Issuu

Serving Hardware, Home Center & Building Material Retailers

DAY ONE

Get New Employees Off to the Right Start 50

VOLUME 210 • ISSUE 1 • JANUARY 2016 • HARDWARERETAILING.COM

Make the Connection: Bring More Plumbing Pros Into Your Store 71

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Stay connected wherever you are. Now Hardware Retailing magazine has a companion. Meet the HR Mobile App, which gives you access to the latest industry news and Hardware Retailing’s online exclusives including photo galleries, videos, quizzes and selling guides. Don’t have time to read while you’re on the run? Save your favorite articles on the app and access them later. Find HR Mobile in Google Play and the Apple App Store, or go to www.hardwareretailing.com/hr-mobile.

VOLUME 210 • ISSUE 1 • JANUARY 2016 • HARDWARERETAILING.COM

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Make the Connection: Bring More Plumbing Pros Into Your Store 71

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VISION

LIFE

JANUARY SPONSOR CALL FOR 2016 NOMINATIONS

Young Retailer Year of the

20th Annual Awards Program Learn more about the program and scholarship opportunities from the National Hardware Show® and Bernzomatic for the NRHA Retail Management Certification Program at www.nrha.org/yroty. Entry deadline is Feb. 26, 2016.

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Serving Hardware, Home Center & Building Material Retailers

DAY ONE

Get New Employees Off to the Right Start 50

VOLUME 210 • ISSUE 1 • JANUARY 2016 • HARDWARERETAILING.COM

Make the Connection: Bring More Plumbing Pros Into Your Store 71

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Next Month

What Makes a Leader?

ow can you develop your most promising employees into effective leaders? In our next issue, we’ll talk with several up-and-coming leaders in the industry about their career paths. We will also chat with a few retailers who offer their own management-in-training programs and share some ideas for how you, too, can develop potential leaders for your operation.

Next, we will look at how different retailers go to markets and learn from their strategies on preparing for buying shows, making the most of their time on the floor and then wrapping up back home. Finally, we talk with retailers who are trying out new ideas in housewares and using the category to turn their stores into shopping destinations.

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January 2016 | HARDWARE RETAILING

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Headquarters Staff

PUBLISHING PUBLISHER, VICE PRESIDENT OF PUBLISHING Dan Tratensek

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

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton ASSOCIATE EDITOR Liz Lichtenberger ASSISTANT EDITOR Renee Changnon ASSISTANT EDITOR Kate Klein

HEADQUARTERS STAFF

LEAD GRAPHIC DESIGNER Lynnea Verville

PRESIDENT AND CEO Bill Lee

GRAPHIC DESIGNER Graeme Haase

CONTROLLER David Gowan

EDUCATION DIRECTOR OF MEMBER SERVICES Allison DeWitt, 317-275-9414, adewitt@nrha.org TRAINING MANAGER Jesse Carleton, 317-275-9418, jcarleton@nrha.org MEMBER SERVICES AND COMMUNICATIONS COORDINATOR Hilary Welter, 317-275-9435, hwelter@nrha.org MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9435, kstokes@nrha.org

RETAIL LEADERSHIP INSTITUTE EXECUTIVE DIRECTOR-RETAIL LEADERSHIP INSTITUTE Scott Wright, 317-275-9430, swright@nrha.org DIRECTOR OF RETAIL OUTREACH Tom Marcum, 317-275-9430, tmarcum@nrha.org

PRODUCTION SERVICES PRODUCTION MANAGER Nancy A. Vondersaar SALES & PRODUCTION ASSISTANT Freda Creech

CIRCULATION CIRCULATION DIRECTOR Richard Jarrett

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

VENDOR INTEGRATION MANAGER Marci Taschler, 317-275-9421, mtaschler@nrha.org

VICE PRESIDENT OF SALES Bob Cutter

NRHA CANADA

NATIONAL SALES MANAGER Lowell Huffman

NRHA CANADA Michael McLarney, 360 Dupont St., Toronto, Ontario, Canada M5R 1V9; 416-489-3396, mike@hardlines.ca

MIDWEST REGION MANAGER Tony Sarantakis, 404 Afton Circle, Barrington, Ill. 60010; 847-934-9515, Fax: 847-934-2494, tonytakis@aol.com

STATE AND REGIONAL ASSOCIATIONS

WEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, Ill. 60559; 630-234-3272, Fax: 847-934-2494, cmiller7288@gmail.com

MICHIGAN RETAIL HARDWARE ASSOCIATION Patrick Harrington, 4414 S. Pennsylvania Ave., Lansing, MI 48910; 517-394-1710; FAX 517-394-6754

NORTHEST REGION MANAGER Brian Ziff, 17 Cutler Knoll, Watertown, Conn. 06795; 203-509-0125, Fax: 317-275-9406, bziff@nrha.org

MIDWEST HARDWARE ASSOCIATION John Haka, 2301 Country Club Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; FAX 715-341-4080

GREAT LAKES REGION MANAGER Brad Lyons, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9424, Fax: 317-275-9403, blyons@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, Ind. 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner 500 Queens Quay W., #101 W. Toronto, ON M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@ yorkmedia.net

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 6325 Digital Way #300, Indianapolis, Ind. 46278. 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. 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. All editorial contents copyrighted 2016 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 | January 2016

FEATURED NRHA BOARD MEMBER

MARKET RESEARCH ANALYST Sara Logel

SALES

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; Ark., Kan., La., Mo., Neb., N.M., Texas

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.

WEB DEVELOPER Kevin Trehan

NRHA VENDOR PARTNER

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; Alaska, Idaho, Ore., Wash.

NRHA MISSION

“I’ve witnessed the

incredible amount of effort the association team takes to become more relevant for independent retailers.

”

TIM BUCHHEIT DIRECTOR

Tim Buchheit, president and CEO of Buchheit Enterprises in Perryville, Missouri, was elected to the Board of the North American Retail Hardware Association (NRHA) in 2013. Buchheit is a third-generation operator who has been involved in the family business for most of his life. WHAT HAVE YOU LEARNED OR GAINED AS A BOARD MEMBER FOR NRHA? I’ve personally witnessed a tremendous amount of positive changes in a lot of areas, including product training, management training and the association’s overall communication. It’s all grown under Bill Lee’s (NRHA president and CEO) leadership. He’s out personally visiting retailers, which is great to see.

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Contents JANUARY 2016 | VOLUME 210 | ISSUE 1

Features

50 EMPLOYEE MANAGEMENT Finders Keepers

Employees are the face of your business, and you need to recruit the right candidates and train them well. In this story package, you’ll learn about the best ways to recruit and retain high-quality employees. Plus, be sure to go online to find new training resources from Hardware Retailing and the North American Retail Hardware Association (NRHA). You’ll also find blog posts about Hardware Retailing staffer Graeme Haase’s training as a home center new hire.

71 CATEGORY SPOTLIGHT Making the Connection

From stocking a breadth of products to offering fast, friendly service, you have plenty you can do to make your store a one-stop shop for professional plumbing contractors. Hardware Retailing editors asked professional plumbers what they want from their suppliers and followed up with retailers for advice on providing those pros with top-notch service.

50 Departments 04 10 12 16 22 28 40 80 86

On the Web Independent Thinking Taking Care of Business NRHA News Trends New Products Checkouts Newsmakers/Calendar The Last Word

On the Cover

47 6

HARDWARE RETAILING | January 2016

Hardware Retailing staffer Graeme Haase works with Bill Dillow, manager of Cardwell Do it Best Home Center in Indianapolis NRHA photo by Lynnea Verville.

The New Crescent Pass-Thru™ Adjustable Wrench Set

Get Three Tools In One ■ A Precision Adjustable Wrench

The ultimate multi-purpose tool ■ A Tight-gripping Pipe Wrench

Reverse the jaw for extreme turning power ■ A Pass-Thru™ Ratchet with 10 Sockets

Fits Hex, Square, 12-Point, E-Torx®, Partially Rounded Hex, and Spline … in both SAE and metric sizes www.CrescentTool.com

More Innovation from Crescent Tools Crescent® Quick-Convert Nutdrivers.

Speed when you want it. Torque when you need it.

Switch from standard to T-handle… just pull the shaft, rotate the handle, and push to lock. www.CrescentTool.com

hardwareretailing.com

OPERATIONAL TIPS

CATEGORY FOCUS

Employee Training Materials

Attract and Retain the Professional Plumber

Now that you’ve learned how to best recruit and retain quality employees (“Finders Keepers,” page 50), you’ll want to ensure you are training your newest team members for lasting success. This helpful package provides a wealth of training knowledge, including a firsthand account from a trainee, a helpful downloadable guide for trainers, a new training resource that you can use during employee meetings and much more. Train the Trainer If you or one of your other staff members is the primary trainer for your operation, you’ll want to be able to provide them with all the tips for how to set up and maintain a successful training program. This downloadable PDF booklet has all the information you’ll need to get started or refresh your program, including tips on how to put together your training program, training new and veteran employees, and different training resources offered by the North American Retail Hardware Association (NRHA). nrha.org/FreeTraining. Trainer’s Toolbox The Trainer’s Toolbox series is offered to retailers as an ongoing training resource for their employees. Lessons will be available in video, PowerPoint, worksheet and other forms and include topics such as creating endcaps, perfecting your add-on selling skills, making a good first impression on customers and more. These lessons are the perfect complement to your regular employee meetings. Four lessons will be published and available to download on the first Monday of each month at nrha.org/FreeTraining.

If you have professional plumbing customers or are looking to grow this customer base, it’s important to deliver what these pros want. This helpful guide provides tips on how to connect with professionals and discover what they’re looking for in a supplier, and provides examples of how you can make them regular customers at your store. Download this guide at TheRedT.com/1HVfLSe.

SOCIAL MEDIA

Mr. Oswald Thanks to Mr. Oswald’s popularity, we are digging out previously run comic strips from his beloved series. Find them weekly on Facebook.

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing Hardware Retailing Magazine Hardware Retailing

Website links can get long and wordy, so Hardware Retailing is making it easier to find our online content. Simply type in TheRedT.com/ followed by the unique code for each link. Why “The Red T?” Check out our logo!

HARDWARE RETAILING | January 2016

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Independent Thinking

Because Yogi Says So…

ogi Berra was quite the sage. The things he said were funny and wise. And, some made me think about our industry.

“You can observe a lot, just by watching.” Here we are at the beginning of another year. It’s a great time to look back and look forward. I spent a lot of time in 2015 at your stores and industry events. As I watched, I observed a few things about our industry I’d like to share.

“The future ain’t what it used to be.” Change just keeps coming. Big boxes, online competitors and advances in technology all change the expectations of our customers. Our industry’s structures change, and consolidation continues. Our local markets change, employers leave town and traffic patterns shift. Great employees leave us, or our kids decide not to stay in the business. These are changes that happen to us. We have to respond with change that we control. Tomorrow will be different, but change will bring us opportunity.

“Make 2016 an

intentional year. Take control and begin moving toward the future you want.

”

“You’ve got to be very careful if you don’t know where you are going, because you might not get there.” One thing I observed about some retailers is the need to be more “intentional” about their businesses. We’re so tied to the day to day that we hardly catch some of the changes going on around us or think about where we’re headed. Talk with your family, key managers, financial adviser and accountant about where you want to go. Come to an agreement about a plan for your future. Perhaps you want to grow your existing location, add a new one or get ready to retire. Without intentional thinking, you’re just reacting and drifting. Know where you’re going. Late last year, I spent time with a group of about 50 retailers. I asked them who planned to retire someday. Everyone raised their hands. But, in an earlier survey of the group, only about 35 percent had a succession plan in place. If your future is retirement, it will take a lot of intentional thinking to do it well.

“It’s tough to make predictions, especially about the future.” We can’t see what the future holds. Sometimes we believe that the future we can’t see makes it impossible to plan and circumstances will overrun our best intentions. Change will happen and cause us to rethink our plans. But, good planning is flexible. It motivates and moves us toward our long-term goals. And, one last bit of closing piece of advice from Yogi…

“When you arrive at the fork in the road, take it.” So, here we are. It’s January, another fork in the road. Make 2016 an intentional year. Take control and begin moving toward the future you want. All the best for a happy, productive and prosperous New Year!

Bill Lee, President and CEO

blee@nrha.org

HARDWARE RETAILING | January 2016

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Taking Care of Business

My (Not So) Storied Retail Career

“There was

something quite gratifying about being given all the tools you needed to not just help a customer, but to make them happy.

”

here are a number of reasons I don’t often speak of my career in retail. On one hand, I was a retail regular nearly three decades ago. Secondly, and more importantly, I avoid discussing my time in retail because I work in an industry that is populated by seasoned veterans. In these surroundings, reminiscing about my time spent on the salesfloor would be kind of like someone comparing their time in high school ROTC to a Navy SEAL. With that being said, here is my entire retail CV: My first job was with Toys“R”Us. Then, I spent just over a year at Sportmart. Lastly, I worked for about a year with an upstart copy shop called Kinko’s. With a combined four years of part-time retail experience under my belt, I am hardly a grizzled veteran of the retail industry. However, I picked up a few things while I was working for this disparate collection of retail entities. Most notably, I remember how intimidating it was to be thrust into an environment where you were supposed to know how to do your job as well as how to help customers, find products, know prices and not get seriously hurt. I also remember the training procedures each of these companies had new hires go through. At Toys“R”Us and Sportmart, the onboarding process was relatively similar. You’d fill out paperwork. Then the training mostly focused on operations and procedural knowledge. “You clock in here.” “You get two 10-minute breaks and a 30-minute lunch.” “Smile.” “Don’t let any employees fall into the compactor.” That was pretty much it. At Kinko’s, the process for new employees was much different. All new hires spent a week training off-site before they set foot in a live retail environment. During training, we focused on operations and procedures, but we also spent time learning how to run machines and interact with customers. Throughout the process, there was something else being driven into all of our heads—your job is to make the customer happy. This mantra was repeated again and again to us. If this meant giving a customer their order for free—do it. If it meant reaching into the register to hand the customer a $10 bill for their troubles—do it. In fact, they made it very clear that every Kinko’s employee was empowered to make any decision (up to $50) that was needed to make a customer happy. Of my three retail jobs, I enjoyed my time at Kinko’s the most. There was something quite gratifying about being given all the tools you needed to not just help a customer, but to make them happy. In this issue of Hardware Retailing, we dedicate a great deal of space to employee training. We made a number of resources available online to help in this process. And this year, we plan to release even more training materials and guides for you to use. We are doing this because we know how important it is to have a motivated and confident team of employees. While my retail experiences were limited, I remember how it felt as a new retail employee and how better prepared I felt after training for Kinko’s. On the bright side, at none of the jobs was anyone accidentally compacted.

Dan M. Tratensek, Publisher

dant@nrha.org

HARDWARE RETAILING | January 2016

We’re shopping for FUTURE LEADERS American Express is proud to join the National Retail Federation Foundation in the search for the next generation of retail leaders. By sponsoring the Executive Mentor Experience at Retail’s BIG Show Student Program, we’re helping tomorrow’s leaders gain invaluable insights for a smoother transition into the workforce.

NRHA News

NRHA Advocates for Independent Retailers at First-Ever State of Independents Conference

etailers, distributors and manufacturers gathered in December for NRHA’s first State of Independents Conference, which was sponsored by the National Hardware Show®. The purpose of the conference was to provide the industry with a holistic overview of the performance and direction of the independent home improvement market. Part of NRHA’s mission is to advocate for independent retailers, so along with providing an industry overview, NRHA shared

information gathered from retailers about their relationships with distributors and manufacturers. These findings and other topics helped attendees expand their understanding of independent retailers and how channel partners can better promote their growth. Retailer panelists talked with manufacturers and distributors about their experiences and the NRHA research. Look for complete coverage of the event in our February issue.

Why are events like the State of Independents Conference important to independent retailers in our industry? “This event is really important because manufacturers and distributors are hearing directly from retailers. They are getting honest feedback from retailers on how it really is.” —Dave Umber, Umber’s Do it Best Hardware

As a manufacturer, what was your biggest takeaway from the State of Independents Conference? “It has been hearing from retailers about their challenges and growth opportunities. It’s so important to hear about the industry, but the one-on-one time I’ve had with retailers has been so beneficial. I have so many takeaways from today.” —Roger Phelps, STIHL

What are your overall thoughts on the first State of Independents Conference? “What better way to reflect on the year and get fired up for 2016 than getting together with NRHA, market experts and retailers to understand that independent retailing is a growing and sustainable business model?” —Jackie Recchia, True Value

HARDWARE RETAILING | January 2016

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NRHA News

Bernzomatic Offering Two Scholarships for Fall 2016 NRHA Retail Management Class

orthington Cylinders, parent company of Bernzomatic, recently launched a campaign to sponsor four scholarships for NRHA’s Retail Management Certification Program (RMCP) in 2016. The Bernzomatic Find Your Fire Retail Management Certification Program Scholarship campaign launched in December to provide deserving employees or owners working at independent home improvement retail stores with scholarships to attend the RMCP program. RMCP is a comprehensive six-month, college-level, industry-focused leadership and management development program designed specifically for independent hardware stores, home centers and lumberyards. Two of the scholarships have already been given to two students who will attend the spring 2016 RMCP class that starts in February. The remaining two scholarships will be awarded to students applying for the fall 2016 class that starts next September. Each scholarship is valued at $6,250 and will cover 50 percent of the program’s tuition.

“So many independent hardware retailers have a passion for their work and their communities, and we want to help keep that fire burning bright,” says Mike Verne, general manager of consumer products for Worthington Industries. “We’re pleased to offer the Find Your Fire RMCP Scholarship to help fuel independent hardware retailers’ entrepreneurial spirit and business growth aspirations.” To apply for the Bernzomatic Find Your Fire Retail Management Certification Program Scholarship, visit nrharmcp.com/Scholarships/FindYourFire and fill out the application form. The application deadline for the scholarship is Jan. 15. “We’re delighted that Bernzomatic is supporting independent retailers by providing these scholarships,” says Scott Wright, executive director of NRHA’s Retail Leadership Institute. “It shows their dedication to independent retailers and a commitment to help ensure the vitality and future of our industry.” For more information about the NRHA Retail Management Certification Program, contact Wright at 317-275-9417 or swright@nrha.org.

You’ve Asked; We’ve Answered Is an employer required to make a certain contribution on behalf of their employees to their medical plan?

avigating health insurance options can be difficult, and with the New Year upon is, now is the time to assess your operation’s health insurance offerings. To help get all your questions answered, NRHA spoke with Bob Chiesa, president and CEO of Custom Benefits Insurance Group, Inc. In a video created to help you in your decision making, Chiesa discusses many frequently asked questions from independent retailers. To the right is an example of just one of the many questions Chiesa answers. Watch the video at TheRedT.com/1OkpBcX.

HARDWARE RETAILING | January 2016

“For groups of 100 or more with the employer mandate—a part of health care reform—that is required, where you cannot charge the employees more than 9.5 percent of, at lowest cost, an ACA-compliant plan. While that applies to the 100-plus market, it does not apply to smaller groups. For it to be an employer plan, an employer needs to contribute to the cost of the plan but isn’t restricted by that 9.5 percent like the larger companies. Therefore, the smaller stores don’t have a mandatory contribution level. They could offer to pay half of the single rate or they could offer to pay one-third of the single rate and there are no requirements that they have to cover the family. Many stores are offering to cover a percentage of the employee’s rate, but if they want to cover the spouse, the children or the family, that cost may have to be picked up entirely by the employee.” —Bob Chiesa, president and CEO of Custom Benefits Insurance Group, Inc.

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NRHA News

NRHA Gains Worldwide Inspiration

epresentatives of global home improvement trade associations recently met in Paris to talk about the markets in their countries and ideas for serving retailers. NRHA president and CEO Bill Lee, NRHA board chairman Adam Busscher and past NRHA board chairman Gary Copeland represented the U.S. and Canada at the event, which is the biennial International Federation of Hardware & Housewares Association (IHA) Congress. Lee gave a state of the industry report for the U.S. to the IHA. The event allows industry leaders to network and learn from each other, Lee says. In the past, NRHA took inspiration from the British hardware association to start its Retail Management Certification Program for high-potential retailers and managers. The French hardware association, FFQ, hosted the 2015 IHA event, which was held during BATIMAT, a hardware and construction show in Paris. While the association representatives were in France, they toured French home improvement retail operations. “It was a very interesting experience,” Lee says. “The biggest takeaways for me were renewing friendships and relationships with these associations from around the world and being able to learn and share what these companies are doing and how different the markets are.”

While in Paris for an IHA Congress, NRHA president and CEO Bill Lee visited French home improvement stores.

DELIVERING THE BEST QUALITY Customers praise the ease of handling and durability of the Brave line-up. From hot or cold pressure washers to log spliters, earth augers and trenchers, Brave stands ready to take on any job!

braveproducts.com/HRM (866) 281-4421 EARTH AUGERS 20

HARDWARE RETAILING | January 2016

LOG SPLITTERS

TRENCHER

Training Is a Top Priority for Arizona Retailer

hen HomCo Lumber & Hardware welcomes a new staff member to its team, the company makes training a top priority. The Flagstaff, Arizona, business has developed its own training program that new hires must complete, no matter what their positions are. “It is a full day of training. They learn company policies, review and understand our core values, learn about deliveries and how the retail floor works and get cashiering experience,” Erin Konefal, company training supervisor, says. “To have a retail floor that is run smoothly, you need to have everyone trained in all departments and areas.” All new hires receive cashier training, are cross-department trained and trained on the telephone and take NRHA’s training courses, Konefal says. In addition, new and existing employees can all participate in monthly training, which is not required but is fun for the staff.

“We try to have fun with it,” she says. “Last month, we had an NRHA training competition. The first department to finish was going to get a pizza with our COO.” Formerly a teacher, Konefal sees ongoing training as crucial for employee development. “Everyone can always learn more and know more,” she says. “Training is a guiding force for the store. It really does help us see where our weak points are and find ways to improve them.” HomCo uses NRHA training resources, such as the classes Our Three Pennies of Profit, Basic Training in Hardware Retailing and Basic Training in Building Materials Retailing, Konefal says. “I find NRHA’s training to be very beneficial because it gives a basic understanding of profits for the store and loss prevention and a quick overview of items that we carry,” she says. To learn more about NRHA’s training resources, visit NRHA.org or contact Member Services at 800-772-4424 or email nrha@nrha.org.

“Training is a guiding force for the store. It really does help us see where our weak points are and find ways to improve them.” —Erin Konefal, training supervisor at HomCo Lumber & Hardware

Red Lion Premium Shallow Well Jet Pumps can pump up your sales volume by offering increased starting torque and more pumping power to meet your customers’ needs. Make us your partner for reliable performance and on-the-spot training for cleanwater and wastewater products.

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January 2016 | HARDWARE RETAILING

Trends How Can Your Employees Win in Customer Service? An independent home improvement store’s success is dependent on its employees, who can differentiate a local business from the big boxes with the excellent customer service they provide. However, customer service is an increasing focus for the big boxes, and they’re getting better at it. Since 2008, The Home Depot has put in place an interconnected retail initiative and in fiscal 2014 achieved its target of dedicating 60 percent of store labor hours to “customerfacing” activities, according to Market Realist. To combat the big boxes’ improving customer service, independent retailers must hire top-notch employees and train them to be knowledgeable resources. A focus on training will not only polish a store’s customer service but will also increase store sales. The following data is from NRHA’s 2014 Employee Compensation Report and shows the percentage of independent home improvement retailers who have formal employee training programs. Other data comes from Experticity, a company that focuses on improving retail conversations through education and product experience. The Experticity numbers show the impact training can have on sales performance.

Applied to Retail: To combat customers’ growing satisfaction with the big boxes and online retailers, you need to implement a wellrounded training program in your store. On page 50, you will find a variety of tools that address hiring and retaining top-notch employees. Additional resources are available online, including an evaluation form, online training tools and a step-by-step guide for setting up a training program in your store. Visit TheRedT.com/1XWVF10 to read the story and find a complete list of links to these online resources.

Do You Have a Formal Employee Training Program? Yes . . . . . . . . . . .40.3% No . . . . . . . . . . .59.7%

Source: 2014 Employee Compensation Report, North American Retail Hardware Association

Engaged Vs. Not Engaged Employees 150%

Sales Increase

120%

90%

69%

123%

Employees who completed just one training module sold 69 percent more than those who completed no training modules.

60%

30%

Number of Completed Training Modules Source: Does Expertise Matter in Stores? infographic, Experticity

HARDWARE RETAILING | January 2016

H A R DW A R E C O M P A NY

House-Hasson is America’s Largest Regional Distributor

Hardware Har w Celebration

DEALER DEAL D MARKET M

Celebrating 110 Years in Business!

January 21-23rd, 2016 • Oprylandd CConvention Center • Nashville, TN

Call David Helfenberger at 865-525-0471 ext. 203 or go to www.househasson.com

Trends

The Road to Recovery There were 100,000 more houses started in the third quarter of 2015 than in the same period in 2014. About 400,000 more houses were sold. These two factors, coupled with an average $11,000 increase in existing-home prices, shows that the housing market continues to improve and the future of remodeling is strong, as it is easier to sell homes and gain equity. Consumer confidence also grew in the third quarter, nearing the 100-point mark.

Existing-Home Sales (in millions)

The third quarter of 2015 was strong for housing, continuing the overall positive trend for the year.

Total Existing-Home Sales 6.0

In contrast, the Purchasing Managers’ Index decreased between third-quarter 2014 and 2015. The number remained above 50, which means the manufacturing sector is expanding, but is not growing as rapidly as in prior months.

5.5

5.0

4.5

4.0

2014

D J

2015

Months

All-Around Growth in the Housing Market ECONOMIC METRICS

DEFINITION

Housing Starts (in thousands)1

The 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

Number of completed sales involving existing single-family homes (single family, townhomes, condos and co-ops) at an adjusted annual rate.

Existing-Home Price (in thousands)3

The median price 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.

PERCENT CHANGE

12.1% 1,153

90.9 98.3

8.1%

5.1

6.9% 5.5

$217 $228

57.7 51.3

Source: U.S. Census Bureau 1, The Conference Board 2, National Association of Realtors 3, Institute for Supply Management 4 HARDWARE RETAILING | January 2016

Q3 2015

1,029

Numbers derived from the average of July, August and September data.

Q3 2014

4.9%

-10.8%

2015

“Life really is all about the nuts and bolts! We are proud of our new line up of fasteners from our new supplier. The mix of products has been strengthened and the presentation of the merchandise makes it easy for our associates and customers to navigate. Our customers and associates asked for more and boy did they get it; we more than doubled our selection of stainless, metric, chrome of all kinds of nuts and bolts... and we did this in the same amount of space.” -Wendy Adrian, Hardware Merchandise Manager, Orchard Supply Hardware -Pictured Mark Gudala, Assistant Manager; Orchard Supply North Beach, San Francisco, CA

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

800.444.7313

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New Products

“For Tea’s Sake is a very new product line for us. The eye-catching display and vivid packaging is sure to stir interest.

”

—Patti Christie, Hood’s Do it Best and Gifts

“Less than a year and

500 jars of pickles later, Tru Pickles were a great addition to our product mix!

”

—Patti Christie, Hood’s Do it Best and Gifts

1. TEA AND ACCESSORIES

2. PACKAGED PICKLES

For Tea’s Sake is a brand of tea and tea accessories from Giftcraft. These products offer retailers the opportunity to stock a wide selection of custom gourmet tea blends. The product line provides retailers with several merchandising programs. These programs include a wide array of teas and tea accessories to showcase on a variety of different floor and shelf display options.

Tru Pickles are jarred pickles available in four different flavors. All varieties of the pickles are all natural; they have no fat, no gluten, no artificial flavors, no colors or emulsifiers, and they are freshly packed. Tru Pickles come with a free wood display rack for easy merchandising. Since Tru Pickles are not available in big-box chains and most grocery stores, customers return to your store for more. Tru Pickles price points are also higher than most other consumables in stores—the gross profit can be $3 per jar. Flavors include the Original Kosher Dills, All Natural Bread & Butters, Smoked Black Pepper Pickles and True Dill Heat Pickles.

GIFTCRAFT INC. 877-387-4888 or www.giftcraft.com

TRU PICKLES 720-536-3600 or www.trupickles.com

HARDWARE RETAILING | January 2016

Retailer Picks The products featured on Pages 28-29 are selected by retailers like you. Share your favorite products by contacting Renee Changnon at rchangnon@nrha.org.

“For home safety as well as convenience, the Ring Video Doorbell puts your eyes and voice at home.

”

—Ian Williams, Fresno Ag Hardware

3 “We love unique products

like the Pocket Monkey, and so do our customers. We place them near the register so that everyone sees them as they check out.

”

—Andrea Ridout, Gecko Hardware

3. HANDHELD MULTI-TOOL

4. APP CONNECTED VIDEO DOORBELL

The PocketMonkey® is a card-sized tool that is convenient and TSA-compliant. The Wallet Utility Tool™ is 12 tools packed into 1 millimeter of stainless steel. It includes: a bottle opener, a flat screwdriver, a Philips screwdriver, a micro screwdriver, a phone kickstand, a bottle opener, a letter opener, a door latch slip, hex wrenches, a ruler, a straight edge, an orange peeler and a banana nicker. It’s available in a deluxe or basic style. PocketMonkey Basic has the text stamped in; PocketMonkey Deluxe has the text laser-etched in black.

The Ring™ Video Doorbell lets users answer the door from anywhere using a smartphone app. The doorbell features an HD camera with night vision, providing a clear view day and night. The doorbell installs in minutes without additional tools. It has a built-in, rechargeable battery to let users install it anywhere, or connect it to existing doorbell wiring. It acts as a security solution as well. Built-in motion sensors can detect movement as someone approaches the door, triggering instant mobile alerts and initiating HD video recording. Users can download the free Ring iOS or Android app to see who’s at the door anywhere.

ZOOTILITY TOOLS 207-536-0639 or www.zootilitytools.com

RING 800-656-1918 or www.ring.com

January 2016 | HARDWARE RETAILING

New Products Product Trend

A NEW-YEAR-INSPIRED KITCHEN When the holiday season wraps up, consumers are ready to shop for the New Year. New Year's resolutions will be on your customers’ minds this month. For many people, this means weight loss goals and healthy eating. To help health-conscious customers stay on track, there are a variety of products you can promote and sell. Items like a digital kitchen scale, storage containers, measuring cups, tea kettles and slow cookers are all things your customers can use to improve their eating habits. With technology incorporated into many of these items and more unique utensils available to cook with, your customers may upgrade all of the products stored in their kitchen cabinets. Create a display with some of the products mentioned above. Include decorative housewares pieces, like aprons, wooden spoons and even small appliances to complete the look. To add interest, share a photo of your healthy display on social media and offer a raffle where customers can win specific items from the assortment.

You’ve all talked to the customer who has a beautiful piece of old furniture. Perfect for restoration but it’s been painted, and poorly at that. BLUE BEAR® Paint & Urethane Stripper safely and effectively removes multiple layers of coatings in one application. No need for sanding the fine millwork; the gelled formulation removes paint from hard to reach places with ease. The stripper removes latex, enamel, urethanes, as well as two part epoxies. Made with soybeans, BLUE BEAR Paint & Urethane Stripper is low odor, non-caustic, and contains no hazardous chemicals.

Call us today! 800.538.5069 Or visit us online: www.franmar.com Become a dealer today!

HARDWARE RETAILING | January 2016

Made in the USA

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New Products How-to Sell

PREVENT AND FIX FROZEN PIPES As temperatures drop to freezing, there’s an increased likelihood your customers will have trouble with freezing water pipes. There are several products in your store that can prevent and fix frozen pipes, and now’s a good time to review them with your employees. To prevent frozen pipes, encourage customers to insulate pipes that run along an outside wall. Remind them to use products like caulk and expanding foam insulation to close up gaps in walls or along the foundation. Suggest a freeze cap to prevent outdoor faucets from freezing. Heating tapes can also prevent freeze in areas that get cold quickly. Suggest customers keep the thermostat set to a minimum of 55 degrees (even if they plan to be away for an extended period). Remind them to keep doors open so heat can evenly flow to all rooms. This will help warm pipes behind the walls. If a pipe freezes, discourage customers from using a propane torch directly on the pipe to thaw it. Instead, suggest something else to warm the area, such as a heat lamp or hair dryer. These methods are safer, even through they take more time. Remind the customer always to open the faucets before starting to thaw a pipe.

} WORST STUMPS

ENEMY

• Narrow width for ease of transport through narrow paths and gates

• Unique side discharge frame keeps cuttings away from the machine while grinding

DOSKO.COM/HRM | (866) 418-0474 January 2016 | HARDWARE RETAILING

New Products

6 NEW 9-INCH SERRATED FLEX FILLET

DEALER BENEFITS!

• Dealer direct pricing • TV ads and product sponsorship on popular outdoor channels and àTIJOH BOE IVOUJOH TIPXT • :PV5VCF DIBOOFM XJUI PWFS WJFXT FBDI XFFL • *O TUPSF NBSLFUJOH NBUFSJBMT • Online and Toll-Free dealer TFSWJDF BOE TVQQPSU

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HARDWARE RETAILING | January 2016

5. RETRACTABLE SCREEN DOOR Sponsored Product ODL, Inc. has designed a new retractable screen door. It can be installed with in-swing, out-swing and sliding doors. The outer-face mount design optimizes door width and provides a full, unobstructed view to the outdoors. It takes 30 minutes to install from start to finish. ODL’s exclusive Quick-Snap track eliminates the need for cutting since the aluminum track snaps into the screen housing and adjusts to match the width of the door. It has an ergonomic design for one-handed operation and a small locking latch for security. ODL, INC. 866-635-4968 or www.odl.com

6. FLEXIBLE SPRAY PRODUCT The new WD-40 EZ-Reach™ features an attached, 8-inch flexible straw that bends and keeps its shape. It allows users to get around corners and crevices to deliver product where it’s needed. The formula drives out moisture, protects metal surfaces, frees sticky mechanisms, removes grease, grime wand gunk and can be used as a lubricant. WD-40 COMPANY 888-324-7596 or www.wd40.com/ez

Visit the Clean + Contain Expo to find more than 400 exhibitors offering the latest cleaning & organization solutions, closet & clothes care, bath accessories and unique pet-care items.

+ 2,100 exhibitors from 6 continents + 62,000 attendees from over 125 countries high-design and intelligent + where innovation are on display education and + world-class benchmarking opportunities

march 5-8 chicago, USA

www.housewares.org

New Products

7. LITHIUM-ION BATTERY

8. ORGANIC SCRUB CLOTHS

The SENCO 18-Volt 3.0 Ah Lithium Ion battery is a battery designed for the company’s cordless tool lines, DuraSpin and Fusion. The 3.0 Ah battery delivers up to 1,400 drives per charge, 100 percent more than the 1.5 Ah battery and it comes with the same built-in fuel gauge for an easy check of the remaining charge.

The Toockies® 3 Scrub Cloths are hand-knit, organic cotton dish cloths that are ribbed for deep scrubbing without scratching any surface, whether smooth, soft or textured. The pattern is perfect for scrubbing stainless-steel appliance and glass stove tops, countertops and dishes. The cloths are biodegradable and contain no chemical dyes and no chemical fibers. They are more hygienic than sponges because they are machine-washable and dry to refresh.

SENCO 513-388-2000 or www.senco.com

SINKO CORP. 408-371-3007 or www.toockies.com

What’s more dependable than D-L® products? …Our commitment to helping you increase proﬁts!

D-L Brake Winches

Ag-Industrial Jacks

For outstanding value and performance, dependable D-L products can’t be beat. We don’t stop here. Dutton-Lainson Company has sales and merchandising programs to increase proﬁts – including competitive pricing, attractive margins, smart packaging and more. Contact us today for your FREE catalog!

Dutton-Lainson Company SINCE 1886

Hastings, NE 68902-0729 402-462-4141 Fax: 402-460-4612 www.dutton-lainson.com Fuel Tank Filters

Dependable Products for Over a Century 34

HARDWARE RETAILING | January 2016

This show season things have Changed you should too... Controls ✓ Over 400 Sku’s ✓ Synthetic and

organic oferings

✓ Color coded packaging

Grass Seed

✓ Over 30 Sku’s

✓ .75, 3lb, 7lb and 20lb sizes ✓ Displays and end cap

programs

Lawn Care ✓ Over 50 Sku’s ✓ 5M and 15M sizes ✓ Unique displays

& promotions

•On-shelf touchscreen computer problem solver •Local sales staf in your area •Strong promotional programs •Consumer rebate programs •Circular programs •National advertising •Family owned for 90 years

New Products

10 9. ALUMINUM ROLLING PIN The Aluminum Rolling Pin from KMN Home is made from anodized aluminum, so it stays cool after being chilled. The rolling pin is great for rolling dough. It has laserengraved graduated measurements in both inches and millimeters to ensure a perfect size crust. The rolling pin has a slick, non-stick surface. The product is available in blue, red, slate or black. KMN HOME 888-276-5979 or www.kmnhome.com

10. SNOW BRUSH AND SCRAPER The Telescoping Scratch-Free Snow Brush and scraper is a new product that features a telescoping, elliptical aluminum handle that extends from 36 inches to 52 inches, perfect for cleaning snow off SUVs and all types of vehicles. It features a large push button and a 180-degree swivel head to remove snow using a push and pull motion. The wrap-around head design allows users to remove snow in smaller and tough-to-reach areas, especially around mirrors and wipers. This tool also features a cold-resistant, polycarbonate scraper for added strength in winter. THE AMES COMPANIES, INC. 800-393-1846 or www.true-temper.com

HARDWARE RETAILING | January 2016

11 11. PAINT ADDITIVE The Latex Agent Oil Bond helps latex adhere to oil-based surfaces without requiring sanding or priming. If your customers are repainting woodwork, furniture or cabinets, suggest Oil Bond latex paint additive. Oil Bond makes it easy to repaint over oil, polyurethane or glossy surfaces in a fraction of the time and without the mess from sanding. A quart bottle treats two gallons of latex paint. CROWN PAINT SOLVENTS 832-300-4083 or www.latexagent.com

12. MATTRESS VACUUM The Dyson V6 Mattress vacuum is a handheld device to deep-clean mattresses and other areas of the home. The powerful motorized brush bar pivots to maintain constant contact across the mattress. Its stiff nylon bristles agitate the mattress fibers, dislodging dust mites, allergens and dirt so they can be drawn up by the powerful suction. It has a hygienic bin, so users release dirt directly into the trash. The vacuum weighs 3.6 pounds and comes with a mini soft dusting brush, a combination accessory tool and crevice tool. DYSON 312-237-3972 or www.dyson.com

January 2016 | HARDWARE RETAILING

New Products

13 14

13. BBQ GRILL ISLAND

14. DIGITAL LOCATOR

15. PORTABLE TABLE BASE

The Classic 411 BBQ Grill Island with side burner and fridge gives grill enthusiasts everything they need while grilling. The Classic 411 model provides the power and quality found in the Classic 401 model, but with an added cast brass side burner to increase output to 78,000 BTU. It also has a refrigerator to keep food and drinks cold. The 80-inch island can be easily assembled. Bonfire Production Corp. has four different island grills to choose from and all models include the Easy Self Assembly system.

Tile is a tiny Bluetooth tracker that helps users find lost things in seconds. The user can attach, stick or place Tiles inside everyday items and keep track of them in the Tile app. If a lost item is within 100 feet of Bluetooth range, it will play a loud tone until it's found. Tile produces a loud sound, with speakers that produce a 90-decibel melody that’s easy to hear. It is water-resistant and easy to use and requires no upkeep. Batteries in the Tile last a full year.

The Centipede® Portable Work System is a heavy-duty steel frame that sets up instantly to support thousands of pounds, folding into a compact, lightweight unit a user can store away. It can act as a portable table base at the job site or the campsite. The product is available in two sizes: the 2-foot x 4-foot Centipede® Sawhorse supports 1,500 pounds and the 4-foot x 8-foot Centipede® Support XL holds 3,000 pounds.

BONFIRE PRODUCTION CORP. 855-678-0088 or www.bonfireoutdoor.com

TILE INC. www.thetileapp.com

HARDWARE RETAILING | January 2016

CENTIPEDE TOOL, LLC 575-208-4266 or sales@centipedetool.com

Checkouts MERCHANDISING

Mystery Display Builds Excitement Around New Product

hen Dave Umber attended the National Hardware Show® in Las Vegas in May, he was looking for new niches to try selling in his store. And he found one that hit close to home. “I saw a Broil King grill made in Huntington, Indiana, which is about 30 miles from my stores,” says Umber, owner of Umber’s Do it Best Hardware, which has two locations in Ft. Wayne, Indiana. “I looked at that and said, ‘Now there’s a niche,’” he says. “My salesmen can tell customers these grills were made 30 miles away. I thought that was pretty cool.” Umber met with some of the company’s representatives at his distributor’s buying show a few weeks later, and he and his managers even visited the plant to see the grills being made. When it came time to start selling them in his stores, one of his salesmen had an idea. “We’re always challenging employees to come up with new ideas,” says Umber, “and one suggested we build excitement over this new product by making it a surprise.” They set up a display, putting out a grill and covering it in a black plastic sheet. They also roped the area off with caution tape. Signs near the display let customers know a new product was on its way to the store. “My son, Grant, is the store manager, and each week he told employees what details they could share with customers about this new product,” Umber says. “It was under wraps for three or four weeks, so most of our regular customers saw the display at least once or twice,” he says. They revealed the new product one busy Saturday afternoon. Now, the store stocks three models of these grills, and Umber is looking forward to them being hot sellers in the spring. He’s also excited to work with a manufacturer that’s so close by. “We can jump in the truck and run to the docks if we need something quickly, and we’re going to take more of our staff to visit the plant,” he says. “I would suggest any retailer look at manufacturers in their area to find niches they can try selling in their stores,” he says.

A display of a mystery new product at Umber’s Do it Best Hardware in Ft. Wayne, Indiana, was kept under wraps for a few weeks to pique customers’ interest.

“It was under wraps for three or four weeks, so most of our regular customers saw the display at least once or twice. —Dave Umber, Umber’s Do it Best Hardware

”

Looking for creative ways to engage customers? Whether it’s promotions, merchandising, special events or unique advertising, we cover it here. Got an idea? Contact Liz Lichtenberger, llichtenberger@nrha.org, to have your story considered for publication.

HARDWARE RETAILING | January 2016

Starrett Power Tool Accessories and Hand Tools

www.starrett.com/u?hard1207152

Watch the DualCut Video! starrett.com

Your name depends on ours...

What company is a cut above the rest?

Innovation Rules

Checkouts

UNIQUE DISPLAY

Show and Tell Building Projects

t’s usually easier to show rather than simply tell, especially when it comes to explaining how a house is put together. When Larry Mallaber, vice president of Nunda PRO Lumber and Hardware in Nunda, New York, wanted a better way to show customers how to use all of the various building materials he sells, he created a series of movable project carts. The project carts each feature a different project or related building materials. For example, the roofing project cart shows a cutaway of the roof, illustrating the various layers including building paper, weathershield,

“The carts make it easy to

understand the different parts of the roof or whatever part of the home we’re talking about. —Larry Mallaber, Nunda PRO Lumber and Hardware

”

flashing and shingles. Another cart shows the various types of insulation the store carries and how it is installed in the wall. “The carts make it easy to understand the different parts of the roof or whatever part of the home we’re talking about,” says Mallaber. “The response from the customer is typically, ‘I see it now!’ It’s all visual, and the carts become a display for the products we have in our store.” The displays are not just for DIY customers, either. “Contractors sometimes start out as consumers, in that there’s a point when they’re just learning about a project,” he says. In addition, Mallaber can use the project carts to show contractors how to use new products. He has about 10 project carts, each showing a different project. Roughly 2 feet square at the base and 5 feet tall, the carts have caster wheels so they can easily be moved around the store, depending on where the employee is interacting with the customer. Mallaber keeps some of them towards the back of the store and parks others at the front, depending on what might be the popular project for that season of the year.

In addition to displaying several different types of building materials, the rolling carts also show cutaways so customers can see how to use the different products involved in installation.

HARDWARE RETAILING | January 2016

This is where it all begins.

™

Start with a unique brush designed to deliver high-quality results that reach your end goals. Featuring Wooster-exclusive Micro Tip™ technology, Alpha produces the fnest fnish of any brush on the market today. It is made with a fuller, softer end that carries more paint for better release with less effort, but still maintains complete cut-in control. An original in its category, Alpha comes out on top in production effciency. Take the lead.

The Wooster Brush Company • 800-392-7246 • woosterbrush.com

Checkouts

COMMUNITY RELATIONS

Kid’s Club Churns up Interest for California Retailer

hen the children start having fun, everyone starts having fun. That’s what the team at Woodcrest Ace Hardware in Riverside, California, discovered when they started their Kid’s Club event as a way of getting local children, and their parents, into the store. Kid’s Club happens on the last Saturday of every month at both Woodcrest Ace Hardware and its sister store under the same owner, Wildomar Ace Hardware, located in Wildomar, California. When it’s time for an event, staff set up a tent in the parking lot and guide participating children through an activity, which usually involves taking a project found in the store to create something fun they can take home. This past summer, for example, children made marshmallow shooters out of PVC pipe and there was a special appearance by Buzz Lightyear, from the popular Toy Story movie. In November, children got to churn their own butter using canning jars from the store’s housewares department. “I found the butter idea on Pinterest,” says Kassandra Wachtel, marketing manager for the stores. “The project was simple. We combined heavy cream and salt in a jar, along with some marbles to help do the mixing. The kids had to shake for five minutes, and then they had butter to take home for Thanksgiving.” For the Halloween party, children made slime using laundry detergent from the store’s housewares department. At Christmas, children had breakfast with Santa and made Christmas tree ornaments out of paint brushes. At another event, Kid’s Club attendees made wind chimes using various hardware items throughout the store. Sometimes, Watchtel will combine the Kid’s Club with activities for the adults. For example, the Fall Festival event combines a classic car show in the fall with trick-or-treating for children. She does most of the advertising for store events through e-mail, Facebook and community bulletin boards. Besides giving children an opportunity to have fun and getting parents into the store, the Kid’s Club events create a connection to the community, an important part of the culture at the company. They also partnered with local organizations such as the FFA and Boy Scouts to help with some of the events. At one of the events, the members of the FFA brought in live animals for a petting zoo for the Kid’s Club. After starting at the Woodcrest Ace location eight years ago, Watchtel now holds the Club at both locations, and attendance continues to grow. “We started with just a few kids the first few years, but now we average about 25 every month,” she says. “At our recent fall festival, we had 60 kids show up.”

HARDWARE RETAILING | January 2016

Above: This past November, children at the Kid’s Club had the opportunity to make butter, an idea marketing manager Kassandra Wachtel found on Pinterest. Below: Kid’s Club activities always involve products found in the store, like these marshmallow shooters children could make with the help of special guest Buzz Lightyear.

baldwin style. hsi speed.

with same-day shipping from hsi. Baldwin’s Reserve Series ofers homeowners an unmatched balance of style and afordability. HSI ofers retailers unmatched speed and support for special order door hardware. In the end, you can ofer your customers … well, more. This is how special order is supposed to work.

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Special Order Supplier of Door Hardware 800-334-5625 | hardwaresuppliers.com

Checkouts

UNIQUE PRODUCTS

Offer Customers Something Unique With Local, Handmade Products

ot a crafty person in your family? Your store might be the perfect place for them to sell some of their wares. At Palmer Lumber and Hardware in Palmer, Kansas, part of a wall near the front of the store has homemade signs and picture frames on display. They’re made by owners Bill and Sharon Wilgers’ daughters. Several of the products feature the Jayhawks—as in the University of Kansas Jayhawks (the school is located just a couple of hours away). “It’s a little something extra we can add to our product selection that’s unique and sold only in our store, which is nice,” says Bill.

Customers at Palmer Lumber and Hardware can find handmade signs, picture frames and more.

You can try this in your store, too. Ask a crafty employee or family member if they’d be interested in creating any sort of artwork. Along with wall hangings and picture frames, try other small items like magnets or paperweights. Display these items on the walls or on the counters around your store. Make sure to let customers know who created these items—many customers prefer something one-of-a-kind that they can’t find anywhere else.

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eff Fuller of Fuller & Son Hardware in Little Rock enjoys taking black iron pipes, fittings, lamp sockets and wires and creating pieces of functional art. He adds Edison-style light bulbs, and sells the unusual lamps to everyone from artsy customers to contractors at Fuller & Son’s Heights store, which is the sixth and newest location for the family-owned chain. Fuller started making the lamps in 2014 after he noticed similar products selling for $175 or more online. He thought he could be just as creative and add some unique and fun products to the new store’s inventory, while offering customers a better deal. He sells his lamps for between $59 and $100. Fuller & Son stores sell all of the parts for making the lamps except for the clear fingernail polish Fuller uses to set the pipe joints. He enjoys coming up with unique designs, fitting the pieces together and then selling his works of art. “The fact that people are seeing these and buying them and putting them in their houses—it does my heart good,” Fuller says.

Jeff Fuller of Fuller & Son Hardware in Little Rock creates and sells functional art made out of products sold in his family’s home improvement stores.

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FINDERS KEEPERS How to Recruit and Retain Quality Employees By Liz Lichtenberger, llichtenberger@nrha.org, Kate Klein, kklein@nrha.org

our employees are the first contact customers have with your business when they walk in the store. Employees mix paint, repair screens and answer questions, among other tasks. Ultimately, they can be the reason customers visit your store every week—or vow they’ll never shop there again. So, it’s important to find, train and retain employees who will make a positive impact on your business. Employees, in your customers’ eyes, are your business. They’re as much a part of it as pricing or inventory management. You may own, manage or run the day-today operations, but your employees most likely have the greatest amount of interaction with your customers. Since they can make or break a customer’s experience, they should be friendly, knowledgeable and helpful. This article includes a variety of materials to help you recruit and retain high-quality employees who will provide top-of-the-line customer service, become a wealth of product knowledge and help your business grow and be successful. For this story, we looked at data, spoke with retailers and even sent a Hardware Retailing staffer through training at a local independent home center. In the following pages, we’ll talk about how to find highly qualified employees and offer tips on how to ensure you retain them and turn them into long-term employees.

HARDWARE RETAILING | January 2016

What You’ll Find: Employee Article: The following article, which shares suggestions, ideas and real-life experiences from independent retailers on how to recruit and retain the best employees. New Training Resources: Information about Train the Trainer (a downloadable PDF booklet that offers ideas on how to begin the training process) and Trainer’s Toolbox (resources that include lessons for managers to use when training employees). Download these new educational tools at nrha.org. Employee Experience: Firsthand stories from Hardware Retailing staffer Graeme Haase, who got to experience in-store employee training at Cardwell Do it Best Home Center in Indianapolis, and feedback for improving training programs. Employee Evaluation Form: Use this form to complete employee reviews. Additional, related materials are available through the North American Retail Hardware Association (NRHA).

January 2016 | HARDWARE RETAILING

FINDERS TOPICS COVERED • How to find qualified candidates. • Different ways to conduct interviews. • What to look for in candidates during an interview.

inding loyal, well-trained employees starts in the beginning, before new hires accept the jobs, submit W-4s and learn to cut their first keys. Recruiting high-quality candidates who will serve your store and your customers well starts with the detailed job descriptions you write, how and where job listings are posted and how you prescreen potential candidates. You can’t perfect your hiring process—everyone makes mistakes—but you can improve your candidate pool and then learn how to ask interview questions that help reveal whether a potential employee will be a “keeper” long term.

Starting Out Right Aimee Nichols used to dread the weeks her store’s job openings came out in local classified ads, because the blitz of phone calls and emails from unqualified candidates was overwhelming. But she’s been able to improve the advertising, recruiting and interviewing process, and learned to reduce the pool to the best candidates. Doing so has helped her decrease both the number of bad hires and the employee turnover at

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HARDWARE RETAILING | January 2016

95%

Berger Hardware in Hawthorne, New York. She co-owns two stores with her brother, Chris Rubeo. Their goal isn’t to hire the most experienced or qualified-sounding candidates, but to find employees who fit the company culture and will be loyal to the business. “My brother and I believe we can teach people hardware, but it is difficult to teach someone how to have a positive attitude and work ethic,” Nichols says. “We actually probably hire about 95 percent on personality and the feeling we get when they walk in the door and we talk to them. Having hardware experience is a definite plus, but is no longer the ultimate deciding factor in who we hire.” Tracie White, who is manager of talent development at HPM Building Supply in Hawaii, also considers personality, willingness to learn and attitude more than work experience. The company operates retail stores, lumberyards and a manufacturing facility, and has business locations on the islands of Hawaii, Oahu and Kauai. “Of course, it’s wonderful if somebody has knowledge or skill in our industry, but that

“We are looking for

people who see HPM as their home and customers as their invited guests.

”

—Tracie White, HPM Building Supply

is how much Berger Hardware prioritizes personality/ first impressions when hiring.

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Dear Servicing Dealers, Happy New Year! It is a pleasure for me to address you offcially for the frst time as president of STIHL Inc. One question I anticipate being asked is, “What’s next for STIHL?” I don’t believe in change for change’s sake and I can confirm with absolute certainty we will continue our support for our growing network of STIHL servicing dealers. In fact, we are proud to report there are now more than 9,000 servicing dealers retailing STIHL equipment in the United States! We have not only seen growth in the number of locations selling STIHL, but dealers are experiencing signifcant year over year growth, taking market share from the mass merchants in our category. We believe STIHL dealers’ ability to offer the number one selling brand of gasoline-powered handheld outdoor power equipment in America* has contributed to that success. We also believe in continuous improvement; even as we maintain and honor our traditions, we will continue to embrace new technologies and programs. We are investing in the infrastructure of our distribution network to better serve our dealers. We continue to develop innovative, quality products, most of which are built in America*, to meet the changing demands of our customers. And we are utilizing the latest digital marketing programs to increase engagement and reach, all geared toward driving traffc to your dealerships. Most importantly, STIHL remains focused on people, including our employees who build the product, our dealers who sell and service the product and our customers who use the product. It’s those relationships that have made STIHL an industry leader since 1926, and will be the foundation of our success for years to come. I wish you all continued growth and success in the coming year. Best regards,

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can be taught,” White says. “We are looking for people who see HPM as their home and customers as their invited guests.”

Finding the Best People HPM is always recruiting employees—and everyone on HPM’s payroll is on the lookout for new talent. All employees are encouraged to pass out business cards to people they meet who they think would fit in well at the company. Employees who aren’t in management can hand out generic business cards with the store’s contact information on them. White recently gave her card to a server at a cafe where she stopped to get coffee with her children. She asked the server to apply at HPM if she was interested in changing jobs. “She was smiling, had a great attitude, was sparkling,” White says. “This is being proactive

DAY 1 Hardware Retailing staffer Graeme Haase went behind the scenes at Cardwell Do it Best Home Center in Indianapolis, where he participated in an accelerated training program over the course of three days so he could see firsthand what a new sales associate’s training is like and share his experiences and impressions with retailers. Due to time constraints, Haase didn’t participate in some typical new employee training activities (such as watching training videos from NRHA, like Basic Training and Three Pennies of Profit). However, he did spend time at the cash register, helped customers on the floor and learned how to cut keys and mix paint. In blog posts on hardwareretailing.com, Haase talks about what he hoped to get out of the training program and takes a look at what he learned on his first day, when he was trained as a cashier. “I’m coming into this job with limited hardware retail knowledge and experience,” he writes. “And so will your next new employee. “My main focus is to soak up as much information as I can, step out of my comfort zone and provide information and tips to train new employees,” he says. To read more from Haase’s first day, visit TheRedT.com/1Nc82Or.

HARDWARE RETAILING | January 2016

and going out and finding great people ahead of the game and matching them with a position as it becomes open.” Recruiting via word of mouth, though, doesn’t work for every position every time. Both HPM and Berger Hardware use the employment search engine Indeed.com to post job listings with descriptions of the candidate characteristics they’re looking for. HPM also accepts applications through its website. For recruiting, Ace Hardware Home Centers, Inc., relies heavily on snagajob.com, a website that posts openings for hourly jobs on multiple online jobs boards. The company, which has four stores in Colorado and two stores in Wyoming, also lists job openings on Craigslist and Facebook. Facebook can work well for recruiting because applicants who find the company’s social media job postings often are already customers, like the business and live nearby, says Beth Patrick, director of human resources and risk management for the small chain. “We keep job postings going pretty much all the time,” she says. “I’m always looking for a great candidate. If a great candidate comes across, I’m going to hire them whether I have an open position or not.” Indeed.com allows Nichols to post detailed job descriptions and specifics on what she’s looking for in a candidate, including years of experience. To improve her recruiting and hiring process, she developed accurate job descriptions for roles throughout the business so the online ads could be more specific about expectations for the positions. The quality of job applicants for positions at Berger Hardware has shot up, and the website makes screening potential hires easier. Nichols can delete applications and resumes quickly based on criteria such as the person’s address in a distant town or gaps in employment history. The goal is to land a qualified, committed worker from the start and cut back on the time spent trying to fill jobs and train employees who don’t turn out to be good fits long term. Interviewing, hiring and training people who don’t stay with the business very long decreases operational efficiency and causes distractions, Nichols says. “I can’t express the dollar value of a person who is reliable,” she says. Word-of-mouth referrals have always been important for hiring and recruiting employees, and getting suggestions from people Nichols

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Step 1: Ready to Begin Training knows is still a solid way to find high-quality candidates, she says. But Indeed.com has become a reliable resource, so she has been able to cut back on classified advertising. “Indeed definitely narrowed the field for us,” Nichols says.

The Interview Process Including multiple staff members in the interview process has also improved the way Berger Hardware and HPM vet highquality employees. Job applicants typically interview on the phone with a human resources representative at HPM, and then with a store manager or direct supervisor. The two HPM staffers then discuss whether to hire the candidate. “The first interview is really on our corporate culture and how the candidate would fit into the HPM corporate culture. We’re looking more for attitude,” White says. “We do the collaborative

HARDWARE RETAILING | January 2016

process of HR and the direct manager so it’s a team effort in hiring the right person.” Hiring is something of a group effort at Ace Hardware Home Centers. Beth Patrick, director of human resources and risk management for the chain, trains her managers to oversee group interviews with four or five candidates so they can see how prospective employees interact. The interviewer gets to meet the candidates, but also watch the potential hires meet each other. “I love the dynamics of a group interview,” Patrick says. A group interview is the step following phone interviews at Ace Hardware Home Centers. The managers hosting the group interviews are trained to ask behavioral questions to learn, for example, how the potential employees interacted with difficult customers in past retail jobs. “You’re really watching for the nonverbal cues, too. Are they polite? Are they smiling?” she says.

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The manager also asks the prospects to head to the salesfloor to find products they have never used before, and then return to explain the items based on what they learned from the labels. Potential hires can really set themselves apart during that phase of the interview by confidently explaining products just based on what the labels say, Patrick says. White asks interview questions that bring out character traits to see how teachable job candidates might be and what their personalities are like. Her questions include, “Can you describe a recent unpopular decision that you made and what the result was?” and “Describe a project implemented because of your efforts. What was your role and what was your outcome?” At Berger Hardware, Nichols includes department heads in her hiring process. She asks those employees to help her sort through applications and join in the interviewing. Recently, Nichols also gave two potential hires the opportunity to work for a day at the store to help her decide whether to hire them. “I just thought in my head, ‘I wish I could see this guy working,’” she says. She hired one of the job candidates, and came to a mutual agreement with the other that he was a bad fit for the business. The experience was positive for both Nichols and for the candidate she didn’t hire because the day in the store helped them agree Berger Hardware wasn’t the place for him. “It worked out well. It potentially saved us from making a not-great hire. It kept him from committing to us and working here a month and then leaving,” she says.

Step 2: Build Product Knowledge

DAY 2 During his second day on the job, Haase got a chance to try a little of everything.

These tasks included everything from removing old signage to working at the rental counter.

He spent some time tidying up the store, learned how to cut keys and mix paint. He also got a tour of the warehouse.

“As I’m reflecting on my day today, I’m taken aback by exactly how many different aspects there are to running and working in a hardware store,” Haase writes. “I wish I had worn a pedometer to track my steps for today. I feel like I walked enough to finish a marathon.”

He also learned that working retail keeps employees on their feet, especially since they’re doing so many different jobs throughout the day. In one of his blog posts on hardwareretailing.com, he includes a timeline detailing the many different tasks he performed throughout the day.

HARDWARE RETAILING | January 2016

Read more about Haase’s experiences during his second day of training by visiting TheRedT.com/1U87R9C.

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KEEPERS TOPICS COVERED • Benefits, including both cash rewards and non-financial incentives. • The importance of reviews and regular conversations with your employees. • How to have the difficult conversations.

ou’ve worked hard to hire a good team and get everyone trained. You’ve invested time and money in them—according to NRHA estimates, it costs more than $6,000 to hire and train a new employee—and you want to make sure they are happy in their jobs and are ultimately working to make your business more successful. So what do you do to make sure those employees aren’t looking for jobs elsewhere?

Unique Benefits Of course, money is important. However, when an employee considers his job satisfaction, he’s thinking about more than the amount of money he takes home every two weeks. Unique benefits, a positive work environment and more can be the difference between a good employee staying long-term or turning in his two weeks’ notice. “I think, in general, most of our incentives are to obviously make our current employees feel appreciated and celebrate their achievements,” White says. “We are 100-percent employeeowned. We are one of the first companies in Hawaii to have an employee stock program.

NEARLY

93% of retailers offer in store discounts to employees.

HARDWARE RETAILING | January 2016

63%

of retailers provide an employee match to retirement plans of up to 3 percent.

Within a year of working at HPM, [an employee] becomes an owner. They are vested after five years. ESOP is at no cost to them and really changes everybody’s mindset.” If employees feel like they’re part of the bigger picture, they’re more likely to work a little harder and give extra effort—and sometimes that little extra effort can take an employee from good to great. Nearly 93 percent of respondents to the North American Retail Hardware Association’s 2014 Employee Compensation Study say they offer in-store discounts, and nearly 70 percent offer salary bonuses. But fewer offered less traditional benefits, such as a company car (22 percent), a laptop or tablet (17 percent), tuition reimbursement (16 percent) or parental leave (16 percent). Offering these nontraditional benefits can help you keep good employees around. More than three-quarters of the study respondents provide an employer match to a retirement plan, with the majority (63 percent) matching up to 3 percent. There are ways to do something different with those more common benefits, too, and switching things up can help keep employees happy. They will also motivate employees to work harder, which means increases to your bottom line. For example, let’s look at salary bonuses. Many, if not most, bonuses are given yearly. If the bonuses were handed out more frequently, the incentives could be more top-of-mind for employees, and inspire employees to work a little harder to earn them.

NEARLY

70% of retailers offer their employees salary bonuses.

Source: 2014 NRHA Employee Compensation Study

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Consider giving out bonuses quarterly instead. Doing so may be a little more work for you, but could motivate employees as they strive to reach a sales goal and earn that extra money. At HPM, employees are rewarded with cash or gift cards if they’re a top performer in the store’s regular mystery shops and the results of customer phone surveys that allow customers to give feedback on their experiences at the stores. Of course, it’s important to consider nonfinancial rewards, as well. For example, instead of a bonus, consider offering an extra day of paid time off to employees to recognize them for a job well done. Benefits, both financial and non-financial, all tie in with the culture you have created for your company, and a positive culture is what employees want.

Good Communication It’s important to provide open communication from the very beginning of an employee’s time working at your business. You should have

Step 3: Learn New Skills 62

HARDWARE RETAILING | January 2016

clearly written job descriptions for each position in your store. This is especially important in a small business, where employees often wear several different hats. Lack of clarity about expectations and lack of feedback keeps employees from reaching their full potential. Also, even though you’re the boss, it’s important that you let employees have a say. Let them try something they’ve suggested, even if you are skeptical. Maybe it will—and if it doesn’t, they’ll have learned the lesson better than if you just told them “no,” and they’ll appreciate an opportunity to have their ideas heard and tried. At HPM, employees can share their ideas via an app that sends them questions twice a month asking about their experience at the company, including questions such as “Do you have all the tools you need to be successful in your role?” and “How do you like the company culture?” All responses are anonymous.

“It gives us really honest feedback on how we’re doing as a company,” White says. “Our leadership team replies to almost everybody’s feedback. We get a lot of amazing suggestions for improvement.” The app also includes a section called Cheers for Peers, where employees can applaud their co-workers on jobs well done. “It’s always good for your morale to be recognized by your peers,” White says. The executive team recognizes those who have received and those who have given the most cheers, as well as workers who have reached a milestone anniversary or have provided excellent customer service during mystery shops and phone calls. Of course, there are times when co-workers may have less positive things to say, but White encourages them to remind each other of various ways they can improve.

DAY 3 Haase wrapped up his training by spending his third and final day shadowing Bill Dillow, manager at Cardwell Do it Best Home Center. He learned how to take inventory and, of course, spent a good portion of the day on the salesfloor helping customers. One challenge, he says, was having the product knowledge required to help customers. “When you work in a hardware store, you’re viewed as an expert, whether you are or not,” he writes in a blog post. “I gave it my best shot each and every time, with each and every customer.” Haase also put together a list of points describing what he learned from working at the store. And there were quite a few points on his list. Although he didn’t get to fully participate in the store’s typical training program, he says he did learn a good amount in his short time working retail. “It was eye-opening to see how much there is to learn and how home improvement retailers go about onboarding their new employees,” he says. “I got so much out of this experience in just the few days that I worked at the store.” To read more from Haase on his third day of training, visit TheRedT.com/1RcrYVw.

HARDWARE RETAILING | January 2016

“It’s very common for teammates to coach each other on service, offering specifics on improvement,” she says. Another way to encourage open communication is to get your employees involved in the hiring process. Nichols includes employees who oversee store departments in her hiring decisions. For example, her head cashier reviews applications and participates in interviewing potential cashiers. The department heads are more satisfied with the hiring process and committed to training the new employees because they help make the hiring decisions, Nichols says. “They’re committed to that person because it’s their choice,” she says. “It’s just different. It’s not, ‘Oh, who did Aimee hire this time?’” Make sure to provide open communication in other ways, as well. If an employee does something incorrectly, let them know so they can correct it and know how to better themselves for the next time a similar situation arises. Conversely, if they do something great, make sure to let them know that, too.

Effective Employee Reviews Consider doing your employee reviews more frequently. The annual review can cover raises or bonuses, but a midyear or quarterly review can help employees get more frequent feedback. You are busy and while you intend to chat more frequently with your employees about how they’re doing at work, all too often the only time there’s talk outside of a formal review is when there’s a problem. Setting up more frequent reviews could change that. Patrick says new employees receive twomonth, six-month and one-year reviews. After the first year, reviews are done annually. “If they receive a promotion into a different position, they’ll do two-month, six-month and one-year reviews again,” she says. “I think it works very well. High-performing associates and managers want to know how they’re doing and how they can do better.” Each review is a little different; for example, the two-month review includes a checklist of tasks to learn, and the employee and manager talk about which of these items the employee has done and which have not been done. The six-month and one-year reviews use a grading system, but there’s plenty of room for additional notes. “People really thrive on the comments and the feedback,” Patrick says.

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Many businesses do exit interviews with employees who have chosen to leave, but why not occasionally conduct similar interviews with your current employees? Starting this year, reviews at HPM will be done more often, and they’ll be more conversational, White says. “In the past, reviews could be very subjective,” she says. “This new system will involve coaching on a more regular basis.” In the past, they’ve been done in a traditional manner, but the new format will involve a more collaborative coaching system between the supervisor and owner-employee. “We’ll continue to set smart, specific, attainable goals,” she says. “We want reviews to be more of a mutual conversation and agreement between the supervisor and employee.” While it’s important to fill out an employee evaluation form, don’t rely on the document for the only discussion topics in a meeting. Use the form as an outline, but don’t read directly from it—employees can review it on their own. Instead, use it to highlight some points, both positive and negative, that you’d like to make. Use the evaluation as a conversation starter. It’s a good idea to have employees fill out their own version of the form, too, before the review, and then the two of you can compare your notes. Areas where your thoughts differ are the areas that will likely need further discussion. (Visit TheRedT.com/1HWLfYc for a printable form you can use for your employee reviews. Additional evaluation sheets and other forms are available for NRHA members in the Human Resources Handbook at nrha.org.) Of course, formal evaluation forms aren’t needed at all meetings. Consider holding midyear or quarterly reviews as short chats—just a chance for you and your employee to catch up informally. Use the brief conversations to let workers know how you think they’re doing, and make sure to discuss with them any of their comments, questions or concerns. (Of course, if you do have any serious concerns about their job performance,

HARDWARE RETAILING | January 2016

Step 4: Run the Register you should have those in writing and be ready to address them—and don’t wait until the next scheduled review.) Also take some time to discuss goals with your employees. Think about how those goals can be reviewed at meetings that are held quarterly or twice a year. Longer-term goals can be discussed at annual reviews Many businesses do exit interviews with employees who have chosen to leave, but why not occasionally conduct similar interviews with your current employees?

The Hard Conversations While many employee reviews can be overwhelmingly positive, there are those times you’ll need to have a difficult conversation with an employee that may result in disciplinary action.

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Step 5: Assist Customers “I sit down with an associate or manager and have a conversation about what happened before I jump into corrective action,” Patrick says. It’s important to talk and find out everyone’s side of the story. Often, the issue arises from a simple lack of understanding or miscommunication. “It could be that they were simply acting in the way they were trained,” Patrick says. “So many times, employees inherently believe they acted in the right away.” Unfortunately, there come times when those conversations may include, or lead to, disciplinary action. Here are a few tips for making those types of conversations a little bit easier for everyone: • Document everything. Put everything in writing: what offense the employee committed, more details about what happened, how frequently it happened, any prior discussions or warnings that may have

HARDWARE RETAILING | January 2016

taken place or been issued and any other pertinent information. • Make a plan. It’s best to have a plan of action ready to go. This can be anything from a written warning to termination, depending on the severity and frequency of the offense. • Take notes. Make notes during the meeting and have the employee sign off, acknowledging that the issue was discussed and the consequence was agreed upon. Make copies of the notes and signatures and give one copy to the employee. Put the other in his or her file. If the employee has a company email address, it doesn’t hurt to follow up that meeting with an email detailing the notes. • Follow up. Check in with the employee at agreed-upon intervals to ensure the issue is being resolved and both you and the employee are following the agreed-upon courses of action to fix it.

Now that you know how to recruit and retain quality employees, it’s time to talk about another important step: training. Whether you’re looking for quick ways to teach employees about of add-on selling skills and strong product knowledge or want a step-by-step

guide to setting up a comprehensive training program, NRHA can help. We’ve also compiled information about job descriptions, personality tests and more. See below for more information on these new resources, and download them at nrha.org.

But There’s More… TRAIN THE TRAINER This downloadable PDF booklet is a quick-start guide as well as an ongoing reference for the trainer. Topics include the importance of training, a step-bystep outline of how to set up a training program, tips on maintaining a successful training program and how to use the training courses NRHA has to offer. How to Get It: Download the PDF at nrha.org/FreeTraining. TRAINER’S TOOLBOX The Trainer’s Toolbox series is offered to retailers as an ongoing training resource for employees. The quick lessons include short videos, worksheets or PowerPoints with quick tutorials or quizzes about a certain aspect of the business. Each covers one of four categories—merchandising, selling skills, product knowledge or operations—and comes with a “Trainer’s Notes” page that offers a brief explanation of the lesson and some suggestions for how the trainer can use it with his or her employees. How to Get It: Four lessons will be published on the first Monday of each month at nrha.org. The first four will include lessons on: • Making a Good First Impression on Customers • Add-on Sales • Working With Difficult Customers • How to Build a Great Endcap Download them at nrha.org/FreeTraining. OTHER RESOURCES We’ve also gathered a variety of resources, and we’ve posted them in one place on our website for your convenience. Go to TheRedT.com/1Qhk0Kz to learn more about the following: • How to write clear, comprehensive job descriptions for various positions. • What millennials are looking for in a job. • Other prescreening tools, such as personality tests, that can help ensure you’re finding employees who will be a good fit for your business and its culture.

January 2016 | HARDWARE RETAILING

CALL FOR 2016 NOMINATIONS

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Inventory On Demand January 2016 | HARDWARE RETAILING

he faucet drips. Before long, a bucket underneath the sink is full of water. The DIYer tries all of the quick tips he’s learned at his local hardware store, but the problem is bigger than just tightening the drain pipe. He calls his local plumber to come fix the problem. Driving to the job site, the plumber stops at a home improvement store to pick up the pieces he’ll need. Where does he stop? Home Depot? Lowe’s? An independent? This situation is reminiscent of many choices plumbing contractors face, so how can you win them over and earn their business? To help you stand out against the competition, Hardware Retailing editors spoke with a variety of plumbers to find out what they want from their suppliers. They all noted five key areas where independent retailers should focus to gain their business, including speedy service, knowledgeable employees, a wide range of inventory, added perks and well-known locations. In each of these areas, we have included their perspectives. We also spoke with independent retailers who have experience working with plumbing contractors to learn some of their tips for success. For a helpful guide on how to gain new business from plumbing pros, visit TheRedT.com/1HVfLSe.

SPEEDY SERVICE PROFESSIONAL For many plumbing contractors, wasted time is money lost. In order to build a great relationship with pros, it’s vital they’re able to get in and out of your store quickly. According to Bill Haws, general manager of Bill Howe Plumbing in San Diego, California, making a pit stop to pick up a part for a job can be frustrating for his team of plumbers if it takes time away from getting the job done. “Plumbing is an expensive operation,” Haws says. “If we’re sitting and waiting for products, we’re wasting time and money.” One reason the pros from Bill Howe may stop at a big-box location is because they know they will be helped differently than the DIY shoppers. “Lowe’s and Home Depot both have contractor counters,” Haws says. “Our plumbers don’t shop there too often, but when they do, they know the lines are shorter and quicker. Any way the hardware store can expedite the process while we’re in the store, getting us in and out as fast as they can, is huge for us.”

RETAILER

Mayfield Plumbing & Electric arranges products so professionals can get in and out of the store quickly.

HARDWARE RETAILING | January 2016

Since efficiency is key for professionals, Andrew Myers, manager at Mayfield Plumbing & Electric in Mayfield, Kentucky, continuously strives to get his customers the items they need in a timely manner. Mayfield Plumbing & Electric is heavily focused on the professional customer, servicing electricians and plumbers. The store is about 10,000 square feet with a counter and shelving at the front, products on either sides of the counter and a separate building behind the store for large or bulkier items. “A lot of times, the customer gives us a list and we go to the back and get it,” Myers says. However, if there are multiple customers at the store, the customers may end up waiting on the staff. Therefore, Myers has strategically made some products easily accessible. “I’ve been intentional about putting things in an organized way so customers can go pull products for themselves rather than always waiting for employees,” he says. “Some of the big [plumbing suppliers] have very small store fronts with all of the inventory in the back, so the customer relies completely on the salesmen, but I’ve tried to separate our business by giving the customer access to product.”

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Stuart Holthaus, general manager at A-1 Irrigation Do it Best Hardware in Valley Center, California, also understands that professionals want to get in and out of the store. “It’s key that our employees can get the customers what they need in an efficient manner so they can get back to their jobs,” Holthaus says. “If the store is easy for the customers to shop, they’ll come back, because time is money.” If you want to grow your relationship with plumbing professionals, finding a way to speed up the process is key. Some methods for quick service are having an employee act as a runner to grab items or taking customers’ product orders via text or phone call, having it ready to go when they arrive at your store.

BE THE EXPERT PROFESSIONAL For the professional, knowledge is about accuracy and speed rather than project help. The plumber wants to be serviced by employees who know what he needs, where it’s located and can offer prompt service. According to Fred Thompson, a service and repair plumber based in Celebration, Florida, the independent store Celebration Hardware

has earned his business in many ways because employees can answer his questions. “One of the things I like about [Celebration Hardware] is their knowledge of what they have in stock and having enough product so that I can get the job done,” Thompson says. “When I need something on a job, I know I can call the store and they’ll know what I’m asking for. That is a big deal. You don’t know how many times I have gone to a store that said they had what I needed and when I get there, it isn’t there.”

RETAILER To get plumbers in and out quickly, your team must be equipped with ample product knowledge so they can complete orders efficiently and answer any customers’ concerns. While professionals work with the product every day and will often have no questions, sometimes new products will emerge or the product will malfunction and retailers need to be able to assist them. At A-1 Irrigation Do it Best Hardware, Holthaus believes knowledge is one of the most important things for attracting professional customers. “When professionals ask questions, they are surprised at the product knowledge our employees have,” he says. “It is service the pros would expect to receive at a wholesale house.” To train employees, Holthaus uses video and online training, but he also brings in plumbing contractors to do in-person training for the employees.

Deb Steinke (left) and Barb Grosskopf (right) use in-person and online training to ensure all plumbing customers at Qualheim’s True Value are serviced by knowledgeable sales associates.

HARDWARE RETAILING | January 2016

“The actual guys in the field using the products come in and train the team on how to use the different products,” he says. “The best teachers are out there actually using the product.” At Qualheim’s True Value in Shawano, Wisconsin, Deb Steinke, plumbing department manager, tries to stay up to date on trends so she can help DIYers and the pros. “While professionals usually want to get in and out, they sometimes ask for advice if it’s about a new product they’ve heard of but haven’t seen,” Steinke says. “Then we can show them the product and try to guide them with it.” Steinke has learned all about the plumbing industry in her 32 years of hardware retail experience, however, she still tries to gain hands-on training. “You can have all the products in the world, but without knowledge, it’s nothing,” says Gayle Lemmer, manager at Qualheim’s True Value. Lemmer uses the North American Retail Hardware Association’s (NRHA) online training programs to train her employees, which can be found at nrha.org/v2/Training/, along with other online classes. “I learn from customers, I go online to research and I have also taken several classes, such as a hands-on class about soldering,” Steinke says.

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A-1 Irrigation Do it Best Hardware has made a concerted effort to offer a wide range of inventory, so plumbers can get everything they need in one place.

INVENTORY ON DEMAND

“I work with six to eight supply houses that offer specialty products for plumbing,” Atwell says. “What I need dictates where I go in town to get products for the job. You’re at the mercy of the suppliers’ inventory and sometimes it has to be next-day shipped to us.”

PROFESSIONAL If your business wants to begin supplying more contractors, it’s important to simply ask them what they need. When Celebration Hardware first opened, Thompson says the owner asked him what he recommended they stock. Since then, Thompson says he has been able to build a relationship where the retailer understands and listens to his needs. “Celebration Hardware asked me what I would like to see in the store to make the plumbing department more useful,” Thompson says. This dialogue led to the store adding specific plumbing brands and parts, like name-brand cartridges, basin supplies, faucets, showers, waste line products, pipes, glue, toilet supplies, miscellaneous fittings and other items a service plumber might need. The pros at Gordon Plumbing, a full-line plumbing service company based in Indianapolis, regularly work with supply houses but inventory can still be an issue, according to Jeff Atwell, who is in charge of business development for the company.

HARDWARE RETAILING | January 2016

RETAILER Myers’ motto at Mayfield Plumbing is all about finding ways “to add value beyond the dollar sign.” “We just had a pro come back to us recently, and he uses oddball fittings that no one else uses, so we are going to try and keep those fittings to accommodate him,” says Myers. “We can make decisions the big boxes can’t.” To him, price is important but is secondary to product selection. “Professionals really value that you have the product in stock more than how much it costs,” he says. “At the end of the day, if you have it and the competitor doesn’t, that’s what it boils down to.” Qualheim’s True Value has a number of large institutions in its area, such as schools, that require specialty plumbing parts, and Steinke says they have altered their inventory to cater to these customers’ needs. “We get some pretty odd requests from the institutional customers, such as automatic faucets and other items you normally don’t sell to DIY customers,” she says.

ADDED PERKS PROFESSIONAL While a plumber may not immediately think to purchase products from your operation, providing contractor perks can help earn their business. The team at Gordon Plumbing has had house accounts set up at Home Depot and Lowe’s, according to Atwell. “We’ve had accounts with Home Depot and Lowe’s in the past,” Atwell says. “Those are wellstructured, and all of our guys had their own card. If they needed materials, they could pick it up and charge it. Then, when the invoicing would come through, we’d pay it.” For Thompson, his relationship with Celebration Hardware has solidified since the business opened in 2012 because the owner, managers and staff go above and beyond to meet his needs. “When I shop at Celebration Hardware, I know I’m not just a number,” he says. “The owner’s mom brings

cupcakes in many mornings. It’s nice to get a personal touch. We have a good working relationship.”

RETAILER Added benefits, such as house accounts and job-site delivery, or other small perks such as donuts and coffee delivered to job sites, keep professional customers loyal to different suppliers. Job-site delivery for example, goes hand in hand with having the products plumbers need, when they need it. “We have one delivery guy that delivers all the time, and then we have one to two backup delivery guys,” Holthaus says. “We’re usually doing deliveries all day long.” Mayfield Plumbing & Electric also delivers product to jobs sites when necessary and offers house accounts for professionals, which is a service A-1 Irrigation offers as well. This service makes getting in and out of the store quicker and helps plumbers balance their cash flow with different projects. “One plumber has so much going on that he can’t get one project completely done and paid to then in turn pay us,” Myers says. “We try to be sensitive in those circumstances without making it a habit.

Bill Haws, general manager (left) and owners Bill and Tina Howe (center) stand with a few of their plumbers. Retailers could benefit by offering clients like Bill Howe Plumbing’s on-site delivery.

HARDWARE RETAILING | January 2016

GET ON THE MAP PROFESSIONAL For many contractors, location is a determining factor in whether or not they visit a store. Since plumbing is an expensive business and is often determined through hourly rates, they won’t drive all over town to save a few cents on a product. “Knowing the location would be a great way for us to be aware that the business is near us when we’re on a job,” Haws says. “We try to arm our guys with all the information they need when they’re out. If we don’t know a store is there, they won’t either. If retailers provide us this information, we will be more likely to stop in and cut down on our time driving around.” Atwell adds that location often trumps the importance of price when it comes to working on the clock. “Depending on what we need, we’re going to go to pick up product in the closest proximity to where we’re working,” Atwell says. “If we’re driving all over town, somebody is going to pick up the cost. “To us, it’s worth it to pay a little extra on product rather than driving 10 or 15 miles to pick up supplies,” he says.

“To us, it’s worth it to pay a little

extra on product rather than driving 10 or 15 miles to pick up supplies. —Jeff Atwell, Gordon Plumbing

”

RETAILER While many plumbers indicated they tend to visit the closest supplier, retailers are not able to change locations easily. However, as a retailer, you have the ability to make customers aware of your location and the services you offer. Consider sending out fliers to contractors who are not yet customers or a greeting card welcoming new contractors or plumbing businesses to town. To learn more about acquiring new customers in your location, visit TheRedT.com/1HVfLSe.

January 2016 | HARDWARE RETAILING

Newsmakers Passing Along the American Dream

Upcoming Events January 8-10 United Hardware Buying Market Minneapolis, Minnesota

12-19 The Atlanta International Gift & Home Furnishings Market Atlanta

15-16 Do it Best Corp. Winter Conference San Diego, California

17-20 Sean Wankel, vice president of Wankel’s Hardware in New York City, provides immigrants with jobs. The pins on the world map behind him show where employees have come from.

ankel’s Hardware in Manhattan has a history of offering immigrants opportunities to achieve the American dream. In the 1970s, the business, which opened in 1896, began pursuing prospective employees who needed help establishing new lives. Katherine Wankel, current owner of the store, led the effort to find ways to employ ex-convicts, troubled teens and first-generation refugees. “She has always felt social justice was extremely important, and my grandfather instilled that value in all of us, as well. I’m trying to live up to their great examples,” vice president Sean Wankel says. Katherine Wankel is his aunt. Now, the store is known for offering jobs to new immigrants, Sean says. The business has been working with resettlement organizations like the International Rescue Committee and Catholic Charities for decades. “Both of these organizations give grants to help first-generation Americans come to the U.S. through the United Nations,” Sean says. The organizations work with businesses, such as Wankel’s Hardware, to help refugees find job opportunities. Caseworkers prescreen potential job candidates, and are usually able to recommend people they think would fit best at Wankel’s Hardware, Sean says. Refugees who come to Wankel’s Hardware for job interviews get to see a world map, which has pins stuck into countries where current and former Wankel employees have come from, he says. “I hope it gives them a little comfort and they know it’s a safe place. Many people from all over the world have come through here, and they have gone on to lead happy and successful lives,” Sean says. The store has a strong team of employees from all walks of life, but the immigrants contribute uniquely. “The employees I’ve gotten to work with and know have shown me many great qualities, like extreme perseverance,” Sean says. “Refugees are just other folks like you and I, but they just need a little bit of help.”

HARDWARE RETAILING | January 2016

Retail’s BIG Show 2016 New York City

19-21 Kitchen & Bath Industry Show (KBIS) 2016 Las Vegas, Nevada

19-21 NAHB International Builders’ Show Las Vegas, Nevada

20-21 Blackstone Supply Co. 2016 Trade Show Warwick, Rhode Island

21-23 Handy Hardware 2016 Spring Market Houston, Texas

21-23 House-Hasson Dealer Market Nashville, Tennessee

29-31 HDW 2016 Spring Market Shreveport, Louisiana

Find more details about these events and others online at TheRedT.com/1HWygFK. To have your event added, contact Kate Klein at kklein@nrha.org.

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Newsmakers

Service Directs Amazon Shoppers to Local Stores

PriceLocal is a web browser extension that allows shoppers to browse products sold on Amazon and search for them in local stores. If a retailer agrees to match the requested Amazon Prime price, the shopper receives a notification and can head to the brick-and-mortar location.

rick-and-mortar retailers have the opportunity to snag online shoppers in a new way—with a service called PriceLocal. PriceLocal is a web browser extension that works with Chrome, Firefox and Safari browsers to search local stores for products sold on Amazon. The company launched nationally as a free service for both retailers and consumers. Matt Chosid, a former Borders Books executive, founded PriceLocal in 2014 in Ann Arbor, Michigan.

Consumers add PriceLocal to their browser, and when they search for items on Amazon, they can click the PriceLocal button to request the item they want. Retailers have to sign up for the service to receive Amazon Prime price-match requests from local shoppers. “The consumer is doing a lot of research on Amazon, and that consumer is right in your neighborhood,” Chosid says. To learn more about the program, read the full story online at TheRedT.com/1SQamw8.

Orgill Shares Insights Into Tyndale Advisors, CNRG

rgill, Inc. has been one of the industry’s fastestgrowing distributors over the last several decades. During this time, the Memphis-based company began looking at ways it could help solve some of the challenges that it felt retailers were facing when it came to growing their operations. The result was the formation of a group named Tyndale Advisors. Hardware Retailing sat down in an exclusive interview with Ron Beal, Orgill’s president, CEO and chairman, to discuss the formation of Tyndale Advisors, the services it offers retailers, as well as the relationship between Orgill, Tyndale Advisors and the Central Network Retail Group (CNRG). Visit TheRedT.com/1QxZmEp to read the Q&A.

HARDWARE RETAILING | January 2016

Newsmakers

151 Million People Shopped Thanksgiving Weekend Thanksgiving weekend proved busy for retail, as millions of consumers shopped in stores and online. Based on the National Retail Federation’s Thanksgiving Weekend Survey, more than 151 million people said they shopped in store and/or online over the weekend. TheRedT.com/1RGEig2

National Hardware Show® Appoints Program Leader John Shields has joined the National Hardware Show® team to support the show’s attendee programs and extend its relationships with hardware and home improvement professionals. Shields comes to the National Hardware Show with more than 30 years of experience in the industry. He has worked with businesses such

as the Hunter Fan Co., Servistar and Stanley Hardware. TheRedT.com/1HWyuwD

fined $13 million. That dollar amount is the highest ever issued for a violation of the Lacey Act, which has been in place for 115 years. TheRedT.com/1OV7WeO

Are Robots Taking Over Retail? Robots are trending as retail employees, and a new model can be programmed to rapidly check an entire store’s inventory. This new robot on the scene is called Tally, and is the creation of Simbe, a San Francisco startup company. Simbe will offer Tally as a service, so stores can rent the robot for a monthly fee. TheRedT.com/1TD7XVL

House-Hasson’s Big Year for New Stores, Remodels This past year has been big for House-Hasson Hardware, which completed more new stores and remodels for dealers in 2015 than in any other year in the company’s history. TheRedT.com/1Y54Mr5

Lumber Liquidators Played Part in Wildlife Crime

Companies From U.S., Canada to Attend 2016 International Hardware Fair

Lumber Liquidators was convicted of violating the Lacey Act, which prohibits buying stolen wildlife and plants, and was

All eyes will soon be on Cologne, Germany. A few months from now, over 2,700 suppliers from 50 countries

AD INDEX Ajax Wire Specialty Co.............................................34 www.ajaxwire.com; 855-966-2529

Franklin Electric Company........................................21 www.redlionproducts.com;

Midwest Fastener ...............................................26-27 www.fastenerconnection.com; 800-444-7313

Allway Tools.......................................................25, 77 www.allwaytools.com; 800-422-5592

Franmar ......................................................................30 www.franmar.com; 800-538-5069

NRHA All-Industry Conference ....................................... 87 www.nrha.org; 800-772-4424

American Express ..............................................11, 13 www.americanexpress.com; 800-528-4800

General Pipe Cleaners, Div. of General Wire Spring Co. 37, 79 www.drainbrain.com; 800-245-6200

NRHA Health Insurance ...........................................67 www.cbigi.com/nrha-program; 888-201-7408

Apex Tool Group ........................................................7 www.apextoolgroup.com; 410-773-7800

Handy Hardware a World and Main Company ......... IFC www.handyhardware.com; 713-644-1495

NRHA Young Retailer of the Year ............................70 www.nrha.org/yroty; 317-275-9400

Bonide......................................................................35 www.bonide.com; 315-736-8231

House-Hasson Hardware Co. ...................................23 www.househasson.com; 865-525-0471

Old Masters .............................................................46 www.myoldmasters.com; 800-737-3436

Brave Products ........................................................20 www.braveproducts.com/HRM; 866-281-4421

HSI ...........................................................................45 www.hardwaresuppliers.com; 800-334-5625

Orgill Inc. .......................................................... 88-IBC www.orgill.com; 800-347-2860

Channellock Inc..........................................................1 www.channellock.com; 800-724-3018

International Home + Housewares Show 2016 .........33 www.housewares.org

Paladin Data Corporation....................................39, 63 www.paladinpointofsale.com; 800-725-2346

Delta Faucet Company...............................................5 www.deltafaucet.com; 800-345-3358

Iron and Oak ...............................................................75 www.ironandoak.com/HRM; 866-281-4509

National Hardware Show............................................57 www.nationalhardwareshow.com

Do it Best Corp. ......................................................2-3 www.independentsdoitbest.com; 888-364-8237

Jrco Inc. ......................................................................85 www.jrcoinc.com/HRM; 866-537-6216

RNO Exhibitions ........................................................BC www.osaexpo.com

Dosko ............................................................................31 www.dosko.com/HRM; 866-418-0474

K-CO Products LLC ...............................................48-49 www.kco-innovations.com; 949-276-5252

Starrett ...............................................................41, 61 www.starrett.com; 888-674-7443

Dutton-Lainson Company ...........................................34 www.dutton-lainson.com; 402-462-4141

Key Craze Inc..............................................................83 www.keycraze.com; 800-490-7539

STIHL Inc. ................................................................53 www.stihlusa.com; 757-486-9100

ECI Software Solutions ..........................................9, 73 lbmb.ecisolutions.com; 800-588-5128

Lavelle ...................................................................14-15 www.korky.com; 800-528-3553

UGL....................................................................17, 65 www.ugl.com; 800-845-5227

Epicor Software Corp. ..........................................19, 81 www.epicor.com; 888-463-4700

LFS Glove ...................................................................55 www.lfsglove.com; 800-426-8860

Woodland Scenics ......................................................36 www.pinecar.com; 573-346-5555

Fish Tales .................................................................32 www.bubbablade.com; 844-486-7265

Magna Industries Inc. .................................................47 www.magtorch.com; 800-969-3334

Wooster Brush Company .....................................43, 59 www.woosterbrush.com; 800-392-7246

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

HARDWARE RETAILING | January 2016

will showcase their hardware and DIY products at the EISENWARENMESSE International Hardware Fair (IHF). The show will take place March 6-8, 2016, in Cologne. TheRedT.com/1XZ4ojd

Sign of the Times: Orgill Name Goes Up on London, Ontario, DC

CANADA Maritime DC One of a Series of Turning Points for Home Hardware Home Hardware Stores saw growth through a series of turning points, one of which was the construction of a distribution center in Debert, Nova Scotia, almost four decades ago. According to Home Hardware CEO Terry Davis, it was an important step in helping the dealer-owned co-op grow to national status, giving it the ability to effectively serve Atlantic Canada. At the Hardlines Conference in October, Davis shared 10 key turning points for the company.

Orgill’s takeover of Chalifour Canada is now official. A new sign, bearing the name Orgill Canada, has appeared in front of the London, Ontario, warehouse that was formerly the Chalifour facility. The company is currently in the process of setting up its team and systems in Canada to work with the existing staff and operations at the London facility.

TIMBER MART Dealer Wins eBay Award for E-commerce Excellence The driving force behind the online sales growth at LumberMart TIMBER MART in Dartmouth, Nova Scotia, has won eBay Canada’s Exporter of the Year Award for 2015. LumberMart’s online sales and marketing manager

Kimberley Wotherspoon managed to increase online sales by more than 1,000 percent since she started a year ago.

Lowe’s Canada Hosts Quebec Vendors A group of 10 buyers, led by Igor Halencak, Lowe’s Canada’s head of merchandising and marketing, convened in downtown Montreal in November to meet with Quebec hardware and building materials vendors. When news of the planned meeting was first announced, it sparked conjecture about Lowe’s plans to expand into Quebec. Lowe’s Canada president Sylvain Prud’homme says this kind of outreach to Quebec vendors was an important step in that process. For the full story of each of these briefs, visit www.hardlines.ca/hardwareretailing.

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Last Word

Class is in Session. How’s it Going?

tudents from the NRHA Retail Management Certification Program’s Fall 2015 session are speaking up about why they find the program so valuable to their careers and the businesses they work for. If you are thinking about attending an upcoming class or have interest in enrolling a talented up-and-comer from your business, head to www.nrharmcp.com for more information or contact Scott Wright at swright@nrha.org or 317-275-9417.

What is your favorite part about the NRHA Retail Management Certification Program? “The people. Alongside the great instructors, the participants are far above average. Everyone in attendance is a progressive, well-respected individual from within each participating company. The sense of community was instantaneous. Regardless of size, location, or tenure, everyone is in full support of one another.” Jonathan Miller Miller Hardware Company, Georgia

What’s one thing you’ve learned through the course or from a fellow student that you’ve been able to implement in your business? “There are so many fantastic ideas being shared in this group, and there are many that I plan to take back and implement in the store. So far from the instruction, it is the overall idea that I have a more balanced knowledge of the business in general. We are working on some pricing changes for my Business Improvement Project, but I plan to clearly define a price-matching policy for the store based on group discussion.” Alyssa Tolzda Modern Home and Hardware, Ohio

What would you say to someone who is thinking about participating in a future class? “If you are coming into one of your first management experiences, or your first leadership position in a retail or building materials industry business, this course is a great way to speed you along the steep growth curve.” Lee Wilson HPM Building Supply, Hawaii

HARDWARE RETAILING | January 2016

Learn from the Leaders.

Do you have what it takes to be a leader in retail? Hear how forward-thinking individuals and companies are changing the retail playing feld in technology and leadership at the 2016 NRHA All-Industry Conference, held at the National Hardware Show®. For more information, contact NRHA at 800-772-4424 or email adewitt@nrha.org.

2016 NRHA ALL-INDUSTRY CONFERENCE

May 4-6, 2016 Las Vegas Convention Center

FREE For All Retailers!

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