Hardware Retailing January 2018

Serving Hardware, Home Center & Building Material Retailers

Saving the Store Overcoming Obstacles and Revitalizing Your Business 44

Making Installed Sales Work Harder for You 52

VOLUME 214 • ISSUE 1 • JANUARY 2018 • HARDWARERETAILING.COM

Get Special Orders Right the First Time 66

WEBSITE

JOIN MAILING LIST

FACEB

Orgill Makes Success Personal Reliable Relationship, Sharp Pricing

“Orgill’s people are smart and they care. You can call them any time and they always know who you are.”

Bobby Fuller l Fuller & Son Hardware, Arkansas l An Orgill customer since 2002

Promises Kept

Great People

“I love doing business with Orgill because I know that when

“We have a really close relationship with Orgill. It feels

stone because it’s a done deal.”

big operation, but you wouldn’t know it by the way they treat

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like we pretty much know everyone at the company. Orgill is a their customers. They are just very real people.”

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Market Benefits

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saw before. We also take advantage of the Market pricing to

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we are always competitive on price without giving up any margin.”

remain competitive and boost our margins.”

For more information about how Orgill can help you grow your business, contact us today!

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017

Fuller&Sons_Single.indd 1

12/19/17 8:06 AM

From the Source

By the Numbers

Retailer-led panels offer insights into how the industry’s leaders are innovating and succeeding in their markets. From young retailers to top guns, everyone has an opportunity to make their voices heard.

NRHA conducts exclusive research to show the growth of the industry and how independents are competing. Our methods ensure that the information presented at the conference is current and relevant.

In the Know

After the Show

Get the scoop on best practices in technology (smart home and competing online) and small business operations (retaining employees and the customer experience) from expert keynote speakers.

Everything on the NRHA Village Stage is presented with independent retailers in mind, so get ready to take actionable lessons back to your operation that will help you differentiate your business and move forward.

Saving the Store Overcoming Obstacles and Revitalizing Your Business 44

You need to hear this.

Do you know what it takes to compete as an independent home improvement retailer in today’s economy? Join us in Las Vegas, May 8-10, at the 2018 North American Retail Hardware Association’s (NRHA) All-Industry Conference, to hear firsthand from retailers, industry experts and channel partners to get the latest on trends and best practices to become a better and more profitable retailer.

FOR MORE INFORMATION, GO TO NRHACONFERENCE.COM

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VOLUME 214 • ISSUE 1 • JANUARY 2018 • HARDWARERETAILING.COM

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This program unites successful retailers from all wholesale affiliations, enabling the industry to celebrate the achievements and promise these leaders represent.

Submit a nomination today to see your operation’s rising star on stage this year.

“Uniting retailers is critical. NRHA and the Young Retailer of the Year program give retailers the opportunity to share ideas and come together.”

Bobby Heuser | Heuser Ace Hardware | 2017 Honoree SUBMIT A NOMINATION TODAY BY VISITING NRHA.ORG/YROTY.

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Saving the Store Overcoming Obstacles and Revitalizing Your Business 44

Making Installed Sales Work Harder for You 52

VOLUME 214 • ISSUE 1 • JANUARY 2018 • HARDWARERETAILING.COM

Get Special Orders Right the First Time 66

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Headquarters Staff PUBLISHING EXECUTIVE VICE PRESIDENT AND PUBLISHER Dan Tratensek

COMMUNICATIONS DIRECTOR OF COMMUNICATIONS Whitney Daulton SPECIAL PROJECTS EDITOR Liz Lichtenberger

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

FEATURES EDITOR Melanie Moul

ASSISTANT EDITORS Kate Klein Chad Husted Todd Taber MARKETING AND RESEARCH COORDINATOR Hilary Welter SENIOR DESIGNER Lynnea Chom

VICE PRESIDENT OF FINANCE AND BUSINESS SERVICES David Gowan

MULTIMEDIA DESIGNER Graeme Haase

MEMBER SERVICES

GRAPHIC DESIGNER Kelsey Truex

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

WEB DEVELOPER Kevin Trehan

MEMBER SERVICES AND MEETING COORDINATOR Kamille Stokes, 317-275-9419, kstokes@nrha.org

PRODUCTION SERVICES

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

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

PRODUCTION MANAGER Nancy A. Vondersaar

Aside from promoting sales, products and events on social media, consider posting shareable graphics or entertaining videos millennial customers will want to engage with.

Be Authentic and Unique Stay on customers’ radars by offering fresh, relatable ideas for how to use your products. For example, show them you stock everything they need for their next Pinterest project.

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

NATIONAL SALES MANAGER Lowell Huffman

SOUTHWESTERN REGION Jeff Flora, 638 W. 39th St., Kansas City, MO 64111; P.O. Box 419264, Kansas City, MO 64141; 816-561-5323; Fax: 816-561-1249; AR, KS, LA, MO, NE, NM, TX

Get Creative on Social

CIRCULATION DIRECTOR Richard Jarrett

SALES/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; AK, ID, OR, WA

Fuel customers’ desires to support independent businesses by hosting a local-focused event. For example, host a popup weekend event where local businesses showcase their products.

CIRCULATION

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

MIDWEST HARDWARE ASSOCIATION John Haka, 5000 Woodward Drive, Suite A, P.O. Box 8033, Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080

Become a Local Advocate

SALES AND PRODUCTION ASSISTANT Freda Creech

NRHA CANADA

STATE AND REGIONAL ASSOCIATIONS

According to a TimeTrade survey, 71 percent of millennials and Gen Zs say they prefer shopping at brick-and-mortar stores. Here are a few ideas for engaging with these customers.

PROFILES EDITOR Renee Changnon

PRESIDENT AND CEO Bob Cutter

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

Attracting Millennials to Your Business This Year

MIDWEST REGION MANAGER Chris Miller, 506 Citadel Circle, Westmont, IL 60559; 630-234-3272, Fax: 317-275-9403, chris@millermediainc.net WEST REGION MANAGER Jon Dawson, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9420, Fax: 317-275-9403, jdawson@nrha.org NORTHEAST REGION MANAGER Jason Harper, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9414, Fax: 317-275-9403, jharper@nrha.org GREAT LAKES REGION MANAGER Bill Mancuso, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9424, Fax: 317-275-9403, bmancuso@nrha.org SOUTHEAST REGION MANAGER Nick O’Connor, 136 N. Delaware St. #200, Indianapolis, IN 46204; 317-275-9409, Fax: 317-275-9403, noconnor@nrha.org CANADA John Magner, 500 Queens Quay W., #101 W. Toronto, Ontario M5V 3K8; 416-598-0101 x220, Fax: 416-598-9191, jmagner@yorkmedia.net

NRHA MISSION

The North American Retail Hardware Association’s (NRHA) mission is to help independent hardware stores, home centers and lumberyards, regardless of wholesale affiliation, become better and more profitable retailers.

NRHA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD Megan Menzer, Newton’s True Value, Cherryvale, Kansas EXECUTIVE VICE CHAIRMAN T.J. Comstock, Northwest Hardware, LLC, Billings, Montana DIRECTORS Greg Schlecht, Greg’s True Value, St. Francis, Wisconsin Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois Will Aubuchon, Aubuchon Hardware, Westminster, Massachusetts Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Retail Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50.00 year. Canada $75.00 year. All other countries $100.00 year.

(Air Mail $60.00 year additional). Single copy $7.00. The Annual Report issue can be purchased for $30.00.

David Dishke, Grand River Home Hardware, Caledonia, Ontario

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

Steve Fusek, Fusek’s True Value, Indianapolis

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

All editorial contents copyrighted 2018 by the North American Retail Hardware Association.

No editorial may be reproduced without prior permission of the publisher.

REPRINTS: Contact the Editorial Department at 317-275-9400 for price quotations. Printed in the USA.

2

HARDWARE RETAILING | January 2018

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

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Contents JANUARY 2018 | VOLUME 214 | ISSUE 1

66 OPERATIONS

How’s Your Special-Order Game?

Many independent retailers say their claim to fame is the ability to order absolutely anything for their customers.

But how many are living up to their word? We talked to retailers who have honed the ins and outs of handling special orders to ensure a seamless experience, from the initial inquiry to the delivery of the final product, no matter the scope or size.

74 PROFILE

44

OPERATIONS

A Comeback for the Ages

When a business is headed for the brink, it takes a retailer with a specific vision to bring it back. Such was the case for Osterville House & Garden in Osterville, Massachusetts, and Brantford Home Hardware in Brantford, Ontario. They were both approaching closure when new owners saw their potential.

Hardware Retailing spoke to the businesses’ owners to learn how they revitalized these operations.

Business Beginnings When Menards backed out of plans to build a chain store on the east side of Waterloo, Iowa, Allen Speller and his father Wendell put their dream of opening a hardware store into action.

Now, just over one year into their new venture, the Spellers are eager to learn more about the independent home improvement industry and how they can continue to spur the economy of their small Midwestern town.

Departments

52 CATEGORY SPOTLIGHT

Next-Level Store Services In-home installation and handyman services fit into the categories that independent home improvement retailers likely already offer. Learn how retailers have implemented these services as an added benefit for customers and an opportunity for add-on sales for the business.

64 INDUSTRY EVENTS

Willkommen to the International Hardware Fair Every two years, the International Hardware Fair takes place in Cologne, Germany. Hardware Retailing spoke to an independent retailer who is attending this year’s event, March 4-7, about the benefits of engaging with the industry around the world.

4

HARDWARE RETAILING | January 2018

06 . . . . . . . . . . . . . . . . . On the Web 08 . . . . . . . . . Independent Thinking 10 . . . . . . . .Taking Care of Business 14 . . . . . . . . . . . . . . . . NRHA News 20 . . . . . . . . . . . . . . . . . . . . . Trends 26 . . . . . . . . . . . . . . . . New Products 36 . . . . . . . . . . . . . . . . . . Checkouts 80 . . . . . . . . .Newsmakers/Calendar 83 . . . . . . . . . . . . . . . . . . Last Word

On the Cover James Coté took on a new challenge when he purchased and reinvented the previously struggling Osterville House & Garden in Osterville, Massachusetts .

NRHA photo by Kevin Trehan

An EvOLutiOn in thE #1 RAtED MAsOnRY WAtERpROOFER Original Oil Based DRYLOK Formula introduced

Latex DRYLOK Formula introduced holds back 10 psi

DRYLOK Extreme Formula a brighter white, mildew resistant formula holds back 15 psi

DRYLOK CLEAR introduced as the first waterproofer for floors

DRYLOK® Masonry Waterproofers bring performance and beauty to your masonry surfaces.

Whether it is a basement, concrete swimming pool, retaining wall or foundation there is a DRYLOK formula to fit your needs.

The Proven Waterproofers with a Proven History.

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On the Web

SOCIAL MEDIA

Give NRHA an Instagram Like NRHA is now on Instagram! In addition to keeping you updated with association happenings and independent business news and resources on Facebook, Twitter and LinkedIn, your trade association is giving you a visual look into industry happenings. Go to instagram.com/nrha_official to see the latest snapshots from NRHA.

RETAILER PROFILE

A Sisterly Hardware Bond Julie Buchkowski and Tricia Dauwalder-Luna have a special connection.

Not only are they sisters, but they have remained best friends while working for their family’s business, Paul’s Ace Hardware, as they have built families of their own. Read their story at TheRedT.com/pauls-sisters.

AWARDS

Do You Know a Phenomenal Young Retailer?

NRHA is now accepting nominations for its annual Young Retailer of the Year award. Open to anyone in the U.S. and Canada who’s 35 or younger, this awards program is dedicated to recognizing the industry’s brightest, most innovative and hardworking young professionals. If you know someone who fits the bill, visit nrha.org/yroty.

PRODUCTS

Submit a Stellar Nomination The ingredients to a strong nomination include meaningful professional accomplishments, detailed community involvement and proof of commitment to continuing industry education.

Visit TheRedT.com/yroty-nominate for tips on submitting a nomination.

Dan Tratensek Presents: Products From Space Who says home improvement stores can’t offer a piece of excitement from outer space or under the sea?

In his most recent video at TheRedT.com/space-products, Dan Tratensek, NRHA executive vice president and publisher, shows off unique products that one might consider to be out of this world.

SOCIAL MEDIA LINKS

@hardwareretail facebook.com/HardwareRetailing

6

HARDWARE RETAILING | January 2018

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We can provide banners and other marketing materials to help support your screening services.

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Independent Thinking

New Role, Same Mission

Y

“In the coming

months, I will be visiting with as many of you as I can to listen to your stories and see if there are ways NRHA can better serve you.

”

ou may be wondering why this doesn’t look like the same Independent Thinking column you have found on this page for the better part of the past decade.

Or, you might be looking at the picture on this page and saying, “That’s not Bill Lee.” Well, you’d be correct on both counts.

Bill Lee, the long-time president and CEO of the North American Retail Hardware Association (NRHA), retired at the end of 2017 after serving this association and independent retailers for more than 20 years. This month, I officially stepped into Bill’s former role.

In many ways, this column will serve as my formal introduction to many of you, and I can’t adequately express how honored and humbled I am to get the opportunity to help shape the future of your association and continue its strong legacy of service to the industry.

In the future, I will share this column space with other members of our team here at NRHA who will keep you up to date on our different programs and services and share the work they are doing to help your businesses succeed.

Having grown up and worked in a family business for much of my early career, I have a particular affinity for the work we do here at NRHA. My mother and father owned and operated an independent printing and publishing business in the heart of my hometown, Washington, D.C. Like many of you who grew up around small family businesses, I cut my teeth and learned the ropes of management, customer service, operations and finance as much around the dinner table as I did in the office.

During this time, I learned so much about how a business truly becomes part of a family. How the employees are like your brothers and sisters, how the lines between personal and business expenses can easily blur, and how the joys and stresses that take place from 8 to 5 don’t fit neatly into business hours.

I learned so much working with my family, and I really cherish that experience, but also like many of you, a time came when I felt my path took me away from the family operation, and I took a position with a larger corporate printing and publishing company. During this time, I got to see the stark differences (both positive and negative) between a family operation and a large corporation.

Eventually, all this experience led me to NRHA where I was tapped to run NRHA’s catalog publishing operation and then its sales organization.

Over the years, I gradually became more involved with all aspects of the association and gained a keen appreciation for our association’s mission—helping hardware stores, home centers and lumberyards, regardless of wholesale affiliation, run better and more profitable businesses.

This mission is more than just a statement for our organization and our employees.

It is central to everything we do, and from my desk to that of our newest employee, we are all dedicated to fulfilling this pledge.

In the coming months, I will be visiting with as many of you as I can to listen to your stories and see if there are ways NRHA can better serve you. In the meantime, please don’t hesitate to reach out to me directly with any questions or comments or if you just want to swap stories about the ups and downs of family business.

Bob Cutter, President and CEO

bcutter@nrha.org

8

HARDWARE RETAILING | January 2018

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Taking Care of Business

Call It a Comeback

W

“And even when you are dealt a bad hand, sometimes you just have to take your losses, learn from the cards you’ve seen and start mounting your comeback.

”

hile my father was a chemical engineer by trade, there was little secret that his preferred vocation was something a bit less savory than you might find in any laboratory: gambling.

In truth, you could say my father was a semiprofessional gambler. This isn’t an exaggeration; it’s an apt designation for anyone who has to list gambling earnings on his taxes, which my father did. Blackjack, baccarat, poker, horse racing and later in life, competitive bridge (yes, that’s a thing). Just about anything where a wager was involved, my father was a willing participant.

Because of these pursuits, my dad, and by extension our family, was used to seeing our fortunes quite literally rise and fall on the turn of a card.

I think my dad’s love for the “gambling arts” (my term) made us all very familiar with the concept of how finances can ebb and flow. Even during the long stretches when the cards weren’t falling his way, there is one thing that kept my dad going—the inevitable comeback!

At times, it seemed like the longer he was on the schneid, the more rewarding it would be when the tides turned. And while I know that there is a pretty big difference between playing cards in some smoky backroom and running a retail operation, there are also a lot of similarities.

In retailing, like gambling, sometimes things beyond your control just happen that hit your business the wrong way. Other times, it may be the result of a series of poor decisions. But in either case, a shrewd operator will figure out how to mount a comeback from the brink of collapse.

And when the comeback is complete, the rewards are that much sweeter.

It was the famous coach and motivator Vince Lombardi who once said, “The real glory is being knocked to your knees and then coming back.”

So, in this month’s issue of Hardware Retailing, we take a look at retailers who have brought businesses back from the brink of failure.

We will learn how they turned their operations around, and hopefully, by reading about the steps they took to go from the bottom to the top, you can see how their processes might apply to your own operation.

I know it may seem like some operations never experience a precipitous drop in business and whose owners just find ways to keep the train moving forward. But in reality, even the most successful businesses will eventually face a crossroads where the decisions made by the owners and management team could mean the difference between success and insolvency.

The new year is a good time to read some of these inspiring stories to both learn from these owners’ actions and take solace in the fact that there aren’t too many obstacles that planning, determination and hard work can’t help your business overcome.

And even when you are dealt a bad hand, sometimes you just have to take your losses, learn from the cards you’ve seen and start mounting your comeback. That’s what my dad would have done!

Dan M. Tratensek, Publisher

dant@nrha.org

10

HARDWARE RETAILING | January 2018

DRIVEN TO BE THE BEST.

PUTTING YOUR CUSTOMERS FIRST. At Do it Best Corp., we champion the customer experience. From our member-owners to their loyal customers, and even those new to the ease and convenience of Do it Best shopping, we aim to deliver personalized service unmatched in the industry.

By combining decades of experience helping our members serve their communities with leadingedge integrated marketing strategies, we’ve perfected ways to not only grow your customer base, but to increase purchase frequency and total spend per transaction. With proven programs like Best RewardsSM, we help you strengthen customer loyalty and build on customer purchase patterns with targeted offers and promotions that appeal directly to their year-round needs. Accelerating your business through smart marketing is easier than you think.

Our Loyalty Marketing team is excited to share their expertise and the very latest strategies to engage your customer base. When you succeed, we succeed.

IT’S WHAT DRIVES US TO BE THE BEST.

“Understanding what makes your customers tick helps us fine tune offers that speak directly to

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

them. With high redemption rates on Best Rewards promotions, we know it works.”

—Haley Toliver and Justin Hanford, Loyalty Marketing Specialists

NRHA News

The Latest on Payment Processing Technology

W

ith technology rapidly developing, there are some major subjects related to payment processing that business owners need to be paying attention to as we enter the new year. To get clarification on some of the most talked about topics in the payment industry, Hardware Retailing got in touch with representatives

Protecting Your Business From Fraud

Businesses that accept card payments should follow these guidelines to reduce the likelihood of credit card fraud and data breaches, according to Clearent.

• Follow PCI data-security standards. Complete the self-assessment questionnaire and any required vulnerability scans, and stay current with all assessments. If you experience a data breach and are not PCI-compliant, you could face penalties.

• Adopt EMV technology. Chip cards are meant to reduce fraud by encrypting all information between the card and the reader, while magnetic stripe cards contain analog data that’s easy to intercept and steal.

• Consider a PCI-Validated Point-to-Point Encryption (P2PE) solution. P2PE protects data as it moves through the payment process until it reaches a safe decryption environment. This makes data undecipherable and worthless to fraudsters.

• Develop a data breach action plan. No system is foolproof. Preparing for a data breach in advance can help you move on after one occurs by mitigating the financial damage of cybercrimes.

from North American Retail Hardware Association (NRHA) Business Services partner Clearent, a company dedicated to providing retailers with credit card processing and payment solutions. For more expert insight on topics like EMV chip card technology, PCI standards and alternative funding, visit TheRedT.com/payment-processing.

Your Payment Processing Information Checklist

According to Clearent, there are three major topics retailers should be paying attention to now.

• EMV chip cards. Nearly all customers have them, and by accepting chip cards, you won’t be financially liable for counterfeit card fraud, and you’ll reduce your liability in the event of a chargeback dispute.

• Near Field Communication (NFC). This is the technology behind Apple Pay, Google Wallet, Samsung Pay and any other contactless payment methods. This technology allows you to take payments quickly, and your customers can complete payments by tapping their phones on equipment.

• Payment Card Industry Data Security Standard (PCI DSS). These standards are a set of technical and operational requirements to protect cardholder information. PCI DSS are the rules of engagement for processing payments. PCI aims to ensure that all entities accepting, storing, processing or transmitting card information maintain a secure environment. When you stay compliant, you are part of the solution and limit your threat of data compromise and breaches.

Reducing Payment Processing Costs The most obvious way for a business owner to reduce costs, according to Clearent, is to make sure your current payment processor isn’t overcharging you. To confirm your costs, compare a recent statement to your merchant agreement to make sure you understand every charge. If you don’t, contact your sales representative for clarification.

14

HARDWARE RETAILING | January 2018

You can also contact a different payment processor for a statement analysis.

For more information on Clearent’s products and services, and for more educational content on payment processing, visit clearent.com.

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NRHA News

Training, Online Competition Among Topics at Recent NRHA Events

R

etailers, manufacturers, distributors and other industry professionals now have new ideas on how to improve their businesses to strengthen the independent home improvement channel after two NRHA events that took place on Dec. 6 and 7 in Chicago: the Women’s Leadership Roundtable and the State of Independents Conference.

“The consumer is stimulated constantly, so if they walk in your store and you’re not entertaining them or the packaging isn’t just right, they’re not going to go with your product.

”

—Megan Menzer, Newton’s True Value

State of Independents Conference In its third year, NRHA’s State of Independents Conference once again presented research on important industry topics like growth challenges and opportunities, online behavior and the state of the industry in an effort to help channel partners better understand what business owners need to succeed.

In addition to research presentations, the conference delivered four retailer-led panels during the one-day event.

A primary takeaway from the conference is that independent retailers need to differentiate their businesses in order to compete in the new, ever-changing retail landscape.

“Retail isn’t what it was just five years ago,” Megan Menzer, owner of two Newton’s True Value stores in southeast Kansas, says. “What a consumer buys today has nothing to do with what they buy next week or next month. The consumer is stimulated constantly, so if they walk in your store and you’re not entertaining them or the packaging isn’t just right, they’re not going to go with your product.”

In order to effectively compete for customers in their local markets, some retailers have enhanced their online presences and utilized technology in their stores.

Dan Tratensek, NRHA executive vice president and publisher, echoed the value of an online presence. He feels strongly that independents have experience navigating challenging retail environments and will come out on top.

Women’s Leadership Roundtable

Retailers, manufacturers and distributors gathered to hear research and retailer-led panels at the 2017 State of Independents Conference.

16

HARDWARE RETAILING | January 2018

On the day before the State of Independents Conference, NRHA hosted its second annual Women’s Leadership Roundtable, during which attendees discussed the value that trades bring to the industry and the importance of training employees along with a variety of other conversations relating to women in leadership positions throughout the independent home improvement channel.

The group included retailers, wholesaler representatives, manufacturers and other members of the industry who gathered for a full day of conversation.

The group agreed that support in the industry for developing the next generation of tradespeople is vital because trades represent a large customer base for many independent home improvement businesses.

Additionally, the roundtable attendees discussed the challenges of training and retaining their own employees in a job market with rising minimum wages and low unemployment. The group shared strategies for finding qualified, engaged employees who understand the demands of working in retail, including using a recruiting company; offering bonuses for employee referrals; and posting jobs online and in community areas.

Participants also talked about how to encourage other women to see home improvement retail as a viable career option, and the group agreed the tide is changing for women in the industry.

Beautiful products to inspire your customers.

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

Visit go.strongtie.com/outdooraccents or call us at (800) 999-5099.

4' Display

3' Display © 2018 Simpson Strong-Tie Company Inc. OADISP17

NRHA News

Retailers Are Using Instagram to Reach Customers

A

s a new member of the Instagram community, NRHA follows hundreds of home improvement retailers to get a sense for how the industry is using the popular social media platform. Below is a list of the types of posts NRHA has seen from home improvement companies on its Instagram feed.

Sales and Event Promotion • Graphics or photos about online and in-store sales events • Special event invitation graphics • Photos of circulars or other designed graphics promoting sales on individual products

Engaging Content • Lighthearted and fun GIFs, images and quotes everyone can relate to, such as holiday-themed posts • Contests, such as an Instagram scavenger hunt that invites customers to participate in sharing photos in your store

18

HARDWARE RETAILING | January 2018

Hart’s Hardware in Moriarty, New Mexico, uses Instagram to share information with customers about monthly sales.

Product Promotion • Niche products • Seasonal items • New products • Products displayed inside a home, giving the customer an idea of how the item(s) would look in their own house • Products in use, educating the customer and displaying the product’s quality • Creative displays with intriguing products

Putting a Face to the Business • Group or individual staff photos • In-store event pictures • Customer engagement, like a contest winner or a customer wearing a store-branded shirt This list shows only a handful of the types of photos and videos retailers are posting on Instagram in an effort to engage with their customers. If you’re not on Instagram yet, consider starting an account for your business and following your fellow independent businesses for more inspiration.

To stay up-to-date on association news and to access resources, visit NRHA at instagram.com/nrha_official.

Ace Hardware of Brunswick in Troy, New York, gives customers a gift idea for someone on their list (left). Geerlinks Home Hardware introduces it’s St. Thomas, Ontario, customers to its staff members on Instagram (right).

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19

Trends Getting in on the Home Staging Game Real estate agents advise homeowners who want to improve their home’s selling potential to do some interior staging—and some of that staging includes minor remodeling projects, according to research from the National Association of Realtors.

Applied to Retail Your home improvement business likely stocks most, if not all, of what homeowners need for some of the highly recommended home staging projects.

Those products could include closet organizational systems and plastic storage bins, cleaning supplies, paintbrushes and other items needed for small projects.

The benefits of home staging can include homes selling more quickly and going for higher prices, the National Association of Realtors shows in its 2017 Profile of Home Staging study.

Five of the most-recommended projects for home staging include decluttering, full house cleaning, making minor repairs, painting walls and touching up paint, the research shows.

Reach out to local real estate agents to see if you can form partnerships, so those agents know to refer homeowners to your business or turn to you themselves if they do the home staging for their clients. Real estate agents may provide you with some niche selling opportunities you didn’t consider previously.

The most common rooms homeowners staged in preparation for selling are the living room, kitchen, master bedroom and dining room, the study says.

In addition, set up a home staging display in your store with a sign suggesting projects and products homeowners will need to get their houses polished up and ready to sell.

Turning the Spotlight on Staging The Top Home Staging Projects Recommended by Realtors®

Decluttering

93%

89%

Cleaning Entire Home

Making Minor Repairs

Painting Walls

68%

Touching Up Paint 0%

20%

75%

40%

62% 60%

80%

100%

Source: 2017 Profile of Home Staging, National Association of Realtors FOR SALE

20

HARDWARE RETAILING | January 2018

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Trends PMI, Consumer Confidence Make Gains

“Confidence in Texas and Florida decreased considerably, as these two states were the most severely impacted by Hurricanes Harvey and Irma,” director of economic indicators at The Conference Board Lynn Franco says.

At a seasonally adjusted rate 6.0

Existing-Home Sales (in millions)

The nation’s third-quarter 2017 consumer confidence levels rose nearly 20 percent over third-quarter 2016, indicating that consumers feel confident about the overall economy. Some regions ravaged by hurricanes showed measurable consumer confidence dips, however.

Existing-Home Sales

The purchasing managers’ index (PMI), grew 14.5 percent over third-quarter 2016 levels. Any PMI figure above 50 represents growth in the manufacturing industry.

The Institute for Supply Management, the group that compiles this figure, says it was bolstered by an uptick in hiring and new orders across the country.

5.5

5.0

4.5

4.0

O 2016

N

D

J

F

M

A

M

J

J

A

S

2017

Months

Manufacturing and Consumer Confidence Show Growth Economic Metrics

Definition

Housing Starts (in thousands)1

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

Consumer Confidence2

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

Existing-Home Sales (in millions)3

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

Existing-Home Price (in thousands)3

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

Purchasing Managers’ Index (PMI)4

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

Q3 2016

Percentage Change

Q3 2017

1,150 1,164

100.7 120.3

0% 5.39

$240 $252

5.0%

51.2

14.5% 58.6

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

HARDWARE RETAILING | January 2018

19.5%

5.39

All numbers are derived from July, August and September data.

22

1.2%

Happy New Year!

Let’s Keep Winning Together

2017 was certainly a year to remember. STIHL launched the largest range of new products in our history, entering new categories like robotic mowers and pressure washers — offering STIHL customers even more options. In addition, we’ve made significant investments in our manufacturing and regional distribution operations to expand our ability to support our customers. And we continue to invest heavily in training programs for our employees, dealers and the industry, including workforce development initiatives within landscaping and tree care organizations.

As a result of the shared efforts of our employees and STIHL servicing dealers, in 2017 STIHL gained market share in both the gas and battery segments.

Now with a winning combination of people, products and programs, 2018 promises to be another exciting year of growth and success. The STIHL brand has never been stronger and it’s the proven power of our Real People, STIHL People who will continue to make us successful. From our employees who produce our equipment to STIHL dealers who provide sales and service, to your customers who use STIHL products every day, together we have the power to grow.

Let’s keep winning together.

To become a STIHL dealer: STIHLusa.com/dealers

Bjoern Fischer – President, STIHL Inc.

“Since changing to Midwest Fastener, we’ve been putting the screws to the competition!”

Mark and Al Tomchek, Tomchek Ace Hardware, Waukesha, Wisconsin

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

800.444.7313

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New Products

“This pocket flashlight is

versatile and durable, with a belt clip and magnet.

It works anywhere and is bright for its size.

”

2

—Kelsey Bova, Bova’s Hardware

“We think this will be a

very high-quality shoe for customers. We want to have the best selection in the workwear department.

1

”

1. Pocket Flashlight

2. Work Boot

The LiL Larry Power Pocket Light features a 250 lumen worklight in a six-inch tall penlike body. The light has three settings: high, low and emergency red flash. It is water- and impact-resistant, has a nonslip grip, protective LED housing, a steel belt/pocket clip, and it includes a magnetic base.

Power is supplied by three AAA batteries, sold separately.

The Threshold Waterproof Work Boot is made with seamed seals for water protection, a slip-resistant outsole that exceeds ASTM standards and full-grain leather for abrasion resistance.

NEBO 800-255-6061 or nebotools.com

26

—Michelle Telfer, Mesquite Lumber Ace Hardware

HARDWARE RETAILING | January 2018

Cat Footwear 866-699-7375 or catfootwear.com

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

“This product made us realize how difficult the snap-on lids are to get off. They are a great upgrade.

”

—Steve Johnson, Mahoney’s Building Supply

4

“This line, which includes the

3

cookie stamps and ice cream sandwich molds, features fun new items for our customers.

”

—Matt Bradbury, Bradbury Kitchen and Home

3. Bucket Lids

4. Cookie Stamps

GAMMA Seal Lids turn buckets into airtight storage containers. Available in versions 5.0 and 2.0, the 5.0 fits buckets with a 12-inch opening ranging from 3 1/2 to 7 gallons.

The 2.0, available only in white, fits most buckets with a 2-gallon capacity.

The Tovolo Cookie Stamps imprint cookie dough with one of three phrases: “Homemade,” “Milk & Cookies” and “Made With Love.” The stamps are dishwasher-safe, food-safe and BPA-free. The three interchangeable discs stack together and store on the handle.

GAMMA2 760-734-4003 or vittlesvault.com

Tovolo 206-633-6066 or tovolo.com

January 2018 | HARDWARE RETAILING

27

New Products

5

RETAIL READY SCAFFOLDING FOR YOUR STORE

• • •

Complete mason frame scaffold system Best sellers, low SKU count all fit in 8’ bay Special order programs available

6 • • •

Widest product offering Best in class packaging Best in class signage

5. Smartphone Stud Finder The Walabot DIY is a smartphone attachment that can see through walls to find plastic and metal pipes and studs and wires. It can detect objects 4 inches into concrete and drywall. The user can adjust sensitivity, use multiple sensing modes, map large areas and take snapshots for offline analysis. It is currently only compatible with Android phones.

Vayyar Imaging 516-243-1273 or walabot.com

6. All-Weather Speaker BECOME A METALTECH DEALER: WWW.METALTECH.CO

DISTRIBUTION CENTERS CA - FL - IL - OH - PA - TX - LA 28

HARDWARE RETAILING | January 2018

The Kicker BF100 speaker is the smallest in the Bullfrog® line of speakers. It is IP67-rated to float and can be submerged in a meter of water for up to 30 minutes.

The speakers are resistant to dirt, sand, dust, mud, rain and snow. It has a 12-hour battery life and can connect through Bluetooth®, USB port or through an auxiliary cable.

Kicker 405-624-8510 or kicker.com

7

8

7. All-in-One Tool

8. Installed Wireless Charger

™

The FlexiClick 5-in-1 Drill/Driver System combines 12-volt power with four attachments: a 3/8-inch keyless chuck, a locking bit holder, a right-angle drill attachment and an offset angle attachment. Each attachment comes on and off with a one-click system and delivers 265 pounds per inch of maximum torque and a maximum speed of 1,300 rpm.

The Federal Brace Counter Mount Cellphone Charger allows a phone equipped with wireless charging technology to charge while sitting on a counter or desk. Built as an accessory to the Foremont Counter Mounted Supports, the charger can also be installed in other cabinets or desks with the proper modifications to allow for the charger and wiring.

Bosch 877-267-2499 or boschtools.com

Federal Brace 877-353-8899 or federalbrace.com

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allwaytools.com January 2018 | HARDWARE RETAILING

29

New Products

10

9

9. Gripping Pliers

10. Concrete Mixers

KNIPEX Tools pliers series features universal, long-nose and welding gripping pliers. The universal gripping pliers adjust to square, round, hex and flat materials. The long-nose gripping pliers have narrow, long jaws. The welding gripping pliers have moveable jaws with clamps for cumbersome workplaces.

YARDMAX Concrete Mixers are designed for small- to medium-size projects in any type of weather. It can be assembled by one user in 30 minutes and comes with a fully assembled motor and gear box. The mixer comes in two sizes, 1.6 cubic feet and 4 cubic feet, with a 100-pound capacity for the smaller version and 275-pound limit for the larger.

KNIPEX Tools 847-398-8520 or knipex-tools.com

YARDMAX 844-927-3629 or yardmax.xom

11

11. Foam Adhesive ®

The TYTAN Professional Foam Bond 60 Foam Adhesive can bond architectural foam shapes and foam panels in 60 seconds and can set and secure after five minutes. It performs on damp surfaces and can bond with a range of popular construction materials. It also features a low-odor and solvent-free formula.

TYTAN 855-448-9826 or tytan.com

12

12. Tesla Technology Lightbulb The Finally lightbulb produces a unique light color spectrum using Tesla technology, resulting in high energy efficiency, while also producing a unique color spectrum that LED and other types of bulbs cannot. It is available in 60-, 75- and 100-watt varieties. All are classified as Warm White and have a lifespan of at least 15 years.

The Finally Light Bulb Co. 855-696-2852 or finallybulbs.com

Boost Your Transaction Size ‰

NRHA’s training course covers hundreds of products across core hardware and building material categories, giving employees the knowledge they need to suggest add-on sales to every customer.

FOR MORE INFORMATION, GO TO NRHA.ORG/TRAINING

‰

USED BLADE COMPARTMENT

‰

FEEDS 1 BLADE AT A TIME

SEB100AD

allwaytools.com January 2018 | HARDWARE RETAILING

31

New Products

13

14

13. Cabinet Appliance Lift The Soft-Close Mixer/Appliance Lift brings small kitchen appliances up to 45 pounds out of a base cabinet to counter height. Soft-close dampers ensure smooth and quiet operation. The lift is compatible with face-frame or frameless cabinetry and supports shelves at least 3/4-inch thick and no longer than 20 1/2 inches. It includes three spring settings for different weights.

Hardware Resources 800-463-0660 or hardwareresources.com

One Can To Rule Them All Rust Patrol® is a revolutionary rust preventative, lubricant, penetrant, and moisture displacer. It does all of these things and does them extremely well! Active at the molecular level, Rust Patrol® saves your customers time and money by working more quickly, lasting longer, and with less product. Rust Patrol® truly is “One Can To Rule Them All”.

Aidant Brands®

For information and a FREE sample, visit

32

HARDWARE RETAILING | January 2018

The Frigidaire Gallery® SmudgeProof™ Black Stainless Steel Collection adds a new finish to multiple kitchen appliances. The product line includes microwaves, refrigerators, ranges, ovens and dishwashers. The finish is designed to be stylish while easy to clean.

Frigidaire 800-374-4432 or frigidaire.com

rustpatrol.com/january Follow RustPatrol on:

14. Black Stainless Steel Appliances

Prevent Rust • Lubricate • Penetrate

15

16

15. Frying Spatula

16. Cold Weather Gloves ™

®

The Ultimate Frying Weapon by FireDisc is a large spatula designed to manage a large amount of food while frying, grilling or sauteing. The oval-shaped drain holes are designed to drain grease and oil faster than round holes. It is made with heavy-gauge stainless steel with a rubber molded handle for high heat. Is designed for use with the FireDisc® Grill.

FireDisc 281-206-2678 or firedisccookers.com

The Cold Weather Work Gloves by MidWest Gloves & Gear are designed with Thinsulate™ lining to retain heat, while also being durable for outdoor activities and work, like construction and farmwork. They feature a plaid wool pattern on the back and palm, while the knuckles are designed with suede leather.

MidWest Gloves & Gear 800-821-3028 or midwestglove.com

Reduce Employee Turnover

‰

Safer Cutting At The Touch Of A Button

‰

When you invest in training your employees, you show them that they are valued members of the team, which improves their job satisfaction and loyalty to your business.

‰

SWK

‰

FOR MORE INFORMATION, GO TO NRHA.ORG/TRAINING

SPRINGS OPEN AT THE TOUCH OF A BUTTON

‰

PATENTED

allwaytools.com January 2018 | HARDWARE RETAILING

33

New Products

17

18 American Made & Profitable For Over 80 Years

17. Picture Frame Mount The Gallery Magic® Earthquake Pack includes specially designed picture hanging hardware to hold up to a 15-pound frame that can withstand a 7.5 magnitude earthquake. It protects both the frame and wall from damage.

It allows the user to move the frame up to 3 inches while still remaining mounted. When hit with larger forces, like an earthquake, it remains in place.

Designed and made in the U.S. Wisick Creative Products 508-918-4579 or mygallerymagic.com

18. Sliding Door Hardware With a variety of clearly marked spring assortments, Ajax offers your customers ease of selection for their specific needs. Each assortment comes in their own unique case. Our storage cabinets and kits, provide assortments of Steel Lock, Brass Lock, Music Wire, Stainless Steel, Extension, Compression and more, each making dispensing efficient and economical.

Ask for our Product Catalog which provides product descriptions and size specifications.

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

34

HARDWARE RETAILING | January 2018

The Soft-Close Wall Mount Sliding Door Hardware can add 14 square feet of floor space to a room by eliminating a conventional swinging door. It works with most metal or wooden doors 1 to 1 3/4 inches thick, up to 60 inches wide and weighing up to 200 pounds. The hardware slows the door’s travel speed, enabling quiet operation and preventing the door from slamming.

Johnson Hardware 800-837-5664 or johnsonhardware.com

19

20

19. Septic Tank Cleaner

20. Magnetic Doorstop

EcoNow Septic Oxy-Tabs use OXY-TAB technology, which provides oxygen and beneficial bacteria to treat a septic tank, digest waste, help prevent backups and eliminate odors. The tabs work from the bottom up, treating heavier solids and covering the entire septic tank. Septic Oxy-Tabs are nonhazardous.

The Fantom Doorstop Solution uses magnet technology to create a doorstop either inside the door itself or hidden below floor level. It uses an in-floor pin that is activated by the magnet concealed within the door. Once activated, the pin strikes the striker plate, which stops the door and holds it firmly in the open position.

EcoNow Solutions 516-248-3553 or econowsolutions.com

HGT Innovations hello@fantomstop.com or fantomstop.com

Improve Your Customer Service

?

NRHA’s online training course equips employees with a foundation of product and project knowledge, helping them become the experts customers seek when they shop a home improvement store.

FOR MORE INFORMATION, GO TO NRHA.ORG/TRAINING

“SHARPER THAN A GRIZZLY’S CLAW”

WRP

• •

allwaytools.com January 2018 | HARDWARE RETAILING

35

Checkouts EVENT

Working on the Next Generation

I

n today’s fast-paced world, the joys derived from hand-crafted items can seem to have fallen by the wayside. With even the smallest of consumer items increasing their levels of technology, the old-school nature of a woodturning table and the skills to use it seem from a distant past.

Jeff Slaton, manager of Rockler Woodworking and Hardware in Kennesaw, Georgia, is working to change that perception, starting with the younger generation. His location recently held a Kid’s Day event to introduce the seemingly lost skills of woodworking and hand-tool use to the store’s youngest customers.

“We tied it into the holidays, with the whole idea of elves and wooden toys. We had a professional Santa Claus come in and made a whole day of it for the kids,” Slaton says.

“It’s unfortunate that people don’t build at a young age as much as they used to. We have to take every opportunity to develop the next DIY customers.”

The event ended up being far better attended than Slaton had expected, but the staff made sure to put on the displays they had planned and supply the approximately 40 attendees with the tools they needed. The kids were able to work with kits designed for their age, using precut wood pieces and hand tools to build items like birdhouses.

Rockler Woodworking and Hardware also partnered with some area organizations and individuals for the event.

Members of the Woodworker’s Guild of Georgia put on demonstrations and passed on their knowledge. Area wood artist Nick Cook, who has helped the local school system with its arts program and is renowned for his woodturning skills, also attended.

Technology wasn’t completely absent either, as Cook showed the kids how to make a wooden speaker for their smartphones using the skills and tools he had on hand.

Other demonstrations included spinning tops and building blocks fashioned using a router table.

“I have friends in their early 30s that look in awe at some of this stuff because they were never exposed to that skill set,” Slaton says. “We want to open everyone’s eyes so they realize this is a fun and easy-to-learn skill. These kids got to see something they normally buy off a shelf created right in front of them, and for some, it was the first time they had a hammer in their hand. That’s a powerful moment.”

The first Kid’s Day event at Rockler Woodworking and Hardware in Kennesaw, Georgia, brought a younger generation into the store to learn about woodworking tools and skills. The retailer teamed up with a local artist and a woodworking association.

Looking for creative ways to engage customers? Whether it’s promotions, merchandising or special events, we cover it here.

Have an idea? Contact Liz Lichtenberger at llichtenberger@nrha.org to have your story considered for publication.

36

HARDWARE RETAILING | January 2018

The International Home + Housewares Show features hundreds of exhibitors offering the latest cleaning & organizational solutions, closet & clothes care, bath accessories and unique pet-care items.

March 10 - 13 • Chicago Free Badge Registration at

www.housewares.org

Checkouts

CATEGORY

Bringing a Little Outdoors Inside

C

reativity in small spaces is a part of every retailer’s experience, but there’s more to the skill than shifting product selections and managing backroom storage.

In the search for a new workshop idea for Cole Hardware in San Francisco and Oakland, California, marketing manager Julia Strzesieski decided a low-cost option that still allowed a large amount of creativity would be best. She decided on crafting terrariums, which she felt could be fun for groups and families, while giving each participant their own project to take home.

“They’re really simple to make, and with the kinds of supplies we offer, each can look very different. The customers could use sand, soil, charcoal, plants and even moss to change up their terrarium to their tastes,” Strzesieski says. “We try to have as much time with customers as we can so we limit the number of participants, but it sold out really fast.”

The total cost to create the terrarium is $10. Other items used in the creations were seashells and colored rocks to add a pop of color. Participants also brought in items from home they could use.

Attendees at Cole Hardware’s terrarium event assembled their own display with items from the store or from home.

MERCHANDISING

PVC Comes to Life in Window Displays

T

Every August, Main Street Ace Hardware greets thousands of people coming to town for the local county fair with its PVC creations.

38

HARDWARE RETAILING | January 2018

here’s a colony of PVC people living in the windows of Main Street Ace Hardware. The store, in the heart of downtown Bowling Green, Ohio, has large windows that face the street. Staff use items commonly found around the hardware store to keep the area decorated.

“We’re on one of the busiest pedestrian streets, so we put these windows to good use,” says sales associate Kevin Pierce. “We create displays that acknowledge seasonal changes or promote downtown events and holidays.”

For example, during the Black Swamp Arts Festival, the largest downtown event of the year, passersby can see artwork by employees and other local artists. Around Thanksgiving, there’s a holiday table decorated with hardware-inspired accessories, such as candles made from toilet floats.

But one of the most popular recurring themes of the window displays is a colony of stick figures created with PVC pipe. “Occasionally our displays show one of our PVC people ‘on the job,’” Pierce says. “One window in particular was changing every couple of days to show how to install a toilet.”

In another instance, when the local college football team was playing a rival team, the window display included a kicker, cheerleaders and goalposts, all made of PVC.

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Checkouts

OPERATIONS

Music in the Air

M

usic can be one of the great unifying forces in the world. Whether a huge concert venue or a night out at the theater, musical performances bring fans together for a good time and good vibes.

Not all performances need to be such large productions, however, and Cottin’s Hardware and Rental in Lawrence, Kansas, has exemplified that with its community piano. An upright piano donated by a customer and music teacher sits right next to the front door of the store, which is located on a main thoroughfare through the college town.

“It was a gift that we were happy to accept, and it’s become something of a focal point for the store and our customers. It’s not unusual to hear someone sitting down out there and just playing around with some tunes or songs,” manager Aaron Hicks says.

During warm months, the business often leaves its front doors open to both catch a breeze and the sounds of the different players who frequent the outdoor music machine.

Some regular customers like to play a bit when they come to shop, while others frequent the store solely to have some time on the keys.

The community piano out front of Cottin’s Hardware and Rental is available for anyone to play.

EVENT

The Doctors Will See You Now

E

veryone has problems, in health or in life, that need to be fixed. Symptoms are easy to see, but finding out the root cause can be the tricky part. Diagnosing a home’s problem areas and their causes is no different, and the staff at Randall Lumber and Hardware in Taos, New Mexico, has come up with a creative way to illustrate this concept for customers.

The staff at Randall Lumber and Hardware dresses up like nurses and doctors to help treat homeowners’ house ailments.

Each year, the store breaks out the lab coats, scrubs and stethoscopes to treat the ailments of its community’s homes and businesses during its Home Therapy Event. The event is a more condensed version of the business’s annual customer appreciation event, says Hilario Serrano, director of retail operations and marketing for Randall Lumber and Hardware.

The business invites vendors to display their products and help educate community members on solutions to home problems.

“It’s Home Therapy because, if your house has an ailment, we have the fix. We are the house doctors for you,” Serrano says.

Vendors set up booths at the business’s primary location along the main road of the Taos historical community, allowing customers easy access to knowledge and products.

Each customer receives a patient card that can be filled out with a home address, and each vendor a customer visits will stamp their card. Once fully stamped, the customer can turn in their card for a prize, such as a small toolkit.

Serrano says there are also drawings throughout the day to show appreciation for customers.

“It encourages customers to really take a look at what we can offer them in regard to their homes, and maybe some projects they’ve put off because they don’t know how to fix it,” Serrano says. “It’s just one of our events aimed at showing appreciation for a community we have been in for three generations of family ownership.”

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41

CUSTOMER SUCCESS STORY

LOA BUILDERS SUPPLY GREG PACE, OWNER OF LOA BUILDERS SUPPLY

RockSolid™ and RockSolid MAX™keep building materials supplier on a strong growth track

L

oa, Utah, is not exactly one of the country’s great growth markets. It’s a small town in central Utah with a population of just over 500 and an economy driven largely by agriculture and the town’s location in the heart of some of the most spectacular natural resources in America. Just ask Greg Pace at Do it Best member Loa Builders Supply. Since taking over Loa Builders from his parents in 2014, Greg has embarked on an ambitious expansion track, opening a second store in Escalante some 80 miles to the south and adding both a rental center and door and window installation to the mix.

Managing expansion on multiple levels can be challenging for any business. The good news for Greg and his team is that thanks initially to RockSolid™, and more recently to RockSolid MAX™ building materials software, they have a technology platform to keep them healthy. It can also match them stride for stride as they grow.

ROCKSOLID SOFTWARE ALLOWS EXPANSION TO A SECOND STORE It was Greg’s expansion plans, in part, that led him to make the switch to RockSolid™ POS software back in 2011. Up until then, he had been using the Eagle® system from Activant. But as he looked into upgrading that program in preparation for a second location, it became clear that just wasn’t an option.

“Staying with Activant to run two stores would have been too expensive—it was that simple,” Greg recalls.

At the same time, he adds, he and his team had never

found the Activant system particularly easy to use and communications with Do it Best could have been a lot better.

Greg did his due diligence and after evaluating several possible options, he decided to make the move to RockSolid; price, he admits candidly, being the primary factor that clinched the deal.

Less than four months after making that call, Loa Builders went live on the RockSolid hardware software.

“The switch to RockSolid went very smoothly,” he remembers. “The RockSolid support team took our data late one evening, uploaded it into the system through the course of the night and we were up and running early the next morning. We were literally using Eagle one day and RockSolid the next.”

CLOUD-BASED ROCKSOLID MAX SOFTWARE MAKES RUNNING TWO STORES AS EASY AS RUNNING ONE And if Greg had any doubts about the wisdom of converting from Activant to RockSolid, those doubts disappeared very quickly. “With RockSolid, I was paying less for the hardware and software I needed to run two stores than I had been paying for one store with Activant,” he recalls. “That was a pretty strong reason to switch to RockSolid right there!”

Fast forward five years and it was time for another software switch at Loa Builders—this time to RockSolid MAX cloud-based POS software.

“Moving to a cloud-based system had a lot of appeal,”

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Greg explains. “We’re not big enough to have a dedicated systems administrator or anyone like that.

I’m the IT guy and I’ve got a lot better and more productive ways to spend my time.”

Moving to the cloud meant Greg no longer had to worry about server maintenance and updates. He no longer had the hassle of making data backups and taking them off site every day. RockSolid MAX POS software also gave Greg and his team access to the system on a 24/7 basis from anywhere with an internet connection.

“With the way our two stores work together, a cloudbased system like RockSolid MAX is a huge asset for us,” Greg explains. “RockSolid MAX really does an awesome job of managing multiple locations!”

ROCKSOLID MAX MANAGES THE ENTIRE ORDER PROCESS Greg also gives RockSolid MAX hardware software kudos for its ability to manage the entire order process from beginning to end.

“With RockSolid MAX, we can track the whole process from quotes to orders to sales to invoicing,” he

explains. “The flow and the way the process works is excellent!”

It doesn’t hurt that RockSolid MAX POS software is supported by a team of service oriented software experts who are just as committed to keeping Loa Builders running smoothly as Greg is.

After little more than a year of using RockSolid MAX building supply software, the program, says Greg, is living up to expectations and then some.

“There’s no question we have got a positive return on our investment in RockSolid MAX,” he says. “The way they’ve been adding upgrades and enhancements to the program since we switched has been another big plus,” he says. And would Greg recommend RockSolid MAX POS software to other stores like his? “Absolutely,” he says. “Without hesitation.

“For hardware, lumber and building materials retailers like us, particularly with multiple locations, I would very highly recommend RockSolid MAX. It’s doing a great job for us and we’re very happy with it!”

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HARDWARE RETAILING | January 2018

By Jesse Carleton, jcarleton@nrha.org

Comeback Plan How 2 Retailers Took Their Stores From Bust to Boom

M

any entrepreneurs setting out to buy a business look for one that’s healthy, where risks are minimal and the probability for success is high. It’s a good, safe bet few would argue against.

Then there are those of a different breed who crave a challenge. They are able to see beyond the near-term shortcomings of a business to its long-term potential.

And then they’re ready to take that risk head-on.

James Coté, owner of Osterville House & Garden in Osterville, Massachusetts, and Ron Cicuttini, owner of four home improvement stores in Ontario, Canada, are two such retailers. They each purchased retail locations on the verge of oblivion and led the transformation to successful businesses. These stories are worth retelling. Not only are they inspiring, but by analyzing why a business failed, you can recognize possible weaknesses in your own operation and uncover clues on how to fix them.

January 2018 | HARDWARE RETAILING

45

A Second Chance for Osterville House & Garden

For James Coté, bringing the store back from the brink of collapse meant restoring inventory controls, making the salesfloor easier to shop and developing a new marketing plan for the business.

J

ames Coté had just returned from college and was ready to resume his job at the town’s hardware store, but it was obvious that something was wrong. The store, sitting on the town’s picturesque main street, had once been busy with customers. Now, it was anything but attractive. The shelves were half-empty and many customers were leaving the store without purchasing anything. During a rainstorm, tarps covered several rows of gondolas so water from the leaking roof wouldn’t ruin merchandise.

The building was on the verge of foreclosure.

Causes for the decline were easy to spot.

The housing crash of 2008 struck a hard blow to the local economy. The owner, hoping the downturn would be short lived, tried to hold on to the property by selling off inventory. Purchases declined, and expenses overtook income. The business was quickly becoming unsustainable.

With a fresh business degree in hand, Coté might have gone anywhere to start his career.

“But I was having a conversation with a customer about the store, how it might close soon, and he said, ‘You should buy the place,’” Coté recalls.

That conversation planted a seed in his mind.

He talked it over with Megan, who is now his wife.

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HARDWARE RETAILING | January 2018

“She was on board with the plan, so we took the leap of faith,” he says. “Two months later, the store was ours.”

The Long Road Forward Coté admits there were a lot of unknowns about how he could turn the business around, but he knew the issues the store was facing and what was working in his favor. Inventory was low, customers were frustrated and the building needed an overhaul, but the economy was starting to pick up again.

“Looking at past sales numbers, I knew there was potential,” he says. “My main effort was to bring in the inventory to bring in the customers.”

The other piece working in his favor was a strong support system. Megan helped out at the store on the weekends. He also kept the manager who had been at the store for 14 years. “That first winter, the manager and myself were the only full-time employees,” Coté says. “Without him, it would have been incredibly difficult.”

To finance the operation, Coté borrowed money from his parents, but cash flow was still tight.

For the first nine months, he didn’t take a paycheck so he could put as many resources as possible into the store.

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The first order of business was to start filling shelves and bring back those best-selling A and B items, which were often missing. Then, working with his wholesaler, Coté began sorting through planograms and assortments to make sure categories were complete. He also took advantage of dating opportunities when buying products and special buys he found at markets— anything that would help him stretch his dollars to regain momentum.

Another project was to work through the store’s inventory system to clear out dead items and get a correct account of everything he had.

“We discovered about $30,000 worth of items that were not in our store but were on the records,” he says. “There were some inventory controls we needed to get back in line.”

Next, he began tackling the store’s layout.

A cash register near the front of the store meant any customers waiting to cash out would be

“I think it started to sink in for

customers that the change was real.

They could rely on us once more.

—James Coté, Osterville House & Garden

”

After stabilizing his inventory levels of everyday hardware items, Coté developed niches in high-end items, including grills and housewares.

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HARDWARE RETAILING | January 2018

blocking the entrance. Coté relocated that service counter to open up the front of the store and chose that area to merchandise housewares. High-end housewares, he discovered, were popular with his customer base. Other cosmetic work gave the store a brighter, more inviting appearance.

Reestablishing the Community’s Trust Bringing a failing store back to life isn’t just about getting the numbers back to where they should be. In most cases, the other half of the battle is restoring the community’s trust. Coté needed to convince customers who may have decided to stay away to come back.

“Almost immediately, I set up a Facebook page for the store and started using that to talk about the changes and promote the products we were getting in,” he says.

Soon after that, he bought a few ad spots on the local radio station, which were instantly well received. He also developed a website, a first for the store.

The most effective changes, however, needed to go deeper than a few radio spots or Facebook posts. Presenting a new brand to the community would help him put a new face on the store.

It was a not-so-subtle way of announcing that a new store ownership was making a fresh start.

Coté started a process of redesigning the store’s logo, keeping the existing name but presenting it in a new way. He also developed store uniforms and began selling logo wear to the community.

All of those pieces working together helped give Osterville House & Garden a new reputation.

“People in the community were beginning to see we were making changes,” he says. “But having a new logo was a way to set ourselves apart from our checkered history. When we put the new sign out front and employees started wearing uniforms, I think it started to sink in for customers that the change was real. They didn’t just get lucky when they visited us and found what they needed—they could rely on us once more.”

Coté also got heavily involved in his local community. He took a seat on the town council and became involved in several community improvement projects. That public life gave him the opportunity to serve and give back his resources, but also showed he and his business were serious about being a part of the local community. In 2014, he was honored as one of NRHA’s Young Retailers of the Year.

Seven years later, the numbers show that all of that hard work paid off. At the end of 2010, when he purchased the business, Coté’s annual sales were less than $600,000 for his 7,500-square-foot store. Now, annual sales top $1.2 million.

6 Signs Your Business Might Be Slipping How does a business fail? Economic forces beyond your control often instigate problems, but sometimes failure comes from neglect. More than likely, the downfall of a business doesn’t happen overnight. There are typically

1

It’s been awhile since you analyzed your financial statement.

Your financial statements contain a few key numbers that will tell you exactly how well your business is doing at any given point in time. With the sophisticated POS systems available today, this information can be available on demand. “The key to success is having your finger on the pulse of those numbers and being able to react quickly when something goes wrong,” says Ron Cicuttini, owner of Brantford Home Hardware in Brantford, Ontario. If necessary, look for the type of educational opportunities that will help you learn.

A great way to get started is through NRHA’s Basic Retail Accounting Course. Visit nrha.org to learn more.

2

Employee morale is low.

Motivated employees who are excited about their jobs will pump energy into your operation. The opposite is also true.

If employees are not motivated to do their jobs, ask why. They might spot problems in your operation you haven’t seen yet. Issues with employee motivation can be corrected by offering training or by simple acts of appreciation that show staff you value them. Other times, you may need to replace them.

Lack of good staff is not a problem you can sustain for long before it affects your entire business.

3

There’s no clear marketing plan for the business.

For both Coté and Cicuttini, marketing was one of the important steps of reviving a failing store. If you’ve stopped making the effort to bring in new customers, then you’ve limited your growth opportunities. Each market will be different when it comes to finding the most effective marketing platforms, but social media and a website are now the standard. One symptom Cicuttini spotted at the Brantford store was a lack of advertising investment. “We saw very little marketing going on there,” he says. “The owners had been cutting expenses, and once you start cutting money from marketing, it’s a downward spiral from there.”

warning signs that something is going wrong. These six indicators that something might be wrong will help you stay proactive and reverse trends before they become major obstacles, or worse.

4

Customer counts are dropping.

Anytime you see a drop in customer counts, transaction size or sales is cause for concern. A slide in customer counts usually means customers are shopping elsewhere and that a competitor is doing a better job of attracting their business. It’s also a sign you need to look at your store through a fresh set of eyes and ask the big questions, such as “Do I need to remodel?” or “Am I wasting my efforts on a category that isn’t selling?” Consider asking another business owner or friend to give you honest feedback about your store. If it’s time for a remodel, the money you invest in that project now will pay dividends in the long term.

5

You’re satisfied with the status quo.

No matter how good you think business is, if you are not looking for new product lines or ways to change your store, you’re likely to start slipping backward.

“Every winter, we are redesigning pieces of the store or moving things around,” says Coté. “We always want to stay fresh and keep customers looking. If we get complacent, we get in trouble.” Use your wholesaler markets and other industry trade shows to find new niches and to make sure your current assortments reflect the latest trends and manufacturer product updates.

6

You’re overdue for a full-store inventory check.

If you’re not sure of what’s on the shelves, you may be spending too much money and shelf space on items that don’t sell and not enough on those that do. Lack of proper products on the shelf results in reduced customer counts because they can’t find what they need. Also, if the numbers in your inventory are skewed, that will make it more difficult to use your financial statements to discern the health of your business. You might have a false sense of reality. Start by doing a full inventory of the store. Then, establish a schedule of regular cycle counts so you can be more effective at ordering and have a better sense of your cash flow.

January 2018 | HARDWARE RETAILING

49

Back from the Brink at Brantford Home Hardware

Ron Cicuttini operates four home improvement stores in Ontario, Canada. While two of them were facing bankruptcy when he purchased them, he led them back to profitability.

B

rantford Home Hardware seemed to have a lot going its way. The economy around Brantford, Ontario, was strong and growing.

Inside the store, the staff included a few key employees who were hard working with a strong capacity to lead. However, the business was on the verge of bankruptcy. There weren’t many customers coming in the doors.

That caught the attention of Ron Cicuttini. His experience in hardware retailing dates back to 1970 when he started working in the family business. Since then, he had run his own business successfully while staying alert for new opportunities, and Brantford Home Hardware was one he couldn’t pass up.

“I liked the store and the market it was in,” he says. “The business had a history of being successful, and there were also a lot of good people working there. That was one of the big reasons I ended up deciding to invest in it.”

So why was the business failing? Poor management, Cicuttini says. The previous owner stopped putting money into the business. Inside the store was a mishmash of products no one wanted. The owner ran out of money to buy inventory, and that resulted in a downward spiral. No one was coming in the store anymore because there was nothing to buy.

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HARDWARE RETAILING | January 2018

Taking ownership of the store would mean taking corrective action and making dramatic changes.

Since reworking Brantford Home Hardware and making it profitable again, Cicuttini purchased another business facing a comparable situation.

He’s found that the steps he took at Brantford are fairly similar to those he took at that other location as he set it on the road to profitability. In 2012, he was honored as one of NRHA’s Top Guns for his contributions to the home improvement industry.

Making Sense of the Market Cicuttini could clearly see the main problem at Brantford Home Hardware—poor product selection and low inventory. But to correct it would take more than just refilling pegs. Deeper changes were likely needed. Customers may not be buying because the product selection didn’t fit their needs. It was time to rethink assortments and categories across the store.

“The first thing I did was to get an in-depth market study done that shows critical information such as demographics of the area and estimated dollars spent by category,” he says. The market study, conducted by his supplier, showed he needed to adjust product selection in some categories and add new ones.

“When you’re taking

over a store that’s been in financial trouble, it’s important to have your finger on those numbers on an almost daily basis.

”

—Ron Cicuttini, Brantford Home Hardware For example, the study showed the area had a big appetite for grills, but the store had very few outdoor barbeque items to offer. Cicuttini brought in new product lines and repositioned the category to be a grill destination. “We really analyzed what people were purchasing the most in our market, and then became strong in those areas,” he says.

Another major change in the product selection was a greater emphasis on fashion items, such as faucets, showerheads, vanities and lighting. He expanded assortments to include more options and displayed them in a more prominent area of the store so customers could easily see what was available. Part of the strategy, he says, was an attempt to make it more appealing to female shoppers. Stocking more fashion-oriented items also meant he could market his store as a project destination where DIYers would be more likely to make larger purchases, rather than just being a convenience hardware store.

and refer to them regularly. Then, when you spot a problem, you can react quickly and make the necessary adjustments.

As Cicuttini was using the market study to determine the best product selection for Brantford Home Hardware, he was also making another important discovery. The store layout was more of a hindrance than a help to shoppers. Endcaps were underutilized, lighting was poor and customers had a difficult time finding what they needed.

To fix it, he also changed the layout so it was easier for customers to locate products. The store has two power aisles, which gave him a lot of space for endcaps. He established a schedule of regularly rotating endcaps so customers would always have something new to see.

“It really looked like a brand new store when we finished with it,” he says. “We found that with the emphasis on good merchandising, people would stay longer, look around more and come back more often. By maintaining our endcaps, we found customers would come in on a weekly basis just to see what was new.”

Creating a Business Plan After the market study was finished and he had analyzed the results, Cicuttini finished setting up the document that would help him set his direction for the coming months—his business plan. The business plan, he says, was the most indispensable tool he had as he began to plot the store’s path to profitability.

To make sure he stuck to that plan, it was important to refer frequently to financial statements, such as the income statement and balance sheet, to monitor the health of the business.

“When you’re taking over a store that’s been in financial trouble, it’s important to have your finger on those numbers on an almost daily basis to make sure you’re not sliding backward but always heading in the right direction,” he says.

If you only look at a business plan or refer to those key indicators every few months, he warns, you can quickly fall out of line and into a hole that’s difficult to escape. Instead, know the key indicators such as margins and sales that will alert you to the health of your business,

Part of Cicuttini’s strategy for rebuilding Brantford Home Hardware was stocking more kitchen, bath and electrical fashion items.

January 2018 | HARDWARE RETAILING

51

By Renee Changnon, rchangnon@nrha.org

At Your Service A Look at Installations and Services for the ‘Do It for Me’ Market

T

oday’s consumer is often looking for ways to make life easier. Whether they are paying an accountant to file their taxes or requesting people to run their errands, there are some people who prefer to have services performed for them.

As a home improvement retailer, you serve professional workers and DIYers. However, the do-itfor-me (DIFM) customers are another demographic not to miss. This customer is the type that McLendon Hardware assists through its installation service business, McLendon Home Services, says owner Taylor Judd.

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HARDWARE RETAILING | January 2018

“McLendon Home Services assists the non-DIYer, what is called the ‘do-it-for-me’ customer,” Judd says. “They range from the later-age baby boomer needing extra help around the home, to the younger first-time homeowner without the skills or time to complete their various projects.”

To learn the benefits of these business offerings, Hardware Retailing spoke to two retailers, including Judd, who serve DIFM customers through their installed sales and handyman services.

In the following pages, learn how these services can boost your bottom line, the challenges associated with them and tips for success.

Call In the Professionals There are times when no matter what advice or help you try to give a customer, the project may be best handled by a professional.

For those customers lacking the time, skills or desire to complete home improvement projects, offering installed sales and handyman services can make your business stand out from the crowd.

At Briggs Hardware in downtown Raleigh, North Carolina, customers frequently ask for help to get their jobs done, says Stuart Davis, the store’s handyman and co-owner of the business with his wife, Evelyn Murray.

“When Evelyn decided to reopen the store founded by her family, I was there to help,” he says.

“It is now located downtown in a smaller space, but the name kept our customers and solid reputation.”

After business took off, Davis says he was frequently explaining to their customers how to complete a variety of projects.

“I have been a handyman for much of my life, so that often came up in my conversations with customers who were struggling or confused about a project,” he says. “Once they learned about my background, many would ask if I could fix their problem for them. Evelyn and I decided adding handyman services to Briggs Hardware made sense.”

Both homeowners and businesses request handyman services through Briggs Hardware.

The jobs Davis goes on range from quick visits hanging a flat-screen TV or repairing drywall, to a longer job finishing up a contractor’s project checklist when they run out of time.

In Washington state, McLendon Hardware also offers a variety of handyman and installed sales services to customers across its seven locations.

McLendon Home Services, which is under the hardware chain’s umbrella, was created out of a need for those skilled in projects around the home, says Judd.

In 2008, Judd approached leaders at McLendon Hardware to pitch the idea of a home services startup within their business. Rather than find someone else to help a customer complete their projects, Judd pitched a way for McLendon’s to streamline the experience and keep the quote and sales experience in the store, he says.

“This idea was something that resonated because McLendon Hardware customers want to be helped with project quotes and other information in the store, not always have someone come to their home for a quote,” Judd says. “The main focus of our home services is to be as cost-effective, professional and convenient for the homeowner as possible.”

McLendon Home Services serves single-family residential homeowners. The business focuses on assisting in the repair and replacement market.

Customers of McLendon Hardware stores in Washington have the opportunity to hire trained service professionals to install a wide variety of products in their homes. The business assists “do-it-for-me” customers looking for convenience and a reliable company.

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HARDWARE RETAILING | January 2018

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Davis says his services aide the contractors in town rather than compete with them, as he can help complete the small projects they don’t have time to do.

To promote their services, McLendon stores advertise the costs associated with different products that can be installed, like garbage disposals or new faucets, on the tags in the aisle, he says.

Judd manages the McLendon Home Services team, which has service centers in two of the seven stores, and has a team of about 20 employees who are experienced, licensed and certified to complete in-home projects.

Plus, the store has a small group of contractors that work through McLendon as contracting partners for any jobs his employees aren’t trained to do.

Something to consider before offering these services is a store’s customer base. McLendon works closely with homeowners, so these services are a smart addition, Judd says.

Briggs Hardware has a small footprint and is a go-to spot for the homeowner rather than a large contractor market. However, Davis says his services aide the contractors in town rather than compete with them, as he can help complete the small projects they don’t have time to do.

“The handyman services I offer often help out our local contractors,” Davis says. “Sometimes, they have other projects coming up, and they’ll call me to see if I can tie up loose ends on a project for them.”

A Closer Look at Customer Service Offering handyman services through a home improvement store adds an extra layer of customer service to loyal shoppers, says Davis.

“Briggs Hardware has been a part of the Raleigh community for 152 years, so a local looking for a handyman is even more likely to hire us,” he says. “The reputation of our business gives us an advantage over the competition, because the customer knows we’re a good, reputable business.”

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Stuart Davis, store handyman and co-owner of Briggs Hardware in Raleigh, North Carolina, visits several customers’ homes a week for all types of projects. A service he frequently performs is mounting flat-screen TVs on walls.

McLendon Home Services also has found success in part due to its name and customers trusting the business to tackle their home improvement projects, Judd says.

“Our customers are hardware store customers, so they are loyal to the business already,” Judd says. “Home services are just an additional purchase they’ve made through the store. They are buying a product, and that product has a service attached.”

“I was familiar with the needs of

both the retailer and the homeowner in order to make this a successful business. Plus, we brought people in from the marketplace with the skills to deliver great service to customers.

”

—Taylor Judd, McLendon Home Services

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HARDWARE RETAILING | January 2018

Both Davis and Judd have a wealth of experience in home improvement, which is another important factor for those considering adding this service to their business.

“I had 25 years of experience in the repair and replacement market before we started McLendon Home Services,” Judd says. “I was familiar with the needs of both the retailer and the homeowner in order to make this a successful business. Plus, we brought people in from the marketplace with the skills to deliver great service to customers.”

As the only handyman working for their business, Davis says he is able to apply his past experience in the home improvement industry and as a handyman for his current role within Briggs Hardware.

Not only does he understand how to do a wide variety of jobs, but he also knows the right way to work with clients to ensure they are happy.

When it comes to hiring for this role, Davis suggests retailers look for those with the technical skills and a knack for customer service, as they will represent the company outside the store.

“If a retailer wants to hire someone to provide handyman services through their store,

they need to be able to complete a wide variety of jobs,” Davis says. “In addition to finding trained professionals with all of the necessary technical abilities, personality in this role is big, too. Those who are friendly, can clearly work with and communicate professionally with customers are the ideal candidate for the job.”

A primary reason McLendon Home Services has a high success rate is because of the strong communication process the company uses.

The process is implemented as soon as a customer adds installation services to their project purchase, Judd says.

“In any of our services, especially if we haven’t been to the customer’s house before, we do a run-through with the homeowner ahead of starting installation work,” Judd says. “We’ll tell them what is on the list to do and look at it with them. If there isn’t a way to install it properly or it’s much different than what was communicated through the store, then there is a reassessment.

We have a very liberal return policy, so if they purchase a job with a service that can’t be performed successfully, we refund them 100 percent. It’s worth it to keep a customer.”

McLendon Home Services prioritizes communication in its installed services, whether through flyers in the store or with a customer on a job.

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One way McLendon’s avoids these issues is by strengthening the chain of communication internally and with customers from start to finish of a project.

“There is software we use that is specifically designed for home improvement store special orders, install services quoting and order tracking. It helps us connect all the activity and the customer communications,” Judd says. “No matter what store a customer places an order from, our team can see in real time what is happening with the order.”

By using a software program like McLendon Home Services or another system of checks and balances, you can eliminate the vast majority of misunderstandings and pitfalls.

Spread the Word About Service Offerings

As the handyman for Briggs Hardware, Stuart Davis performs a wide variety of jobs for homeowners and business owners. He will even change locks and repair screens on-site.

Once a single handyman or a group of installed service professionals is hired to address home improvement service requests, building this business within a business requires marketing the services and encouraging customers to spread the word.

Briggs Hardware has established its handyman offerings through its company website. If a customer searches for Briggs Hardware, they will find information about the store, and a separate landing page about handyman services and the phone number to call. Briggs handyman services has also attracted customers through social media and word of mouth from happy customers, Davis says.

Briggs Hardware spreads the word about their home and office handyman services in a variety of ways, including word-of-mouth and social media.

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HARDWARE RETAILING | January 2018

“

To capture that market, you need to provide these services; otherwise your customers will go to the big-box retailer to have a water heater installed for them.

”

—Taylor Judd, McLendon Home Services “We make sure to let our customers know we have a handyman on staff,” Davis says.

“Customers I’ve completed work for are a big help. When they tell a friend or colleague that I completed a job and was a friendly, trustworthy person who got it done right, that’s the best advertisement we could ask for.”

McLendon Hardware attracts the attention of its customers to its home services through traditional marketing channels, social media and store signage.

“We utilize online advertising and commercials for TV and radio,” Judd says.

“However, we also have a lot of store signage that indicates products that have the option of installed services. Our employees on the salesfloor are able to clearly communicate that.

Word-of-mouth is huge for us, which makes it even more important that every experience a customer has with us is positive.”

Through Briggs Hardware handyman services, Davis says his positive reputation and professionalism with customers has even helped build his online customer reviews and ratings.

Online review boards Angie’s List and Yelp are one of the ways consumers will get that word-of-mouth referral.

“I have a five-star rating online for the handyman services I provide our customers,” Davis says. “My customer will let others know I can complete their projects. I make it a point to ensure my customers feel comfortable and can trust me in their homes.”

Although adding these services can seem daunting on top of an already busy operation, Judd says it’s something to consider as a way to remain competitive.

“Many hardware retailers are in markets near a big-box retailer like Home Depot or Lowe’s—these retailers already offer installation services,” Judd says. “To capture that market,

you need to provide these services; otherwise your customers will go to the big-box retailer to have a water heater installed for them.”

There are some things to consider before taking on these store services, like hiring the right employees and ensuring the legal side of the operation isn’t overlooked.

As the sole handyman for Briggs Hardware, Davis says he has to make sure he is meeting all the requirements of the state of North Carolina.

“As a handyman, I am insured through the business to cover any liabilities and workers’ compensation that might arise while on a job,” he says. “However, there are several standards anyone has to meet in this position, yet it differs from state to state.”

For example, in Washington state, Judd says a contractor will need a business license, and they need to be insured and bonded to perform contracting services off-site.

“For any retailer who is thinking about offering these services, they should be sure to consult with a local contracting firm,” Judd says. “Most of these companies can address the different legal requirements that need to be filled. I would just remind them how important it is to cover all of their bases.”

Know the Rules and Regulations By providing home installation and handyman services out of your business, you can grow your sales and help the customer beyond the walls of your business. Before you get started, however, you need to know what is legally required to offer these services. Below are some starting points, but if you’re serious about adding these services, seek a qualified attorney for legal advice.

•

State contractor’s board. Seek your state’s contractor’s board, and search it online for the various laws and fines that can occur if the laws aren’t being followed.

•

Licensing. A contractor’s license typically requires the professional to pass competency tests, pay a fee and prove insurance or bonding. Licensing for trades requires more specific knowledge and experience than contractor licenses.

•

Registration. This is often less strict than licensing; it requires contractors to prove insurance and pay a fee.

•

Bonding. Contractors work with a third party to cover any potential issues incurred by the client.

•

Insurance. It’s very important a contractor is insured to cover potential property damage, injuries or workers’ compensation.

January 2018 | HARDWARE RETAILING

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By Todd Taber, ttaber@nrha.org

A Global Glimpse 2018 International Hardware Fair Focuses on Digital Opportunities

G

et a head start on your competition by visiting the EISENWARENMESSE International Hardware Fair (IHF) to see a sneak peek of upcoming products from leading manufacturers. The event draws thousands of vendors, manufacturers and business owners from across the world to Cologne, Germany, for four days of product showcases, networking opportunities, informational sessions and a global glimpse of the industry.

On March 4-7, more than 2,700 exhibitors from 50 countries will present their newest product innovations inside Koelnmesse, the sixth-largest event space in the world. IHF helps business owners see the latest international manufacturing trends up close and personal and find products that could mark their operations as must-visit destinations.

The event features products in the tools, industrial supplies, fasteners and fixings, fittings and home improvement products categories from internationally recognized brands. IHF also dedicates space to new companies in its Startup Village, helping emerging business owners connect directly with industry leaders.

“The event is virtually fully booked; all well-known manufacturers are represented,” Katharina C. Hamma, chief operating officer for Koelnmesse, says. “This underlines the significance of the trade for the entire international hardware industry.”

International Hardware Fair By the Numbers IHF planners anticipate

44,000 visitors from around the world will attend the four-day event.

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About 2,700 vendors, including 1,650 distinct tool manufacturers, will fill more than 15.5 million square feet of event space at Koelnmesse.

International Insight

“

Business owners should seek out new ideas, not only from other retailers in their communities, but from business owners in other countries, too.

—T.J. Comstock, Northwest Hardware

”

This year, IHF is focusing on how businesses can best compete in the digital economy. It’s devoting its two-day dSummit lecture event to the topic. Keynote speakers will present hardware-specific information on how digitalization trends are shaping consumer behavior, supply logistics and the economy at large.

Even if Cologne feels a world away, North American business owners say it’s a worthwhile trip.

“I decided to attend IHF this year to see what ideas people in other countries are coming up with to better serve their customers. I want to see how other businesses are using technology to help their operations grow and be more efficient,” T.J. Comstock, owner of Northwest Hardware in Billings, Montana, says.

Comstock says IHF is one of the few industry events that draws visitors from across the world, giving business owners and manufacturers an open forum to explore new strategies.

“I think all retailers need to step out of their comfort zones,” Comstock says. “Business owners should seek out new ideas, not only from other retailers in their communities, but from business owners in other countries, too.”

IHF takes place every two years in Cologne. More event details and registration information is available at eisenwarenmesse.com.

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Process & Procedure: Special Orders

By Chad Husted, chusted@nrha.org

Custom Care Understanding the Special-Order Process

O

ne size does not always fit all.

Sometimes a customer’s needs are so specific that nothing other than a product so specialized it would not normally be part of a store’s regular product mix will do. Independent hardware and home improvement businesses across North America are ready for these customers, with workers trained and vendors on call to handle the most exacting of tasks.

So how do you best improve your business in this growing and precise market? Independent retail businesses serve as the gateway for customers, whether it be a family looking to renovate a kitchen with custom cabinets or a customer looking for a new faucet that has to be just right but isn’t available on the show floor. Even outside the lumber and building materials industry, special orders are an

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important piece of retail business. Examples of how to handle custom orders, from client relations to following through to project completion, have far-reaching benefits for retailers.

While providing strong customer service is extremely important, equally crucial is having the ability to promptly fill special orders to remain competitive with online retailers. What value can your store provide a customer that an online retailer, like Amazon, cannot? The special-order process must be painless and efficient for the customer.

It’s not just about getting the details of the process correct; it’s also about adding value that online retailers can’t deliver.

To learn more about filling special orders and the processes needed to maintain customer expectations for these products, Hardware Retailing spoke with

several retailers about how they fulfill custom requirements. We also got some perspective from outside the hardware industry by speaking with pastry chef Ron Ben-Israel. He is known for running a high-end cake business in New York City that fulfills extravagant special orders from exacting clients. Ben-Israel offered some tips that home improvement retailers can use in their businesses.

Starting Off Completing special orders is about more than building materials and lumber supplies. While customization often takes place within the world of homebuilders and renovators, any customer looking for an item that isn’t normally stocked or found in a warehouse can be considered a special order.

Yet even with a smaller order, such as a specialized piece of hardware, managing customer expectations starts early. For Star Lumber in Wichita, Kansas, the special-order process begins with making sure the customer, salespeople and other staffers are all clear on the requirements of the product, its measurements and how much it will cost to fulfill.

Mistakes made in the early stages of an order can be some of the most devastating, says Star Lumber general manager Brian Schawe,

which is why he and his team put so much emphasis on getting the small details of an order on point in the early stages. Star Lumber features an extensive showroom in its Maple and West Street location, one of three retail locations in Wichita. The showroom gives customers an early look at options like materials, finishes and hardware for items like windows, cabinets, countertops and special-order paints.

Star Lumber has nine locations total, offering a wide array of building materials and products.

“Anything we don’t normally stock is considered a special order. We have several teams that are a part of the process, from an inside design team that can draw up renovations to outside sales that can be involved in new construction,” Schawe says.

All special orders begin with an agreement sheet that lists the exact details of each project or order.

To ensure these requirements are listed correctly, Star Lumber sends an outside sales associate or a trusted partner among its renovation contacts to do all measurements on a project.

This process allows the order to get off to a good start, lessening the chances of mistakes further along.

Payment is also handled before the customer and sales representative sign off on the special order.

Whether assembling an order for custom cabinets or ordering a hard-to-find tool for a customer, special orders can be tricky to navigate. Starting with clear communication about expectations and costs can keep things in order.

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For Star Lumber, payment is usually determined by how often the customer has ordered through the business and the type of order. Cash orders typically require full payment up front, as do other orders that cannot be feasibly repurposed, such as custom paint mixes.

“There’s a line on each ticket, saying ‘S.O. Agreed.’ That stands for ‘Special Order Agreed,’ and it has to be signed off before any order is put through. Once you have everything from the color, the type of product, the style and the manufacturer, you sign off on that,” Schawe says. “It can really be anything, from a gallon of paint to 50 gallons, if it’s custom mixed that’s not something we resell, so we ask for full payment beforehand.”

Get a Good Look Another way to avoid mistakes is a site visit by a salesperson or trusted partner to a contractor’s or builder’s location. Mawson Lumber and Hardware in Fort Collins, Colorado, does the majority of its business with builders, often on historical buildings and homes that require great care when finding authentic materials or finishes.

When a builder is looking to begin work, a Mawson employee will often visit the job site and take pictures along with measurements. These photos help determine which vendor or mill to use for the job, general manager Mike Fees says.

“Before we do the bid process, we do a site review and get as much information as possible. We had a recent order that came from a contractor switching yards, and the reason was the other yard was putting in the measurements wrong. These custom orders carry a high price tag, so we need to make sure these numbers are accurate from the start,” Fees says.

Vendor Value Managing customer expectations and delivery needs go hand in hand when dealing with vendors, distributors and other professionals who can create or procure the products customers demand. Each step along the way, retailers must maintain contact with these specialized professionals to make sure ordering, manufacturing and final production are all in sync.

Methods for developing a strong network of vendors can vary. Star Lumber employs a

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centralized purchasing center that streamlines the bidding and ordering process, with individual salespeople who can call on their trusted contacts depending on what is required in the order.

“Having individual buyers gives us great access when going through the pricing process.

A salesperson can reach out to a buyer with our centralized purchasing to make sure a customer is getting the correct price the first time.

We serve as the resource to find the right product,” Schawe says. “We engage our salespeople with a lot of vendor training to keep them current on product assortments and abilities. They have the right knowledge to help that DIY customer make the right choice for their project.”

“As a company, you

have to stand behind that product and stand behind your work with a customer. If you have a good rapport with the client and the vendor, you can turn mistakes into good conclusions.

—Brian Schawe, Star Lumber

”

Piece of Cake … Right?

Ron Ben-Israel owns and operates Ron Ben-Israel Cakes, which delivers his designs to the greater New York City area and most of the East Coast. Learn more about his designs at weddingcakes.com.

You won’t find too many similarities between the day-to-day world of hardware retail and custom pastries, but fulfilling customer expectations and making timely deliveries of products spans across both industries. Ron Ben-Israel has designed cakes for celebrities and events across the world, while his expertise was on display as host of the reality cooking competition “Sweet Genius,” which aired on Food Network from 2011 to 2013. He also appears as a judge on many other series and specials on that channel as well.

To gather insight from beyond the hardware industry, Hardware Retailing spoke to Ben-Israel about accomplishing custom orders, handling customer expectations and making the most of the client experience. Take a look at our tips on how his approach can help better your business’s operations.

Hardware Retailing (HR): How do you begin a cake design?

Ron Ben-Israel (RBI): We begin with referrals for our clients. We do social media work, but we don’t advertise in the conventional fashion. For our industry, our referrals comes from clients seeing our work at fundraisers, openings, promotions, weddings or other events. One of our big causes is fighting hunger, so we do a lot of events for causes and organizations.

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We begin a vetting process to understand the dates involved as well as the expectations of the client, which determines its cost. Once we’ve determined that a customer’s date and design expectations can be fulfilled, we invite them in for a tasting.

I’m happy to recommend colleagues of mine if we cannot accommodate a client. That’s part of good business, and we want even clients we don’t work with to leave happy.

Hardware Tip: While retail businesses must compete for every sale, forming strong customer connections can sometimes be more important in the long run. If a customer’s project or order would fit better with another retailer, recommending that business can form positive associations for the customer.

HR: What are some of the most common issues when creating custom cake designs?

RBI: Expectations and knowing the smallest details of a client’s mind when crafting a design. One example can be a client wanting a certain shade of frosting, like magenta.

We can’t go off of just a color’s name; we need a Pantone number or paint swatch in order to make sure that color translates to the final design.

One time I wrote in a cake contract to decorate the cake with linking diamonds and lace. So we designed the frosting to mimic diamonds and lace. The design is finished and it looks magnificent, and we speak to the client afterwards. They were happy, but they asked, “Where were the diamonds?” I guess they thought we’ll use real diamonds in the design. I said, “This was an

Mawson Lumber and Hardware’s connections come from years of experience in the market.

From pre-internet methods like cold calls and old-school word of mouth, persistent searching has yielded Fees a network of connections to mills and manufacturers that can source the kind of specialized materials his customers are looking for.

“Especially for some of my older contacts and builders, they don’t want to take no for an answer even though some of these materials are rare finds. I don’t want to come up empty, because they’ll go somewhere else, find it, and think ‘Mawson must not have worked very hard.’ Those kinds of associations can quickly become problems,” Fees says.

Training Time Another connection point concerning vendors is training for retail employees.

Star Lumber keeps its sales force continually trained on its product selection via vendor-supplied training sessions and keeps its staff up to date on the latest changes in the products available.

“As a company, you have to stand behind that product and stand behind your work with a customer. If you have a good rapport with the client and the vendor, you can turn mistakes into good conclusions. Mistakes will happen, but if you leave both sides pleased, they’ll be there in the future,” Schawe says.

Many factors can play into deciding on a vendor to supply an order. Factors to consider,

expensive cake, but not that expensive!” We learned to avoid misunderstandings and learn from those mistakes.

the bride’s dress, which she kept changing, meaning we had to alter the final color several times.

Hardware Tip: Details, details, details! Assuming that you and a customer are on the same page is how small misunderstandings become big headaches.

People have good and bad days. It happens with any merchant, and that’s why we have contracts that specify what the client should expect. Our job is to make the client feel good and be happy. Anyone working with customers knows this—that it’s important to make adjustments to satisfy.

HR: What are some of the things you focus on when determining price?

RBI: So much goes into a design, because everything we work with is from scratch. Even the price of ingredients fluctuates, so there are many variables to consider.

We offer a customized experience, and clients wanting that experience have a certain expectation. I like to say to people, you get what you pay for. We are proud of our original designs, and our people are highly skilled. Customer attitudes are shifting to appreciate that, and a reputation of quality for a small business is more important every day.

It’s nice when people call you an artist—but we’re in the service industry. We’re selling goods. We’re mindful of that.

No matter the superlatives, the cake has to speak for itself.

Hardware Tip: At the end of the day, your business is there to solve a problem. Whether it be supplying the materials for a home remodel or a hammer that is only stocked on the other side of the country, delivering on promises and working with a customer to complete the project are some of the best ways to build repeat business. Make sure customers walk out satisfied and they’ll be back through your doors.

Hardware Tip: Special orders, by definition, have a tendency to come with a larger price tag, which puts an emphasis on delivering exactly what is required and with the highest level of service.

HR: What are your keys for creating positive customer interactions?

RBI: Sometimes you start a design and realize something isn’t going to work. Sometimes fewer people RSVP to an event than you anticipated. One time, a cake was designed to match

Photo credits: Kris Mae, Maggie Marguerite Studios

January 2018 | HARDWARE RETAILING

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along with price, are turnaround time and specialties of vendors in question. Fees and Schawe both emphasized the selection of vendors based on deadlines involved, not on price. Since custom orders can sometimes have higher average price points than typical transactions, the focus should be on ensuring quality materials and timely delivery.

Delivery Done Right The final step for many special orders on the customer side is delivery, whether delivering to a work site or shipping to a store or the customer’s home. With online retailers offering convenience and speed in getting products into the hands of customers, retailers must match that ability.

To ensure accuracy and accountability during its delivery process, Star Lumber uses equipment that allows drivers to take pictures of each delivery and track it along its route from the warehouse to the truck and then at the delivery location. Having photos ensures a record of delivery that can avoid or mitigate any issues once the product is delivered.

Mawson puts particular emphasis on delivering to sites while a contractor is working.

Supplies needed to complete the first floor are delivered to the site, excess from that project is picked up, then the supplies for the second floor are delivered. This process keeps supplies from being damaged by the weather and keeps job sites clear of excess materials, which Fees says his customers appreciate.

The delivery experience often comes down to the smallest details, says Mawson Lumber and Hardware owner Scott Glasscock. Drivers often have instructions to drop materials off at specific locations in a job site or at a home build and will be re-dispatched to a delivery site if it’s not dropped where it’s needed.

“These are high-dollar, custom-made products.

We take it all the way, including making sure our delivery drivers are equipped with clean gloves so as not to leave fingerprints on the finishes,” Glasscock says.

Nothing, not even fingerprints, is too small when it’s special.

Through years of experience sourcing hard-to-find items, Mawson Lumber and Hardware has been able to build trust with customers around its Fort Collins, Colorado, location.

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By Melanie Moul, mmoul@nrha.org

Casting the Right Spell Speller’s True Value Invests in the Community

S

ince the 1960s, the east side of Waterloo, Iowa, hasn’t seen very much economic activity other than restaurants and convenience stores.

Allen Speller and his father, Wendell, have been engaged in local commerce through a variety of businesses and ventures to help revitalize the area for more than three decades. Opening a hardware store had been a topic of family conversation for a long time, but the timing wasn’t quite right until 2015.

“My parents talked about opening a hardware store years ago and never acted on it,” Speller says. “The nearest hardware store is about 15 to 20 miles away, so everyone in town would go out that way if they needed something.”

Speller’s family has a long history in Waterloo, with relatives arriving in the early 1900s to work on the railroad and at the John Deere plant, which still employs many of the town’s residents and members of the Speller family today.

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Wendell worked at John Deere about 30 years ago, and when he was laid off, he fulfilled his dream of becoming an entrepreneur and business owner by opening a men’s clothing store in Waterloo.

“My dad has owned the clothing store for 30 years, and he has run trucking companies and has managed rental properties, too. He also has some experience in real estate,” Speller says.

After high school, Speller began pursuing a business degree, but eventually left school to follow in his father’s initial footsteps at the John Deere plant. While there, he took advantage of John Deere’s education program. The company paid for his associate’s degree in business administration, which Speller completed in just one year. But, also similarly to his father, his role at John Deere wasn’t forever.

“I was laid off, too, and I didn’t want to keep going through that cycle. I had some money saved up, so we decided to start a business.”

From the Source

By the Numbers

Retailer-led panels offer insights into how the industry’s leaders are innovating and succeeding in their markets. From young retailers to top guns, everyone has an opportunity to make their voices heard.

NRHA conducts exclusive research to show the growth of the industry and how independents are competing. Our methods ensure that the information presented at the conference is current and relevant.

In the Know

After the Show

Get the scoop on best practices in technology (smart home and competing online) and small business operations (retaining employees and the customer experience) from expert keynote speakers.

Everything on the NRHA Village Stage is presented with independent retailers in mind, so get ready to take actionable lessons back to your operation that will help you differentiate your business and move forward.

You need to hear this.

Do you know what it takes to compete as an independent home improvement retailer in today’s economy? Join us in Las Vegas, May 8-10, at the 2018 North American Retail Hardware Association’s (NRHA) All-Industry Conference, to hear firsthand from retailers, industry experts and channel partners to get the latest on trends and best practices to become a better and more profitable retailer.

FOR MORE INFORMATION, GO TO NRHACONFERENCE.COM

2018 NRHA ALL-INDUSTRY CONFERENCE

Menards Moves Out

Allen Speller and his father Wendell transformed an old gas station into a hardware store in six months.

In the late 2000s, Menards announced plans to open a location on Waterloo’s east side, and Speller thought his chance to own and operate a hardware store was over. But in 2009, Menards postponed the planned opening date to 2012 and then eventually backed out of the project completely, opting to build on the other side of Waterloo.

“The east side of town was disappointed when they backed out. They got everybody hyped up, and then they didn’t build here,” Speller says.

“But it created a prime opportunity for us to finally open a hardware store.”

In 2015, a local gas station closed, and Speller and his father initially joked about buying the building—until the joke became a reality. They planned originally to open another gas station when the Menards fell through.

Even while the team was still planning on opening a gas station, Wendell was researching home improvement wholesalers and distributors, just in case one turned out to be the right fit for the new Speller family business.

As it turned out, True Value was excited about working with the Spellers, so the father-son duo quickly switched into hardware store mode to transform their new property.

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HARDWARE RETAILING | January 2018

ER R EG I S T NOW!

“Removing the gas tanks was the most difficult and longest part of the six-month process of renovating the station, and we had to do that before we could even start planning the store,” Speller says. “Our co-op helped us stick to our timeline. Once we realized the business was actually happening, we kicked into gear.”

Speller’s True Value Hardware opened in November 2016. Now, with one year under their belts, Speller says they are thrilled with the potential of their business, but there is a lot to learn.

“It was challenging in the beginning to figure out what people were looking for and to figure out the right questions to ask those people who didn’t know what they were looking for.

”

—Allen Speller, Speller’s True Value

Learning the Ropes Growing up watching his parents run their clothing store created an entrepreneurial spirit in Speller, and he says he always expected to go into business with his father some day.

“As a kid, I would knock on doors and ask to mow people’s grass in the summer and shovel their driveways in the winter,” he says. “In 2010, I started an in-home recording studio with a friend, which turned into a fullfledged entertainment company.

We did that for several years.”

Speller’s entertainment company promoted and hosted parties, concerts and events and worked with several platinum recording artists in a variety of genres, including hip-hop, R&B, country, pop and rock.

Although Speller considers himself and his father to be “handy” people, and with his father’s background in managing rental properties, neither one of them had any direct prior experience in the home improvement industry.

“We’ve realized that everybody has their own name for tools and knickknacks,” he says. “It was challenging in the beginning to figure out what people were looking for and to figure out the right questions to ask those people who didn’t know what they were looking for.”

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Allen Speller (left) says he was inspired by his parents’ entrepreneurial ventures while he was growing up. His father, Wendell, has owned and operated a men’s clothing retail store, Tri-City Clothing, in Waterloo, Iowa, for 30 years.

Speller says his co-op has supported him and his family in learning and understanding the industry through seminars at the co-op’s semiannual markets on business best practices and how to help customers. He also says his business degree has helped him navigate a side of business he hasn’t experienced before.

“Keeping our books accurate and keeping track of everything that goes into the business side, like inventory management and calculating margins, is a lot more in depth than any business I’ve been a part of previously,” Speller says. “I’ve been applying my business degree to maximize profits, cut expenses.

I’m hoping that in the next year we’ll get a handle on our inventory.”

Making It Work Aside from being a brand new business, Speller’s True Value had a compounded challenge in its first year: road construction.

“Right after our grand opening, until about early November, there was road construction right in front

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HARDWARE RETAILING | January 2018

of the store, so people couldn’t get in,” Speller says.

“We’re hoping this winter is better, and we’re going to take spring and summer by the horns this year.”

Even though the business saw challenges, the community of Waterloo rallied around Speller’s from the start.

Community members created a Facebook event asking 100 people to spend $10 each at the business, which Speller says helped create a lot of buzz about the store.

“We have a good mix of customers,” Speller says. “Initially, it was a lot of landlords, which was great because they know what they need.

As word has spread, we’re starting to get more DIY shoppers.”

To meet the needs of the community, Speller says it was important to offer a broad product mix from the start.

“We wanted to have all the basic hardware and tools, but also the items that aren’t basic, the hard-to-find stuff, like old-style fuses for homes,” Speller says. “We make sure we have that on hand.”

“Other store owners

have been very helpful.

If I have questions about something, I call them up and ask how they do it.

They give answers in ways that only someone who has lived through it can.

—Allen Speller, Speller’s True Value

”

The business also stocks gardening supplies and paint and sundries, and the plumbing department serves the specific needs of its significant base of customers who are landlords.

“We also have a small selection of lumber, so people don’t have to drive 15 minutes to get one piece of wood,” Speller says. “We try to eliminate the trip for people.”

The chamber of commerce and Waterloo’s mayor have also been strong proponents of the business, attending the store’s grand opening event and helping to publicize the store.

“The mayor shows a lot of support and helps spread the word about the business,” Speller says. “He came down to speak to the media about building up the economy on this side of town. He’s been helpful, and he’s on board to help this area.”

For All the Right Reasons Speller has started learning more about the home improvement industry by connecting with other retailers. He stresses the value of making connections, whether through store visits or at co-op markets.

“Other store owners have been very helpful.

If I have questions about something, I call them up and ask how they do it. They give answers in ways that only someone who has lived through it can,” he says. “It’s important to ask as many questions as you can and to be close with your sales representative.”

As the business grows, Speller looks forward to becoming a resource in the community, not only as a home improvement store, but as an employer and investor in Waterloo.

“Right now, we’re family-based, but eventually we want to bring jobs into the community and build up the area,” he says. “Making that investment in ourselves is worth it because it’s going to reflect in our community as well.”

Speller’s True Value serves a variety of needs for the residents of Waterloo, Iowa, which is reflected in its product mix and community events.

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Newsmakers

How Do Your Big-Box Competitors Compare?

Upcoming Events January

T

hird-quarter sales results are in for the public companies that are your major competitors, and only Sears continues to decline.

Walmart—the United States’ biggest retailer, and the world’s largest brick-andmortar retail company—saw sales increase by 4.2 percent above third-quarter 2016.

Amazon has continued its impressive double-digit growth, with third-quarter sales that rose 33.7 percent above the same time period in 2016.

Home Depot’s sales grew by 8.1 percent, and Lowe’s sales went up 6.6 percent for the quarter. Tractor Supply, the smallest company of the group, saw year-over-year growth of 11.6 percent.

Continuing a steady downward trajectory, Sears Holdings had a $1.4 billion, or 27 percent, decline in sales from third-quarter 2016. The company has been unprofitable for years now and has been closing its Sears and Kmart stores in efforts to shed poorly performing locations and trim operating costs.

For the third quarter, “store closures [contributed] to over half of the decline,” with closed electronics departments and pharmacies also factors, Sears reports in a press release.

Big-Box Sales Performance

9-11 Kitchen & Bath Industry Show Orlando, Florida

9-11 NAHB International Builders’ Show Orlando, Florida

14-16 Retail’s BIG Show, National Retail Federation New York

HDW Inc. Spring Market Dallas

$122.1

February 1-3

120

House-Hasson Spring Market Nashville, Tennessee

100

9-11 Monroe Hardware Spring Market Myrtle Beach, South Carolina

80 Q3 Sales in Billions

United Hardware Spring and Summer Buying Market Minneapolis

19-21

The retailers below are ranked by Q3 sales.

140

5-7

10-12 60

True Value Spring Reunion Washington, D.C.

$43.7 $25

40

17-18 Florida Hardware Spring Market Orlando, Florida

$16.8 20

22-24 $3.7

10

0

Walmart

Amazon

Sources: Company Third-Quarter Reports

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HARDWARE RETAILING | January 2018

Home Depot

Lowes

Sears

$1.7

Tractor Supply

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

Honor the industry’s best and brightest.

The Young Retailer of the Year program recognizes emerging independent home improvement leaders. By evaluating career milestones, community engagement and continuing education, this program welcomes the industry’s future.

Come together.

We’re committed to the future of the industry.

This program unites successful retailers from all wholesale affiliations, enabling the industry to celebrate the achievements and promise these leaders represent.

Submit a nomination today to see your operation’s rising star on stage this year.

“Uniting retailers is critical. NRHA and the Young Retailer of the Year program give retailers the opportunity to share ideas and come together.”

Bobby Heuser | Heuser Ace Hardware | 2017 Honoree SUBMIT A NOMINATION TODAY BY VISITING NRHA.ORG/YROTY.

Sponsored by:

Young Retailer Year of the

Newsmakers Home Depot Ditches Chemicals, Focuses on Green Goods

Lowe’s Puts ‘Lab-Like’ Smart Home Centers in 70 Stores

Federated Co-operatives Ranks Top in Saskatchewan

Home Depot will “disclose the chemicals in the products they sell and remove them whenever possible,” according to Bloomberg.

TheRedT.com/home-depot-green

Lowe’s has launched a store-within-astore smart home concept inside 70 of its U.S. stores called SmartSpot.

TheRedT.com/lowes-smartspot

For the fifth consecutive year, Federated Co-operatives Ltd. ranks first in SaskBusiness Magazine’s list of the top 100 largest companies in Saskatchewan.

Labor Board Says Menards Drivers Are Not Employees The National Labor Review Board decided that the retailer accurately categorized its delivery drivers as independent contractors.

TheRedT.com/menards-drivers

Lowe’s Appoints New Chief Operating Officer Richard D. Maltsbarger, Lowe’s chief development officer and president, international, has been named the company’s chief operating officer.

TheRedT.com/lowes-coo

Canadian Tire Testing Online Sales Deliveries to Homes Canadian Tire is developing a fully integrated delivery model for shipping online orders to consumers’ homes.

CANADA

Patrick Morin Maintains Values With Careful Growth Strategy

Sears Holdings to Continue Store Closures in 2018

RONA Affiliates Tapping Into Appliances

Sears Holdings will close more stores, according to CBS News, including 45 Kmarts and 18 Sears locations.

TheRedT.com/sears-closures-2018

With the demise of Sears Canada, home improvement retailers are eyeing appliances. Sixty RONA affiliate retailers now sell appliances in store and online.

The Montreal chain of building centers started in 1960 and continues as a family-run operation.

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

AD INDEX

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

International Home+Housewares Show ............... 37 www.housewares.org

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

Allway Tools ....................................29, 31, 33, 35, 55 www.allwaytools.com; 800-422-5592

IPG........................................................................ 39 www.itape.com; 888-898-7834

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

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

Iron&Oak............................................................... 59 www.ironandoak.com/HRM; 866-281-4509

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

Brave..................................................................... 19 www.braveproducts.com/HRM; 866-281-4421

Jrco....................................................................... 68 www.jrcoinc.com/HRM; 866-537-6216

Rust Patrol ............................................................ 32 www.rustpatrol.com; 713-400-3100

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

Kissler & Co. Inc. .................................................. 18 www.kissler.com; 800-KISSLER

Simpson Strong-Tie Company Inc......................... 17 go.strongtie.com/outdooraccents; 800-999-5099

Diversey................................................................ 40 www.diverseybrands.com; 980-221-3235

Koelnmesse Inc. ................................................... 76 www.eisenwarenmesse.com; 773-326-9925

Stihl....................................................................... 23 www.stihlusa.com/dealers; 800-467-8445

Do it Best Corp. ............................................... 12-13 www.independentsdoitbest.com; 888-364-8237

Maxim................................................................... 73 www.maximmfg.com/HRM; 888-376-0849

SureCan ................................................................ 57 www.SureCanUSA.com; 801-827-0500

Dosko.................................................................... 41 www.dosko.com/HRM; 866-418-0474

Metaltech Scaffolding ........................................... 28 www.metaltech.co; 800-363-7587

Tacoma Firelogs.................................................... 30 www.tacomafirelogs.com; 253-272-4107

Dutton-Lainson Company...................................... 29 www.dutton-lainson.com; 402-462-4141

Midwest Fastener............................................ 24-25 www.fastenerconnection.com; 800-444-7313

True Value Company............................................... 3 www.truevaluecompany.com; 888-291-7229

ECI RockSolid MAX ......................................... 42-43 www.ecirocksolidmax.com; 800-588-5128

NRHA All-Industry Conference ....................................... 75 www.nrhaconference.com

UGL ........................................................................... 5 www.ugl.com; 800-845-5227

Franmar................................................................. 15 www.franmar.com; 800-538-5069

NRHA Training Course................................................31, 33, 35 www.nrha.org/training

Watcher Total Protection........................................ BC www.watcherprotect.com; 877-289-2824

House-Hasson Hardware Company ...................... 47 www.househasson.com; 800-333-0520

NRHA Young Retailer of the Year.............................81 www.nrha.org/yroty

Woodland ................................................................ 77 www.pinecar.com; 573-346-5555

Howard Products Inc. ........................................... 58 www.howardproducts.com; 800-266-9545

Old Masters .......................................................... 69 www.myoldmasters.com; 800-747-3436

Wooster Brush Company .................................. 11, 53 www.woosterbrush.com; 800-392-7246

HSI................................................................... 62-63 www.hardwaresuppliers.com; 800-334-5625

Oneida Air Systems .............................................. 56 www.oneida-air.com; 800-732-4065

Hy-Ko Products Co................................................ 72 www.hy-ko.com; 800-896-7890

Onward Mfg. .......................................................... 9 www.omcbbq.com; 800-265-2150

HARDWARE RETAILING | January 2018

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

Last Word

Who Are Your Customers?

T

he home improvement industry serves a broad spectrum of consumers. From DIYers looking for trendy tile for their kitchen backsplash to professionals looking for a great deal on a bulk order of plumbing flanges, you never know who might come in the door next.

To help you figure out the best way to serve each customer, we explored what different customer types look for when they come in, even if it’s just to be left alone. For more on how to be ready to address any customer’s questions, check out the training opportunities from the North American Retail Hardware Association at nrha.org/training.

?

The “I’m New to This” DIYer

The “I’ve Got This” DIYer

The “I’m Just Browsing” DIYer

The “I’m Your Best Friend” Pro

This customer may hesitate when they come because they don’t know where to go or don’t know what they need.

Train your team to recognize confusion and to approach these customers with a warm smile. The best question for these customers isn’t “How can I help you?” but “What are you working on?”

This customer knows what they need and they will probably only ask for help if they’re really stuck. Be prepared to help this customer through tricky home improvement projects by keeping your team current on product and project knowledge in a variety of departments.

Some people aren’t sure when inspiration will strike for their next project, so they wander the aisles of their local home improvement store to help them along. Check in on this customer, but don’t overwhelm them. Let them know where they can find new products and project materials throughout the store.

If your business is a resource for professionals, chances are you know this customer outside their profession.

Keep detailed records of their past purchases and what’s happening outside the business, too. Introduce new staff members to these customers to further grow this lucrative relationship.

January 2018 | HARDWARE RETAILING

83

Bobby Fuller Fuller & Son Hardware Arkansas

“Orgill’s people are smart and they care. You can call them any time and they always know who you are.”

Orgill Makes Success Personal Reliable Relationship, Sharp Pricing

Promises Kept

Great People

“I love doing business with Orgill because I know that when

“We have a really close relationship with Orgill. It feels

someone from Orgill tells me something, you can chisel it in

like we pretty much know everyone at the company. Orgill is a

stone because it’s a done deal.”

big operation, but you wouldn’t know it by the way they treat their customers. They are just very real people.”

Competitive Advantage “We are known for being competitively priced with everyone in

Market Benefits

our market, including the boxes. Orgill’s pricing lets us do this. We

“At the Dealer Markets, we always see things we never

also use their Market Specific Pricing system that makes sure we

saw before. We also take advantage of the Market pricing to

are always competitive on price without giving up any margin.”

remain competitive and boost our margins.”

For more information about how Orgill can help you grow your business, contact us today!

1-800-347-2860 ext. 5373 • information@orgill.com • www.orgill.com • Orgill, Inc. 4100 S. Houston Levee Road Collierville, TN 38017