Issuu

Serving Hardware, Home Center & Building Material Retailers

Service Is in the Bag The Characteristics of 5-Star Employees 42

Learn From Other Retailers’ Hiring Mistakes 50

VOLUME 214 • ISSUE 4 • APRIL 2018 • HARDWARERETAILING.COM

Start Your Engines in Outdoor Power Equipment 56

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Delivering the Best in Class Orgill’s commitment to customer service is evident in every order, from the reliable deliveries to the drivers who become part of your team.

“We expect our wholesaler to be competitive and efficient on deliveries, and with Orgill’s sophisticated network of distribution centers, they’ve never missed a beat.” Terrill Bartlett l Bartlett’s Lumber & Hardware, Texas l An Orgill customer since 2003

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Orgill starts its best-in-class deliveries by putting

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For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. P.O. Box 140, Memphis TN 38101-0140

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VOLUME 214 • ISSUE 4 • APRIL 2018 • HARDWARERETAILING.COM

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Learn From Other Retailers’ Hiring Mistakes 50 Start Your Engines in Outdoor Power Equipment 56

“The Cost of Doing Business Study sheds light on opportunities to better your business. We highly recommend it as one of your first steps into any improvement project.” Lauren Mathews | Connolly’s Do it Best Hardware & Rental FOR MORE INFORMATION, GO TO THEREDT.COM/2018-CODB-PARTICIPATE

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Service Is in the Bag The Characteristics of 5-Star Employees 42

Learn From Other Retailers’ Hiring Mistakes 50

VOLUME 214 • ISSUE 4 • APRIL 2018 • HARDWARERETAILING.COM

Start Your Engines in Outdoor Power Equipment 56

The new Command Series

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■ Diamond coating provides 4X grip vs. uncoated tips; resists slipping and cam-out ■ Thermoplastic rubber/acetate co-mold tri-lobe handles transmit 20% more torque ■ Manganese phosphate coated shafts with laseretched markings www.crescenttool.com

■ Size markings on ends of handles

Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS

Show Off Your Space You’re seeing more foot traffic this time of year, and those feet may be dirty. Even though you’re busy, you should still commit to maintaining your operation’s appearance. Here are a few spring cleaning tasks for your daily routine.

DIRECTOR OF COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger

136 N. Delaware St. #200 Indianapolis, Indiana 46204 Phone: 317-275-9400 Fax: 317-275-9403 Email: nrha@nrha.org Website: nrha.org SOCIAL MEDIA LINKS

@NorthAmericanRetailHardwareAssociation @NRHA_Official North American Retail Hardware Association nrha_official HEADQUARTERS STAFF

FEATURES EDITOR Melanie Moul PROFILES EDITOR Renee Changnon ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber MARKETING AND RESEARCH COORDINATOR Hilary Welter SENIOR DESIGNER Lynnea Chom MULTIMEDIA DESIGNER Graeme Haase GRAPHIC DESIGNER Kelsey Truex WEB DEVELOPER Kevin Trehan

PRODUCTION MANAGER Nancy A. Vondersaar

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

SALES AND PRODUCTION ASSISTANT Freda Creech

MEMBER SERVICES

CIRCULATION

TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org

CIRCULATION DIRECTOR Richard Jarrett

EVENT MANAGER AND RETAIL SUPPORT Katie McHone-Jones, 317-275-9426, kmchone-jones@nrha.org

EXECUTIVE DIRECTOR Scott Wright, 317-275-9417, swright@nrha.org DIRECTOR OF RECRUITMENT Tom Marcum, 317-275-9430, tmarcum@nrha.org

NRHA CANADA NRHA CANADA Michael McLarney, 528 Queen St. E., Toronto, Ontario, Canada M5A 1V2; +1 416-489-3396, mike@hardlines.ca

STATE AND REGIONAL ASSOCIATIONS MIDWEST HARDWARE ASSOCIATION John Haka, 5000 Woodward Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080 PACIFIC NORTHWEST REGION Ronald F. Moore, 3857 Wolverine NE, Suite 20, Salem, OR 97305 (UPS, FedEx); P.O. Box 17819, Salem, OR 97305 (U.S. Mail); 503-375-9024; Fax: 503-375-7980; AK, ID, OR, WA SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; AR, KS, LA, MO, NE, NM, TX

Look outside in. You may have the chance to merchandise outside in the sunshine. Be sure the walkway is swept and the windows are sparkling to attract customers.

Take the plunge. Restrooms can become a much bigger project if they’re not regularly refreshed. Check restrooms twice per shift to make sure they’re stocked and clean.

CIRCULATION/SUBSCRIPTION/ LIST RENTAL INQUIRIES PHONE 314-432-7511 FAX 314-432-7665

SALES/NRHA VENDOR PARTNER RETAIL LEADERSHIP INSTITUTE

Products that look old or dirty aren’t likely to sell, so be sure someone on your staff is tasked with dusting a section of the store each day.

PRODUCTION SERVICES

PRESIDENT AND CEO Bob Cutter

MEMBER GROWTH AND DEVELOPMENT MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org

Grab a rag.

When the store is clean, get back to selling! Watch the videos on spring selling skills on the nrha.org home page.

DIRECTOR OF SALES Lowell Huffman MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 317-275-9403, chris@millermediainc.net WEST REGION MANAGER Jon Dawson, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, jdawson@nrha.org NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9414, Fax: 317-275-9403, jharper@nrha.org GREAT LAKES REGION MANAGER Lowell Huffman, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9443, Fax: 317-275-9403, lhuffman@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

NRHA MISSION

The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers. NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Megan Menzer, Newton’s True Value, Cherryvale, Kansas EXECUTIVE VICE CHAIRMAN T.J. Comstock, Northwest Hardware LLC, Billings, Montana DIRECTORS Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year. (Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00.

David Dishke, Grand River Home Hardware, Caledonia, Ontario

Periodical postage paid at Indianapolis, Indiana, and additional mailing offices.

Steve Fusek, Fusek’s True Value, Indianapolis

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209. All editorial contents copyrighted 2018 by the North American Retail Hardware Association. No editorial may be reproduced without prior permission of the publisher. REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

HARDWARE RETAILING | April 2018

SECRETARY-TREASURER Bob Cutter, NRHA President and CEO IMMEDIATE PAST CHAIRMAN James Cabirac, Kief Hardware, Cut Off, Louisiana

DRIVEN TO BE THE BEST.

LOOKS THAT SELL. At Do it Best Corp., we are Driven to Be the Best – and that means helping you look your best, too. The Do it Best Signature™ Store Design program offers a flexible, scalable and affordable way for you to energize your store’s performance with interior and exterior retail design strategies, uniquely tailored to fit your market and store size. Signature Store Design features branding strategies and designs that enhance the overall customer experience. Stores that complete our Signature Store Design enjoy average sales increases of 17% in just the first year – and we think that’s beautiful! Let our design team show you how to enhance your visibility and customer experience with Signature Store Design. After all, when you look good, we all look good. IT’S WHAT DRIVES US TO BE THE BEST.

“The Do it Best Signature Store Design program is the perfect blend of powerful branding and market strategies custom tailored to your business. Our experienced design team is ready to work for you - let’s get started.” — Brian Kimball, Store Development Manager

Call us today at 888-DO IT BEST (364-8237). independentsdoitbest.com

Contents APRIL 2018 | VOLUME 214 | ISSUE 4

72 PROFILE

Get to Know The Grommet Nearly a decade ago, a company called The Grommet launched an online platform to bring innovative, problem-solving products made by entrepreneurs straight to consumers. Since then, the company has rolled out more than 2,500 unique products to consumers and is now majority-owned by Ace Hardware Corp. OPERATIONS

Count Your Lucky Stars

What does it take to earn five stars? The team at Hardware Retailing explored the qualities that build a five-star employee: commitment, a desire to learn and a friendly demeanor definitely top the list. Learn what stood out three retailers, all who serve different positions in their companies. Their stories will show you how you can discover—or become—a five-star employee yourself. For more gold standard stories, visit TheRedT.com/5-star.

Making Hiring Course-Corrections Sometimes, an employee just doesn’t work out like you hoped. Whether it’s not being a good fit for the role or something as serious as theft, it’s important to learn from your hiring mistakes. Find out what signs retailers may have missed and how they approach hiring to avoid repeat mishaps.

Let’s Take This Outside Sponsored by STIHL The outdoor power equipment category fires up pros and DIYers. Read the five ways Colonial Hardware and Beisswenger’s Hardware market and promote the category to attract new and repeat customers. 4

HARDWARE RETAILING | April 2018

Find Your Way in Rental From small hand tools to substantial outdoor power equipment, many retailers already have the inventory on-hand to segue into rental. For many retailers, it’s just a matter of establishing a system. Learn how two retailers in different markets have built their standards for rental.

Departments

50 OPERATIONS

56 CATEGORY SPOTLIGHT

76 OPERATIONS

66 INDUSTRY EVENT

Oh, the People You’ll Meet To give you a preview of what you can expect at the North American Retail Hardware Association (NRHA) All-Industry Conference, we put together this guide of the different people you might bump into and what you can learn from them.

06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 14 . . . . . . . . . . . . . . . . NRHA News 20 . . . . . . . . . . . . . . . . . . . . . Trends 24 . . . . . . . . . . . . . . . . New Products 34 . . . . . . . . . . . . . . . . . . Checkouts 80 . . . . . . . . .Newsmakers/Calendar 82 . . . . . . . . . . . . . . . . . . Last Word

On the Cover Julie Haff, who works as head cashier at Connolly’s Do it Best Hardware & Rental, has a positive attitude and a commitment to top-notch service, earning her five stars . NRHA photo by Lynnea Chom

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On the Web

CONSUMER Q&A

PROFILES

Insights From 5-Star Employees Leaders from E&H Hardware and Modern Home & Hardware share stories about their stellar employees at TheRedT.com/5-star. Best of all, the five-star employees themselves share insights about what motivates them to shine. Glean inspiration from these top-notch employees to encourage stronger performance among your own staff.

How a Customer Hits the Show Floor While the National Hardware Show® isn’t a consumer-focused event, it can draw attendees from outside the industry. Visit TheRedT.com/deanna to learn what catches the eye of consumer Deanna Tratensek, NRHA volunteer and home improvement shopper. Her perspectives can help you think like a customer as you prepare to hit the show floor.

RESOURCE

Employee Traits How can you identify the potential for greatness in the applicants you interview? How do you cultivate a desire to excel and great attitudes among members of your existing staff? Head to TheRedT.com/5-star-checklist to read what traits and characteristics employers think make a great employee. Share with your staff to encourage professional development.

RESOURCE

How to Hire Better Employees A bad hire can cost you a lot of time and money. One way to find out more about job applicants is to give them a simple test that evaluates their math and problem-solving abilities. The test will give you one more way to determine how well the applicant is suited to work in a retail environment. Visit TheRedT.com/skills-test to download a PDF of a sample skills test you can use during the hiring process. 6

HARDWARE RETAILING | April 2018

PROFILE

Business Brings Outdoor Power Enthusiasts Together Howard Brothers Outdoor Power and Hardware has become synonymous among commercial landscapers in its community as the go-to source for all outdoor power equipment needs. Visit TheRedT.com/howard-bros-event to learn how the business managed to achieve this reputation.

SOCIAL MEDIA LINKS

@HardwareRetailing @hardwareretail

Independent Thinking

We’re Ready to Listen

“We want to provide

an event where the entire industry can unite to celebrate the successes of independent retailers.

”

ne aspect of my job that I truly enjoy is the ability to get out and spend time with the retailers, distributors and manufacturers who all play integral roles in making our channel so vital. Recently, between the North American Retail Hardware Association (NRHA) board of directors meeting, the various wholesale markets and a trip to the International Hardware Fair in Cologne, Germany, I have had some great opportunities to spend time with all these channel partners. During these engagements, there is one thing that I try to do that is more important than just about anything else—listen. I listen to what all these groups have to say: the good, the bad and the ugly. I want to hear everyone’s thoughts on the industry, and most importantly, I want to solicit their input on how we can all come together to help independent home improvement retailers succeed. One thing that I have heard loud and clear over the last several months is that independent retailers are passionate about their businesses and they are also passionate about helping each other. They all go to work every day in different towns. Their stores are all slightly different, and they all fly different flags. But the one thing they have in common is that they are independent and they are eager to help their communities and each other. Since I have worked at NRHA, there have been a lot of changes in this industry. Businesses open. Businesses close. Companies merge. These kinds of changes will likely continue well into the future. Throughout all the changes, however, independent retailers have found ways to go to market, serve their customers, support their communities and carve out a living for their families. Because of this shared experience, when you get a room of independent retailers together, they are quick to offer support to one another regardless of wholesaler affiliations, product mix, geography, size of operation or time in business. That’s what makes events like the NRHA All-Industry Conference so important to every member of the home improvement channel. This event, held annually in conjunction with the National Hardware Show®, provides a setting where independent retailers can come together and share their war stories, provide support to one another and offer ideas and best practices to help each other succeed. But the NRHA All-Industry Conference is also an important event for all members of the channel because everyone is welcome there—distributors, manufacturers, analysts or anyone else who has a vested interest in the wellbeing of independent home improvement retailers. We want to provide an event where the entire industry can unite to celebrate the successes of independent retailers, learn from each other and broaden their horizons about the support network that is out there for them. To find out who you might meet at the NRHA All-Industry Conference, turn to Page 66 and learn more at nrhaconference.com. Also, look for even more detailed information about the event in next month’s issue of Hardware Retailing. And most importantly, when you are out in Las Vegas attending the NRHA All-Industry Conference, I and other members of the NRHA team will be on hand, ready to listen to what we can do to help you succeed.

Bob Cutter, President and CEO

bcutter@nrha.org

HARDWARE RETAILING | April 2018

Beautiful products to inspire your customers.

Hangers

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Ties

Fasteners

Post Bases

Angles

Straps

Simpson Strong-Tie offers an eye-catching display in three sizes (2', 3' and 4') to increase visibility and sales of the new Outdoor Accents decorative hardware line. Featuring black powder-coated connectors and screws, Outdoor Accents provides both design elegance and structural strength, giving your customers the inspiration to build custom outdoor living structures. Visit go.strongtie.com/outdooraccents or call us at (800) 999-5099.

4' Display

Taking Care of Business

Breaking Up Is Hard to Do

“A good leader looks

for ways to empower employees to reach their goals, motivates them to perform better and is willing to listen to constructive feedback on how things could be done better.

”

t’s not you… it’s me. This line has been used so many times to end ill-fated relationships that it has become a cliché, a self-deprecating way to point out that two individuals simply aren’t compatible. Chances are a few of you out there have either heard, or perhaps used, this line in your own romantic endeavors. But let me ask you if you have ever had this same sentiment on the job. This month, in our feature beginning on Page 50, we will look at some of the common mistakes retailers make when hiring and how to avoid those mistakes when recruiting new team members. The story provides some keen insights from retailers who strive to continually improve their teams by adding qualified, well-vetted members. But there is one “hiring mistake” that I have seen people make that is perhaps the most difficult one to overcome. And that leads me back to the infamous breakup line: It’s not you, it’s me. The mistake I am referring to is in no way specific to those of you operating in the retail world; it can apply to just about any workplace, but there are some reasons it can be more vexing for independent retailers. So, what is this mistake? I guess the easiest way to put it is that as independent business owners, you are often the sole decision-maker in your operation. You call the shots. You pay the bills. You make the decisions. So, oftentimes when an employee doesn’t seem to measure up to your standards, you immediately assume the employee is the problem. I’ve even talked to retailers who will go so far as to tell me how they just can’t seem to hire a decent employee no matter how hard they try. I’m sure there are instances where you can go through a rash of bad hires. But sometimes, when you look around and none of your employees seems to be meeting your expectations, perhaps it’s not them… it’s you. There is absolutely nothing wrong with setting high expectations for any individual you are paying to perform a job for you. In fact, you should set high expectations. But if you look around your operation and feel that your employees are constantly missing the marks you set for them, there’s a good chance you need to look beyond just their performance. It’s not at all unlike that 40-year-old bachelor sitting on his couch surrounded by empty pizza boxes while playing video games complaining about how women set their standards too high. Again, there is nothing wrong with setting high standards, but a good leader goes beyond goal setting. A good leader looks for ways to empower employees to reach their goals, motivates them to perform better and is willing to listen to constructive feedback on how things could be done better. So, as you read our article about how to avoid hiring mistakes, don’t overlook the fact that a big part of finding the right team that will help take your business to the next level involves your willingness to evolve and improve as a leader. Committing to this kind of improvement can truly be a career-long pursuit, but the better you become at leading your team, the more certain you can be when you do have to let someone go that it might actually be them… and not you.

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | April 2018

LIKE A BIG FAMILY OUR WINNER’S CIRCLE JUST KEEPS GROWING

IT BEGAN WITH A SPARK Since 1907, we’ve been igniting the will to win in everyone and every machine that we support. To this day, our growing range of products is designed to keep that spark alive. Now we’re introducing wiper blades, batteries, lighting, air, cabin air and oil filters that give you an important choice to make. When it comes to caring for your machine, you can either service it or Champion it.

CHAMPIONAUTOPARTS.COM

It’s a real

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sweet spot.

Now here’s a great reason to smile. Broil King® is the best choice for profitable grill sales between $300 - $699. That’s over 40% of the market! Broil King® provides you with a competitive advantage offering an extensive line up of quality North American made grills that will appeal to customers who are looking for quality, performance and value. See why hundreds of independent and specialty retailers have increased sales and profit by selecting the right line up of Broil King® grills within these price ranges. broilkingbbq.com/become-a-partner

‘‘

atched multiple m at th ills gr e th of ity al qu e Th tly what we felt our price-points was exacRan dy Saunders n Pines, NC ner of Ace Hardware in Souther Ow . ed ed ne s customer

Please contact Tim Brideau tbrideau@omcbbq.com for more details on becoming a successful Broil King® dealer. BaronTM S590 model shown.

Advertorial Broil King | broilkingbbq.com

It’s a Real Game-Changer hange is good. That’s why a growing number of hardware retailers are selling Broil King grills. In an industry that is constantly changing, embrace the opportunity to sell a grill that is made in North America, covers your retail sweet spot and offers amazing performance for years to come. “A quality grill that matched multiple price points was exactly what we thought our customers needed,” says Randy Saunders, owner of Southern Pines Ace Hardware in Whispering Pines, North Carolina.

The Challenge The “10-mile dilemma.” What can your store offer to encourage a consumer to drive 10 miles past the competition and visit you? That customer looks for service, expertise, variety and a retail experience that instills confidence in their buying decisions. According to a survey by Think Jar, an advisory and research think tank, 86 percent of consumers will pay more for excellent customer service and a great customer experience. Here are some simple things you can do to ensure your customers have a great experience in your shop. • Offer a selection of quality grills in the price points that fit their budget. • Take advantage of staff training offered by your vendor partners. Not only does Broil King offer training on product features, we also teach you how the grills perform and cook. Remember, you’re selling an experience, not a box of technical specifications. • Showcase a range of interesting lifestyle accessories to excite your customers. Show them how easy it is to get into a performance grill that will expand their grilling experience. • Create a shoppable destination.

The Feel-Good Story To win the trust and confidence of your customers, you need to tell a story you believe in. Broil King’s history is built upon strong North American traditions, focusing on domestic manufacturing and high-quality performance grills. From in-house engineering, painting, enameling, injection molding and aluminum die-casting to quality North American steel fabrication—Broil King is committed to supporting a North American business community. Suppliers, material providers, employees and retailers like you are part of the Broil King product family. Every Broil King grill is built around Performance Grilling Technology, giving your customers the ability to grill anything in any style they desire. Every part of the grilling system is designed to deliver delicious grilled flavor, perfect steakhouse sear marks, great heat retention and even heat control.

“We offer the largest range

of quality American-made gas grills, and provide extensive training, because we want you to be successful. —Tim Brideau, Broil King

”

The Game-Changer Broil King has a wide range of product offerings, with better feature sets and margins, from $299 to $3,000. It also has the largest professional grill accessories assortment in the industry. Look at the retail landscape challenges you face. Everyone seems to be selling the same grills at the same price, with assembly and delivery for free. You shouldn’t have to dig deep into your pocket to get the customers through the door or race the big-box stores to the bottom. Broil King has over 50 gas, charcoal, pellet and built-in alternatives. As a result, you’ll appeal to a broader range of customers and attract new and profitable business opportunities for your store. “We offer the largest range of quality American-made gas grills, and provide extensive training, because we want you to be successful,” says Tim Brideau, director of hardware co-op sales at Broil King. “Your success is our success. We’re in this business together.”

The Payoff The majority of grill sales are made in between $399 and $899, so don’t be afraid to sell in this price range. By having Broil King on your salesfloor, you don’t have to sacrifice margin or quality and can have a compelling story to offer great selection to your customers. Typically, when you sell an American-made product, you have to sacrifice margin, but that is not the case with Broil King. “With Broil King, it’s exactly the opposite,” Saunders says. “We’re actually boosting our margins over offshore produced grills. It’s easy to sell, easy for the customer to understand and easy for our associates to explain, but it’s made right here, and we bring more to the bottom line.” Read more about how many other Broil King dealers have made a refreshing change and upped their game by checking out our dealer and customer reviews at broilkingbbq.com/become-a-partner. Broil King: It can be a real game-changer for your grill business.

April 2018 | HARDWARE RETAILING

NRHA News

How Does Your Business Compare?

s your average transaction size normal? Do you spend more or less on advertising than other independent home improvement businesses? How does your net profit compare to average and high-profit operations? Get all of your financial questions answered by participating in the 2018 Cost of Doing Business Study. The North American Retail Hardware Association (NRHA) is now collecting data from independent hardware stores, home centers and lumberyards in the U.S. for this year’s study.

What is the Cost of Doing Business Study? Conducted annually for more than 100 years, the study is the independent home improvement industry’s only inclusive, industry-specific benchmarking tool. Business owners can use it to compare their financial performance to industry averages in areas including sales, profits, operating expenses and more. This year’s study will also include data on hot topics like health insurance, wages and employee training.

How can I access the study? The only way to obtain the 2018 Cost of Doing Business Study, which is valued at $500, is to participate. The easiest way to send your data is to complete the online survey at CODB2018.nrha.org. You can also submit your financial documents via email, mail or fax. For details on the different ways to participate, visit TheRedT.com/2018-codb-participate. No matter how you choose to send in your information, your data is completely safe. All financial information is reported in aggregate.

4 Perks of Participating In addition to receiving the complete study, all participants also get the following informative elements. 1. What-If Scenarios This section provides a summary of the financial information you submitted, and you can use it to create “what-if” scenarios. For example, if you think your cost of inventory may increase by 1 percent in the coming year, you can manipulate other areas, such as decreasing payroll, to see what changes need to be made to preserve net profit. 2. Your Ratios This section includes your financial ratios along with a summary of the ratios used within the study.

HARDWARE RETAILING | April 2018

3. Composite Financial Statements These pages provide financial statements for typical and high-profit stores, including your company’s financial data, for comparison. 4. Strategic Profit Model This section combines the principal elements of the income statement and balance sheet in a profit-planning equation so you can compare your results to both typical and high-profit businesses. The deadline to submit your data for this year’s study is June 30, 2018. Take a few minutes today to submit your information before the heat of spring selling season takes over.

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NRHA News

How to Create an Employee Training Program

5. Determine the forum of training.

1. Establish your goals.

6. Commit your resources.

f you’re new to employee training, setting up guidelines and processes is your first step. While it may be tempting to take a less formal approach to training, remember that the more time and effort you put into your training program, the more effective it will be. Follow the steps below to ensure you don’t miss anything and that the process is efficient. For more information on each step and further guidance on starting or improving an employee training program, download NRHA’s Train the Trainer guide at nrha.org/freetraining.

Define specific goals that are measurable and achievable so you can celebrate those goals when you reach them. Your objectives for training will determine what courses you will require and who you will train.

2. Appoint a trainer. Consider delegating someone else on your staff to be the trainer so they can give training the attention it deserves. This person will monitor employee progress, maintain records and hold your staff accountable.

3. Decide who to train. Everyone can benefit from training. You may want to prioritize where to focus your efforts to decide which employees could benefit most. Start by listing everyone in your company according to their training needs.

4. List the required courses. Ensure the courses you offer align with your goals and your company needs. It’s helpful to list the estimated time each course will take to help you budget your resources and to help employees plan for how much time they should commit.

HARDWARE RETAILING | April 2018

Take advantage of the various forms of training, including online, classroom and one-on-one in-store training. Be aware that employees will have different learning styles, and using several methods will help different learners.

Online courses, such as those offered by NRHA, are cost-effective as many employees can train for one low price. Higher-level training may cost more. Remember, you can’t expect to reap the benefits of training unless you invest.

7. Schedule time for training. In a busy retail environment, it’s critical you are intentional about making time for training. Plan when, where and how long you expect employees to train. Protect that time from interruptions.

8. Evaluate your program. When employees finish a course, review the plan you created and see if it has been effective. Decide how often you will evaluate your training program and build that into your plan.

9. Recognize achievement. Many employers offer an incentive for completing training. Having some type of reward provides motivation for taking the course and shows employees you support their desire to learn, even if it is a mandatory part of their jobs.

Red Lion® Battery Backup System When the electricity goes out, homeowners will have peace of mind knowing their investment is protected with the Red Lion® Battery Backup System. This efficient pump puts less strain on the battery, and the proven switch technology minimizes mechanical hang-ups. They have a nice basement. Keep it that way.

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NRHA News

Mom and Dad Will Thank You

n May 12 and June 16, children across America will be panicking. Yet again, Mother’s Day and Father’s Day will have snuck up on them, and they’ll be in a pinch to find the perfect last-minute gifts. Use NRHA’s Home Sweet Home Mother’s and Father’s Day shop local graphics on social media to remind your customers that they can come to your business to find unique gifts for Mom and Dad. Available for free at TheRedT.com/mothers-fathers, these social media graphics depict holiday-themed designs to explain the local economic impact made when a customer chooses to shop local instead of at a big box. Not only will moms and dads benefit, your entire community will, too. You’ll be helping to drive holiday foot traffic into your business, while also encouraging your customers to put their dollars back into your community. In addition to the social media graphics, this package also includes posters, shelf talkers, bag stuffers and more, so you can capture your customers’ attention in-store as well as online. Start spreading the word about the Mother’s Day and Father’s Day gifts available on your shelves to make the most of these upcoming holidays.

NRHA’s Mother’s Day and Father’s Day signage package can help you stay top of mind for gift shopping this year.

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HARDWARE RETAILING | April 2018

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International Hardware Fair Unites Industry

n March, business owners, manufacturers and industry experts converged in Cologne, Germany, for the 2018 EISENWARENMESSE International Hardware Fair. Attendees got a global glimpse at the trends and technology shaping the future of the industry. NRHA sent representatives to the International Hardware Fair to meet with industry experts and keep North American retailers current with the latest products and technological advances that could set their operations apart. NRHA chairman of the board Megan Menzer says this was her first trip to the event, but its scope—nearly 15.5 million square feet of event space featuring products from 2,700 manufacturers—impressed her. “My first impression was that I couldn’t believe the size of the event. There are so many booths and hands-on demos. It is clear that the exhibitors really make an investment in their booths and presence at the show,” Menzer says. Spanning four days, this year’s event focused on technological opportunities and how retailers can incorporate these advances into their day-to-day operations. Events included a special presentation on 3D printing capabilities, informative keynote addresses at the dSummit, and the presentation of the EISEN Award for product innovation.

NRHA representatives attended the International Hardware Fair to meet with manufacturers, industry leaders and business owners.

WARRANTY 1 YEAR

Trends Fourth-Quarter 2017 Shows Economic Uptick

The Purchasing Managers’ Index (PMI), which is the only leading economic indicator included in this report, experienced double-digit growth above the fourth quarter in 2016. PMI shows the health of the manufacturing sector, and a reading above 50 means general growth. The quarter’s average of 58.7 reflects robust production and high demand for products. Consumer confidence, which is measured by The Conference Board, was also strong for the quarter, exhibiting a 17.5 percent uptick above the same period in 2016. Average existing-home sales, new housing starts and home prices also went up year over year, but not as dramatically.

At a seasonally adjusted rate

5.5 Existing-Home Sales (in millions)

The year 2017 ended on a positive note for the U.S. economy, with fourth-quarter results showing growth in consumer confidence and in the housing and manufacturing sectors.

Existing-Home Sales

5.0

4.5

4.0

3.5 J

2017

Months

Manufacturing and Consumer Confidence Show Growth Economic Metrics

Definition

Housing Starts (in thousands)1

The per-month average number of new residential single-family and multifamily homes that have begun construction, using seasonally adjusted rates.

Consumer Confidence2

The level of optimism that consumers express about the state of the economy, shown through saving or spending money.

Existing-Home Sales (in millions)3

The number of completed sales involving single-family homes at an adjusted annual rate.

Existing-Home Price (in thousands)3

The average of the median prices for all existing housing types.

Purchasing Managers’ Index (PMI)4

The health of the manufacturing sector based on measuring new orders, inventory levels, production, supplier deliveries and the employment environment.

Q4 2016

Percentage Change

Q4 2017

1,249 1,256

107.2 126.0

1.3% 5.61

$223 $247

10.8%

53.3

10.1% 58.7

Sources: U.S. Census Bureau 1, The Conference Board 2, National Association of Realtors 3, Institute for Supply Management 4

HARDWARE RETAILING | April 2018

17.5%

5.54

All numbers are derived from October, November and December data.

0.6%

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New Products

“These knives are durable,

hold an edge, are practically indestructible and fulfill a lot of roles for fishermen and outdoorsmen.

”

—Pat Hopkins, Peters True Value Hardware

1 “Our customers are really

interested in the barnwood look. These boards are durable and can be washed and cleaned easily.

”

—Grant Levitt, Marcus Lumber Supply

1. Fillet Knife

2. Interior Accent Panels ™

The 7-inch Tapered Flex Fillet Knife from Bubba Blade has full-tang construction from a single piece of steel to provide strength and stability. It has a 6-inch handle that features a patented, textured no-slip grip. The blade is treated with a nonstick coating to prevent rusting and to make it easier to use when filleting fish and meat. Bubba Blade 844-486-7265 or bubbablade.com

HARDWARE RETAILING | April 2018

Enkor™ Interior Accents are barnwood-inspired panels that are washable, durable and easy to install. Enkor panels feature the texture of wood grain with imperfections and color tones matching barn wood. The panels come in three styles: Mountain Music, Urban Cowboy and Classic Country. Enkor Interior Accents 800-236-1528 or enkoraccents.com

RETAILER PICKS These four products were selected by retailers like you! Share your favorite products by contacting Chad Husted at chusted@nrha.org.

“Our kitchen demo area is

one of the first things you see in our store, and our Vitamix demos are a constant showstopper for customers. —Lisa Rooks, Revell Ace Hardware

”

3 “Vertical cable railings are

the new style. These railings are being used in many high-end applications.

”

—Rudy Valentino, Cleveland Lumber

3. High-Performance Blender ®

™

4. Wire Railings

The Vitamix Ascent Series A2300 features a 1-10 speed dial, start-stop switch and pulse switch for control. The A2300 has a digital timer and works with all Vitamix SELF-DETECT™ containers, which can adjust blending settings based on the container used.

Westbury® VertiCable® railings are made from aluminum and are designed to provide unobstructed views in exterior settings. Railings are available in 36- and 42-inch heights. The railings come in 12 colors and can be combined with a variety of Westbury accessories.

Vitamix 800-848-2649 or vitamix.com

Digger Specialties 800-446-7659 or diggerspecialties.com

April 2018 | HARDWARE RETAILING

New Products

5. Fabric Hose

7. Connected Garage Door Opener

The FATMAX Exojacket® Hose is a lightweight, industrial-grade hose. The Exojacket technology increases durability by serving as an external shield and is UV-protected. Titanium-coated forged aluminum repairable couplings allow damaged hose ends to be reattached. It is designed to withstand 600 psi.

The NOVA system allows standard garage door openers to connect to smart home systems. Through the SkylinkNet app for smartphones, users can connect to their garage door openers through Wi-Fi. It is also compatible with services like Amazon Alexa. The 12-watt LED light delivers the same brightness as a traditional 100-watt tungsten bulb.

Stanley Black & Decker 800-262-2161 or stanleytools.com

Skylink Technologies 905-456-8883 or skylinkhome.com

6. Repair Tape T-Rex® Tape is designed for projects and long-lasting repairs. Double-thick adhesive allows the tape to stick to rough and dirty surfaces in all weather conditions and temperatures. It is UV-resistant and comes in four sizes. T-Rex Tape 800-321-0253 or trextape.com

8. Dehumidifier Tub The Mossy Oak® Storage Zone™ Dehumidifier tub uses activated charcoal to eliminate odors and excessive moisture. It can be used in storage areas filled with damp items such as hunting gear and sportswear. Drying crystals gradually pull moisture from the air, while activated charcoal works against smells by trapping and absorbing odors. It is fragrance-free. Willert Home Products 314-772-2822 or willert.com

HARDWARE RETAILING | April 2018

DEALS

You’ll get them here.

INNOVATION You’ll find it here.

EDUCATION You’ll learn it here.

NEW PRODUCTS You’ll see them here.

The future of home improvement is here. Registration is now open: nationalhardwareshow.com

The tool that powers your business

May 8-10, 2018

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New Products

10 9 Retail Magnetism

9. Auto-Feed Screwdriver The Senco DS312-18V 2500 RPM cordless auto-feed screwdriver is battery-powered and capable of driving up to 3-inch screws. Featuring DuraSpin® Technology, it loads with a patented screw strip drive. Screw length can be changed via a tool-free adjustment. Senco 800-543-4596 or senco.com

10. Wine and Beer Cooler

Our magnets attract customers and profits. You can rely on over 40 years of experience and over 250 products to support your continued success. Let us show you how the retail power of magnetic attraction can work for you. Call 888.293.9190 or visit magnetsource.com/retailsupport

BarCooler™ beer and wine insulators are built with a patent-pending double wall stainless steel design to keep beer and wine bottles cold for several hours. The coolers are 100 percent BPA-free and nontoxic. The wine insulator fits most 750 milliliter bottles and features a silicone stopper cap to keep wine fresh. BarCooler 773-289-0630 or mybarcooler.com

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HARDWARE RETAILING | April 2018

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11 11. Garden Gloves Mud® gloves are made with a nitrile coating on the fingers and palm for gripping while gardening, planting, weeding or handling tools. The lightweight and form-fitting design increases tactility and reduces fatigue. The gloves are machine-washable. Safety Works 800-969-7562 or safetyworks.com

Stock The Product That Will Be Leaping Off Your Shelves! FrogTape® is the only painting tape treated with PaintBlock® Technology which delivers sharp paint lines the ﬁrst time, every time. Available in off shelf displays, make sure your store has FrogTape® stocked so customers can experience the FrogTape® difference!

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New Products

12 American Made & Profitable For Over 80 Years

12. Acrylic Paint The Majic Diamondhard RePurpose Interior-Exterior Acrylic Satin Paint is designed to transform weathered furniture and surfaces without sanding or priming. This paint can be applied to ceramic, tile, PVC and vinyl by brush, roller or spray. The paint is available in 10 ready-mixed colors. Majic Paints 800-848-7898 ext. 284 or creativity-unleashed.com

13. Charcoal Bin With a variety of clearly marked spring assortments, Ajax offers your customers ease of selection for their specific needs. Each assortment comes in their own unique case. Our storage cabinets and kits, provide assortments of Steel Lock, Brass Lock, Music Wire, Stainless Steel, Extension, Compression and more, each making dispensing efficient and economical. Ask for our Product Catalog which provides product descriptions and size specifications.

Toll Free: 855-966-AJAX (2529) www.ajaxwire.com ajaxwire@aol.com 119 Bloomingdale Road, Hicksville, NY 11801

HARDWARE RETAILING | April 2018

The Kingsford Kaddy is a heavy-duty, weatherproof charcoal storage tote that keeps barbeque briquettes fresh, dry and ready to pour into a grill or fire pit. Handles make it easy to carry and use around a deck, patio, RV or tailgate. The storage tote also keeps bugs away from unused charcoal. Buddeez info@buddeez.com or buddeez.com

14. Carpet Rake The OXO Good Grips FurLifter Carpet Rake cleans large surfaces such as carpets, area rugs and pet beds of pet fur, lint and dust. A double-sided microfiber brush lifts and traps fur, hair and lint. It is cleaned by retracting the brush, so refills are not required. OXO 212-242-3333 or oxo.com

New Products

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15,000 PSI

Heavy-Duty Quick-Release Grease Couplers

Burst Pressure:

22,000 PSI

Patented Design

LX-1403

The My Extra Paint bottle features an all-in-one bottle and brush kit designed to store leftover paint in a ready-to-use manner for later touch-ups. The patented bottle top is designed to clean the brush stem of extra paint while being removed, leaving enough paint on the brush for small applications. The bottle can hold up to 10 ounces of paint. My Extra Paint 716-652-0350 or myextrapaint.com

16. Flood Containment Kit Single-Hand Operation

• Innovative Design enables Quick-Release Coupler to firmly latch onto the Grease Fitting, enabling Hands-Free Greasing.

Quick Dams’ Grab & Go Bucket can hold 50 feet of flood containment barriers and can be refilled after use. The buckets come filled with a variety of barriers such as flood bags, barriers, berms and mats.

• Integrated Non-Return Valve enables unit to be Disconnected Easily at Pressures up to 15,000 PSI (1034 Bar).

Quick Dams 888-761-4405 or quickdams.com

Installation

LX-1403-XL

• Integrated 1/8” NPT Connection. • High-Performance Hydraulic Seal. – No need to buy Spare Kits! Lumax.com | 844-660-6876

HARDWARE RETAILING | April 2018

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17. Protective Surface Coating Peel-Tek™ 150 is a temporary protective surface coating and liquid masking product that dries to form a protective coating on porous and non-porous surfaces. It is designed to protect surfaces from damage caused by over-spray, staining, surface scratches, spills and drops. Upon completion of construction, the coating peels off. Peel-Tek 512-993-4976 or peel-tek.com

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Checkouts MERCHANDISING

Count the Connections

ho wouldn’t want X-ray vision? Beyond the Superman comparisons, home repairs and installations would be a snap. Imagine being able to see the inner workings commonly hidden behind drywall or brick throughout a home, showing the links between your electrical system and plumbing lines. Dunn Lumber decided to make that kind of view possible, except without the superpowers. The Seattle-headquartered lumberyard business has nine locations across the state, and two have displays that show off as many electrical and plumbing connections as can be fastened to an endcap. Jake Matheson, product merchandising manager for Dunn Lumber, says the displays were first installed in the Bellevue lumberyard, with the Kirkland location following and more to come. The endcap displays are designed to show each connection needed to wire a house or install plumbing. The electrical board shows how a breaker box can connect to switches, lights and plugs throughout a home, including specific plugs designed for appliances like refrigerators or specialized items like bathroom vents. On the plumbing board, a main stack pipe is shown that connects to commonly seen faucets, shower heads, drains and even the washing machine connection. Along the way are the multiple types of pipe needed for each connection, including traps. A water filter tap and how it can be connected into the system is also shown. On top of assisting customers with projects, the displays are also an aid for employees, says Matheson. “It’s all about getting the right information to the customer. It helps our employees interact with the customer, and employees appreciate anything you can do to help that interaction,” Matheson says. The concept comes from one of Dunn Lumber’s distributors, Burlington Merchandising and Fixtures, Matheson says. The displays are part of a full line of shelving that has the strength to support larger products found in lumberyards like Dunn Lumber locations but have the appearance and usability of retail-ready shelving. These shelves also allow for more vertical storage while hiding overflow products with signage for advertising or directing shoppers. “The companies selling fixtures and gondolas to grocery and clothing stores don’t have products that can work in the LBM business. With our fixtures, I can use the first seven feet for products customers can reach, then use the top two feet for back stock,” Matheson says. “We’ve gotten up to 3,000 extra square feet of storage now, which in Seattle is really hard to find.”

Washington State lumber retailer Dunn Lumber features two cutaway displays at some its stores. These displays show and detail common plumbing and electrical connections.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here. Have an idea? Contact Melanie Moul at mmoul@nrha.org to have your story considered for publication.

HARDWARE RETAILING | April 2018

Checkouts

COMMUNITY RELATIONS

Remembering Where You Come From

art of growing and expanding a business is always knowing where you started. The first customers who came through your doors were the ones who helped your business become successful. At CJ’s Do it Center in Price, Utah, that past is remembered in a spectacular way. CJ’s, founded in 1936, has built a diverse business in the hardlines of hardware and lumber while becoming known as a strong supplier of fences, gates and doors to the region of Carbon County. To honor that same region, owner Rick Krompel brought in his son and artist Justin Krompel to paint a mural depicting some of the area’s most prominent occupations and industries. The in-store mural depicts several scenes and people who define Carbon County: a desert ranch entryway, several roughnecks, a welder, a rancher and more. The mural has become something of its own attraction, helping drive additional traffic into the store on a regular basis. “Price is a town that’s always been heavily into coal mining. It’s part of the history. Rick wanted to show respect for some of those industries like coal miners and construction workers,” manager Melissa Causi says. The mural was commissioned in 2016 and it took about a year to complete as Justin worked on it during weekend trips to Price.

A mural depicting local industry and careers is on display at CJ’s Do it Center in Price, Utah.

COMMUNITY RELATIONS

Students Are Stars at Ohio Lumberyard

Winners of the Vocational Stars award get their photos posted at Klinker’s Lumber and Builders Supplies.

HARDWARE RETAILING | April 2018

tudents taking courses at the Pike Career Technology Center in Piketon, Ohio, will get a boost from their local lumber and building materials retailer. Bill Klinker Jr., owner of Klinker’s Lumber & Builders Supplies, located in nearby Waverly, Ohio, encourages students who want to pursue a career in the trades with his company’s Vocational Stars award. “People who are involved, or who are preparing to be involved, in a vocational occupation are the backbone of our community and our country, and we want to recognize and support their efforts,” Klinker says. “We all should raise public awareness of the value of vocational education, recognize student achievement and support local educational efforts.” Students enrolled in a specific vocational education program at the Pike school are eligible for Klinker’s award. Awards are given to students in each field of study offered at the school, for each grading period throughout the year. Honorees receive a certificate, a letter of congratulations, a press release and a gift certificate for Klinker’s Lumber & Builders Supplies. “Encouraging students to consider a career in the trades obviously relates to our business,” he says. “It’s also important to show them that a career in those types of industries can pay well and hold a lot of opportunity for those who want it.”

comfort, room by room

www.marsdelivers.com

Checkouts

COMMUNITY RELATIONS

Kids Build and Grow With Garden Grant

ichelle Overbeck loves to see the enthusiasm on the faces of children when a truck from Big Creek Lumber pulls up in front of their school. Overbeck is the marketing manager for the company, which has five locations in central California. The garden beds are part of a grant program that gives local schools everything they need to build two 4-by-8-foot garden beds that can be used to teach children about gardening and healthy living. “When we show up at a school with the garden beds on our truck, I love to see the excitement of the kids waiting to unload it,” she says. “We feel fortunate that we are able to give back to our communities.” She hopes the kids are learning about construction and understanding that it’s something they can do. “I also think it’s very important that we’re helping these kids grow their own food and learn where their food comes from,” she says. “We’re helping them start healthy habits while they’re still young.”

HARDWARE RETAILING | April 2018

Each year, Big Creek Lumber selects area schools for its garden bed packages. The packages include lumber, hardware and soil for constructing the bed.

EVENTS

Come for the Fish Tales, Stay for the Deals

veryone has heard their share of fish tales from anglers, those exaggerated claims of fish they’ve caught, fish that got away and the one they totally caught but didn’t get a photo of to show you. It’s part of the rite of passage when putting together an event for fishers, and there’s been plenty of tales told at the Sunshine Ace Hardware location in Bonita Springs, Florida, over the years. The store, one of seven in the Sunshine Ace Hardware family gathered around the Naples region, has conducted its “Reel in the Sunshine” fishing expo for three years, with this year’s event taking place on Feb. 10. The expo features seminars from renowned fishers and boat captains, deals for customers, product demos from vendors and giveaways for the crowd, which reached about 1,000 this year, says chief merchandising officer Scott Hamblen. “It’s really a lot of fun for the fishing community to have expert seminars but also just to gather. We have people who sit for eight hours with a notebook and learn from the captains. There’s a lot of camaraderie, where conversations turn to, ‘Where are you fishing? What are you catching?’” Hamblen says. The annual event also serves as a fundraiser for two charities close to the fishing community’s heart. Sunshine Ace Hardware has worked with the Muscular Dystrophy Association for years, and the association sponsors trips to Outward Bound programs for people with muscular dystrophy. Outward Bound conducts expeditions and programs designed to educate through adventure. The second charity is the Gene Doyle Fishing Tournament, an event that raises funds for the Gene Doyle Memorial Foundation. The foundation, named after a Naples-area graduate fond of fishing and adventure who was killed in a car accident, awards scholarships to other area high school graduates looking for growth in the outdoors and fishing.

The “Reel in the Sunshine” event at Sunshine Ace Hardware brings together fishers and vendors for deals and seminars.

April 2018 | HARDWARE RETAILING

Exceeding Expectations. One Fastener Destination at a Time!

“Midwest was our choice for our new store. We have what we need for our customers and don’t turn anyone away. The dual-slide racks have allowed us to add more items and display them in the right spot.” - Ricky and Cody Miller, Owners, Miller Ace Hardware, Louisville, KY

For your very own fastener destination, contact Glen @ 800-444-7313 x 120

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5-Star Employees Discover What It Takes to Shine

ow do you create a thriving business? What are the traits of great employees who stand out within a team? Hardware Retailing spoke with successful retailers to discover what they look for in top-notch talent. Those retailers recommended their own five-star employees. To learn what motivates them to drive their teams to success, we spoke to the five-stars, too. In the following pages, you’ll meet excellent employees from three unique home improvement businesses to learn how they entered the retail industry

HARDWARE RETAILING | April 2018

and how they perform at their peak daily. You’ll also find out from their employers what characteristics have helped these workers stand out in the interview process and as valued members of their retail operations today. Future five-stars can visit TheRedT.com/5-star-checklist for an overview of the qualities that make a well-rounded employee with prospects for rising in their companies. The employees highlighted in this article are examples of people who embody the characteristics their employers look for in every person hired for their respective positions.

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“What I appreciate so

Striving to Do More Julie Haff Head Cashier Connolly’s Do it Best Hardware & Rental

After 25 years of owning and operating a pet supply retail business, Julie Haff and her husband closed up shop. Although she was hunting for a new job, she didn’t think retail would continue to be a part of her journey—yet a routine shopping trip opened a door to something that she still loves today. “My husband was shopping at Connolly’s one day, and he learned that the store was hiring for cashiers,” Haff says. “At that point I had never even been inside the store, but I drove straight there and filled out an application. Ten years later, I’m still here and now I’m the head cashier.” Haff came to the business with no prior knowledge of the hardware industry, but her background as a business owner and her strong work ethic have made her one of the most vital employees in the business, Connolly’s Do it Best Hardware & Rental owner Michael Connolly says. Personality is very important for a cashier, he says. The cashier is the first and last person to address a customer, so it is important for people in this role to be friendly and make a good impression on the customer. Looking at past experiences, Connolly says he would hire someone with a good personality even if they had never used a cash register, because he can teach someone the skills they need to do their job, but he can’t teach personality. “I would rather be patient in the hiring process than to hire someone that ends up being a project,” he says. “I knew immediately that Julie was a good fit. During the interview, she was very easy to talk with. She had prior experience in retail and was able to speak to that experience.”

HARDWARE RETAILING | April 2018

much about Julie is that she is superb with customers, but she is also organized and a self-motivated individual.

”

—Michael Connolly, Connolly’s Do it Best Hardware & Rental The Right Stuff The traits and skills Haff possesses work to her advantage in her position. She enjoys getting to know customers and giving them directions to the department or person they might need. Being able to help solve customers’ problems is a point of pride for her. “I know that the majority of people who walk through those doors are here because they have a problem they’re dealing with,” Haff says. “If I can at least get them in the right area and alert one of our experts to help, it really makes me feel good.” Haff is also a standout employee because of the work ethic she exhibits in other parts of her position. “What I appreciate so much about Julie is that she is superb with customers, but she is also organized and a self-motivated individual,” Connolly says. “She keeps her area at the cash register tidy, she knows the sales we have running and she can quickly recognize when there’s an issue in the store. Because of that, she helps us keep the business running smoothly. And if there is a problem, she tries to come up with solutions to fix it.”

Setting an Example Staying busy is vital for cashiers, even if shoppers aren’t walking through the door or are ready to check out. Haff multitasks, whether that means reviewing sales books on the computer, checking inventory levels or making price changes. She not only compares inventory for her location, but for all four Connolly’s stores in the Fort Wayne, Indiana, area. When new employees join the team, Haff is also responsible for training them on the register. Doing a good job in any position requires the person to look beyond the role they were hired to fill, Haff says. “I believe you should always strive to do more,” she says. “You need to be willing to help in other departments and learn about the business

as a whole. If you’re aware of what needs to be done and you stay busy, you can be an example for other employees, and you can prove that you are a valuable part of the business.” Finding these qualities in an employee is important and is a strong reason why retailers should invest in their staff to improve retention, Connolly says. To keep employees, he provides continual training, like giving team members the chance to work in all the different areas of the business. Employees are also welcome to attend customer-focused in-store training events to enhance their knowledge and connect with the community. Connolly also continues to encourage his team to develop their skills and complete training through online resources, like programs available through the North American Retail Hardware Association (NRHA). From the employee perspective, Haff says hearing feedback and gratitude for a job well done also helps for employee retention. “I respond well to receiving feedback in a positive way, so even if I need to change something, I know they want to help me grow,” she says.

Julie Haff, head cashier at Connolly’s Do it Best Hardware, does her part to satisfy customers, train new hires and keep the business running smoothly.

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Taking the First Step Casey Williamson Manager Manchester Hardware

Before joining the team at Manchester Hardware in June 2015, Casey Williamson had experience working at an independent business and in hardware. Her retail career started in high school, when she worked at an independent pet store, and she later got at a job at a Tractor Supply Co. store. “I appreciated how much I learned there, but it wasn’t until I came to Manchester Hardware that I learned how much I could contribute to an independent environment with everything I had learned about the industry,” Williamson says. When she interviewed for the role of rental associate at the Easthampton, Massachusetts, store, she knew the business was where she wanted to be. “It was kind of a no-brainer,” she says. “It felt nice to be back in the independent setting. The community and Mancaster Hardware are close-knit, and we have a lot of loyal customers.”

A Prime Promotion Owner Carol Perman appreciates Williamson’s past experience, and since she has joined the team, Williamson has become an asset to the entire operation, Perman says.

“Casey is becoming more well-rounded and more aware of the different ‘whys’ and ‘hows’ of the business.

”

—Carol Perman, Manchester Hardware 46

HARDWARE RETAILING | April 2018

“Casey has such a strong work ethic,” Perman says. “She’s thorough, and she’s attentive when you’re talking to her.” Williamson’s respect for her co-workers and the work she does are also qualities Perman values. “Casey works with them as a part of the team,” Perman says. “She sets a good example being punctual and completely committing to the job at hand.” In 2016, the company’s store manager unexpectedly quit, leaving a hole in the management team. Williamson had recently been promoted to assistant manager, but was still learning the ins and outs of retail management. “Being new to management, I found myself without the store manager to teach me along the way. I was feeling a little green at that point,” she says. “I found myself needing to step up.” To help her gain the knowledge she needed at a critical time, Williamson and Perman looked into the NRHA’s Retail Management Certification Program, which is designed to help key employees enhance their leadership and retail operations management skills. At the time, Perman was looking for opportunities to downsize the business to focus on the core categories that were crucial for the Manchester community. NRHA’s program was the key to starting the downsizing process. Over the course of the six-month program, Williamson completed a project that helped the operation close its rental business. “We’re trying to reposition the business to best serve our community,” Perman says. “We want to get it leaner and meaner, and closing the rental business was part of that.” Since completing the NRHA program, Williamson has taken on more responsibility in the company and is becoming more familiar with the financial side of the operation. “Casey is becoming more well-rounded and more aware of the different ‘whys’ and ‘hows’ of the business,” Perman says. “We’re showing her the profit and loss statements and the margin reports. She’s learning all the time.”

Centered on Service Williamson is grateful for the opportunity to continue growing in her role, and she knows she has support all around her, from customers and staff. “Seeing loyal customers and working in a place that’s so full of history inspires me,” she says. “And there are a lot of people who have worked here for years. They’re full of information and experience.” Williamson says one part of her job that she enjoys most is working with regular customers to complete a large project.

“It’s a great feeling to see people come in with plans on paper looking to you for advice,” she says. “To be able to fulfill that list, and they come back with a finished product, it’s really satisfying.” A memorable project she consulted on from beginning to end was a bicycle that a customer found on the side of the road. With Williamson’s assistance, he rebuilt it into a motorbike and rode it to the store to show her the finished project six months later. Developing relationships with customers creates value that goes beyond just a sale, Williamson says. Being engaging and personable can make the difference between a one-time customer and a lifetime customer. “It’s important to have fun,” she says. “I always make sure to ask my customers open-ended questions to keep the conversation going.” With all the knowledge she has gained on the job and through additional training, Williamson has her sights on bigger plans for Manchester Hardware in the future. “It’s a big goal for us to go through a retrofit through our co-op. To be a part of that initiative has been exciting,” she says. “In the future, I’m hoping for an opportunity to assume more ownership within the company.”

Casey Williamson, manager at Manchester Hardware, enjoys being able to help customers see a project from start to finish successfully.

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“He is always supporting newer, younger and incoming staff members. He bridges the gap between generations.

Practicing Core Values Daniel Gorn Assistant Manager Hassett Hardware

Daniel Gorn interviewed at Hassett Hardware in 2015 for what he considers his “first real full-time job.” He was 19 years old, taking college classes, playing jazz music as a side gig and living in Half Moon Bay, California. He simply needed a reliable job. Gorn interviewed for a sales associate position at Hassett Hardware’s Half Moon Bay store, never dreaming he would love its company culture or that he would quickly grow into a company leader. “Daniel really embodies all of our core values,” says Eric Hassett, who co-owns the six Hassett Hardware stores in California. “He’s very customer-focused, friendly and inquisitive. He recognizes that the only reason we’re here is to serve customers.” Shortly after he started, Gorn took on more responsibility in the business. He began overseeing a section of the store, later was tasked with maintaining the Half Moon Bay store’s hardware department and fasteners selection. The company offers a program called Future Leaders, which Hassett says is an opportunity for promising associates to learn more about the business and learn “the language of being a supervisor.” Hassett thought Gorn would be a perfect fit for the program, and it served to prepare him for a bigger opportunity.

Bridging the Gap Gorn has grown as a leader through his ability to ask questions and challenge his team members to improve in a positive manner, Hassett says.

HARDWARE RETAILING | April 2018

”

—Eric Hassett, Hassett Hardware

In 2017, Gorn moved into an assistant manager position when Hassett Hardware bought an existing store in Belmont, California. He worked alongside the Hassett family while converting the store into a Hassett Hardware location, and now oversees many of the day-to-day operational responsibilities. The 50-year-old store needed to be revamped, and retirement-age employees needed to get on board with a new company culture. Gorn stood out as the man to bring positive change, Hassett says. He believes the changes that Gorn has led since July are evident. “The challenge was not small,” Hassett says. “The bulk of the store’s employees have been there a very long time, and they’re not young. Daniel has gotten them energized. He’s done a really great job with that, while at the same time, he is always supporting newer, younger and incoming staff members. He bridges the gap between generations.” For Gorn, developing his leadership skills with Hassett Hardware has been a pleasant surprise ever since he began working at the store. From even his first days on the job, he has seen how the team culture shapes the way Hassett Hardware does business and why it works well. “I really feel on board with where the company is going, and it motivates me to support everyone I’m working with,” Gorn says. “I have this built-in motivation now to make the store the best it can be and encourage the team to help each other as much as possible.” One way Gorn has been able to instill a sense of collaboration and support in his new role has been to maintain regular huddles, or check-ins, with the team at the start of the day. He uses these huddles to give the entire staff a chance to strategize for the day ahead and consider how to best meet customers’ needs while operating efficiently as a team. The check-ins remind staff of the values Hassett Hardware holds dear. “When it comes to coaching employees, it’s important to tie it back to specific core values,” Gorn says. “The core values and the culture are touched on by everything we do. It’s something that’s lived in and active.”

Putting In the Effort Gorn believes his personal work ethic and the lessons he has learned from the company’s owners on how a store should operate have shaped his own management style and helped him stand out as a five-star employee. “If I’m not doing well, I know before anyone else does. That’s kind of its own motivation,” Gorn says. “I know what a good culture looks like and what a well-maintained store looks like. It’s obvious when I need to try harder, plan better and change what I’m doing.” Taking a step back to see the big picture is something all employees can do to improve their performance and develop a strong work ethic, he says. According to Gorn, seeing the big picture is about recognizing high-priority tasks and knowing why those tasks are important. “Good work ethic is about earnestness, being proactive rather than waiting to be prodded to do something,” he says. “There’s a lot of personal satisfaction in completing a task and doing it well, rather than the bare minimum.” Hardware Retailing staffers Renee Changnon, Kate Klein, Melanie Moul and Todd Taber contributed to this article.

Daniel Gorn, assistant manager at Hassett Hardware, says the operation’s existing standards have helped develop him as a five-star employee.

Find More 5-Stars Online Independent businesses’ five-star employees have more star power than can fit in these pages! For more insight into the characteristics of five-star employees, read about these staff members from two Ohio operations at TheRedT.com/5-star.

Bill Powell, Hardware Team Leader, E&H Hardware After 25 years as a dairy farmer, Powell’s family sold their cows, and he was looking for a new opportunity. Eventually, he joined E&H Hardware in Delaware, Ohio. Powell goes to work eager to learn something new each and every day, after more than 14 years with the company.

Alyssa Tolzda, Inventory Manager, Modern Home & Hardware Right out of high school, Tolzda made a decision that led to a career. Since joining the Modern Home & Hardware team in Woodsfield, Ohio, and serving as a cashier for five years, she has invested in training to develop her industry knowledge and work her way up to inventory manager.

April 2018 | HARDWARE RETAILING

By Jesse Carleton, jcarleton@nrha.org

When Hiring Goes Wrong 3 Retailers Share What They’ve Learned About Finding New Employees

t’s a story nearly every retailer can tell. You need to fill a spot on your team and, after sifting through several applicants, you find the one you think will get the job done. Then, somewhere along the way, you discover that the employee walking around on the salesfloor is a lot different from the one you interviewed. It becomes clear they’re not a good fit for your business and you have to part ways. Whatever your own similar story is, the question that haunts you may be, “Is there anything I could have done differently?” Hiring the wrong person costs you money

HARDWARE RETAILING | April 2018

and time. Worse yet, an employee who misrepresents your business may damage your brand image. No hiring system is completely foolproof; you can’t see the future and know how someone might behave on the job. But every mistake is an opportunity to learn. The editors at Hardware Retailing found three retailers, all with several decades of experience in management and hiring, willing to share stories of someone they hired and later had to dismiss. Take a moment to empathize (or commiserate) and then read their insights into the hiring process.

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Mismatched There’s a concept of business management, called the Peter Principle, named after the man who formulated the theory, which says that otherwise competent employees are often put into positions that require skills they do not possess. It often happens in leadership roles, where someone who might make a great employee doesn’t always make a great supervisor. Paul Gabbard, president and CEO of Malone Lumber Do it Center in Greenville, Kentucky, recalls that’s what happened once when it came time to hire a new manager. He and his team thought they found the ideal candidate. The resume was attractive. The potential hire had good reviews from others in the community and passed all the background checks. “We thoroughly vetted him, and when we were all finished, we thought we had our man,” says Gabbard. After hiring the new manager, Gabbard invested in training, sending him to an off-site program where he could develop the skills necessary for a successful career in management. And for the next three years, the new manager dug into his new job at Malone Lumber. “Then he hit a wall,” Gabbard says. “I think he realized he was in over his head. It was a classic case of the Peter Principle.” He didn’t have the natural abilities to perform in a management role. Fortunately, the breakup was amicable. The manager recognized he had stepped outside of his abilities. Perhaps he would have a made a good employee elsewhere in the company, and may have had many other desirable qualities. However, he was mismatched for the job in management.

Tips for Your Next Hire Don’t be afraid to fire early. As he reflects on what might have gone differently, Gabbard says he ignored his gut feeling that something wasn’t right. “Early in the hiring process, I sensed something was wrong, but ignored it,” he says. “I thought there should be more of a leadership attitude that just wasn’t there.” Given all the resources invested in bringing on a new employee, especially a manager who requires more time to onboard, it’s easy to want to hold on to the hope they will mature into the role. “The problem is that when you start putting so much money into people, you do everything you can to hang on to them,” Gabbard says. “You don’t want to believe you made a mistake.” Sometimes, it’s best to cut your losses and move on. Try an outside recruitment agency. Gabbard now uses an outside recruitment agency to assist him in vetting candidates for higher-level positions. After choosing five or six candidates, he administers a test provided by the agency, which asks questions on competencies and character traits. After looking at the results of the written test, Gabbard identifies one candidate to do a one-on-one interview with a representative from the agency. “The process is expensive and takes a bit of time, but is well worth it,” he says. “They know how to ask the right questions and find both the negatives and positives of each candidate.” Don’t rush the hiring process. One mistake many retailers make is to put minimal effort into hiring temporary and entry-level employees. But even though you need someone on the job quickly, you’re risking a host of nightmares such as dissatisfied customers or missed lumber deliveries if the employee doesn’t do the job properly. While the hiring process for some jobs may be more involved for some positions than others, patience is the key to success. “Whenever you set out to take on a new employee, take your time and don’t be in a hurry,” Gabbard says. “You may only be thinking about the service you provide to your customers and think you need to get someone hired so they can keep that going. However, if you get the wrong person, you’ll end up hurting the brand you’re trying to preserve.”

HARDWARE RETAILING | April 2018

Attitude or Experience? Len Hunt, general manager of Eastman’s Hardware in Falmouth, Massachusetts, has spent more than half of his 40-year hardware retailing career in management. He’s worked with many good, long-term employees, but also those who weren’t fit for the job. Ironically, those who aren’t the best fit are often those who, according to their resume, are well-qualified to sell hardware. “There have been a few times when we’ve hired carpenters or electricians, for example, who have a lot of hands-on experience in their trades, but have no people skills,” he says. “It sometimes happens during a time when we are in desperate need of help and are willing to take a chance on someone we think is a nice person. But you just can’t put a square peg in a round hole.” While it’s not always the case, employees hired solely for their product knowledge are not always skilled in providing the best customer service. Hunt is not always able to make up that deficiency with training, either. Of course, he will always give new employees time to get adjusted to the retail environment. The signals may be small, but usually he can tell fairly quickly if they’re not going to work out. For example, are they willing to stop what they are doing to help a customer? Do they acknowledge customers when they walk through the front door? An employee with good customer service skills who, for example, is unpacking boxes and restocking shelves, will not let a customer walk by without stopping to see if they need help. “Those small incidents can tell you a lot about a person and if that’s the type of person you want to continue working for you,” he says.

Tips for Your Next Hire Hire based on attitude, not experience. For Hunt, the lesson is clear. “Look for energy and attitude,” he says. “Generally, if they have those two things, they can be trained on everything else.” It may seem counterintuitive that the best employees are not necessarily those with the most product knowledge, but success in the retail world hinges on good customer service, and good customer service is often best delivered by those who have a positive attitude and strong people skills. During his interview with a job applicant, Hunt will spend most of his time just getting to know them a little better, trying to get insights into their personality and character. Invest in your training process. While your employees may be full of charm, customers will quickly become frustrated if those same employees know little about the products they’re selling. You’ll never know whether you’ve made a good hire if you don’t follow up with training. Without proper training, even the best new employee will soon falter. They not only need to understand the culture of your business, but also product knowledge for all the items you carry. At Eastman’s, new employees start out part time before moving to full time for three or four months while Hunt gets an understanding of what type of employee they will be. During the training process, new hires shadow managers for a few days before they venture onto the salesfloor alone. There’s also a manager on the floor at all times who can be a resource for new employees whenever they have a question. The manager can also periodically check in on recent employees’ progress as they learn their new responsibilities. A well-rounded training program will include selling skills and product knowledge. In addition to training on the salesfloor, online training courses can offer employees a basic understanding of the products you carry. Once they have that basic knowledge, you’ll want to advance them to learning how to sell entire projects. These are your moneymakers, as they include add-on sales. For more information on the range of training programs available from the North American Retail Hardware Association (NRHA), visit nrha.org/training or call 800-772-4424.

April 2018 | HARDWARE RETAILING

After the Hire Raymond Fachko, a third-generation retailer who has spent the past 40 years operating Brandies Ace Hardware in Callahan, Florida, is aware that what happens after the hire is just as important as the hiring process. Fachko recalls one employee he hired because he believed the applicant was credible, even though his criminal record wasn’t completely clean. Fachko was willing to overlook past faults for a person with the right attitude trying to make a new start in life. “He was honest about his past and his explanation matched the background check,” says Fachko. “He also exhibited a desire to do the right thing and support his family. So we hired him to work on the salesfloor.” For a while, it appeared the new employee was a strong investment. He had a friendly personality, was increasing his hardware knowledge and getting high approval from customers. He even had the potential to be the next store manager, Fachko says. Then, after nearly two years on the job, that employee’s behavior began to change. The changes were subtle, such as spending more time at the computer and seeming less engaged with his work. But there was nothing Fachko could concretely identify as wrong, not until he began reviewing footage on his newly installed surveillance system. Fachko caught him forging signatures and faking returns. “We got just enough evidence for a grand theft conviction,” he says. “But it was evident that this person had been stealing for quite a while.”

Tips for Your Next Hire Look for trouble signs. Hiring someone who has a criminal record isn’t necessarily the wrong move. Sometimes infractions are minor, one-time mistakes. There’s a case to be made for overlooking past mistakes and offering people new opportunities. And any employee, regardless of record, who’s not subject to some type of accountability has the potential to backslide into negative behavior. The real issue, says Fachko, is having accountability standards in place, being aware of when something starts to go wrong and taking action to fix it. “It’s a consequence of being perpetually short on help in a small store,” he says. “The normal checks and balances can easily be overlooked.” Being understaffed means that managers who should be looking for signs of trouble among the employees have less time to do that. Having a store security system that monitors POS transactions and keeping a close watch for signs of theft will alert you to trouble soon after it happens. Focus on character. Early in the interview process, Fachko spends most of his effort discerning the character of the prospective employee. “We just try to get a feel for where they are now and where they are headed,” he says. This conversation takes place before running any background checks, driving record or credit checks, so it gives the applicant the opportunity to be honest and talk about anything in their history that needs an explanation. He also puts stock in the opinion of others in the community he’s known for a long time. “The biggest green flag is when someone you know and respect has spent time working around a person and says ‘I’d hire them in a minute.’ That is music to my ears.” Use simple skills tests. Fachko has found that a few simple techniques go a long way to weeding out the wrong candidates. His application process includes a skills test with basic math and problem-solving questions. NRHA’s version of a basic skills test is available for download at TheRedT.com/skills-test. While the test is simple, many retailers have found it is a good first step to narrowing the field of applicants.

HARDWARE RETAILING | April 2018

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Revved Up 5 Ways to Promote and Market Outdoor Power Equipment This month’s Category Spotlight is sponsored by STIHL

s winter melts away and spring kicks into gear, consumers eagerly dust the cobwebs off their outdoor power equipment. Before they can begin reviving their yards, they may realize they need to get their lawn mower tuned up or have their leaf blower repaired. If the customer bought their equipment at the big-box store in town, they might bring it back to an orange-vested employee for tune-ups or product issues. However, in Memphis, Tennessee, that big-box business is more likely to send customers away to the go-to repair shop in town—Colonial Hardware. The family-owned business has been serving the community since 1977 and has strengthened its reputation by providing knowledgeable assistance, says office manager Jenny McMaster. Memphis locals and competing big-boxes know customers can find the expertise in outdoor power equipment and the services they need for almost any product at Colonial.

HARDWARE RETAILING | April 2018

In this article, Hardware Retailing showcases Colonial Hardware and Beisswenger’s Hardware of New Brighton, Minnesota. Discover five different ways these businesses market and promote the category to draw new and repeat customers to their businesses.

Stock the Right Brands and Products A successful outdoor power equipment department includes a strong brand presence and a product mix to meet varied customers’ needs. Staff at Beisswenger’s Hardware knows customers are drawn to the department most often due to brand recognition and loyalty, says Al Morelli, an employee with years of expertise in the outdoor power equipment category. However, while specific brands might draw a customer in, having a wide selection of brands and product offerings to choose from ensures they are able to get the right product, price and performance they need whenever they visit.

Beisswenger’s Hardware displays assembled outdoor power equipment to show customers the variety and what the final products look like.

April 2018 | HARDWARE RETAILING

“Brand is very important in outdoor power equipment compared to other departments,” Morelli says. “The recognition different brands have is a major attraction point. However, the sales associates can then decipher the customer’s needs to offer the best suggestion for the project at hand.” In outdoor power equipment, seasonality makes a big difference in the inventory selection. Depending on the region and climate, many retailers have four seasons to plan. For example, in the winter, a focus on snow blowers and generators is more relevant, while the spring and summer calls for chainsaws, lawn mowers and string trimmers.

Merchandise to Make the Showroom Shine Having the right products and brands available to a customer is important, but merchandising techniques throughout the department ensure the large variety of equipment and products that are available stand out and impress customers.

The manufacturers a retailer works with are great resources. Many provide display racks and POP signage to highlight their brands.

Since Memphis experiences longer stretches of milder temperatures than other areas of the country, McMaster says Colonial Hardware promotes its products by lining large outdoor power equipment by the entrance. A row of red riding lawn mowers makes a statement that the category is covered. Having an open showroom is an easy way to display the breadth of offerings in the category, too. Merchandising inside the store is as simple as assembling various products, like lawn mowers, power washers, generators and trimmers and displaying them for customers to touch and handle for reference. Rather than staring at a photo online or a picture on a box, the customer gets a clear idea about the equipment they’re thinking about buying. The manufacturers a retailer works with are great resources. Many provide display racks and POP signage to highlight their brands. When it comes to merchandising, creativity makes a difference. At Colonial Hardware, one merchandising element has remained a staple over the years. The display is eye-catching and helps spark conversations with customers. “We have an old tree we uprooted from my grandfather’s property years ago that displays our chainsaws,” she says. “It has been a focal point in our outdoor power equipment showfloor for years. The chainsaw models and technology may change, but this tree is still here.”

Left: Al Morelli of Beisswenger’s Hardware has years of knowledge and experience with outdoor power equipment. Right: Colonial Hardware chose a creative take on merchandising, displaying chainsaws in an old tree from the family property.

HARDWARE RETAILING | April 2018

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“Our employees often take equipment home to test it out and get a feel for it. This hands-on experience gives them a better understanding of how different products work and unique features.

”

—Jenny McMaster, Colonial Hardware Educate and Train the Sales Team

Top: Colonial Hardware prioritizes training so they can assist any customer. Bottom: Assembled equipment is a great way to promote the department.

HARDWARE RETAILING | April 2018

If a customer finds the brand and product they’re looking for and has a chance to touch and hold it, they are one step closer to making a purchase. To ensure the sale of equipment and future services is in the bag, training is vital. Not only should the sales associates know the products inside and out, service technicians need continuous education to be certified to work on the products the store carries. To offer customers a better experience compared to the big-box stores, training in the category at Beisswenger’s is huge, Morelli says. “Everyone who works in the outdoor power equipment department needs to be knowledgeable about the products and brands we sell,” Morelli says. “When a manufacturer offers sales seminars on their equipment, we take advantage of that opportunity and send employees to those educational events. It helps them understand the products and do a better job selling.” Many Colonial Hardware employees take initiative to learn, McMaster says. “Outdoor power equipment sales are the backbone of our business,” she says. “Because of that, understanding the equipment is very important. Our employees often take equipment home to test it out and get a feel for it. This hands-on experience gives them a better understanding of how different products work and unique features.” Sales associates also stay in the know by taking brochures of product lines home to read. On a slower day, they might even go to the store’s repair shop, observe what the mechanics are working on and learn about the inner workings of equipment. To take product knowledge one step further, both McMaster and Morelli say employees attend distributor markets and other industry-specific shows to scope out new products and talk directly with a wide variety of manufacturers.

“Every year, we send a few of our associates to the Green Industry & Equipment Expo (GIE+EXPO),” McMaster says. “The show is beneficial as it gives our team a chance to see what products are trending in outdoor power equipment and it helps us with our buying strategy.”

Create Repeat Customers The outdoor power equipment category can attract a mix of DIY customers and a wide variety of professionals. To best serve the whole range, a retailer needs to have strategies in place. Beisswenger’s Hardware has an audience of about 80 percent DIYer to 20 percent commercial customer in the category, Morelli says. Some of the commercial accounts they manage include snow equipment and lawn and garden equipment required by the city. They also work with schools and municipalities. To keep the pros happy, Morelli says employees need to have strong product knowledge. Having a business with a parts department and a service repair shop is a reason pro customers will return.

Hosting events at the store for commercial contractors and professionals is another great way to boost business. Howard Brothers Outdoor Power and Hardware, a chain of stores in Georgia, is another business that has earned its reputation as the go-to source among pro customers. In 1989, Howard Brothers Pro Day began, which became a popular event in the southeastern part of the country. To learn more about the annual event and how the store takes care of pros today, read the article at TheRedT.com/howard-bros-event. Hosting a pro-focused event can expose them to new products and attract potential customers. Make the event attractive by offering food and refreshments and introduce the guests to different vendors who demo products on-site. Colonial Hardware serves an equal amount of DIYers to pro customers. Its pro business kicked into gear when landscaping companies grew in popularity in Memphis. McMaster says they meet the needs of both demographics because they have strong product knowledge.

M Kay Supply Events, Demos Attract Variety of Shoppers In the small town of Benton, Missouri, locals no longer have to travel miles away from town to purchase new outdoor power equipment. After four years of discussing opening a much-needed hardware store in their small town, Malinda and Jarrett Milam opened M Kay Supply in December 2014. One of the most popular and top-performing categories in the store has been outdoor power equipment, as DIYers, local farmers and pro customers can find everything they need to get the job done, Milam says. To spread the word about their outdoor power equipment offerings, the M Kay Supply team has collaborated with their primary dealer, STIHL, to host events and give customers the chance to demo different equipment. Some of the events the store has hosted include a ladies’ night, obstacle courses and other fun events where outdoor power equipment is often in the spotlight, putting the tools in the customers’ hands. “STIHL has great brand recognition among our customers, and getting the products in their hands takes it one step further,” Milam says. “We always allow customers to pick up and feel the equipment, but the events we’ve hosted are where they can learn more and have fun.”

April 2018 | HARDWARE RETAILING

Complete the Department Businesses that do well in outdoor power equipment sales understand offering parts and services helps turn a single power tool purchase into a repeat business opportunity. In order to provide service on-site, retailers must have a certified team of mechanics. “Our service technicians need to be qualified to work on all the brands we sell,” Morelli says of Beisswenger’s Hardware. “Whenever a manufacturer has a new certification course, which is an annual requirement in most cases, our technicians need to attend. These courses allow them to work on equipment, like products on warranty.” Colonial Hardware has also built its reputation in the outdoor power equipment category by thinking beyond the initial purchase. The store has at least three mechanics on-site year-round who work on commission, McMaster says. The team provides service, repairs and tune-ups on almost any brand, including all of the brands the store sells. This service has been a major advantage for the store because customers who have purchased equipment from other stores, including big-box retailers, are welcome and can rely on the service team to solve their problems.

“Even Lowe’s and

Home Depot send their customers in our direction to have work done rather than having to ship it out to other repair businesses hours from town.

”

—Jenny McMaster, Colonial Hardware “If someone has equipment and needs it to be repaired, they come to us because we fix pretty much anything,” McMaster says. “Even Lowe’s and Home Depot send their customers in our direction to have work done rather than having to ship it out to other repair businesses hours from town. The community knows we have the best service employees in the city.” After a purchase, retailers should encourage customers to keep their investment in working order. “We assemble and service the product and let them know they can return for warranties and tune-ups in the future,” McMaster says.

We Make Doing Business Easier

The North American Retail Hardware Association has relationships with service providers to save you money on services, including credit card processing, hiring, health insurance and more. FOR MORE INFORMATION, GO TO NRHA.ORG/BUSINESS-SERVICES

HARDWARE RETAILING | April 2018

In addition to the importance of a service department staffed with experienced professionals, Beisswenger’s Hardware has also made parts sales a driving factor in its outdoor power equipment department. “We have a very large offering of parts,” Morelli says. “We make sure we have pieces for all the brands and products we sell, and we carry as many fast-moving parts as we can. If we don’t have something in stock, we’ll special-order it.” Having a well-rounded outdoor power equipment department is key for success. Providing customers with the right equipment; drawing them in to the department through inviting merchandising; giving them the knowledge they need; building a genuine relationship; and having a dedicated parts and services offering to round out the category is what sets stores like Beisswenger’s Hardware and Colonial Hardware apart from their competition in outdoor power equipment. “Equipment sales, services and parts work hand-in-hand to ensure our lasting success,” McMaster says. “Customers choose us because our reputation as the trusted and best-equipped dealer of outdoor power equipment in Memphis puts us ahead of all of our competition.”

For many retailers that repair outdoor power equipment, certified mechanics are needed on staff. Annual training is required from many manufacturers.

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Y R E T T BA E G A T L VO Quick tips to help your customers As dealers, you’ve heard, “I need a 14inch chain saw.” You know the size of the bar doesn’t equate to power or how much work can get done. There’s a similar misconception with batterypowered products. Your customers see high-voltage batteries (up to 80 volts in some cases) and think that must mean maximum performance, when usually that’s not the case. There are several factors that go into determining performance and how much work can get done on a single charge. With the launch of the STIHL Lightning Battery System ®, we’re here to provide a few quick tips to help you dispel the voltage misconception.

1. HOW MUCH WORK CAN YOU COMPLETE ON A SINGLE CHARGE? While most people ask “What’s the run time?” They should be asking “How much work can I get done on a single charge?” As with gas products, determining the task can help you find the best battery series for your customer. STIHL offers three distinct lines of products that allow users to choose the right tool to get the job done. For instance:

The STIHL BGA 56 handheld blower with STIHL AK 20 battery (100 Wh*) can clear a sidewalk seven football fields long on a single charge,** perfect for an occasional user.

The STIHL BGA 85 handheld blower with STIHL AP 300 battery (227 Wh*) can clear a sidewalk 11 football fields long on a single charge** and would be ideal for professional users or homeowners with large properties!

160

The STIHL BGA 100 handheld blower with STIHL AR 3000 backpack battery (1148 Wh*) can run up to 160 minutes per charge and is the most powerful in the STIHL Lightning Battery System® with more than enough power to get the large, professional jobs done.

2. IT’S ALL ABOUT THE WATTS It’s a common misconception to think voltage equates to power. While voltage is a factor, the true energy capacity of a battery is measured in watts. The wattage of a battery can be determined by a simple math equation: watts = volts X amps. For example, an 80-volt battery rated at 144 Wh* contains less energy than a STIHL 36-volt battery with 227 Wh*.

3. FEWER VOLTS EQUALS LESS WEIGHT If energy can be increased with additional voltage, you may wonder, “Why wouldn’t STIHL increase their voltage to make their batteries that much more powerful?” The short answer — more volts equals more weight.

4. TOTAL PACKAGE DETERMINES MAXIMUM PERFORMANCE It’s not just the battery that impacts performance and run time. STIHL battery products are designed as a complete system. From the unique 1/4-inch pitch saw chain designed for our battery chain saws to STIHL PolycutTM blades on the STIHL FSA 45 trimmer to brushless motors on the AP Series, every component is engineered to give maximum performance per watt consumed.

For a complete listing of STIHL battery line products, visit STIHLbattery.com. * Usable energy will be less. ** Usage claim tested and veriﬁed by an independent third-party test laboratory. Run time may vary based on battery type, charge level and capacity, model, operating style and conditions.

Attract new customers with the STIHL Lightning Battery System®. With the power of STIHL in a battery, you can offer a wide range of options for customers looking for quiet, environmentally friendly, low maintenance equipment. From the landscaping professional to the weekend warrior, STIHL has multiple battery solutions with the power your customers can believe in from a brand name they trust. Explore all the possibilities of the STIHL Lightning Battery System® by visiting STIHLbattery.com. To become a STIHL dealer: STIHLusa.com/dealer *FSA 56 with AK 10 battery, cutting a 10.5" swath. Usage claim tested and veriﬁed by an independent third-party test laboratory. Run time may vary based on battery type, charge level and capacity, model, operating style and conditions.

See the full line at STIHLbattery.com

By Melanie Moul, mmoul@nrha.org

Teacher Networker Explorer

Observer

WHO WILL YOU MEET? Make New Connections at the NRHA All-Industry Conference

ttendees at the North American Retail Hardware Association (NRHA) All-Industry Conference cover a broad spectrum. From young retailers and industry veterans to association staff and vendors galore, there is an opportunity at every turn to meet someone with a new perspective. Whether you attend for new products, new friends or new ideas, the NRHA All-Industry Conference can address all your needs. In this article, Hardware Retailing explores a few types of people you’ll have the opportunity to meet at the conference, which takes place in conjunction with the National Hardware Show®, May 8-10 at the Las Vegas Convention Center. For more information about what you can expect to find at the conference this year, visit nrhaconference.com. For insights on the value of the show from a potential customer, read the Q&A with association volunteer and consumer attendee Deanna Tratensek at TheRedT.com/deanna.

HARDWARE RETAILING | April 2018

All About the National Hardware Show® The National Hardware Show is ready to meet your needs. You can find hundreds of vendors from every major category and other unique products that could be your next top seller. Also stay tuned for programming from the National Hardware Show on the NRHA Village stage. A returning highlight will be this year’s Reimagine Retail program. Find out which independent retailer will walk away with $100,000 to fund their retail dream. Learn more at nationalhardwareshow.com.

Time to Evaluate Participation is easy. Confidential, free and simple, there are five ways to submit your financial data to be included in this year’s study. Not only will participating give you exclusive access to the study, you’ll also get a personalized financial analysis to help you make better business decisions.

I’m Here for the People David Dishke Grand River Home Hardware, Grimsby Home Hardware The Networker These conference attendees make it a point to meet someone new for valuable insights to propel their businesses forward.

David Dishke may be one of the newer members of the NHRA board of directors, but he’s not a newcomer to the industry. Dishke owns two Home Hardware store locations in Ontario, and he is in the process of acquiring a third. Dishke has been involved in the business since he was a teenager, and he and his wife took over ownership of the Caledonia store from his family in the late 1990s. In 2004, Dishke received NRHA’s Young Retailer of the Year award, and he has been attending conferences and staying engaged with the association ever since. He says the greatest value of attending the NRHA All-Industry Conference is the opportunity to meet people you wouldn’t otherwise encounter. “Sometimes people get tied up in their own wholesaler,” he says. “While attending wholesaler events is wonderful, and I highly recommend it, you want to go outside the box sometimes.” Dishke admits the National Hardware Show can be overwhelming, but he says it’s OK to be intimidated by such a large event. “The scale of the show brings it into perspective that the hardware industry is not a little fish in the sea,” he says. “It’s important to see it.”

Engaging Connections Whenever he attends an event, Dishke sets a short list of goals for himself: Get one good idea and engage with someone or ask a question. Setting these goals helps him look outside his immediate community for valuable insights.

“When you surround yourself with like-minded people from the industry, you can learn from them and grow.

”

HARDWARE RETAILING | April 2018

Dishke says meeting people who are from the same industry but who work with another wholesaler or serve a different market is an invaluable part of attending the conference. “The amount of people you can meet and the connections you can make by attending the NRHA conference at the National Hardware Show is phenomenal,” he says. “When you surround yourself with like-minded people from the industry, you can learn from them and grow.”

Crossing the Border The NRHA All-Industry Conference takes place in conjunction with the National Hardware Show. NRHA encourages independent retailers to take advantage of the access to products and vendors on the show floor while also engaging with the association in the NRHA Village. Dishke appreciates both sides of the annual event, but on the products side, attending international trade shows can sometimes be challenging for Canadian retailers, he says. Often, products that are immediately available to American retailers aren’t available on the same timetable for Canadians. But Dishke says there is an advantage to seeing those products ahead of time. “The National Hardware Show seems to be a little bit ahead of the Canadian market by about six months,” he says. “There was a vendor at the show last year that had its products available in the U.S. last summer, and they’re just now launching this summer in Canada. But I got to see them a whole year in advance because I was at the show. You get to see things sooner than you might otherwise.” Attending trade shows, even for just a short amount of time, can offer insights that you don’t get just exploring new products from your office at the store, Dishke says. “I can look stuff up on the internet, but I won’t interact with any humans and talk to them and ask them to show me how something works,” he says. “I can buy product every day, but interacting with people and learning how their brain ticks and how they make their businesses successful is what I look forward to.”

I’m Here for the Products RJ McDaniel B&B Hardware & Rental The Explorer For a first-time attendee, the show floor of the National Hardware Show seems neverending. Explorers hit the floor to find cool new products and walk away with key items to take home to their businesses.

Just outside the NRHA Village in the Las Vegas Convention Center, the expansive landscape of the National Hardware Show begins. Walk the show floor with a retailer like RJ McDaniel, and you will find everything you are looking for. As co-owner and vice president of B&B Hardware & Rental, McDaniel attends the show to be the first to spot products that will help grow his business. He attended the 2017 NRHA All-Industry Conference at the National Hardware Show with a Young Retailer of the Year award in tow. He received the honor in part because of his focus on expanding B&B Hardware’s rental business, starting a new disc golf niche and growing the company’s firearms department. “I’m always looking for new products in stores and online,” McDaniel says. “The show presents another unique opportunity to do that.”

Across the Categories McDaniel served as a judge on the Retailers’ Choice panel, which is a group of independent retailers who walk the show floor and choose their favorite items. The selected manufacturers receive the Retailers’ Choice Award from Hardware Retailing during the conference. “Serving on the Retailers’ Choice panel was a lot of fun,” he says. “I was able to connect with other retailers and talk about the products that work for them, and I got to explore new items.” McDaniel approached the show floor with a strategy. Back home at the store in Milan, Illinois, he was planning to expand his outdoor living category with a focus on grilling. B&B Hardware & Rental features a popular line of grills and accessories, and McDaniel was looking for items to complement his selection. Another member of the panel discovered a gadget that slices hot dogs to help them cook more evenly, and McDaniel found smoke tubes to put on charcoal grills to turn them into smokers. He also identified

“When you go to the show, you have opportunities to see what other items and vendors are available outside your wholesaler.

”

products that would serve his rental business, including an innovative extension ladder. “I was looking for outdoor living and grilling items, but I found a few other items that were good additions to the store, too,” he says.

Inspiration on the Show Floor The sheer size and selection that’s available on the show floor is striking. McDaniel says he values his wholesaler events and attends those as often as possible, but the National Hardware Show is something different entirely. “When you go to the show, you have opportunities to see what other items and vendors are available outside your wholesaler,” he says. “It’s good to experience that because if you only attend wholesaler events, you can get tunnel vision.” McDaniel says it’s also helpful to see how vendors set up their displays on the show floor. After attending last year’s event, he took some of their ideas home to Illinois. “I’m inspired by four-foot planograms at shows,” he says. “I remerchandised in the store based on how vendors set up in the booth at the National Hardware Show. Everything has improved in volume since we reset those areas.” McDaniel has spoken to other retailers about the NRHA All-Industry Conference at the National Hardware Show, and he talks about more than just products. “You can get new ideas, make new connections and see what products are out there,” he says. “It helps broaden my perspective on my business to see so many different options.”

April 2018 | HARDWARE RETAILING

I’m Here to Help Your Business Tom Marcum North American Retail Hardware Association The Teacher NRHA staff members look forward to the opportunity to learn more about retailers’ businesses and share how NRHA can help them grow and succeed.

The NRHA All-Industry Conference is the pinnacle event for independent home improvement retailers every year. At the conference, retailers have the opportunity to connect with and learn from each other, regardless of wholesale affiliation or business size. The NRHA Village is the hub for education, advocacy and association at the conference. Industry experts, panels of innovative retailers and other compelling presenters take the stage in the NRHA Village to deliver insights and actionable lessons. Along with attending sessions, retailers are also welcome to use the space as their haven away from the show floor. Whether you’re meeting a fellow retailer for lunch, taking a break to check emails or you have an appointment with an NRHA staff member, the NRHA Village is your space to relax and connect.

Gaining a New Perspective Tom Marcum, director of recruitment for NRHA’s Retail Leadership Institute, says having the NRHA All-Industry Conference at the National Hardware Show creates opportunities for independents that they may not have elsewhere. “NRHA serves the independent channel in many ways throughout the year, but the conference provides a different kind of opportunity. Retailers can see how NRHA helps them connect to other channel members and supporters,” Marcum says. “They can see how NRHA serves the industry and at the same time they learn specifically what we have to offer.” Collaborative panels on the stage include successful retailers from across the industry, and NRHA recognizes the value of providing opportunities for each wholesaler to be represented in its presentations. “I think the major difference for retailers is seeing many perspectives,” Marcum says. “Everyone has a different way of doing things, and retailers can benefit from hearing something new at the conference.”

HARDWARE RETAILING | April 2018

“Retailers can learn about the big-picture issues—more about what’s going on in the industry that is impacting them now.

”

Learning About NRHA NRHA staff members are in the NRHA Village during the conference to answer questions about services and to talk about how the association can best serve your needs. In his role for the association, Marcum helps retailers determine what educational and training opportunities would be best suited for their operation. “We get to sit down and explore what is going on in their business and how we can help address their challenges and continue building on their successes,” he says. NRHA provides basic training courses and programs to help retailers develop their own internal programs. The association also offers more advanced leadership and management training opportunities. Marcum will be in the NRHA Village to talk to retailers who are interested in the Retail Management Certification Program, Foundations of Leadership or annual roundtable groups. “At the conference, there’s also a very good chance retailers will meet past participants from our higher level leadership and management programs to hear directly how they benefited from their experiences,” Marcum says. Other NRHA staff will be there to discuss business services, which help retailers access health insurance, credit card processing, employee recruiting and more. One of the most significant opportunities for conference attendees is connecting with members of the entire channel. “Retailers can learn about the big-picture issues—more about what’s going on in the industry that is impacting them now, and they might not even know it, and what will be impacting them in the future,” Marcum says.

Innovation

VIEW FROM THE TOP

Success

Insight

Commitment

Hear Their Success Stories Every year, the North American Retail Hardware Association (NRHA) and Hardware Retailing magazine honor the independent industry’s shining stars. Join us this year as we honor the first-ever all-female Top Guns panel, May 9 at 1 p.m. in the NRHA Village. These women will discuss the innovation they bring to their businesses, their dedication to the industry and how other retailers can rise to the top.

FOR MORE INFORMATION, GO TO NRHACONFERENCE.COM

2018 NRHA ALL-INDUSTRY CONFERENCE

HARDWARE RETAILING | April 2018

By Melanie Moul, mmoul@nrha.org

A Space for Makers How The Grommet Empowers Entrepreneurs

ecoming a successful entrepreneur requires time, networking and forging ahead, despite hearing “no” for the hundredth time. As an independent retailer, you’re likely familiar with the willpower and determination it takes to achieve your dream. Jules Pieri, co-founder and CEO of project launch platform The Grommet, has seen that scenario happen, too. The Grommet started in 2008 based on an idea Pieri and her co-founder Joanne Domeniconi had to create a home for innovative products developed by entrepreneurs, who the company calls makers. During their time working in consumer product development for children’s apparel and toy companies, Pieri and Domeniconi saw many great ideas never reach customers because there wasn’t a space for them on store shelves. The solution: Offer a way for entrepreneurs to get their products straight to consumers. “We were determined to create a place that would uncover the most innovative products and tell their stories, and that’s what we did with The Grommet,” Pieri says. Hardware Retailing learned more about the evolution of The Grommet, how it chooses products and its recent relationship with Ace Hardware. If you’d like to learn even more about how the company identifies upcoming trends and the next hot items, attend Pieri’s keynote presentation for free at the North American Retail Hardware Association (NRHA) All-Industry Conference, May 8-10 in Las Vegas. Learn more at nrhaconference.com. April 2018 | HARDWARE RETAILING

Ace Hardware Corp. acquired a majority stake in The Grommet in October. The partnership puts innovative products discovered by The Grommet on Ace Hardware store shelves throughout the country.

What Makes a Maker? With The Grommet, everyday innovators have a more significant opportunity to get their products in front of consumers. It also means supporting small businesses in communities across the country. “When we hear talk of revitalizing small businesses and preserving Main Street, there are actions that need to take place on the national level to help, but there are so many actions we can take every day to influence change,” Pieri says. “Systemic change takes time, but one way to influence it is by supporting makers and maker communities. Investing in them supports entrepreneurship and innovation—probably right in your own community.” When selecting a product to feature on The Grommet platform, the company evaluates the item based on 10 values, such as products Made in the U.S., which shoppers can sort by on the website. The most recent value, Made for a Lifetime, is about providing products with lifetime guarantees and was inspired by consumer campaigns on social media. The Discovery team at The Grommet attends trade shows, researches online and meets makers in their communities to find striking new products. “We’re always on the lookout for a product that solves a distinctive problem,” says Meredith Doherty, vice president of discovery for The Grommet. “Along with that, it’s also important that all of the products we support have at least one of our values represented.”

HARDWARE RETAILING | April 2018

Doherty says it takes about eight to 10 weeks for a new product to be launched on the site. While that timeline is fast, sometimes the conversation happens over the course of several years before a product is ready to go to market. “We do work with a lot of people who are in the concept or prototyping phase,” Doherty says. “If we think it’s a fit, we keep in touch. It’s important that the makers we work with have inventory on hand.” Products also come to The Grommet through creator submissions on the website and through recommendations from other makers.

The Caring Consumer Consumers are driving the market for products made by values-focused entrepreneurs, and The Grommet offers them a place to know exactly what they’re getting with its platform. “People are caring more about where their products are made, and they’re more deliberate with how they spend their money,” Pieri says. “We wanted to give people the opportunity to shop for values they already want to support.” Along with having a passion for creating innovative products, Pieri says it’s important that the people who sell their products through The Grommet are those the company is proud to partner with. “We’ve been lucky to work with more than 2,500 makers who are inspiring and pushing boundaries, and we can’t wait to meet, work with, and support thousands of others who are out there,” she says.

Being Part of the DIY Movement

The Entrepreneurial Spirit

In October, Ace Hardware Corp. announced it had purchased a majority stake in The Grommet. The companies had been collaborating since late 2016, bringing products from The Grommet into independently owned Ace Hardware stores. Nearly six months into the partnership, Pieri’s perspective on the relationship between makers and home improvement retail stores is unchanged. “The DIY movement right now is strong, and home improvement remains one of the biggest avenues within it,” she says. “Our community responds strongly to products that solve everyday problems, and many can be used in DIY projects.” Pieri says independent retailers can compete against big-box and online retailers by differentiating themselves through local, handmade, unique goods.

Pieri says entrepreneurs shouldn’t be afraid to go all in. “Make whatever it is you’re pursuing worth your time because you should expect it to take a while,” she says. “Anything worth doing will take five to 10 years, maybe even a lifetime, and that’s OK.” Like success, knowledge doesn’t come overnight, Pieri says. Investing in the training you need at the outset will be enough to get started, but you can’t know everything you need to know immediately. “In the early days, you cannot be fully operational or skilled at all areas of your business,” she says. “Know what matters. Know what makes you distinctive and gives you a competitive advantage and double down on that. Also, have your own vision and be confident in it. If you’re not the lead dog, then how do you know why or when you need to turn left? Live two years in the future and always look for what’s next.”

The Grommet’s Personal Values The Grommet exists to help consumers find reputable products with a story to tell. Since it launched in 2008, the company has helped brands like Fitbit, OtterBox and SodaStream become mainstays in consumers’ lives.

The Grommet organizes products based on 10 personal values, and shoppers can filter products on the website by those values. Learn a little more about each of the company’s guiding values below.

Crowdfunded

Made in the U.S.A.

Products in this category were created with the help of consumers who donated to a campaign to bring the product to life.

Products in this category are produced in the U.S. and create jobs in local communities throughout the country.

Sustainable Living

Handcrafted

Products in this category are made using natural and eco-friendly materials, often through sustainable production processes.

Products in this category are created by makers by hand, whether that’s sewing, woodwork, jewelry-making or other handiwork.

Philanthropy

Independent Maker

These organizations are nonprofits committed to helping people in need around the world, through time, money or resources.

These products are developed by small businesses in local communities throughout the country.

Tech & Innovation

Underrepresented Entrepreneur

The products in this category are created by makers who are producing groundbreaking tools to enhance and improve everyday life.

Makers in this category are people of color, people considered too young or too old to be makers, veterans and other minority groups.

Social Enterprises

Made for a Lifetime

Makers in this category provide a supportive workplace, make a positive environmental impact and foster other social good policies.

Products in this category come with a lifetime guarantee, and they are made with materials that are meant to withstand time and use.

April 2018 | HARDWARE RETAILING

Process & Procedure: Rental

REN

TAL

By Chad Husted, chusted@nrha.org

Hey, Big Lender How Rental Can Provide a Permanent Boost to Business

n a perfect world, everyone would live by a common rule: Sharing is, in fact, caring. In previous generations, communities would band together on projects and share materials, skills and equipment when one member didn’t have everything they needed. After all, the barn raisings of years past didn’t include just a few guys with a free afternoon. While tight-knit communities haven’t gone completely by the wayside, there are other avenues for consumers to borrow products. Hardware retailers are expanding their rental departments and finding success. Heavy-duty lawn and garden equipment can be expensive for a single-family unit to maintain, while individuals working on projects might not want or need power tools on a regular basis.

HARDWARE RETAILING | April 2018

To explore the necessities and roadblocks of a successful rental department, Hardware Retailing spoke to two retailers who have made loaning equipment a profitable and reliable business venture. Their experiences show both the risks and rewards of carrying expensive equipment with the intent of lending it to their customers. Cottin’s Hardware & Rental sits inside Lawrence, Kansas, home of the University of Kansas. With a high population of college students and a customer base heavily invested in home gardening, the business decided entering the rental market would be a boon for the bottom line and complementary to surrounding businesses. Kasson Hardware Hank made a similar decision after moving its flagship location into a custom-built

facility in Kasson, Minnesota. The result is a store that addresses multiple needs in the community, including an extensive rental selection, while maintaining a neat and clean atmosphere that welcomes all shoppers. The business operates a second location, Pine Island Hardware Hank, which offers a smaller rental department as well.

The Power of Renting A rental department can serve many functions within a home improvement business. It can make a retail location a destination among surrounding communities, and rented products pay for themselves over time and produce high margins for retailers. Renting equipment also comes with serious hurdles, from up-front investment and training to servicing commitments and shrinkage risk. Building a respectable and trusted rental department requires a full-on commitment and a plan of action to make it a desirable commodity for consumers. Linda Cottin, who owns Cottin’s Hardware & Rental with her husband Tom Cottin, developed a plan for the store’s rental department in 1999. At the time, there were two other rental businesses in Lawrence serving different neighborhoods than where Cottin’s Hardware & Rental is located. Cottin thought opening another rental facility for larger lawn and garden items, power tools and

other products out of her hardware store would be more convenient than a drive across town. For Kasson Hardware Hank, the owners’ goal of being a one-stop shop and boutique hardware destination transitioned naturally into rental. CEO Greg Kuball, who runs the business with chief financial officer and brother Troy, says almost 90 percent of his customers are DIYers and homeowners, and his rental options reflect that. The Kasson storefront is about more than hardlines sales and is a trusted facility for quality carpet cleaner rentals and party items like chairs, tables and even a bounce house. Cottin’s Hardware & Rental also carries party supplies, including tables and chairs. “It’s all part of being a complete store for the community, and rental plays its part in putting that whole image together,” Kuball says. Other benefits include reliable visits from customers who have projects on their mind. Cottin uses an example of a customer who brings lawn care equipment in for tuneups twice a year. Those visits are opportunities to add purchases to the service and rental sales. Add-on sales go even further when combining rental equipment on some projects. Consumables, such as sanding paper, go along with renting the sander. If a customer is planning to start a garden, retailers should look to supply needs like seeds and fertilizer along with the tiller the customer is renting.

The rental department at Cottin’s Hardware & Rental offers a variety of tools and equipment, such as trowels, angle grinders and staple guns. The selection is designed to best serve current customers and assist area contractors.

April 2018 | HARDWARE RETAILING

Thinking Bigger When deciding on selection for their rental departments, both Cottin and Kuball considered their immediate neighborhoods and the needs of their customers to determine the best mix of rental products. For Cottin’s Hardware & Rental, the strong market in lawn and garden products combined with a seasonal customer base of college students makes items like lawn mowers, hedge trimmers and edgers go-to items a renter might need just a few times. Outside of lawn care items, small contractors consistently look to the rental department for access to tools like tile saws, gas saws, demo hammers and jackhammers. Kuball went all-in for his DIY customers, renting items like pressure washers and dehumidifiers all the way up to Kasson Hardware Hank’s largest purchase to date: A motorized, four-wheeled compact utility loader that can accommodate a variety of attachments, such as an auger, a frontload bucket or cargo forks. He says the loader is the largest piece of equipment he is comfortable renting to customers, but it has provided a much-needed level of convenience for local contractors. “This utility loader was a large investment, and we’re hoping it pays for itself in three years,” Kuball says, adding that the nearest comparable rental loader is in Rochester, Minnesota, about 16 miles away. Don’t be afraid to branch out beyond hardware comforts when customers ask for them. Both retailers moved into party supplies when

Rental offers opportunities for add-on sales. Some projects require more than just a power tool, and a retailer prepared for all needs can find success.

HARDWARE RETAILING | April 2018

their markets showed interest, from basic items like tables, chairs and tablecloths to popcorn machines, cotton candy makers and bounce houses. Cottin’s Hardware & Rental added its largest rental item, scaffolding, when contractors asked if it was available. Similarly, when a local school that utilized its party materials asked if the business could provide a commercial flat-top griddle for rent, the store responded. “The school works with us a lot for their events, and they said they would rent this griddle every year if they could get one,” Cottin says. “It’s about listening to what people want and deciding if you can get a return on it.”

Service With a Smile A large variety of products for rent won’t guarantee a strong rental following if they’re not in optimum working condition. Enough return trips to the store and customers will quickly consider a business as not worth the trouble. To prevent problems and unhappy customers, both Cottin’s Hardware & Rental and Kasson Hardware Hank put great emphasis on servicing rental equipment as well as evaluating product wear and tear. However, they do go about their servicing needs in different ways. Kasson Hardware Hank established a strong relationship with Earl’s Small Engine Repair, a business that has a dedicated repair service department. Kuball has employees who are handy and able to fix most small issues, he says, but if needed, he can work with Earl’s to quickly get an item back into rental shape. In exchange, Earl’s will often display a small engine product near the entrance of Kasson Hardware Hank, offering advertising as well as another location where a sale can be made. Kuball opted against a more dedicated service department at his store for several reasons, including overall store appearance and the difficulty in retaining trained mechanics. Cottin’s Hardware & Rental, however, was able to find such a mechanic, and thus has opened up an ancillary service for its customers: small engine repair. On top of servicing its own rental products after each use, Cottin’s Hardware & Rental invites customers to bring their own mowers and trimmers in for yearly tuneups and repairs. “It’s all about trust, and we got lucky to find someone who understands profits, time versus expense, and whether repairs are worth exploring,” Cottin says. “If a repair isn’t worth the money, that could transfer to a sale, but only if people trust your employees. If you do a good job, that builds a positive experience.”

“If you have patience and you listen to what people want out of your store, you can find tools and products that can be rented.

”

—Greg Kuball, Kasson Hardware Hank Know When to Rent One of the key tenets of retail sales should be familiar to most in the hardware industry: The customer is always right. Cottin is quick to set this standard aside when training her employees in the rental business, believing that adage to be a dangerous way to approach a rental business. “You don’t have to rent to everyone,” she says. “It can be one of the most frustrating parts of the rental business, for us and the customer. We have a strong opinion when it comes to rental that if you can’t provide the items we need, such as a valid license, it’s better to not rent the item out.” Kasson Hardware Hank and Cottin’s Hardware & Rental both established rental procedures that have kept them from experiencing too much shrinkage through lost or stolen items. A driver’s license with the renter’s current address and a valid credit card are standard procedure for renting equipment, with a heavy emphasis in favor of local addresses. Some warning signs may include addresses too far away from the community, IDs that have mismatched information or a lack of understanding of how the tool is used, Cottin says. She and Kuball have rented to contractors with addresses outside their market, but getting company and location information can help them confirm a job site is legitimate. Consider recording the license plate number of a customer renting larger equipment.

Knowledge Is Power Besides preventing loss via theft, training for rental also includes employees who are skilled and knowledgeable in the equipment they are renting. Along with quality customer service and being able to find the proper tool for a job, this training can help prevent injuries to customers. Training can begin by allowing employees to use rental equipment for their own projects outside of the store. When Kasson Hardware Hank brings in a new product for rent, Kuball encourages employees to try it out at home to familiarize themselves with its use.

Kasson Hardware Hank has developed a partnership with an area small-engine repair and sales business for the service needs of its rental products.

Cottin’s Hardware & Rental employs a shadowing program for employees who have been on the job long enough to be trusted in the rental department. After learning how to fill out forms and process the rental, the junior employee can observe a more tenured employee instructing a customer on the equipment’s use. Given the risks of injury, care should be taken on instructing customers for any piece of equipment, especially for specialized tools that DIYers are unlikely to have used before. “You get a lot of customers who blow that off. ‘I’ve used this before, not a problem,’” Kuball says. “You respond with, ‘Well, you haven’t used ours. Let me walk you through it.’” If supported by strong products, consistent service and reliable training, renting can be a positive contribution to many hardware operations. “If you have patience and you listen to what people want out of your store, you can find tools and products that can be rented,” Kuball says. “Let people know you have the equipment and make it available and reliable, and every household in your community has a reason to come in.”

April 2018 | HARDWARE RETAILING

Newsmakers

True Value Strikes Deal With Strategic Investor Upcoming Events April 11-13 Wallace Hardware Co., Inc., Spring Dealer Market Pigeon Forge, Tennessee

14-17 Home Hardware Market St. Jacobs, Ontario

he True Value Co. announced a plan March 15 that they say will accelerate the company’s long-term business strategy and secure the future of the independent retailers it serves. The company has agreed to sell 70 percent ownership in the organization to private investment firm ACON Investments in a deal that would effectively transition the company away from its current co-op model. The move, which is subject to member approval, would return approximately $229 million to True Value’s current members who, upon close of the agreement, would receive 70 percent of their invested capital, 100 percent value of their promissory notes and their 2017 patronage dividends. True Value’s board has unanimously approved and recommended the transaction. If the deal is approved, the remaining 30 percent equity in the co-op held by members would be transitioned into stock holdings in the newly created True Value Co., allowing members to share in the value the company plans to create in the partnership, company sources say. The majority shareholder in the new True Value Co. would then be ACON, which currently owns companies with more than $5 billion in total revenue. According to True Value’s president and CEO John Hartmann, ACON’s strategic investment in True Value will provide the co-op’s current member owners with access to money that they can use to grow their businesses while still providing them all the products, programs and services they have come to expect from True Value. “I am very excited that this deal would release nearly a quarter-billion in money back to our members that is untouchable by them today without changing any of the fundamental relationships they have with the company,” Hartmann says. “What you expect from us today is what we will deliver to you tomorrow, but you can have your money back to do what’s right for your business.” Hartmann says that this deal represents a watershed moment for the company and provides its current members with more flexibility to improve their businesses. “I have very strong respect for the history of the co-op model, whether it is the True Value flag or any other co-op,” he says. “I understand why the co-op model existed, but in 2018, the concept of locking an independent retailer’s equity into a company in such a way that they can’t touch it … or make the most logical use of that money to invest in their own business … is an outdated model.”

Expecting Strong Support Hartmann emphasizes that retailers on True Value’s board of directors have played an integral role in guiding the company through this process and that the board is “unanimously recommending” the balance of the co-op’s retail members approve the deal. True Value will be asking members to vote on the concept by April 12. To read the entire story, visit TheRedT.com/true-value-deal.

HARDWARE RETAILING | April 2018

May 8-10 National Hardware Show® Las Vegas

8-10 NRHA All-Industry Conference Las Vegas

18-21 Do it Best Spring Market Indianapolis

June 13-14 Global DIY Summit Barcelona, Spain

18-20 Group Merchandising Conference Atlanta

July 27-29 United Hardware Buying Market Minneapolis

Find more details about these events and others online at TheRedT.com/calendar. To have your event added, contact Kate Klein at kklein@nrha.org.

Orgill Inc. Announces Passing of Former President, Chairman

Orgill Customers Enjoy Orlando Dealer Market

CANADA

Orgill Inc. has announced the passing of its former president and chairman, Joseph “Joe” Orgill III. He died on March 12 after a brief illness. TheRedT.com/joe-orgill

Retailers from all over the world gathered Feb. 22-24 in Orlando, Florida, for Orgill’s Spring Dealer Market, where they looked for great buys, found new products and learned about Orgill’s services and programs. TheRedT.com/orgill-orlando

Ace Canada’s Bill Morrison Discusses Growth

Revenues, Same-Store Sales Up for Ace Hardware Ace Hardware Corp. released its fourth-quarter and year-end financial results for 2017, showing revenues of $1.3 billion, a 6.8 percent increase over the same period in 2016. TheRedT.com/ace-q4-2017

PRO Group and VAL-TEST Announce Alliance The partnership is “designed to leverage both groups’ strengths to deliver superior value to member wholesale distributors, suppliers and the retailers they serve,” PRO Group says in a press release. TheRedT.com/paint-alliance

Lowe’s Financial Results Reveal $68B in 2017 Sales Lowe’s recorded $15.5 billion in sales in the fourth quarter of 2017, down nearly 2 percent from 2016 levels. Comparable store sales increased 4.1 percent, the company says. TheRedT.com/lowes-q4-2017

Industry Veteran, Past NRHA President Dies at Age 91 Jerome “Jerry” Lochner, former owner of multiple Ace Hardware stores, died in February at age 91. Lochner owned Ace Hardware in Sauk City, Wisconsin, for more than 60 years. TheRedT.com/lochner-ace

Home Depot to Sell Tesla Solar Panels, Batteries The Home Depot will sell Tesla solar panels and batteries in 800 retail locations, Bloomberg reports. TheRedT.com/hd-tesla

Home Depot Sees Sales and Earnings Increase in 2017 The company reported $23.9 billion in sales for 2017’s fourth quarter, a 7.5 percent increase from fourth-quarter 2016. Sales for all of 2017 were $100.9 billion, increasing 6.7 percent above 2016, according to the company. TheRedT.com/homedepot-q4-2017

Bill Morrison, head of the Ace Canada program for Lowe’s Canada, continues his goal to create 500 Ace dealers within five years.

TIMBER MART Strengthens Commercial Arm Located in the community of Parksville, British Columbia, Central Construction Materials Ltd. has served contractors and builders since 2004 with a variety of building materials. A new TIMBER MART member, the company sits on a three-acre property, and has a 17,000-square-foot storage yard. It also employs 17 full-time staff.

Home Remodeling Spending to Increase in 2018 Homeowners are expected to spend nearly $340 billion on residential repairs and renovations in 2018, according to recent data from the Joint Center for Housing Studies of Harvard University. TheRedT.com/remodeling-spending

True Value Spring Reunion Showcases Marketing Tools and Retail Independence Independent retailers gathered in Washington, D.C., to discover new products, attend educational sessions, learn about marketing opportunities and network with industry peers at the True Value Spring Reunion. TheRedT.com/tv-reunion-2018

Sears Layoffs Hit Corporate Workers Sears recently laid off more than 200 corporate workers as part of “ongoing restructuring.” The latest layoffs of about 220 people are primarily at the company’s Illinois headquarters, according to the Chicago Tribune. TheRedT.com/sears-layoffs

Peavey Completes Buyout of TSC Stores Peavey Industries, which operates Peavey Mart and MainStreet Hardware, has completed its acquisition of TSC Stores one year sooner than anticipated. TSC had been in the hands of Toronto equity company, Birch Hill Equity Partners since 2005. With the finalization of the acquisition, Peavey has purchased all remaining shares of TSC that had been held by Birch Hill.

Canadian Tire VP: Vendors Can Work on E-Commerce Canadian Tire has reduced its vendor base by 7 percent. The retailer also added 400 new vendors. Vice president of business development Mike Magennis stresses the importance of existing supplier relations, saying more than half of all the company’s vendors have been dealing with Canadian Tire for 20 years or more.

For the full story of these briefs, visit hardlines.ca/hardwareretailing.

April 2018 | HARDWARE RETAILING

Last Word

Do You See It?

re your eyes ready to spot the newest products and the coolest gadgets on the show floor at the National Hardware Show®? The show kicks off May 8 at the Las Vegas Convention Center, and we’ve put together a test you can use before you arrive at the show.

HARDWARE RETAILING | April 2018

Check out the two images below and find the five differences. To see the answers, visit TheRedT.com/show-puzzle. For more about the North American Retail Hardware Association (NRHA) All-Industry Conference, which happens in conjunction with the National Hardware Show, visit nrhaconference.com.

AD INDEX Ajax Wire Specialty Co. ........................................... 30 www.ajaxwire.com; 855-966-2529

Impress Art.............................................................. 33 www.impressart.com/diy; 631-940-9530

Old Masters............................................................. 38 www.myoldmasters.com; 800-747-3436

Ancra International/S-Line ....................................... 45 www.ancracargo.com; 800-626-8353

IPG........................................................................... 63 www.itape.com; 888-898-7834

Onward Mfg. ...................................................... 12-13 www.broilkingbbq.com; 800-265-2150

Apex Tool Group.................................................. 1, 55 www.apextoolgroup.com; 410-773-7800

Lifetime .............................................................. 22-23 www.lifetime.com; 800-225-3865

Orgill Inc. .......................................................... 84-IBC www.orgill.com; 800-347-2860

Benjamin Moore..................................................... BC www.benjaminmoore.com; 855-724-6802

Lumax...................................................................... 32 www.lumax.com; 844-660-6876

Paladin Data Corporation ................................... 21, 59 www.paladinpointofsale.com; 541-803-6060

Big Green Egg ........................................................IFC www.biggreeenegg.com; 800-793-2292

Mars ........................................................................ 37 www.marsdelivers.com

Phifer ......................................................................... 7 www.phifer.com; 800-841-9473

Cole’s Wild Bird....................................................... 43 www.coleswildbird.com; 877-426-8882

Master Magnetics Inc. ............................................ 28 www.magnetsource.com; 888-293-9190

Red Lion .................................................................. 17 www.redlionproducts.com; 844-250-4981

Do it Best Corp.......................................................... 3 www.independentsdoitbest.com; 888-364-8237

Metaltech Scaffolding ............................................. 39 www.metaltech.co; 800-363-7587

ShurTech Brands LLC.............................................. 29 www.frogtape.com; 800-321-1733

Federal-Mogul Motorparts....................................... 11 www.championautoparts.com; 800-334-3210

Midwest Fastener .............................................. 40-41 www.fastenerconnection.com; 800-444-7313

Simpson Strong-Tie ................................................... 9 go.strongtie.com/outdooraccents; 800-999-5099

Fiskars Brands Inc. .................................................. 35 www.fiskars.com; 866-348-5661

National Hardware Show......................................... 27 www.nationalhardwareshow.com

Stihl..................................................................... 64-65 battery.stihlusa.com; 800-467-8445

Flexon ........................................................................ 5 www.flexonhose.com; 800-327-4673

NRHA All-Industry Conference................................ 71 www.nrhaconference.com

Superior Pump......................................................... 31 www.superiorpump.com; 800-495-9278

Gel Seal Technologies ............................................. 47 www.something-gel.com

NRHA Cost of Doing Business Study ..................... 67 www.theredt.com/2018-codb-participate

SureCan ................................................................... 19 www.SureCanUSA.com; 801-827-0500

Howard Products Inc............................................... 62 www.howardproducts.com; 800-266-9545

NRHA Membership ................................................. 83 www.nrha.org/membership

True Value Company ............................................... 15 www.truevaluecompany.com; 888-291-7229

HSI........................................................................... 51 www.hardwaresuppliers.com; 800-334-5625

NRHA Business Services ........................................ 62 www.nrha.org/business-services

Warner Tool............................................................. 18 www.warnertool.com; 800-444-0606

*This index is provided for the convenience of our advertisers and readers. The Publisher assumes no liability for errors or omissions.

Train the team. Educated employees sell more. Employee training helps grow your bottom line. It also leads to better customer service, lower staff turnover and more confident and productive employees. Invest in your staff to advance their careers and your business.

“We do a lot to educate our staff, and it’s so important for business. NRHA is an avenue for that and provides a variety of great resources.” David Dishke | Grand River Home Hardware

JOIN US TODAY AT NRHA.ORG/MEMBERSHIP

April 2018 | HARDWARE RETAILING

Delivering the Best in Class Orgill’s commitment to customer service is evident in every order, from the drivers who become part of the team at each stop, to the reliable, prescheduled deliveries.

It Starts With Distribution

Fast, Efficient Delivery

In order to run their businesses, retailers need a

With a consistently high fill rate and quick turnaround

distributor that gets them the products they need in a

time, Orgill customers can count on being able to take

timely and efficient way. That’s why Orgill puts so much

care of their customers’ needs. Some Orgill customers

emphasis on developing and maintaining its world-class

have said their deliveries are so reliable, they can set their

distribution system.

watches by their drivers’ arrival times.

Familiar Faces

A Continued Commitment

Orgill starts its best-in-class deliveries by putting

With one of the most sophisticated distribution networks

dedicated, caring people behind the wheel, which

in the industry, Orgill services customers throughout

means Orgill customers know their orders will be

North America and continues to make investments to

delivered by people who are committed to the success

enhance its efficiencies and service. Partner with Orgill to

of their business.

experience the service and commitment to success firsthand.

For more information about how Orgill can help you grow your business, contact us today! 1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017

When you join the Benjamin Moore retailer network, it’s your store, not a franchise. Which means no franchise fee, and 100% of your investment goes into your own store. Go to benjaminmoore.com/newdealers to learn more.