few extra.

Most retailers feel that all but the most experienced customers need help in making their selections. One or mce of the sales staff should be an expert on fasteners and connectors. Store.s that have deck clinics or similar project seminrs find that spending some time talking about the corect fasteners and connectors improves hardware sales. Other stores report good results including fasteners in project kits. Teco is marketing several kits with project plans, lumber lists and fasteners or connectors.

FASTENERS & connedors need allention.

Cus0omers favor sCainless steel fasteners and connectors, relating them to rust-froe service and high quality. Some retailers have been able to eliminate lightweight, inexpensive fasteners and connectors, finding customers are willing to spend more for higher quality.

A profitable, winning niche in fasteners and connectors is best developed with strong merchandising, offering a wide selection with deep stock, knowledgeable employees, good housekeeping, customer education and letting your market know what you have.

Profit Makers

o Merchandise a Dominate where the competition is weak o Keep a wide selection & deep stock

O Always be in stock o Train your employees o hovide customer senrice o Develop educational displays a Cross merchandise o Offer bulk, boxed & packaged o Use free standing, peghook or clip-sfip displays o Stock heavy duty, high quality fasteners & connectors

O Organize department o Maintain good housekeeping o Use variable pricing a Promote add-on sales such as power tools o Advertise what you have and do