Inside Ace Handyman Services; plus growth at Costello’s Ace Hardware.

Ace brings ‘handy’ home

THIS HARDWARE PARTNER COMES TO THE CUSTOMER’S HOME: ACE HANDYMAN SERVICES. By Tim Burke

“R ight off the bat our phones were ringing off the hook.” That’s Tim Owata describing becoming an Ace Handyman franchisee. Tim and his wife Elena own Coon Rapids Ace Hardware, located in a northern suburb of Minneapolis, with a population of nearly 64,000.

The owner believed a big part of the handyman experience was the Ace brand recognition. They wanted their service to be an extension of their store — not just ‘the helpful place,’ but the ‘bring helpful to your home,’” as they called it.

Let’s dial back to how this all began.

The story starts with Handyman Matters, a business first founded in 1998 in Denver by Andy and Colette Bell. They grew it locally, expanded it to California, then franchised.

In 2019 Ace Hardware acquired Handyman Matters and in 2020 it was rebranded to “Ace Handyman Services.” At the time of acquisition, there were 64 franchisees with 119 territories. At the latest count, Ace Handyman Services has 191 franchise owners and 344 territories.

The business was created to improve on home improvement, by providing a professional option for homeowners.

The service people who work for the franchisee, have had background checks, carry insurance, and “don’t ask for a penny from the homeowner until the work is done and the quality is satisfactory. All work performed has a one-year warranty.”

For more Ace news, including the co-op's record third quarter, visit HBSDealer.com.

Growth blasts off

The success of the program is rooted in the tremendous amount of trust homeowners have in the brand. “This led more sophisticated franchise buyers to our essential business model, including Ace Hardware retailers themselves,” said the owner. The recent pandemic only served to, “fuel the flames of growth with this essential business.”

With that much growth, there will always be challenges.

Ace Handyman Services has doubled their corporate support and marketing staff to ensure every franchise owner receives the correct support for their growth. “And of course, the labor shortage has had an impact,” said Bell.

Some fast numbers: Currently, of the 191 franchise owners who own 344 territories, 27 are Ace Hardware store retailers who own 48 territories.

“We cover more than 700 Ace Hardware stores with all our territories, regardless of who owns the franchise.”

On average, one Ace Handyman Services territory comprises zip codes totaling 70,000 households and can encompass three to four store locations.

“There is so much more room to grow. This is likely to be a rocket ship, with trust of the Ace brand as a dependable supplier, and so many open territories available,” said Jeff Gooding, corporate VP marketing at Ace Hardware.

In 2019, Ace Hardware acquired Handyman Matters, and in 2020 it was rebranded to “Ace Handyman Services.” Since then, the business has grown from 64 franchise owners to 191, and from 119 territories to 344.

House calls

The owner provided tips for other owners thinking about launching a handyman program: “Use business systems, technology and software, process and procedures that create a scalable business model.

“Keeping track of each handyman and handywoman, what they can do, each customer, what they want done and have had done in the past and making all that run smoothly and delighting customers every time is not an accident.

“It takes work, process, and more than 24 years of experience.”

The American consumer is transitioning from a Do-ItYourself mentality to a Do It For Me society that purchases more and more home services, he said, and the Millennial generation is the largest.

“They are buying the home, but not the ladder, lawn mower, drill or saw to do any of the home restoration projects they want accomplished.”

Back to Coon Rapids

“Elena and I own a couple of Ace Hardware stores; and rarely a day would go by that a customer didn’t ask if we could have someone come over and work on their project,” said Tim Owata.

He reached out to Colette Bell to ask for more information about the program, and it didn’t take long to know that it was “a perfect fit,” he said, for their business model.

Owata said there is, “a wonderful support team to make sure things go as smooth as possible.”

The owner of Coon Rapids Ace Hardware said it took a couple months to really get a solid team put together, but once they had that, everything started moving along well.

There were some obstacles too.

In the Ace Handyman Services program, the average project takes four hours, averages $650, and all work is performed by W2 craftsmen and craftswomen. Tim and Elena Owata own Coon Rapids Ace Hardware and their business is an Ace Handyman Services franchisee.

“The challenge was not lack of work, rather the lack of qualified craftsmen,” said Owata. “The employee turnover rate is high in the carpentry and handyman trades; this was apparent immediately.”

But he saw the value the service added to his store.

“I know from my own experience before owning an Ace Handyman Service franchise, that there were some apprehensions referring our customers to any service out there without fully knowing the quality of work being done.”

Now he sees, “the high standards that Ace Handyman Services hold their franchises to and can with confidence vouch that this is a great partnership.”

Howdy Pard

The owner pointed out that handyman services help differentiate their hardware business.

“One of the biggest complaints our customers have had with other services is just getting someone to answer the phone or return a call. This is a huge issue,” said Owata.

“Our customers love that we set exact appointments, not just a time window; and our craftspeople are calling the night before to confirm the appointment and go over what needs to be done.”

He said the reviews speak for themselves, as thus far they are maintaining 5 out of 5 stars.

“We strive to be the premium service in the market and even just a few months into opening our franchise, we have many repeat customers already.”

Want to launch a handyman program?

Owata said there’s more work out there than there are people to do it – but the market demands quality of service and communication.

“Set your standards high from the get-go and don’t waiver – be prepared to put in the work,” he said.

Then added: “Ace Handyman Services is a class act. You won’t find a better partner.”

Costello’s Ace Hardware leans into 2023

FORGET THE HEADWINDS, THIS HARDWARE CHAIN IS GROWING. By Ken Clark

Don’t let the headlines hyping inflation and recession get you down. The hardware business is on a win-streak, and there’s no need to break it.

That’s one of the messages emanating from Deer Park, N.Y., headquarters of the ambitious, family owned Costello’s Ace Hardware chain and its growing fleet of 46 stores.

“We’re going to lean into 2023, ignore the naysayers and invest in what’s working well for us,” said Ken Goodgame, senior vice president of merchandising and marketing for Costello’s Ace Hardware.

Goodgame’s comments followed a busy period for the retailer. Costello’s recently hosted more than 40 of its largest vendors in Long Island for its annual Vendor Summit. Previously, the retailer closed a deal to acquire five new hardware stores from the Smith’s Ace chain in New Jersey and eastern Pennsylvania. (A sixth Smith’s Ace store was not part of the deal.)

And on top of everything else, a new-from-the-ground-up Costello’s Ace Hardware store opened in mid-October in Purcellville, Va., about 40 minutes west of Washington, D.C.

The retailer’s growth was another point of emphasis during Costello’s second annual Vendor Summit.

“One of the major messages from the summit was to emphasize growth opportunities for our vendors when they support Costello’s,” said Joey Costello, director of marketing for the family-owned retailer. “’Lean into Costello’s’—that was the theme. And grow with us.”

The retailer has shown itself quite capable of expanding its footprint in the densely populated New York metro area and New Jersey. And the company has a lofty goal of reaching 75 stores by 2025.

According to Goodgame, the five Smith’s Ace stores represent a perfect opportunity for Costello’s Ace to bring its “special sauce” of culture and operations to five high-income markets, including Princeton and Chatham in New Jersey, and Newtown, Pa. “We’ll do a little remodeling, get them in stock and make sure the grill departments are in line with what we are doing in other stores that have yielded great results for us,” he said.

The five Smith’s Ace stores will convert to the “Costello’s” banner eventually, probably in early 2023.

During its vendor summit, Costello’s recognized The Hillman Group as the company’s 2022 partner of the year. Costello’s also recognized two regional sales/service representatives for their distinguished service: Dan Grantham of Creedan and Mike Castan of Arett Sales.

Costello’s Ace Hardware, with stores in New York, New Jersey, Pennsylvania, Maryland and Virginia, will celebrate its 50th anniversary next year.

The retailer’s new store in Chatham, N.J. Costello’s also acquired Smith’s Ace stores in Chester, Princeton, Mercerville; and Newtown, Pa.

Costello's Ace Hardware CEO Mike Costello shared the company's values during its 2022 Vendor Summit.