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Publisher/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126
Editor/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864
Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609
Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com
Sales: Tom Ballard tballard@thehardwareconnection.com 317-938-9380
Sales: Paula Pasquale paula@thehardwareconnection.com 630-258-5666
Contributing Writer: John Franklin john@thehardwareconnection.com
Contributing Writer: John Fix III
By Chris Jensen
Raising the Bar for All Independents
After traveling around the country visiting hardware stores for the past 25 years, I thought I’d seen it all. I have a new favorite store—Hartville Hardware in Hartville, Ohio, a tiny town of about 2,400 in eastern Ohio. The Miller family, led by brothers Howard and Wayne, spent five years planning and building a 305,000-square-foot store that positions the 40-year-old business for the next generation and beyond.
Although it’s a monstrous store— twice the size of the average big box— it’s not intimidating or impersonal like a warehouse store and it’s definitely not a monument to anyone’s ego. Howard and Wayne Miller are the modest and humble stewards of a business that keeps growing because they are exceptionally talented retailers and they have their fingers on the pulse of their community.
Most independent retailers are content trying to carve out a niche with convenience and service, leaving assortment and price to the big boxes. Hartville Hardware’s size allows the Millers to blow the big boxes out of the water with dominant assortments in virtually every category.
Hartville Hardware shares a parking lot with the Millers’ two other successful
businesses: an 80,000-square-foot restaurant that seats 500 with a bakery and gift shop, plus Hartville Marketplace, which offers more than 100 indoor shops and as many as 1,000 outdoor flea market vendors in season. Finally being able to combine the three businesses into one location has turned Hartville Hardware into a destination store—you can make a day of it without having to leave to go eat, the type of one-stop shop that is the ultimate in convenience.
A good number of Hartville’s 320 employees have been with the company for more than a decade, which means the Millers can offer personalized, knowledgeable service that the big boxes can only dream about.
Howard and Wayne traveled all over the country visiting stores in and out of the industry to get ideas for their new store. If you want to get ideas on how to improve your business, I suggest you take a trip to Hartville. Better plan on spending the whole day there, and don’t pass up the fresh strawberry pie at the Hartville Kitchen.
Turn to page 28 for our story on Hartville Hardware, which includes links to a video interview with Howard and Wayne and a gallery of pictures of the store. ■
Jeff Powers, Owner Powers Do it Best Hardware
By Tom Chasteen
There’s a Story Behind Every Family Business
Recently, I had the opportunity to attend the grand opening of the largest independently owned hardware store in the United States. You had better sit down when I tell you the size—Hartville Hardware in Hartville, Ohio, is more than 300,000 square feet. My store is a convenience hardware store of 6,000 square feet, so you could take 50 of my small hardware stores and still not match the size of Hartville Hardware!
However, it’s not the size or the fact that they have a drive-through lumberyard and a drive-through feed store, and it’s not the fact that they actually built a complete house (1,850 square feet complete with roof) inside on the salesfloor to highlight their in-stock offerings of home decor, faucets, energy-saving devices, locksets, paint, kitchen cabinets or even the plants that are displayed around the house that are for sale in their garden area. As a retailer, those are all neat and creative things, but for me it was the two men behind the vision that really captivated my attention. Their story, like that of many retailers, actually started years before when Howard and Wayne Miller’s grandfather, Sol Miller, started a livestock auctioning
business in 1939. Sol noticed that all of the farmers and ranchers got pretty hungry working those auctions, so his wife, Soloma, opened a lunch stand to complement their livestock business.
In the mid-1940s Sol started renting space for others to sell goods, forming the beginnings of a flea market that is now known as Hartville Marketplace. Fast forward to 1972, when Howard and Wayne’s father, Howard Sr., came across an opportunity to buy a small hardware store. As Howard tells it, his father came to him one afternoon and said, “Son, how would you like to be in the hardware business?” To which he replied, “I don’t know, I’ve never thought about it.” His father responded, “Think it over tonight, because I’ve got to give the owner an answer in the morning.”
Both Howard and Wayne are getting close to retirement age, and they have about 20 family members who are actively working in the business. They made the tough decision that replacing their very successful 100,000-squarefoot store with a new 300,000-squarefoot store would enable their family to continue to prosper and grow their hardware business for another 50 years.
As a leading warehouse supplier for all major co-ops and hardware distributors, we can help put the right mix on your shelves, with consistent packaging and a variety of merchandising options. Your assortment can include a wide range of Southwire® products, from building wire, to MC cable, cord and flexible conduit. And, with Southwire’s in-store evaluation, we can help you understand the local factors that contribute to higher turns and improved profitability. Use our experience to focus on what’s most important – a well-organized electrical aisle where customers can find the correct product.
the way i see it
They didn’t build their new store for their financial benefit, but for the financial benefit of their families two and three generations from now.
For me the most intriguing part of attending this grand opening was meeting the two men whose vision it was to open the largest independent retail hardware store in the U.S. I was able to experience firsthand how Howard and Wayne interacted with not just the staff but also their customers. On several occasions as I was walking the aisles (I’m a hardware store owner, so I had to walk every aisle to see the breadth and depth of their extensive merchandise mix) customers would call Wayne or Howard by name and they responded by calling the customers by their name. This doesn’t happen unless you know your customers and you cannot know your customers if you’re in your office all of the time.
Another thing I found so refreshing is that both Howard and Wayne are very approachable, down-to-earth people who genuinely enjoy what they do. There wasn’t even the slightest inkling of arrogance or superiority in their voices or mannerisms. They were regular “hardware guys” like us—their store just happens to be 50 times larger than mine.
Oh, that little lunch stand that their grandparents started is now a bustling
full-serve restaurant that shares a parking lot with the home center. Hartville Kitchen can seat 500 people and as Howard and Wayne like to say, there was a waiting line when their grandparents first opened the lunch stand at the stockyards and there still is one. The apple pie was the best I’ve ever had!
Although Howard and Wayne’s story is pretty remarkable and their vision is much larger than most, their family story is not that much different than those of other independent hardware retailers. By our very nature we are independent people who happen to be in the hardware business. I’ll bet if we all had to get out of the hardware business tomorrow 80 percent of us would remain in business for ourselves selling something other than hardware—it’s just who we are; it’s in our DNA.
I would like to say congratulations to Howard and Wayne and to thank them for their warm hospitality. If you are ever traveling near Hartville it would be worth your while to stop by and see their store—it truly is impressive.
If you have an interesting story of how your family got into the hardware business let me know at tom@thehard wareconnection.com. n
Tom Chasteen, publisher of The Hardware Connection, is the third-generation owner of Tavernier Hardware in the Florida Keys.
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House-Hasson Offers the Right Tools to Help Independent Hardware Dealers Succeed!
Start making plans to attend the “Smoky Mountain Margin Maker” Dealer Market, set for October 25-27 in Sevierville, Tenn., and we guarantee you will find ways to improve your business and save money. Here are some of the retail tools that House-Hasson has to offer:
1. Etoolbox.net—New dealer-friendly website takes advantage of the latest technology. Get real-time updates on more than 50,000 SKUs in stock in the warehouse.
2. Open Order Report on website— You will be able to tell in real time whether an item is in stock and if a substitute is available.
3. Invoice Lookup—Let’s you review your order for accuracy before the truck arrives.
4. Electronic Payment—Take care of your invoice electronically on the website.
5. Multiple Retail Price Options— Increase your margins and grow your market share with the House-Hasson variable retail pricing system. You can customize your retails by category, vendor, sensitivity code and item. Choose from several rounding programs.
Dealer Market
October 25-27, 2012
Sevierville Events Center
Sevierville, Tenn.
6. Custom CD—Available to help dealers pursue commercial accounts.
7. Cipher Lab Ordering—Streamlines the order process for dealers at store level and at markets.
8. On-Demand Custom Advertising—
Building your own custom circular program offers the most fl exibility of any custom circular program at a very affordable price.
9. Competitive Buying Programs— House-Hasson has buying programs featuring unbundled prices that enable you to select the buying program that best fits your business.
10. Three Regional Markets a Year— Take advantage of Bonus Buy specials and unbelievable discounts on everyday items.
Had a drunk woman come in this past winter. She wanted something to pull staples from her head. She did not have money to go to the doctor. We told her it was not a good idea to perform medical procedures on herself, but she was already numbed up and would not hear any of it. She bought hobby pliers. It’s also shocking what people will buy claiming they will use them to trim toenails.
Matthew Abramsky Tony’s Ace Hardware • Hazel Park, Mich.
HARDWARE STORIES Amazing but TRUE
Dealers have been busy posting unusual customer experiences on Hardlines Digest (www.hardlinesdigest.com). Here are some of those amazing but true stories.
There was a woman who came to the counter upset that we didn’t have a bottle of turpentine small enough. I told her that the pint was the smallest container that was readily available to me and that I didn’t think the price was out of line. She said, “It isn’t the price I’m talking about sonny. I only need a few tablespoons of it.” Who knew that turpentine was used to get rid of intestinal worms? Come to find out her 15+ cats had given her a case of “the worms.”
A customer came in one day and asked for “little bitty wood.” My clerk described everything she could think of and began to ask questions. She finally figured out the customer wanted wood pellets for her wood stove. Then there was the guy who came in and was standing by our wire cutting rack. I went over to ask him if I could help him, only to discover he was cutting his fingernails with our hand-held cable cutter. Ick!
Jim Orner Kramer Bros. Do it Best • Lebanon, Ind.
Karla Robson Slaven’s True Value • Cortez, Colo.
We had a pre-Christmas promotion among downtown merchants. The fellow they hired to play Santa had started happy hour quite a bit earlier and was having a problem with his beard staying on. He purchased a tube of Super Glue and proceeded to apply the whole thing to his face and slap the beard back on muttering that that ought to hold the damn thing. It might have been interesting to watch the removal of the beard, but I never saw him again.
Steve Sayers Sayers Ace Hardware • Independence, Kan.
Howʼs Business?
Midwest
Trends in sales, margins and transaction size?
Sales are up this year about 7 percent, and we have continued to gradually increase since the spring. We’re in a resort area, and it seems like more people are coming to their vacation homes this year. Margins are up by about twotenths of a percent. Customer count is down by about 500, but they’re spending more on the average transaction. Also, over the past winter, we have been closely looking at departments, getting rid of dead stock.
Best niche categories? Definitely our paint, with Ace paint and Benjamin
Moore. Our lawn and garden is also strong. And we’ve been selling a lot of patio sets, fire pits and bird feeders. Solar lighting has been very popular, too. About five years ago we put in Radio Shack, where customers can buy car chargers, cell phones and cables for televisions. That niche does really well for us.
How do you build store brand identity? Through the spring to the end of autumn, our town’s population doubles on weekends. Every week, I’ll advertise in the local newsletter. We also use a lot of social media. We have a Twitter account that’s linked to our Facebook account. We’ve found that customers here like to keep in touch through Facebook. We put up specials and deals and we get a lot of traffic from that. We also offer specials, such as a $10 discount through Yelp. Customers can literally show us the screen on their phone and get a discount.
Michael Ellis
Ellis Ace Hardware Seneca, Ill.
Trends in sales, margins and transaction size? With the summer heat, they’ve slowed down. Otherwise, it’s been a great year. Transaction size has been coming up a bit. Margins
Left to right: John Ellis, Sandra Ellis, David Ellis, Jenny Ellis and Michael Ellis
Paint department at Ellis Ace.
Beisswenger’s Do it Best Hardware
seem to be a little lower. We’ve been selling a little more on promotion, which affects the margin in the long run. We’ve been trying some new sales ideas, such as a progressive sale on limited stock of seasonal merchandise, where the discounts increase with each day of the sale. But if you show up too late, the items may be sold already.
Best niche categories? Bird feeders, power equipment, grills, lawn furniture and concrete statues are all selling well.
How do you build store brand identity? In this area, we’re a popular destination. Other stores and even the big boxes refer customers here. We have cut way back on our circulars, because we weren’t seeing traffic from them. For the first time in 23 years, we’re doing a review process, looking at sales and seeing what’s behind response. We know the market is changing and we’re not sure how to address it.
Pat Maahs
Beisswenger’s Do it Best Hardware
New Brighton, Minn.
Mid-Atlantic
Trends in sales, margins and transaction size? We’ve had a good spring, selling lots of plants and vegetable seeds. And even when there’s a dry spell, we’ll sell hoes and sprinklers. Hardware sales are up.
Best niche categories? Seeds, garden and specialty soils. Feed is an extremely important part of the business.
How do you build store brand identity? We have a couple spots on a local TV show, along with radio and newspaper advertising. We also have a Facebook page and monthly e-newsletter. We want to solve people’s problems. Our staff will help solve customers’ problems, not just show them where the plumbing aisle is.
Any customer stories to share?
One customer purchased a sponge mop and had it a year and brought it back, saying he didn’t like it. So, we gave him a new one. We like to make customers happy and keep them coming back.
Robin Messick Breasure
Bryan & Brittingham Delmar, Del.
Bob Messick Sr., Bobby Messick Jr. and Robin Messick Breasure.
Howʼs Business?
NORTHEAST
Trends in sales, margins and transaction size? Business really picked up in March and we are just slammed right now. We must be doing something right. We’re opening our second location and expanding our current location another 30,000 square feet. Margins are down, but profits are up in most areas, which
is peculiar but I’m not arguing with it. We have a steady 200 to 300 customers a day.
Best niche categories? We’re a full-service lumberyard. One of the main things that separates us from Home Depot or Lowe’s is our drivethrough loading. Here, customers go to the counter, tell us what they want and my guys load the truck. We also have the best selection of bathroom vanities in the city, stocking 100 to 150 different vanities.
When customers think about our store, we’d like them to think “availability.” We have between 200,000 and 300,000 SKUs.
How do you build store brand identity? We deal mostly with contractors, so there’s a lot of word of mouth. We don’t have TV spots. Every year, we give away about 2,000 t-shirts. We also have eight big trucks driving through the city at any given time, sort of like mobile billboards. When customers think about our store, we’d like them to think “availability.” We have between 200,000 and 300,000 SKUs.
Chambers C & R Building Supply Philadelphia, Pa.
Jack
C&R Building team, with Jack Chambers on far right.
Howʼs Business?
Trends in sales, margins and transaction size? This year, we’re running a little ahead of last year. I really can’t explain it, though. We put out circulars eight times this year, so our numbers may be better because of that. We also do better in hot, dry weather. Sales, margins and average transaction size are all trending up.
Best niche categories? We offer several bulk items, from bulk nails in old-fashioned nail bins to garden seed. Customers can buy a thimble full or a gallon. We’ll even break a carton of D batteries if a customer just wants one. We’re easy to deal with and customers really appreciate that.
How do you build store brand identity? We support local high school athletics. And word of mouth really does
a lot for us. We aim to provide the best service anywhere. We want our customers to find what they need and not have to drive an hour across town.
Dusty Lee
Stormer’s True Value
Knoxville, Tenn.
Trends in sales, margins and transaction size? Slow. There’s a sporadic burst of activity for a day or two, then for a couple of weeks it’s very slow. I think the area has been over-built, and things slowed down after the speculative housing market fell and people started losing jobs. Margins and transaction size are about the same as last year, just fewer of them.
What are your best niche categories? Lumber is about 60 percent of our business. Millwork, doors and windows are about another 20 percent, and hardware is about 20 percent.
Archie Smith
Poole Lumber Company
Covington, La.
SOUTHEAST
Trends in sales, margins and transaction size? We’ve had a good spring, but as soon as it heated up, business died. Margins have been a little lower, and average transaction has been up
Dusty Lee and wife Karyn
slightly. It looks like people are spending a little more and getting more product because of the slight improvement of the economy.
Best niche categories? We sell a tremendous amount of flowers and plants, with lawn and garden about 60 percent of our business. Our pool supplies department is very strong. We also offer computer testing of swimming pool water, and that business has been extremely good in early spring and summer. If it weren’t for the pool supplies, our cash flow would be scraping bottom. We’ve been doing pool water testing for four years. It required a $1,200 initial investment, and it was very easy to set up.
How do you build store brand identity? Facebook has been one of the better ways to get the word out. We post weekly new products, along with sales and project ideas. Facebook has done better than print for us. There’s another hardware store in town and a big box about 14 miles away, so there’s a fair amount of competition. We get the edge on our competition by knowing most of our customers by name.
Charlie Hinson
Charlie’s Hardware Locust, N.C.
Charlie Hinson
Garden center at Charlie’s Hardware.
From Tom’s Shop
HARDWARE PRODUCTS REVIEW
By Tom Chasteen
As the economy slowly starts to show signs of improvement and some much needed rain is finally coming to the Midwest, innovative new products continue to make their way through the two-step hardware channel.
PRODUCT #1: WHEELBARROWS | SCENIC ROAD MFG.
Scenic Road Mfg is launching a complete line of heavy-duty wheelbarrows with limited 10-year warranties that come in one- and two-wheel configurations. All of Scenic Road’s wheelbarrows are American made and Amish built in Lancaster County, Pa. These wheelbarrows are really heavy duty and made specifically for demanding jobs in the construction, landscaping and agricultural trades. The polyethylene trays are as much as 50 percent thicker than other wheelbarrows currently on the market and their steel bracing is made of heavygauge steel, not stamped sheet metal. In addition, all of the steel components are powder coated vs. spray painted. What makes these wheelbarrows so dramatically different is how easy they are to roll under heavy loads. The double wheel LJ series of wheelbarrows are rated to carry 800 pounds and are 32" wide so they can fit through a 36" door opening. In the wheelbarrow
we tested, we carried 500 lbs with the same normal amount of effort it would take to move a less expensive wheelbarrow with half the load. The sides are also designed to help eliminate spillage, cutting down on clean-up costs on construction sites. Another key point about these wheelbarrows is that they have added bracing that comes down from the sides of the tray and is attached to the axle on the outside of the wheel, which helps steady the load on the doubletire wheelbarrows. If your customers are looking for an extra heavy-duty wheelbarrow that will hold up under constant hard use, you should take a look at the Scenic Road wheelbarrows. If one of your customers breaks one of these wheelbarrows, they should have used a backhoe and entered their crew in the Olympic weightlifting competition. For more information go to www. scenicroadmfg.com.
PRODUCT #2: LOCK-IN ACCESSORY SYSTEM™ WERNER COMPANY System™, which accessories to be easlasso,
Werner Co. has developed and continues to enhance the Lock-In Accessory System™, which allows different handy accessories to be easily attached to the top of their step ladders. There are currently six different accessories: a job bucket, utility hook, paint cup and paint cup liner, tool lasso, utility
■ A wide range of applications — use it on appliances, chrome, enamel, plastic, teak and wood panels ■ Economical — one step cleans, polishes and protects Easy to use — no rubbing necessary Outstanding results — removes dirt and grease with no residue
bucket and job caddy.
All six of these accessories are great ideas. The job bucket and utility bucket is great for holding bulky items you need when on the ladder or even holding cleaning solutions instead of balancing a bucket on top of the ladder. The tool lasso and utility hook is a great way to hang tools such as a drill, hammer or level, or organizing power cords so they don’t get tangled up around the base of the ladder. My personal favorite is the job caddy, which is great for holding assorted screws and bolts as well as smaller tools like pliers and screwdrivers.
As a retailer, I find the Lock in Accessory System™ makes for a great add-on sale for both homeowners and tradespeople. All of the accessories are extremely easy to attach and remove from the top of the ladder. If you are already selling Werner step ladders it only makes sense to also stock the Lock in Accessory System™ accessories. To see a video click on this link: http://www.youtube.com/ watch?v=nV9n72tzXek .
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From Tom’s Shop hardware products
review product #3:
Black Diamond Stoneworks has launched the Brilliant Lenses™ brand of eye glass cleaning solution.
Just take five minutes and count the number of people who come into the front door of your store wearing either sunglasses or regular glasses. Now multiply that times 12 (there are 12 fiveminute segments in an hour) and then multiply that number by the number of hours your store is open and that will give you a good idea of the potential sales you could have in your store for Brilliant Lenses glasses cleaner. Bill Morrow, vice president of sales, gave me a sample to try and I was truly impressed— it really works. What’s nice about Brilliant Lenses is that it is so compact it will fit easily into your pocket, purse or briefcase and it comes with a polishing cloth. But the best part about Brilliant Lenses, in my opinion, is that it is a consumable. Once
a customer starts using it they will need more, which makes Brilliant Lenses much more than just an impulse item at the checkout counter. For more information go to www. bdstoneworks.com or click here to see a product video.
Inside See America’s
HARTVILLE HARDWARE BY THE NUMBERS
When Howard and Wayne Miller stand on a balcony and look out over the salesfloor of their new 305,000-square-foot
Hartville Hardware store— the largest independent home improvement store in America—the brothers don’t see shelves lined with products but rather the culmination of 40 years of community support in Hartville, Ohio.
By Chris Jensen
Hartville Hardware Unveils Store Full of Innovations
Largest
WAYNE STILL REMEMBERS WHEN they moved from their original 5,000-square-foot store to a larger 22,000-square-foot location in 1974, in the middle of a recession. “We were going to move one day and we didn’t tell anyone or ask anyone, but the community just showed up (on Christmas Eve) with tractors, wagons and trucks and moved us in one day,” he says. “That
Hardware Store
Brothers Howard (left) and Wayne Miller felt the new, larger store was necessary to keep the business strong for future generations of family members.
Click here to view video interview with Howard and Wayne Miller.
shows the type of community we grew up in and the way they’re willing to support us as a family and as a store.”
The community had been looking forward to the new store’s opening with great anticipation, even before ground was broken in November 2010. After all, it was their store.
“We asked our customers what types of things they were interested in seeing
DeAler Profile
in our new store, and we listened,” says Howard, who serves as company president. “That’s why we have six different entryways to make it more convenient for customers.”
Howard and Wayne’s late father, Howard Miller Sr., was a visionary who had purchased 200 acres of land in 1980 with the idea of consolidating the family’s three businesses. It took 32 years, but mission accomplished.
The new home center shares a parking lot with the family-run 80,000-squarefoot Hartville Kitchen restaurant, bakery and gift shop. In back sits the bustling Hartville Marketplace, which houses 100 indoor shops with room for more than 1,000 outdoor flea market booths in season. “This gives us the opportunity to be a true destination place—you can make a day of it shopping here,” points out Wayne, who operates as vice president of the diversified company.
The three businesses were already attracting a combined 2 million visitors annually, so bringing them together can only improve the foot traffic.
A UniqUe Vision
Upper: An 1,850-square-foot “Idea House” was constructed on the salesfloor as a way to showcase design ideas, style trends and home products.
Middle: The Idea House is constructed entirely of Made in USA products.
Lower: About 70 percent of the products featured in the Idea House are in stock and can be purchased the same day.
Hartville Hardware has long been a success story, but Howard and Wayne were not the type to rest on their laurels. Four additions through the years had pushed their store’s old location to about 100,000 square feet, but that seemed to make them too like the big-box stores that kept sprouting up all around them. Their long-term vision, dating back a decade or so, was to develop a truly unique store in Hartville that made them stand out more than the competition.
The Miller family’s business roots date back to 1939, when Howard and Wayne Miller’s grandfather, Sol, opened a livestock auction. The original sign from the auction business was preserved and incorporated into the new store’s design.
They already had a track record of standing out. In the 1980s, before the big boxes arrived, the Millers starting buying tools in large quantities. “We became the place to go for power tools. We have even more competition today, but we repair all the tools we sell and our tool selection is second to none,” Howard points out.
Five years ago Howard and Wayne got serious about traveling around the country visiting best-in-class retailers in and out of the hardware industry. “We went to Cabela’s and saw the big animal
Also on the salesfloor are exterior facades representing four distinct architectural styles found in eastern Ohio. They will eventually house Hartville’s in-house design team.
mountain they had and felt something unique like that would be a marketing tool that made us different from other retailers,” explains Howard. The vision was starting to take hold.
The sluggish economy gave them some pause, but when they started seeing signs of recovery they sprang into action. Ground was broken in November 2010 and the new store opened for business on April 12, 2012. They see their massive store as their family’s statement of confidence in America and its resiliency, as well as faith in their community to continue supporting them.
“It’s important to be tied to the community and to be seen around town,” points out Wayne. “We know our market so we can react quicker to niches.”
“We are a family-owned business and there are a dozen fourth-generation family members involved in the business,” adds Howard. “We realized we had the infrastructure in place to continue the business if we positioned it properly, so that’s why we decided to go for such a large store. This facility gives us the opportunity to be in business for another 50 years.”
Retail innovations
With 70,000-plus SKUs, the new Hartville Hardware has a big edge over the typical big-box assortment of
DEALER PROFILE
Hartville has long been known for its dominant assortment of tools. Leading power tool vendors were told to put together their best, most comprehensive display of tools.
40,000 SKUs. And since half of their 320 employees have been with the company longer than 10 years, they are able to deliver personalized service that no big box can touch. Seven big boxes currently operate within 10 miles of the store, but the Do it Best store now has all the tools in its competitive toolbox to remain a market leader.
“We’ve built our reputation on two things: offering product that you just can’t find everywhere and having knowledgeable employees who can help customers purchase the right product,” says Howard. “We want customers for life.”
Those are two big competitive advantages, but the Millers wanted to do something big and bold. How about building a house on the salesfloor? That would certainly make them stand out.
Upper: Do it Best Corp. President Bob Taylor presented Howard and Wayne Miller with a historical marker honoring Hartville Hardware as the largest independent hardware store in the U.S.
Lower: About a dozen fourth-generation family members are involved in the business, with another generation behind them starting to gain exposure. The family meets each Tuesday to discuss business issues.
Not only did they construct a 1,850-square-foot “Idea House” on their salesfloor, they tracked down enough vendors to ensure the house was built entirely with “Made in the USA” products. Virtually all of the products used and on display in the Idea House are also in stock and can be purchased that day.
“It gives customers a chance to see products in a finished setting,” says Howard, who points out that 30 people have already requested the full house plans.
Jeff Punzel, Owner Punzel Ace Hardware
CLICK HERE TO VIEW MORE PICTURES OF THE NEW STORE
Upper: One of the six separate store entrances leads to the outdoor power equipment department, which features a parts counter.
Middle: About 4,000 square feet is devoted to Carhartt clothing and accessories.
Lower: The drive-through lumber area covers 38,000 square feet.
Howard describes himself as a frustrated architect, but he is also a detail-oriented merchant who finds something to tinker with nearly every time he walks the salesfloor. The Miller family relied heavily on store designers and architects with Interbrand Design and store merchandisers from Do it Best Corp., coming up with innovative merchandising to display the dominant assortments they have in nearly every category.
Here are some of the unique features of Hartville Hardware’s new store:
• Exterior facade representing four distinct architectural house styles prevalent in eastern Ohio: Victorian, western reserve, traditional farmhouse and craftsman. The minihouses will eventually serve as vignettes to showcase in-stock products while also providing space for Hartville’s in-house design experts.
• The original sign from the family’s livestock auction business was preserved and incorporated into the new store’s design.
• Historic 1860s-era log cabin was installed on the salesfloor and is used to house product literature for tool department.
• Daylight harvesting lighting system combines 72 skylights equipped with sensors to detect when natural light is increasing and turning off fluorescent lighting accordingly. This not only saves electricity but creates a more pleasant shopping environment for customers.
• A large glass door was installed on the exterior of the greenhouse, so the space can be
Dealer Profile
converted to selling trim-a-tree and holiday goods in the off-season.
• In the home décor area mannequin walls let customers mix and match samples of back splashes, cabinets, countertops and paint colors so they can get the right look.
• They are the first store to have an innovative touchscreen display and navigation tool from Hillman Fasteners, which helps customers find the location of a specific nail, screw or fastener. They merchandised a lot of products outside at the old location, so the bigger
Upper Left: An intact, historic log cabin dating back to the 1860s is used to house product literature for the tool department.
Upper Right: Hartville Hardware is the first store to have an innovative touchscreen display and navigation tool from Hillman Fasteners, which helps customers find where a particular screw or fastener is located.
Lower Left: A second drive-through area is for feed, salt and other bagged goods.
Lower Right: Instead of carrying a limited assortment and forcing customers to special order products like faucets and vanities, Hartville Hardware focuses on in-stock items.
space enables them to get everything inside while further expanding their assortments. The store receives two deliveries a week from Do it Best, buying between 60 and 80 percent out of warehouse and getting about 20 dropship orders each day.
So far sales are up as much as 20 percent in every category, and ticket sales are up 20 percent at the restaurant, according to Howard, who projects sales of $40 million for 2012.
“We’ve definitely seen what we hoped so far. The community is very excited,” he says. n
By Chris Jensen chris@thehardwareconnection.com
Brand IdentIty BuildBrand Ways to Your Store
It’s a Darwinian struggle for survival in many markets, as independent hardware retailers attempt to retain and grow market share in the face of big-box encroachment and increasing competition from online sellers. How do you get your store brand to stand out in the market?
WHat store branDing really boils DoWn to is this: if customers had to describe your store with just a few words, what would you expect those words to be? Perhaps something like “knowledgeable employees,” “expert service,” “fair prices,” “convenient location” or “carries hard-to-find items.” you need to stand for something—a mission statement put into action—and you need to make sure your store lives up to that every day and with every customer. When customers decide which store to visit to make a purchase, they are picking a brand to support. that’s why
A 29-foot Black Bird greets customers outside Blackbirds in Medford, Ore.
Nutter Hardware in Columbus, Ohio, strives for old-fashioned appeal by parking a fully restored 1948 Ford F150 pickup truck on the salesfloor.
Identity
the execution of a sound store branding strategy often means the difference between being a market leader or a failed business.
Read on to discover six ways to build your store brand identity.
1. Determine perceptions— Ultimately it doesn’t matter what you think your store is good at, it only matters what your customers think. The only way to know that is to ask them.
Renton, Wash.-based McLendon Hardware, which operates six stores, encourages ongoing feedback from customers by placing a customer comment box by the exit. That’s a good method to find out ways to improve your store, but
that won’t help you measure the effectiveness of your store branding strategy. Do exit surveys and conduct focus groups to determine how your customers perceive your store’s prices, customer service, selection and shopping environment. Ask how they would describe your store to others. You may not like everything you find out, but you should be able to identify areas of strength that can be further exploited.
2.
Play up local ties—Independent retailers should tout the fact that their businesses are family-run and locally owned. It is perhaps the most compelling difference between them and the big boxes.
BRAND IDENTITY
When customers come into Zettler’s Do it Best Hardware in Powell, Ohio, they see signs that proclaim “Family owned and operated with pride since 1886.” Old family photos line the walls. “Our family business has been part of the community for a long time and it makes sense to remind people of that,” notes owner Mike Zettler.
Retailers should also remind customers of the importance of keeping money in the community, according to Simon Shapiro, owner of TAGS Hardware in Cambridge, Mass. He cites statistics that show for every dollar spent at a local business, 68 cents stays in the community, compared to
just 43 cents for every dollar spent at a chain.
Shapiro co-founded the Cambridge Local First movement in 2005, which now has more than 320 members. “There are a lot of people here that acknowledge shopping local is a positive thing,” he says. “The economy has made people pay more attention to where they spend their money.”
Ace retailer Gina Schaefer is getting ready to open her eighth and ninth urban stores in the Washington and Baltimore markets, a successful business built upon the idea that people want to shop where they live. Each store takes on the name of its
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Zettler Do it Best Hardware in Powell, Ohio, promotes the family’s long ties to the community.
neighborhood—Federal Hill Ace or Tenley Park Ace, for example.
Schaefer uses social media to connect with customers within six blocks of her stores, encouraging them to get
involved in community projects and keeping her store top of mind.
The threat of the big box is never going to go away, Schaefer admits, but independents need to capitalize on the growing national trend to buy local.
“Think Local First helps communities get started to promote local business,” says Schaefer. “You’ve got to be willing to fight for the business.”
3. Focus on service—Just about all independent retailers consider their greatest strength to be the great customer service offered by their knowledgeable employees. The majority of them do not have a formal training program, so what they really mean is that when they are on the salesfloor
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BRAND IDENTITY
they feel confident that they can personally deliver great service. Or perhaps Bob or Karen can, but Jim or Nancy—not so much.
Let’s say you are a retailer with two excellent long-time employees who know everything, two employees who can be a little surly if you catch them on the wrong day and a young kid who was recently hired and has never tackled a DIY project on his own. If a customer walks into your store, they have about a 40 percent chance of receiving excellent service. Worse, this means the majority of your customers are likely to receive less than exemplary service. You will stand out for your service alright,
but not in a positive way that keeps customers coming back.
If you want to brand your store as the place to go to receive excellent service from knowledgeable employees, then you need to take steps to ensure that happens. You need to develop and implement a formal and ongoing training program for all employees that covers product knowledge and selling skills, communicate how you expect each and every customer to be treated, provide incentives for delivering exceptional service and weed out any team member who is unable or unwilling to meet the highest standards of performance.
Dave Warren of Dave’s Ace, with two stores in Wisconsin, puts his money where his mouth is when it comes to service. Not only has he graduated from Dale Carnegie’s human relations and public speaking course, he pays for all his full-time employees to take the course as well. That’s how you get your store’s service to stand out.
4.Find creative ways to stand out—When Chuck Nutter opened Nutter Hardware a year ago in Columbus, Ohio, he wanted to re-create the classic hardware store that marries the best of modern technology with oldfashioned customer service. Customers
Hartville Hardware in Hartville, Ohio, features an unmatched selection of name-brand tools.
are greeted by a fully restored 1948 Ford F150 pickup truck on the salesfloor. “We’ve also got a potbellied stove, because we want to serve as a community gathering place,” Nutter says.
Brand identity
Nuthouse Hardware in New York City differentiates its business in a bold way—the store stays open 24 hours a day so its customers have somewhere to go when their toilet breaks at 1 a.m.
Gladieux Do it Best Home Center in Oregon, Ohio, features a massive Train Depot that appeals to kids and adults with five separate loops of track fully landscaped along with an impressive inventory of trains and accessories.
Blackbirds in Medford, Ore., has focused on being the “men’s toy store.” In addition to a full selection of hardware, the store offers home brew and wine-making supplies; hunting, fishing and sporting goods; and a seasonal ski and rafting shop.
Blackbirds has also gained notoriety for the 29-foot Black Bird that stands sentry in its parking lot. Made of rebar, hog wire and fiberglass, The Bird gets decked out for special occasions such as a Santa hat and candy cane at Christmas.
5.
Offer superior assortment in select categories—No big box can match the massive tool department of Hartville Hardware, which offers premium brands you can’t find elsewhere, hard-to-find woodworking tools and full assortments from virtually every major power tool vendor. Hartville’s semiannual week-long tool sales attract tens of thousands of customers from as far away as 250 miles. No local retailer, big
box or otherwise, can touch Hartville’s selection of tools.
Southaven Supply in Southaven, Miss., has a huge display of door knobs and 1,200 different cabinet knobs.
Owner Kerry Loosier also operates The Outhouse, an adjacent business that features 400 different glass, copper and stone sinks and over 140 sink vanities in stock. Whether it’s a unique copper bar sink or a decorative glass vessel, Loosier has something for everyone. “You have to experiment a little, but the rest just comes from offering a big selection and adjusting to what you learn from customers,” Loosier says.
Lehman’s Hardware in Kidron, Ohio, sells to customers in all 50 states and all over the world with an eclectic yet dominant assortment of old-fashioned, highquality merchandise. Lehman’s specializes in authentic products that customers can’t find anywhere else. The store has an entire room devoted to oil lamps including shades, wicks, mantles, pieces, parts and lamp oil. The Stove Room features a big selection of antique wood stoves and old-fashioned ice boxes.
“We know we can’t compete with the big boxes on price, so it’s all about the brand,” says Glenda Lehman Ervin, vice president of marketing.
6. Communicate a consistent message— If you determine that your store’s unmatched selection of plumbing supplies is your competitive
advantage in the market, then make sure you promote that fact in every marketing and advertising message you disseminate to customers. Play it up on your website and hammer the point home in your postings on Facebook— Acme Hardware is the place to go for plumbing supplies.
Used properly social media can help retailers form a closer bond with customers, but don’t forget the important role played by websites.
“You should focus on making your own website the hub of your communication strategy. Use all the other methods (like Facebook) to repurpose your content, but make all efforts to get your fans to frequent your own website for that content,” says Andy Darnell, manager of marketing and communications for Howard Brothers in Duluth, Ga.
“The true fan base will gather there. Even if they don’t come daily, much like your physical store, they’ll come back
Customers of Nuthouse Hardware in New York City know they can visit the store to take care of their DIY problem no matter what time of day—the store never closes.
just to see what is going on. At the same time, you’re building content that will organically bring new eyeballs to your site and brand. Consistent growth is the target,” Darnell adds.
Darnell believes hardware retailers can learn lessons by looking at how Apple developed a world-class brand. “What you can be assured of is that Apple built their system from the ground up. It is implemented everywhere. You could work for an Apple store and walk into any other Apple store and jump in and help. The Apple brand and vision is top down. Apple wasn’t created by committee. Its vision was cast clearly by a small group. It was reinforced over and over again by that same group.”
Not everyone can be like Apple, but if you pay more attention to how you communicate your store brand in words, actions and store environment, then you too can start building a brand that customers admire. n
By John Franklin
When Devising Cost StrategyPricing Forget the
Many retailers believe the value of their inventory is actually based on the cost they paid for each item. The IRS and your accountant would probably agree. The real truth for a retailer is somewhat different. The true value of your inventory is actually not based on what you paid for it, rather it is based on what you can get for it. As you work to keep your inventory clean and fresh and relevant to your customers’ current shopping patterns, consider the following idea.
Keim Lumber in Charm, Ohio, has a Bargain Nook that displays more than 1,000 items that have been discontinued, closed out, returned or scratched/dented.
Suppose you bought 100 shares of XYZ Company stock for $10 a share. A month later, rather than going up, the value then falls to $8 a share. You know there is very little chance that the value will ever return to even $10 a share.
What would you do? Would you hold on to it hoping for a miracle? Would you save it for later thinking that you just can’t sell something for less than what you paid for it? Or, would you bail on it right away and put your money into
bottom line
something else that you had a better chance to get a positive return?
I hope most of us would do the latter, bail now and reinvest the money in something better. The critical point here is: you must think of your inventory as if it were your 401k and react the same way.
If you have problem merchandise tying up your space and inventory dollars, you must work to get it reduced. If you look at your inventory a slightly different way, you may be able to take care of your problems with less stress. Consider the following point, which is one of the most important concepts I have ever encountered in retail:
Once you have paid for an item the cost you have paid for that item is no longer actually relevant to you as a retailer. Your job as a retailer is to get as much for every item in your store as you can. If you can sell an item for more than you paid for it, great, and you should consider buying more of them. However, if you ended up selling an item for 75 percent, 25 percent or even less of what you paid for it, and if that is the best you could do, then that is still great. Just do not buy any more of them.
With all slow sellers or old merchandise, get the best you can get, get it now and then reinvest the money in something that will allow you to sell it for more than what you paid for it. Whatever you do, do not save
old merchandise or store it for some future miracle.
Yes, selling an item below cost is still important to your computer and your accountant, but, they both work for you, not the other way around. If you sell a small percentage of your items below cost, you can still be very successful. If you sell too much below cost, your accountant will be concerned for his job and probably say something to you.
When you start thinking of your inventory as if it were your personal 401K, it forces you to make hard decisions. If you have some under-performing inventory, get to work and get rid of it as soon as you can. The value only drops if you wait.
React to poor investments quickly and get them exchanged for good investments. Old merchandise should be liquidated on a consistent and timely basis. Many large retail chains liquidate their problem goods this way. It takes the emotion out of the issue and it takes cost out of the issue. At some point you may get below cost, but you keep on going until it is gone. n
John Franklin has 40 years of experience in hardware retailing, most recently as merchandise manager at Williams Lumber & Home Centers in upstate New York. Contact him at john@thehardwareconnection.com.
hardlines digest
By John Fix III
Developing a Social MeDia Game Plan
Summer heat is gripping most of the country, providing opportunities for some dealers and challenges for others. Despite the sticky weather, dealers found time to join the discussions on Hardlines Digest and tackle some sticky issues.
Facebook best Practices
Social media continues to be a hot topic on Hardlines as stores try to figure out the best way to use various online forums and advertising opportunities. Melissa Brett of Welden Hardware in Connecticut wanted to know how other retailers are using their Facebook page, how many likes they have and if they are pleased with the response they’re getting. “We average 800-900 customers a week at our store, but only 109 likes on our page and very little feedback on it,” Brett said.
Mickey Thurman at Levee Lumber explained how they maintain their presence on Facebook. “I admin several pages besides the two for our business. I constantly keep up to date, as best as I can, with advice columns by organizations such as Hubspot and Mari Smith, along with the Facebook for Business page. We have a lumber store and a pet store page.”
Levee Lumber conducted a haunted pumpkin contest on Facebook, using a pumpkin decorated entirely from store items.
So what has Thurman learned?
“About one out of ten posts should be focused on selling. The rest? Be creative, post jokes, comments from customers, share local stories, photos of projects, employee photos and features, offer specials (drawings on those who ‘like’ the post), etc. It takes a lot of brainpower,” he noted.
“At our pet store, our most recent post, which received a lot of interaction, was of our pet store dog celebrating his birthday. He had a sign on his neck that said “I’m 4! All the other employees get a cake. I get this stupid sign to wear around my neck.”
Thurman added, “I look at other business pages and see what they do, and get ideas from that. Facebook is
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about keeping in touch with people and being part of the community, so that they remember you when they’re out shopping for whatever it is you sell. It’s just trying to find the best way to be part of that without posting sales-related posts constantly.”
Aaron Hagen of M&D Supply offered his perspective. “We use ours pretty regularly. We started aggressively posting around the first of the year. When we post it is mostly info, pictures will always bring more feedback than text. We really do not actively push direct sales with Facebook. We remind them of in-store sales, community things we are involved with and
letting them know we have merchandise during times of need like drought, flood, extreme heat, etc. I found that once you get past a certain number of likes it starts to take off on its own. Get your employees involved by telling them to invite friends, and have them interact with your page. Liking a vendor’s page is a good way to increase likes as well.”
Brandon Buckalew from Hardware
Hank in Minnesota posted a detailed description of his Facebook thoughts. “We have about 2200 likes. I had staff shirts made up that have a Facebook theme. All of my TV and radio commercials mention the Facebook page.
I have Facebook logos and addresses on all of my circulars. I get plenty of feedback on it as well. I try and post on it at least once a day. And I try and post something that might be ‘Trending on facebook,’ so that everyone sees it. I posted Help Wanted on it and for awhile half my staff were a result of it.”
Very rarely will Buckalew push a product on Facebook. “If I go out to eat at a local restaurant that has a Facebook page, then I’ll like their page and then I’ll tag them in a post saying, ‘Had Lunch at the Blue Moose today and it was great.’ Now all of my fans and all of the Blue Moose’s fans see the post. I’m a fan of a lot of pages that will
Hardware Hank in East Grand Forks posted this picture on its Facebook page.
post stuff that I can ‘Share.’ The more a post is shared the more of your fans will see it,” he posted.
“I also have run a few contests, giving out movie tickets to whoever could guess what an Excel formula does or if they could guess what I took a picture of. I keep an eye on the local newspapers and when they post a positive article, I’ll share it. Shared an article about a kid going to state for something, and his mom thought the world of it, almost had tears in her eyes
hardlines digest
when she thanked me. Needless to say, they shop here for everything they can now,” Buckalew added.
Lex Stevens of Back Bay Hardware in Boston pointed out some of the changes in Facebook. “Three things that I have found—or that have changed—in Facebook are the ability to schedule posts, the Use Activity Log (under the edit tab) and Insights (under the settings tab).”
He added, “The ability to schedule makes all the difference to me. If I can stay a week or two ahead, I am much more likely to keep up with it. The Use Activity Log allows me to see what I have scheduled and what the post is going to look like. If I don’t like the way it looks, I can cancel the post and redo it, or I can move things around if I find different content. I am still coming to understand the Insights section. The most important piece of information I have gleaned so far is that my main demographics are men ages 35-44 and men and women ages 45-54.”
Taking suggestions from Facebook experts, Stevens is currently trying to post three times a day, at 6 a.m., noon and 9 p.m. “I am testing a how-to in the morning, a community event at noon and a video link in the evening, either informational or humorous.”
Facebook now has the ability to advertise by zip code, which Stevens has always wanted to do. “In my dense, urban area, I think that may work to
my advantage. I currently have budgeted $10 a day, focusing on my two main demographics and different ads for my secondary demographics. The average bill has been about $30 a week for 30,000 impressions. I am only getting about one click through per day, and I am testing different ads to try to improve that.”
One thing that Stevens has always noticed with social media is that when he fiddles with it people take notice. “I am hoping that if I can manage it in a consistent way, I will build a larger following whom I can direct to my web page.”
employee purchases
Kenneth McRae of McRae’s Hardware in Dallas asked what company policies other retailers have concerning employees making personal purchases from the store.
Ed Tisdale from Cape Coral, Fla., has specific procedures in place. “Our policy is that the purchase must be made immediately before clocking in or after clocking out. The product must be immediately taken to the employee vehicle for storage. No employee, including the manager, is allowed to ring up their own sale. No cash sales allowed, everything must be on the employees’ in-house charge account. Any returns must be accompanied by the purchase receipt.”
Tisdale doesn’t allow cash transactions, because he wants to be able
to easily look up any potential suspected charge purchase. “A dishonest employee could pick up a thrown-away cash receipt and steal the product, then return it for cash, he said. “Also, this allows our Epicor system to matrix price employee purchases at cost plus whatever percentage you may desire.”
Mickey Thurman of Levee Lumber posted his procedure. “We have cash or charge accounts for all employees, and they must use that account for tracking purposes. They are not supposed to ring up their own sales.”
David Jolly shared how Metzger’s Do it Best handles the issue. “We have an employee account that calculates the discount (a cash account that is shared by all employees, since we don’t allow employee charges except under special circumstances.) We attach the employee’s name to it as a PO, so we can go back and track purchases if we need to. Purchases are off the clock, straight to the car, except for snacks and drinks at breaks, which must be paid for immediately. No one is allowed to ring up their own sale.”
David Verhagen of Foxland Hardware does not have employee charge accounts. “I had people quit while owing money and other problems. Do not lend money to employees or most family members—just makes for bad endings,” he advised.
“We set up a cash-only account that we applied employee pricing discounts
to with a Category Pricing Plan named Employee Benefit Pricing. Every time a purchase is made the employee is reminded that this is another benefit of working for us,” Verhagen added. “We are able to require approved users for the account that appear on each transaction. Every purchase can be viewed by clerk and purchaser. Our biggest concern has become enforcing purchasing done for family and friends, but Quick Recall viewers are a powerful monitoring tool for the actual purchases.”
Tony Gaughan of Clement Hardware in Maryland shared his employee discount structure. “What we do here is offer two different types of discounts. Anything special order from our RSC is 10 percent above cost and anything from an outside vendor is also 10 percent above cost plus freight. Also, we offer 30 percent off regular retail on everything in stock except power tools.”
These are just two of the topics discussed during the past few months on Hardlines Digest. To read more or subscribe head to www.hardlinesdigest. com. Hope to see you on the list. n
John Fix started the Hardlines Digest in 1996 and continues to run the servers out of his hardware store in Eastchester, N.Y. There are currently over 2,500 subscribers to Hardlines Digest. To read more or subscribe go to www.hardlinesdigest.com.
The two Open Dialogue sessions are a chance for retailers to speak out about topics of concern and share feedback directly with vendors and distributors.
TBringing the Industry
he Hardware Conference is where lasting relationships are formed, both on a business and personal level. The 2012 Hardware Conference, set for September 7-9 in Marco Island, Fla., represents the 24th edition of bringing the industry together to strengthen the twostep channel of distribution.
COME RELAX IN A COASTAL ATMOSPHERE among cocktails with friends, worldclass dining, golf and more at the fivestar Marco Island Marriott.
Tom and Dale Chasteen, who operate a hardware store in the Florida Keys, have been putting on The Hardware Conference since 1988. It is the industry’s largest gathering of independent retailers, who, regardless of wholesale affiliation, come together to discuss ways to improve their business and grow sales/ profits in the face of competition. Lasting memories and friendships are made,
HARDWARE CONFERENCE
Together
and attendees return to their stores with lots of new ideas to implement. Share Ideas. Connect and share with retailer colleagues and more than 60 vendors as we explore ways to increase sales, increase profits and gain market share. Discuss new products and packaging by the pool or during the two days of open dialogue sessions.
Connect with New Friends. You simply cannot develop a strong relationship with someone without seeing the sincerity in their eyes and feeling the firm grip of a sincere handshake.
The Marco Island Marriott is a world-class resort located directly on the beach.
Ask yourself when was the last time you stepped away from your store to reflect and think of ways you might be able to improve your business? Why
Tom Chasteen, who is a third-generation hardware retailer, has been conducting The Hardware Conference with his wife, Dale, since 1988.
not capitalize on the chance to talk with other store owners who live with the same issues that only another owner understands?
“The event provides a unique platform for the exchange of ideas between retailers, manufacturers and wholesalers,” says Myron Boswell, Orgill’s vice presidentdealer sales. “The event truly lived up to its billing as the place ‘Where Relationships are Formed.’ The open dialogue sessions
hardware conference
Dealer Testimonials
“Dealers, vendors and wholesalers get together to discuss a variety of issues pertinent to our industry. The Marriott is located on a beautiful, white sand beach on the Gulf of Mexico. The facility is wonderful and very affordable. The meals are superb and the entertainment outstanding. Saturday afternoon there is golf, shelling or beach party all provided by vendor sponsors. Hope to see a lot of the Hardliners there.”
Bill Zeithammer
Isles Do it Best Hardware Punta Gorda, Fla.
“The Hardware Conference is a great event. We’ve been going since the start. The open discussions between store owners and vendors gives some great insight into the industry as a whole. It is a very comfortable setting where vendors and owners from Ace, True Value, Do it Best and Orgill talk openly. There are some great vendors as well. The deals are good and the Saturday night auction raises money for the
Miami Children’s Hospital. For the past two years there has been a meeting of Hardliners. It has been nice to be able to place a name to a face. I look forward to the Conference each year. Hope to see even more Hardliners there this year.”
Rick Heuser Handyman Hardware St. Cloud, Fla.
“My wife and I attended for the first time last year and had a wonderful time. The resort is beautiful, the hotel price is at off-season rates and a bargain, and meeting dealers and vendors in a relaxed setting without the buying focus of a market allows time to exchange ideas and suggestions. There is also an Epicor education session prior to the Hardware Conference, so those of you with Epicor systems can get more bang for your travel buck by learning some new techniques to make better use of your system.”
John Fix III Cornell’s True Value Eastchester, N.Y.
a growing community of thousands of independent
tips from fellow retailers delivered fresh daily to your email inbox
“I created Hardlines Digest in 1996 as a way for my fellow retailers to swap tips about the nitty-gritty of running an independent hardware store. Today, it’s grown to a community of thousands of independent hardware store owners just like you. I hope you’ll join today and start sharing your own expertise.”
John Fix Owner, Cornell’s
Hardware Eastchester, NY
hardware conference
were interesting to witness. They afford a unique insight into the mindset of hardlines retailers,” he adds.
Leading industry vendors participate in the Conference with tabletop booths showcasing their product lines, and dealers get a chance to have informal dialogue with manufacturer executives without feeling pressured to buy. On Saturday night all the booths are auctioned off to raise money for the Miami Children’s Hospital Foundation.
“You have the opportunity to see new products, talk to other dealers and learn from both dealers and vendors in a very relaxed setting,” says Rick Heuser of Handyman Hardware in St. Cloud, Fla.
Ace, True Value, Do it Best and Orgill all participate in the event in support of their retailers. The Conference is designed for the whole family, with plenty of free time for fun activities such as golf, sailing, shelling and walking on the beautiful sandy beach.
For one low fee, dealers will be able to attend the Epicor training seminar Wednesday and Thursday and then stick around through the weekend to participate in all the events and activities of The Hardware Conference. In addition to a cocktail reception on
Left: Dealers can learn about new products from leading vendors without the pressure of ordering since it’s not a buying show.
Center: Dealers have plenty of opportunity to mingle casually with retailers from around the country.
Right: There is plenty of time for one-on-one dialogue with vendors in a relaxed environment.
Wednesday evening, those participating in the Epicor event will be offered lunch on Wednesday as well as breakfast and lunch on Thursday.
Those in the industry who participate in the Hardlines Digest message board will again be gathering on Thursday at 4:30 p.m. to share ways to improve that important industry resource and discuss industry subjects. Hardlines founder John Fix III, who attended his first Hardware Conference last year, will be attending the event again this year. It is a good chance to meet and get to know in person those names we see on our computer screen. After the meeting there is the All-Industry Cocktail Reception, where everyone can connect with new friends.
For more information on attending the Conference or to register, call Tom or Dale at (305) 853-0049 or go to www.thehardwareconference.com. n
SCHEDULE OF EVENTS
Wednesday, September 5
Vendor Only Meeting . . . . . . . . . . . . . . .
. . . . . 10:00 A .M . - 3:00 P.M .
Epicor Training Seminar 12:00 PM - 5:00 PM
Epicor Cocktail Reception 7:00 PM - 8:30 PM
Thursday, September 6
Epicor Training Seminar 7:00 A M - 4:45 PM
Vendor and Dealer Registration 9:00 A M - 12:00 PM
Wooster Brush - Day at the Beach 12:30 PM - 4:30 PM
Hospitality Suite Open 1:00 PM - 5:30 PM
Minwax Shelling Trip 2:30 PM - 4:30 PM
Kids’ (ages 4-12) Night Out 6:15 PM - 10:30 PM
Cocktail Party 6:15 PM - 7:15 PM
Dinner Party and Auction 7:15 PM - 10:30 PM
Hospitality Suite Open
Sunday, September 9
Breakfast
Marquee Sponsors
The Hardware Conference would like to thank and recognize its Marquee Sponsors for their support over the years It is with their cooperation and that of all of our sponsors, vendors and retailer attendees that The Hardware Conference has become the largest annual dealer event in the hardware industry The following companies are Marquee Sponsors of this year’s event:
10:30 P.M . - 11:45 P.M .
7:00 A .M . - 8:00 A .M .
Exhibit Areas Open 8:15 A M - 10:00 A M
Open Dialogue 10:15 A M - 11:30 A M
Closing Remarks 11:30 A M - 12:00 PM
Software Corp . Gilmour
Hardware Connection magazine
Hillman Group Krylon Miami Children’s Hospital Foundation Skil, div. Robert Bosch Tool Corp
Wooster Brush Company
CATEGORY REPORT
LAWN & GARDEN / OUTDOOR LIVING TRENDS
Sales of Repellents
(Independent Hardware Channel)
12 Months % Change vs. Year Ago Repellents:
Unit Sales Breakdown in Repellents
Total of 460 Items with Sales
Source: Vista Information Services, div. of Epicor Software Corp.
Manufacturers and retailers use Vista’s retail POS and Consumer Panel data to better sell to their customers. Go to
Gertens in Inver Grove Heights,Mich., grows the majority of the goods it sells.
LAWN & GARDEN / OUTDOOR LIVING BUYING UPDATE
■ Vertical gardening systems enable homeowners to grow plants and herbs in a decorative manner inside their kitchen, or on trellises, balconies and walls outside.
■ Outdoor areas have become an extension of homeowners’ interior decorating, with careful attention paid to furniture, statuary, accessories, yard art and related products to add comfort and style to outdoor gatherings.
■ Ornamental trees and shrubs with vibrant colors are in demand this year.
■ Plant and flower containers that have a distressed or aged look are in style.
■ With drought conditions affecting many areas of the country, more consumers are turning to rain
Intown Ace Hardware touts itself as offering the best selection of herbs and perennials in Atlanta.
Holdridge Home & Garden Showplace in Ledyard, Conn., is celebrating 100 years of ownership by the Holdridge family.
Customers can’t miss the large outdoor living department when they walk into Hartville Hardware.
Popularity of Landscape/Garden Elements (Percent rating popular or somewhat popular)
Source: American Society of Landscape Architects
sensors and micro-irrigation systems, using rain barrels to collect and redistribute rainwater and redesigning landscaping to incorporate drought-resistant plants.
■ 50 shades of gray is not just a reference to a popular book, but also an apt description of the emerging color of choice for patio furniture, especially charcoal gray.
■ Resin wicker patio sets are growing in popularity for their combination of durability and low maintenance. ■
Three Fountains Ace Hardware in West Columbia, S.C., features a large garden center.
Fountains and water features are prominently displayed at Cole’s Home Solutions in Millington, Tenn.
Zettler’s Do it Best Hardware in Powell, Ohio, features a cistern system that captures rainwater to water the plants in the garden center.
Colorful garden pots and containers are on display at Keim Lumber in Charm, Ohio.
Customer Loyalty –
Is a Rewards Program for You?
Back in the “Good old days,” if you were to sell a business, a part of the purchase price was a thing called “goodwill.” The “goodwill” was considered part of the value of the assets when a retailer sold his store.
Today when a business is purchased, there is not much value, if any, placed on “goodwill.”
Which brings up an interesting point: is there such a thing in today’s world as customer loyalty? Are customers just looking for the best price? Customer loyalty is a totally different animal than the concept of goodwill. Rewards programs are everywhere we look at grocery stores, gas stations, drug stores and restaurants. There are many different ways to offer a customer a reward. It could be buy 10 cups of coffee and get one free, or spend $100 and get a certificate
By Fred Fischer
Fred Fischer is president of Ganymede Technologies Corp., which markets the J3 Point-ofSale system. You can contact Fred at fred@j3pos.biz.
for $5 off your next purchase of $20 or more. The reward options a dealer can offer are only limited by his creativity.
Why should a retailer consider a rewards program? Some express concern that they would be giving away their profit, which might be a valid argument. You can make the same argument about spending money on advertising. Quit advertising and save that money. Not a real good idea for the future success of your business.
One of the difficulties in today’s media world is how do you get information to your customer?
In many small towns the local newspaper is thin and newsprint circulation continues to shrink. Direct mail is expensive and we all know about the financial mess the post office is experiencing. So, how do you get information to your customer?
The current trend is social media. You are reading this article in a magazine format that is electronic—they do not even print a copy of the publication. There is email, Twitter and Facebook and other new ways of making contact with your customer. However, to make these programs work you need contact information about your customers.
Customer Loyalty – a relationship between the business and the customer where the customer returns more, spends more and promotes the business more; most likely due to a program that keeps the customer happy, resulting in more business. Typically, a rewards customer will generate higher average monthly purchases of between 30 percent and 50 percent or more.
The easiest way for you to increase your sales is from your existing customer base. If you offered a rewards program and had 1,000 members and each individual only spent $30 more per year (which could be as little as one additional shopping visit), that amounts to an additional $30,000 in annual sales!
The most compelling format is an instant program. By instant, meaning the customer receives the reward at the time of sale, at the end of the receipt. As an example, a program that offers a point for every dollar spent, and when the customer reaches 100 points they get a certificate that is good for three
weeks from the date of issue. The customer receives $5 off their next purchase of $20 or more.
The coupon prints at the time of sale as part of the receipt. Your employees can make your customers aware that they have reached a reward level. The customer gets instant gratification and recognition. There is an expiration date, barcode and the customer name is printed on the certificate. This increases the urgency for the customer to return to your store, soon. When the certificate is used, it is invalidated. You see this type of program in convenience stores and drug stores, and it is very big in the grocery industry.
Other options are coupons that can be mailed to the customer when they reach their benchmarks. Or they can apply points to future purchases. Rewards customer can get special pricing on certain items in your store. To get that special pricing the customer must be a reward member. The key is to create a sense of urgency for the customer to return to your store.
The really big value of a rewards program is the data you can track. You really get to know a lot about your customers. A good loyalty program will help you identify customer spending habits. In addition, as part of your customer sign-up process you can get specific data such as customer names,
addresses, phone numbers, email addresses, birthdays, hobbies and other information that you can use for future marketing. You can then identify customers to promote specials, closeout items, new arrivals and special events, as well as extend special pricing just for your rewards customers.
Equally important is that you can identify your best customers (dollars spent) and identify which ones are using the rewards certificates and taking advantage of your specials. Facebook, Twitter and email marketing programs like Constant Contact all give you affordable ways to let your
customers know more about you and your store. As you face additional challenges on how to get more store information to your customers, a rewards program is a proven marketing tool.
What’s nice is that customers are already conditioned to use rewards programs. Many of your fellow retailers have already pioneered the way. Look in your pocket or check with your family members and see how many key tags are on their key rings. A customer loyalty program works. Make the investment and take the plunge. Then you can reap your own rewards as a retailer! ■
Modular means flexibility...
IN THE NEWS
NEW STORES:
■ Costello’s Ace Hardware held a grand opening for its new store in Great Neck, N.Y., June 8-10.
■ Gina Schaefer and Marc Friedman are getting ready to open two new stores, Canton Ace Hardware in Baltimore and Woodley Park Ace Hardware in Washington, D.C.
■ Central Network Retail Group has opened a new NFL Home Center in Gautier, Miss.
■ Koopman Lumber has acquired Westboro Paint & Decorating in Westborough, Mass.
■ Tom Anderson, formerly the manager, is the new owner of Adams Lumber Company in Madrid, Neb.
■ Nick Redfield has opened Neighborhood Ace
Hardware store in Sylvania, Ohio.
■ Don Disbrow and Jason Biondo have opened their second Antique Lumber Company store in Wainscott, N.Y.
■ Brett and Steve Feller have opened Brett’s True Value in New Windsor, N.Y.
■ Northwest True Value is planning to open its seventh store in Ridgeway, Va., in early 2013.
■ Blaine Ace Hardware has reopened under new ownership in Blaine, Wash.
■ Mike Tyksinski is the new owner of Frenchtown Home & Hardware in Frenchtown, N.J.
■ Davis Ace Hardware is opening a second 3,500-square-foot store in Davis, Calif., called Aggie Ace that utilizes Ace’s new “Express” format.
KUDOS TO:
■ The Fausel family celebrated the 160th anniversary of Placerville Hardware in Placerville, Calif., which bills itself as the “oldest hardware store in the West.”
■ LaValley Building Supply, with 10 stores based in Newport, N.H., is celebrating its 50th anniversary in 2012.
■ David Brewer of Brewer’s True Value Hardware in St. Peters, Mo., was honored with the Show-Me Heroes Flag of Freedom award from the Missouri Economic Development Department for his commitment to hiring veterans and national guard reserve members.
Brewer’s True Value
■ Mead Clark in Santa Rosa, Calif., is marking its 100th anniversary this year.
■ Lakeside True Value, owned by Steve Fafoglia in Springfield, Ill., is celebrating its 60th anniversary.
■ Andy Grant’s Ace Hardware store in Norwich, Conn., is turning 100 years old in 2012.
■ Stan Kuenning, coowner of Western Ohio True Value in New Bremen, Ohio, received the 2012 Excellence in Business Award from New Bremen’s Community Improvement Corporation.
■ Third-generation owner Gene Pedrotti is celebrating 90 years of business at Pedrotti Ace Hardware in Benicia, Calif.
■ Schell Lumber Home Building Centre in Stouffville, Ontario, is celebrating its 90th anniversary.
Schell Lumber Home Building Centre
PEOPLE ON THE MOVE:
■ Ace Hardware Corp. has hired William Guzik as chief financial officer.
WHOLESALERS IN THE NEWS:
■ House-Hasson has unveiled a new dealer website, eToolbox.net, which uses the latest technology to facilitate online ordering.
■ Ace Hardware Corp. has introduced a redesigned version of acehardware.com that features new functionality designed to enhance the consumer’s online experience, prominently featuring product reviews, tips and advice, store locator, enhanced “My Store” pages and Ace’s “Red Hot Buys.”
■ Do it Best Corp. has broken ground on a new Retail Service Center (RSC) in Sikeston, Mo., that will serve members
in 11 states when it opens in 2014. The 550,000-square-foot facility will replace a smaller RSC that Do it Best has operated in Cape Girardeau, Mo., since 1971. The new distribution center will feature stateof-the-art technology including a voice pick system.
Do it Best President Bob Taylor at Sikeston groundbreaking.
■ True Value Company has signed a new three-year agreement with Epicor Software Corp. continuing their endorsement of Epicor’s Eagle® pointof-sale system.
■ Long-Lewis Hardware in Birmingham, Ala., is celebrating its 125th anniversary this year.
■ Ace Hardware Corp. has launched a new “Express” format designed for stores
William Guzik
under 5,000 square feet. “At this time, there are nearly 400 successful Ace Hardware retail locations operating with less than 5,000 square feet, and the consistent high performance of these stores proved we had an incredible opportunity to create a specialized, smaller-format Ace retail model,” said Mike Berschauer, Ace’s director-retail development.
“Before opening an ‘Express’ format Ace Hardware, I had to refer my paint customers to a hardware store at least 20 minutes away,” said Paul Leahey, owner of Schuele Ace Hardware and Schuele Paint Company in Buffalo, N.Y. “We’re now essentially a one-stop shop.”
Schuele Ace Hardware
OTHER NEWS:
■ RONA Inc. has opened a new generation, 5,400-square-foot satellite store in Calgary, Alberta, the first of 10 smaller-format stores it plans to open in the next 18 months.
■ Alpine Building Supply has reopened in Reedsville, Pa., after suffering extensive fire damage in January.
IN MEMORY:
■ James “Jim” Stone, who founded Stone’s Home Centers in 1959, died June 7 at the age of 94. Stone’s Home Centers now operates nine stores in Georgia and Florida. Stone was known for the friendly phrase he used in many of the store’s commercials over the years: “There’s a Stone’s Store Near You!”
GET THE FULL STORY:
■ Seattle-area man tried to burn down a Home
Depot store because it was driving his friend’s hardware store out of business. Click here
■ See what goes on at Nuthouse Hardware, a store in New York City that is open 24 hours a day. Click here
■ Worden Lumber goes after former bookkeeper who embezzled $150,000. Click here
■ Visa, MasterCard and a number of major banks have agreed to pay $6 billion to settle an antitrust lawsuit with retailers regarding credit card interchange fees. Click here
■ The Supreme Court’s decision to uphold President Obama’s Affordable Care Act has far-reaching ramifications for retailers. Click here for status of health insurance exchanges in states.
■ Click here for a research crib sheet from the National Federation of Independent Business on the impact of healthcare reform.
AUGUST
Ace Hardware Corp. Fall Convention
August 16-18, McCormick Place, Chicago
Bostwick-Braun and Southern Hardware Fall Market
August 9-11, Columbus Convention Center, Columbus, Ohio
Emery-Waterhouse City Show
August 7, Terrace on the Park, Flushing Meadows, N.Y.
Florida Hardware Fall Market
August 25-26, Doubletree Hotel & Convention Center, Orlando
Handy Hardware Dealer Market
August 10-12, Henry B. Gonzalez Convention Center, San Antonio
Independent Garden Center Show
August 21-23, Navy Pier, Chicago
Orgill Inc. Fall Dealer Market
August 16-18, Sands Expo and Convention Center, Las Vegas, Nev.
SEPTEMBER
Blish-Mize Fall Dealer Market
September 21-22, Overland Park Convention Center, Overland Park, Kan.
HDW Fall Market
September 8-9, Shreveport Convention Center, Shreveport, La.
Home Hardware Fall Dealer Market
September 23-25, National Trade Centre, St. Jacobs, Ontario
Horizon Distribution Annual Market
September 8-9, Yakima Convention Center, Yakima, Wash.
Jensen Distribution Marketplace 2012
September 12-14, Spokane Convention Center, Spokane, Wash.
Monroe Hardware Fall Dealer Market
September 15-16, Greensboro Coliseum, Greensboro, N.C.
The Hardware Conference
September 7-9, Marco Island Marriott, Marco Island, Fla.
True Value Fall Market
September 21-23, Salt Palace Convention Center, Salt Lake City, Utah
TruServ Canada Fall Market
September 29-October 1, Winnipeg Convention Centre, Winnipeg, Manitoba
OCTOBER
Do it Best Fall Market
October 13-15, Indiana Convention Center, Indianapolis
House-Hasson Fall Dealer Market
October 25-27, Sevierville Events Center, Sevierville, Tenn.
retail ideas
Cash Mob i nvades s tor M er’s
t rue value
June 13 was just another day for owner Dusty Lee at Stormer’s True Value in Knoxville, Tenn., until he got an important visitor. Knox County Mayor Tim Burchett entered the store and informed Lee that his store would be the target of a cash mob. Lee was thrilled but frantic—he had less than 48 hours to get ready.
“We were honored and floored to be picked, but we are a very small store, with little or no staff to handle this,” Lee says. He enlisted the aid of family members of all ages including his father, Cecil, who had retired from the business seven years earlier after running it for 50 years. “We found ourselves doing things that should have been done years ago, as far as straightening up and throwing stuff out,” Lee says.
On Friday, June 15, customers started flocking to Stormer’s True Value. The
The parking lot was filled with media vans on scene to film the cash mob invasion of Stormer’s True Value.
Stormer’s True Value was flooded with customers throughout the event.
Dusty Lee is interviewed by a local TV station during the cash mob.
Dusty Lee, shown here with his father, Cecil, who had retired from the business seven years earlier.
parking lot was filled with media vans who were there to offer live coverage of the event. The rush was on.
“Wow! What a success our event was. We were sucking wind the next morning, but it was well worth it,” says Lee, who estimates that about 150 people came over the course of the day. “I would say 70 percent of the people were regular customers and about 30 percent were new faces. We were really thrilled to see people who lived close to the store but had never been here before,” he adds.
Stormer’s True Value did about three days’ worth of sales that day, and Lee also saw an immediate impact from social media. “I started a Facebook page back in November and only had 16 likes, most of which were my friends and family. It was up to 70 in one day,” he reports.
How to Develop a Dominant nicHe
Phil Mitchell, with Discovery-Based Retail, gave a presentation on how to develop a dominant niche at HouseHasson’s June Dealer Market in Cincinnati. “I believe the need for differentiation is as critical today, maybe even more so, than it was just a few years ago,” Mitchell said. “When we talk about developing a dominant niche, we’re talking about something that has the potential to differentiate your store.”
As Mitchell pointed out, “If you bring a category of merchandise into your store, simply put it on the shelves, hope that it sells and don’t adhere to some success guidelines, that line of merchandise will become just another ‘line of stuff’ performing at whatever level it might through happenstance… but that’s not developing a niche.”
A great place to start is by evaluating what’s currently working well in your store, Mitchell advised. “Ask yourself: ‘Is there a way to expand what we’re already doing well?’ Start imagining how you could capitalize on an already successful department. Can you give the department more room? Can you accent the floor treatment, perhaps, and create a ‘store within a store’ presentation? Can you offer employees additional training and incentify them for higher levels of success?”
What follows are some unique niches that have been established by retailers.
Temecula Ace Hardware in California features a uniform and tactical shop. It offers lines such as 5.11 Tactical Series, Streamlight, Under Armour, Galco Gunleather and more. “Cal Fire, Highway Patrol, correction officers and parks and recreation just love us,” said Steve Davis, sales and marketing manager, in an interview with The Village News. “We are a very unique hardware store.”
Abernathy Country Hardware in Stanley, N.C., recently opened a farmer’s market called The Outback Market, which operates from 8 a.m. to 2 p.m. every Friday and Saturday. It has room for 24 booths to sell fruits, vegetables and home-baked goods. Owner Brian Abernathy hopes it gives locals another reason to visit his hardware store.
Placerville True Value Hardware in Placerville, Calif., has been in business for 160 years, and it sells gold panning equipment just like it did when it first supplied the miners who migrated out West in the first Gold Rush. n
Placerville True Value has established a niche selling gold panning equipment.
Behind the
305,000 Square feet of the new Hartville Hardware store in Hartville, Ohio, making it the largest independent home improvement store in the United States.
$6 Billion Amount Visa, MasterCard and major banks agreed to pay retailers to settle antitrust lawsuit.
6.9%
Rise in housing starts in June to a seasonally adjusted rate of 760,000, which represents the highest total in four years.
550,000 Square feet of Do it Best’s new Retail Service Center when it opens in Sikestown, Mo.
15
The number of states that have so far set up health insurance exchanges to meet the needs of employers who must begin offering that benefit to workers by January 1, 2014.
91.4
Index of Small Business Optimism for June, a decline of 3 points. Only one of the 10 Index components increased—expected credit conditions— according to the National Federation of Independent Business.