As long as there are pipes to be fit, carburetors to be rebuilt and wiring to be run, there will be pros whose first instinct is to grab a CHANNELLOCK® tool and get to work. That’s why we do everything we can to ensure a seamless buying experience for our valued retail partners. The brand America trusts for tough, reliable hand tools is the brand you can count on for streamlined ordering and comprehensive sales support.
Publisher/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
Editor/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864
Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
If you want to improve and grow your business, start by learning from the wisdom of others. Here are some great books that can inform and inspire you.
Seth Godin, “Poke the Box” (2011)— Described as a call to action for entrepreneurs, this book offers a blueprint for taking risks, reinventing the status quo, thinking outside the box and seeing where your ideas can take you. Don’t think of all the reasons why you shouldn’t do something, just go do it. As Godin writes, “Soon is not as good as now.”
Simon Sinek, “Start with Why: How Great Leaders Inspire Everyone to Take Action” (2009)— Why are some companies and individuals more successful than others? Sinek argues that great, inspirational leaders like Steve Jobs and Martin Luther King Jr. started with “why” and then inspired others around them to achieve remarkable things. This book forces you to see things from a different perspective and can help you develop a long-term vision. One memorable quote: “People don’t buy what you do, they buy why you do it.”
Riane Eisler, “The Power of Partnership: Seven Relationships
That Will Change Your Life” (2002)— This book is a practical and powerful guide to show you how to improve the
important relationships in your life with loved ones, co-workers, the world around you and most importantly, with ourselves. Learn how to break old habits and break away from the dominator model that is based on intimidation and adopt a partnership model based on mutual respect.
John Maxwell, “How Successful People Think” (2009)—Successful people tend to think alike, largely because they have mastered the ability to do many of the 11 different types of thinking including big picture thinking, focused thinking, creative thinking, strategic thinking, unselfish thinking and reflective thinking. Maxwell shares helpful methods for improving your thinking in all these key areas.
Bill George and Peter Sims, “True North: Discover Your Authentic Leadership” (2007)—This book, based on interviews with 125 top leaders (including Carol Tome of Home Depot), will help you know your authentic self, define your values and leadership principles, understand your motivations, build your support team and stay grounded by integrating all aspects of your life. A bonus is the personal leadership development portfolio handbook to guide you to develop your personal and authentic type of leadership. ■
By Tom Chasteen
What Are Your Customer Expectations?
Ihave always been a firm believer that if something is not working, then I need to reevaluate what it is I’m doing. It’s really not rocket science, but all too often I find myself doing something because that is the way we have always done it.
Last week I was telling a friend of mine that we were finally able to move back into our house after three months of repairing a water leak. I shared the frustrating experience that I had trying to get our internet service and TV service turned back on. He laughed and shared his frustrating experience as well with the same service providers.
As we were discussing the obvious failings of these two service providers he said the problem is that we set our expectations too high when dealing with these service companies.
When I asked him to explain what he meant by that, he said we expect to make one call to make a service appointment and then we expect the technician to arrive at our home at or close to the pre-arranged time and then we expect the technician to have
all the equipment/parts to take care of what we needed to be done and we expect the technician to resolve the issue right then and there as we requested.
In reality, it is extremely rare when the technician shows up on time, has the equipment/parts and knows how to fix the problem. More times than not he or she shows up hours late, doesn’t have the right equipment on the truck and has to reschedule another appointment to come back to finish the job. So the result is that we get extremely frustrated, because our expectations and what we get are rarely the same.
I thought about that for a few minutes and agreed he was right. If I had expected the technician to be late and that he probably would not have the equipment/parts with him and that he would have to come back out to my house after he stopped by to assess the situation, then I probably would not be nearly as frustrated.
Then I got to thinking that this scenario does not just apply to the internet and TV service providers, it applies to all businesses large and
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the way i see it
small. It applies to restaurants, auto mechanics, grocery stores and, yes, even hardware stores.
So now I’m asking myself how I can determine objectively if we are meeting our customers’ expectations in our family hardware store. The key word for me in the previous sentence is “objectively,” because subjectively I’m completely biased when it comes to our family hardware store.
A good friend of mine for many years, Bill Hettling, told me over 20 years ago, long before the internet and Amazon, that the challenge of all retailers in the future is that they must entertain their customers. We must give our customers more than just the merchandise they came in the store to buy. Otherwise why bother coming to your store?
Today, I believe that is even more important than ever. For the past 20 years I have tried to emphasize to our staff that we want to emulate the highly successful TV series Cheers, “Where everyone knows your name.” We have tried to make our customers feel like our hardware store is “their neighborhood hardware store.”
But I think we need to take that one step further and try to create a memorable experience for our customers when they come into our store. Many hardware store owners are now posting customer pictures of happy fishing trips or hunting trips on their
Facebook pages. Some are holding in-store, how-to demos, but I believe for these demos to be really effective they need to be on subjects that people enjoy doing. Holding a seminar on how to change the ballcock in a toilet is really not going to attract very many people.
Which brings me back to the original question of how can we influence people’s expectations when they come into our store and how do we measure if we are meeting them or not? Several objective areas come to mind immediately.
1. How many times does a person walk out without buying something each day? This one is easy to objectively measure. Put a counter on the front door to see how many people come in each day and compare that to the number of transactions you make each day.
2. How big is your “want list” each week? If you have 30–40 items on your want list each week, then you might need to reevaluate your merchandise mix.
3. Take a look at the number of “zero” quantities on hand you have each week. Chances are if you are out of something you are going to disappoint someone.
4. Ask your staff to estimate what percentage of sales transactions for which they have everything the customer came in for.
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the way i see it
5. Ask your staff how many times someone comes into the store and they don’t know that customer’s name.
6. Finally, ask yourself if you are entertaining your customers. If you aren’t sure what I mean or need some ideas, then go to your nearest Bass Pro Shop. Johnny Morris has built a huge business entertaining his customers with everything from animal mounts and huge fish tanks to innovative merchandising. In my area in the Florida Keys they have the sister ship to the Pilar (the boat Ernest Hemingway owned) in the middle of the sales floor. People are welcome to climb aboard and stand behind the wheel if they would like to imagine what it was like to be Ernest Hemingway.
There is no way you can get that type of shopping experience at Amazon, Home Depot or Lowe’s. I keep reminding myself “only a fool does the same thing over and over again and expects a different result.”
Let me know what you think and what you are doing in your store. I would be very interested to get some fresh ideas. From one retailer to another, email tom@thehardwarestore.com . n
From Tom’s Shop
HARDWARE PRODUCTS REVIEW
From most of the retailers I’ve spoken with over the past few months it seems almost everyone is seeing an increase in gross sales. Gross profits are another matter. In an effort to remain competitive, many retailers over the past 10 years have attempted to absorb as much additional operational expense increases as possible. The increased pressure on profit margins from the internet segment of our economy has exacerbated the problem.
PRODUCT #1: CODE RED™ LINE
APEX TOOL GROUP
Apex Tool Group has expanded its highly successful Code Red™ product line to now include six different sizes. They start out with an 8”, 10” and 12” molding pry bars. The 8” is perfect for small finish work, especially when using a pneumatic nailer or stapler. The 10” is an ideal all-around size for small framing and molding jobs. The 12” has a wide pry bar base (foot) that is perfect nailing or screwing down decking.
By Tom Chasteen
Independent hardware retailers
All of these pry bars are solid onepiece construction and all of them are designed with a striking head on the back side of the nail claw. Anyone who
have always done well in the area of new items. The simple reason is that we have credibility with our customers and they know if the item is faulty then they can bring it back and we will stand behind it. It is that special bond we have with our customers and our personal knowledge of our market that give us a distinct advantage when it comes to new products. products.
is in the remodeling business will immediately see the benefits to the molding pry bars.
To round out the smaller Code Apex
Red™ line of pry bars, Apex has added a 13” and 15” flat pry bar. Both of these flat pry bars are very similar in size and style to the other flat pry bars, but that is where the similarities end. As soon as you pick one up you realize these are serious pry bars. The
curve on the head gives the user the best access to those difficult-to-reach areas and the leverage to get the job done with the least amount of effort and damage to the area you are working on.
But I would be remiss if I didn’t mention the Indexing Nail Puller. This is my favorite tool of the bunch. It gives you all of the features of the striking head and compactness of the molding pry bars and combines that with the strength and leverage of the flat pry bars.
It also has one feature that I think is way cool and is a game changer and that is an adjusting head that gives the
user 14 different positions. The handle is round like a socket ratchet handle, allowing you to exert a half-ton of leveraging power.
If you are reviewing your carpenter hand tools, then make sure you look at Apex’s Code Red™ pry bars. They are very well packaged and they are branded with the Crescent® logo.
PRODUCT #2: WIPE NEW® LINE
RUST-OLEUM
Rust-Oleum has come out with five new products in the Wipe New® category. Like with most things Rust-Oleum does the packaging and graphics are excellent and the product is as well. All of our testers gave the Wipe New® line a thumbs up.
Wipe New® Headlight Restore is an excellent product and takes an old
oxidized headlight lens and completely restores it to a like-new condition and is inspection guaranteed. Check it out: https://www.youtube.com/ watch?v=s2xCnjNch_c
From Tom’s Shop HARDWARE PRODUCTS REVIEW
Wipe New® Brake Dust Defender leans and forms a protective barrier on your car and truck rims that continues to repel brake dust, road grime and also helps to prevent salt corrosion as well. The protective qualities will last up to two years with just normal washing with soap and water. Check it out here.
Wipe New® Tires is another great product that will keep your tires looking
new for over 100 car washes and best of all there is no slippery residue. Wipe New® Tires also gives added UV protection as well. Check it out here.
Wipe New® Trim Restorer was rated the number one automotive trim restorer by a leading consumer magazine. Our testers really liked this product as well, saying how easy it was to use and the
results were immediate. Check it out here.
Wipe New®
Recolor was definitely everyone’s favorite, mainly because it works on so many different surfaces and materials. Our testers used it on plastic chairs, vinyl, fiberglass and rubber with equal success. Check it out here.
The Wipe New® products have received three SEMA awards and each kit comes complete with everything
the user needs to finish the job as well as a consumer-friendly warranty. If you have an automotive section or department you really need to look at Rust-Oleum’s Wipe New® products. They make excellent impulse items at the checkout register.
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National Hardware Show
NHS Preview PREVIEW
GatHeriNG iN SearCH OF iNNOvatiON
It’s time to head to Las Vegas for the 71st annual National Hardware Show®, which takes place May 4-6 at the Las Vegas Convention Center. The Hardware Show is the place to see innovative new products from top brands, network with other retail attendees and exhibitors, attend seminars and discover products you cannot find at your wholesaler markets.
“We have made a few changes, based on customer feedback, to make the Show the best it can be,” says Rich Russo, vice president of the National Hardware Show.
Upper: More than 2,000 exhibitors will be showcasing their newest product introductions at the 2016 National Hardware Show in Las Vegas.
Lower: Check out the latest product innovations in the New Product World area, located in Room N101.
EVENT: National Hardware Show®
SHOW HOURS: Wednesday, May 4: 9 a.m. – 5 p.m. Thursday, May 5: 9 a.m. – 5 p.m. Friday, May 6: 9 a.m. – 3 p.m.
LOCATION: Las Vegas Convention Center
SHOW INFO: www.NationalHardwareShow.com
NHS Preview
First, the Show will run from Wednesday through Friday (instead of Tuesday through Thursday). The Show will also move back to the North and Central halls of the convention center to provide a more convenient show experience, returning to a format that more closely resembles the 2014 Hardware Show.
The Tailgate, Backyard & BBQ area will be moving back to the Silver parking lot in front of the convention center. In addition, many of the popular Show features such as New Product
World and New Product Launch will move back into the lobby and nearby meeting rooms.
The North Hall will feature lawn, garden & outdoor living products (including pet and farm and ranch), while
Lawn and garden and outdoor living booths will be the central focus of the North Hall.
the Central Hall will feature hardware, tools, paint and accessories, homewares, plumbing, electrical and international sourcing.
“These moves will offer us additional space on the Show fl oor to more closely align each product category and provide attendees and exhibitors with a more manageable shopping experience,” says Russo.
Geared tO iNdePeNdeNt retaiLerS
The Show offers several benefi ts geared specifi cally toward independent retailers. There’s a new on-site guide that showcases more than 1,000 exhibitors selling to the independent retailer. When you register, make sure you provide information about the product categories you’re interested in, so you can get a personalized list of exhibitors and products to help you more easily fi nd what you’re looking for.
Be sure to download the free NHS mobile app (www.nhsmobile.com), which has a special section just for
Gorilla Family Just Got Bigger
Visit New Product Launch in the Central Hall, where you will find innovative products that have not yet hit the market.
independent retailers that will guide them to specific exhibitors who focus on selling to independents. The Show is also introducing a new 411 hotline for attendees to call or text any questions they might have on getting around the Show floor or finding specific exhibitors.
“Independent retailers make up a large portion of the home improvement industry,” says Russo. “From educational seminars, to exhibitors raising their hands to be identified as selling to independents, to product recommendations, there’s so much to offer the independent retailer at the Show, and we want to make sure the independents who attend can take full advantage of these opportunities.”
New eXHiBitOr & PrOduCt reCOMMeNdatiON PrOGraM
With more than 2,000 exhibitors (including over 600 new ones) and so many networking opportunities, it can get a little overwhelming for attendees who are looking for a particular product or category of product. The
NHS Preview
National Hardware Show is introducing a new recommendation program that benefits both attendees and exhibitors.
“We know that everyone at the Show—both those attending to network and find new ideas, as well as those exhibiting to show off their products—are taking a lot of time away from their businesses to come to Las Vegas,” says Russo. “We’re excited that the new recommendation program will be a benefit to both attendees and exhibitors and have a huge impact on the way attendees shop the Show.”
When attendees register for the Show, they’re asked to provide information about the product categories they are most interested in shopping and learning about while at the Show. They will then receive a personalized list of suggested exhibitors and products, matching the product categories they are interested in.
At the Show, you can also find the Match Me welcome information counter, which will provide you with a list of recommended exhibitors based on your personal product interest. Attendees can also call or text the new 411 hotline, where a team member will be on the line to offer exhibitor recommendations.
SPeCiaL eveNtS
Kick back and relax after the first day of the Show at the Tailgate Happy Hour on Wednesday, May 4 from 3
Hillman’s line of Construction Nails breathes new life back into a product category that has been stale for years. Designed with engaging packaging and informative merchandising graphics, our color-coding system provides a fresh approach to merchandising with our brand of Fas-n-Tite™ construction nails.
Upper: A special Retailer Party will be held in the Tailgate, Backyard & BBQ area in front of the Convention Center on Wednesday, May 4 from 3-5 p.m., with free drinks, giveaways and music.
Lower: The Hardware Show will again feature an Inventors Spotlight with products not yet on the market. Inventors were able to “Pitch the Experts” at last year’s show.
p.m. to 5 p.m. in the Tailgate, Backyard & BBQ Area. Free drinks are available for all retailers who attend.
National Hardware Show Kickoff
Launch Party will take place on Wednesday, May 4 from 10-11 p.m. at HYDE Bellagio. Free admission with open bar for all retailers and exhibitors with a show badge.
QVC Product Search Panel will be held from 12:30-5 p.m. on Wednesday, May 4 at the Inventors Spotlight area, Room N109. Sit in and listen as QVC buyers and decision makers give
NHS Preview
feedback on new products presented by inventors.
Pitch the Experts will take place on Thursday, May 5 from 3-5 p.m. and Friday, May 6 from 11:30 a.m.-1 p.m. in the Inventors Spotlight area, Room N109, with inventors presenting their new product innovations to industry leaders and decision makers in a Shark Tank-like format.
Tailgate, Backyard & BBQ Party is set for Thursday, May 5 from 4:30-6:30 p.m. in the Tailgate, Backyard & BBQ area. Open to all attendees, enjoy live entertainment, food and drinks. n
• Homewares Awards Product Display, Central Lobby near North Hall entrance
• Lawn, Garden & Outdoor
Living Awards Product Display, Central Lobby, near North Hall entrance.
Spotlight NHS Product
If they want to attract new customers, home improvement retailers know they have to keep bringing in new products. The National Hardware Show® offers the industry’s best opportunity to see the latest product innovations from top manufacturers. The products featured on the following pages can be found at the upcoming National Hardware Show (May 4-6 in Las Vegas) or at upcoming wholesaler shows.
DIGZ® FULL GRAIN GOATSKIN GLOVE
• The new Digz® Full Grain Goatskin glove, like all of the Digz® gloves for women, is tailored to fit a woman’s hand.
• An intricately sewn keystone thumb offers superior movement and all-day wear.
• The comfort, quality and durability of the sophisticated Digz® Full Grain Goatskin glove has raised the bar for women’s garden gloves. Big Time Products www.bigtimeproducts.net 706-295-3770
#6428
86 RESCUE TOOL
• The 86 Rescue Tool is designed for easy, intuitive, one-hand operation in high-stress situations.
shapes and provides maximum grip.
• Jaw design accommodates many shapes and provides maximum grip.
• Shuts off gas safety valves and pries open windows and doors.
• Spanner wrench loosens and tightens up to 5” couplings, while X nology requires considerably less force to cut than traditional designs.
Channellock www.channellock.com 800-724-3018
#7226
• Laser heat-treated cutting edges last longer and easily cut hard and soft wire.
TWO OLD GOATS LOTION
• Karen Pharr is a professional quilter and fabric artist. Long hours of tedious hand work left her hands dry, chapped and tired. She tried using various lotions, but found that most had many chemicals and perfumes that she preferred to avoid. Her favorites had essential oils, which she liked, but found that the carrier oils used left stains on her fabric. She decided to create her own lotion.
• Over a 7-year period, Karen determined that a vegetable glycerine base with goat milk provided the best beginning for her desired product. To this base she added 6 pure, natural, therapeutic-grade essential oils: lavender, chamomile, eucalyptus, rosemary, peppermint and birch bark.
• Two Old Goats lotion penetrates quickly, does not stain fabrics and leaves hands feeling smooth and refreshed. Two Old Goats www.twooldgoats.com
NHS PRODUCT SPOTLIGHT
TOOL SHELF
• Designed for Jobsite series 6’ Baker™, it allows tools to be close at hand while working on scaffolding.
• Safer, more organized, clutter-free work area.
• Features 50-pound load capacity and installs at any rung height.
• Paint can size depressed area fits quart, gallon or 5-gallon pails.
• Installs facing inside or outside, no tools needed.
MetalTech
www.metaltech.co
800-363-7587
Booth #5624
GORILLA SUPER GLUE BRUSH & NOZZLE
• Offers 2 easy ways to dispense for control and accuracy.
• Brush & Nozzle features a precision tip nozzle and fine bristle brush that allow the user to control their glue application, making it perfect for any project.
• Developed for long-lasting repairs in an instant, Gorilla Super Glue dries in 10–30 seconds and is reinforced with rubber for increased impact resistance.
• In addition to high-performance formula, features an anticlog cap with a metal pin inside to ensure an airtight seal for maximum reusability.
The Gorilla Glue Company
www.gorillatough.com
513-271-3300 | Booth #4715
HARDWARE ESSENTIALS™ BUILDER’S HARDWARE
• Give your builders hardware aisle the facelift it needs. Hillman has created a winning combination of style, packaging and merchandising, transporting the consumer into a new dimension of shopability with high-impact signs, aisle violators and shelf system.
• Modular planogram system provides clean and simple category separation with color-coded, trilingual packaging.
• Full line covers all the bases from hinges and shelf brackets to door pulls and garage door parts. Over 2,000 quality products offered in the sizes, finishes and package types your customers demand.
• Designed to satisfy a wide array of customers covering farm, ranch, mass merchant, builder and retail hardware.
Hillman
WI-FI-ENABLED SMOKERS
• The Digital Electric Smoker with SmartChef™ Technology makes it easier than ever to make perfectly cooked smoked meals without being time consuming.
• Connected outdoor cooking technology that gives you the freedom to go anywhere while monitoring progress from a smart device.
• Track temps, get real-time updates and have delicious, smokey results waiting when you get home.
• Easy to set up, it comes with three presets with preloaded cooks and a library of recipes.
The answer is simple… Outservice Your Competition! Gain a real competitive advantage and better serve your customers with the Epicor Eagle N Series ™ retail software solution. From POS, built-in, real-time analytics and reporting to best-in-class inventory management and the convenience of mobile apps, Eagle N Series will help you Outservice Your Competition every time.
NHS PRODUCT SPOTLIGHT
WION™ SMART SWITCHES
• Series of indoor and outdoor Wi-Fi® enabled outlets that allow wireless control of home appliances or electrical devices from anywhere with a mobile internet connection.
• Users download a free app to their smartphone or tablet, plug in the WiOn switch and electrical device, and then activate the switch with the app.
• WiOn switches are ready to use right out of the package. There’s no hub needed, no set-up fee and no monthly cost. Users can expand their system to include up to 12 WiOn devices at a time.
• All WiOn Smart Switches feature to-the-minute programmable timing and can be set at various times with up to 12 on/off settings per day. There are random settings to give homes an occupied appearance. Built-in sun tracking technology allows devices to be turned on and off in accordance with sunrise or sunset, allowing porch lights to be turned on automatically at sunset.
• Series of solar-powered garden decor that provides a novel effect of popular snow globes.
• Unlike traditional snow globes, the Mystic Globe™ accent does not require the user to shake the product to get the special effect. The glitter swirls in the globe automatically each night, after a full day’s charge in the sunshine.
• The patent-pending technology that creates the effect can only be found in Moonrays’ Mystic Globe™ product, including decorative stake lights and statues.
• The garden accents also glow at night from bright LED bulbs.
KOREAN BBQ PORK JERKY
• Known for meat snacks that help feed your wild side, Jack Link’s® has a new, bold flavor to tantalize your taste buds: Flame-Grilled Korean BBQ Pork Jerky.
• Using an innovative cooking technique new to the jerky category, Korean BBQ Pork Jerky is finished over an open flame.
• The result is a feast for the eyes, nose and tongue. See the authentic flame edge on each piece of Korean BBQ Pork Jerky. Direct access to the flame provides an authentic aroma to the product, highlighting the flavors prior to tasting them. The sweet pork flavor contrasts perfectly with double toasted sesame seeds and caramelized brown sugar. Jack Link’s Beef
Garden Gloves
NHS PRODUCT SPOTLIGHT
WET N STICK® WATER ACTIVATED JOINT TAPE
• Contains a proprietary adhesive compound ingrained within a premium, high-tensile-strength paper with the same properties as gypsum drywall face paper.
• WET n STICK® is formulated to bond permanently to the drywall, eliminating the process of embedding tape into a first coat of drywall compound. Consequently the process is faster, easier and more effective than applying other types of tape.
• Tracing the joint span with your
finger and spreading the tape into the drywall face ensures full contact. The tape then sets in minutes and dries within an hour, completing the joint seal a full day faster than with standard methods. It dries as a paperthin joint seal. The result is a transition area requiring less compound, quick drying and expedited finishing.
NHS PRODUCT SPOTLIGHT
THINSULATE WINDOW FILM
• 3M™ Thinsulate™ Window Film offers a cost effective, year-round solution to upgrade existing windows.
• 3M Thinsulate™ Window Film Climate Control Series provides the traditional benefits of 3M™ Sun Control Window Film by rejecting heat and blocking harmful UV rays, but it also takes performance a step further to protect against heat loss during cold weather.
• The film has a patented construction that helps reflect more interior heat back into the room, improving personal comfort by reducing cold drafts near windows, which can help save on energy costs.
• The high-visible light transmission provides a neutral appearance that doesn’t change the look of your home or building. The window films also provide added safety and security, during events such as attempted breakins and large-scale external forces.
HAND SHOWERS WITH MAGNETIX™
• Showerheads with Magnetix™ offer a powerful magnetic dock that allows for easy release of the hand shower, as well as a secure return back into place.
• For a customizable showering experience, Magnetix showerheads feature six high-performance spray options, with the choice of a dial or push button to change between settings. Each setting offers optimized pressure ranging from massage to combinations of soft and forceful full-rinse sprays to accommodate any shower preference.
• Hand showers with Magnetix also include a flexible, kink-free, 60” metal hose for greater reach in the tub or shower, allowing consumers to accomplish other tasks, such as bathing children, washing pets and cleaning the shower with ease. A lower showerhead provides easier reach.
• Select showerheads with Magnetix also feature Moen’s exclusive Spot Resist™ finish, which resists fingerprints and water spots to maintain the brilliance of the fixture.
PERSONALI-KEY® MATES
• Two separate and functional keys, but when placed together they form a complete design.
• The designs and shapes are sure to appeal to consumers as a way to express individual personality, harmony or a special connection.
• Choose from several designs such as floral, heart and sun-moon.
• Personali-Keys® are being used as zipper pulls and on necklaces.
• Individually carded and also available with
NHS PRODUCT SPOTLIGHT
CARPENTER’S COLOR CHANGE WOOD FILLER
• Elmer’s Carpenter’s Color Change Wood Filler (4 oz. or 8 oz) dries white and is good for indoor wood repair projects.
• Watch as it goes on purple and dries white when ready to paint, stain or sand. Use it to fix holes, dents, scratches, gouges and any other defects on interior wood surfaces.
• After the color changes, easily finish and stain or paint your
project to make the wood look just like new.
• Patented formula that dries white is also Made in the USA.
VIPER SCRAPER® VACUUM SCRAPING TOOL
• Ergonomic hand scraping tool with tungsten carbide blade and vacuum hose hookup. Ideal for paint scraping, stucco removal, lead abatement, boat repair, flooring installations and more.
• This patent-pending hand scraper tool conveniently attaches directly to the hose of your wet/dry shop vacuum, allowing you to collect waste right from the source. Harmful debris is sucked directly into the vacuum via the hollowed-out handle hose attachment, significantly speeding up workflow and keeping the work environment safe and clean.
• The Viper Scraper® is injection molded from a durable fiberglass reinforced nylon for years of heavyduty usage.
• The new Viper Scraper can be used with any make/size/model shop vacuum to collect waste while scraping. Works best with 1.5” hose (over inlet) or with 1.25” hose (inside inlet).
Air
NHS PRODUCT SPOTLIGHT
WISS® FOLDING POCKET KNIFE
• Designed for performance, value, reliability and ease of use, the tanto-style blade features a piercing tip and includes serrated and straight cutting edges for maximum cutting capabilities.
• User-friendly knife is equipped with dual thumb studs for fast and easy opening by either hand while a full metal frame provides increased rigidity.
• Features a 3.125” blade, reversible pocket clip, ergonomic handle and built-in lanyard
• Spring-assisted opening feature allows the blade to open and lock into place quickly.
Mobile World adapting to the
Just when surviving retailers have learned how to better compete with their giant competitors (home centers and mass merchants), they are now facing increased threats from online retailers like Amazon, Wayfair, Overstock.com and others. They are also facing new challenges as consumers and business people are increasingly using smartphones and tablets to research products and pricing while in stores and to buy using mobile devices.
The use of mobile electronic devices to research and buy products has exploded at a rate that many retailers have not realized. Some analysts say that purchases from smart phones and tablets in the U.S. increased 58 percent to $12.7 billion in November and December last year compared to 2014. Mobile purchases this past holiday season represented 18 percent of U. S. online sales.
What this means to traditional retailers is that their websites need to be
Schemper’s Ace in Ripon, Calif., is offering mobile promotions via text.
modified to be easily viewed and used by customers using mobile devices. Smartphones are the overwhelming favorite for in-store use and research, studies show, with
tablets a distant second. Those retailers whose websites are not mobile-friendly can lose out in the research battle. Some American hardware retailers are well aware of the growing use of smartphones as research tools when consumers are shopping in stores. They recognize that their websites need to be mobile-friendly. Others are not fully aware of this significant trend.
Email markEting on thE risE
Of course, the rapid advances in technology are affecting all aspects of conventional retailing. Email marketing in 2015 was much more effective than the previous year, studies show. Eighty-five
percent of online sellers are now making email marketing a mainstay of their promotional efforts, but conventional retailers have not endorsed it to such an overwhelming degree, continuing to rely on printed circulars and direct mail pieces.
Listrak, an American technology vendor, says people are opening emails on mobile devices and checking emails more frequently. Some industry experts say that 60 percent of all emails are now being read on smart phones. Can any retailer not use email marketing?
The other interesting aspect of online retailing today is its growing adoption by businesses for their Two Old Goats products are ying o shelves at more than 2,000 retailers across the U.S., including ACE Hardware stores! Join the movement which has inspired tens of thousands of Americans to loyally use the Two Old Goats products to soothe aches and pains. Made with therapeuticgrade essential oils and goat’s milk, Two Old Goats lotions, balms and body wash products are sure to perform well in the alternative medicinal market.
mobilE trEnds
purchases. Ferguson.com, for example, which built its business selling air conditioners and heating and ventilating products to retailers, recently revamped its website to be more mobile-friendly. At the same time it vastly increased its SKU count from 50,000 units to 700,000.
Just how important online purchases are can be found in Home Depot’s recently released sales data. Its online sales increased 25.7 percent to $4.7 billion for 2015. By comparison, Lowe’s online sales were up 26 percent in the 4th quarter of 2015.
Home Depot’s site would be a good one to check out, especially because
All the major wholesalers such as Do it Best Corp. offer ship-to-store ordering for their retailers to capitalize on the growth of online ordering.
the big-box chain is trying to encourage more of its pro customers to utilize online purchasing to pick up in the store. An investment house recently noted that Home Depot had 1.5 billion website visits in 2015, with more than half coming from mobile devices.
shiP to storE ordEring
Buy online and pick up in the store programs in the U. S. are being offered by Home Depot and other major home center and mass merchandiser chains today. Fortunately, retailers being supplied by America’s largest wholesalers
are able to benefit from similar “buy online, pick up in store” programs offered on wholesalers’ websites.
While the number of such orders is never huge for any individual retailer, each one offers the local retailer an opportunity to introduce himself or herself to another customer.
Ace Hardware is in the midst of a program personalizing this concept to
an even greater degree by linking the inventories of participating individual Ace stores to its website. In other words, a business or consumer can check the inventory of a nearby Ace store, find the product or products needed, buy online and then pick up at that local store.
Interviewing some retailers, we found varying degrees of success with websites and awareness of how widely mobile devices are being used to research and/or buy products. Here are some of the comments made by those retailers:
Bill Round with Round’s Hardware in Stoneham, Mass., noted that he is encountering lots of online awareness
of product. One of the problems he confronts is that a customer might ask for an item on a Saturday that he doesn’t have but could get from his wholesaler by Tuesday. “The customer tells me to never mind. He’ll order via Amazon Prime and get it on Monday with free shipping,” Round notes.
In reworking his website, Round plans to feature this service: “Call ahead to reserve your merchandise. Email or text your request.” He believes that people are becoming gun-shy with websites that offer no human contact. “I tell them I’d be happy to verify my store QOH (quantity on hand). My computer often lies,” he says.
mobilE trEnds
Round realizes he needs to get his new and improved website up soon, and plans to sign up for Google’s Adwords service, supplementing direct mail with a more aggressive online web page.
“If they need something, people search specifically for that item,” he continues. “I think my site has to have a Search Here Quickly feature. People will not want to scroll through departments and such. They want to enter a key word and see what they want. They are used to using Google, and everything should work like that.”
Lex Stevens of Back Bay Hardware in Boston says his current website was brought online in 2009. The iPhone was only about 18 months old at the time, but he did optimize the site for mobile. Boston is a tech-savvy market, and the iPhone took off quickly there. “Due to some configuration problems, I cannot tell you at the moment the breakdown of traffic to our website, but I can tell you that traffic to our Facebook page is about 90 percent mobile,” he says.
Stevens explains, “My primary purpose for having a website—and for any social media and other online marketing—is for visibility. And given the continuing rise in mobile device use, the mobile user experience is just as important—if not more so—than the desktop experience. Judging by my own behavior as a shopper, if a business is not on the routes I frequently travel, or cannot
Mayer Paint & Hardware in Rochester, N.Y., has learned the importance of making its website mobile-optimized since so many customers are looking up products and store info on their smartphones.
be easily found on the internet, I am not going to find them.”
onlinE sElling ChallEngEs
One thing Stevens has learned about online selling—through his own website and on eBay and Amazon—is that it is not a plug-and-play add-on to his retail business. “Unless one already does a lot of phone orders and shipping, it demands some new infrastructure, training and change of habits. Selling online out of a warehouse, one has greater control over inventory,” he points out.
When selling online out of the store, the digital inventory needs to be darn near perfect, Stevens adds. “That requires a lot of work and more vigorous attention to detail than many hardware store employees—and owners—are used to maintaining,” he says. “Also, when inventory is accessible by the public, there are more opportunities for theft and breakage. And then there is shipping. In my youth, I worked
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for a company that did catalog sales. I know how a mail room is supposed to work. When one does not pack and ship frequently, it is difficult to maintain the speed and attention to detail required for it not to be a time and money suck. And it takes a fair amount of space.”
John Fix III, a tech-savvy retailer who operates Cornell’s True Value in Eastchester, N.Y., notes that “our website is mobile-friendly, it’s hosted by Squarespace and by Epicor and both the content portion and the e-commerce portion are mobile-ready. Google added requirements that sites be mobilefriendly in order to show up in search results. It’s very valuable to be mobilefriendly; we get calls all the time from customers on cell phones and people in the car on their way here because they found us online using their phones,” he says.
Fix participates in True Value’s shipto-store program and says he gets two or three orders per week on average. Products range from small pieces of hardware to large sheds, snow throwers and gas grills. “It’s a great service, easy to manage and brings in new customers,” he says.
Mayer Paint & Hardware in Rochester, N.Y., has definitely seen a substantial amount of growth in online ordering and mobile shopping in the store. “While we see internet sales continuing to be more integrated in
our operations, it can be difficult from our end to know what segment of those sales were made on a mobile device,” says Dennis McCarthy, store manager. “We do see many people shopping our prices versus prices they see online. If there is a big discrepancy we may have to remind them of shipping costs and the value of the convenience we provide. Occasionally, we may match a price to compete. We usually see around 20-30 online orders a week. I think we will see that number growing going forward,” he concludes.
What about the future? Bizrate Insights recently came out with a study saying that “roughly 73 percent of all online buyers are using a mobile device to shop online, and 21 percent are using mobile devices to help them shop in stores,” according to a story from Fierce Retail.
The story goes on to say that “close to 63 percent of shoppers use mobile to shop the competition while in a store, and 58 percent are comparing prices and coupons available at their present location to that same retailer’s online prices and deals. Roughly 40 percent of shoppers said they checked item availability on their mobile device before heading to a store.”
Those numbers are bound to increase as the world becomes more digital and more mobile. n
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Ordinary How to Go From Extraordinary to
Click to Watch More About How Jim Lehrer Makes Brownsboro Hardware & Paint Extraordinary
of Brownsboro Hardware & Paint in Kentucky, has gained new insights while serving as chairman of Do it Best Corp.
Jim Lehrer has been on both sides of the desk. After serving as general manager of Our Own Hardware and helping that memberowned co-op merge with Hardware Wholesalers Inc. in 1998, he and his wife Marilyn purchased a hardware store in Louisville, Ky. Brownsboro Hardware & Paint added a second store in 2011 in Prospect, Ky. Lehrer was elected to the Do it Best Corp. board of directors in 2010 and currently serves as chairman of the board. Brownsboro Hardware & Paint has been named Best of Louisville and Best of Kentuckiana (2012) and was awarded the “Extra Mile Award” from the mayor of Louisville in 2006.
Jim Lehrer
Brownsboro
Hardware & Paint
Louisville and
Prospect, KY
Wholesaler: Do it Best Corp.
Square footage: 8,000 sq. ft. for Louisville; 8,000 sq. ft. (including 1,000 sq. ft. greenhouse) for Prospect Years in business: Store has been serving area since 1960. My wife Marilyn and I purchased the business in 1998.
Number of employees: 35 Top-selling categories: Grills, lawn and garden, and paint/paint sundries. Best niche categories: Weber and Big Green Egg grills, but customer service is really the niche that makes us stand out the most.
What made you decide to become a hardware retailer after previous involvement in the wholesale hardware arena? When I was 15 I started working at an HWI yard in Wisconsin, and I worked in retail from 1975-82. Then I had a career with a wholesale company until 1998. There was a lot of travel and we had to move the family several times. I wanted to control my own destiny and I saw an opportunity with a store in Louisville.
Upper: On their first day of work at Brownsboro Hardware & Paint all new hires have to sign the “Extraordinary” wall to signify they understand the important role they play in delivering extraordinary customer service.
Brownsboro Hardware & Paint has locations in Louisville and Prospect, Ky.
Looking back I realize how fortunate I
Looking back I realize how fortunate I was to have the career path I’ve had, which allowed me to visit about 1,000 stores across the central states and attend buying shows and seminars that furthered my knowledge. I took what I learned from visiting all those stores and applied it to my business.
How has your time on the Do it Best board benefitted your business? Any time you can spend good,
DEALER PROFILE
quality time with other topnotch retailers it’s beneficial. It’s so helpful to learn from other retailers on how to build a better mousetrap and how to run
a better retail operation. The responsibility of a board member is to look at things from 30,000 feet to help the executive team at Do it Best make the right decisions. There has been a lot of
transition with the executive staff during my tenure on the board due to retirements, but Do it Best has a deep bench to fill those spots. There is a great culture in Fort Wayne and in the RSCs (Retail Support Centers) from the top down and the bottom up.
How would you describe the future for independent hardware retailers and what are the biggest challenges facing the industry? There are great opportunities for independent retailers, but you have to market your store as an alternative to the big boxes and the Amazons that are
Upper: The post office brings in about 200 customers a day.
Lower: Operating a community-focused independent hardware store starts by encouraging customers to shop local.
working hard to steal business from you. Amazon just started same-day delivery here in Louisville and the younger millennials do everything on their phones. You have to create a relevant experience for them. I want customers to choose my store because they’ve had a great experience there. Strong independent retailers can compete, excel and grow their businesses in challenging times.
How do you ensure your customer service stands out? We do a lot of training with staff members.
25mm Snap Blade Knife Makes Tough Jobs a Snap
I jokingly tell them that you have four chances to point people in the right direction, because I’ll cut off a finger each time you don’t. It’s important to take the customer to the product and point out all the reasons why a $16 filter is better than a $2 filter.
When I took over the business
I promised everyone that I would not run out of the three S’s: salt, shovels and sleds. So far I’ve been able to live up to that. We use a lot of different sources for ice melt. We get quite a few calls from Home Depot asking us for ice melt after they run out. Retailing is not rocket science—it’s having what customers need, when they need it.
Where did you get the idea to have employees sign the “extraordinary” wall on their first day? I stole that idea from another retailer, James Cabirac in Louisiana, who had a similar message in his store. I came back and created my own message about eight years ago. I talk to new hires about customer service on their first day and then they have to read the message out loud and then sign the wall, just like they’re signing a contract. We talk a lot about customer service and how they are supposed to treat customers.
How many customers do you attract each day to the postal station? We got close to 400 on tax day
The store offers free grill assembly.
(April 15), but we typically get about 200 per day. I wouldn’t have bought the store if it didn’t have a post office. The first year I probably had more sales with the post office than we did selling hardware. Customers have to pass a lot of endcaps going to and from the post office in our store.
What
other family members are involved in the business? In addition to my wife Marilyn, our son Mitchell works in the Prospect store and granddaughter Destinee helps come up with the creative endcaps, while grandson Matthew helps out here and there. ■
Jim Lehrer spends most of his time taking care of customer needs on the sales floor.
Diversifies Into Park Supply
WThe three owners of Park Supply Company are (left to right): Mark Stephens, James “Jimbo” Saunders and Rusty Dinwiddie.
Hardware
hen James Park Sr. started Park Supply in Huntsville, Ala., in 1963, he believed the key to success was building relationships with people. The company has stayed true to that philosophy ever since, even though they have recently expanded into hardware.
JAMES “JIMBO” SAUNDERS, RUSTY
Dinwiddie and Mark Stephens were all long-time employees when they collectively bought the business from the Park family in 2008. Saunders has been there 20 years and is in charge of marketing and purchasing, Stephens has been there 36 years and handles sales, while Dunwiddie has a 32-year tenure and handles the financial side as president.
Left: Park Supply’s new hardware section comprises 3,000 square feet, all devoted to items not stocked before.
Right: The back counter area was completely redone to make it more functional and attractive, an important element of the new hardware section.
“Mr. Park opened a showroom when that was not common. We were influenced by him to think on down the road,” Saunders points out.
Park Supply was founded as a plumbing supply company, which was all they aspired to be for their first 50 years of existence. With HouseHasson’s assistance, Park Supply has added a 3,000-square-foot hardware store in the back of their 8,000-square-foot plumbing showroom, opening up all sorts of new possibilities. Since the company operates as a plumbing wholesaler, they also have an 82,000-square-foot warehouse in the back.
“In the past if we needed some hardware items we’d buy them from a local independent hardware store. We had some retail, about 20 SKUs, and wondered if we could become more of a onestop shop for our customers,” explains Saunders.
The remodeling work started in March 2014 and they spent a lot of money to redo the counter in the back, which previously was used by plumbing contractors to order products. “There are a lot of opportunities in
hardware, and we’ve just scratched the surface,” Saunders says.
So far the response from customers has been tremendous, according to Saunders. “They say, ‘Wow. We just love what you did.’ Whenever you polish something up it creates a new level of excitement with your customers and your employees,” he says.
Guys like coming in the back hardware section while their wives look around the showroom. And Saunders notes that plumbing contractors like to physically touch products to fit things together.
“We have experienced, conscientious, knowledgeable people,” says
Lower Left: No retailer in the area comes close to carrying the breadth and depth of product Park Supply offers in categories such as faucets, tubs, toilets and sinks.
Upper Left: The plumbing showroom covers 8,000 square feet of space.
Upper Right: Park Supply’s employees have specialized expertise to be able to sell big-ticket bath remodeling projects.
Lower Right: Faucets and showerheads are functional, so customers can turn them on to see which one they like best.
Saunders. “For a lot of products in the showroom we have to work at selling, but if we can keep meeting people’s needs with our hardware product mix then that’s what we want to strive for.” n
Retirement Security Goes With
PlanningSuccession
Many business owners today are thinking about their retirement options and which plan is best for them, their family and their business. There are important aspects in picking the best succession plan for your company, especially if the buyers are going to be children, in-laws or key managers. All business owners want to maintain the net worth that they have accumulated over the years, but they also want the succession plan to work.
Over the past 40 years we have learned that about 25 percent to 30 percent of the current owners will sell to one or more family members. About 15 percent to 20 percent will sell to key managers and another 15 percent to 20 percent will sell to another store owner in their industry.
Selling to Family and Key managerS
If you are selling the business to a family member or key manager you have a lot of options pertaining to future retirement income, reducing income taxes on the sale, protecting
your net worth and protecting the company and all of your employees.
A good starting point is to think about which one or two individuals are going to take over control of the company. If it is one person, then they will obviously have more than 51 percent at some point in the future. If it is two individuals, then we need to decide if they are going to be 50-50 equal owners or will one person have 51 percent of the voting stock and the second person have 49 percent? Also, the ownership could be 60-40 or 70-30.
Another important decision to make at the beginning of this process pertains to owning the property. If you own the real estate that the company is located
in then you have more options to work with. Having a long-term lease and receiving rent for the next 10 to 15 years is always one good source of retirement income. If you own the real estate, then perhaps that property will remain in your name or trust and continue to be part of your family’s net worth.
Many owners are not quite sure which key manager or which child should take over. Because of that uncertainty we sometimes recommend that the current owner let the potential buyers take more control over the next one to three years. Let them make some of the big decisions and let them work with the employees, the vendors and attend the national buying shows. Let’s see how the children and/or key managers do over the next one to three years and then we can make a final decision about who will control the company in the future.
Selling to another BuSineSS owner
If selling your company to another business owner in your industry is your best option, then there are several important ideas to consider.
First, the buyer will probably pay all cash in one or two years. Also, the purchase price may be higher than selling to your children. Typically, in this situation, the buyer will have economies of scale and the ability to reduce expenses by purchasing your company.
Months before you agree to sell the company, review all of your selling
having a long-term leaSe and receiving rent For the next 10 to 15 yearS iS alwayS one good Source oF retirement income.
options with your advisory team, which would normally be a business attorney, your outside CPA and a financial advisor. All of these individuals should have lots of experience in selling privately held family businesses.
You need to review with your advisory team how to reduce income taxes on this sale. You need to discuss all of the legal documents that are involved in selling a business. Once the sale is made how much cash will you have left after paying taxes? If those funds are invested, how much income will you receive annually? At this point in time, understanding all of your options for selling your company are very important.
retirement income Security
For many business owners it is a very tough decision to give up voting control of their company and possibly reduce their income substantially. This is where tax planning and structuring the sale become very important. The owner wants to minimize as much tax as possible, but a business transaction with the next generation or key employees must be designed to work.
Sometimes if the current owner gets all of the tax breaks and the children or key employees get none, then they may not be able to make all of the payments.
SucceSSion Planning
At the same time, it is not fair for the children or key employees to get all of the tax breaks and the current owner is forced to pay higher taxes. Somewhere in the middle is where we must land so that the seller gets some of the tax breaks and the buyers can maintain a profitable company.
Since these buyers do not have a large down payment, there is normally a promissory note involved that is paid for over several years. The collateral for this promissory note must be carefully considered.
Often the seller will continue to be on the board of directors or have a consulting agreement and be paid for those services as part of the transaction.
When selling to children or key employees, it is important to combine the best two or three retirement income options in order to minimize taxes and maximize the retirement income for the owner.
Structuring the term sheet or letter of intent is one of your important objectives. By working with your team of advisors, you will know what the income taxes will be for the sale and what your future income will be going forward.
Planning the sale or transition of your business over three to five years and working with your advisors is always preferable. You will have a better chance for maximizing the value of the
company, minimizing income taxes and protecting your net worth.
Sometimes a current owner will still get a reduced salary for working part time. They can be paid to be chairman of the board of the company. As I said before, perhaps they will continue to receive rental income because of a new 10-year lease agreement signed by all parties. We sometimes use consulting agreements, non-competition agreements or an agreement to sell goodwill.
The goal is to combine the best two or three retirement income options in order to minimize income taxes and maximize the amount of cash flow for retirement.
There are many different options for an owner to look at in order to sell their business and protect their retirement income. Picking the best combination of the options available to you is very important for the success of this transition that you are thinking about. n
Gary Pittsford, CFP®,
is president and CEO of Castle Wealth Advisors, LLC. Castle specializes in helping families and closely-held business owners with valuations, succession planning, estate and income tax analysis and retirement income projections. He is the author of “Your Family Business, Your Family Net Worth.” To order go to: click here. For more information visit www.castle3.com, call 888-849-9559 or email Gary@Castle3.com.
By Keith Lam
How to Develop a Winning Transactional Security Strategy
In 2015 the Europay, MasterCard,and Visa (EMV)
“chip and pin” security mandate went into effect, creating a flurry of activity and adoption among retailers. Following this, it would have been reasonable for retailers to breathe a sigh of relief and to believe their transactional security to be secure.
But even with EMV protections in place, the industry cannot relax about security. One example: EMV stops at the card reader, so unless other measures are put in place to secure transmitted credit card information real data security is still very much an issue.
Here’s a look at a few items retailers should consider to devise an effective end-to-end transactional security strategy:
The Card vs. The Cloud
One of the biggest misconceptions surrounding EMV is that the chip now found on customer credit and
debit cards somehow protects personal credit card information during all transactions. This is not true; EMV technology is designed to prevent card counterfeiting and EMV prevents fraudulent card use only at the point of purchase.
In this regard, EMV is a protection that comes a little too late. In the past, credit card fraud was primarily committed by tampering with card scanning devices, as was the case with arts and crafts chain Michaels Stores. In 2011 Michaels’ point-ofsale devices were tampered with to allow thieves to access card numbers plus personal identification numbers (PINs) to create counterfeit cards that were then used to take money from bank accounts via ATMs.
This scenario is what EMV was developed to prevent, even though EMV can and has been hacked. Today, the vast amount of credit card fraud is being perpetrated via data breach. To this end, other means of securing bank account numbers and other information are necessary to protect customer data.
The era of daTa BreaChes
According to CreditCards.com, “Data breaches totaled 1,540 worldwide in 2014—up 46 percent from the year before—and led to the compromise of more than one billion data records.” The company also reported
that 1,107 of those breaches occurred in the United States, which equates to 72 percent of breaches in the world.
Retail data breaches occur in a variety of ways, usually when hackers find their way into a retailer’s accounts either by breaking into the retailer’s billing or banking systems, by hacking its computer systems or even by accessing the systems of a third party that does business with the retailer. In virtually all cases, hackers access a retailer’s customer names, account numbers, email addresses and other information, which is then sold to identity thieves or otherwise used to make unauthorized purchases.
The 2014 incident surrounding Home Depot involved hackers who accessed the retailer’s systems and stole the passwords as well as email addresses of Home Depot customers. Those account numbers and email addresses were then used by hackers hoping to trick people via email phishing scams into giving away more sensitive information. The highly publicized 2013 breach of Target Corp. accounts followed similar tactics.
Retailers can help to protect customers’ data by employing technologies that encrypt data and are designed in such a way that neither the retailer nor the payment gateway/network has all of the account information—only the information needed to process their parts of the transaction. Customer data
is designed to never be accessible on the retailer’s billing systems.
Point-to-point encryption and tokenization are two different payment security features, normally used in conjunction to minimize the risks associated with data breaches by not storing customer bankcard numbers. This combined solution offers the added benefit of reducing Payment Card Industry (PCI) compliance scope, because the retail system and networks never access any actual bankcard numbers.
With point-to-point encryption, payment transaction data that travels between the point of bankcard insertion or swipe and its payment processor is designed to be fully encrypted, translating into a form that outside parties can neither decode nor use.
With tokenization, bankcard numbers cannot be stolen in a data breach, because they are not stored in the retailer’s billing systems. Instead, the billing system acquires a “token” from the payment gateway or processor. This token represents the card number, which is still unique, but replaces all major-brand bankcard numbers transmitted to payment processors, as well as those stored in the retailers’ systems for house accounts.
Each token is created usually by replacing the parts of the card number with other characters. This unique character string is specific to the card, to the retail business and to the billing
system. Even if a breach exposes a third party to a transaction or house account file, that third party cannot access a card number that they can reuse. That token cannot be used in any other way, with any other retailer or point-of-sale system.
Retailers, however, can still reuse a token to process credits or returns. Each token retains enough of the card number to allow retailers and customers to recognize the card.
The tokenization approach bolsters security measures that retailers may already have in place, such as PCI. PCI is analogous to locking the doors and windows of a hardware store. So long as thieves cannot get in, products, cash and even paper files are safe. However, once thieves smash the windows or break through the doors, anything and everything can be stolen, unless, in addition to locking the windows and doors, merchandise is further protected with additional security measures. In this latter scenario, even if thieves enter the building, they will have additional (and we hope significant) work to locate, access and seize the “merchandise” to steal it.
TeChniCal ConsideraTions
The good news is that putting this technology in place does not require extensive technical knowledge. It is coded in the software. There are no other point-of-sale function changes,
so there is no learning curve for store employees or customers.
Since the encryption capability comes from the payment processors or the payment gateway, the sole integration concern is to ensure retailers have card readers or mobile devices (in the case of mobile pointof-sale transactions) that support encryption. In most cases, if retailers have upgraded to EMV readers to remain compliant, they already have in place readers that support encryption. PCI guidelines are not yet a requirement, so it is something which retailers will need to inquire about in order to be certain.
Point-to-point transactional security via tokenization is not new technology, but it is enjoying renewed attention as retailers realize that even with EMV in place, data breaches are still possible and expose them to liability. As high-profile transaction data breaches continue to garner headlines, resulting in bad publicity and loss of customers, retailers must forge a true end-to-end transactional security strategy that goes beyond EMV adoption. n
Keith Lam is senior product marketing manager at Epicor Software Corp. for Epicor® Eagle® software, a comprehensive retail business management system built for today’s independent retail businesses. Use of Epicor products does not guarantee that you or your system will be free from unauthorized intrusions and security breaches.
Beacon awards
Nominate Your New Store for Beacon Awards
If you have recently opened a new store, then don’t miss the chance to be recognized. The Beacon Awards, which are co-sponsored by The Hardware Conference and The Hardware Connection, honor the Best New Stores in two categories: under 20,000 square feet and over 20,000 square feet, plus the Retail Beacon Award winners for each of the participating wholesalers.
Premier Beacon Award sponsors include Apex Tool Group, Epicor Software Corp., Sunnyside Corporation and 3M. Additional wholesaler sponsorship support comes from Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Co.
Get your nominations in now for the Best New Store award by the June 1 deadline. Any dealer can nominate his store and nominations are also accepted from wholesalers.
Judging will be based on any or all of the following criteria: financial performance (sales, profits, margins, etc.); community involvement; store design; merchandising displays; promotion activities; specialized product areas/niches; employee training/recognition programs; and innovative retailing concepts.
Qualifications:
• Store must have been open at least one year, to a maximum of 4 years.
• New groundup store or it can be a substantially expanded existing store.
• Can also be a store built to replace store destroyed by natural disaster.
• Store must feature all the core departments: electrical, plumbing, lawn and garden, tools, hardware and paint.
• Can also be new to business owner, if substantial changes are made.
• Can be a branch store.
The Beacon Awards Banquet will be held Friday night, September 9, 2016 at the Marriott Marco Island. Honorees will receive: all-expenses paid trip for two to the 2016 Hardware Conference in Marco Island including conference registration, airfare, hotel and meals; Beacon Award plaque and feature article in The Hardware Connection.
Please include detailed information for each of the judging criteria, attach any relevant pictures, list the date of new store opening and also provide retailer name, store name, square footage, address, phone number and email address. Email nominations by the June 1 deadline to Tom Delph, Beacon Awards program director, at tdelph@thehardwareconnection.com. n
IN THE NEWS
NEW STORES:
• Steve Oliva opened Ace Hardware in Scappoose, Ore.
• Dale and Kim Lindner, owners of Linder Ace Hardware, have purchased a third store in Little Chute, Wis., from David and Sherffy Verhagen.
• Niemann Foods has opened a new Ace Hardware store in Champaign, Ill.
• Meridee Kaiser has opened Joe’s True Value in Mountain Home, Ark.
• The Kopetsky family is opening a second Kopetsky’s Ace Hardware in Orange City, Iowa.
• Bill Bregar opened Ace Hardware in Lead, S.D.
• Wayne and Karen Lundgaard sold True Value Hardware in Ellsworth, Wis., to longtime employee Casey Waltz.
• Jake Morri has opened Hometown Ace Hardware in Hastings, Minn.
• Lucas Hostetler has opened Adamsville Hardware & Supply in Adamsville, Ohio.
• Steve McCants has opened Fort Mitchell Trading Post in Fort Mitchell, Ala.
• Vince, Kyle and Cindy Anderson have purchased Curby’s True Value Hardware in Beaverville, Ill., from Jim Curby.
• Houchens Industries has opened its seventh Ace Hardware in Elizabethtown, Ky.
• Foster’s Ace Hardware in Piketon, Ohio, has been purchased by E&H Hardware Group.
KUDOS TO:
• Hartman Hardware in Shawnee, Kan., is celebrating its 70th anniversary.
• Dell Rapids Ace Hardware in Dell Rapids, S.D., was named Chamber of Commerce Business of the Year.
• George Thurrott, owner of Modern Hardware & Paint in Medford, Mass., received the Medford Chamber of Commerce Executive Director Award.
• Tommy and Donna Vacek are celebrating the 75th anniversary of Vacek’s Hardware in East Bernard, Texas.
WHOLESALERS IN THE NEWS:
• True Value Co. reported revenue increased 1.3 percent for the fiscal year ending Jan. 2, 2016, to $1.497 billion, with net margin of $19.0 million.
IN MEMORY:
• Dane Sheahen, who owned Mutual Ace Hardware in Highland Park, Ill., was killed when the plane he was flying crashed on March 12 in Florida. He was 63 and predeceased by his wife of 25 years, Sandy. He is survived by his children Kristen and Kyle.
“Where Relationships Are Formed”
3 Days of Networking, Relaxing and Learning
Meet colleagues and new friends at the industry’s largest conference for independent hardware retailers. Share ideas with top retailers on how to grow your business, interact with key vendors on how to increase sales in your store and attend educational seminars, all-industry cocktail receptions and dinners in an exclusive 5-star resort setting.
Learn More About Your POS System at the Hardware Technology Forum
Epicor, ECi Advantage/ECi RockSolid and J-3 POS will offer full-day, hands-on training sessions for their retailers. Bring your tablet or laptop so you can log right into your store as you learn new “tips and tricks” to make your POS software more productive in your store.
Honor the Industry’s Best Retailers at the 2016 Beacon Awards
The Beacon Awards are an important recognition program that honors the best of the best dealers who represent the future of the industry.
Sponsors:
Co-Sponsors:
• Bob Noble Jr., STIHL Southeast president, passed away March 8. He joined STIHL Southeast in 1988 and was promoted from sales manager to president in 1999 upon the retirement of his father and STIHL Southeast founder, Bob Noble Sr. Noble Jr.’s enthusiasm for STIHL and for extreme sports led to the establishment of the STIHL Offshore Racing Team in 2007.
• Arthur Seguin, who along with his family owned five Home Hardware stores in Ontario, passed away April 13 at the age of 89. He is survived by his children Larry, Carol and Bernard.
FULL STORY:
• Beacon Paint & Hardware’s key to outlasting the big boxes. Click here
• Phillips Hardware moving on to new business venture: Click here
SHERWIN-WILLIAMS TO ACQUIRE VALSPAR
The Sherwin-Williams Company has reached an agreement to acquire The Valspar Corp. in an allcash transaction valued at about $11.3 billion.
The combined company would have pro forma 2015 revenues and Adjusted EBITDA (including estimated annual synergies) of approximately
$15.6 billion and $2.8 billion, respectively, with approximately 58,000 employees. The transaction is expected to close by the end of Q1 calendar year 2017.
John Morikis, president and CEO of The Sherwin-Williams Company, said, “Valspar is an excellent strategic fit with SherwinWilliams. The combination expands our brand portfolio and customer relationships in North America, significantly strengthens our global finishes business and extends our capabilities into new geographies and applications, including a scale platform to grow in Asia-Pacific and EMEA. Sherwin-Williams will continue to be headquartered in Cleveland and we intend to maintain a significant presence in Minneapolis.”
Gary Hendrickson, chairman and CEO of Valspar, said, “We are pleased to announce this compelling transaction, which delivers immediate and certain cash value to our stockholders. We believe that Sherwin-Williams is the right partner to utilize our array of brands and create a premier global coatings company. The combination of Sherwin-Williams and Valspar will benefit our customers, employees and other stakeholders.”
Founded in 1806, Valspar is headquartered in Minneapolis. Valspar’s reported net sales in fiscal 2015 were $4.4 billion. SherwinWilliams is marking its 150th anniversary in 2016. ■
Be Part of the Hardware Industry’s Exclusive and Professional Women in Hardware Program!
Designed for professional women and men in the two-step hardware industry to exchange ideas, educate, network and provide support and access to opportunities to further careers and help grow the independent channel.
Who’s Eligible to Join?
• Independent Hardware Store Owners and Managers
• Vendors Involved in the Two Step Hardware Industry
• Service Providers Involved in the Two Step Hardware Industry
• Wholesalers/Distributors
• Industry Professionals
Activities
• Membership benefits include up to six networking events per year held in conjunction with other industry events.
• Each event will have a business focus offering direct and immediate benefits.
• Vendor and Service Providers will have the ability to interact with business owners and others in management positions sharing experience, concerns and solutions.
• While focus is on women and their opportunities, men are welcome and encouraged to participate to better understand and lend their perspective of the industry.
Marquee Sponsors Presented by
MAY
Do it Best Corp. May Market
May 20-23, Indiana Convention Center, Indianapolis
National Hardware Show
May 4-6, Las Vegas Convention Center, Las Vegas
JUNE
House-Hasson Summer Dealer Market
June 16-18, Sevierville Events Center, Sevierville, Tenn.
United Hardware Fall and Winter Buying Market
June 17-19, Minneapolis Convention Center, Minneapolis
JULY
World and Main Fall Dealer Market
July 28-30, George R. Brown Convention Center, Houston
AUGUST
Ace Hardware Fall Convention
August 18-20, McCormick Place, Chicago
Florida Hardware Company Fall Dealer Market
August 12-14, Double Tree Hotel and Convention Center, Orlando, Fla.
HDW Fall Dealer Market
August 19-21, State House Convention Center, Little Rock, Ark.
Independent Garden Center Chicago
August 16-18, Navy Pier, Chicago
Orgill Fall Dealer Market
August 25-27, Sands Expo & Convention Center, Las Vegas
The Eastern Show for Independent Garden Centers
August 2-4, Valley Forge Casino Resort, Philadelphia
World Pet Association SuperZoo
August 2-4, Mandalay Bay Convention Center, Las Vegas
SEPTEMBER
Blish-Mize Fall Dealer Market
September 16-17, Overland Park Convention Center, Overland Park, Kan.
Bostwick-Braun Company Fall Dealer Market
September 22-24, Seagate Convention Center, Toledo, Ohio
Home Hardware Fall Dealer Market
September 18-20, Henry Sittler Buiding, St. Jacobs, Ontario
Monroe Hardware Fall Dealer Market
September 17-18, Myrtle Beach Convention Center, Myrtle Beach, S.C.
PACOA Fall Market
September 10-11, Queen’s College, Flushing, N.Y.
The Hardware Conference
September 9-11, Marco Island Marriott, Marco Island, Fla. www.thehardwareconference.com
True Value Fall Reunion
September 16-18, Colorado Convention Center, Denver
For a complete listing of calendar dates, click here: http://thehardwareconnection.com/programfeatures-benefits/calendar-of-events/ Send calendar dates to chris@thehardwareconnection.com
Behind the Numbers
48%
Sales increase for home automation products for six-month period ending December 2015, according to NDP Group/Retail Tracking Service.
$15.6 billion
Combined global paint revenue of Sherwin-Williams after its deal closes to acquire Valspar Corp.
$7.1 million
Amount raised by Ace Hardware retailers for Children’s Miracle Network hospitals in 2015.
75%
Percentage of U.S. adults who own a grill or smoker, according to the Hearth, Patio & Barbecue Association. Of these, 45 percent plan to purchase a new grill or smoker in the next year.
26%
Percentage of global millennials (ages 17-31) who have posted a review on an online retail site, according to GlobalWebIndex.
45%
Percentage of global online users who have used social media on a mobile device in the past month, according to GlobalWebIndex. n
