Hardware Retailing October 2022

CONNECTIONS Follow Us Online

ASSOCIATION

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

NHPA@YourNHPA.org YourNHPA.org

OUR MISSION

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

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

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

EXECUTIVE VICE CHAIRMAN

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

DIRECTORS

Alesia Anderson, Handy Ace Hardware, Tucker, Georgia

Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri

Ned Green, Weiders Paint & Hardware, Rochester, New York

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

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

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

SECRETARY-TREASURER

Bob Cutter, NHPA President and CEO

STATE & REGIONAL ASSOCIATIONS

MIDWEST HARDWARE ASSOCIATION

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

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

NHPA CANADA

NHPA CANADA

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

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

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

COMING IN NOVEMBER

EXECUTIVE STAFF

PRESIDENT & CEO Bob Cutter

CHIEF OPERATING OFFICER & PUBLISHER

Dan Tratensek

CHIEF FINANCIAL OFFICER & EXECUTIVE VICE PRESIDENT, BUSINESS SERVICES

David Gowan

EXECUTIVE DIRECTOR, ADVANCED RETAIL EDUCATION PROGRAMS

Scott Wright, swright@YourNHPA.org

EXECUTIVE DIRECTOR, INNOVATION & ENGAGEMENT

Whitney Daulton

Passing on the Business Reins

By the end of this decade, all Baby Boomers will have reached retirement age. This means many independent home improvement owners will also be hitting that milestone and will need to make major decisions about who will take over their business. Next month, we explore the different options retailers have when figuring out what’s next for their operation after they retire and share the resources they need to start planning now for the next chapter.

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Paint and Hardware Association, 1025 East 54th St., Indianapolis, IN 46220. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50/year. Canada $75/year. All other countries $110/year. Single copy $7. The Annual Report issue can be purchased for $30.

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

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

All editorial contents © 2022 North American Paint and Hardware Association. No editorial may be reproduced without prior permission of the publisher.

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

COMMUNICATIONS

317-275-9400, editorial@YourNHPA.org

COMMUNICATIONS & CONTENT MANAGER

Melanie Moul, mmoul@YourNHPA.org

ASSOCIATE EDITOR

Lindsey Thompson, lthompson@YourNHPA.org

ASSOCIATE EDITOR

Carly Froderman, cfroderman@YourNHPA.org

GRAPHIC DESIGNER

Autumn Ricketts

GRAPHIC DESIGNER

Olivia Adam

DIGITAL MEDIA SPECIALIST

Kevin Trehan

PRODUCTION MANAGER

Austin Vance

SALES & PRODUCTION ASSISTANT

Freda Creech

MARKETING MANAGER

Julie Leinwand

SALES

DIRECTOR OF SALES & SOUTHERN SALES DIRECTOR

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

NORTHERN SALES DIRECTOR

Jordan Rice, jrice@YourNHPA.org, 217-808-164

ASSOCIATION PROGRAMS

800-772-4424, NHPA@YourNHPA.org

DIRECTOR OF MEMBER SERVICES & EVENTS

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

DIRECTOR OF ORGANIZATIONAL DEVELOPMENT & CONSULTING

Kim Peffley, kpeffley@YourNHPA.org

TRAINING MANAGER & EDITOR

Jesse Carleton, jcarleton@YourNHPA.org

RETAIL ENGAGEMENT SPECIALIST

Renee Changnon, rchangnon@YourNHPA.org

TECHNOLOGY ™ WATER SHED

SCREEN WITHOUT WATER SHED TECHNOLOGY™

SCREEN WITH WATER SHED TECHNOLOGY™

Water Shed Technology gives a clear view for the life of the product by repelling water and resisting dirt and grime, making them less likly to accumulate on the screen.

. Preserves viewing clarity for more brillant screen

. Remains cleaner longer and increases life expectancy of the screen

. Durable, hydrophobic coating will not wash off

In Every Issue

Prevention Practices

Theft and fraud are inevitable parts of any retail operation, but retailers can fight back with the right loss prevention strategies. Learn what works for fellow retailers and the ways they prevent and mitigate losses in their operations.

Pricing Pressures

A

Peeking Into Paint

Take an in-depth look at the

Safety Sales

With safety and personal protection equipment (PPE) returning to normal levels in the wake of the pandemic, discover what is new and trending in safety and PPE.

—Nicole Randall, International Safety Equipment Association

HOW IPG STACKS

Stay Informed

Scan this QR code or visit hardwareretailing.com/october to read these stories and more.

Mitigating Asset Loss

Choosing the right loss prevention methods for your operation protects your bottom line and can save you and your employees time and energy. Turn to Page 26 to discover loss prevention best practices from fellow retailers and utilize the online resources below.

Skimming Shrinkage

Two retailers share how they handle shrinkage issues from internal sources like inventory mismanagement, employee fraud and other administrative errors.

Prevention Awareness

Read about the methods fellow retailers use to manage and prevent theft and fraud issues in their operations.

Find More Stories Online

OPERATIONS

Pricing Basics

New managers learning the operations side of the business can use these best practices to develop effective pricing strategies.

PODCAST A Hand Up

Dan and Renee sit down with Gina Schaefer, founder and CEO of A Few Cool Hardware Stores. She shares her experiences hiring employees who are in recovery from addiction and the rewarding experience of giving second chances.

INDUSTRY EVENTS Back on the Road

With many events returning in person, NHPA has been across the country attending fall markets and other events and shares updates from around the home improvement industry.

At Redbud True Value in Lubbock, Texas, signage that warns against shoplifters has been helpful in deterring customer theft.

INNOVATION:

In the products and the packaging!

We’re putting the Gordon’s® products you love in new, easier-to-use packaging!

Measuring cup included for simple, accurate mixing Slanted handle for an easier pour

Icons for quick info on the product handle

And the Gordon’s® 1.33-gallon jug features a battery-operated wand sprayer!

EDITORIALLY SPEAKING

CONNECTIONS

Send Melanie a Message mmoul@YourNHPA.org

Melanie Moul

“We are nearly constantly surrounded by mechanisms and instruments that are designed to keep us safe.”

Measuring Security

I’VE ALWAYS BEEN A CAUTIOUS PERSON, from both a physical safety standpoint and when it comes to decision-making. I would much rather take the road most traveled because I tend to trust the instincts of those who have successfully—and safely—gone before me. (But I will also dig my heels in before I stop to ask for directions if it turns out I made the wrong choice.)

At the same time, I understand the value and learning opportunities that come from taking risks. This understanding has become even more apparent since I had my son. It’s important for him to learn how to navigate potentially unsafe situations, like learning to ride a bike, or how to sit through challenging emotions, like when I say no to a fifth storybook at half-past bedtime.

Physical safety and security is something we sometimes take for granted. I live in a very safe neighborhood outside a safe Midwestern city. My employer protects me and our business by keeping the doors locked 24/7 at the office. My car has safety locks and airbags.

We are nearly constantly surrounded by mechanisms and instruments that are designed to keep us safe. If my overly cautious brain stops too long to think about it, I may not take another step.

Safety in your business—whether you’re protecting the business itself, your staff while they stock shelves or serve customers or your customers through the products you sell—is a fundamental consideration in this industry.

Throughout this issue and online at hardwareretailing.com, you’ll find a variety of safety and security content to help you protect your operation, employees and customers. Our cover story on Page 26, featuring the team at Ninth Avenue Hardware Co., discusses the solutions retailers are putting in place to mitigate loss in their operations. Our Category Spotlight on Page 52 is all about the trends in safety equipment and PPE you can offer your customers. We also touch on cybersecurity in Trends on Page 16.

No matter where you land on the cautious to risk-taker spectrum, there are considerations for you and your operation from cover to cover in this issue. In the meantime, I’ll be making sure my doors are locked, charging my phone and planning my escape route. Safety first!

Melanie Moul Communications & Content Manager

TAKING CARE OF BUSINESS

dant@YourNHPA.org

Dan Tratensek

YourNHPA.org/tcb-pod

“We understand how vital it is for progressive retailers to have access to as much information as possible.”

The More You Know

WHEN YOU THINK ABOUT all the things you need to be successful in business these days, it might seem like a pretty long list. But when I look around at all the retailers I know who are aggressively driving their business, there is one asset they covet above just about anything else—information.

The most progressive retailers I know are hungry for information anywhere they can get it. They attend conferences, participate in roundtable groups, commission research, pore over POS reports and even query their own teams for any edge the insights might provide them. These retail leaders understand that access to information, ideas and insights helps them make better decisions.

As a business leader, whether you decide to embrace this concept or not is a choice. There may be some of you out there who rely on your gut instincts and eschew any kind of more formal information gathering.

I guess that’s why they still print paper maps and copies of the Yellow Pages.

At the North American Hardware and Paint Association (NHPA), we understand how vital it is for progressive retailers to have access to as much information as possible. That’s why we are constantly looking for new ways to provide our members with data to feed their appetites.

Take for instance our Cost of Doing Business Study. The latest version is available for purchase by visiting YourNHPA.org/codb. The study provides operators of hardware stores, lumberyards, home centers and paint and decorating outlets with vital insights into how other stores are performing. This study has been around for over 100 years and continues to serve as the standard for evaluating home improvement business performance.

In addition to our venerable Cost of Doing Business Study, we are constantly looking for new ways to add to the library of information we make available to members. For example, this month we are launching a new joint project with noted research firm The Farnsworth Group called the Independent Retailer Index. Together we intend to survey market conditions for independent home improvement retailers regularly and provide these dynamic performance metrics back to the industry.

Lastly, in another new venture, we recently announced that we will be hosting the NHPA Independents Conference next year in Dallas. This conference will bring together retailers, distributors, manufacturers and service providers from across the industry to share ideas and learn from each other. The event’s theme is technology and operational best practices, and attendees will learn more about how leading retailers are utilizing all the tools available to them to overcome challenges in areas ranging from employee productivity and inventory management to customer outreach and marketing. Be sure to visit YourNHPA.org/conference to sign up for updates and receive the most current information on the event.

These are just some of the programs your association is making available to you. It’s entirely up to you whether or not you choose to take advantage of them, but I will leave you with a word of warning: If you aren’t willing to take advantage of all the tools available to you to drive your operation, there is always someone out there who is.

available to you to drive your operation, there is always someone out there who is.

Dan M. Tratensek Chief Operating Officer & Publisher

BUILDING Successful Independents

With one of the most robust networks in the country, Hardlines Distribution Alliance is committed to building the success of independent retailers. With trusted distributor and manufacturer partners, HDA was created to help true independents thrive in an ever-changing home improvement market.

POWER IN NUMBERS

• $7 billion in purchasing power allows dealers to remain competitive

• Over 400 manufacturer partners means customers can find the products they’re looking for

• Over 60 distributor members serving all 50 states means dealers can find the right distribution partner

• Members and manufacturers serve over 14 industries from hardware and plumbing to paint and garden

• Thousands of independent retailers nationwide backed by national branding and marketing

Learn more about HDA by contacting Katie Westervelt, Advertising & Communications Manager, at 303.792.3000 or katie.westervelt@hdaworks.com Find us online at www.hdaworks.com

NHPA Independents Conference

Visit YourNHPA.org/conference to learn more about the conference and sign up to receive notifications when more details become available.

3 Focus Areas Announced for NHPA Independents Conference

JOIN US IN 2023 AND GET YOUR TECHNOLOGY QUESTIONS ANSWERED

The North American Hardware and Paint Association (NHPA) has announced the focus areas for the 2023 NHPA Independents Conference, which will take place Aug. 2-3, 2023 in Dallas.

Featured topics for the two-day industrywide event include operations and productivity, cybersecurity and risk management and marketing and e-commerce.

Guided by the theme of “Putting Technology to Work for You,” the conference will highlight the latest in retail technology and focus on solutions independent

How You Can Get Involved

home improvement retailers are using to improve their efficiency, their customer service and their competitive advantage in the channel.

The event will feature breakout educational sessions, industry-leading speakers and retailer panel discussions. It will also host two popular NHPA programs, the Young Retailer of the Year Awards reception and the Top Guns Awards. In addition to the education, conference sessions and networking opportunities, NHPA will also invite technology and service vendors to exhibit and meet with attendees.

If you have experience in any of these topics in your operation and want to share your solutions at the conference, reach out to Melanie Moul, NHPA communications and content manager, at mmoul@YourNHPA.org

RESEARCH

Access the Industry’s Benchmark Tool

Visit YourNHPA.org/codb to purchase the complete 2022 Cost of Doing Business Study

RESEARCH

2022 Cost of Doing Business Study Now Available

Visit YourNHPA.org/codb to purchase the complete 2022 Cost of Doing Business Study and benchmark your business.

NHPA’S 2022 Cost of Doing Business Study is now available. For more than 100 years, independent home improvement retailers have trusted this annual benchmarking tool to understand how their businesses compare financially to typical and high-profit operations and strategize for the future.

The study offers a wealth of data to help retailers make informed decisions for their operations—with financial

TRAINING

Maintain a Positive Price Image for Your Operation

Visit YourNHPA.org/memberhip to learn more about Premier Membership courses.

WITH HEIGHTENED INFLATION on their minds, many consumers these days are taking a closer look at their spending. To stay competitive, retailers need to keep their prices in line with rising costs while maintaining a positive price image. A solid pricing strategy is essential for staying profitable.

The Basic Retail Pricing online course from NHPA offers an overview of basic pricing concepts and can help owners and managers analyze the effectiveness of their own pricing strategies. The average employee can also benefit from taking this course, as it will give them a foundational understanding of the importance of pricing and how it plays into a business’s marketing strategy.

The course begins with a general overview of why pricing is critical to the overall success of a business. It continues with a module on basic pricing math, showing how to calculate margin and markup. The course also discusses price shopping, different pricing strategies and the importance of maintaining a price image. It concludes with suggestions on how retailers can improve their price strategy to be more competitive while maximizing profits.

The Basic Retail Pricing course is available to NHPA Premier Members on the association’s learning management system.

data from independent hardware stores, home centers, lumberyards and paint and decorating outlets. This year, more than 1,000 retailers participated in the study.

The complete study is now available for purchase. Retailers who participated in the study will receive a free digital copy along with a personalized financial analysis. Visit YourNHPA.org/codb to order your copy today.

Explore Your Health Insurance Options

Learn more about the NHPA Health Insurance Program at YourNHPA.org/health-insurance

HAVE YOU REVIEWED your health insurance options? The NHPA Health Insurance Program provides competitive health insurance benefits.

The program is managed by Custom Benefits Insurance Group Inc. and allows independent operators to access benefits at lower rates due to the volume of retailers who participate in the nationwide program. The program also offers additional benefit options, such as dental, vision, life and disability insurance.

To get started, visit YourNHPA.org/health-insurance, or call 888-201-7408 to speak with a member of the Custom Benefits Insurance Group team.

• Siding lap joints

• Transitions from siding to brick, stone, or stucco

• Around windows & doors

• Around exterior vents & pipes

• Crown molding & trim

• Countertops, sinks & toilets

Look for Sashco brands at your favorite distributor warehouse.

• Showers & tubs is ideal for these applications in various colors:

TRENDS

OPERATIONS

Digital Protection

Learn five resources you can utilize to protect your business from cyberattacks at hardwareretailing.com/ransomware

Purposeful PROTECTION

HOW TO PROTECT YOUR BUSINESS FROM RANSOMWARE ATTACKS

RANSOMWARE IS A TYPE of malware that can either encrypt all your data so you can’t access it or lock you out of your computer or entire network. According to IBM Security’s X-Force Threat Intelligence Index 2022 Full Report, 21% of cyberattacks were ransomware attacks in 2021, making them the top security attack type for over three years. Educate yourself on the risks and discover strategies to avoid these attacks.

Be

Sure to Back Up Fight Against Phishing

of respondents to Sophos’ The State of Ransomware 2021 survey who had been hit by ransomware recovered their data through a backup.

Backing up data, encrypting those backups and making sure they aren’t connected to the primary network are the most effective ways to recover from a ransomware attack. Backups also save you from needing to pay a ransom or losing data.

Super Security

5 Ways to Become Digitally Secure

Implement a tiered system of access.

Use multifactor authentication.

Install firewalls and anti-malware software.

Create a plan to respond to an attack.

of online attacks used phishing for initial access in 2021.

Phishing is when criminals send emails posing as well-known companies or even internal staff to get recipients to divulge sensitive information or to gain access to a network. Implement phishing exercises into employee training to protect your business.

Sources: X-Force Threat Intelligence Index 2022 Full Report, IBM Security; Blueprint for Ransomware Defense, IST; The State of Ransomware 2021, Sophos.

Invest in a cyber insurance policy.

Are You Looking To Remodel Your Store?

For over 116 years, House-Hasson has been the wholesale hardware supplier of choice for the nation’s most successful dealers. Why? Because we customize a store solution just for you.

Therefore if you’re opening a new store or need to update and organize your current store, we can help. House-Hasson’s professional set crew team has over 20 years experience setting fixtures and merchandising stores. Whether you’re expanding departments or adding new assortments, we can help with the design, the merchandise selection and then setting your products for optimized selling. They will also set-up interior signage and bin tag your store to suit your needs.

Our professionals will put together a plan and layout that fits the needs of your particular market. If you need fixtures, custom signage, a plan and the people to put it all together, House-Hasson is your answer. Our industry experts work hard to ensure that we design and deliver the programs, products, and services that make you profitable. And isn’t that what it’s all about?

PRODUCTS

Retailer Recommendations

Send a note to editorial@YourNHPA.org about products you can’t keep on the shelf. Include your name, your business name and reasons why you love it.

Air-Purifying Paint

Gush Cair Air-Purifying Paint contains no formaldehyde, is quick-drying, has excellent burning tolerance and has low thermal conductivity. Catalytic reactions help break down toxic VOCs and unpleasant odors, keeping interiors safe from airborne pollutants. Cair’s air purification capabilities have been tested by TUV, adopting JEM 1467, the standard for air cleaners of households and similar use. Cair is available in 66 colors.

GUSH | gowithgush.com

Wood Fuel Pellets

Made from 100% pure renewable and sustainable wood fiber, Marth Fuel Pellets create extremely low emissions in pellet appliances and leave less than 0.5% ash. They produce an average of 8,000 BTU per pound with less than 5% average moisture.

MARTH WOOD SHAVING SUPPLY marthwood.com or 715-842-9200

Cordless Pin Nailer

Milwaukee Tool’s M12™ 23 Gauge Pin Nailer is a compact cordless nailer suitable for professional carpenters and remodelers alike. Its lightweight, ergonomic design provides accessibility in tight spaces and confined corners. It can drive up to 750 nails per charge and is compatible with pin lengths from ½ inch to 1 ⅜ inches.

MILWAUKEE TOOL | milwaukeetool.com or 800-729-3878

Security Camera

The Wyze Cam Spotlight includes a Wyze Cam v3 Security Camera and spotlight kit. The light turns on automatically when motion is detected, and the camera sends alerts to a user’s phone. The camera and spotlight feature IP65 weather resistance and two-way audio with a siren and can record nighttime video in full color in environments up to 25 times darker than traditional cameras.

WYZE

wyze.com or 202-339-9646

“These

lights give the store a nice margin and are a quality product you can stand behind. The LED paddles are positional and exceptionally bright for lighting up a garage, workshop or any space that needs extra light.”

—Eddie Grundy, Carthage Hardware

Ultra Bright Garage Light

This powerful 6,000-lumen light fits in any standard household light socket and uses the same amount of energy as a standard 60W bulb. The adjustable LED panels can be tilted up to 90 degrees to direct light exactly where it is needed.

NEBO nebo.acgbrands.com

Cordless Power Stapler

The BLACK+DECKER 4V MAX* Cordless Power Stapler is USB rechargeable and weighs less than 2 ½ pounds, which allows crafters to move between craft rooms, garages, basements, studios and anywhere in between to complete projects. It is compatible with staples ranging from ¼ inch to ⁹⁄₁₆ inch (6mm - 14mm) and 18-gauge brad nails (up to 14mm in length).

BLACK + DECKER blackanddecker.com

Box Organizer

YouCopia’s UpSpace™ Box Organizer features adjustable shelves to fit boxes and maximize vertical space. Steel wire shelves hold up to 20 pounds, and nonslip feet keep it securely in place. The BPA-free shelves are easy-to-clean and accommodate long boxes in the pantry or closet.

Moisture Meter

The PREXISO PMX42A Moisture Meter is designed to measure the moisture content in drywall, sheetrock and plaster walls, in addition to sawn lumber, paper, cardboard and materials that harden, like mortar and concrete. It features auto shut-off after 15 seconds at idle, metal contacts and a temperature sensor and uses four LR44 button cell batteries.

PRIME-LINE PRODUCTS

primeline.net or 800-255-3505

Spray Tent

Wagner Spray Shelters are tent-like structures that provide a contained space for spraying paint and stain. While items are drying, the shelters also prevent dirt and debris from coming into contact with the wet paint or stain. Available in three sizes, they’re ideal for projects of all sizes, from small crafts to large pieces of furniture.

WAGNER

wagnerspraytech.com or 800-328-8251

RODENT PROBLEM?

The world’s best rat trap cover combined with a couple of Big Snap-E® Traps can conquer any rat problem. Built with durable ABS plastic, Big Snap-E Covers don’t require any chemicals, resist stains and odors, are easy to clean, and can be reused for years of rodent domination.

Airless Field Striper

Graco’s FieldLazer ES100 Battery-Powered Airless Field Striper features easy-reach handlebar controls and fast-charging batteries. With the two included DeWalt® 6.0 AH FlexVolt® batteries, the striper can spray up to 10 gallons, enough to complete five soccer fields. The no-tools pump replacement system allows for on-field repairs to eliminate downtime, and the adjustable spray guides deliver improved line definition. It is 5-gallon bucket ready, eliminating the hassle of cleaning tanks or pots.

GRACO | graco.com or 866-361-5959

Deck Painting Pad

Ideal for siding, brick and concrete, Shur-Line’s Premium 9” Deck Pad with Detail Edge features a durable, tear-resistant pad, a curved edge for large and small areas and a 3-position soft-grip threaded handle. It is suitable for use with all paints and stains.

SHUR-LINE | shurline.com or 800-253-7856

Cornhole Board Set

Made in New England, Wicked Cornhole’s cornhole boards are regulation size and made of durable cabinet-grade ¾-inch thick birch plywood. Designs are printed directly onto the boards using commercial-grade UV 4 color technology and finished with multiple coats of sprayed hardwood floor polyurethane.

WICKED CORNHOLE

wickedcornhole.com or 978-851-7600

Mid-Range Impact Wrench

DEWALT’s 20V MAX XR® Cordless ½ Inch

Mid-Range Impact Wrench with Hog

Ring Anvil delivers 600 ft-lbs. of max fastening torque and 800 ft-lbs. of max breakaway torque. It is designed to help prevent over tightening in forward and run-off in reverse, integrating a Precision Wrench™ setting to help optimize user control. Its compact size and weight (4 pounds without the battery) make it ideal for pipe flanges, grooved couplings, tilt wall braces, wheel lugs, concrete anchor setting and other applications where high torque is needed in compact spaces.

DEWALT

dewalt.com or 800-547-0780

As you grab your tools, today’s the day. The day you need only one cord on the jobsite, the heavy duty Slim Triple Tap SL3TM. The unparalleled flexibility of this patent pending extension cord allows up to three items to always be plugged in. The slim design of the plug end allows it to be dragged through a jobsite without catching on ladders or door jambs. Whether you’re using a high amp power saw or charging your jobsite tools, our lighted PRIMELOK® locking plug end will keep you confidently connected at all times.

With a temperature rating of -40°F and up to +140°F, it works when you work. Its flexible but durable design makes it easy to coil and reuse on the next project. Ask for it at your local hardware store, the rugged Slim Triple Tap SL3TM, the only cord you need. One and Done.

To stop shoplifters, Ninth Avenue Hardware Co. manager Debra Riedel utilizes technology and trains her employees to spot red flags.

CEASING CRIME

OPERATIONS

Halting Holiday Theft

Discover tips for preventing theft and loss during the busy holiday season at hardwareretailing.com/loss-prevention-holidays.

COVER STORY

Theft THWARTING

3 Ways to Mitigate the Impacts of Theft and Fraud

BY LINDSEY THOMPSON

From organized smash-and-grabs to employee embezzlement and fraud, retailers have been reeling from an increase in asset and product loss since the start of the pandemic. Theft and fraud have always been an unfortunate part of the retail scene, but the pandemic has brought on additional challenges.

According to the 2021 Retail Security Survey, published by the National Retail Federation, 69% of retailers saw an increase in organized retail crimes in late 2020 and early 2021. Nearly 65% of retailers indicated that organized retail crime (ORC) became more of a priority last year, and 53% said internal theft was a higher priority. During the pandemic, 22% of retailers saw a significant increase in ORC, and 16% experienced significantly higher rates of shoplifting.

The pandemic can’t take all the blame for the increase in retail losses, however. The growth of online shopping has led to more cybercrimes while increased felony thresholds, where thefts under a certain dollar amount aren’t prosecuted as felonies or at all, have led to more brazen criminals and incidences of retail crime. In the 2020 Organized Retail Crime Survey, two-thirds of retailers reported seeing an increase in the average ORC case value in states that raised the threshold for felony theft.

Fortunately, just as criminals are getting smarter and bolder, loss prevention programs have also evolved to offer better protection against asset and product losses. Loss prevention is a topic many retailers deem important but it can be hard to address. To aid retailers in tackling this key part of any operation, Hardware Retailing shares best practices from fellow retailers for protecting against these types of losses.

CAUGHT ON CAMERA

The technology at Ninth Avenue Hardware Co. looks for suspicious behaviors on security cameras.

Turn to Technology

When it came to loss prevention methods, each of the three Ninth Avenue Hardware Co. locations in Colorado had been utilizing basic methods and equipment like security cameras and training to spot red flags for several years.

Samantha Pavich, HR and marketing specialist for Ninth Avenue Hardware Co., says customer theft is one of the company’s biggest concerns and an issue that has increased since the start of the pandemic.

“We have those who come in and do the concealment thing, putting items in a bag or under a big jacket,” Pavich says. “More recently and more frequently, we’ve had people run in, grab items and run out.”

The stores were using security cameras but management found they weren’t as effective as they needed them to be.

“Even with the cameras, you need someone watching them all day,” Pavich says. “If you do catch someone, you’re probably chasing them down because they’ve already moved on by the time you can get to them.”

Pavich was looking for more technology-based loss prevention solutions to complement and integrate with existing methods. Thanks to conversations with fellow retailers at the operation’s co-op convention, Pavich discovered Veesion, an artificial intelligence (AI) software that detects theft in real-time using existing security camera infrastructure.

“We were looking for a solution that would allow us to see what was happening without having to constantly watch the security cameras. So many times we would question, ‘Is this person really trying to steal from us?’ or ‘What is this person doing?’ but with Veesion, you can be away from the cameras but still get an alert to see issues unfolding,” Pavich says. “You can see it happening and confront them in real time right there in the store.”

Veesion analyzes video streams and looks for gestures commonly associated with shoplifting, says Hiren Mowji, Veesion country manager for the Americas. Veesion has partnered with Watcher Total Protection to offer home improvement retailers a customized system that better meets their needs. The partnership also allows Veesion to provide stateside support.

When the AI senses a potential shoplifter, a real-time video alert is sent to the retailer via communications platforms like WhatsApp, Telegram, Google Chat and other third-party applications.

Because Ninth Avenue Hardware Co. is new to the Veesion platform, it is only being used at the largest store, A&A Tradin’ Post Ace Hardware in Englewood, Colorado, with plans to eventually add it to the two other locations.

In the short time since Ninth Avenue Hardware Co. has been using the technology, it’s been a useful addition to the operation’s already-established loss prevention

“We didn’t expect it to magically fix all of our problems, but it has helped us figure out an internal system that works with the technology.”

—Debra Riedel, Ninth Avenue Hardware Co.

programs, says manager Debra Riedel. It has changed the way the company approaches loss prevention training for employees, providing them with more concrete examples of what to look for and how to be responsive.

“The technology has allowed us to recognize different opportunities where we can expand on-the-floor-training and work with the management team to make all of our associates feel safe and comfortable,” Riedel says. “We didn’t expect it to magically fix all of our problems, but it has helped us figure out an internal system that works with the technology.”

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Loss Prevention Resources for Your Operation

The North American Hardware and Paint Association offers several loss prevention resources to help retailers with these issues. For more information, visit YourNHPA.org/education

External Theft Prevention. This module focuses on the most common type of external shrinkage—theft from shoplifting—and teaches current trends in shoplifting. It offers insights into why people steal and the most common methods they use, how to prevent shoplifting before it happens and how to confront a shoplifter.

Internal Theft Prevention. In this module, you’ll get insights into the different components that make up retail shrinkage. You’ll learn the whys behind employee theft, the financial impact internal theft has on retailers and ways to communicate the problem of internal theft to employees.

Even with using the technology in just one location, the operation has been able to see where its weak points are in loss prevention, Pavich says.

“It’s been a learning opportunity for us,” she says. “It has shown us what we need to work on in training to get our managers and associates to respond quicker and more efficiently.”

Take Advantage of Training

The recent labor shortages have impacted many areas of business, including loss prevention strategies. At Ninth Avenue Hardware Co. stores, thefts tend to happen more frequently during times when fewer employees are working, like Sunday evenings, or when employees are busy and can’t devote the extra time to keeping an eye out, Pavich says.

“The labor shortages and staffing issues definitely haven’t made things any easier,” Pavich says. “Thieves see it and are taking advantage of the opportunity.”

Even if you are working with fewer employees, offering thorough training on theft and loss can be beneficial. At Redbud True Value in Lubbock, Texas, store manager Kyle Riddle says his operation’s best loss prevention method is training employees to offer excellent customer service, including greeting every customer who walks through the door and inquiring how they can help. Employees are also trained to be observant of unusual customer behaviors such as wearing coats in the middle of the summer or carrying oversized bags.

“Simply realizing we are aware of everyone’s presence in the store through great customer service oftentimes is an effective enough deterrent that changes a potential shoplifter’s mind.”

—Kyle Riddle, Redbud True Value

From the Inside

See how two retailers handle internal shrinkage issues from employee fraud to inventory errors at hardwareretailing.com/internal-shrinkage

“As another layer of customer service, we walk our customers to the products they are looking for instead of just pointing to a part of the store,” he says. “While we don’t crowd the customer, we do offer exemplary service, which most customers appreciate unless their intent is to shoplift. Simply realizing we are aware of everyone’s presence in the store through great customer service oftentimes is an effective enough deterrent that changes a potential shoplifter’s mind.”

Riddle says he has equipped each employee with a walkie-talkie so they can communicate more effectively with one another on the salesfloor. He has also implemented a code system employees use over the walkie-talkies to indicate possible issues in the store and alert other employees to issues as they happen.

“I know for a fact our walkie-talkie chatter has twice prevented shoplifting incidents in the store,” Riddle says. “They are another tool we use to let people know we are aware and are communicating about the store with one another, whether it be routine business or potential theft issues.”

The management team at Hupp Hardware in Wichita, Kansas, also relies on well-trained employees to prevent theft. Susan Lamers, one of the owners, says they train employees to wait on every customer so customers come to expect to be asked if they need assistance multiple times.

“Any customer who is upset by our employees coming around to help is usually not a true customer at all,” Lamers says. “If they complain to me about being followed around, I smile and say, ‘You must not have shopped here before. We want to give personal service to each person who comes in.’ And then I make sure they see other customers are getting the same attention.”

Nearly 65% of retailers indicated that organized retail crime became more of a priority last year.

Source: 2021 National Retail Security Survey, National Retail Federation.

$461.86

was the average dollar loss per shoplifting incident in 2020.

Employees at Redbud True Value use walkie-talkies to stay in communication with one another about potential issues.

STOP SHOPLIFTERS

Keep It Simple

While technology helps prevent theft, sometimes simpler methods can be as effective. Lamers says the biggest issue the store deals with is shoplifting and it relies on straightforward ways to combat theft like security cameras, which they continually upgrade.

“Although we often find the culprit after the fact, if they return, we are able to make them leave the store,” Lamers says. “I save photos of shoplifters and their vehicles on my cell phone, and we can refer back to the photos if the person comes in.”

Lamers says they have replaced low-to-the-ground tinted windows with steel plates and added discreet metal trim to the doors and windows to make entry more of a challenge.

“Replacing the broken window after a theft was usually more costly than the loss of items stolen,” Lamers says. “Since making those door and window modifications, we haven’t

had an entry. We also have an alarm system, but the building modifications have been invaluable.”

For Redbud True Value, adding security mirrors throughout the store has served as a theft deterrent, Riddle says. He also put up additional security cameras to expose blind spots and installed a larger monitor at the front of the store where customers can see themselves on the security camera when they enter the store. Below the monitor is a professional sign that says, “Security Notice, We Prosecute Shoplifters.”

Riddle says he’s also hung signage that has a pair of eyes and states, “Shoplifters Will Be Prosecuted.”

“I read a study that said including a pair of eyes on the signage can deter shoplifting,” Riddle says. “The psychological effect of seeing the pair of eyes on the signage can give a potential shoplifter a change of mind and lead them to not steal. I believe the signage has helped in our store.”

Redbud True Value manager

Kyle Riddle says the security mirrors throughout the store have been an easy way to deter shoplifters.

Solid & Steady

or over 170 years, The Wooster Brush Company has been manufacturing paint brushes, paint rollers and paint accessories in downtown Wooster, Ohio. Adam Foss founded The Wooster Brush Company in 1851 at the age of 18, after he bought a crate at a public auction in Cincinnati containing Chinese bristle. With help from his brother, he used the bristle to begin making and selling Wooster brushes door-to-door in Ohio.

Since that time, the company has never wavered from its commitment to its employees, customers and the independent market. The Wooster Brush Company has a long history of limited backorders, and at the start of the pandemic, it quickly developed a process to manage the influx of orders and keep product in retailers’ hands. The company prides itself on being vertically integrated, with all its products manufactured in the U.S., which helped with ongoing supply issues.

“OUR BUSINESS GREW WITH THE INDEPENDENTS DURING THE PANDEMIC, AND WE CONTINUE TO INVEST IN THE INDEPENDENT CHANNEL.”

—BEN MAIBACH, PRESIDENT

“PEOPLE TURN TO THE TRADITIONAL MARKET FOR HELP, GUIDANCE AND EDUCATION, AND THAT’S WHERE THEIR VALUE LIES.”

—SCOTT RUTLEDGE, SENIOR VICE PRESIDENT OF SALES AND MARKETING

“Our business grew with the independents during the pandemic, and we continue to invest in the independent channel,” says president Ben Maibach. “We invest in inventory so they have what they need when they need it. We also invest in our future, preparing for what independents might need in 10 years, and invest in more traditional ways, such as discounts on a new store order.”

The Wooster Brush Company was built on serving the independent marketplace, and almost two centuries later, that commitment to independent retailers is still evident. The company strives to continually meet marketplace expectations and provide high-quality products, says senior vice president of sales and marketing Scott Rutledge.

“We want to meet them where they are,” Rutledge says. “We don’t want the traditional marketplace to feel like they continually have to compete with the big boxes, that they have their own areas of growth opportunities.”

To see the company’s dedication to independents in action, you only need to walk a few blocks up the street to E&H Hardware, which boasts the largest Wooster Brush display in the country. The company worked closely with E&H Hardware to create the display, and is just one example of The Wooster Brush Company’s commitment and desire to help the channel grow and provide value to the industry.

“People turn to the traditional market for help, guidance and education, and that’s where their value lies,” Rutledge says. “We want them to know that they have value not only to us, but they have value to their customers and the independent market.”

FOR THE KIDS

Darville Lumber Co. in Exuma, Bahamas, recently started a free summer camp for local kids. Campers learned new skills and tried many different activities.

How to Give Back to the Communities You Serve OPERATIONS

Giving GOALS

BY CARLY FRODERMAN

Known for providing an extra layer of customer service, independent home improvement retailers have always been in the business of helping customers. For generations, independent home improvement retailers have taken this idea a step further and found ways to give back to their communities and the customers they

serve in personal and impressive ways. From donating to local nonprofit organizations to starting a summer camp for kids in the community, there are many levels of giving back, each impactful in its own way. Whether you already give back regularly or are looking for new ways to contribute, read on to discover the different ways retailers are supporting their communities.

OPERATIONS

Giving the Most

Discover five ways to do more with your community donations at hardwareretailing.com/more-donations

Wrangling Customers

Through the Rodeo

Penn Valley True Value owner Scott Gutierrez stays connected to his community by supporting local causes like the local chamber of commerce, Little League teams and more. His store is also a major sponsor of the Penn Valley Rodeo, located behind the store in Penn Valley, California. He says many of the farmers and ranchers in the area attend the rodeo, see how Penn Valley True Value is connected to the event and turn to the store when they need equipment and other supplies.

“To be able to tie yourself in with the community and give back, it comes back tenfold,” Gutierrez says. “Supporting the community has been a big focus since I’ve taken over the business. If you help the community, they are going to have your back too.”

The support goes both ways too; when the store hosts its anniversary sale, volunteers from the Penn Valley Rodeo Association cook hotdogs for the event.

“I don't even need to ask them, they go down and pick up the food for us, and they cook it. It’s pretty neat to see the community working together,” Gutierrez says. “I feel strongly that tying yourself into the community is the best way to get your foot in the door with as many people as possible.”

Art Meets Hardware

An artist himself, Jon Wisthoff, store manager at Williston Ace Hardware & Flooring, wanted the residents of Williston, North Dakota, to have a place to purchase art supplies. He added the niche category to the store and came up with the idea to hold art classes in the store to promote the new art department. He posted signs about the classes in the store and customers immediately started showing interest. Wisthoff hosted the first class in 2017 and has been hosting around one class a month during the winter since then.

During the pandemic, Wisthoff had to put the classes on hold but was able to start them up again earlier this year. Typically, Wisthoff will have five to nine people per class, and some have been in almost every class since they started. The classes are open to all experience levels.

Wisthoff has been a painter since 2012, when he took his first painting lesson and fell in love with the medium. He had a long-time interest

adoptable pets and families for

years.

Curtis Lumber (top) has been bringing together

12

Williston Ace Hardware & Flooring (middle) holds painting classes. Penn Valley True Value (bottom) supports its local rodeo.

Caring for the Community

See how partnering with local service providers builds customer loyalty at hardwareretailing.com/local-providers

Helping Hands

11 Ways to Give Back to Your Community

1. Host local food trucks in your parking lot.

2. Sell locally made products.

3. Organize a food drive.

4. Sponsor a scholarship.

5. Host a car show in your parking lot.

6. Organize a pumpkin painting or carving contest.

7. Host a farmer’s market or craft fair in your parking lot.

8. Sponsor a local sports team.

9. Hold free DIY classes, product seminars or how-to’s at your store.

10. Provide free coffee.

11. Organize a coat exchange.

in art and did pottery, sculpting and carving before taking up oil painting. When he paints, he primarily focuses on landscapes, so that is what he teaches in the classes.

“Most of the subjects I paint are old, abandoned farmsteads close to where I live, so that is what we work on in class, focusing on everything from the sky to the buildings to water,” he says. “Each subject has its challenges, but it’s really fun to see how the paintings will vary between the artists and the style they put on the canvas.”

Supporting Man’s Best Friend

For 12 years, Curtis Lumber, which has 23 locations in New York and Vermont, has hosted PetAPalooza, an adoption event that has placed over 5,000 pets into loving homes since it began. The event finds homes for dogs, cats, bunnies, birds, farm animals, horses and reptiles.

The Curtis family has always been an advocate for abused, neglected and forgotten animals and started PetAPalooza in hopes of shedding light on adopting shelter pets in need, says marketing coordinator Jennifer Stickney.

“The Curtis’ have used the company’s name to help get the word out to the public to not only adopt shelter pets but also have pets spayed or neutered to avoid unwanted strays in our local communities,” she says.

PetAPalooza connects Curtis Lumber with pet lovers in each of the 23 communities where the company has stores. Local shelters and rescue groups can bring their adoptable pets to the event to interact with attendees.

“This informal setting really makes a difference in getting these pets adopted while the public enjoys a fun family day out,” Stickney says. “Pets are family, and there is no greater service we can provide than giving community members years of joy and love via their newly adopted furry friends.”

Camp for Kids

Keith Darville, owner of Darville Lumber Co. located in Exuma, Bahamas, recently started a summer camp for kids in the area with the help of his girlfriend, Haley Staples.

“Here in Exuma, local kids don't have much to do during the summer, and a lot of parents don’t have the time or resources to occupy them,” Darville says. “I was talking with Haley about what we would do with our own kid over the summer; we came up with the idea of starting a summer camp, and it really snowballed from there.”

While other summer camps exist in the area, none last six weeks or are free to attend. When they decided they were going to create the camp, Darville and Staples reached out to a local foundation, which provided a building to serve as

LIVE AND LEARN

Darville Lumber Co. started a summer camp for local kids to provide them with additional educational opportunities and new experiences.

“I think everyone should get a chance to attend. Education should be fun.”

—Keith Darville, Darville Lumber Co.

headquarters for the camp. Darville and Staples planned the camp in just two weeks, and when the 20 local kids, who ranged from ages six to 12, arrived on the first day, everything was ready.

The camp gave the kids an assortment of experiences, from learning how to swim to visiting a construction site to making pottery and other art projects. Campers were also able to visit a different island and go on nature trails where

they learned about different plants and fish.

“A lot of the activities they did, they had never experienced before,” Darville says. “It was amazing how interested these kids were in everything. They just have such curious little minds.”

Those who were interested registered on Facebook, but with limited space and over 60 kids interested in attending, Darville chose attendees based on their level of need.

“The funds came out of my own pocket at first,” Darville says. “It wasn’t long before we had people reach out to volunteer, donate and offer to help with anything they could.”

Darville emailed all his customers to get the word out and credits the emails, Facebook and word of mouth for raising the awareness in the community that led to funding and support. He has also made an effort to be transparent in how donations have been used. He plans to release a financial statement along with lists of volunteers and donors.

“I’d really like to see the camp continue in 2023,” Darville says.

Because the camp has such a long waiting list, a new batch of kids will be attending the camp next summer, but like before, only local kids will be qualified to attend.

“I think everyone should get a chance to attend,” Darville says. “Education should be fun.”

Pricing 101

Suitable for all employees, NHPA’s Basic Retail Pricing course explains pricing fundamentals. Learn more at YourNHPA.org/membership

4 Strategies to Relieve Pricing Woes

BY JESSE CARLETON

If you’re not making price changes today, you may not be in business tomorrow. That’s the stark reality of a market plagued by higher-than-normal inflation and supply chain issues. When cost outruns the shelf price, retailers who fail to keep up may run out of cash, making a solid pricing strategy essential for survival.

To learn how retailers are coping with pricing, Hardware Retailing spoke with three retailers who have built strategies that have helped them weather the pricing storm of the past few years. They offer four key components of an effective pricing strategy and a positive price image.

Review Retails Regularly

This year, inflation has caused prices in the home improvement industry to change frequently, sometimes as often as weekly. That’s a shock for an industry where, in the past, retailers may have gotten by with relatively few price changes or low inflation every week. Jeff Pardini, owner of Hills Flat Lumber with two locations in northern California, says making price adjustments isn’t optional if you want to stay in business.

“If you haven’t raised your price and you can’t replace your inventory because your new cost is higher than your retail, then you’re not going to

have the money to restock or pay your people or even pay the power bill,” Pardini says.

With the exception of tariffs, the hardware market has been nearly inflation-free for almost 10 years, but now Pardini says there are at least four to five times more price changes as there were a few years ago. He reviews and updates prices at least once a week. Lately he’s been sending out as many as 800 price changes per week for each of his two stores.

As both a retailer and a software developer, Brad Green has spent his career thinking about pricing strategy and helping retailers understand the impact even small price adjustments can make to the bottom line. He owns two home improvement stores, West Branch Ace Hardware and Standish Ace Hardware in Michigan, and is the creator of the Margin Master pricing software. He says that many retailers have long struggled with pricing, and the current state of inflation will make matters even worse.

“First, lose the assumption that everything is priced correctly in your store,” he says. “Pricing for most retailers is a mess, and it’s costing them 2% or 3% profit simply because prices are not where they should be. And you can’t make up the profit you’re losing, for example, by cutting more keys; you need to update your retails to a proper price point.”

Matt Meyer owns Meyer Ace Hardware and just added his fifth location in northern Michigan. He made the move to clean up his pricing structure a few years ago, which

gave him a better foundation to deal with the avalanche of pricing challenges that started in 2020.

“We hired a consultant to help us rebuild our pricing strategy, top to bottom,” he says. “As part of the process, we installed a pricing software that helped us better control our prices and maximize our margins across the board.”

“Pricing for most retailers is a mess, and it’s costing them 2% or 3% profit simply because prices are not where they should be.”

—Brad Green, West Branch Ace Hardware and Standish Ace Hardware

Once the system was set up, ongoing maintenance was easier, and he’s been able to get his staff into a regular pattern of making price changes. He downloads price changes from his co-op every Monday, gives his staff a couple of days to make the adjustments on the shelf and then finalizes the changes in his POS system. He says it’s important to keep up with it, because missing even one week can put an extra burden on the staff.

Getting prices on the shelf can be where many retailers have trouble. One of the most common complaints Green hears from other retailers is that they don’t have time to change prices. To compound the issue, it’s hard enough to find enough staff to wait on customers, let alone change the bin tags for a price adjustment. However, not changing the prices is costing you significant profit dollars and can also lead to customer confusion if the price on the shelf doesn’t match the price at the register.

If you’re short staffed or can’t get the changes done during regular store hours, you may need to ask employees to stay after for a couple of hours and pay them for the extra time.

“Get creative and make it fun,” Green says. “Maybe buy them pizza or a movie ticket. It’s amazing how many bin tags a handful of people can change in a couple of hours.

Review Your Pricing Strategy

Higher cost of goods, higher expenses due to inflation and rising labor costs are just a few of the reasons why, more than ever, retailers need to be savvy about their pricing. If it’s been a while since you reviewed your overall pricing strategy, take the time to analyze every department in your business to make sure you’re maximizing your margins. But don’t use the same strategy for every department.

“You can’t paint the whole store with the same pricing strategy,” says Meyer. “There are some areas where you want to be more competitive. You have to look at your business department by department. You can often make more margin on lower priced items, like drill bits for example. Make sure you’re also using a rounding strategy that will give your margins an extra boost. Rounding up even by 10 cents on an item can add a lot of money to your bottom line.”

Make sure you’ve kept up with any changes in the competitive landscape around you, too. Using suggested retail prices is a good start, but you may choose to adjust the prices based on your goals for a particular department.

“Too many retailers blindly follow suggested retail price,” Green says. “But there are many unique pricing opportunities and challenges in every market.

DIY Opportunities

Through Inflation

While rising prices are affecting consumers’ purchasing, there is still a high intent to pursue home improvement projects, spelling opportunities for retailers.

Source: Numerator 2022 July Home Improvement Report of households still plan to pursue home improvement projects in the second half of 2022.

How Price Affects DIY Projects

Price has become a top concern for homeowners tackling DIY projects, meaning it’s more important than ever for retailers to create a value proposition to earn their business when they’re ready to buy.

Implementing an intelligent market-driven pricing strategy will deliver an improved bottom line. Establishing pricing that achieves your desired profit level is the most important role in a retail operation.”

There may be areas where you need to maintain a thin margin to stay in line with competitors on price-sensitive items. However, there are also many areas where you can improve margins without affecting your pricing image.

“Everyone is looking at prices more, but there are some items where it doesn’t really make a difference,” Pardini says. “If you’re not sure if a particular item is priced right, then ask five different people on your staff what the price should be. If you get five different answers, then it’s a good bet your customers don’t know what the price is either. And if your customers think the price is too much, they’ll let you know. In the meantime, don’t undervalue your business by keeping your prices too low.”

Pardini suggests retailers use a price management software such as Green’s Margin Master to keep up with price changes and identify margin opportunities. Many times, price changes will be incremental and customers may not even notice.

When Green and Pardini talk about raising prices, they’re not talking about gouging customers. Rather, they suggest strategically

OPERATIONS

New Manager Training

Get some additional pricing basics every new manager needs to know, at hardwareretailing.com/pricing-basics.

adding even a few pennies or dimes to the price on selected items, which will make a big difference for the business.

“I think pricing is critically important. If retailers had a way to drive another 3% or 4% to their bottom line by something other than pricing management, they would do it,” Green says. “They’ve already squeezed their expenses to the max, and there’s not a lot of other places to turn for margin improvements. But a small 5 cent or 10 cent change in price adds significantly to the bottom line.”

Have a Price-Matching Policy

Even if you’re making weekly price changes and the cost on the shelf is higher than it’s ever been for consumers, it is still important to maintain your competitive price image. Inflation is hitting all home improvement retailers equally and big-box retailers will also be raising their prices to stay profitable. As it has always been, using a price-matching guarantee will be one of the best ways to level the playing field and survive today’s pricing challenges.

“Many retailers may be fearful of it but it’s important they get past it; hang up a banner in your business that says you’ll match anyone’s price,” says Green. “Home Depot and Lowe’s both do

“We feel we need to be reasonable on the price, but let quality and service lead.”

—Jeff Pardini, Hills Flat Lumber

that, and in fact say they’ll beat a competitor’s price by 10%. Don’t be afraid to do that too. If we were to track how many times a customer actually asked to match a price, it’s not very often.”

When a customer does challenge your price, then match it, even if you make little or no margin, he says. If the customer wants you to match the price on an item that is not the same as what you sell, for example, it’s a different brand or model with different features, then take the time to explain the quality differences between your product and the competitor’s. Put the focus on the quality of the product rather than the price.

Even when the price match seems unjustified, don’t send the customer away upset and without the product, because they may never come back. By rejecting their price match request, you will have solidified in that customer’s mind the impression that your prices are too high, especially if they visit a discount retailer and start comparing all of your prices. The cost of losing that one customer, who is sure to tell their friends about their experience, is more than a few dollars lost on a single product.

Cutting Back

Of the 54% of consumers who said they would decrease or stop spending on non-essential items in the second half of 2022, only 35% said they would cut back on home improvement purchases.

Most Common Items to Cut Back

Restaurants Non-Essential Food Apparel Recreation

Source: Numerator 2022 July Home Improvement Report

Price Discrepancies

Read what one retailer learned about the importance of keeping up with price changes, at hardwareretailing.com/state-price-inspections

Instead, says Green, maintain your price image the same way the big boxes do. Price match, but also utilize good merchandising techniques such as endcaps, dump bins and impulse displays. Look for margin opportunities wherever you can but also make sure you are priced right on all of the price-sensitive items.

Since you have a price-matching policy, customers will perceive you are priced competitively. The amount of price competitive leverage you can gain with a price-matching policy far outweighs any money you may lose on a single transaction.

Win on Service

Customers want low prices, quality and service. Pardini says most retailers offer a combination of competitive prices, outstanding customer service and quality products, but at the end of the day, one or two of those three will rise to the top as what sets you apart. Hills Flat Lumber has been in business for more than 100 years, and over that time, Pardini says they’ve tried a variety of tactics to appeal to the customer. They’ve had the most success striking a balance that leans toward service, which usually wins out over price in attracting repeat customers.

“In the past, we’ve tried carrying cheap lumber, and we usually just ended up with unhappy customers and piles of junk lumber we couldn’t sell,” he says. “It doesn’t matter how cheap the price is if the quality is so bad the product is unusable, and if the service level is bad, it doesn’t matter how good the quality

or how low the price. We feel we need to be reasonable on the price, but let quality and service lead.”

Customers who find good customer service and a quality product at your business will return. Most will expect to pay a slightly higher price in return for that shopping experience. In the end, a healthy retail strategy should be value-based rather than price-driven.

Pardini continually looks for ways to strengthen the value proposition he offers to customers. He encourages retailers to think about what service means to their customers. It might mean extending your business hours or offering convenient parking. You may need to do online sales better than anyone else or offer free delivery. Hills Flat Lumber offers free delivery and installation on the appliances they sell, which is a service others in the market don’t offer.

Even during a time of high inflation, value will still make a difference when customers choose where to shop.

“When a customer pulls out of their driveway and heads for the hardware store, they’ve already made up their mind where they are going,” says Green. “They could turn one way and go to the big-box or turn the other and go to your store. They’re coming to the independent retailer, maybe expecting to pay a premium price, but they are also expecting you to call them by name, ask about their kids, and ask them how you can help them. That’s why they‘re coming to you. If they were only looking for the cheapest price, they could order it on Amazon and have it tomorrow.”

INDEPENDENTS CONFERENCE

Paint Points

INSIGHTS FROM THE HOME IMPROVEMENT RESEARCH INSTITUTE

In what seems to be a common refrain for many types of products and services involved in home remodeling and renovation, the paint product market has been overwhelmed with strong demand and supply constraints in the previous year. Early in the pandemic, homeowners confined to their homes did exactly what you would expect and began to modify their houses. At that point, due to the understandable health concerns, much of that work was DIY.

Historically, the Home Improvement Research Institute (HIRI) has tracked painting as one of the lowest barriers and easiest DIY entries in home remodeling. Paint and preservative sales estimates demonstrated significant DIY painting activity throughout 2020 with 15.6% growth and another 8% growth in 2021, showing there was very high demand for paint products. In fact, in HIRI research, we see the number of households that purchased paint and sundries increased by 16% from 2019 to 2021.

DIY Painting Activity

RESOURCES Top Paints

Gain insight into customer paint satisfaction at hardwareretailing.com/paint-satisfaction

Moving forward to this year, we are seeing a slightly different picture. On the consumer side, HIRI isn’t expecting to see any growth in paint sales over 2021. While it sounds negative, it is saying that demand is still at nearly an all-time high. There is no expected shrinkage in the market, just no growth. On the pro side, we see a shifted timeline compared to consumers. While 2020 had moderately strong growth for pros, it was not comparable to the consumer side of the equation. That difference shifted in 2021 with much stronger growth for pros than consumers. Now moving into 2022, pro sales growth is tempered but still much stronger than the consumer side.

Supply Becomes Major Focus

With strong demand for the better part of two years, paint suppliers, while rushing to meet demand, are struggling to keep up. While the manufacturers have been facing similar delays as manufacturers of other types of products, there are additional aspects that act as a headwind to keeping up with this strong demand. While not often thought about, there are dozens of individual components that go into making paint, and each of them has its own supply chain and constraints. Some of these supply chains have seen reduced production in some form or another. Originally, we were seeing additive shortages to create certain hues of blue paint in 2021. Without consistent dyes and additives, it becomes impossible to achieve consistency from one batch of paint to another.

Lately, we’ve been seeing more natural disasters playing a role: weather slowing down petroleum production, fires at a polymer factory, wildfires devastating linseed crops and others. These struggles will sort themselves out over time, but it is not an expedient process and will have some lasting impacts on the paint market for the next several quarters.

“While not often thought about, there are dozens of individual components that go into making paint, and each of them has its own supply chain and constraints.”

Putting Safety First

What’s Trending in Safety and PPE

BY CARLY FRODERMAN

Whether your customers are professionals needing safety gear to stay safe on the job site or weekend warriors wanting to protect themselves during DIY projects, stocking a good mix of safety and personal protection equipment (PPE) makes your operation a one-stop shop. Selling safety gear and PPE also provides add-on sales opportunities. Along with educating your customers on the importance of safety gear and PPE, read on for what’s new and trending this year in this category from Nicole Randall, director of marketing and external affairs for the International Safety Equipment Association.

CATEGORY SPOTLIGHT

RESOURCES

Keeping Up With Compliance

NHPA offers a convenient and affordable way to train employees on safety. See the courses available at YourNHPA.org/training-store

What’s NewWhat’s Trending

Randall says the U.S national standard for first-aid kits, which includes minimum requirements for workplace first-aid kits and supplies, was updated and released this year. Prepare your customers for the changes by educating yourself on the new standard and what products to carry that meet the new requirements. If you keep a first-aid kit in your store, this is also an opportunity to update your own safety gear.

“Hardware retailers should understand this new standard and the items listed in it so that they can help customers know what supplies they need to ensure their first-aid kits are compliant,” Randall says.

Updates include mandatory foil blankets, more specificity for tourniquets and other crucial items.

Mitigating heat stress has become a major focus this year, Randall says. The Occupational Safety and Health Administration (OSHA) has been conducting reviews of heat stress hazards at or on job sites as part of a new National Emphasis Program.

“It’s important for sites to have a plan in place to reduce exposure to sun and heat, aimed at preventing heat illness or stroke,” Randall says. “Along with prevention tactics such as rest, hydration and shade, cooling PPE can be used to reduce the core body temperature.”

Along with cooling PPE, carry other products like sunscreen, hats, cooling towels, handheld fans and water bottles your customers can use to stay safe on the job site.

“The COVID-19 pandemic put a spotlight on safety like never before. Prior to March 2020, the acronym PPE was only known to those who use or wear it. Now the world understands protection is necessary when dealing with hazards on the job and when mitigating health and safety risks.”

—Nicole Randall, International Safety Equipment Association

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COMMUNITY

Fired Up to Help

RETAILER SUPPORTS FIRE DEPARTMENT IN A BIG WAY

EACH YEAR, the Sugar Creek Fire Department hosts a Fire Protection and Life Safety Open House. And every year since 2007, Rob Walker, owner of New Palestine Hardware in New Palestine, Indiana, serves as a major backer for the event.

The open house features junior firefighter combat challenges, emergency medical training simulators, safety demonstrations, kids’ activities and more, says Beth Gulley, fire and life safety educator for the Sugar Creek Fire Department.

“We are lucky to work and live in a tight-knit community that supports our efforts,” Gulley says.

“Our event offers a free fun-filled day of learning and activities centered around fire, injury and illness prevention.”

Walker’s networking in the community not only expands reach for the event, but unites community businesses, with local insurance agent Brent Reece working with the fire department and Walker to make the event a success.

“Fire Prevention Week in October is near and dear to my heart,” Walker says. “Supporting the fire department is an easy way to spread the word about fire safety and help our customers.”

New Palestine Hardware is a major supporter of the Sugar Creek Township Fire Department’s annual Fire Protection and Life Safety Open House.

Photo by Dave Meeker

From Retailer to Firefighter

At Bartlett Lumber, which has 10 locations in the Texas panhandle, owner Terrill Bartlett and several of his employees are volunteers with local fire stations and EMT units. As part of their firefighter duties, Bartlett Lumber employees take part in community activities like the 9/11 Memorial Stair Climb and fire prevention programs at local elementary schools.

“The Canadian fire department takes the pumpers and ladder truck to the school campuses,” Bartlett says. “We talk to the students about fire safety and then load them in the fire trucks to take them around town with sirens and lights blaring. They have a blast, and so do we.”

When an employee is working at any of the store locations while on call as a firefighter, they do not have to clock out if they leave the store for a fire or EMT emergency.

“We still pay them for the time they are away from the store because I want them to focus on staying safe and completing their volunteer duties,” Bartlett says. “We’re grateful for our employees and appreciate that they want to go the extra mile in our communities.”

COMMUNITY

Fire Prevention Week is October 9-15

Sponsored by the National Fire Protection Association, Fire Prevention Week celebrates its 100th anniversary this month with the theme, “Fire Won’t Wait. Plan Your Escape.” This week is the ideal time to promote fire safety in your store with your customers. Visit nfpa.org/fpw to download resources you can share to encourage customers to protect their homes and turn to you for the products they need to stay safe.

Buck’s Ace Hardware Donates Grills and Supplies to Local Firehouses

For Buck’s Ace Hardware, giving back is a natural part of business. The company gives back to the community in different ways, including donating grills to local firehouses. Jake Hurst, sporting goods and barbecue manager for Buck’s Ace Hardware, which has three locations in Utah, says the company partnered with Traeger to provide the grills and pellets.

“We are always looking for ways to give back, and this was a great way to honor our local firefighters,” Hurst says. “So far, we have donated grills and pellets to 13 staffed firehouses in the area. And we plan on continuing to donate a grill to every new firehouse that opens in our community.”

Several employees of Bartlett Lumber volunteer as firefighters and take part in various community events like the 9/11 Memorial Climb.

Buck’s Ace Hardware in Utah gives back to the community in many ways, including donating grills and supplies to local firehouses.

NETWORK Make a Plan Visit YourNHPA.org/cal to find more industry events online. CALENDAR

CLOUD, MN

Events are current as of press day.

To add your event to the industry calendar, send an email to editorial@YourNHPA.org

Arrow Fastener 29 arrowfastener.com/bladedeal Bonide 33 gotpestsgetrevenge.com

DICO Products 24 dicoproducts.com

Gordon’s USA 7 gordonsusa.com/new-packaging

Great Northern Equipment Dist. 39 gnedi.com

House-Hasson 17 househasson.com

Howard Products 45 howardproducts.com

Intertape Polymer Corp. 5 itape.com

Kness Mfg. 22 kness.com Knox Fertilizer 46 knoxfert.com/schultz

Lighthouse for the Blind 23 rapidfix.com

Oak Bank 56 liveoakbank.com/hardware-store

Mayhew Tools 47 mayhew.com Midwest Fastener Corp. IFC-1 constructionscrews.com

BUSINESS FOR SALE

Northwest Farm & Home Supply Co.

Location: Lemmon, SD

Gross Revenue: $3.21 million

The main building is a total 27,213 sq. ft. of retail and warehouse space on 4 acres. The main bldg. was constructed in 1994 with additions constructed in 2002 & 2004. Single story with 22’ clear height in 11,459 sq. ft. of lumber warehouse, three grade level doors and two dock height doors.

BUSINESS FOR SALE

Central Vermont Paint, Flooring, and Decorating Business

Location: Vermont

Gross Revenue: $2.82 million

Price: $1.1 million

Full-service decorating store providing flooring, paint, window treatments, kitchen/bathroom remodeling, cabinetry product offerings, design assistance, specialized service, and professional installation.

SEEKING BUSINESSES

The Aubuchon Company

BUSINESS FOR SALE

Home Improvement Supply Store

Location: Missouri

Gross Revenue: $1.04 million

This historic home improvement and hardware store is a staple of its community and operates from its headquarters in Missouri. The Company is a long-standing retailer and installer of consumer and commercial improvement products.

BUSINESS FOR SALE

Hoosick True Value

Location: Hoosick Falls, New York

Gross Revenue: $1.26 million

Price: $1.875 million

This opportunity offers a turnkey sale of a general hardware operation located in northeastern Rensselaer Co., New York. The business serves five towns, southwestern Bennington Co., Vermont, and 25 miles east of Troy, New York.

For our next acquisition, we are looking for:

• Single-store and multi-store hardware operations

• Located in northeast and southeast United States Store size of 5,000-30,000 ft2

• At least $3 million in average store sales

BUSINESS FOR SALE

Private Business

Location: Alabama

Gross Revenue: $2.21 million

Price: $649,000

SEEKING BUSINESSES Bolster Hardware

We are looking for:

• Geography agnostic

• With or without real estate Store revenues of $1.5M+

• We prefer to honor the family name and heritage in the local community by not changing the name

• We prefer to keep all employees as part of the acquisition

LAST WORD

Prevention Best Practices

Read about the loss prevention best practices other retailers are utilizing in their operations at hardwareretailing.com/loss-prevention-tips

HALTING LOSSE

S3 RETAILER RESOURCES FOR LOSS PREVENTION

THEFT,

FRAUD AND SHRINKAGE

can wreak havoc on a business, with the 2021 National Retail Security Survey reporting that the average dollar loss increased from 2019 to 2020. The average loss for shoplifting was up 71%, and dollar loss from robberies increased an astounding 816%. Fortunately, retailers don’t have to fight alone. Read on to discover resources and organizations to guide your loss prevention strategies, and turn to Page 26 for more loss prevention best practices.

NRF PROTECT

An annual conference hosted by the National Retail Federation (NRF), NRF PROTECT brings together retailers and law enforcement agencies from the federal, state and local levels. The event addresses changing threats with new strategies and shares tools and resources to combat retail crime.

National Organized Retail Crime Committee

In February 2022, the Coalition of Law Enforcement and Retail (CLEAR) formed the National Organized Retail Crime (ORC) Committee, made up of nationally recognized experts in ORC from the law enforcement and retail communities. The committee provides an opportunity for industry collaboration to make an impact against ORC and looks to partner with retailers to meet its goals.

State and Local Governments

Several state governments, including Illinois, Missouri and California, have recently established retail crime task forces that work with retailers dealing with ORC. Check with your state’s attorney general’s office or public safety office to see if any resources are available at the state level. Your local law enforcement agencies are also a good source of information.

Grow Your Business From the Inside Out

NHPA offers a variety of programs and assessments to help build the people side of your business and improve communication, reduce conflict and increase overall productivity.

TeamBuilder

TeamBuilder is an assessment of the people side of your business. It analyzes your current organizational structure and staff members to help you maximize their potential.

DiSC

Everything DiSC® is a personal development learning experience measuring an individual’s communication preferences and tendencies based on the DiSC model, resulting in a more engaged and collaborative workforce.

Vision Process

The Vision Process is a year-long journey toward strengthening your team, defining company values and building processes and best practices that fit your goals

Consulting

Retailers looking for other solutions can take advantage of our hourly consulting options, ranging from owner support, manager mentoring, operational support and more.

HERE TO HELP

Kim Peffley

Director of Organizational Development & Consulting, NHPA

Kim Peffley began her career over 25 years ago, working at her family-owned True Value, and then served as General Manager for a seven-store Ace chain. She established development and mentoring programs, created merchandising procedures and was instrumental in driving sales, decreasing expenses and growing the business.

As a certified Everything DiSC® Facilitator and Consultant, Peffley uses her industry-specific retail management and leadership experience to offer professional training and support to retailers.

CONTACT KIM PEFFLEY kpeffley@YourNHPA.org 219-776-0094

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COMMITTED TO THE LAST MILE

Our Fleet, Our Drivers

Orgill’s commitment to getting products into your store is paramount. Our modern, private fleet of 400+ trucks are all driven by Orgill employees. Not only do our drivers keep things running smoothly, but our operational model controls our expenses and we pass these savings along to our dealers.

We’ll go the extra mile for you. Contact us today.