Hardware Retailing December 2021 by NHPA

The Great Build-Up

Use These Strategies to Coach Your Team of MVPs Page 16

It’s Time for a Checkup on Customer Loyalty Page 22 Going Hyper Local With Store Services Page 38

DECEMBER SPONSOR

Hire, retain and lead stronger teams in 2022!

NHPA offers three online courses to help managers learn effective leadership, communication, problem-solving and financial management skills.

Intro to Leadership

In this 9-week introductory course, managers will learn about their unique leadership style and strengths that will provide a framework for their ongoing leadership growth and career development needs.

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Leading Your Team

This 9-week course teaches managers the critical components of building and leading a team, including communication skills, conﬂict management, talent development and ongoing performance management.

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Financial Management

This 9-week course focuses on the key ﬁnancial management skills that developing leaders need to manage the ﬁnancial side of the business, including the basics of expense control, budgeting and benchmarking.

Enroll for the next group session by Jan. 6, or start today with the self-paced option.

The Great Build-Up

Use These Strategies to Coach Your Team of MVPs Page 16

It’s Time for a Checkup on Customer Loyalty Page 22 Going Hyper Local With Store Services Page 38

“Midwest Fastener has transformed our store into a true fastener destination. We’ve worked with Midwest for approximately 13 years and could not be more pleased with the selection of products, availability and the personal service we receive from our Rep Brian Kocjan. We are thrilled with our fastener section and extend our thanks to Midwest!”

Exceeding Expectations. One Fastener Destination at a Time!

- Robyn S. Gillett, Store manager Hemly Tool Supply, Inc. Thompson, OH

HEADQUARTERS

1025 East 54th St. Indianapolis, Indiana 317-275-9400

NHPA@YourNHPA.org YourNHPA.org

OUR MISSION

The North American Hardware and Paint Association (NHPA) helps independent home improvement and paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois

EXECUTIVE VICE CHAIRMAN

Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

DIRECTORS

Craig Bond, Tommy’s Paint Pot, Eugene, Oregon

David Dishke, Grand River Home Hardware, Caledonia, Ontario

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon

Jackie Sacks, Round Top Mercantile Co., Round Top, Texas

SECRETARY-TREASURER

Bob Cutter, NHPA President and CEO

STATE & REGIONAL ASSOCIATIONS

MIDWEST HARDWARE ASSOCIATION

Jody Kohl, 201 Frontenac Ave., P.O. Box 8033 Stevens Point, WI 54481-8033

800-888-1817; Fax: 715-341-4080

NHPA CANADA

Michael McLarney, +1 416-489-3396, mike@hardlines.ca 330 Bay Street, Suite 1400 Toronto, ON, Canada M5H 2S8

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

Richard Jarrett, 314-432-7511, Fax: 314-432-7665

COMING IN JANUARY

A Year in Review

Next month, the North American Hardware and Paint Association will publish its annual Market Measure report, providing retailers and channel partners an overview of the state of the independent home improvement industry. With industry data and insights from home improvement channel experts, this resource offers opportunities to look back at the year and the changes, successes and challenges seen in the industry. It also provides insights into what may change and what will stay the same heading into another year.

Join Us for a Market Measure Webinar Wednesday, December 15 Register at YourNHPA.org/webinars

EDITORIAL, DESIGN & PRODUCTION 317-275-9400, editorial@YourNHPA.org

MANAGING EDITOR

Melanie Moul, mmoul@YourNHPA.org

PRODUCTS & DIGITAL EDITOR

Hans Cummings, hcummings@YourNHPA.org

ASSOCIATE EDITOR

Lindsey Thompson, lthompson@YourNHPA.org

ASSOCIATE EDITOR

Carly Froderman, cfroderman@YourNHPA.org

SENIOR DESIGNER

Aubrey Smith

GRAPHIC DESIGNER

Autumn Ricketts

DIGITAL MEDIA SPECIALIST

Kevin Trehan

PRODUCTION MANAGER

Austin Vance

SALES & PRODUCTION ASSISTANT

Freda Creech

ISSUE CONTRIBUTOR

Kate Klein

MARKETING & COMMUNICATIONS

EXECUTIVE DIRECTOR, MARKETING & COMMUNICATIONS

Whitney Daulton

CORPORATE COMMUNICATIONS MANAGER & EDITOR

Julie Leinwand

NHPA SALES

FIELD SALES MANAGER & SOUTHERN SALES DIRECTOR

Scott Gilcrest, sgilcrest@YourNHPA.org, 317-508-7680

MIDWEST SALES DIRECTOR

David Brodowski, dbrodowski@YourNHPA.org, 440-520-9551

NORTHEAST, NORTHWEST & CANADA SALES DIRECTOR

Jordan Rice, jrice@YourNHPA.org, 217-808-1641

EXECUTIVE STAFF

PRESIDENT & CEO

Bob Cutter

CHIEF OPERATING OFFICER & PUBLISHER

Dan Tratensek

CHIEF FINANCIAL OFFICER & EXECUTIVE VICE PRESIDENT, BUSINESS SERVICES

David Gowan

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Paint and Hardware Association, 1025 East 54th St., Indianapolis, IN 46220. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50/year. Canada $75/year. All other countries $100/year. (Air Mail $60/year additional). Single copy $7. The Annual Report issue can be purchased for $30.

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

POSTMASTER: Send address changes to Hardware Retailing, P.O. Box 16709, St. Louis, MO 63105-1209.

REPRINTS: For price quotations, contact the Editorial Department at editorial@YourNHPA.org. Printed in the U.S.

MEMBER SERVICES & TRAINING 800-772-4424, NHPA@YourNHPA.org

DIRECTOR OF MEMBER SERVICES & EVENTS

Katie McHone-Jones, kmchone-jones@YourNHPA.org

TRAINING MANAGER & EDITOR

Jesse Carleton, jcarleton@YourNHPA.org

RETAIL ENGAGEMENT SPECIALIST

Renee Changnon, rchangnon@YourNHPA.org

DATA & INFORMATION COORDINATOR

Natalie Harris

EXECUTIVE DIRECTOR, PAINT & DECORATING PROGRAMS

LeAnn Day, lday@YourNHPA.org

EXECUTIVE DIRECTOR, ADVANCED RETAIL EDUCATION PROGRAMS Scott Wright, swright@YourNHPA.org

January 7-8, 2022

Opryland Convention Center Nashville, TN

We invite you to visit our Market and see what we have to offer:

• Unmatched Super Savers

• • Lots of Cash Spiffs

• • Hot Deals at Bonus Buy Breakfasts

• • Unbeatable Prices

• • Easy Payment Terms and Dating

• • Industry Leading Vendor Participation

• • Exciting New Vendors & Items

• • Electronic Ordering

• • State-of-the Art Marketing Programs

• • Advertising & Merchandising Solutions

• • Educational Seminars

• • Travel Rewards

• • Room Reimbursement

• Great Food & Entertainment Register for our Dealer Market on etoolbox.net

Who’s in Your Corner?

Finding quality workers in the current labor environment is difficult for employers across industries. See how two home improvement retailers are building their team of key decision-makers by developing the staff they have and ensuring a good fit within the hiring process.

Building Loyalty

A loyal customer base is crucial to the success of any retail operation. Learn ways to encourage repeat customers and how two retailers have found a faithful following thanks to robust rewards programs.

Setting Up the Sale

Consultant Sam Brownell shares insights on how to sell or purchase a retail business. Plus, discover how the NHPA Retail Marketplace can be a resource for taking the next steps on your operation.

A Community Pillar

While he didn’t aspire to become a hardware retailer, Randy Rich has used Rusty Nail Hardware in Oblong, Illinois, as a way to serve his community and preserve a cherished amenity in the area.

Locally Focused Services

Tailoring services to your local community can be a prime opportunity to build your operation. Gain insights on setting up unique services in your business that serve a critical need in your community.

Check out these stories and more at

OPERATIONS

Building Your Bench

Developing your team into key decision-makers will be crucial heading into next year. Use these resources and guides to help you take the next steps in building your bench.

Invest in People

Discover training opportunities available through the North American Hardware and Paint Association (NHPA). Whether you’re looking for entry-level courses, leadership programs or more, NHPA has something to fit your needs.

What Makes a Good Job?

On a new podcast episode, hear insights from Sarah Kalloch, executive director of the Good Jobs Institute, a nonprofit organization helping companies create jobs and redefine what it means to run a successful business.

Employees Are an Asset

Watch this presentation from Kevin Hancock, president and CEO of Hancock Lumber, to find out how he has led his company to be named one of the “Best Places to Work” in Maine for eight consecutive years.

Find More Stories Online

MARKETING Points for Marketing

McCormick Paints runs a loyalty program just for its professional customers that awards these customers points they can spend on branded marketing materials and merchandise, saving them money in their own marketing budgets.

CATEGORY A Measure of Success

Customer loyalty can be a tricky metric to measure, but fortunately there are several ways to assess how faithful customers are to your company. Check out these four methods for measuring customer loyalty.

of consumers say a loyalty program makes them more likely to buy from a company.

INDUSTRY EVENTS Conference Catch-Up

If you didn’t get a chance to attend the NHPA All-Industry Conference at the National Hardware Show, you’re in luck. We’re releasing videos of each presentation every week in December!

EDITORIALLY SPEAKING CONNECTIONS Send Melanie a Message mmoul@YourNHPA.org

Melanie Moul

YourNHPA.org/es-pod

“It’s time to take a step back and evaluate how you can delegate so you can spend more time working on the business.”

The Great Delegation

ON MY WAY HOME FROM THE OFFICE last week, I passed a man leaf-blowing outside a strip mall of restaurants on the corner. The next day, at about the same time, I saw him doing it again. By the third day, I expected him to be there, and there he was, clearing the sidewalk.

I don’t know what the man’s job is, whether he works for or owns one of the restaurants or if he’s contracted by the companies to clear their sidewalks on a daily basis.

But his consistency got me thinking about the tasks and responsibilities that are must-dos in any operation. Someone needs to keep the front walkway clear of debris. Someone needs to order office supplies. Someone needs to be sure the new hire knows how to clock in and out and where to put their lunch.

In your business, maybe one person is responsible for all of those things. Maybe it’s a team effort. But as an owner-operator, one question you should ask yourself is: Am I the best person to manage these tasks? Most likely, the answer is going to be no.

Delegation is a lot easier said than done. We’ve all been in those situations where it’s easier for us to do the task than to teach someone else how to do it. We also all want to rush to put out fires instead of asking the people who are closer to them to toss the bucket of water.

On Page 16, we feature two different operations, one is a multistore operation with hundreds of employees, and the other is a single-store business with fewer than 50 on staff. However, both companies have devoted time and energy to developing team members at all levels so the management teams can focus on business strategy and less on business routines.

The primary takeaway these retailers share is that in order for you to grow your operation—whether in sales volume, store count or other metrics—you need to give your employees the tools and the opportunities they need to learn what you know and give them the space to practice it. One key result these operators have seen by creating these opportunities is deeper employee engagement and loyalty, which is critical during this time of human resources challenges.

My advice: If you’re finding yourself in the weeds with “in the business” responsibilities, it’s time to take a step back and evaluate how you can delegate so you can spend more time working on the business instead. Your team will appreciate the investment and give back in kind.

Melanie Moul Managing Editor

Tratensek

TAKING CARE OF BUSINESS

“This pressing desire to invest in employees should really come as no surprise and is incredibly encouraging.”

Target Your Investments

ACCORDING TO THE 2021 Cost of Doing Business Study from the North American Hardware and Paint Association, 2020 was the most profitable year on record for both hardware stores and home centers. In fact, net operating profits for both these store types were nearly double what they are in a more typical year.

We all know that the “pandemic surge” in home improvement fueled this perfect storm for home improvement retailers. Sales were up an average of about 22 percent for independents and as one retailer famously said, “We just couldn’t spend money as fast as we were making it.”

We are glad to report that it appears as if the sales and profitability momentum that started in 2020 seemed to be carrying through much of 2021. So as we wind down the second half of two crazy years for the industry and start to move into that long-coveted period we have all taken to calling the “new normal,” there is a persistent question out there for independent home improvement operators.

How are you going to invest the hard-earned profits your businesses have seen over the last 24 months?

We posed that question as part of our 2021 Midyear Report we fielded over the summer. By far, the No. 1 answer we received was that retailers planned to make additional investments in their employees. In fact, more than 6 out of 10 retailers responding to our survey said employee investments are how they plan to invest in their businesses in 2022. Investing in technology and new categories for the store came in a distant second and third.

This pressing desire to invest in employees should really come as no surprise and is incredibly encouraging. Obviously, areas like technology and new products are incredibly important drivers for any business, but it seems as if retailers in this industry are truly embracing the one thing that not only got them through the pandemic but that will carry them into this new era for independents—people.

It is also no surprise that “finding quality people” was also listed as one of the biggest challenges to growth that retailers told us they were facing. And it is becoming increasingly clear that the best way to navigate this challenge is through targeted investments. These investments could be compensation, productivity tools, training and creating a culture that helps you hire and retain quality talent.

For years, independent retailers have set their operations apart by delivering quality service, convenience and knowledgeable employees. It is refreshing to see that the majority of independent retailers are willing to invest in making sure this doesn’t change.

Dan M. Tratensek Chief Operations Officer & Publisher

Do it Best provides the freedom to grow your business your way. Better yet, you can reinvest your record-breaking rebate to make it happen. Expand your sales floor to attract new customers. Use powerful Do it Best ecommerce tools to create a dynamic online shopping experience. Maximize your market share with a full store reset. Acquire a new location or build one from the ground up.

No matter which growth strategy is right for you, Do it Best stands ready with the resources, support, and guidance of the only total solution in the independent home improvement industry.

The time has never been better to take the next step in your business growth plan. Call us today at 888-DO-IT-BEST (888-364-8237) or visit doitbestonline.com.

NHPA NEWS

LEADERSHIP

Nominations Are Open

Learn more about NHPA’s Young Retailer of the Year program at YourNHPA.org/yroty. The deadline to nominate a retailer is Jan. 28

ASSOCIATION

Honoring the Next Generation

SUBMIT YOUR NOMINATIONS FOR THE 2022 YOUNG RETAILER OF THE YEAR PROGRAM

NOMINATIONS ARE NOW OPEN for the North American Hardware and Paint Association’s (NHPA) 2022 Young Retailer of the Year program. Now in its 26th year, the program identifies retailers 35 years old or younger who represent the future of the independent home improvement industry.

About the Award

The Young Retailer of the Year program is the premier award in the industry honoring the next generation of independent home improvement retailers. Honorees benefit from exposure for themselves and their businesses, and they build a network with like-minded retailers in their generation. Honorees also have the opportunity to participate in additional programming and scholarships through NHPA.

How Honorees Are Selected

The deadline to submit nominations is Jan. 28. Entries are scored based on nomination criteria, including contributions to operational growth; community involvement; engagement in industry education; and industry and organizational innovation and other activities.

Honorees are selected from three categories: stores with less than $3 million in sales; stores with more than $3 million in sales; and multistore operations.

Young Retailer of the Year nominees should be 35 years old or younger as of Jan. 28, 2022. They must work at independent retail hardware stores, home centers, lumberyards and paint and decorating outlets in the U.S., its territories or Canada. Past entrants who were not chosen as previous honorees are invited to submit new applications.

The 2021 Young Retailer of the Year honorees were recognized at a reception celebrating 25 years of the program in Las Vegas in October ahead of the NHPA All-Industry Conference.

EDUCATION

Explore Your Options

Ready to train your team? Visit YourNHPA.org/academy to learn which of NHPA’s educational offerings is right for your operation.

EDUCATION

Acquire Financial Management Skills

Enroll in NHPA’s Foundations of Leadership Financial Management course by Jan. 7. Visit YourNHPA.org/fol to download the program guide.

ARE YOU LOOKING TO GAIN INSIGHT into expense control, budgeting, benchmarking, gap analysis and more?

In NHPA’s nine-week Financial Management course, part of the Foundations of Leadership program, students learn key financial management skills that developing leaders need to manage the financial side of the business.

Foundations of Leadership is an online, college-level leadership development program for new or seasoned managers. It is designed to fit students’ busy schedules and features collaborative online learning with instructors and other students. A self-paced option is also available.

WEBINAR

A Year in Review

Join us for a webinar Dec. 15 featuring insights from the annual Market Measure report.

ANOTHER REMARKABLE YEAR has passed for the independent home improvement industry. In the January issue of Hardware Retailing, you’ll get to read the annual Market Measure report for detailed insights into what has been another record-breaking year.

First, join NHPA’s Dan Tratensek for a webinar as he discusses highlights from the report, including NHPA projections. Head to YourNHPA.org/webinars to register for the webinar, which takes place Dec. 15 at 2 p.m.

Discussion Topics

• Highlights from the NHPA Midyear Review and updates

• Insights into retailer’s top challenges and opportunities going into 2022

• Projections about the industry, including category trends and operations

Enroll by Jan. 7

For more information, visit YourNHPA.org/fol or contact Scott Wright, NHPA’s executive director of advanced retail education programs, at 317-441-4136, or swright@YourNHPA.org

WEBINAR DETAILS

5 Future-Focused Industry Insights

Dec. 15 at 2 p.m.

Visit YourNHPA.org/webinars to reserve your seat.

BUSINESS SERVICES

4 Key Services to Strengthen Your Business

Explore NHPA’s business service partners and options at YourNHPA.org/business-services

NHPA SUPPORTS independent home improvement retailers through its partnerships with trusted business service organizations. Learn more about some of these services here.

Health Insurance

The NHPA Health Insurance Program is designed specifically for independent home improvement retailers and offers great benefits with low group rates and the flexibility to choose your plan design.

Credit Card Processing and Payment Services

Clearent provides payment solutions for your business. They offer low credit card processing fees and payment service technology, including mobile, wireless and e-commerce payment solutions.

Workers’ Compensation and Liability Insurance

American Hardware & Lumber Insurance, formerly Member Insurance, provides risk management and insurance services and education to independent home improvement retailers.

Retail Marketplace

The NHPA Retail Marketplace connects buyers and sellers of home improvement operations and provides store owners with a costeffective way to advertise their locations for sale. Learn more about the Retail Marketplace on Page 30

Free Resources

Visit YourNHPA.org/training for Train the Trainer, Trainer’s Toolbox and other free tools and guides for home improvement retailers.

TRAINING

3 Must-Have Operations Courses for Managers

To access all of the courses in NHPA’s Retail Academy, become an NHPA Premier Member at YourNHPA.org/membership

AS YOU’RE BUILDING A BENCH of future managers, it’s critical to train them on basic operational areas of your business. NHPA has educational opportunities for all levels of employees through the Academy for Retail Development, which is designed to help employees grow in their retail careers.

Future managers will get some of the important leadership and management training they need from Foundations of Leadership and the Retail Management Certification Program. But before they enroll in these higher-level courses, it will be helpful for them to have the foundational knowledge they’ll get in the entry-level courses. NHPA has three courses designed for anyone who needs a better understanding of the core operational fundamentals of running a business.

• Basic Inventory Management. This course offers an overview of the basic concepts and best practices of managing inventory in a home improvement store, from ordering and receiving to dealing with discontinued merchandise.

• Basic Retail Pricing. Perfect for anyone who wants a high-level view of pricing fundamentals, this course shows the connection between a retailer’s pricing strategy and their overall profitability.

• Basic Retail Accounting. Students get an introduction to accounting with this course, which covers income statements and balance sheets and defines basic financial ratios.

CATEGORY Exciting Exteriors

Discover more trends for outdoor dining, outdoor living spaces and lawn and garden at hardwareretailing.com/outdoor-living-trends TRENDS

RESEARCH

Stay Awhile

A PLACE FOR SITTING , sipping and spending time together, a home’s porch offers additional living space and provides a spot for homeowners to enjoy time outdoors. The Survey of Construction, conducted by the U.S. Census Bureau, found that 65 percent of single-family homes built in 2020 had a front porch.

The National Association of Home Builders (NAHB) reported 2020 was the third time that the number of homes built with a porch broke the 65 percent barrier. The East South Central region of the U.S. has the highest concentration of homes with porches; in 2020, 89 percent of new homes built included a porch.

BY THE NUMBERS

Back and side porches are typically larger compared to front porches.

Back and side porches on average measure:

143 sq. ft.

Front porches porches on average measure:

99 sq. ft.

IN YOUR OPERATION

Merchandise outdoor furniture to show customers ideas for setting up their porch with seating or dining areas. Include furniture extras like outdoor throw pillows and cushions in your display.

When decorating for a holiday, homeowners frequently utilize their front porch. Use an endcap to highlight holiday decor for different seasons that would be well-suited for decorating a porch.

Don’t forget the accessories. Porches are an extension of the home, so suggest different products that can round out the space, such as lighting fixtures, candles and rugs.

Sources: National Association of Home Builders Eye on Housing, Share of New Homes with Porches Back Over 65 Percent; National Association of Home Builders, Remodeling Market Index; Home Innovation Research Labs, Builder Practices Survey

TRAINED FOR TEAMWORK

Budget Home Supply manager

Sean Angelo (left) and operations assistant Andrea Lara give their staff comprehensive training opportunities so everyone can contribute equally.

PODCAST Offer Good Jobs

Listen to this conversation with Sarah Kalloch, executive director of The Good Jobs Institute, to find out how you can develop your culture to retain great employees at YourNHPA.org/tcb-pod

Building Your Bench

LEADING YOUR BUSINESS THROUGH DELEGATION AND EMPOWERMENT

BY MELANIE MOUL

No industry is immune to the lack of qualified workers right now. In a recent report from the Society for Human Resource Management (SHRM), 90 percent of employers who responded to the survey say they struggled to fill open positions over the summer, and 73 percent reported a decline in applications.

Independent home improvement retailers haven’t been left out of this struggle. In a recent retailer survey from the North American Hardware and Paint Association (NHPA), 61 percent of respondents say they had trouble finding qualified workers in the first half of 2021, a challenge they ranked second only to supply chain challenges. And 59 percent of retailers say they anticipate the challenges to continue into the new year.

However, despite anticipating their challenges of finding new staff to continue, retailers ranked investing in employees as the No. 1 focus for their businesses in 2022, at 61 percent of respondents to the NHPA survey.

A strong group of knowledgeable employees is crucial to business growth, and with more than half of survey respondents anticipating sales to stay flat or grow over 2021 next year, developing the team you have is key.

On the following pages, meet two diverse retail operations that have created comprehensive strategies to build their bench of employees. They have empowered their staff to be decision-makers at all levels so company leaders can work on the business and their teams can carry the business to greater heights.

Manager Material

Qualities to Look for When Promoting From Within

All the retailers we spoke to for this article say they prefer to promote current staff members to management positions because it’s already apparent that they are a good fit for the culture. Here are some qualities they say they look for when identifying leaders.

You’re always looking for honest, trustworthy, reliable individuals who garner the respect of their co-workers.”

—Sean Angelo, Budget Home Supply

We find people who have the ability to delegate, and who are fair, firm and consistent.”

—James Garza, Alamo Lumber Co.

It’s OK to look for individuals who are different from you. They may have an answer to something you’re struggling with.”

—Sean Angelo, Budget Home Supply

It’s important for leaders to be great communicators. You have to whisper to some people and you have to paint the picture for other people.”

—James Garza, Alamo Lumber Co.

Choose Your Second

At Budget Home Supply in Longmont, Colorado, general manager Sean Angelo has a simple philosophy when it comes to hiring.

“Everybody has their own strengths and weaknesses,” he says. “We try to play to individual strengths, but we also have to have people in key roles that support the overall organization. It’s like putting a puzzle together so your organization is strong and complete.”

Bev and Butch Vernon founded Budget Home Supply in 1984, and the company has undergone several expansions since. Currently, it operates in an 80,000-square-foot facility, about two-thirds of which is salesfloor space, and it includes a 30,000-square-foot drive-through lumberyard.

Angelo joined the company in 2008, and it was always the owners’ plan for him to develop into leadership. At that time, Butch did the majority of the hiring for the operation, a responsibility that eventually transitioned to Angelo. Now, it suits the business better for department managers to handle the details of the hiring process.

“The supervisory roles in the company have developed so now managers do a lot of their own hiring for their specific employees,” Angelo says. “Giving managers that responsibility helps them take ownership of their area. We tell them, ‘Go find the right people and make it happen.’”

Operations assistant Andrea Lara joined the Budget Home Supply team in 2018 as a cashier, and she eventually moved into sales. She realized after about a year that sales wasn’t a good fit for her, but she wanted to remain with the company. At the time, Angelo needed help at the operations level, so they worked together to create a position for Lara.

“I needed assistance with facilitating policies and procedures,” he says. “She’s done a great job taking some of that off my plate. If we hadn’t moved her into this role, it would get pushed off and we would never get to it.”

In her newly created position, Lara is somewhat of a jack-of-all-trades. She still manages sales, but also helps with the hiring process, training and even dabbles in IT work.

One key area she was able to develop was training. She updated the Budget Home Supply cashier handbook, developed orientation policies and created quizzes for trainees to take before they move on to the next level. The system ensures everyone gets a comprehensive introduction to the company and everyone gets the same training.

INDUSTRY AWARDS

Top Guns Talk Hiring

Head to hardwareretailing.com/top-guns-2021 to read insights from this year’s Top Guns Award winners on their approaches to hiring.

“This is where I want to make my career. I was open minded and willing to learn anything. I feel like the options are endless here.”

—Andrea Lara, Budget Home Supply

“Because it’s so challenging to find new staff, we are making a concerted effort to make every team member the best they can be,” she says.

Angelo says putting the initial investment into training and tools is key to keeping people engaged in their work and looking for more opportunities to grow.

“It’s the people you employ who make a difference, so you need to keep investing in them. Our goal is to give them

the necessary tools so they can succeed,” he says. “A lot of that is driven by their self motivation and their willingness to learn. The resources are there if they want them.”

In addition to developing the training programs, Lara says it’s also important to focus on making Budget Home Supply a great place to work. Part of her responsibilities include finding ways to help people destress and make friends.

“As we continue to grow, we don’t want to lose that atmosphere of the small, family operation,” she says. “We wanted to bring co-workers and everything together.”

During the holidays, Lara hosts a Secret Santa and a hot chocolate trolley to keep spirits up and to connect people.

Budget Home Supply currently employs around 50 people, and several of them have been with the company for a decade or more. Lara is part of the newer crop of employees, but she says because of the opportunities she’s been given to identify her strengths, she sees a long-term future with the company.

“This is where I want to make my career. I was open minded and willing to learn anything,” she says. “I feel like the options are endless here.”

When Andrea Lara realized sales wasn’t a good fit for her, she worked with her manager to develop a new operations role. Now she manages training, business needs and other tasks. OPERATIONS 101

LEADERSHIP

Culture Creation

Find out what makes your team tick and improve communication with personality profiles. Head to hardwareretailing.com/personality to find the right assessment for your operation.

Local Focus in Texas

The Vaughan family started Vaughan and Sons Inc., a pioneering Texas wholesale lumber business in 1893 in San Antonio and its retail subsidiary Alamo Lumber Company in 1903. Today, Alamo Lumber CEO and board chairman Bob Vaughan and his brothers are the fourth generation to lead the company, which now boasts 14 stores in south Texas, with its 15th and 16th stores slated to open later next year.

“Our stores are in small towns in south Texas that rely on farm and ranch and oil and gas economies,” Vaughan says. “Those areas have a significant impact on our sales.”

Because the stores are spread out from one another and from the main office, hiring decisions are the responsibility of the individual store managers. But prioritizing the company values to ensure a consistent and vibrant culture across all locations is a key part of the process.

“We believe the best decisions are made closest to the customers, so we delegate a significant amount of authority to store managers,” Vaughan says.

“They have sole hiring power, but we give them tools to help.”

To help maintain a consistent culture across locations, ensuring a good fit with new hires is key.

About 15 years ago, company leaders worked with a consultant to develop a pre-screening questionnaire that helps identify who will—and who won’t— support the company culture.

Each potential hire is asked to take a handwritten test that includes questions regarding their ability to work in a team environment.

“The questions help us learn their commitment to teamwork, level of integrity, attention to detail and overall literacy, which are important to be successful in the jobs they have here,” Vaughan says. “Since it’s a written test and it needs to be fully completed in a limited time, that in itself provides some feedback.”

The assessment was developed with insights from current employees. Before the final version of the questionnaire was implemented in the hiring process, about 50 long-term Alamo Lumber employees took it.

“We wanted to create a benchmark, and we thought if we could mirror that on our successful employees, it would be an accurate representation of our expectations,” Vaughan says. “It’s based on the attitudes and propensities of our existing staff who already are invested in and work with our values every day.”

Kenedy store manager James Garza says the prescreen helps take the guesswork out of hiring for him.

INCLUSIVE LEADERSHIP

Alamo Lumber Company CEO Bob Vaughan visits stores regularly to update managers and teams on company initiatives.

“The exam gives us a rundown of how they think in different scenarios,” Garza says. “It’s a lot of questions about honesty, integrity and simple decision-making, so it works to identify the people who would be the best fit for our operation.”

If an applicant fails the screening, managers have a limited number of appeals each year, which allows them to bring those applicants onto the team.

“We understand that sometimes testing isn’t for everybody,” he says. “We allow them to ask questions, so I do get people who ask what a certain question means or what we’re looking for. I have appealed maybe five negative test results the whole time we’ve been administering the assessment, and of that, only one has stuck with the company.”

Once an employee joins Alamo Lumber, store managers prioritizes cross-training throughout departments. Garza says this approach ensures a consistent experience for any customer, no matter who they encounter in the store.

“We empower our employees to be trained in as many areas as possible because it means anyone can complete any task or job,” he says. “If everyone has the same training and we practice our skills together, me included, we all have the opportunity to help the same customer. If we all mix paint, if we all do special orders, no one is left waiting to see a specific person. The more we train, the easier it gets to take care of the business.”

“We empower our employees to be trained in as many areas as possible because it means anyone can complete any task.”

—James Garza, Alamo Lumber Co.

In addition to finding strong fits for the culture and investing in training, Alamo prioritizes employee wellness and celebrates team successes.

“We pride ourselves on our family roots, and we respect family values for our team members,” Vaughan says. “For example, we encourage mangers to be flexible in scheduling. We all try to cover for each other so team members can be there for family events.”

The company also offers a generous profit-sharing plan, which Vaughan says helps with retention and shows how each individual can contribute to the overall success of the business.

“We establish financial goals and we encourage managers to share the details of the branch’s operating statement each month with their teams,” he says. “It’s a team-building approach and it shows everyone what it takes to make a profit. We’re able to relate everyone’s responsibilities back to the overall performance of the branch and the company.”

Garza says he appreciates the opportunities he’s had with the company, and it’s all because of the employee development strategies Alamo Lumber prioritizes.

“When I was a brand new manager trainee, I tried to soak up everything, but I don’t think I realized what it was doing for me until a year or two down the road,” he says. “Every skill I learned was a new tool in my belt. It’s a great company to work for because they take care of us, top to bottom. We have everything we need to grow and succeed here.”

Rewarding Loyalty

See how one retailer serves its contractor customers with a painters rewards program at hardwareretailing.com/loyalty

5 Ways to Earn Your Customers’ Loyalty Keeping Customers

BY LINDSEY THOMPSON

You’ve worked hard to curate a product selection that caters to your customers’ needs. You offer high-caliber customer service. Your store is in a great location. Still, you hear from customers who choose to shop elsewhere for certain items or stop shopping with you completely. Sometimes the issue is price, sometimes selection and sometimes, it’s a matter of customer loyalty.

Customer loyalty is a tricky metric to nail down, hard to measure and yet crucial to a retailer’s survival.

In a world that’s constantly vying for our attention, earning and keeping a customer’s loyalty should be a priority for any retailer. With a little creativity and effort, developing a customer loyalty program can go a long way in creating lifelong patrons.

On the following pages, discover best practices for implementing a customer loyalty program at your business. See how two retailers have used their customer rewards programs to build a steadfast base of repeat customers and discover other ideas for building customer loyalty that you can implement in your own operation.

SHOPPING

The rewards program at Lee’s Home Center incentivizes current customers to spend and draws in new shoppers.

SAVVY

FEELING VALUED

Before it implemented the rewards program, Lee’s Home Center was lacking in retail foot traffic, and the rewards program was a way to incentivize DIY and retail customers to come in the door for their home improvement needs.

Vogel says the average transaction size for rewards members is $33 more than for customers not in the program.

Finally, adding the rewards program gave the store’s in-house charge account customers an incentive to pay on time. The program rules state that any account not in good standing cannot receive rewards.

To promote the program, Vogel says they advertise on the store’s website, social media channels and in circulars, but their annual Best Rewards Customer Appreciation event gives them the biggest bang for their buck. The event is only open to reward members, who receive 20 percent back on anything they buy during the event in the form of a store gift card with a max reward of $200 per family.

“During the event, we allow customers to purchase gift cards, so many rewards customers come in and purchase a $1,000 gift card and walk out with $1,200 worth of gift cards they can use on any future purchase,” Vogel says. “We’ve had up to $156,000 in sales for the three-hour event, which we extended to a five-hour event last year because of COVID.”

In the seven years since the program was implemented, Vogel says they’ve run into some challenges but have found workable solutions.

“We’ve had some technical issues with the best way to handle odd situations, such as when a customer has two rewards accounts open at one time,” he says.

Vogel says they also had an instance when a customer had a rewards account for both business and personal purchases. To avoid confusion and help customers earn rewards faster, the team set guidelines that any person or entity has only one rewards account that they can use for personal or business.

Lee’s Home Center’s customers are rewarded for their loyalty through the Best Rewards program, where they can earn cash back on purchases.

4 Ways to Measure Customer Loyalty

Before you can build customer loyalty, you need to know where your customers currently stand. Customer loyalty can be a tricky metric to measure, but fortunately there are several ways to assess how faithful customers are to your company.

Find your net promoter score. Ask your customers one simple question, “Would you recommend us?” Track the answers, looking for an increase in customers who answer “yes” over a time period. If you continue to add customers answering affirmatively, it’s a good indication your customer loyalty is increasing.

Check loyalty program analytics. Look at the amount of engagement your loyalty programs are receiving. Repeat customers and frequent usage of a rewards program show your customers are willing to come back again and again to shop with you.

Examine online analytics. If you have any type of online presence, analytics from your website and social media channels are another way to see how customers are engaging with your brand. Page visits, likes, comments and shares, especially when repeated by customers, show you’re building a following online.

Look at purchasing data. Pull your purchasing data, looking for customers who are making multiple purchases and for those customers with large transaction sizes. Customers who make multiple purchases with you over time is another good indicator they are loyal shoppers.

“Now those customers who have personal and business accounts get credit for purchases on both accounts, and they also reach our max $50 reward per month,” Vogel says. “We have created our own customer-facing FAQ sheet and a sheet for our employees to reference that has general instructions and tips on how to handle odd situations. Both documents really help out when new employees start.”

The rewards program has brought new customers in the door and has created loyal customers who come back again and again to spend more money. Even when customers just come in to redeem rewards, it still benefits the store because they spend time on the salesfloor, seeing what other products the store offers and possibly making impulse buys.

“There have been customers who have looked for more than an hour figuring out what to ‘buy’ with their rewards,” Vogel says. “We love it because it gets customers to shop and see what we offer. Some customers have even driven from an hour away to use a $10 reward.”

Selling gift cards at the appreciation event also guarantees many repeat trips, and the money from the gift cards has already been added to overall sales.

“The rewards program also makes it easy for customers to shop because we can look up past transactions and see what size filter they bought last time, what type of paint they used for a particular project or when they bought a drill to check if it’s still in warranty,” Vogel says.

PRODUCTS

Taste of Local

Discover how several retailers use local consumable products to build customer loyalty in their stores at hardwareretailing.com/local-consumables

“The customer will return again and again if they have learned from their experience that the inventory meets their needs every time they come.”

—Buck Hurst, Buck’s Ace Hardware

Lee’s Home Center encourages loyalty in other ways, including allowing returns without receipts and offering the ability to reprint or email any receipt.

“Customer loyalty shows we’re doing things right and ensures future sales with repeat visits,” Vogel says. “It helps with word-of-mouth advertising, too. The more loyal a customer is, the more likely they are to recommend us to their family and friends.”

Service and Selection

At Buck’s Ace Hardware, loyalty is earned by stocking the home improvement products their customers need and providing a welcoming environment that is easy to shop. The company opened its first store in the Hurricane Valley in 1982 and now has three locations in Utah.

Owner Buck Hurst believes customers make a particular business their first choice because of the assortment of products offered. He makes sure his stores are stocked deep and wide enough to meet his customer’s needs with multiple choices available.

“If they want six of a particular item and we only have three, then we haven’t met their needs.

So, the assortment needs to be deep and the order points sufficient to meet the goal of never having something out of stock and never missing a sale,” Hurst says. “Having an assortment within the category is essential, as well. The customer will return again and again if they have learned from their experience that the inventory meets their needs every time they come.”

Hurst has found that well-trained staff who are committed to the business and its goals also lead to customer loyalty.

His employees are trained to greet customers by saying, “What can I help you find?” and close with, “Is there anything else I can help you with today?” to assure they’re fully meeting the customer’s needs.

REWARDING PURCHASES

The customer rewards program at Buck’s Ace Hardware is just one way the company makes its customers feel valued.

Staying Organized

Teach employees four ways to maintain effective merchandising at YourNHPA.org/merchandising

“Merchandise should always be front-faced, neat and say, ‘Welcome, we are ready to serve you.’”

—Buck Hurst, Buck’s Ace Hardware

Merchandising is also key in maintaining customer loyalty at Buck’s Ace Hardware. Hurst makes sure each store has a clean and neatly organized presentation with every aisle merchandised to easily show each store’s assortment.

“Merchandising is both an art and a science. It’s an essential part of the culture that invites customers to return to our store again and again,” Hurst says. “Merchandise should always be front-faced, neat and say, ‘Welcome, we are ready to serve you.’”

Buck’s Ace Hardware’s company culture stresses that every customer is important

and essential, and the rewards program the store uses through its wholesaler is a way to show appreciation to their customers.

“Our customers enjoy the benefits from the excellent rewards program,” Hurst says. “We have found from all the analytics that the rewards program adds significantly to the overall financial success of our business.”

Buck’s Ace Hardware was an early adopter of its wholesaler’s rewards program, implementing it in the Hurricane store in 2001 and adding it to the St. George store when that location opened in 2018.

All of the employees at Buck’s Ace Hardware understand the importance of having neat, clean and well-organized displays that help their customers find what they need quickly.

DEEP AND WIDE

Buck’s Ace Hardware customers appreciate the depth and breadth of selection at each of the stores and being able to find the products they need.

Over 70 percent of customers use the rewards program in the St. George store and 65 percent in the Hurricane store. Rewards customers come to the store on average nine times a year and spend over $31 each time they come, Hurst says.

The company advertises the program through its circulars, direct mail, email and SMS messaging, but the main way it promotes it is at the registers. Employees are trained to always ask for a customer’s rewards card and if they don’t have one, they assist them in signing up for it if they want one. Hurst appreciates that the program was easy to implement and is easy to maintain. Any time there are any issues, Hurst’s co-op is quick to resolve the problem. He also takes advantage of the additional programs offered within the main rewards program to help build more loyalty.

“Those additional programs are aided in their success through the data we provide to our wholesaler, which they use to develop a more strategic market approach for the rewards programs,” Hurst says. “This is a great benefit to us, allowing us to reach a larger group of our customers with a higher redemption rate.”

Combined with a deep and wide product offering and a commitment to well-trained employees and thoughtful merchandising, the rewards program has helped build loyal customers for Buck’s Ace Hardware.

“The rewards program brings in new customers, creates repeat customers and establishes loyalty within our current base of customers, letting every customer know they are valued and rewarded,” Hurst says. “The program is a win-win for both customers and the business itself.”

Inside the Marketplace

Listen to the episode of the “Taking Care of Business” podcast featuring NHPA CFO and executive vice president of business services Dave Gowan to learn more about the NHPA Retail Marketplace at YourNHPA.org/tcb-pod

Buy or Sell? Are You Ready to

BY JULIE LEINWAND

You may have put selling your business or buying additional stores on hold during the peak of the pandemic. But now, following nearly two years of historic sales throughout the industry, you are finally ready to take that next step.

Whether you’re preparing to step down from your operation and sell or you’re looking to expand your business to additional locations, there are preparations to be made before you can move forward.

For professional insights into best practices for selling and buying a business, Hardware Retailing consulted Sam Brownell, managing director of Stratus Wealth Advisors LLC, which provides essential data and advice to help independent retailers make the best decisions for their company and family through valuation, succession planning, asset management and financial planning services.

On the following pages, get tips from Brownell about the steps you should take—either as a buyer or seller—to prepare yourself and your business. 8 TIPS TO PUT YOUR BEST FOOT FORWARD

Ready, Set, List

If you’re selling your business or you’re looking to buy, the NHPA Retail Marketplace can be the key to taking the next step. Sellers can list their operations publicly or privately for a fee, and interested buyers can review listings to find a good fit for their operation.

In early 2022, NHPA is expanding the Retail Marketplace to include buyer listings and employee listings.

Retailers are making plans to list their open positions on the Retail Marketplace in anticipation of reaching a wider range of potential employees. Busy Beaver, which operates 25 locations and counting in the greater Pittsburgh area, has already noted the potential the platform presents as they continue on a strategic growth path.

“The NHPA Retail Marketplace employee listings will offer companies like ours an opportunity to fill professional roles with experienced people,” says Nick DeMao, CFO and vice president of administration for Busy Beaver. “This platform will allow us to look beyond our immediate market and find the right fit for our operation. We look forward to the possibilities this service will offer.” Visit YourNHPA.org/marketplace to learn more.

Currently, Busy Beaver has openings for district manager, merchandise manager and multiple store general managers. Visit busybeaver.com/join-ourteam for more information.

Sellers

Start with a valuation.

“Most business owners think their businesses are worth more than what a third party will tell them, and this can be an important reality check,” Brownell says. “Emotionally, you feel your business is worth quite a bit, but a buyer is not going to have that same emotional connection, so they are going to look at it much more objectively. Starting with a valuation helps ensure we’re asking the right questions.”

Maximize the value of your business with:

Audited financials

“The first thing a buyer is going to ask for is historic financials. Audits show the buyer that you care about getting your business in the right place,” Brownell says. “Look at what expenses you can improve and make sure your financial statements are really clean.”

A capable, self-directed team

“So many owners, especially in this industry, are the business,” Brownell says. “To make their business more attractive to buyers and to make it more valuable, they need to start diversifying away from their leadership, develop their teams and build a company that can function without the owner.”

A diversified customer base

“If you’re a lumberyard or home center in a rural area, and maybe your top three contractor customers make up 30 percent of your revenue,” Brownell says.

“You need to have a good explanation for why they will continue to do business with you or find opportunities to diversify that revenue stream.”

Work with an expert to look at cash flow analysis, tax litigation, estate planning and busines legal documents, such as a professional will.

“The thing about any legal documents is they don’t seem really important until they are—then they are key to have in place,” Brownell says.

Understand the emotional component of selling a business.

“For most people, the biggest hurdle is the emotions that get wrapped up in running a business. In my experience, these folks care deeply about their business, their employees and their communities,” Brownell says. “So in these initial conversions, it can be difficult for the owner to really consider what it might be like to not be an owner. It’s important that, as a seller who is approaching potential retirement, to talk with their family about what their business means to them, how they want to interact with the business as they go forward and their ultimate vision for the business. These retailers want to leave a good legacy and the culture they built to last. So recognizing that emotional piece is a really important step any seller can take.”

Buyers

Establish a vision for your business.

“Your vision for the business is key because that will help reduce the universe of potential businesses you could buy. There are thousands of stores that could potentially be for sale in the next ten years. Your job as the buyer is to ask what your vision is for ownership so you can narrow down those thousands of options,” Brownell says. “Questions such as, ‘Where is my ideal market?’ ‘How many stores do I want to own?’ ‘What is my ultimate ownership vision, and what type of retailer do I want to be?’ should all be at the top of the list.”

Ask questions.

“After you engage the seller and sign a nondisclosure agreement, you will assess financial statements to determine your own independent valuation of the business,” Brownell says. “You are going to want to ask lots of questions. For example, if you see that financial statements haven’t been audited, you need to talk to the accountant. Is the owner still really involved in the day-to-day operations? In that case, it’s not a deal breaker, but that will change the terms of any buyout. Maybe you will want them to stick around for a couple of years to help with the transition, and that becomes part of the negotiation process. Ask lots of questions so you can understand the seller’s business and uncover any red flags.”

Consider how you will structure the buyout.

“Is this over a period of time, are you going to finance it through cashflow from the business or are you going to have to take out a loan? You need to think through the structure of the sale,” Brownell says. “Will you buy the business, roll over the entity and continue operating under the same name? Or will you rebrand? Underlying each of these questions are potential tax consequences that need consideration. The buyer also needs to make sure their legal documents are tied up and they have a good corporate attorney.”

Consider the seller’s perspective.

“There are a lot of moving parts, but essentially, the buyer and seller should try to think like the other side so they can be prepared for any potential pushback during negotiations,” Brownell says. “Buyers also need to understand that there is an emotional component to this process and that they need to be very understanding and empathetic. That emotional component is really important, because it’s not usually something that will break a deal, but it is something that can sometimes be very difficult to manage, especially during the first couple of months or the first year of an ownership transition process.”

Hometown Leader

BY KATE KLEIN

OUTREACH

Share Your Story

Every independent retailer has a unique story. Contact us at nhpa@YourNHPA.org to share yours!

Randy Rich didn’t aspire to become a hardware retailer, run for mayor or buy a grocery store. But just like his 23-year-long service with the local volunteer fire department, he saw needs and volunteered to help.

Rich is the owner of Rusty Nail Hardware in Oblong, Illinois, a rural community with a population of less than 1,500 residents located in southeast Illinois. Oblong is Rich’s hometown, and is where he has spent most of his life working, raising his family and living as a citizen who cares about the people and the community.

He considers Rusty Nail Hardware, which is the only home improvement store in the area, to be an important village amenity.

When prior owner Larry Kirts told him, “If you’re going to buy anymore hardware stuff here, you’re going to have to buy the place,” Rich took him seriously. He thought owning the hardware store would fit well with his existing construction business and help him protect the local economy.

“To me, small business is what drives the country,” Rich says. “Losing a store hurts every business in town. We don’t have a whole lot of businesses, so we don’t want to lose a single one of them.”

Loyal to Home

Rich was born and raised near Oblong and his heart has long been invested in helping the area thrive. Operating businesses, employing local people and getting involved in village government have been key ways he has poured his time, effort and money into his community.

Starting in high school, Rich worked for a local auto parts store and eventually began building homes on the side. He went on to marry Andrea, his high school sweetheart, and when they began raising their two daughters, Rich realized working two jobs took him away from his family more than he wanted.

Rich enjoyed homebuilding, working with friends on job sites even after 12-hour workdays at the auto parts store, so he decided to make construction his focus.

He went into custom homebuilding full time, eventually running his own construction company. And because he wanted to support other local businesses, during his time as a homebuilder, he often bought supplies from Rusty Nail Hardware’s prior iteration, Ablinger & Kirts in Oblong.

Rusty Nail Hardware originally opened as a lumberyard in the 1920s and served residents and contractors in the community for about 50 years when Kirts bought it in the 1970s. Kirts was the owner Rich saw regularly when he stopped in at the store to buy supplies for his construction jobs.

“It was a solid business. When I see something good, I’m not afraid to take chances.”

—Randy Rich, Rusty Nail Hardware

Kirts’ plan to sell his operation to an employee fell through, so he was serious when he told Rich that he would need to buy the store if he wanted to keep it open and continue purchasing supplies there.

Rich realized his homebuilding business would save money if he could buy products wholesale through his own store. In addition, running the store could become a retirement option for him when the time came to stop building custom homes. Serving store customers would allow him to use the knowledge he had gained in construction without taking the physical toll on his body that construction work required.

The store would also be a means to provide ongoing opportunities to employ local people and serve the community. Kirts was operating a profitable store, so Rich also knew the opportunity to buy the operation was a good one.

“It was a solid business. When I see something good, I’m not afraid to take chances,” Rich says.

Helpful Hands

Read how one retail operation served its community during the pandemic at hardwareretailing.com/overcoming-the-odds

He bought the store in 2001 and renamed it Rusty Nail Hardware. Kirts was ready to retire before Rich wanted to stop building homes, so Andrea managed the store full time while Rich continued working at construction sites. Prior to joining the business full time in 2016, Rich frequently worked at Rusty Nail Hardware during his lunch breaks.

His familiarity with the industry and the store made for a smooth leadership transition when Rich closed down his homebuilding business and replaced Andrea as the Rusty Nail Hardware owner-operator.

“I get a lot of building questions because I was a builder for so long. That’s what made the transition so good, so simple,” Rich says. “Everybody knew I was well-versed in construction and I have quite a bit of knowledge about building a house.”

In 2014, Rich partnered with other area business owners to buy Oblong’s only grocery store, acquiring it for the same reason Rich

bought the hardware store: To keep it open for the sake of the community. Andrea was more interested in selling groceries than hardware, so when Rich stopped building houses, she began managing Village Market on Main.

Choosing Public Service

Helping Oblong thrive has been an ongoing effort for Rich. In addition to operating local businesses, he has served on the village’s volunteer fire department for 23 years.

He also was a member of the village council before he became convinced he and three other community members could make a bigger difference for Oblong if they worked together as elected officials.

They saw that the lack of clear leadership on the village council and conflict between council members was making it difficult for Oblong to fund key infrastructure repairs that mattered to residents.

UPDATED SPACES

Owner Randy Rich is working on a total remodel of Rusty Nail Hardware, making exterior and interior updates to the store.

“We need everyone involved in this town to work together to make things work.”

—Randy Rich, Rusty Nail Hardware

Rich served three four-year terms as mayor and discovered that both homebuilding and working at Rusty Nail Hardware gave him the flexibility for daytime meetings when necessary. While he was mayor, he helped fund and oversee projects to improve sewer systems, streets and storm drainage.

“Preservation of the village is what we got on there for,” Rich says. “We’re a little community. We need to get along and make things work. We need everyone involved in this town to work together to make things work.”

Focusing on the Store

After finishing his third term as mayor in 2015 and joining the business full time the following year, Rich developed a plan for improving and growing Rusty Nail Hardware. A full remodel has been in the works for five years.

Rich already tore down a suspended ceiling in part of the building to give the space an attractive vaulted ceiling and was able to add 1,200 square feet to the salesfloor by reorganizing the facility. He plans to add an additional 2,000 square feet by repurposing some warehouse space. When completed, the salesfloor will be about 8,000 square feet.

Remodeling the whole store, inside and out, was already underway, but the COVID-19 pandemic slowed progress. In 2020, business picked up

too much for Rich to also juggle renovations along with running the business.

“We couldn’t do anything but serve customers,” he says.

During 2021, Rich was able to move forward with the store remodel and make plans with his wholesaler to expand his product mix significantly. Paint and plumbing are the store’s top-selling categories, and the store carries the other core hardware categories as well. Nearby lumberyards sell lumber and building materials, but not the hardware product mix Rich offers.

Rich expects to double the number of products his store carries, providing more options in all of his existing categories.

“I dabble in a lot of different types of products but don’t have depth, so we’re looking to add depth to everything I’ve got,” he says. “If we’re not growing, we’re going to get left behind.”

As the only home improvement store in the area, Rusty Nail Hardware serves the needs of customers in Oblong, Illinois.

THE PLACE TO GO

COMMUNITY

Supporting Local Makers

From food items to outdoor equipment, visit hardwareretailing.com/local-goods for insights into how you can support local artisans in your community. CATEGORY

FIND THE NEED

Service Centered

6 IDEAS FOR TAILORING SERVICES TO YOUR COMMUNITY’S NEEDS

Combining your hobbies and the needs of your community into one hyper local service can make your business a key service provider across a wide area. Read on to learn how two retailers have captured their local markets with vital services.

Mark Jackson, who owns Red Oak Hardware Hank in Red Oak, Iowa, found his niche in tennis racket restringing services and a comprehensive tennis equipment department.

Mark and his wife played tennis when they were in school, and at that time, the closest tennis racket services were an hour away. In 1992, they decided to fill the local void and started providing tennis restringing services and selling equipment in their store. Today, the store services about 10 high schools in southwest Iowa, as well as tennis players of all ages in the area. Their services have made an impression on many students.

Red Oak Hardware expanded its tennis equipment and started offering tennis restringing services because there weren’t other options for local players.

“Some former high school players have moved on to collegiate play, and they mail us their rackets to be serviced here,” Mark says.

MOUNTAIN MUST-HAVES

Ace Hardware Big Sky caters to its to local residents, property managers and visitors alike with services that otherwise aren’t available in town.

SEASONAL SERVICES

Propane Services

Talk to your pro customers to find out if they need additional propane during the winter months. You may be surprised at the volume of sales opportunity.

At Ace Hardware Big Sky in Big Sky, Montana, store manager Dan Schlapkohl says they sell more than 800 gallons of propane a week to contractors and masonry workers who need to keep their job sites warm to cure concrete.

The Sky’s the Limit for Services

Christmas Tree Permits

Due to the pandemic, the U.S. Forest Service made tree-cutting permits free, but cutters are still required to get a tag for the trees they cut.

If customers come in to buy holiday decor or tree-cutting equipment, be sure they are up to date on everything they need, even if you don’t issue the permits yourself. Permits can be accessed at Recreation.gov

Carpet Cleaning Rentals

Enhance your rental department by adding carpet cleaning machines to the mix.

Dan at Big Sky Ace says peak rental time for them is during “mud seasons”—spring and fall when the snow is melting or falling before the first big freeze. Be sure your staff is prepared to clean the machines upon return so they are ready to get back out on the floor quickly.

The town of Big Sky, Montana, has about 6,000 full-time residents, but during ski season, the population can swell to as many as 50,000 people. Many of the services Ace Hardware Big Sky offers are focused on local residents and the needs of property managers because the next closest hardware store is almost an hour away. Here are a few other services the store provides. Consider how you could tailor your services to the local needs of your shoppers—whether they are there year-round or just to visit.

Snow plow hand shovel blade replacement.

Because snow plows are an investment, some customers choose to have a new blade put on theirs instead of buying a new one.

Convenience cutting services. At Big Sky Ace, most of their cuts are for items such as convenience lumber, PVC pipe and electrical conduit for DIY projects, and sometimes the products are cut just to fit in the customer’s car. The first cut is free and any additional cuts are $1 each.

OUTREACH

Share Your Stories

Send your merchandising tips, event recaps, employee morale boosters and other stories to editorial@YourNHPA.org CHECKOUTS

Wreaths of Honor

The Wreaths Across America program remembers fallen U.S. veterans, honors active service members and teaches the value of freedom.

EVERY DECEMBER, participants lay donated wreaths on the headstones of veterans. Several hardware retailers have made the program a part of their community outreach.

Brownsboro Hardware & Paint, which has two locations in Louisville, Kentucky, sponsored the program for the first time this year after the local chapter of the Daughters of the American Revolution approached the company’s new owner Doug Carroll.

“Since we have the Zachary Taylor National Cemetery less than a half-mile from one of our locations, we jumped at the chance to help,” Carroll says. “We have always been involved in local, civic and charitable causes, and this is one of the most noble that we have been a part of as a business.”

Wreaths Across America honors military members by laying Christmas wreaths on the graves of U.S. soldiers.

The store matched the first 100 wreaths that customers paid to sponsor.

“We had people walk into the store and sponsor five, 10, 20 and even 100 wreaths, and hundreds more went to our website to sponsor wreaths,” Carroll says. “It was really heartwarming to hear our customers’ stories of friends or family members who served in the military.”

Taylor’s Do it Center, which has six locations in Virginia and North Carolina, also participated in the event, accepting donations in the store and allowing customers to round up their purchases as a donation during the month of November. This was the retailer’s fifth year participating in the event, says Meg Taylor, communications manager.

“Our family has strong military connections and we operate in a community with strong military ties. Like our customers, we deeply recognize the importance of our veterans and the ultimate sacrifice that many have made,” Taylor says. “We will gather to give thanks with friends and family during the holiday season, and for many military families, there will be an empty seat at the table.”

Jeannie Bible, store manager for Big R in Fernley, Nevada, has honored military veterans for many years by placing holiday wreaths on graves at the veterans cemetery in her community. Joining the company as store manager four years ago has allowed her to grow her participation in Wreaths Across America. Under Bible’s leadership, Big R’s Fernley store contributes products to raffle off for an annual fundraiser that helps raise money to pay for wreaths and support veterans with financial needs.

Bible participates as a contestant in the fundraising event, a poker run that involves contestants driving all-terrain vehicles to collect poker cards. Bible contributes all of her poker winnings to the fundraiser.

In addition, she and employees from the store work every year with other volunteers to place thousands of wreaths on the graves of military veterans.

“It’s a great way to give back,” Bible says. “Our cemetery is so beautiful.”

“We had people walk into the store and sponsor five, 10, 20 and even 100 wreaths, and hundreds more went to our website to sponsor wreaths. It was really heartwarming to hear our customers’ stories of friends or family members who served in the military.”

—Doug Carroll, Brownsboro Hardware & Paint

Respect for Old Glory

Eddie Grundy’s family has a legacy of military service, with his father and both grandfathers serving in the U.S. military. To honor that history, he offers a flag exchange service twice a year at his store, Carthage Hardware in Carthage, Missouri.

On the 4th of July and Veterans Day, customers can bring in a U.S. flag that needs to be retired and receive a brand new 3x5 flag with sewn stars and stripes

The store works with the local VFW and Boy Scout troops to honorably and appropriately retire the flags that are exchanged. Carthage Hardware has been a part of the community for 143 years, and Grundy sees the program as another way to connect with the community, show respect for the country and honor veterans.

“My hope is that this spirit of patriotism is contagious. I hope to see U.S. flags flown proudly all over the area and more parents teaching kids why it’s important to respect the flag and honor it when it needs to be retired,” he says. “I hope it leads to families sharing stories of those who have served and protected our country.”

Handcrafted for Kindness

Having a woodworker on staff who makes custom furniture has provided opportunities for generosity at Shapard Lumberyard in Columbia, Tennessee. Owner Terrance Blakesleay has been able to contribute more to causes he cares about by paying for the time and materials craftsman Tim Owens needs to build furniture to donate. Recently, Shapard Lumberyard raffled off a unique, handmade table to raise money for a local organization that provides mentorships for people with disabilities.

Twice a year, Carthage Hardware in Carthage, Missouri, sponsors a flag exchange where customers can bring in an old flag and receive a brand new one, free of charge. The store’s owner, Eddie Grundy, disposes of the old flags properly according to the U.S. Flag Code.

Inside the Box

Fuller & Son Hardware, which operates six locations in Little Rock, Arkansas, added Amazon lockers to three of its stores last spring as another way to serve its customers. Instead of having their Amazon order shipped to their home or business, customers can have it delivered to one of these secure lockers.

“While Amazon could be considered our competition in that we do sell some of the same things, we definitely don’t do the same thing,” says co-owner Jeff Fuller. “We offer that personal connection and willingness to help our customers that Amazon can’t, and the lockers are another way to help our customers. Anything we do that supports our customers and community is a win for us.”

“We offer that personal connection and willingness to help our customers that Amazon can’t, and the lockers are another way to help our customers.”

—Jeff Fuller, Fuller & Son Hardware

Fuller & Son Hardware added Amazon lockers to three of its locations to offer its customers convenience and another helpful service.

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Refined Rewards

For ideas on taking your loyalty program to the next level with exclusive perks and rewards, visit hardwareretailing.com/high-end-perks

RESOURCES

Piecing Together a

Rewards Program

ONE OF THE BEST WAYS to build a faithful customer following is by offering a loyalty program that rewards faithful patrons. The stats speak for themselves. Not all loyalty programs are created equal, so we share four essential elements for a successful program. For additional best practices on launching your own loyalty or rewards program and ideas on other ways to build customer loyalty, turn to Page 22

73 %

79 % of consumers are more likely to recommend companies with good loyalty programs of consumers say a loyalty program makes them more likely to buy from a company

Sources: Bond, 2019 Loyalty Report

Make members feel they’re getting something extra other customers are not. Clearly convey that your rewards program offers exclusive benefits.

Use a tiered system with an easy-to-reach first tier to entice customers to join and keep them motivated to keep spending to earn more rewards.

2 Ease of Use

Consider implementing a rewards website or mobile app that gives customers one easy place to see their points, claim rewards and use their rewards when making purchases.

4 On Brand Content

Any content you share within the program should tell your story, provide value to your customers and relate back to your brand and mission.

BUILDING ON OUR COMMITMENT TO SERVICE

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