Issuu

Serving Hardware, Home Center & Building Material Retailers

Big Sky Retailing NRHA Board Chairman TJ Comstock Talks Life, Business in Montana 62

What Do Customers Really Think About Your Service? 48

VOLUME 215 • ISSUE 3 • SEPTEMBER 2018 • HARDWARERETAILING.COM

Take Flight by Expanding Your Birding Niche 74

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Big Sky Retailing

NRHA Board Chairman TJ Comsto Talks Life, Business in Montana 62

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VOLUME 215 • ISSUE 3 • SEPTEMBER 2018 • HARDWARERETAILING.CO

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AD #4 What Do Customers Really Think About Your Service? 48

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Take Flight by Expanding Your Birding Niche 74

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September 2018 | HARDWARE RETAILING

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HARDWARE RETAILING | September 2018

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September 2018 | HARDWARE RETAILING

Checkouts EVENTS

Preparation Before the Storm

n the wake of a natural disaster, it only makes sense to put the most emphasis on recovery. So while FEMA was on the ground in areas affected by Hurricane Harvey and other storms, its mission didn’t end when the recovery did. That’s how Childs Building Supply in Orange, Texas, became a focal point for not just recovery, but for the mitigation of flood damages and other disaster scenarios. This spring, FEMA sent two mitigation professionals to Orange for several weeks who set up a table at Childs Building Supply. They were available for community members to speak to about FEMA programs and how to prepare for the next storm. “FEMA put the word out that they would be at the store, and people came in from all over the area to talk with them,” storeowner Brad Childs says. “We live in an area with a lot of bayous and storms, so it’s not a matter of if another storm will come through, but when.” FEMA’s Kimberly Phelon says in a video produced during the visit that the purpose of the visit was to promote building methods that mitigate flood damage while also allowing community members to interact with FEMA outside of direct recovery efforts.

“We say in mitigation, ‘Wherever there is rain, there is always potential for flooding,’” she says in the video. “So be prepared.” Childs knows all too well how flooding can affect businesses and a community. His store, which celebrates 50 years of business this year, had several feet of water in it after Hurricane Harvey passed through. Previous storms and disaster scenarios had taught him and his staff how to keep themselves and the business safe while serving the community. When electricity is down, a generator powers exterior lights to show customers the store is open. After Harvey, Childs’ staff moved their counters to the front doors of the store, allowing employees to take orders but keeping customers safe by not letting them move through the flooded interior. “As a city councilman, I’m involved in flood relief for more than just my business, and our store is operated in the same way,” Childs says. “In 2007, Hurricane Humberto blew through at 5 or 6 a.m., and we were open by 7:30. Our building was the only one in town lit up. People need these supplies, and if you leave the doors locked, you can’t help anyone. I think that might be what FEMA saw in us when they asked us to host them.” To see the video from FEMA’s visit to Childs Building Supply, visit TheRedT.com/fema-specialists.

Hurricane Harvey didn’t spare Childs Building Supply in Orange, Texas, but the business has developed procedures to counter natural disasters. To help others do the same, FEMA sent mitigation specialists to the store to discuss building methods to lessen future damage.

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

HARDWARE RETAILING | September 2018

TRUTH : THERE ARE ONLY TWO WAYS TO GROW A BUSINESS.

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Checkouts

MERCHANDISING

How Much Is That Piggy in the Window?

he team at True Value Home Center—Oakhurst in Oakhurst, California, has a motto about drawing in customers’ attention: Always have a “pig in the window.” The idea is that unusual and eye-catching items that might look out of place in a retail space, can attract customer interest to more mainstream items. While co-owner Alan Bryant, who runs the business with his brother Paul, hasn’t yet had an actual pig to put in the front window, he’s had plenty of other unusual items. “We usually stick to lawn and garden items along with outdoor living,” Bryant says. “Those tend to have the most ‘wow’ factor for a customer coming in the door.” Items Bryant has featured include a wind chime with an 8-foot chime, a full-size horse made of teak wood and a bear carved out of wood with a space for customers to sit with it for photo opportunities. While these items tend to come at higher price points than products normally found at a hardware store, the attraction is more important than a quick sale. The big-ticket items might sit in the store for months before someone decides to take it home. But they also offer opportunities for other local businesses to get in on the attraction. The bear became enough of a draw that a local hotel purchased it for their entryway, where visitors still pose for photos. “We had one gentleman who really liked a sculpture we had of a large squirrel. For months, he would come in and talk about it, saying how much he liked it, but that it would never sell,” Bryant says. “One day he just decided

he couldn’t risk anyone else taking it, so he decided he had to have it.” Bryant and his team usually find their unique items at trade shows outside of the typical hardware circuit, such as gift or lawn and garden specialty shows. The store also puts a lot of emphasis on decorations and exotic finds around the holiday season. The business will hold onto an item until it sells, usually a couple months, and then go back to the contact information they gathered during shows and decide which vendor they’d like to feature next. “We don’t have anything stocked for these items. Each is one of a kind and is not going to be here forever,” Bryant says. “That uniqueness adds to the attraction, and we use these items as marketing tools. Now we have customers coming in knowing a new item will be here soon and they want to be one of the first to see it.”

Novelty items are an important part of the business plan at True Value Home Center—Oakhurst in Oakhurst, California. Whether it is an unusually large wind chime or a full-size horse sculpture made from teak wood, these items draw crowds and interest.

HARDWARE RETAILING | September 2018

TRUTH : EQUITY MATTERS.

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Checkouts

COMMUNITY PARTNERSHIPS

Keep Them Reeling

fishing contest developed by the local newspaper proved an opportunity for a retailer to cast a wider net with fishers in the community. The Quad City Times contacted K&K True Value Hardware in Bettendorf, Iowa, to be a sponsor of its Best Fish Photo Contest this summer. Community members were invited to submit photos of themselves with the fish they caught in local rivers and lakes, and the newspaper posted the photos on Facebook and asked the community to vote for their favorite photo. “We do quite a bit with the Times, and we thought this contest was a neat idea to be a part of,” says Diane Conner, marketing manager at K&K Hardware. “We get involved with as many community organizations as we can. ” The winners from each round received a fishing pole, rod and reel and a tackle box from K&K Hardware. Conner says the business is known in town for its extensive sporting goods and fishing department in particular. “Fishing season here is year-round,” Conner says. “People even dig through the ice in the winter for ice fishing.” This was the first year the newspaper ran the contest, and Conner says if it returns next year, K&K Hardware will likely be a returning sponsor.

Five-year-old Lucy Morales won round two of the Quad City Times’ Best Fish Photo Contest. Morales received a fishing pole, rod and reel and tackle box from K&K True Value Hardware.

EVENTS

Helping Children Make Memories

One of the most popular events at Everson’s Hardware Hank is Kid’s Craft Saturday, where children can make a simple craft project, usually something Deborah Everson says she finds on Pinterest.

HARDWARE RETAILING | September 2018

et a llama, learn about beekeeping, play a round of bingo—there was something for everyone at the grand reopening weekend at Everson’s Hardware Hank in Waconia, Minnesota. Deborah Everson, marketing manager for the store, believes special events are some of the best ways to build connections with the community. And it’s important to make those connections even with the youngest members of the community. The reopening celebration in May included a scavenger hunt where children had to find items on a bingo card in every department. As a bonus, the game helped introduce parents to the new store layout as they followed their children around the store. A nearby llama farm brought in llamas for children of all ages to pet. Adult visitors won door prizes, and vendors gave painting and beekeeping demonstrations. Everson makes special events a regular part of the store calendar, many that include children. In fact, any time children come in the store, there is something for them to do, as Everson has a coloring book with crayons sitting on the paint counter awaiting the next artist. “We want our store to be a welcoming place,” she says. “We want to create memories, especially for the children. If they make those memories today, they’ll be our customers tomorrow.”

COMMUNITY PARTNERSHIPS

Checkouts

A Beaver by Any Other Name

Photo by Paul Selvaggio, the Pittsburgh Zoo The Pittsburgh Zoo and PPG Aquarium welcomed six baby beavers, and Busy Beaver customers helped name them.

atch and Alice, beavers who live at the Pittsburgh Zoo and PPG Aquarium in Pittsburgh, welcomed a litter of six babies earlier this year. Soon after their birth, the zoo reached out to home improvement retailer Busy Beaver for a partnership opportunity to name the baby beavers, which are called kits. Busy Beaver marketing coordinator Amanda Nestor says the company was excited to participate. “This partnership was the perfect fit for us. Just like Patch and Alice’s family, our family is growing, too,” she says. The company recently opened two new locations in the Pittsburgh area and opens a third location this month. With the new store, there will be 21 Busy Beaver stores in Pennsylvania, West Virginia and Ohio. Busy Beaver got right to work on a social media campaign to engage the community in naming the zoo’s beavers. Associates supplied their suggestions, and 14 possible names were posted on the Busy Beaver Facebook page for the community to vote on their favorites. The poll saw more than 1,600 votes over the course of two weeks. The beaver kits were introduced at a press conference in late July. Brennan, Bucky, Busy, Timber, Beverly and Barney are all healthy and now live in their habitat at the zoo with their parents.

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HARDWARE RETAILING | September 2018

Patent Pending

Joe Findysz, owner of Ace Hardware in Tucson, found that a set of shelves intended for saw blades was the perfect way to display his signs. MERCHANDISING

Show Me a Sign

ooking for a sign? You’ll likely find it at Ace Hardware in Tucson, Arizona. Ten years ago, owner Joe Findysz stumbled across a vendor at his wholesaler’s buying market that recreated nostalgic metal signs. Always on the lookout for something unique to carry in his six stores dotted around Tucson, he decided to stock an assortment. When product sales increased, Findysz didn’t have any trouble reading the signals. He has since increased his selection to 28 feet of signs from three different vendors, and the niche continues to be very popular. Options include nostalgic gasoline signs, signs with witty sayings and signs with comic book characters. Findysz displays them on a shelving system created for saw blades. In addition to items he orders from his vendors’ catalogs, Findysz also sells custom signage he and his staff make at the store. A few years ago, he invested in the equipment to make custom aluminum signs. “We print a lot of historical photos from the town or other photographs that are unique to this area,” he says. “We have a few that say ‘Greetings from Tucson’ that are popular.” One of the newest additions to his product mix is larger signs, such as the 3-foot Coca-Cola sign. “We sell as many as 3,000 signs a year,” he says. “We carry the full assortment of all our vendors. It’s a huge variety. We just order everything they have, and it all sells.”

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Customers Are King How It Pays to Be Customer-Centric

re your customers being served? For many independent retailers, offering superior customer service is a differentiator against big-box competitors. But in the day-to-day bustle of running a business, it can be easy to take for granted that your business continues to deliver exceptional customer service. Retailers can’t afford to simply assume their customer service is stellar. According to the American Customer Satisfaction Index (ACSI), customer satisfaction is a leading indicator of a company’s financial performance. The organization finds that American households are more likely to buy from companies they perceive to have high levels of customer satisfaction. The ACSI Retail Report 2017 highlights the importance of providing good customer service, especially in times of increased online competition. “It’s very challenging for brick-and-mortar retailers to weather the online onslaught without also providing a superior in-store customer experience,” the report says.

HARDWARE RETAILING | September 2018

Hardware Retailing surveyed nearly 1,000 customers of McGuckin Hardware to compile a case study of which aspects of customer service are most important. Learn how the home improvement center in Boulder, Colorado, approaches customer service, and hear from McGuckin employees about how they put customers first every day. Canadian retailers Ian McNaughton, owner of Gravenhurst Home Hardware, and David Dishke, president of Grand River Home Hardware, also offer insight into how they approach customer service. Learn the steps they take to ensure new hires are performing to their expectations and how they handle customer interactions gone awry. Finally, get tips on how to improve your customer service from Bruce Temkin, managing partner of the Temkin Group, a national customer experience research, consulting and training firm focused on helping business owners transform and strengthen customer experiences. Hardware Retailing conducted a customer service survey to compile all data for this article.

September 2018 | HARDWARE RETAILING

Case Study: McGuckin Hardware

McGuckin Hardware, a 60,000-square-foot home improvement center in Boulder, Colorado, stocks more than 250,000 SKUs. Its team members believe an eclectic inventory is key to boosting customer service.

Customer Service Is a Teamwide Priority According to its customers, McGuckin Hardware, a 60,000-square-foot home improvement store in Boulder, Colorado, excels at customer service. Nearly 1,000 McGuckin customers participated in an online survey and gave their opinions on the store’s customer service. More than 97 percent of the survey respondents say the business delivers good or superior customer service. How can other retailers replicate this impressive level of customer satisfaction? At McGuckin, superior customer service involves hiring the right employees, giving employees frequent constructive feedback and finding creative ways to make the in-store experience memorable for shoppers. Barry Hight, president of McGuckin, says superior customer service begins with each hire. Hight says the McGuckin team favors applicants with previous retail experience, but also looks for extroverted people who are eager to interact with customers. Most new hires

HARDWARE RETAILING | September 2018

start as cashiers, which gives them a valuable overview of how different departments function. The McGuckin team also values open communication among employees. Whether an employee excels at their work or needs to put in extra effort, they say clear, constant communication is key. “It can be hard for people to hear criticism,” marketing manager Louise Garrels says. “When you have a group of people who are so passionate about what they’re doing and dedicated to their job, receiving negative feedback can feel harsh. But our employees have learned to temper that with more feedback—positive, neutral or constructive.” Another way McGuckin ensures customers have a positive experience in the store is by entertaining customers while they shop. The team is always on the lookout for unique ways to deliver unforgettable moments in its store—whether that’s hiring live musicians to

perform Christmas carols around the holidays, or throwing a unicorn-themed party for younger customers. McGuckin also hosts in-store science experiments that pair children with students from the nearby University of Colorado.

Listening to Customers Garrels says the team aims to respond to customer comments, whether they come from online reviews or in-store comment cards. “By responding to each comment, especially online comments, we can ensure that customers receive the same level of customer service outside the store as they receive in the store,” she says. Hight says these customer comments are a direct path to improving the business and improving its level of customer service. “We see customer complaints as ways to improve,” Hight says. “We can learn about a product a customer may be disenchanted with or an employee who didn’t meet their expectations.” One store improvement was motivated by comment cards. Many customers wanted to see the store upgrade lighting to reduce energy consumption. “We went through a store remodel about a year and a half ago, and it’s really brightened up the store,” Hight says. “We knew we needed to do it, but that was really driven by customer requests.”

Analyzing the Results Nearly 1,000 McGuckin customers took a survey about the business’s customer service, providing many insights into what customers appreciate about the operation and what they value in the overall customer service experience. Top reasons customers say they choose to shop at McGuckin include the wide array of products, knowledgeable employees and friendly team members. All three of those reasons relate to customer service. To present a wide array of products, McGuckin listens to customer requests. The business began to stock a specific brand of power tools after numerous customers requested the line. Hight says the management team attends at least 10 trade shows annually, giving them an advanced look at products that can please their customers. The business also stocks sporting goods and housewares, which are categories McGuckin can build on by attending a variety of trade shows and events. To ensure McGuckin’s staff is knowledgeable, the team stays current with other businesses in its community. Recently, a local bird supply store closed its doors, and the McGuckin team saw that as a unique opportunity to bring a new skillset into its offerings. (To learn more about the birding niche, see Page 74.)

Based on McGuckin Hardware’s level of customer service, how likely are you to recommend the store to people you know?

Extremely likely . . . . . . . . . . . . . . . . . . 83.3% Very likely . . . . . . . . . . . . . . . . . . . . . . . 12.9% Moderately likely . . . . . . . . . . . . . . . . . . 3.2% Slightly likely . . . . . . . . . . . . . . . . . . . . . . 0.3% Not at all likely . . . . . . . . . . . . . . . . . . . . . 0.3%

September 2018 | HARDWARE RETAILING

Case Study: McGuckin Hardware “The owner of the bird center came to work for us, and so many of our customers are recognizing him,” Hight says. “With him on board, we’ve learned so much about birding. It’s really been a great synergy.” Effective employee training is another key component to McGuckin’s customer service success, says Jason Hight, McGuckin’s assistant store manager and Barry Hight’s son. “We have an employee who’s worked here for almost 40 years and he’s committed to educating new employees,” Jason Hight says. “Once a month, he runs all new hires through a training

McGuckin employees offer me a wealth of knowledge about home improvement projects and repairs. 90%

80.0% 80%

70%

% of Respondents

60%

50%

40%

30%

20%

16.9%

10%

3.0% 0% True

HARDWARE RETAILING | September 2018

False

I don’t know

course about the McGuckin history, and that gives them a good base to work from in their early days.” Garrels believes mentoring is also a critical part of onboarding new hires and ensuring they deliver superior service. “We’re known for the green vests that we wear, and our trainees don’t get to don a green vest until whoever is mentoring them believes they’re truly ready,” she says. To the McGuckin team, ensuring employees are knowledgeable and able to educate customers is a critical factor to achieving superior customer service. When an employee can correctly guide an employee through the steps of a project and recommend all the necessary materials to get it done, not only will the customer see your operation as a source of valuable information, they will likely also spend more. “When you have an employee who really delivers great customer service, they will guide the shopper in a way that helps them understand projects and increases your add-on sales,” Hight says. Garrels says the business’s strategy for delivering great customer service must always shift to remain potent. Millennials and Generation Z customers are steadily becoming bigger segments of McGuckin’s customer base, so the operation is changing the way the way it communicates online. “When we started our e-newsletter, we maximized content so it looked great on a computer screen. Now, we need to ensure our newsletter looks great on mobile screens,” she says. “Customer service may seem like magic, but there’s a lot of science that goes into it.” McGuckin is active on all the major social media platforms, regularly posting media-rich updates about in-store events, special sales and important community announcements. Overall, Hight says, helping funnel employees toward their own areas of interest is a small thing managers can do to ensure employees are motivated to deliver superior customer service. “If you allow your employees to find their niche and really enjoy their job and what they sell, great things happen for customer service,” he says.

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Focus: Gravenhurst Home Hardware The Customer-First Approach At Gravenhurst Home Hardware in Ontario, owner Ian McNaughton believes superior customer service is forged by building authentic relationships with customers, one interaction at a time. “We sell customer service,” he says. “Our employees have to solve problems and answer questions. Every single customer interaction is an opportunity to build future business.” When hiring new employees, McNaughton says finding applicants who view delivering superior customer service as an important and rewarding part of their job is critical. “We can teach employees about our products and how the store operates, but unless someone is personally motivated to give great customer service, it might not happen,” he says. McNaughton is also using technology to empower employees to perform to their highest standard. Each employee is equipped with a two-way radio that keeps them in constant contact with their colleagues. “With the radios, each employee has the knowledge base of the entire staff, so the customer

gets information they need through an employee who might still be learning,” he says.

Staying Flexible Recently, an employee delivered a fan to an older customer who wasn’t able to visit the store in person. McNaughton himself has repaired grills for customers who didn’t buy from his store. These instances were opportunities to exceed expectations. McNaughton also keeps his ears open to online chatter to help guide his business. “With social media, I think it’s paramount to listen to what people are saying. You have to search your store name and respond to show that you care,” he says. McNaughton implements frequent competitions to motivate his employees. In one initiative, employees can nominate one another for going above and beyond to help customers to win special prizes. “We want to celebrate good customer service. I hope the competitions will make people talk more openly about their successes and failures,” he says. “I think recognizing and celebrating our employees builds a strong team.”

At Gravenhurst Home Hardware, owner Ian McNaughton believes that delivering superior customer service relies on his team putting customers and their needs first.

HARDWARE RETAILING | September 2018

Focus: Grand River Home Hardware

In Caledonia, Ontario, Grand River Home Hardware president David Dishke believes that overall sales can help give retailers a general idea of how well they are doing with overall customer service.

The Customer-First Approach

Making Good

David Dishke, president of Grand River Home Hardware in Caledonia, Ontario, always has customer service on his mind. After opening his third location just months ago, Dishke took a hard look at his business’s customer service levels and what can be done to ensure each customer leaves totally satisfied. “To me, it comes down to the golden rule. My employees have to ask themselves how they would want to be treated if they were in a customer’s shoes,” he says. To help them view the store from a customer’s vantage point, Dishke encourages his managers to walk in the front door each day and take stock of what they see. If the entrance is cluttered, dirty or uninviting, he instructs managers to correct the problem as soon as possible. Dishke also trains staff to be flexible on sale prices. If a customer comes in looking for an item that his team knows will go on sale in a matter of days, he offers the customer the item at the soon-to-be lower price. For Dishke, it’s a down payment on a happy customer who’s likely to return. “I don’t want any customer to leave the store— they’re already here. It doesn’t make sense to gamble and hope they show up a few days later,” he says. “You can say you’re losing margin, but losing margin is better than losing a sale altogether.”

Dishke recommends retailers consider establishing a make-good fund to help remedy customer service snafus. He sets aside about $10 per day to help cover expenses that might arise from customer error, even if it’s not his store’s fault. Earlier this year, a customer bought a can of paint from his business and loaded it into the backseat of a car. Soon after, the customer returned, upset that the can had toppled over and covered the car’s leather interior in fresh paint. After investigating, Dishke determined his staff wasn’t at fault, but he still had a sticky situation on his hands. Fortunately, the make-good funds were at the ready, and Dishke paid to have the customer’s car professionally cleaned and he replaced the can of paint. “It wasn’t our fault, but someone had to take responsibility,” he says. “The bad word of mouth would’ve cost way more than just fixing the situation.” In the end, Dishke says he relies on a constant barometer to gauge his stores’ customer service: overall sales. “Your sales dictate how you’re doing with customer service. If sales are falling, something’s wrong. If your sales are strong, I’d say you’re doing your job,” he says.

HARDWARE RETAILING | September 2018

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Tips to Boost Your Customer Service Once owners demonstrate a customer-first set of behaviors, then they should encourage employees to adopt the same attitude and actions. This means celebrating employees when they act in a customercentric way and making it clear when they don’t.

Bruce Temkin, managing partner with research firm the Temkin Group, leads the company’s research, consulting and training efforts. Temkin has offered expert insight on customer service experiences in articles from a variety of publications, including Forbes and Fortune.

Hardware Retailing (HR): How can retailers instill a culture of customer service at their businesses? Bruce Temkin (BT): If business owners want a customer-centric culture, then they need to start by modeling the behavior that they’d like to see in other people. Employees need to see them spending time understanding what customers need and want and then making decisions that put the customer first.

“Even if an employee does

not know the answer to a question, they should be able to connect with other employees and resources in the store to find an answer for a customer.

”

HARDWARE RETAILING | September 2018

HR: How can independent retailers guarantee superior customer service? BT: It’s critical to understand what customers need and want. In hardware stores, customers often want help trying to complete different types of projects. It’s not good enough to point to a row or an aisle where products may be located. Employees need to ensure that customers leave the store empowered to complete the projects that drew them there in the first place. Make sure you have employees who have experience or have been trained in the key areas that your customers care about. Make sure employees understand how to deal with questions outside of their expertise. Even if an employee does not know the answer to a question, they should be able to connect with other employees and resources in the store to find an answer for a customer. HR: If a retailer knows they have poor customer service, what are some of the immediate steps they can take to improve? BT: Owners need to look at their own behaviors and ask themselves, “What am I doing that is creating an environment where employees are mistreating customers?” Then, leaders need to explain to all employees why customer experience is important to the success of the store and is therefore a critical component for the owner to be able to continue to offer good jobs for the employees. Whenever there’s a poor experience, we recommend following five steps that Temkin Group calls the CARES model. Communication to make sure the customer knows what’s happening; accountability to show you are committed to helping; responsiveness to be proactive in every aspect; empathy to demonstrate you care; and solution—make sure you do your best to fix the problem. HR: Is the customer always right? BT: The customer is not always right. That’s a misconception. But customers always deserve the benefit of the doubt and should be treated with respect even when they are wrong.

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CUSTOMER SUCCESS STORY

SPANN’S HARDWARE

RockSolid MAX™ Hardware Store Software Saves Time and Money

hese are good times for Chuck Spann and his team at Spann’s Hardware in Winfield, Alabama. Since he and his sister April took over the business six years ago, sales are up an impressive 50%, far ahead of the pace of the local economy overall. One factor behind that growth is Chuck’s own background. When he returned to the family business his father started in 1966, he brought with him over 30 years of corporate management experience that included 20 years as a CFO and 10 more in a CEO position for major healthcare organizations. Chuck knows how to run a business and while Spann’s Hardware is far smaller than just about all of the organizations where he worked before he and April took it over, the principals he used in the large corporate world have proved their worth just as well in a small business environment. But there’s also another key factor behind the store’s growth over the past six years: hard work and plenty of it! When Chuck and April took over from their dad, Spann’s was still being run by a paper-based system. “Everything revolved around the ticket book and the cash register and even the most important business decisions were being made on the basis of little more than guesswork and gut instinct,” he recalls. Not only did lack of business management software mean Chuck was flying blind on the business, it also meant he and the rest of the team were putting in incredibly long hours! “I was working seven days a week, 12-14 hours a day and even though I would take

on day off from the store each week, I would still be up at 7:00 a.m. that day and working on the business at the kitchen table until 7:00 p.m. that night,” he remembers painfully. But while Chuck recognized there was a pressing need to automate the business, other priorities also required his attention. During his first four years at the helm, Chuck reset the store, changing out all the fixtures and embarking on an ambitious remerchandising program that is still in progress.

IT WAS TIME TO AUTOMATE THE BUSINESS— ENTER ROCKSOLID MAX POS SOFTWARE It was only after all that was in place that Chuck started to focus in earnest on finding the right computer system to run the business. After doing due dilligence on several industry systems, one choice stood out clearly from the rest: RockSolid MAX™ hardware store software from ECi Software Solutions. “We looked at EPICOR and Paladin and both of them would have required a $10,000–$11,000 upfront investment just for the software license alone,” he recalls. “With RockSolid MAX, there were no upfront software costs and we were able to sign up with a pay-as-you-go rental type arrangement. From a pure dollars-and-cents point of view, switching to RockSolid MAX was not a hard decision!” But even savings on that scale—no matter how good they looked—would have been worthless if the program itself failed to meet Chuck’s needs as a manager. Fortunately, that was never a problem with RockSolid MAX.

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“I had put in a lot of computer systems during my years as a CFO and CEO in healthcare and I had a good idea of what we needed from our software,” Chuck says. RockSolid MAX not only fit the bill for Spann’s but also, he reports, implementation went remarkably smoothly.

Once Spann’s Hardware was in the hands of RockSolid MAX, life for Chuck Spann started to change dramatically and in a very good way!

Moving to some programs from a purely paper-based system can often be a challenging, labor intensive process, with a massive amount of manual data entry with which to contend. Not so, however, with RockSolid MAX. “The conversion went very well,” Chuck recalls. “We had more than 20,000 SKUs that needed to go into the system but I was able to pull purchase history from all our vendors and upload it into RockSolid MAX with no major problems or glitches. And once we had tested out the data and done some initial training, going live was easy—we pretty much just flicked a switch and there we were!”

Less than six months after going live with RockSolid MAX, life at Spann’s Hardware is so much better. Business decisions are now being made on the basis of hard data instead of gut feel and guesswork. Customers are being served better than ever before. And Chuck Spann has got his life back! Thanks to RockSolid MAX, he no longer has to spend his days off working on the business and those long, long hours he put in to balance the books or build an order are an increasingly distant memory. “RockSolid MAX has lived up to expectations and then some,” he says. “For our store and for me personally, it gives us just what we need.”

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By Dan Tratensek, dant@nrha.org

Doing It Differently TJ Comstock Focuses on Tradition and Collaboration as Chairman of the NRHA Board

riving north up U.S. Highway 93 into Eureka, Montana, it’s easy to understand why this area has been dubbed Big Sky Country. The blue, cloudless horizon stretches all the way from the Kootenai National Forest to the Canadian Rockies, framing some of the most beautiful landscapes in North America. On this same route, it’s also easy to see why Montanans have earned a reputation as a fiercely independent group. For the 50-or-so mile stretch of road between the quaint resort town of Whitefish to Eureka, you won’t pass much in the way of a Starbucks or McDonald’s. You will see plenty of deer meandering along the road’s edge, cedar-clad fishing cabins and geared-up travelers seeking rugged adventure alongside the friendly, rustic locals.

HARDWARE RETAILING | September 2018

It’s also why, when you meet TJ Comstock, owner of Northwest Hardware and the new chairman of the board for the North American Retail Hardware Association (NRHA), you’ll quickly understand why he fits so well in this little corner of the world.

Family and Community At 41, TJ is on the younger side for most home improvement retailers, yet he doesn’t possess the same loquacious penchant as many of his contemporaries. He is what you might call a man of few words. He speaks softly and directly and always looks you square in the eye when he speaks. Talking to TJ, you get the sense that he is from a different era. You get that feeling a lot around Eureka, where the hitching posts in front of the local bar were

September 2018 | HARDWARE RETAILING

only removed a couple decades ago, and small, independent businesses seem to be the rule, not the exception. TJ grew up in this idyllic, rugged landscape, spending his afternoons fishing in the cold streams or exploring dusty mountain trails in a four-wheeler. He also grew up in the family business. Both of these experiences helped form his current views on the industry, family and community. “I don’t think there is a better place to have grown up,” he says. “At least for me. I really think I was lucky in a lot of ways getting to grow up here but also getting to be involved in the family business and my parents really trusting me in that regard.” TJ’s parents, Jan and Karen, moved to Eureka in the early 1970s to buy and run the local grocery store. Eventually, that business blossomed into other ventures, including trucking, real estate and cattle. And like in most family businesses, TJ played a role in operations from an early age.

“All of us kids grew up working in the grocery store,” he recalls. “I worked in some capacity in all our businesses until I was in my early 20s.” Early on, TJ’s father saw an opportunity to expand his retail holdings when the hardware store adjacent to his grocery became available. After acquiring the small operation, TJ says the family ran it as if it were just another department within the grocery store. “My first real experience with the hardware store came when I was 18 and my dad asked me if I could take over management of the business,” he says. “We were having some issues with the operation, and Dad wanted to see what I could do with it.” As soon as TJ was able to get the hardware side back on firmer footing, he took on a new challenge in the family business: becoming operations manager for the entire grocery, hardware, trucking and cattle interests. “Then, as every good story begins, I met a woman,” he jokes.

TJ Comstock’s parents owned and operated a grocery store in Eureka, Montana, before buying the hardware store next door. TJ served as manager of the hardware business as a teenager, which was his first introduction to hardware.

HARDWARE RETAILING | September 2018

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TJ was surprised to discover that he actually enjoyed the classes. “I was terrible in high school, but I really loved what I was learning in college.” This newfound love for education prompted TJ to begin taking even more classes in finance and economics. He completed his degree in just over three years and picked up a new set of skills that he was eager to apply to the real world. Upon graduation, this meant taking a job in finance for a large corporation. However, sitting behind a desk and punching a clock wasn’t suited for someone who grew up under those big skies of Eureka. “I clearly remember sitting at my desk and just watching the clock, waiting for lunch to come so I could get up and do something different. I had never been that guy. But there I was,” he says. He watched the clock for nine months. That was enough. TJ’s independent spirit couldn’t be confined in an office, and he made the decision to take his fate into his own hands and buy his own store.

Back to Hardware

Icons of typical Montana living are seen throughout TJ’s home improvement businesses, such as wildlife and outdoor living necessities.

Continuing Education Just when he began taking on more responsibilities within the family business, TJ met a local woman named Kami, who he would eventually marry. For someone not prone to any hints of sentimentality, TJ clearly softens a bit when he gets to this subject and reflects on his decision to leave the family business to be closer to Kami, who was attending college in Missoula. “I knew I wanted to get out of town so I could spend more time with her,” he says. “So, I told my parents I wanted to go to college. The original plan was to go for a year or two, take some classes, but really I just wanted to be by Kami.” With this goal in mind, the young TJ barreled into academia and managed to convince the dean to let him “just take a couple classes” without any of the more traditional prerequisite testing or admitting procedures.

HARDWARE RETAILING | September 2018

Knowing that the corporate world was not for him, TJ found a local hardware store north of Missoula that was up for sale. He reached out to the supplier to help put together a deal. After negotiating for several months, the deal fell through. “I learned a lot during the negotiations, but it was disappointing that it didn’t work out,” he says. Fortunately, through the contacts he had made at the supplier, he found another store in Billings for sale. After he expressed an interest in this opportunity, things moved quickly. “We ran the numbers in the summer, and by December, I was moving to Billings,” he says. “I took ownership on Feb. 1, 2006.” Fiercely independent and armed with a formal financial education and a family history in retail, TJ now found himself as a first-time storeowner of a retail hardware operation. There was just one problem. He didn’t really know much about hardware. “Honestly, the only time that I had really spent in a hardware store was for my own projects and the very short time I spent as a manager with my family’s operation. The first thing I had to work on was my product knowledge,” he says. Fortunately for TJ, he had inherited a strong crew from the past owner of the business, including Vern Brost, a longtime assistant manager with the business who had a depth of knowledge across the hardware spectrum. “Vern knew more about hardware than I will ever know,” TJ says. “I also learned a lot about

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customer service from him. He was the best customer service representative I have ever seen, in any industry.” While he was learning product knowledge under Brost, TJ was also fighting to earn respect from the rest of the team, most of whom were nearly twice his age. “Here I was, 27, 28 years old, and I am stepping in with these guys who are in their 50s and 60s and telling them what I think they should be doing,” he says. “They were all really great with me though. They were very patient, but Vern was the most patient and helped me learn those other sides of running an operation.”

An Eye Toward Growth With continued support from his seasoned team, TJ managed to squeeze some stability, then growth, out of the Billings location. Just over a year later, however, he was presented with another opportunity to grow. “The following November, my dad called and said he was really hoping to step away from the business and get out of retail altogether,” he says. “I told him I wanted to buy the hardware store, and we put a deal together.”

“I have a great team of

people who are part of this operation, and they really are the ones who make things happen on a daily basis.

”

—TJ Comstock, Northwest Hardware While it might seem overly ambitious to buy a second store just when you are starting to get your arms around running your first, being timid wasn’t necessarily wired into TJ’s DNA. Also, it was never TJ’s vision that he would actually manage multiple stores. In fact, his plan was more geared around running a hardware operation fueled by growth. Find an opportunity, find the right people, find the next opportunity, grow the operation. This was TJ’s strategy. “I never went into this thinking I wanted to have a store that I would go to work in every day,” he says.

Eureka Hardware started as an extension of the Comstock family’s grocery business, and it has remained that way since TJ bought the store from his father several years ago. Jodi McCully, TJ’s sister (left), manages daily operations for the business.

HARDWARE RETAILING | September 2018

At Eureka Hardware, customers are able to browse through much more than hardware. The store carries a wide selection of products, like a kitchen and housewares section and decorative lawn and garden accessories.

“My goal was to have as many stores as possible and run the business. Obviously, you have to know how to run the stores and be able to run the stores, but that is not where I see my contribution to this business in the long term.” Based on this strategy, TJ and Kami opened another store in Roundup, Montana, a year after buying the family store in Eureka. This operation was their first ground-up build and proved to be another learning experience for the budding entrepreneurs. “We acted as our own general contractors on that project, and we learned a ton doing it,” he says. “It was another learning process and a horribly painful one. I was living up there for weeks at a time, and we ended up doing way too much of the work ourselves. But we got the store opened, and it is a good store in a good community.” Over the next several years, TJ focused on dialing in operations at these three stores. Then in 2014, an opportunity to open a second location in Billings presented itself. The existing Billings store had a thriving small engine repair business. Continuing to grow this segment of the operation would require more space. “We found a building that was once occupied by a furniture store that offered us the space and allowed us to run a store and expand the small engine repair.”

With this store expansion complete, a storeowner in Havre, Montana, named Murray Barkus reached out to TJ to see if he had any interest in buying his operation. “It wasn’t the best timing for us, but we put together an offer and we came to terms with Murray,” TJ says. “He is a great guy and has become a good friend since then.” After this spate of opportunistic growth, TJ says he is now focused on making sure the operation is running well and positioning the business for further growth. He admits that a major part of this strategy is having the right personnel in place, and he is quick to credit his team, which includes his sister Jodi, who runs the Eureka store, for all of the support they give the operation. “I have a great team of people who are part of this operation, and they really are the ones who make things happen on a daily basis,” he says. “If I couldn’t count on them, we wouldn’t be able to take this operation in the direction I know we can take it.”

A Place in the Industry While there is a distinctly independent sensibility that pervades the Montana towns where TJ grew up, there is also a strong sense of community. These are the kinds of towns where, if your car breaks down, you might not be able to call AAA, but a neighbor is sure to come along to help you out. September 2018 | HARDWARE RETAILING

“I did some digging and

discovered NRHA was an industry organization that I really didn’t even know existed. Once I knew more about it, I saw it as an opportunity to help influence the industry and also learn from others.

”

—TJ Comstock, Northwest Hardware

Billings Hardware was TJ’s first foray into hardware as an adult. He purchased the business in 2006, and as a result of his investment in the operation, which included expanding the store, he earned the NRHA Young Retailer of the Year award in 2010.

This willingness to help out a neighbor, support another small business or lend a hand to someone in need is also part of TJ’s fabric and is ultimately what led him to get involved with his industry’s association. TJ was first introduced to NRHA in 2010, when he was nominated for and won the association’s Young Retailer of the Year Award. He admits that receiving the award, having to get up on stage and ultimately make a speech pushed the boundaries of his normally introverted comfort zone. Despite pushing these boundaries, however, winning the award exposed him to an entirely new community of peers. “Beyond reading Hardware Retailing, winning the award was my first real exposure to the association,” he says. “I didn’t really understand what the association was or what it did at the time.”

HARDWARE RETAILING | September 2018

About a year after winning the award, TJ was approached by former board chairman Tom Ruedisueli, who asked if he would consider joining the NRHA board of directors. “I did some digging and discovered NRHA was an industry organization that I really didn’t even know existed. Once I knew more about it, I saw it as an opportunity to help influence the industry and also learn from others,” TJ says. During his time on the board, TJ has sought to learn even more about how other successful independents run their operations. He has participated in NRHA-sponsored events such as the State of Independents Conference, Retailers’ Choice Awards and CEO Roundtable. He has also utilized NRHA programs like the Retail Management Certification Program to help further educate his staff to better lead the operation. “As independents, we have got to do more things to help each other,” he says. “It’s not that I know everything, but I’ve got experiences running my business that might be of help to another operation and vice versa. I am frankly tired of seeing independent business fall behind or get kicked by the big boxes. We are all in this together and need to do whatever we can to help each other out.” It’s this kind of attitude that has earned TJ the respect of fellow board members who share his vision of an independent segment of the industry made stronger through cooperation with one another. “Getting to know TJ over the last decade has truly been an adventure,” says Adam Busscher, owner of Picton Home Hardware and a past NRHA board chairman. “He is not only an exceptional business leader, but he has also become a great friend.” NRHA immediate past chairman Megan Menzer feels TJ’s insights and enthusiasm will be an asset to the association.

“Serving on the board with TJ for seven years and being able to really get to know him and what he can provide to NRHA, I’m excited about what kind of leadership he will bring,” Menzer says. “He has incredible business acumen and the ability to relate to a wide variety of people in the industry, which makes him an amazing asset. He can also grill a mean elk steak!” NRHA president and CEO Bob Cutter agrees with Busscher and Menzer. “TJ is a no-nonsense kind of guy,” Cutter says. “If he sees something that will help you improve your business, he will tell you about it. He will do it respectfully, but you can be sure he will tell you because he really wants to help the industry. He’s one of those guys you want in a room because you know you will get strong, honest input from him.” It is this same kind of honest input that TJ hopes will not only position his business for further growth and success, but that is also sorely needed if independents are going to be competitive. “Since I’ve been engaged with NRHA, I have visited a lot of operations,” he says. “It’s amazing how any little bit of excitement you can give to the customers resonates. Successful retailers are doing things differently and providing that excitement. I want to help more retailers do that.”

As chairman of the NRHA board, TJ will be the retailer face and voice of the association, connecting with channel partners throughout the industry.

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Helping independent retailers differentiate their operations and connect with their communities will be part of TJ’s focus as chairman of the NRHA board. He understands how retailers can take their businesses into the future and compete in a diversifying retail environment.

September 2018 | HARDWARE RETAILING

By Renee Changnon, rchangnon@nrha.org

Bird Is the Word Gather Your Own Flock in This Niche

orothy Martin’s backyard is a songbird’s paradise. If a cardinal or blue jay is thirsty in the winter, it can perch on a heated birdbath and dip its beak in. And no feathered visitor ever needs to leave the yard hungry, as Martin has a whole village of feeders full of the birds’ favorite meals. As the head of the lawn and garden department at Rocking R Hardware in Harrisonburg, Virginia, Martin is a resource her customers can turn to. She has been a bird enthusiast for more than 30 years. No matter where you are in the country or what your customer demographics may be, you likely have customers who enjoy bird-related activities, too.

HARDWARE RETAILING | September 2018

Whether customers are casual about their interest or consider themselves serious birders, the niche can be successful in nearly any market. In this article, Hardware Retailing will explore the products, knowledge and relationships you can build to make the birding niche a successful part of your business. Success is achieved through a broad mix of supplies, including feed, birdhouses and birdbaths; knowledgeable employees; and fostering connections with birding organizations, such as your local chapter of the National Audubon Society. Read how Rocking R Hardware, Ace Hardware of Toco Hills and Plain Hardware have each taken flight in the birding niche in their communities.

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Putting the Call Out Whether you already have a designated area for birding products in your store, finding the right products and displaying them in a memorable way can help spread the word about the department to other birding enthusiasts. In the six years since Tom Pate became owner of Ace Hardware of Toco Hills in Atlanta, he has seen the birding niche become one of the best performing departments in his store, based on sheer volume of sales and high margins. “I’ve expanded the department since I took ownership of the store as sales were continuing to increase,” Pate says. “We’ve tried to create a bird-watching haven in our bird aisle. Birdhouses and feeders hang in the aisle, and we have a sound machine that plays bird songs in the background, adding to the ambiance.”

At Rocking R Hardware, the business now is home to two 30-foot sections of bird products, including feeders, houses and food.

The store sells a wide variety of bird products, but the most profitable and important to consider is stocking a wide variety of bird food, Pate says. “Birding products, especially bird food, are very easy to sell,” Pate says. “You can get started without needing a deep knowledge base of the hobby. Plus, birding gets customers in every month, if not every few weeks, to replenish bird food.” At Rocking R Hardware, the business now is home to two 30-foot sections of bird products, including feeders, houses and food, Martin says. Some of the most innovative products in the category that Martin sells include bird feeders that detect the weight of larger animals, like squirrels attempting to eat from the feeder, as well as heated birdbaths for cold winter months. “More customers are interested in buying heated birdbaths,” Martin says. “These birdbaths keep birds hydrated in the winter, which is very important, because water is much harder to come by in extremely cold climates.” In Plain, Washington, home of Plain Hardware, there are many homeowners and gardeners who enjoy creating bird-friendly habitats, says Rob Whitten, owner of the store.

Customers at Rocking R Hardware in Harrisonburg, Virginia, are easily drawn to the birding department. In addition to utilizing large signage and stack outs for bird seed and other related products, it even has a musical track with bird songs playing in the background.

HARDWARE RETAILING | September 2018

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“We offer bird-feeders and food,” Whitten says. “We also carry plants that attract birds. Landscaping with this in mind creates an environment conducive to birds.” And although birding has a reputation as a pastime mostly popular among older generations, Pate says his store serves a wide customer demographic.

Education Leads to Sales Many customers want to be specific about the birds they attract. Martin suggests doing some research on what birds customers might be looking for and the food they prefer.

“There are so many

different types of birds to look for, and it’s fun to see what you can attract based on the food you put in your feeder.

”

—Tom Pate, Ace Hardware of Toco Hills

HARDWARE RETAILING | September 2018

“I have been bird-watching for many years, and I use many of the products we sell at my own home, so it makes it easier to share my knowledge and experiences with our customers when they’re trying to find the right feeder or food to attract specific birds,” Martin says. “It’s very important to research and look up the regional birds in your area.” For example, Rocking R Hardware sells a book that categorizes the birds of the state of Virginia by color. If Martin isn’t sure what type of bird a customer is trying to describe, she can look for a specific color and help them identify the type of bird, what it eats and what habitat it prefers. Pate says having an interest in the hobby and trying products at home has established himself and his employees as helpful resources for customers. “There are so many different types of birds to look for, and it’s fun to see what you can attract based on the food you put in your feeder,” Pate says. “At home, I have birdhouses, birdfeeders and a birdbath set up around the yard. If you understand the hobby and can share what has worked for you, your customers will be able to trust your advice when shopping.” Continued on Page 82

Left: Plain Hardware carries traditional birding items, along with themed gift items, like this puzzle of state birds and flowers in Washington. Right: Dorothy Martin, head of the lawn and garden department at Rocking R Hardware and an avid birder, is a resource for her customers.

September 2018 | HARDWARE RETAILING

4 Ways to Create and Establish a Backyard Bird Paradise

Eastern bluebird perched on the Eastern redbud tree. Photo by Glenda Simmons

The birding niche is one that attracts consumers from a variety of backgrounds. To best help birders create their own outdoor paradise for wild birds, there are a variety of ways homeowners can encourage more birds to fly by for a visit. Hardware Retailing spoke with John Rowden, director of community conservation for the National Audubon Society, to gain insights on keeping winged visitors happy and healthy. Review these four ways a birder can make their yards bird-friendly, according to the National Audubon Society. 1. Incorporate a variety of native plants. Native plants are one of the first things a consumer should consider when creating an outdoor oasis for birds. According to Rowden, native plants provide a variety of bird food throughout the year for nesting, migrating and wintering birds. Retailers can help their customers by suggesting the native plants to add to the yard. The plants and trees a customer adds can offer plenty of food for birds, including insects, fruit, nuts and seeds and nectar. To learn about specific native plants in your area, the National Audubon Society has a native plant database at audubon.org/native-plants that provides all the information you or your customer needs. 2. Create a bird habitat. The at-home bird-watcher is creating a habitat to provide food, shelter and nesting sites all year. Homeowners should map out a plan for where certain plants should be and consider the traits of the space. Is it sunny, shady or both? Is it dry or wet? What kind of soil is there? Rowden recommends having a variety of layers of plants, from canopy trees providing nuts,

HARDWARE RETAILING | September 2018

nest cavities and roosting spots to shrubs and small trees that provide fruit and nesting sites for songbirds. Decaying leaves and other items that would be composted are also something homeowners should provide, as they supply birds with food. Consider setting up birdbaths and including a fountain feature as well, as the sound of running water may bring them flocking. 3. Prepare and plant in the garden. Before a homeowner adds native plants to the yard, they’ll want to be sure to remove turf grass or invasive plants. Native plants don’t respond as well to fertilizer. However, enriching the soil with organic compost is a good idea. Watering newly planted native plants is something that will help establish them as they mature. 4. Care for and maintain a bird-friendly space. To keep the yard a safe space for birds, homeowners should clear non-native and invasive weeds. They should also avoid raking too much away, as leaves and debris serve as natural mulch, which creates a habitat for insects, which birds eat. Avoid pesticides, the National Audubon Society says, as “a bird-friendly garden is also a bugfriendly garden.” Composting is another way you can help out the birds. It improves soil health and reduces waste. Compost byproducts redistribute nutrients back into the soil. The benefits of soil include regulating pH balance, improving the soil texture and encouraging microbes. Healthier soil creates healthier plants and eliminates the need for fertilizer. Composting also promotes the growth of insects and worms, which really helps the birds. For more about the benefits of composting, visit TheRedT.com/composting-faq.

Continued from Page 78

Another resource you can utilize to educate yourself is the National Audubon Society. The organization protects birds and the outdoor spaces they rely on now and in the future, says John Rowden, the National Audubon Society’s director of community conservation. The nonprofit conservation organization has state programs, nature centers, local chapters and can be a great resource for partnerships. “Retailers and independent stores should reach out to their local Audubon chapter or center for information on the local birds to ensure their staff is educated on popular bird species in the area,” Rowden says. “Business owners can also ask if an Audubon member would be willing to come in and speak about Audubon’s ‘Plants for Birds’ program to educate employees or customers on how they can create a bird-friendly habitat at home.” Rowden also suggests retailers focus on selling native plants and provide a combination of both bird-specific products and lawn and garden products. In addition to offering native plants, he suggests offering bird seeds that are nutritionally complete without added fatty ingredients.

To grow an audience of repeat birding shoppers, display a variety of bird foods, houses and feeders for visual impact.

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“We have had an event

with live owls as well as birds of prey, like eagles and hawks. Those events draw 100 people or more, spreading the word about our business and helping our customers associate us with the niche.

”

—Dorothy Martin, Rocking R Hardware Bringing Bird Lovers Together To help reinforce your reputation as a place with a strong birding niche, you should also consider hosting events for customers who are bird enthusiasts. Rocking R Hardware has hosted events to draw bird lovers into the store. The store’s most popular events included partnering with a local wildlife center to show living wild birds, Martin says.

“We have had an event with live owls as well as birds of prey, like eagles and hawks,” she says. “Those events draw 100 people or more, spreading the word about our business and helping our customers associate us with the niche. We’ve done seminars on other wild birds that haven’t been as popular, but I think in our case, having an actual bird on hand is what gets people excited and more likely to attend.” Plain Hardware also hosts events to help build connections within its community, says Whitten. “In addition to offering the products and materials a customer will need to attract birds, we encourage our customers to learn through educational events by providing access to local experts and enthusiasts,” Whitten says. Recently, the store partnered with a biologist, naturalist and educator from the area, Susan Ballinger, to take a group on a day trip to learn about birds and how to identify them int he field. For the bird-watching outing, Ballinger brought several items to share with attendees that you might consider if you host a similar event. Ballinger brought special shirts that protect people from mosquitoes, as well as extra binoculars and books to help attendees identify types of birds they might see.

The attendees started at the store and visited a few popular riverside bird-watching spots. As an expert birder, Ballinger was able to offer event attendees insight on how to be a more knowledgeable, serious hobbyist. To learn more about the bird-watching event that was hosted by Plain Hardware and led by Susan Ballinger, visit TheRedT.com/ballinger-birds. In the article, Ballinger shares advice from the perspective of a serious birder and discusses what items a store should carry if they want to attract bird-enthusiasts like herself. “Aside from making the yard wildlife- and bird-friendly, we encourage our customers to learn something new through our educational events,” Whitten says. “We try to help make connections for our customers.” According to Whitten, his focus within the birding niche is to offer useful knowledge and education, the products and materials a customer needs, and access to local enthusiasts and experts through events. “We are passionate about connecting people,” Whitten says. “Through our efforts, we can bring groups of people together who have similar interests. I think our customers appreciate that and return to us with their stories.”

Plain Hardware offers many unique bird-themed items, like this decorative birdseed container.

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Plain Hardware sells cards from a local artist, Heather Murphy, who does field drawings and watercolors from her time spent birding. The cards provide detailed visuals of a variety of bird species, as well as educational notes. Learn more about her artwork at wildtales.com.

September 2018 | HARDWARE RETAILING

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By Renee Changnon, rchangnon@nrha.org

Hardware Heritage Working in the Family Business Is a Rite of Passage 88

HARDWARE RETAILING | September 2018

or the Dyson family, Dyson Building Center in Great Mills, Maryland, is more than a place of work—it’s a home full of memories. The operation began in the early 1900s when Sammy Dyson opened Dyson Sawmill. Sammy’s son LeRoy worked alongside him in the sawmill throughout the 1940s. In 1954, LeRoy married Marie Meise and they decided to add a small retail hardware and lumber store to the operation.

The couple laid the foundation for the future while raising their eight children. All eight of LeRoy and Marie’s children and their sixteen grandchildren have worked in the operation. LeRoy died in 1982, but his family keeps his legacy alive by expanding on and growing his retail operation. The family members invested in day-to-day operations of the company are focused on keeping the business new while embracing the past. And as the fifth-generation is starting to get involved part time, the future is still rooted in family.

September 2018 | HARDWARE RETAILING

Learning the Retail Business Dyson’s Mill was considered the longest continuously operating sawmills in Great Mills, a town named in honor of the many mills that once occupied it, says Neal Dyson, a fourth-generation family member in the business. In the 1940s, the Dyson family expanded the mill. What was once a traveling operation came to rest on the site Dyson Building Center occupies today. When LeRoy and Marie opened the hardware store in 1954, it was about 1,000 square feet, but as business grew, the family expanded the store. As they shifted to focus on retail, they gradually phased out the sawmill business, and by the 1970s, the mill closed, says Virginia “Vi” Dyson Guzman, third-generation owner.

“As I walk through the store today, it’s like I’m walking back in time to when I was eight years old in my grandparents’ hardware store. —Neal Dyson, Dyson Building Center

”

“Dad wasn’t able to run the store, manage the sawmill and do fillings,” Vi says. “It just became too much, and that’s why he decided to close it to focus on hardware and building materials.” Two of LeRoy and Marie’s children knew they wanted to make a career in the family business. Vi joined the family business after graduating high school. She began helping her mother in the office and spent time working alongside her father at the counter. J.C. Dyson, the fourth child in line, started helping his father in his early teens, learning the business from the ground up. He is now the president of the company. In the late 1970s, the store underwent its first expansion, going from 1,000 square feet to 5,000 square feet. In 1987, the business incorporated and another store renovation brought it to 12,000 square feet. The store took on the trade name of Dyson Building Center to show the wide array of products available. At that time, the company computerized operations. All of LeRoy and Marie’s 16 grandchildren have had some level of experience working or spending time in the hardware store, with many memories wrapped up in the hard work and fun experienced in the building that grew alongside the growing family. “As I walk through the store today, it’s like I’m walking back in time to when I was eight years old in my grandparents’ hardware store,” Neal says. “Now I’m almost 40 years old. Spending so much time here with my extended family and learning about hard work and the importance of family are lessons that have helped me become the man I am today.”

One Big, Happy Family

Over the years, Dyson Building Center has grown from 1,000 square feet to its current size of 12,000 square feet.

HARDWARE RETAILING | September 2018

Customers at Dyson Building Center are either waited on by a descendant of LeRoy and Marie or one of the many loyal, long-term employees. Dyson family members comprise about a quarter of the business’s 20 employees, but the rest are practically family. “There are people who have worked here for 20 or 30 years, so they’ve seen the kids in the family grow up,” Neal says. “I consider them my aunts and uncles. We are all one big family, attending every wedding and birthday. The customers we serve are an extension of our family as well.” To this day, many regular customers come to the store on a near daily basis, where they’ll grab a complimentary cup of coffee and talk to their friends about the weather and the latest news in the community. “I like to compare Dyson Building Center to the bar in the show ‘Cheers,’” Neal says. “People come here, and it’s true, everybody knows your name.”

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The team of employees at Dyson Building Center is a combination of Dyson relatives and hard-working, loyal employees, some of whom have been a part of the business for 30 years.

While most of the memories working at the business bring up happy times, the third- and fourth-generation family members all can look back and laugh about gathering and collecting thousands of bales of straw, says Sandy Dyson, office manager for the business and J.C.’s wife. “Our children spent a lot of time at the store growing up because we all worked here,” Sandy says. “If something around the store needed to be done, they came and helped. One thing everyone in the family has done at least once is collect straw bales from the farm fields in the summer. Even people not officially employed here have helped get the job done.” According to Sandy, farmers in the area grow wheat, and once it gets to a certain point, the combine cuts the top of wheat off and the byproduct of the wheat is straw. Another tractor comes along to bale the loose straw. Because moisture isn’t good for the bales, the straw needs to be very dry before it is baled. Family members and employees will go through the field with the farmer and gather the straw bales to throw onto the bed of the truck. Each year, they collect over 1,000 bales of straw. They sell it mostly for covering lawns after they have been seeded.

HARDWARE RETAILING | September 2018

“It isn’t necessarily a fun task,” Sandy says. “It is always the hottest days of the year when it is time to bale it and load it on the trucks. In many ways, though, it’s a rite of passage. As a Dyson, we like to joke that you were ‘voluntold’ for the task.” With the third- and fourth-generation family members working together closely in the business, Vi says the retail operation continues to evolve. “The hardest thing as you age is to face changes because it’s easier to stick with what you know,” Vi says. “We’re lucky because we have family members like Melanie Dyson, who is in her 20s, and then those like myself in my early 60s, working together. We do a great job bringing all our ideas to the table.”

SpongeBob and Solar Panels The team at Dyson Building Center is always looking for ways to distinguish the business from the competition. The store has traditional hardware departments, with paint, tools, fasteners and a lumberyard, yet their offerings have expanded to include items like marine supplies, workwear, toys, bird feeders and even bags of sawdust. Dyson Building Center is located on a peninsula of southern Maryland and a river bisects the county, with 400 miles of shoreline.

“We’re very close to Washington, D.C., about an hour drive away, but because of the water, it’s remained a rural community with a small-town feel,” Neal says. “Our customers range from government contractors and Amish neighbors to weekend visitors, like journalist Ted Koppel. We have such a cool, unique customer base.” To attract customers, Melanie says they are always open to trying new initiatives. “This year, we bought an ad that ran in the movie theater during the free summertime movies for kids,” Melanie says. “That ad is 60 feet wide in all theaters at every showing, and we’ve definitely noticed an increase in traffic.” One of the many things customers associate with Dyson Building Center is a giant figure of the cartoon character, SpongeBob SquarePants. In many ways, it has become a landmark in the county, Melanie says. “My dad wanted to build something on the hill by the store one year during Halloween. My sister and I watched ‘SpongeBob SquarePants’ with him all the time, so he decided to build SpongeBob. He built him out of straw, and it was so popular he made a permanent statue in 1999,” Melanie says. “A few years ago, we had to take SpongeBob down to renovate him. We got so many calls from people

worried we were removing him. People come and take pictures next to him, and we have fun with it, even dressing him up for the holidays.” In 2015, the family invested in solar panels to produce energy for the store. Because no other businesses in the community had installed solar panels, the family did a lot of research to determine if solar energy was the right move for their store, Neal says. “We got our roof repaired and in the process, added solar panels, keeping in mind our future endeavors of installing enough to add lighting in the lumberyard and parking lot,” Neal says. “We added 273 solar panels. On sunny days, we even overproduce the energy we need.” Most recently, Vi’s 15-year-old granddaughter has stepped into the operation part time, and according to Melanie, the younger kids who are the fifth generation enjoy being in the store, just as she and Neal did when they were younger. At the end of the day, the family credits both their loyal and new customers for their success, Sandy says. “Our customers are loyal and supportive,” Sandy says. “When new customers come and check us out, most of them become regulars because they like the atmosphere and service.”

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Marketing: Social Media

NO By Todd Taber, ttaber@nrha.org

Find Your Fit

Do you have a Facebook account?

Maximize Your Social Media Reach at Every Level

atalia Dittmer urges retailers not to forget the social aspect of social media. In her role as marketing director for TAL Holdings, an organization that owns eight lumberyards and hardware stores across Oregon and Washington, Dittmer specializes in social media marketing. In all she does, she always aims to tell the business’s story authentically and effectively to online audiences near and far. “Most retailers are selling the same products,” she says. “Retailers need to ask themselves what they can do to differentiate. They need to tell customers why they should buy those products from their business and not a competitor.” With 2 billion users and approximately 70 million business accounts, Facebook is a critical small business marketing tool, Dittmer says. All retailers should consider their Facebook skill level and analyze how they can best use the platform to reach customers. She breaks down three levels of Facebook users and offers tips to help retailers succeed at every stage. Take a moment to find your own social media fit using the flowchart to the right. Answer the questions and see where you land. No matter your current social media skill level, Dittmer emphasizes that all retailers can sharpen their social media prowess and discover new ways to connect with customers and the community.

HARDWARE RETAILING | September 2018

YES

Do you post 3 or more times a week?

Do you review your Facebook analytics?

YES

NO BEGINNING USERS Congratulations, you have the power of social media at your fingertips. Dittmer will explain the ways you can establish a solid foundation on the world’s largest social media platform.

Do you often respond to customer queries online?

YES

INTERMEDIATE USERS

YES

Do you have a content calendar?

You’re doing great work posting unique, engaging content for your audience. Learn the steps you can take to grow your followers and find effective ways to promote in-store events.

NO ADVANCED USERS Have you ever made a paid Facebook ad?

You’ve mastered the basics of Facebook and now you’re ready to refine your reach. Dittmer breaks down the ways retailers can harness their employees’ creativity and talent to excel.

YES September 2018 | HARDWARE RETAILING

Beginning Social Media User Dittmer describes beginning Facebook users as people who have a basic knowledge of Facebook’s potential, log on infrequently and usually only post information on products. She advises you to commit to posting regularly as a way to tell your authentic story online in order to connect with customers in a meaningful, organic way. “Ask yourself what’s special about your store,” Dittmer says. “What makes you stand out? Focus on those aspects to help guide what you’re posting as a beginning user.” Dittmer says she often sees beginning Facebook users posting product information almost exclusively. She warns against relying too heavily on product promotions for Facebook content. “It’s a beginner’s mentality to think that one post a week featuring a photo of a product or an endcap is all people want to see,” she says. “You have to find a balance between blending your products and your people into your content.” In her role, Dittmer is constantly researching how independent hardware stores are using social media. She says she often finds hardware and lumberyard social media accounts that haven’t posted for weeks—or even years. In Dittmer’s opinion, that’s a missed opportunity to dig deep into your community and position your business as a valuable community resource. “Beginning Facebook users have to start somewhere. Even if you only post once a week, stop relying so much on products and start focusing on your team. The big boxes can take a better photo of the same products, but what they don’t have are employees who have worked at the same store for 30 years and truly know their customers,” she says.

“Thinking about your

story, your employees and what you love about your community can help you create a plan for how to use Facebook to promote your business to the public.

”

—Natalia Dittmer, TAL Holdings 96

HARDWARE RETAILING | September 2018

Dittmer recommends thinking of unique ways to highlight employees on Facebook. One option is to post updates on employees’ work anniversaries. Ask their teammates for a few words about working with the highlighted employee, snap their photo and then you have all you need to create a unique post that breaks out of the rut of posting only product information. Dittmer says highlighting work anniversaries is a surefire way to add a personal touch to your Facebook posts. It’s also a chance to reaffirm your operation’s expertise and knowledgeable staff by reminding your Facebook followers that you have many long-term employees. It’s important to remember that any retailer with a smartphone has a high-powered video recording and editing device in their hands. In just a few minutes, you can capture all the audio, video and text notes you need to build a Facebook post that’s rich in content. Above all, Dittmer stresses that users who are thinking of taking the plunge into posting regular Facebook updates and marketing their business to their community at large should know their business’s unique story and understand the advantage their employees give them. “Thinking about your story, your employees and what you love about your community can help you create a plan for how to use Facebook to promote your business to the public,” she says. “If a retailer thinks about their company and what makes them proud to be a part of it, that’s a great start for a beginning user.”

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Find community events you support and highlight those.

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Start using your smartphone to capture video of your employees and store.

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Intermediate Social Media User If you have established a social media strategy and are exploring analytics and editing tools to enrich your online presence, Dittmer says you’re an intermediate user. You should begin exploring analytics and editing tools to enrich their online content. “At this level, it’s about quality, not quantity, of posts,” she says. “Intermediate users begin to understand that it’s not about posting at specific times on a set schedule; it’s about posting quality content.” To post this rich content, Dittmer recommends exploring various professional tools to help turn smartphone-captured photos and videos into eye-catching videos ready to be posted at a moment’s notice. “I use an online video tool called Animoto because it allows even a novice user to make a high-quality video,” she says. The tool includes templates and music to help add extra flair to your videos. Dittmer says she was surprised by how easy it was for her to transform a few snapshots on her phone into a

video she felt proud to post, and that resulted in a flurry of customer engagement. Another tactic retailers at this skill level should utilize is reviewing their Facebook analytics. The social media platform makes it easy to quickly review the number of likes, comments and shares individual posts garner. Over time, Dittmer says, you’ll start to notice when your followers are most active and what kind of content resonates with them and encourages comments, likes and shares. Above all, Dittmer says you should begin creating an event page for every in-store event they host. You can create events directly on the website, but Facebook has an app that promotes events to users within a specific radius. Dittmer says that by creating an event page, people who use Facebook Local can find your next Pinewood Derby or Ladies’ Night even if they don’t follow your business page. Though larger businesses might have a team of people who post to Facebook and other social media platforms, Dittmer says that at the

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intermediate skill level, usually just one person handles posting content. However, it’s important to collaborate with your team to get an inside scoop on fun, interesting things that happen within a store. Dittmer started a policy where any employee can text her photos of in-store events and employees hard at work. All she asks is for a quick prompt on who’s in the photo, what’s happening and where it took place. After that, she takes care of the rest and posts the content to Facebook. It’s one easy-to-follow strategy to get unique content from a network of employees. Along with using professional tools to help craft rich content, Dittmer says you should interact with customers as often as possible. Whether that’s responding to questions, negative reviews or fun comments, acknowledging followers is critical. “As a business owner, you need to be responsive. If your Facebook page is growing and people are leaving comments, and you don’t respond, that’s a big problem. Imagine someone coming into your store, asking a question, and not getting any response from an employee,” Dittmer says.

She says that you should begin creating an overarching schedule that includes key events for your business and community. This will allow you to plan well in advance of how you’ll cover and naturally incorporate your business into some of your community’s biggest events.

The Next Steps •

Check post analytics to gauge what content resonates with followers.

•

Establish a budget to promote posts and make paid advertisements.

•

Incorporate social media into all your ongoing marketing plans.

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Advanced Social Media User Advanced users are ready to fully integrate Facebook into their business’s marketing plans and establish a budget for promoting key posts throughout the year. The most advanced Facebook users can also use their rich online presence as a valuable recruiting tool, Dittmer says. “If someone is researching our company, I want them to visit our social media and see we’re a company they want to work for. We’re fun, we’re active in the community and we highlight our team and our customers,” she says. “That activity alone is a great way to attract new talent to your business.” Earlier this year, Facebook revisited how it displays posts to users and began to prioritize posts that included video. To help your business break through the chatter and reach as large an audience as possible, Dittmer suggests retailers experiment with Facebook Live, the platform’s real-time video streaming feature to promote upcoming events, special sales, or just share a peek at a business in action.

Dittmer says retailers shouldn’t feel intimidated by live streaming; it’s a chance to highlight their business, employees and the events they work hard to host. She says it’s a common misconception that retailers should stream for 20 or 30 minutes. Even streaming for a few minutes in the days leading up to a big event can be an opportunity to promote key details to the community and boost overall turnout. “Facebook Live lets you build excitement for your events,” she says. “By adding video content to your posts, you can boost your message and reach more people organically.” Dittmer also recommends including a charismatic employee or two in the videos. It’s a great way to highlight talented staff and instill new skills and confidence in employees. At this stage, Dittmer says it’s important for retailers to establish a budget to begin promoting posts and events on Facebook. Luckily, retailers can reach hundreds of people for pennies on the dollar.

But retailers should think strategically about which posts they promote. Because Facebook advertising is so inexpensive, it can be tempting to promote every post, but Dittmer says inundating your followers can be costly. “People get tired of seeing paid ads again and again,” she says. “Pretty soon you’ll be the sponsored ad king and people will tune out. Being wise and intentional about what you post and promote is critical.” Dittmer recommends promoting events, key products and employees who are celebrating special milestones to reinforce your business’s expertise. For retailers who reach the summit of social media success, Dittmer suggests seeking out Facebook groups devoted to discussing the latest social media news and trends. Dittmer herself belongs to one and says it’s an invaluable way to troubleshoot and get advice from experts in the field. “These groups are like continuing education for social media and I really encourage people to get involved in one,” she says. “Ultimately, social media will change. If you join a group and follow that information, you and your business can stay on top.”

“Ultimately, social media will change.

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”

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The Next Steps •

• •

Stay up-to-date with Facebook changes by joining a specialized group. Brainstorm new ways to highlight your business. Pay to promote posts that perform well to broaden your reach and share your best content.

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By Kate Klein, kklein@nrha.org

Tariff Talks

Industry Manufacturers and Distributors Weigh In on Tariffs

ecently announced and proposed tariffs on raw materials continue to be an ongoing discussion worldwide as the U.S. and its trading partners shift their positions on international trade. The North American Retail Hardware Association (NRHA) recently conducted a survey of more than 75 of the home improvement industry’s top manufacturing and distributing companies to help determine the potential impact of the tariffs on the industry. According to the results of this survey, nearly 80 percent of the companies that expect the tariffs to impact their operations believe the effects will be negative. About 19 percent say they don’t know if the effects will be good or bad, and a small percentage think they will be positive. Study participants who expect positive results say they think the tariffs will strengthen the U.S. economy, help get trade concessions for the country from other nations and push their companies to look for operational efficiencies.

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HARDWARE RETAILING | September 2018

Nearly 90 percent of manufacturers and distributors surveyed expect tariffs on imported aluminum and steel from countries such as China to force them to raise their product prices. Because overseas suppliers have increased their raw material prices to accommodate the new import tariffs, domestic suppliers have also been able to raise their prices, some respondents say. The survey results show that increases in the costs of sourcing steel and aluminum domestically have further contributed to U.S. manufacturers and distributors needing to increase prices on their finished goods. Higher prices on raw materials produce higher manufacturing and distributing costs, which will result in consumers paying more at retail, respondents say.

All story data were compiled from a survey of manufacturers and distributors conducted by the North American Retail Hardware Association (NRHA).

Will the tariffs on aluminum and steel impact your business?

How will tariffs on imports of steel and aluminum impact your business? Respondents selected all answers that applied to them.

Yes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 .8% No . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 .0% I don’t know . . . . . . . . . . . . . . . . . . . . . . . 11 .2%

I will be forced to increase my pricing.

89.9%

I will be forced to reduce my margins.

58.2%

My production costs will increase.

55.7%

My business will be less competitive.

50.6%

I will be forced to seek out different suppliers not impacted by the tariffs.

43.0%

I will need to seek alternative materials to use in production.

21.5%

My business will benefit from the implementation of tariffs.

2.5%

How does your company plan to respond to the steel and aluminum tariffs? Respondents selected all answers that applied to them. Adjust our pricing to accommodate tariffs

84.8%

Lose margin on our products

43.0%

Seek new efficiencies to offset tariffs

29.1%

Look for new material options to reduce usage

17.7%

No changes at this time

12.7%

Begin sourcing more domestically

11.4%

Other

7.6% 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

% of Survey Respondents

Respondents who answered “Other” say they plan to communicate with customers about the effects of the tariffs, source materials in other countries, source more domestically, attempt to use only domestic products, absorb some costs and pass along others, carry less inventory in reserve and ask suppliers to help absorb costs.

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Some survey participants believe increasing their prices may not impact them negatively, since their competitors’ pricing will also have to go up. Only 2.5 percent of the respondents think the tariffs will benefit their businesses. Some of the manufacturers and distributors say it’s too soon to know how the tariffs will impact them. They are waiting to find out what else happens with the tariffs, international trade negotiations and the industry before deciding how to react. A few survey participants say the tariffs could put U.S. products in a better price position compared to Chinese goods and reduce the amount of low-quality items in the marketplace. The tariffs are motivating many companies to begin sourcing products domestically or expand how much they buy from U.S. producers, survey participants say.

“The results of this survey make

it clear that, at the very least, the tariffs and the prospect of additional tariffs could factor heavily into future pricing within the industry.

”

—Dan Tratensek, NRHA

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Multiple respondents say they will be looking for more domestic suppliers of aluminum and steel, while others will source more offshore. Some of them expect not only to source more raw materials in the U.S., but also to make more of their products stateside to reduce their reliance on imports. However, they are uncertain about whether domestic companies will be able to keep up with existing manufacturing—let alone provide for industry growth—if manufacturers try to source dramatically more materials in the U.S. than in the past. About 60 percent of the operators who expressed opinions on domestic production say they are concerned U.S. companies will not be able to supply enough aluminum and steel to maintain current manufacturing. For other survey participants, buying materials made in the U.S. remains cost prohibitive and they will continue to rely on imports. The tariffs on raw materials from China specifically may benefit some companies’ suppliers in other countries, respondents say. Several participants say they plan to start sourcing aluminum and steel from other countries that are less affected by increased trade duties. They listed India, Taiwan and Vietnam as countries that may become bigger, more competitive players in supplying imported products to manufacturers in the U.S. home improvement industry. More than half of the manufacturers and distributors report that their production costs will be rising because of the tariffs and they will have to find ways to compensate. In addition to raising prices, many of the respondents say they will ask their suppliers to help offset the higher costs. Nearly 60 percent of the companies NRHA surveyed expect to be forced to reduce their margins and about half of them think their businesses will be less competitive as a result of the tariffs. Only 13 percent of the survey participants do not plan to make changes because of the added tariffs. “Steel and aluminum tariffs are a growing concern for manufacturers and distributors, which will have to share cost increases,” says Dan Tratensek, executive vice president of NRHA and publisher of Hardware Retailing magazine. “The results of this survey make it clear that, at the very least, the tariffs and the prospect of additional tariffs could factor heavily into future pricing within the industry.”

What type of impact will the steel and aluminum tariffs have on your business?

78.5%

of respondents believe their business will be affected negatively.

19%

of respondents are unsure how their business will be affected.

2.5%

of respondents believe their business will be affected positively.

Please rate your level of agreement with the following statements: I’m CONCERNED that domestic producers won’t be able to supply enough aluminum and steel to maintain current production.

Strongly Agree

34.6%

Agree

12.8%

Neutral

28.2%

Disagree

5.1%

Strongly Disagree

5.1%

I don’t know

14.2% 0%

10%

15%

20%

25%

30%

35%

40%

45%

50%

% of Survey Respondents

I’m OPTIMISTIC that domestic producers will be able to supply enough aluminum and steel for my company to maintain AND GROW production.

Strongly Agree

5.1%

Agree

13.9% 39.2%

Neutral Disagree

13.9%

Strongly Disagree

27.9% 0%

10%

15%

20%

25%

30%

35%

40%

45%

50%

% of Survey Respondents

September 2018 | HARDWARE RETAILING

105

By Renee Changnon, rchangnon@nrha.org

Brewing New Ideas Hepler’s Hardware Uses Unique Past to Attract New Business

alking into Hepler’s Hardware, located in New Stanton, Pennsylvania, you’re bound to see customers browsing the store with a cup of coffee in hand. Owner Rob Hepler says most of these drinks come from the company’s coffee shop, the Stanton Daily Grind. Hepler owns and operates the hardware store and new coffee venture with his father, Robert. and his sister, Megan Orient.

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The family opened the coffee shop in May. He says the new business is proof that their 75-year-old family corporation, Hepler’s Town and Country Enterprises, continues to grow and evolve. The Hepler family business dates back to 1942, when Albert Karl Hepler, purchased a feed store in Youngwood, Pennsylvania. Soon after in 1947, they purchased the Stanton Mill, an established flour and feed mill located in nearby New Stanton.

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Today the milling business is known as the Stanton Milling Co., and although flour, pancake mix and cornmeal production has been outsourced to another mill, the Heplers are the fourth known family to own and distribute the same product line originated in the Stanton flour and feed mill, he says. The family appreciates the company’s history, but they are always looking to build toward the future. Their newest venture, Stanton Daily Grind, offers customers both the aroma of fresh coffee and a taste of the past.

Focusing on the Daily Grind The family built and opened a coffee shop from the ground up to serve their shoppers and the local community. However, the new establishment also provides an opportunity for the family to pay homage to the business’s history.

“With the coffee shop, we wanted to be able to offer a special experience to our town and shoppers. —Rob Hepler, Hepler’s Hardware

”

“Stanton Daily Grind is a nod to our historical role in the community as a flour mill,” Hepler says. “With the coffee shop, we wanted to be able to offer a special experience to our town and shoppers.” The coffee shop is found in a building located in the same area that was previously the company’s Garden Center Restaurant, which was a popular spot in the 1950s. Now customers can come in to grab a coffee and look at historical murals, photos, old tools and feed sacks from the company’s mill store that date back 165 years. As an owner of Stanton Daily Grind, Hepler has a great appreciation for his company’s products. His love for coffee, and the lack of coffeehouses in the area were a big part of why he decided to start his own shop. “We served over 400 patrons the first day we opened Stanton Daily Grind,” Hepler says. “It was awesome to see so many people turn out. What was even more reassuring was observing people in the hardware store drinking our coffee or watching customers leave the hardware store to grab a cup. The two businesses really serve each other well.” Continued on Page 110

In April, Hepler’s Hardware owners Rob (left), Megan (center) and their father Robert broke ground on the site where the new building for Stanton’s Daily Grind would be housed. Rob’s and Megan’s children will be the fifth generation to be involved in the business.

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A Walk Down Memory Lane

After ordering a coffee at the Stanton Daily Grind, customers can often be found looking at historical photos and old tools from throughout the history of the feed mill, which has been part of the community since the 1850s. Albert Karl Hepler not only bought a farm and feed store, but also the flour and feed mill business from the Stanton family. Albert purchased the patents, formulas and equipment to continue production of the Stanton’s unique mill products. In the 1980s, as farming and agriculture slowed in the area, the family decided to sell the mill building, owner Rob Hepler says. Instead of grinding the grains on-site, the Stanton Milling Co. original pancake mix, flour and cornmeal recipes are produced at another mill. The products are sold at Hepler’s Hardware and Stanton Daily Grind, and they are also distributed to stores throughout Pennsylvania, Virginia and West Virginia. In the 1950s, the Garden Center Restaurant opened alongside the hardware store and remained a popular spot among locals for 25 years. It was the only 24-hour diner for miles.

Eventually, the restaurant closed, and the Hepler’s rented the space to another business until the family opened the Stanton Daily Grind in 2017. Additional plans for the business are in the works, as Hepler and his family are working on developing a rooftop garden patio.

September 2018 | HARDWARE RETAILING

109

Continued from Page 108

Full Steam Ahead The next phase for the family business is to turn Hepler’s Hardware into a full shopping center, Hepler says. The company is leasing building space to other local business owners, including a local chocolate shop owner. The Heplers also plan to create a space on the property for a local farmers market, beginning this fall. At the farmers market, which will take place once or twice a month, Hepler says they will highlight a local nonprofit organization each time to help raise awareness and funds. “Back in the early days, the mill and hardware store were the center of this community,” he says. “I’d like to think we remain that way and are becoming even more of a local community hub with our future plans, which is exciting to be able to do.” The retail hardware business remains a major part of the company, as well. The hardware business has tripled in size over the past 75 years, Hepler says. The primary departments today include plumbing, electrical, lawn and garden, screen-making and repair, outdoor power equipment and more.

“I think the reason we are

still thriving is because we weren’t afraid of changing, and every leader of the business has implemented something to help us remain competitive.

”

—Rob Hepler, Hepler’s Hardware “People come to us because they can find what they need here or they can have something fixed here,” Hepler says. According to Hepler, looking to the future is something generations before him have done to keep the family business thriving, and he will continue to follow their lead. The next item on their wishlist is a rooftop garden patio. “I think the reason we are still thriving is because we weren’t afraid of changing,” Hepler says. “Every leader of the business has implemented something to help us remain competitive.”

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Siblings and co-owners Rob Hepler and Megan Orient worked together to get their new coffee shop, the Stanton Daily Grind, up and running. They honored the company’s history in the design of the shop and created a mini-museum about the mill.

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111

Process & Procedure: Training

By Melanie Moul, mmoul@nrha.org

The First 30 Days Preparing Your Newest Employees for Success

hink back to your first day on any job, whether your first or the role you’re in now. Do you remember everything from your initial few weeks? How long did it take you to master the skills you eventually used every day? There is a lot of information new associates are expected to grasp in those first few weeks. Following a concrete training program can be the solution and may help improve employee retention rates. Hardware Retailing spoke to Pete Walsh, who is the fourth-generation owner of Walsh’s Ace Hardware and operates four stores in central Wisconsin, to learn more about his training philosophies. Walsh employs about 150 people throughout his four retail locations,

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HARDWARE RETAILING | September 2018

which all serve rural and suburban communities. Walsh has spent many years planning and developing his training programs, but he often returns to the same conclusion: When you commit to training, you have a hand in creating the good habits that you prefer in your team members. Find out how Walsh executes training in his stores in the first 30 days of a new associate’s employment and how you can implement a similar plan in your operation. Also, look for additional resources from the North American Retail Hardware Association’s (NRHA) Trainer’s Toolbox, a free online collection of videos, worksheets and other training options. See what’s available at nrha.org/trainers-toolbox.

Hardware Retailing Digital Edition

Research

Gain Access Today! Association News and Events

A Few Clicks Away Don’t miss out on the many ways you can access industry news, operations articles, training updates, exclusive research and additional resources. You can receive Hardware Retailing and supplemental content right in your inbox in a matter of seconds. You can even tailor your subscriptions to the content that will be most useful you and will help you improve your operation.

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Education and Training

DAYS

1-7

Getting Acquainted

Everyone has had a first week on the job, and it’s generally filled with a fair bit of nerves and anticipation. That week can go by in a flash, becoming a blur of learning other employees’ names, figuring out where to put your lunch and reading through pages of human resources documents. For new associates at Walsh’s Ace Hardware, the first week is about getting to know your new work environment. Walsh doesn’t want to overwhelm his new hires during their first week in his stores, so their time is spent learning the basics. “The first week of employment in any enterprise will show you the most important things. What you learn in week one is the building block for all things you learn in the future,” Walsh says. “We show them where the bathroom is and how to get paid. Forget either one of those, and you are in trouble! After that, we introduce them to the rest of the team and explain different parts of

the business, like what a bin tag is. After that, it’s mostly about our company, safety and protocols.” Also during that first week, Walsh says his store managers and training coordinators are ensuring the new associate will be a good fit for the business overall. While evaluating fit for company culture is part of the interview process, a more accurate assessment forms once the person is on the floor interacting with the entire team. “When we’re interviewing new team members, we primarily look for personality, someone who fits the mold of who we need and the position we’re hiring for,” Walsh says. “Secondarily, we look for people who have succeeded in a team environment, which can be anything from a sports team to a former job. Having experience working with others and working through frustrations is an important component.” Walsh says having a structured training process can help quickly weed out the people who may not be a good fit for your operation during a probationary period. You don’t necessarily make a final decision about deciding to part ways with an employee after the first week of training, but having a structure in place provides insight you may not get from the interview and allows you to catch problems early. “When you expedite training, you lose that process of ensuring they are a strong fit. You inherit problematic behaviors you could have avoided,” he says. “We’re a family business, and everyone here is part of that family. New team members need to mesh with the culture, which doesn’t mean changing it, but adding to it.”

Training Tip When communication among team members is lacking, it can have a negative impact on daily operations and even customer service. To help create a stronger team, consider hosting team-building exercises at your next store meeting. Download this helpful guide at nrha.org/teambuilding_notes.

The first week of training at Walsh’s Ace Hardware includes interacting with associates, which gives managers a chance to assess fit within the team.

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HARDWARE RETAILING | September 2018

DAYS

8-14

Checking the Boxes

Several years ago, Walsh developed a training program that outlined the first 12 weeks of training. Each new hire is issued a booklet that spells out on a daily and weekly basis what tasks need to be accomplished. “The booklet takes tasks that every associate needs to know and itemizes them throughout the first 12 weeks. It tells the associate how many times they need to accomplish a task in order to move on to the next step,” Walsh says. “We don’t just say, ‘Follow this person and learn something.’ We say, ‘Do these things at this time.’” The booklet system allows Walsh’s Ace training supervisors to track the progress of new employees and ensure they are achieving the necessary milestones. While the booklets allot a certain length of time to learn specific tasks, Walsh says he understands that some people learn at different paces. His system allows for additional time if an associate isn’t retaining information or skills within the set time. “If someone isn’t getting something as quickly, that’s OK. Sometimes it’s just the way they learn,” Walsh says. “In our stores, if you need more time to learn the skills outlined in the training booklet, that’s OK. But you have to be able to meet minimum training standards so you don’t negatively affect the business.” While some retailers may consider a check box training system to be inconvenient, Walsh says it helps instill good habits for all team members and ensures everyone throughout his four stores receives consistent training. “I’d rather have a system that’s cumbersome instead of leaving the training up to someone’s interpretation of customer service,” he says. “We need to create the habits that we prefer. There are no magic programs or a one-size-fits-all approach, but the priority is to be honest with yourself and your associates with what you expect.” Walsh says many retailers don’t define training within their organizations, which can lead to trouble. “Training down an uncertain path is problematic,” he says. “Once you know what it is you want, it’s your job to train and empower your staff to get there.” In addition to working through the booklet system, new associates also spend time putting up bin tags and backstocking the store. Walsh says these tasks are some of the best ways to learn how the store operates.

New associates at Walsh’s Ace learn different departments by putting up bin tags and stocking shelves, instead of just touring the aisles independently.

“Experiential education is best,” he says. “These base functions are critical, and seasoned folks sometimes avoid them, but they are the best way to become familiar with the store. Years ago, before we had a proper training program, we would send them on the old ‘walk through the store.’ But that’s not effective because it’s easy to forget where specific items are. You have to have a structured way to learn the store.”

Training Tip The amount of information a new associate needs to know can be daunting. Have your newest team members learn about the categories and products in your store with the Trainer’s Toolbox Product Knowledge series. Visit nrha.org/product-knowledge to access more than two dozen product- and project-specific guides.

September 2018 | HARDWARE RETAILING

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DAYS

15-21

Earning a Spot on the Team

New associates at Walsh’s Ace Hardware are hired to fill specific openings in schedules, such as weekday mornings or afternoons. Nearly every associate’s schedule includes working at least one weekend day. During the training process, however, trainees generally work a Monday-through-Friday schedule, and then they transition into their set schedule once they “graduate” the program. “We need a person in a spot, not just a person,” Walsh says. “Part of the reward of graduating the training program is getting them to the schedule they were hired for.” Working toward completing the booklet training program is what is known to many Ace retailers as “earning the red vest.” At Walsh’s Ace, that achievement can only be met once all the check boxes in the booklet have been completed. Walsh says that generally takes about three weeks, but sometimes it can be longer, depending on the learning style of the associate.

Cashiers at Walsh’s Ace are expected to know the store in detail in order to help customers get to the right place.

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HARDWARE RETAILING | September 2018

marketing@seal-once.com

“Nobody walks in here ready to go,” he says. “Even if you were in another Ace store, you will not be trained the way we do it. It’s not that our way is better, it’s just different.” For example, at Walsh’s Ace, new associates who have been hired specifically for a cashier position generally take about three weeks before they have the skills and knowledge necessary to operate the register independently. “Cashiers go through the same training as a floor associate and then they go on a path specific to cashiers,” Walsh says. “In addition, the new employees will shadow a seasoned cashier, then run the register with oversight. When they are ready, the new cashier will work independently with a seasoned vet nearby.” Walsh says the job of a cashier is about more than ringing sales, which is why in his operation, it can take up to a month for the employee to be able to perform all of their job expectations. “The cashiers do such an important job of directing traffic,” Walsh says. “They need to know who’s busy and where resources are throughout the store. They field calls and take customers’ questions right as they walk in the door. If they don’t know where things are located in the store, they can’t do their job well.” Working through booklets and putting away stock helps cashiers understand each area of the store before they are stationed at the register. As far as helping customers is concerned, Walsh says knowing the layout of the store is crucial to a cashier’s success. “Initially, it’s better for them to know where plumbing and electrical are than how to make a key,” he says. “The skills come after the knowledge.”

Training Tip Cashiers are often the first people a customer sees when they walk in the door, and for new associates, juggling questions and remembering to smile can be overwhelming. Have your cashiers watch the Trainer’s Toolbox video on First Impressions to help them understand how important their role is for the operation. Visit nrha.org/first-impressions.

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Creating 22-30 a Path DAYS

While the first few weeks of training are dedicated to familiarization, the next phase of training at Walsh’s Ace focuses on specialization. “The first three weeks is, ‘This is what a hardware store is’ and, ‘This is what our hardware store is,’” Walsh says. “After that, we’ll start to create a path.” To determine the best path for a new associate, managers find out their interests and abilities, which Walsh says most people think are the same, but that isn’t necessarily the case. “We would rather put someone on a path that’s something they enjoy, rather than something they’re good at right out of the gate,” he says. “That positioning makes for a stronger employee.” If an associate expresses interest in a certain category, they will be put on a specialist path. Specialists develop knowledge in their specific category, but their primary role is a general customer service agent.

“We never want to hear, ‘It’s not my department’ in our stores,” Walsh says. “We are here to help everyone because everyone comes for something.” While a month may seem like a long time to train someone before they are ready to move on, Walsh disagrees. He says the idea that a new employee is an asset is one of the biggest retail myths, and a structured, in-depth training program is the solution. “Employees are initially an expense to the business. Until someone is trained, they have very little to contribute,” he says. “It is our job as business owners to convert expenses into investments, which pay back over time. If we do a proper job training, we recoup our investment many times over. We have at least $2,000 invested in an employee with training before we expect any return. For a baseline, that might be 200 hours or five weeks minimum before someone can materially help the business.” Walsh says training programs fail too often from lack of commitment. “Too many times, we are tempted to shorten the training and call it good enough,” he says. “Later, when we are frustrated that a person isn’t progressing properly or numbers are down, we can usually look back to the time we cut training short.” Even as the great-grandson of the founder, Walsh says he wasn’t exempt from his own kind of trial period before he joined the business, and he’s approaching it the same way with his sons. “My father told me that I needed to see the world and I needed to know what it was like to lose and to win,” Walsh says. “Just because your name is Walsh doesn’t mean you are destined to do this for life.”

Training Tip Creating a training program shouldn’t be all on your shoulders. Enlist the help of your veteran employees and those who have shown they are capable of leadership. Use the Train the Trainer guide as a starting point for developing a comprehensive training program. Learn more at nrha.org/train-the-trainer.

New associates follow the Walsh’s Ace training booklet to become familiar with each area of the operation before deciding on a specialty.

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A Training Calendar to Call Your Own For Pete Walsh, owner of Walsh’s Ace Hardware in Wisconsin, developing and redeveloping an effective, structured training program is an ongoing task. The company’s current booklet system allows trainees to learn skills and achieve milestones at their own pace, while also staying within the operation’s guidelines.

To help your new associates stick to a schedule during their first 30 days, consult this calendar to build your own booklet of training milestones. Determine what first steps are most important to your business, and consider making this calendar the first page of your booklet for reference. Download it at TheRedT.com/training-calendar.

Week 1

Week 2

• Overviewing store policies and procedures with a human resources manager, training manager or independently. • Meeting all team members, potentially as part of a store meeting or team-building activity. • Touring the store with a training manager and learning the basics of each department from the training or department manager. • Being introduced to industry-specific concepts, such as what a bin tag is and the different types of merchandisers (dump bins, endcaps, etc.).

Week 3 • Running the register with a training manager nearby. • Answering the phone or greeting customers and sending them to the appropriate person or department. • Shadowing and practicing department-specific tasks, such as cutting keys or mixing paint. • Taking initiative to help other team members with stocking or cleaning tasks.

• Shadowing on point-of-sale system functions and reviewing cash handling best practices. • Correctly putting away returned, unwanted or misplaced merchandise. • Shadowing an employee performing a weekly inventory check. • Assisting in cleaning or maintenance tasks, such as fronting and facing shelves or putting away a delivery.

Week 4 • Learning more advanced POS tasks, such as processing a return or running a sales report, as appropriate for their role. • Helping a customer from start to finish: Finding the appropriate product, asking if they need additional supplies and following through with the sale. • Continuing to develop industry-specific knowledge by researching products and projects. • Checking in with the training manager on any outstanding questions or challenges.

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Newsmakers

PRO Group Recognizes Outstanding Retailers

hree businesses have been recognized by Denver-based PRO Group for investing in their communities and delivering exceptional customer service. PRO Group awarded its annual Paul L. Cosgrave Memorial Award, which is named after PRO Hardware founder Paul L. Cosgrave, to 415 PRO Hardware. It also recognized Country Farm and Home PRO Hardware as the 2018 Paul L. Cosgrave Memorial Award Finalist. Both stores were named 2017 PRO Retailers of the Year, along with Welches Mountain Building Supply & PRO Hardware. “PRO Group is proud to honor these independent businesses,” says Shari Kalbach, vice president at PRO Group. “The winners are selected based on everything from sales to store modernization to support of PRO programs and more. Across the board, these retailers are top performers and truly represent what PRO Hardware stands for.”

Paul L. Cosgrave Memorial Award Winner 415 PRO Hardware Dallas, Pennsylvania Over the course of just two years, 415 PRO Hardware has become a successful home center destination in Dallas, Pennsylvania. PRO Group has chosen the business as the 2018 Paul L. Cosgrave Memorial Award Winner for its success in customer service and retail operations. The company is also the 2017 PRO Hardware Retailer of the Year for the Bostwick-Braun Co. based in Toledo, Ohio. The business will be formally honored at Bostwick-Braun’s 2018 Fall Dealer Market, Sept. 20-22, in Toledo. Formerly a landscaper, Kurt Fetterman filled a community need by opening the business in April 2016. He puts a large emphasis on endcaps and merchandising displays by altering them with seasonal items and new products. Fetterman is also improving his knowledge of the industry and his customer base to strengthen 415 PRO Hardware. Fetterman establishes relationships with contractors as the go-to shop for paint and sundries by stocking the products they want. 415 PRO Hardware is known as a family business in its community. Fetterman credits his wife, children and parents for their support. Family members can often be found working in the store and representing the business in the community. Fetterman keeps 415 PRO Hardware involved with the community by donating products, financial resources and event space to several philanthropic organizations, including the Dallas Lions Club and the local American Legion post.

Upcoming Events September 2-4 Spoga+Gafa Cologne, Germany

7-9 Horizon Distribution Inc. HDI Annual Conference & Trade Show Yakima, Washington

14-16 HDW Inc. Fall Market Shreveport, Louisiana

14-16 Monroe Hardware Fall Market Myrtle Beach, South Carolina

15-18 Home Hardware Market St. Jacobs, Ontario

20-22 The Bostwick-Braun Co. 2018 Fall Dealer Market Toledo, Ohio

21-22 Blish-Mize Fall Buying Market Overland Park, Kansas

28-30 True Value Fall Reunion Denver

October 10-12 Wallace Hardware Co. Inc. Fall Dealer Market Pigeon Forge, Tennessee

12-15 Do it Best Fall Market Indianapolis

17-19 Taiwan Hardware Show Taichung, Taiwan

Kurt Fetterman (right) opened 415 PRO Hardware in Dallas, Pennsylvania, in April 2016. He credits his wife Lisa (left) and the rest of his family for his success in the industry.

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

AWARD WINNING RETAILERS

Paul L. Cosgrave founded PRO Hardware in 1953. The annual award that bears his name goes to our top PRO Hardware retailer nationwide; based on sales, merchandising, inventory management, PRO key supplier support, PRO advertising, PRO store identification and financial performance.

2018 Paul L. Cosgrave Memorial Award Winner 415 PRO Hardware

Dallas, Pennsylvania Kurt and Lisa Fetterman - Owners PRO Hardware Retailer of the Year PRO Distributor: The Bostwick-Braun Co.

BUILDING THE SUCCESS OF AMERICA’S INDEPENDENT HARDWARE RETAILER FOR 65 YEARS

Paul L. Cosgrave Memorial Award Finalist: Country Farm & Home PRO Hardware & FARM MART

PRO Hardware Retailer of the Year: Welches Mountain Building Supply & PRO Hardware

Byrdstown, Tennessee Kenneth Scott, John Scott & Tommy Fitzegerald - Owners PRO Hardware Retailer of the Year PRO Distributor: Wallace Hardware Co.

Welches, Oregon Bill & Rochelle Simmonds - Owners PRO Distributor: Horizon Distribution, Inc.

PRO Hardware Distributors:

Horizon Distribution, Inc. Yakima, WA • 509.453.3181

Learn more about the PRO Hardware program by contacting Shari Kalbach, Vice President, at 303.792.3000 or shari.kalbach@pro-group.com.

Wallace Hardware Co., Inc. Morristown, TN • 423.586.5650

Find us online at www.prohardware.com

The Bostwick-Braun Co. Toledo, OH • 419.259.3600

Newsmakers

The team at Country Farm and Home in Byrdstown, Tennessee, goes above and beyond to give back to the local community. Plus, the operation hosts events at the store to give thanks to its customers all year long.

Paul L. Cosgrave Memorial Award Finalist Country Farm and Home PRO Hardware Byrdstown, Tennessee Country Farm and Home PRO Hardware is being honored by PRO Group as the 2018 Paul L. Cosgrave Memorial Award Finalist for its success in customer service and retail operations. The company is also the 2017 PRO Hardware Retailer of the Year for Wallace Hardware Co. Country Farm and Home’s story began in 1980 when Kenneth and Trish Scott purchased a local feed store in Byrdstown, Tennessee, called Pickett Farm Supply. In 2010, the family expanded the business by acquiring a local hardware store. Three years later, in 2013, Kenneth and Trish’s son, John, bought the business and continued expanding. He entered into a partnership with local businessman Tommy Fitzgerald and his family, and in January 2015, the Scott’s former business officially became Country Farm and Home. According to John Scott, the company’s relationship with PRO Hardware keeps the business ahead of the competition. He uses merchandising tactics and marketing strategies from PRO that have proven to be meaningful and profitable for Country Farm and Home. PRO Hardware’s programs help the company successfully communicate with their customers and offer unbeatable promotions. The team at Country Farm and Home has also invested in the look and feel of the operation to create a pleasant shopping experience for customers. They have large, illuminated signage near the road so the store is easy to find. Inside the 26,000-square-foot Byrdstown location,

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the modern showroom is brightly lit and has appropriate signage to make shopping easy. Country Farm and Home takes it one step further by strategically using endcaps to feature special promotions, seasonal items and closeouts so their customers never miss a deal. Service is another key area in which the business excels. In addition to offering major brands and quality product lines, customers can always expect knowledgeable sales people, special ordering capabilities and other services such as custom paint mixing. The community relies on Country Farm and Home for its home improvement needs, and its civic support. They can depend on the store to give back to the community. Country Farm and Home supports several local organizations, including United Way, the chamber of commerce, high school athletics, Boy Scouts of America, Girl Scouts, Byrdstown Fire Department, Byrdstown Police Department, Pickett County FFA and Young Rodeo. Country Farm and Home also hosts events each year to bring the community together and say thank you to their loyal customers. The company holds an annual customer appreciation day, a contractor appreciation day and multiple cookout events. While Scott and Fitzgerald remain dedicated to their store in Byrdstown, the future is bright for the company. They’ve recently opened a second location in Cookeville, Tennessee. Plans are also underway for a third location in Monticello, Kentucky, and a fourth location in Crossville, Tennessee. Country Farm and Home will be formally honored at the Wallace Hardware 2018 Fall Dealer Market, Oct. 10-12, in Pigeon Forge, Tennessee.

PRO Hardware Retailer of the Year Welches Mountain Building Supply & PRO Hardware Welches, Oregon Welches Mountain Building Supply & PRO Hardware is committed to ensuring its customers receive flawless service. Owners Bill and Rochelle Simmonds know that superior customer service is one of the most powerful business differentiators in Welches, Oregon. The team has even provided transportation for older customers to get products they need. Recently, the business added unique, locally crafted items to its inventory. It also displays arts and crafts from local artisans. Bill and Rochelle support many charitable organizations each year. The business also collects gifts to ensure a local family has a memorable holiday season. Rochelle organizes an annual fundraiser at the local fire station which raises money to supply bike helmets for area children. “The team at Welches is so involved in nearly every community event in their market. They spend countless hours making Welches a better place to live,” says Mike Dawson, sales manager for Horizon Distribution. “They have a 100 percent commitment to serving their community.” The business will be formally honored at the Horizon Distribution 2018 Fall Dealer Market, which is held Sept. 7-9, in Yakima, Washington.

Welches Mountain Building Supply & PRO Hardware stands out through customer service, say owners Bill and Rochelle Simmonds.

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Newsmakers Donald E. Frieson Joins Lowe’s Executive Team After announcing a new leadership structure, Lowe’s has filled one of its vacant executive positions. The big-box home improvement company announced the appointment of Donald E. Frieson as executive vice president of supply chain. In his new position, Frieson will oversee “the company’s distribution centers, logistics, global sourcing, transportation and delivery services.” TheRedT.com/lowes-frieson

Retail and Manufacturing Lead 2018 Hiring Boom Heading into 2018, economists expected hiring to slow due to a tight labor market, as a below-4 percent unemployment rate would make finding workers difficult for businesses. According to The Wall Street Journal, “the opposite has occurred, largely due to a resurgence in two categories that had been contracting, retail and manufacturing.” Through July, U.S. employers added an average of 215,000 jobs a month to payrolls; a market acceleration from the 184,000 jobs added during the first seven months of 2017.

National Association of Home Builders to Train 50,000 Workers The National Association of Home Builders chairman Randy Noel pledged that the organization and its educational component, the Home Builders Institute, “will educate and train 50,000 new workers over the next five years for careers in the construction trades.” TheRedT.com/nahb-training

Impulse Sales a Theme of United Hardware’s Buying Market At the United Hardware Fall and Winter Buying Market, held at the Minneapolis Convention Center, attendees found ways to improve their average transaction size, increase their margins and invest in their communities. TheRedT.com/united-fall-18

Lowe’s Snags Another Top J.C. Penney Exec Lowe’s hired a second high-profile J.C. Penney executive two months after recruiting the department store chain’s CEO. Lowe’s named Joseph M. McFarland III as executive vice president of stores. TheRedT.com/lowes-mcfarland

House-Hasson Hardware Summer Market Unites Retailers At the 2018 House-Hasson summer dealer market in Sevierville, Tennessee, attendees got information on the regional distributor’s programs and products to help their businesses succeed. TheRedT.com/house-hasson-18

PRO Group Hosts 2018 Group Merchandising Conference PRO Group hosted its Group Merchandising Conference in Atlanta, facilitating more than 1,600 meetings between vendors and member distributors. Attendees forged new relationships by discussing new products, taking advantage of specials and connecting at networking events. TheRedT.com/pro-merchandising

TheRedT.com/retail-boom-2018

Amazon Prime Day Breaks Records, Sells More Than 100M Products

TreeHouse CEO on Building the Company’s Future

For the fourth year in a row, Amazon broke records on its company-invented shopping holiday, Amazon Prime Day. Although the online shopping event was bugged by an early glitch that prevented shoppers from accessing the website, “shoppers spent an estimated $4.2 billion.” TheRedT.com/prime-day-18

Do it Best Corp. Names New National Logistics Manager

Walmart and Microsoft Plan Technology Partnership

Ace Hardware Names Kim Lefko as Chief Marketing Officer

Walmart has announced it will begin using Microsoft’s cloud data technology for a range of cloud, artificial intelligence and internet of things applications. The five-year agreement further deepens the bond between the two companies. TheRedT.com/walmart-microsoft

Ace Hardware Corp. announced the appointment of Kim Lefko to the position of senior vice president, chief marketing officer. As the company’s new CMO, Lefko will be responsible for the brand’s global marketing and advertising. TheRedT.com/ace-lefko

TreeHouse CEO Gary Kusin was recently interviewed on the National Retail Federation’s podcast series, “Retail Gets Real,” where he shared insights on the company’s strategy and focus moving forward. During the conversation, Kusin discusses the home improvement market and the company’s focus on the emerging “do-it-for-me” market. TheRedT.com/treehouse-nrf

Berkshire Hathaway Gives $2B Loan to Sears CEO’s Real Estate Group More than two years ago, Warren Buffett personally invested in the real estate

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empire spun out of Sears Holdings Corp. Now, his company Berkshire Hathaway Inc. is extending a $2 billion loan to the real estate investment trust that owns Sears stores. TheRedT.com/berkshire-loan

HARDWARE RETAILING | September 2018

Do it Best Corp. announced the promotion of co-op veteran Steve Rose to national logistics manager. Rose has served as safety director since joining Do it Best Corp. in 2011. TheRedT.com/dib-logistics-manager

CANADA Terry Davis’s Retirement Points to Changes at Home Hardware Terry Davis announced his plans to retire this year after nearly 50 years with Home Hardware. The company is expected to name a new CEO shortly. Davis started in the warehouse in St. Jacobs, Ontario, which is the head office and distribution center for the co-op and the 1,000-plus dealers the company serves. In 2010, Davis was appointed the executive vice president and COO, before becoming CEO of Home Hardware in 2014.

Lowe’s Continues Updating RONA Building Centers The RONA store in the west end of Toronto has been converted to RONA’s new building center model.

The location is the former head office and anchor store for the Lansing Buildall chain, an early—and major—acquisition by RONA as it expanded into Ontario in 2001. Now, the retail location has undergone a transformation, at a cost of more than $3 million. It’s the second RONA location in Ontario to be converted. Parent company Lowe’s Canada expects up to eight more stores to be refurbished by 2019.

100 RONA Dealers Online, Catching Up to Corporate Stores As the company rolls out its Click and Collect online shopping service, RONA announced its e-commerce channel now includes 100 participating dealer stores as well. RONA’s corporate stores, including its Reno-Depot chain, have been getting on board with the Click and Collect program.

Taiga Expands Wood Treatment With Company Acquisition Taiga Building Products, through a wholly owned subsidiary, has entered into a share purchase agreement with a U.S. treated-wood producer, Exterior Wood. Taiga will acquire all common shares of Exterior Wood for US$42 million. Exterior Wood has been operating a wood treatment facility and distribution center in Washougal, Washington, since 1977, and services retail building supply centers throughout the western U.S. and Canada, with a wide array of pressure-treated products. The acquisition will expand Taiga’s existing wood treatment operations at three facilities in Canada, with additional penetration into the U.S. market.

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

AD INDEX Ajax Wire Specialty Co. .................................................. 33 www.ajaxwire.com; 855-966-2529

House-Hasson Hardware Company ............................... 77 www.househasson.com; 800-333-0520

Quickscrews................................................................... 11 www.quickscrews.com; 800-743-6916

Allway Tools ................................................................... 67 www.allwaytools.com; 800-422-5592

Howard Products.......................................................... 123 www.howardproducts.com; 800-266-9545

Quikrete ....................................................................... 13 www.quikrete.com; 404-634-9100

Apex Tool Group............................................................... 1 www.crescenttool.com; 866-907-9716

HSI.................................................................................. 17 www.hardwaresuppliers.com; 800-334-5625

Red Gorilla ................................................................... 37 www.redgorillausa.com; 877-882-8784

Avalanche ....................................................................... 33 www.avalanche-snow.com; 800-378-3088

IPG................................................................................ 108 www.itape.com; 888-898-7834

Rust Patrol ................................................................... 82 www.rustpatrol.com; 713-244-8755

Bengal............................................................................. 85 www.bengal.com; 225-753-1313

Ironclad Performance Wear Corp................................... 27 www.ironclad.com; 844-200-5664

Sakrete......................................................................... 97 www.sakrete.com; 866-725-7383

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

Jeske Company Inc. ....................................................... 22 www.jeskecompany.com; 800-677-3383

Sashco ........................................................................ IFC www.sashco.com; 800-767-5656

Big Green Egg ................................................................ 55 www.biggreenegg.com; 770-938-9394

Lumax............................................................................. 37 www.lumax.com; 844-660-6876

Seal-Once .................................................................. 116 www.seal-once.com; 888-363-2628

Blue Dolphin ................................................................. 117 www.dolphinsundries.com; 631-253-4539

Master Magnetics Inc. ................................................... 30 www.magnetsource.com; 888-293-9190

S-Line by Ancra International ....................................... 34 www.ancra.com; 800-626-8353

Bonide ............................................................................ 45 www.bonide.com; 315-736-8231

Max USA Corp................................................................ 72 www.maxusacorp.com; 800-223-4293

Sika ................................................................................. 98 usa.sika.com; 800-933-7452

Broil King Barbeques ........................................................ 9 www.broilkingbbq.com; 800-265-2150

Merrifield Paint Co.......................................................... 93 www.maddogprimer.com

Simpson Strong-Tie .......................................................... 7 go.strongtie.com; 800-999-5099

Channellock .................................................................... 21 www.channellock.com; 800-724-3018

Mi-T-M Corporation ...................................................... 101 www.mitm.com; 800-553-9053

SKM................................................................................ 36 www.skmproducts.com; 800-851-8464

Cole’s Wild Bird.............................................................. 53 www.coleswildbird.com; 877-426-8882

Midwest Fastener ..................................................... 46-47 www.fastenerconnection.com; 800-444-7313

Stihl............................................................................ 86-87 www.stihlusa.com; 800-467-8445

Curv Group LLC.............................................................. 35 go.curvgroup.com

Motorolla ........................................................................ 57 www.acsradios.com; 800-248-5391

Sunnyside Corporation ................................................... 73 www.sunnysidecorp.com; 800-323-8611

Designer Greetings ........................................................ 19 www.cardsmartstoreinastore.com; 800-654-6960

Neptune’s Harvest ......................................................... 32 www.neptunesharvest.com; 800-259-4769

SureCan .......................................................................... 79 www.SureCanUSA.com; 801-827-0500

DeWitt ............................................................................ 23 www.dewittcompany.com; 800-888-9669

NRHA 2018 State of Independents Conference ......... 107 soic.eventbrite.com

Tacoma Firelogs ............................................................. 83 www.tacomafirelogs.com; 253-272-4107

Do it Best Corp.......................................................... 14-15 www.independentsdoitbest.com; 888-364-8237

NRHA/Hardware Retailing ............................................ 113 www.TheREDT.com

Taiwan Hardware Show ................................................. 81 www.hardwareshow.com.tw; +866-2-2595-4212

Dutton-Lainson Company............................................... 84 www.dutton-lainson.com; 402-462-4141

Old Masters.................................................................. 100 www.myoldmasters.com; 800-747-3436

True Value Company ................................................ 39, 41 www.truevaluecompany.com; 888-291-7229

ECI Software Solutions ............................................. 60-61 www.ecisolutions.com; 800-588-5128

Oneida Air Systems.......................................................... 5 www.oneida-air.com; 833-434-3258

UGL ................................................................................ 59 www.ugl.com; 800-845-5227

Fiskars PRO.................................................................... 43 www.fiskars.com/trades; 866-348-5661

Orgill Inc. ................................................................128-IBC www.orgill.com; 800-347-2860

Wallace Hardware Co..................................................... 25 www.wallacehardware.com; 800-776-0976

Flame Engineering.......................................................... 78 www.flameeng.com; 800-255-2469

Paladin Data Corporation ................................................ 65 www.paladinpointofsale.com/NRHA; 541-803-6060

Wastequip LLC............................................................... 31 try.toter.com/odorcontrol; 800-424-0422

Franmar ........................................................................ 111 www.franmar.com; 800-538-5069

PBI-Gordon’s Corp.......................................................... 75 www.gordonsusa.com; 816-421-4070

Wooster Brush Company ............................................... 71 www.woosterbrush.com; 800-392-7246

GE Momentive Performance Materials Inc...................... 3 www.caulkyourhome.com; 877-943-7325

Peel-Tek.......................................................................... 44 www.peel-tek.com; 512-993-4976

W.R. Case & Sons Cutlery Co...................................... 123 www.jessupsales.com; 800-821-1924

Hillman Group Inc........................................................... 91 www.hillmangroup.com; 800-800-4900

PRO Hardware ............................................................. 121 www.prohardware.com; 303-792-3000

XTend+Climb.................................................................. 99 www.xtendandclimb.com; 612-330-9915

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

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Last Word

Social Media Pointers From Your Association

ow that you’ve found your starting point on social media from the guide on Page 94, take some time to discover how the North American Retail Hardware Association (NRHA) and Hardware Retailing use social media. Check out this overview of our online haunts and the types of resources we share on each platform. Then review our suggestions on how you can engage your audience in similar ways on each platform. Introduce yourself by connecting with us on any of these platforms, and share how you have used social media to grow sales and engage your community. We would love to know how you have encouraged followers to become customers or vice versa.

Facebook How We Use It • Sharing breaking news and industry updates. • Highlighting retailer success stories in profiles. • Posting exclusive operations content that supplements the print magazine. • Giving sneak peeks and recaps from industry and NRHA events.

How You Can Use It • Show new products hitting the shelves, not just images from circulars or vendors. • Post changes to store hours due to inclement weather or holidays. • Host raffles and contests to encourage engagement. See TheRedT.com/guess-again for some inspiration.

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Making the Connection Facebook • @hardwareretailing • @NorthAmericanRetailHardwareAssociation Twitter • @hardwareretail • @nrha_official LinkedIn North American Retail Hardware Association Instagram @nrha_official

YouTube NRHAtv

Twitter

How We Use It

• Sharing quick overviews of news stories and operations content with links to the whole story.

• Sharing operations best practices content.

• Highlighting training opportunities available through NRHA. • Retweeting relevant information from other industry groups and news organizations.

How You Can Use It • Discover retail connections outside the industry. • Connect with community organizations, like local law enforcement or the city. Find out how McGuckin Hardware served as a “second responder” through Twitter during a flood in the community at TheRedT.com/socially-inclined. • Quickly share upcoming promotions and events with local news organizations.

• Communicating industry research that’s relevant for the entire channel. • Building connections with retailers, manufacturers and wholesalers. • Updating retailers on our business services partners. Visit nrha.org/business-services to learn more.

How You Can Use It • Follow your wholesaler and vendors for information about new products. • Engage with other retailers and independent business organizations for new ideas. • Post job openings and updates about your operation.

Instagram

YouTube

How We Use It

• Engaging instantly with followers at industry events on Stories.

• Sharing video overviews of exclusive research.

• Showing inside looks at retailers’ businesses on NRHA store visits. • Sharing updates on events and networking opportunities at NRHA headquarters.

• Highlighting student perspectives on NRHA training programs. • Showcasing new products that could help boost your bottom line or expand a niche. • Featuring tips from retailers on selling specific projects or categories.

How You Can Use It • Post several photos in an album to show a display setup from start to finish. • Introduce familiar faces or new associates so your customers know who will be there to help them. • Show a behind-the-scenes look at what goes into unloading deliveries or stocking shelves. • Use Stories to highlight everything at your events.

How You Can Use It • Host all of your video content in a central location, instead of across several platforms. • Film a tour of your store and introduce associates and department managers along the way. • Share videos of in-store events to use as promotions for the next one.

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Kelly Armstrong Cook’s Home Center New Mexico

“Working with Orgill, we have been able to grow our profits and expand our selection to keep customers shopping locally.”

Standing Up to the Competition Orgill Allows Our Business to Shine!

Goodbye, Big Boxes

New Ideas

“We know our service gives us an edge over the big boxes.

“We go to Orgill’s Dealer Markets to check out trends and

With help from Orgill we can sharpen our prices and expand

brainstorm new ideas. The new and unique products we find

our selection and run the boxes out of town.”

at the Markets, keep our customers coming back for more.”

A Fresh Perspective

Future Plans

“Our Orgill sales representative helped us find ways to

“Orgill’s Markets aren’t just about pricing and programs. We

enhance our selection and freshen up categories that had

were inspired to remodel our register area and front end of

lost their luster.”

the store based on a concept store we saw at the Market.”

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

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