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By Chris Jensen
To operate a successful hardware business, most retailers have discovered it is necessary to develop a strong niche or niches to get customers to keep coming back. Some dealers try traditional niches like outdoor power equipment, rental and housewares, while others get creative and experiment with oddball stuff like scrapbooking supplies, kayaks and picture framing.
Walmart’s relentless expansion to the outskirts of towns across America has led to the exodus of many independent shops peddling shoes, books, crafts, sporting goods, clothing and the like. Bad news for those shops in some cases turns into an opportunity for surviving retailers such as the family-run hardware store. Not only are hardware dealers discovering ways to sell housewares even when they compete with Walmart, they are finding lots of other merchandise holes they have the potential to fill.
Hardware retailers in small towns and rural areas almost don’t have a choice— turn your store into more of a one-stop shop or watch your customers get in their cars and drive to the next town to buy what they need.
Amazon may be turning into more of a competitive threat each day, but that has not stopped a number of

hardware industry outsiders from taking the plunge and becoming new owners of hardware stores or lumberyards. Turn to page 34 in this issue to learn more about the “New Faces in Home Improvement Retailing,” people from varying backgrounds who have the entrepreneurial spirit and were not afraid to take risks.
Our September/October issue will feature the 2017 Beacon Award winners, so you can look forward to more stories of retail success. It only takes one or two small ideas to jump-start your business in a meaningful way, and our industry is filled with bright, creative, aggressive retailers who know how to make smart risks and learn from their mistakes.
The Hardware Connection was launched nine years ago as the hardware industry’s first digital-only publication. We quickly grew to become the industry’s largest magazine with a circulation that now exceeds 64,000. With a commitment to innovation and an editorial focus on retail issues that matter, from a retailer’s perspective, we are pleased and proud of our continued growth and development. We hope your business enjoys the same level of growth and success the rest of this year and beyond! n

By Tom Chasteen
As an independent hardware store owner the two things I value the most are loyalty and integrity. In business, I would place those two characteristics before friendship. I didn’t have to have a personal friendship with everyone I did business with. However, I could never maintain a long-term business relationship with anyone who wasn’t trustworthy or who didn’t have a concern for my business interests as well.
Perhaps I’m old school, because when I came into the hardware industry (1974) we didn’t have anything called the internet, email or texting that we all use as impersonal ways of doing business today. Instead, we used paper catalogs and salespeople actually came into the store to discuss doing business in person. Back then we even shook hands on business agreements.
It was difficult for someone not to follow up or do what they agreed they would do since they couldn’t choose not to answer their phone call when your name came up on their caller ID. It also was not possible to copy 16 people on an email trying to explain why they

couldn’t do what they agreed they would do.
Some people may accuse me of being old fashioned or not being progressive. To that I would reply when we remove all intrinsic value of the sale we reduce the sale or relationship to one primary issue: price. I wish the best of luck to anyone trying to build a business on price alone.
I completely understand that loyalty and integrity cannot be measured and put on a financial statement or even the balance sheet, but I will also ask how you can possibly build a long-term business relationship without loyalty and integrity being one of the cornerstones the relationship is built on.
Small business people understand the value of loyalty and integrity for the most part, because they understand their business, in all probability, cannot drive enough sales to leverage their business relationships on price alone. They also understand that product quality and product availability are also a critical part of the business relationship.
This retail reality is due to two very simple reasons: every small business


owner knows you “can’t sell from an empty wagon” and not one hardware store owner I know wants to deal with the unhappy customer who comes back complaining of a product’s poor quality.
Please don’t misunderstand my comments. I am not suggesting that we go backwards and ignore the technological advancements that have helped each of us survive the ups and downs of business cycles. In addition, I certainly would never want to go back to ordering merchandise by the old “squat and squint” method.
However, I also believe that to measure future investments in our businesses solely on the immediate ROI is a very short-term vision and it will ultimately compromise the viability of the business (large or small) in the long term.
As a shareholder of many publicly traded companies I also personally value a fair and realistic dividend, which is why, in many cases, I have invested in the company to begin with. It is, in my opinion, unrealistic to expect senior management to produce exceptionally large dividends over the long term without selling off assets or business units that could compromise future sales and financial viability of the company going forward.
As one retired senior business analyst told me, “Tom, there is very little difference between small business and big business when you really boil it down other than where you place the
I BELIEVE THAT TO MEASURE FUTURE INVESTMENTS IN OUR BUSINESSES SOLELY ON THE IMMEDIATE ROI IS A VERY SHORT-TERM VISION AND IT WILL ULTIMATELY COMPROMISE THE VIABILITY OF THE BUSINESS (LARGE OR SMALL) IN THE LONG TERM.
decimal point—the issues are pretty much the same.”
At the end of the day business is all about making, buying or servicing something and then selling it to someone else at a profit. Typically we market these products to our customers on three basic principles: quality, price and availability. It’s much like a three-legged stool. If you cut one leg off you can certainly balance your business model on two legs, but honestly how long do you think a company could do that?
It is very hard to promote quality, price and availability to a prospective buyer without integrity, and it’s equally hard to maintain your integrity without some basic level of loyalty.
Today, some people may buy a car on price alone, but I would argue that as the sticker price of the car goes up so does the buyer’s concern about service. How can you possibly sell



















service without demonstrating some level of integrity and loyalty to a prospective buyer?
Just think about your own personal business relationships that are longer than five years and analyze what you value most about that business relationship. The only way I think you can measure that value on a financial statement or balance sheet is by sales.
If that is the case and your sales are flat or down, whether you are a big business or a small business, one place you might look at is to see how strong your business relationships are with your customers. How many long-term customers do you have? Is the number
of long-term customers increasing or declining? Are the sales to your customers increasing or declining? Do you work on maintaining your integrity and loyalty with your customers or are you just trying to be the cheapest price or product on the market? When you cut too deep and nick the bone you could lose your leg.
Remember the responsibility of the finance department of any company (large or small) is to report the numbers, not make the numbers. In some cases, I think we have lost sight of that. Let me know what you think, from one retailer to another, at tom@thehardwarestore.com. n
Contact an Epicor expert today or stop by the Epicor Booth #0423 at the Orgill Fall Dealer Market, August 24–25 in Boston, Massachusetts, and see a live demo of Epicor Scheduling+.











WTe’re located in West Hollywood, which has a lot of fledgling movie and television production companies. Had one guy come in from a TV show set and ask us to build a beer bong. That was a fun day. We don’t usually get paid to build beer bongs, and of course we had to test it.
Rick Hohman Tashman Home Center | West Hollywood, Calif.
Bobby Whitlock, who was in Derek & The Dominoes with Eric Clapton, recently came into the store. He was larger than life and had the whole crowd in the store going. Those are the times when the store is fun and that’s what retail should be about—the social engagement before the transaction. The customers were laughing and having a good time.
Michael Ferweda Zinger Hardware | Austin, Texas
his April, we had a guy steal a YETI® cooler. We put the video up on Facebook and it was shared 1,000 times, and the local news picked it up. The funny thing is the guy was wearing a YETI® cap while he was doing it. Guess he’s pretty loyal to the brand.
Jeremy Peterson Family Hardware Cape Coral, Fla.
Ihad one old man who worked for me years ago who had several funny sayings. One of them was: “The public is hell. The public is hell.” Also, we had a customer who came in on a fairly regular basis who was always ticked off. There was nothing we could do to make him happy. This same old employee said, “He’s the most even-tempered man I know—he’s mad all the time.”
Kyle Morgan Trico Lumber Hughes Springs and Linden, Texas


Sales and customer counts YTD?
Sales so far are up just a little and customer counts about the same. There was a storm that went through near one of our stores, and if it wasn’t for that, we’d be flat.
Best niche categories? We’re a lumberyard and farm store, not a typical hardware store. One of the biggest draws for our store is a complete, inhouse system to create blueprints for homes and pole barns. This system can show home builders or renovators what their houses will look like in three dimensions, right on the television. Whenever people want to remodel a home or farm, they come to us. Right now, there are about 20 homes under construction that we had some hand in. We also sell fencing and posts.
Best and worst business decisions you have made? The best decision I ever made was marrying my wife.

One of the better things we’ve done is expanding. Our main store is in Promise City, which is a town of about 150 people. Our main store is like a hub of an old wagon wheel and we have expanded outward like the spokes into towns that are larger, county seats. How we have expanded has helped us identify building sites. Probably the worst decision was not doing enough with training to keep the store personnel up to date with products and practices.
New initiatives planned for the future? We’re always looking for a new, different location. We have to keep our employees challenged. We’re also looking for new, different products and different ways of buying products. Our new products separate us from the competitors.
Dale Housh
Lockridge Do it Best Hardware & Lumber Promise City, Iowa


Sales and customer counts YTD? We’re having a total renovation, which started just before January.
We’re doing a total makeover with Destination True Value, We have new fixtures, a new layout and new merchandise. It’s kind of chaotic. Customer count has been up. Our best month has been June, where we had 19,000 compared to 15,000 of June last year. However, sales have been down.
Best niche categories? We do very well selling the Primo® water refills. We’ll go through one or two pallets of the five-gallon jugs every month. We


also do propane exchange, and we’re known for selling the hard-to-get soda pop with real sugar. Also, in the grilling area, we have a four-foot section of hot sauces.
Best and worst business decisions you have made? We’re hoping this renovation is going to be one of the best. We’ve put a lot of money and effort into it. We’ve seen a lot more people shopping. One of the good decisions we made about four years ago was to have every employee carry a radio. That’s





We did avoid a bad decision when we almost got a second location. It just wasn’t the right time, and it would have devastated us.
New initiatives planned for the future? I’d like to make my management team stronger. I’m constantly working on that. I’m moving toward retirement and would like to pass along good managerial skills. The managers are good at telling people what to do
but not so good at following up to see if the job was done right. We’re going to have manager meetings, which we postponed with the reset. I’d also like to figure out an advertising campaign that works for us. I think we need a simpler advertising strategy.
Tom Veasey
True Value of Wilmington Wilmington, Del.
Sales and customer counts
YTD? We’re up about 10 percent over last year. I attribute the



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increase to changing our product mix and becoming a STIHL dealer.
Best niche categories? Birds, grilling and now STIHL power equipment. When we opened about four years ago, Ace recommended that
we carry bird supplies, and it’s worked out very well. We have 24 feet total devoted to bird supplies, including two endcaps. A lot of customers see us as a convenient destination for their bird supplies.

















Best and worst business decisions you have made? Getting STIHL is a good one. That’s had an impact on the store in many ways. To fit in the STIHL products, we had to reorganize the entire store. Every aisle had to be reworked. Our reorganization has made the product displays tighter, so we’re able to display more product categories and we’re a more shoppable store. As far as worst decision, we’ve brought in some product categories that weren’t big sellers. We’ve invested quite a bit of money in some brands and they haven’t produced. Now, we need to figure out how to make those categories work or move them out.
future?

We’d like to continue to build out niche areas, such as grilling. We’re looking to reset the grilling, plumbing and air filter areas. Our number one challenge is social media. Old channels such as newspapers haven’t worked. I hired a company to manage social media accounts, but the replies were lame. The responses to customers need to be
genuine and can’t be plain and generic. That’s something we’re still experimenting with.
Herb Velazquez
Ace Hardware Crabapple
Alpharetta, Ga.
Sales and customer counts YTD?
We’re flat or maybe just a little up from 2016. Our sales and customer counts have been driven by weather this year. February and March were very mild. Usually

manage inventory, make smarter decisions, and maximize the customer experience. In short, Epicor Eagle helps you do retail right.
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we have a lot of snow, which drives business.
Best niche categories?
Housewares is very large for us. We devote about 5,000 square feet of space to that department. Because of our housewares, we pull in people from 15 miles away. We also have a large sporting goods department, mainly camping and fishing.
Best and worst business decisions you have made? One of the best decisions was to go with Do it Best. We did that 15 years ago. Everything flows from that. We’ve done several remodels, resets and added new signs. For the worst decision, it was probably not taking advantage of hiring someone when I had the opportunity. We had a full staff at the time and I couldn’t bring in anyone else because of the bottom line, but that was a mistake. It would have been a game changer, and I should have bit the bullet.
New initiatives planned for the future? We just want to keep our head

above water. We don’t have any resets or remodeling planned right now. We just finished a big one in electrical. We do have an issue with parking in the area, so hopefully we can deal with that.
Steve Schaefer
Meyer Do it Best Hardware Golden, Colo.
Sales and customer counts
YTD? We’re having a record year. Sales and customer counts are up in all seven stores. Overall, the company is up 4.5 percent with individual stores being up almost 9 percent. We’ve really tried to make the customer experience good and memorable, and I believe that has put us ahead of the game.
Best niche categories? We’re known for all facets of grilling—Big Green Eggs, smokers and charcoal grills. We’ve also done well with the









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Garden center at Miner’s Ace Hardware.
YETI® coolers. Also, we have a fullscale nursery.
Best and worst business decisions you have made? We’re only as good as the people who work at the store. One of the best business decisions is making the commitment to treat employees right and give them a good place to work. Happy people sell more stuff. As far as worst decision, we opened new stores in 2009 and 2010. That wasn’t good timing. Opening them so close together wasn’t the best decision, but we saw an opportunity. It was a nervous time, but now those stores are doing well.
New initiatives planned for the future? We’re always looking for growth. We have two more stores in the works. We’re also looking at enhancing the customer experience. We’re adding a cotton candy machine and new weekend giveaways. We’re also looking to add music to the stores by 2018.
Paul Filice
Miner’s Ace Hardware Grover Beach, Calif.









New products continue to make their way into the hardware channel. Many of these new items are using technology to enhance the quality of the product, making it
Nite Ize is a perfect example of new technology and superior packaging. They have come out with what our testers rated as two superior battery-powered lanterns.
The Radiant 300 is a compact rechargeable LED lantern using a USB charging port with three light settings to conserve battery length. It also has a USB outgoing port, so you can charge small battery devices like a phone or small camera. The Radiant 300 has a maximum of 300 lumens, making
By Tom Chasteen

easier for customers to complete their projects. Packaging also is becoming better, offering openings for the end user to touch or try the product.

it a very bright LED bulb. The size of this lantern (roughly 2.5” in diameter and 6” tall) makes it perfect for night outdoor activities. Another cool feature is it comes with an LED indicator light that turns red when the battery has two hours of charge left. It also comes with a semi-transparent storage sock that holds the charging cables, protects the lantern and can act as a light diffuser when the lantern is turned on.
The Radiant 400 is a little bit larger than the Radiant 300 (3.5” in diameter and 7” tall). The Radiant 400 is powered by three D cell batteries. As a result, it puts out 400 lumens and will last for 26 hours at 400 lumens, 112 hours at the middle setting of 170 lumens and a whopping 759 hours at the lowest setting of 30 lumens. The Radiant 400 also






comes with a semitransparent storage sock that protects the lantern and will also help defuse the light when covering the lantern. Our testers felt the Radiant 400 would make an excellent emergency light for extended power outages.
MAX


Corona has developed what I would call the “ultimate lopper” in the DualLINK™ MAX Forged Bypass Lopper (# SL8180D). This lopper is definitely for the serious do-it-yourselfer and commercial landscapers. Our testers put this lopper to the test and all were amazed at how easy the com pound lever actions makes it to cut branches up to 2” in diameter. These loppers are made with 24” long tubular steel arms with 15” heavyduty rubber handles for easy gripping even when your hands are sweaty and dirty. Our testers rated this heavy-duty lopper as outstanding. Click on this video link.
PRODUCT #4: FLEXDIAL BYPASS PRUNER CORONA TOOLS
Corona’s FlexDIAL
Bypass Pruner (# BP 4214D) is perfect for people who want to adjust the handle grip width, enabling the user to adjust the grip size to their hand or the size of the branches they are pruning. All our testers found this to be a nice feature, even those men with big hands, because they could shorten the grip range to increase their grip strength. Click on this video link.

PRODUCT #5: RATCHETCUT PRUNER CORONA TOOLS

Another new pruner Corona has come out with is the RatchetCUT Pruner (# RP4224D), which makes it easier to cut hardwood branches and dead branches. These pruners act very similar to ratchet PVC pipe cutters in that you keep pumping the handle and the ratchet mechanism just continues to cut through the branch. For a demo click on this video link.

Moen has come out with the Magnetix™ line of shower heads that are both unique and practical. The Magnetix shower hose is a kink-free, flexible metal hose that fits all standard ½” shower arms. The shower head attaches to the shower head mount with a strong magnet, which makes it easy to hang up the shower head. The shower has six different functions, all controlled with a button on the handle and an extremely low flow rate of just 2.0 GPM.
HomeRight has developed a handy product called the Spray Shelter. Many homeowners have limited space to work on projects. Doing painting projects, particularly spraying paint or stain, is usually out of the question. HomeRight has developed two different sizes of lightweight tent-like shelters that enable the homeowner to eliminate overspray. You place the item you would like to work on, like a dresser in the large shelter or a lamp that fits perfectly in the small shelter, and spray away.

Another nice feature is the Moen brushed nickel finish resists fingerprints, so it maintains a clean look even after use. Our testers all commented on how easy the Magnetix showerhead was to install and the versatility of the six different flow settings. They all rated it a winner. For a demo click on this video link.


Our testers thought HomeRight’s Spray Shelters were a cool idea and they all loved the ability to do large or small projects in an enclosed area. They all liked the
fact that they prevented dust from landing on their project while it was drying. The design of the Spray Shelters directs the airflow toward the ground and the overspray onto the drop cloth. Another nice feature is that after the user is finished the Spray Shelter folds up into its own storage bag. I think you will agree that the HomeRight Storage Shelter can make a great addition to your inventory. Click on these video links:Video 1, Video 2 and Video 3.
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By Chris Jensen

formerly worked in admissions at a hospital, spent seven years as a teacher, directed a day-care facility and spent 16 years overseeing early childhood programs for kids of special need at the Catholic Charities Archdiocese of Newark in New Jersey.
Her husband, Dennis Driscoll, is a former police officer at the New York City Police Department and most recently, head of security at a casino. The couple also owned an auto repair shop a decade ago when they lived in New York.
Now they spend their days working together as the owners of Driscoll’s Home Center in West Pittston, Pa., which opened in November 2015.
“It was always a dream of ours to run a business together, and we ran the auto repair shop for a while,” explains Dennis. “Then we moved to Pennsylvania to be close to Liz’s parents and started looking around for business opportunities.”
He adds, “I always had a passion for home improvement projects and was very familiar with the products. Opening a hardware store seemed like the right
fit for us. Liz has adapted to it very well and is liking it.”
They considered three or four sites and eventually settled on a building that had been empty for 11 years. Poring over demographic studies gave them confidence the area needed a good hardware store. The nearest big-box store is a Lowe’s eight miles away.
“The original plan was Liz would run the business and I would come here and help after I got off work at the casino,” Dennis says. “But I found that I just wanted to be at the store helping customers and taking care of the business, so we’re both here all the time.”
Dennis and Liz continue to tweak their assortments as they get customer feedback on products. “There are a lot of older homes in the area with unique character, and our customers want to do very specific projects. We try to get those products in the store,” Liz explains.
They quickly learned that paint brings in female customers, but they have strived to be as diverse as possible with their product offering. “We want to be more than just a hardware store so people can pick up odds and ends,” Liz says.
Niches abound across the 10,000-square-foot sales floor, including dollar section, storage, pet supplies, housewares, automotive, pool supplies, toys, birding, school supplies, convenience lumber and home decor. You can find fishing lures, unfinished hand-crafted Adirondack chairs and handmade infinity scarves. Jars of

Dennis and Liz Driscoll opened Driscoll’s Home Center in West Pittston, Pa., which enables them to be closer to her parents.
squash pickles are displayed on a table by the checkout.
They are looking to expand their selection of convenience lumber and are looking into a rewards program and developing more of an online presence.
“We’re getting great feedback from customers,” adds Dennis. “Every day someone comments that they’re so glad we’re here and they love our personalized service. We’re starting to see good growth, so we must be doing something right.”
Growing up in his native Spokane, Wash., Larry Myers was very familiar with his neighborhood store, River Ridge Hardware, especially its legendary customer service. He became a loyal and repeat customer of the store when he moved back to Spokane after college, built a successful career as a mortgage banker and got married.
“I would go home after work and my release was to fix the sprinklers or some other DIY project. I was constantly in the store and saw the inner workings of it,” Myers explains. “The owner was a client of mine, and four years ago I told him I’d be interested if he ever wanted







to sell the store. I saw the potential.”
Myers had no background in hardware or retail when he found out River Ridge Hardware was for sale last October, but his longtime affinity for the store and his desire to keep it locally and independently owned inspired him to purchase it.

Larry Myers shares what makes River Ridge Hardware unique. Click here


Relying on his unique background and outsider perspective, Myers brought a fresh set of eyes and welcome updates to River Ridge Hardware over his first five months of ownership.
He has modernized the store’s marketing and web presence, and strengthened its niche product and service offerings. Even in the short time Myers has owned River Ridge Hardware, he has taken steps to build on the store’s foundation of customer service with a more modern and customized retail experience.
As the mortgage banking industry evolved with more regulations, Myers had found himself spending more time processing loans and doing paperwork than engaging in the face-to-face contact he loved with clients and realtors. Becoming a hardware retailer gives him the opportunity to interact with employees, greet customers and help them with projects.
With his background in finance and banking, Myers is comfortable reading
Larry Myers ended up buying the neighborhood hardware store in Spokane he had long admired.

financial statements and he is very familiar with what is contained in a profit and loss statement. What has amazed him the most about being a hardware retailer is how dependent sales are on the weather. “The store can double or triple on a sunny day, so you have to plan for those things,” he says.
The 10,000-square-foot store employs up to 20 people during the busy season, many of whom were retained from the previous owner. “I am fortunate to have an experienced staff that helps me out. The most employees I had before in the mortgage business was three part timers,” he points out. “HR issues take up a lot more of my time now.”



The garden center at River Ridge Hardware keeps customers coming back.
His wholesaler, Do it Best Corp., has been another important resource.
“From the marketing materials and the Welcome Neighborhood postcards to the sales reps who can answer my questions, Do it Best has sped up my learning curve and given me the tools to succeed,” Myers says.
River Ridge Hardware features a full custom picture-framing shop, which brings in customer traffic and accounts for 10-15 percent of sales, according to Myers. Another strong niche is rental.
“You have to go through a full year to learn the sales cycles, but I’m lucky to have employee resources to rely on. I’m getting the hang of things,” he says.
Dan Durgan spent 10 years as a home builder, but he is loving his new life as a hardware retailer. In May 2016 he opened Riverside Hardware in Livingston, Mont., with his wife, Julia.
“I always liked being in hardware stores and just like everything there is about the business,” he says.
They bought an existing building and converted it into a store that can meet

May 2016.
the needs of the community. “Orgill was very helpful on every level,” Durgan says.
“They helped us plan the store and get our initial inventory figured out. You can ask any question and get an answer.”
Julia and their three kids help out in the store, and so far Durgan likes the freedom and independence of being his own boss and an entrepreneur.
“There are always moments when you get worried. When you’re new to retail there’s always something you can do better,” he says.
Getting a new store up, running and successful is a daunting challenge, Durgan admits, but he’s comfortable looking at the long-term picture. “The workload is a lot at the beginning. The number of hours you have to put in to be successful is huge but also rewarding,” he says.
His current focus is evaluating his inventory item by item and then he plans to switch his focus to marketing.
“I look closely at what’s selling and whether we have enough stock on hand,” he says. “We’ve seen our average transaction go up a lot, so that’s encouraging.”
Durgan’s advice to others who might consider becoming a hardware store owner is to do their homework. “You can have a pretty good idea of what you’re getting into financially, but you still have to know your numbers,” he advises.
He competes against Lowe’s, Home Depot and other independent stores in his market, but he is confident in his store’s ability to stand out. “Don’t be scared of competition, because no one is
going to outwork you. I’m pretty sure my competitors are not putting away inventory at 2 a.m. like I am. I’ll do whatever it takes to be successful,” Durgan says.
Katie and Tyler DeMaris both had good careers working as supervisors for John Deere. Katie had been with the company for nine years and Tyler for six years. However, with three young kids—ages 6, 4 and 2—they were looking for a different, more fulfilling work-life balance.
“We were both concerned that our fast-paced and rewarding careers were not going to be rewarding enough,” Katie points out.


Katie and Tyler DeMaris gave up good corporate jobs to open and run DeMaris True Value Hardware in Tyler’s hometown of St. Ansgar, Iowa.
They stumbled onto a business opportunity in Tyler’s old hometown of St. Ansgar, Iowa, and decided to take a leap of faith. Last November they bought a distressed building and have turned it into DeMaris True Value Hardware.
“Our first house was a total fixerupper, our second one was new and our third one was falling apart,” Katie explains. “We spent a lot of time in hardware stores looking for the products we needed—it was one of our favorite pastimes. We knew we could work together and run a store, and we like being busy.”
The building, which was formerly a hardware store, was another fixer-upper project. Katie and Tyler moved into the building’s basement apartment with their three kids. They spent their days working on the dilapidated house they had purchased, which was set to be demolished. Then at night, once the kids were asleep, they took the baby monitor upstairs with them while they worked on their retail space.
“We painted, installed new ceiling tile and lights, put in new walls, and tore out and rebuilt the shelves. There




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was a lot of work to be done to get the store ready to open,” says Katie. Although they hired people to come in and stock the shelves, they worked alongside them so they could learn where everything was located.
The 5,000-square-foot store opened in mid-April, with a grand opening celebration a month later. They also moved into their refurbished house in May, although there are still some projects to complete there.
Despite the young ages of their kids, DeMaris Hardware has quickly turned into a family business. “Our oldest daughter already said she wants to be the CEO of the store. She likes coming in
and helping customers find products and scanning things,” Katie says.
They are getting better at anticipating customer needs, although they find the issue perplexing at times. “We won’t sell dowel rods for three months, then six people will come in and want them the same week and we’re out,” Katie says.
The basement they formerly lived in, which had been used as retail space in the past, has potential down the road. It could be used as a workshop area, or to hold seminars on how to use tools or Pinterest. “I went to school to be a K-12 art teacher, so I could also see it being used as an art space for kids,” Katie says.

“Epicor
So far, the community support for the new store has been encouraging. “We’re getting a lot of repeat customers. People are excited and appreciative that we reopened the store and that they can find what they need, so they don’t have to travel to another town,” Katie says.
Looking at their new life together as hardware store owners, Katie says it’s been a fun experience so far. “We really like seeing what projects people are working on,” she says. “The best part is we don’t dread Monday mornings anymore.”
Mark Rand was in commercial printing for over 30 years, but his business principles have been shaped more by
his experience in the military. He served in the Texas Army National Guard for 11 years as a field artillery officer.
“My unit was on standby for Desert Storm in Iraq, so we trained extensively and even learned how to shoot a nuke. We were about to be deployed when hostilities ended,” Rand says. He turned his attention back to the printing business.
“The commercial printing business started dying in Houston when the oil business slowed, so I sold that company in 2012,” Rand explains. He needed to find a business to buy and run, but he couldn’t decide what to do.
Then Rand’s business partner came in and said he just went in this Ace Hardware store and they were very
























“Where Relationships Are Formed”



Epicor and ECi will offer full-day, handson training sessions for their retailers. Bring your tablet or laptop so you can log right into your store as you learn new “tips and tricks” to make your POS software more productive in your store.

















Meet colleagues and new friends at the industry’s largest conference for independent hardware retailers. Share ideas with top retailers on how to grow your business, interact with key vendors on how to increase sales in your store and attend educational seminars, all-industry cocktail receptions and dinners in an exclusive 5-star resort setting.








The Beacon Awards are an important recognition program that honors the best of the best dealers who represent the future of the industry.
Sponsors:






















helpful and they had everything he needed. It was actually a fun shopping experience for him. And he asked Rand, ‘Have you ever considered owning an Ace Hardware store?”
It didn’t sound real exciting to him at first, but then Rand looked into what Ace had to offer and the support they give you and thought it had good solid potential.
He quickly determined it was going to cost too much to open a start-up store, so he found a distressed hardware store that he could turn around. “All the companies I’ve run have been turnarounds, so that was nothing new to me,” he points out.
Rand closed on the deal a year ago in August and opened Waterside Ace
Mark Rand spent more than 30 years as a commercial printer before switching gears to buy a hardware store.

Hardware in Richmond, Texas. It features 11,000 square feet of selling space if you include the outdoor garden center.
Rand was very appreciative that Ace was willing to waive the $5,000 new member fee to join the co-op in recognition of his service to his country. “Every penny counts when you’re opening a new store, but it was important to me that the company from the top down appreciated what people do when they













Waterside Ace Hardware was opened one year ago by Mark Rand as a turnaround situation in Richmond, Texas.
serve their country. It made me feel good about Ace,” he says.
Running a hardware store has some similarities with being in the military, Rand explains.
“You’ve got to lead employees. Constantly be trained and never give up. Have a strong work ethic and never die attitude. Tenacity gets you far in business, just like the military,” he says.

The biggest challenge has been understanding and managing an inventory that consists of 30,000 SKUs, especially with a store that had not been updated in years. Human resources has also been a challenge, as Rand has learned it is difficult to find employees who have the work ethic he expects.
“We’re getting great comments from customers and slowly changing the perception of the store. If I can get people through the door, then I’m confident we can impress them enough to keep them coming back,” he says. n

Start making plans to attend an event that can help rejuvenate your spirit and your business. The 2017 edition of The Hardware Conference will take place September 8-10 at the JW Marriott in Marco Island, Fla. You can bring your whole family to a five-star resort located right on the Gulf of Mexico with miles of beautiful white beaches.
The Hardware Conference, which is now in its 29th year, provides a neutral forum for retailers from different wholesaler programs to network and discuss business strategies. Retailers who have been coming with their families for years say they come away re-energized and filled with new ideas to take back to their stores.

Tom and Dale Chasteen began putting on the Conference in 1988, and now they have turned over the event’s direction to Craig and Shanti Cope while staying closely involved. “The Hardware Conference has long billed itself as the place ‘where relationships are formed’ and Craig and Shanti plan to continue that mission.
The Hardware Conference is the only industry event held exclusively for independent retailers regardless of wholesaler affiliation. Ace, Do it Best, Orgill and True Value all support the Conference.
Come to the Conference and share ideas with fellow independent hardware retailers on how to grow and improve your business and interact with leading vendors on ways to increase category sales in your store. In addition to two open dialogue sessions where key topics are discussed with frank remarks, retail attendees will have many formal and informal opportunities to network with other retailers.
Key vendors participate in the Conference by setting up tabletop booths that showcase their product lines, and dealers will find it refreshing to have informal discussions with vendors without the pressure of buying.
“I always appreciate the variety of opportunities offered to us not only to educate but to enlighten us relative to what is going on with our fellow ‘hardware people.’ I love the roundtable discussions and all the valuable input from the group. I just always have such a pleasant time and love being able to visit with all of our ‘hardware families’ and friends,” said Alan Baro of Baro Hardware in Miami.
Dealer registration for The Hardware Conference is one of the best bargains

Two open dialogue sessions provide a forum for retailers to exchange ideas on key industry issues.
in the hardware industry—$149 per person. The fee covers:
• Three cocktail receptions, two dinners and two breakfasts plus access to the hospitality suite all weekend.
• Your choice of golf, shelling or beach activities Saturday afternoon.
• Access to vendor booths Saturday and Sunday.
• Open dialogue sessions on Saturday and Sunday.
• Wholesaler luncheon on Friday.
Kicking off the event is a Hardware Technology Forum that starts the day before the Conference officially opens on Thursday, September 7. For the fifth straight year, Epicor and ECi Advantage/ECi RockSolid will offer a full-day, hands-on training session for their retailers. Bring your tablet or laptop so you can log right into your store as you learn new tips and tricks

to make your POS software more productive in your store.
To attend the Technology Forum and the Conference the cost is only $299 per person and includes all training programs for two days plus breakfast, lunch and cocktail reception on Thursday in addition to the other Conference meal functions and activities the rest of the weekend.
There are plenty of opportunities to network with other retailers as well as vendors to discuss industry issues.
One of the highlights of the event promises to be The Beacon Awards, which will recognize the industry’s Best New Stores, as well as Retail Beacon Award winners from participating wholesalers Ace Hardware, Do it Best Corp., True Value and Orgill.
The Beacon Awards are co-sponsored by The Hardware Conference and The Hardware Connection with special sponsorship support from Apex Tool Group, Sunnyside Corporation, Epicor, Sashco and Rust-Oleum. The Beacon Awards


This year’s banquet on Friday evening will showcase a first-class awards ceremony featuring the winners of the Beacon Awards program.
banquet will be held Friday evening, September 8.
Vendor booths will be auctioned off Saturday night with the proceeds benefiting the Miami Children’s Health Foundation.
The Conference is designed to include the whole family, with plenty of free time for fun activities such as golf, sailing, shelling and walking on the beautiful, sandy beach.
Attendees enjoy special room rates of $176 per night—a significant savings from regular rates of $250+. To make your room reservations, call the JW Marriott at 239-394-2511 and mention that you are a part of The Hardware Conference.
For more information on attending the 2017 Hardware Conference, call Craig or Shanti Cope at (305) 853-0049 or go to www.thehardwareconference.com.
Sponsors:







Co-Sponsors:






Wednesday, September 6:
Vendor Only Meeting
10:00 AM – 3:00 PM
Technology Forum, Vendor and Dealer Registration 2:00 PM – 4:00 PM
Thursday, September 7:
ECi RockSolid and Epicor Breakfast 8:00 AM – 9:00 AM
ECi RockSolid and Epicor Technology Forums – Dealers .
. 9:00 AM – 5:00 PM
Technology Forum, Vendor and Dealer Registration 8:00 AM – 12:00 PM
Vendor Set Up 9:00 AM – 4:00 PM
Vendor and Dealer Registration
2:00 PM – 4:00 PM
All-Industry Cocktail Reception 6:30 PM – 8:30 PM
Friday, September 8:
Vendor Set Up 8:00 AM – 12:00 PM
Vendor and Dealer Registration 8:00 AM – 5:00 PM
Ace Hardware Dealer Meeting/Luncheon 10:30 AM – 2:00 PM
Do it Best Corp Dealer Meeting/Luncheon 10:30 AM – 2:00 PM
True Value Dealer Meeting/Luncheon 10:30 AM – 2:00 PM
Orgill Dealer Meeting/Luncheon 10:30 AM – 2:00 PM
Beacon Award Winner Private Reception
.2:30 PM – 3:30 PM
Cocktail Reception 6:00 PM – 7:15 PM
Kids’ (ages 5-12) Night Out 6:15 PM – 10:30 PM
Beacon Awards Banquet Dinner
. 7:15 PM – 9:30 PM
Hospitality Suite Open 9:30 PM – 11:30 PM
Saturday, September 9:
Breakfast 7:00 AM – 8:00 AM
Exhibit Areas Open 8:15 AM – 10:00 AM
Open Dialogue Session 10:15 AM – 11:30 AM
Krylon Golf Outing (The Rookery Golf Course) 12:00 PM – 5:45 PM
Women in Hardware Private Luncheon 12:30 PM – 2:00 PM
Wooster Brush – Day at the Beach 12:30 PM – 4:30 PM
Hospitality Suite Open .
.1:30 PM – 5:00 PM
Minwax Shelling Excursion 2:30 PM – 4:30 PM
Cocktail Reception 6:15 PM – 7:15 PM
Key West Buffet Dinner Party and Auction
7:15 PM – 10:30 PM
Hospitality Suite Open 10:30 PM – 1:00 AM
Sunday, September 10:
Breakfast 7:00 AM – 8:00 AM
Exhibit Areas Open 8:15 AM – 10:00 AM
Open Dialogue Session 10:15 AM – 11:30 AM
Closing Remarks 11:30 AM – 12:00 PM
The Hardware Conference would like to thank and recognize its Marquee Sponsors for their support over the years. The following companies are Marquee Sponsors of this year’s event:









Sponsors:








Co-Sponsors:




Join us for this important recognition program that honors the best of the best dealers who represent the future of the industry.
The Beacon Awards are held annually at The Hardware Conference in beautiful Marco Island, FL, and is Co-sponsored by The Hardware Conference and The Hardware Connection magazine.
The Hardware Conference will be held Sept. 8-10, 2017
For more information about attending this event along with all other educational seminars, open floor discussions and social activites at the 2017 Hardware Conference, visit www.TheHardwareConference.com
Sales of Lamps/Light Bulbs
(Independent Hardware Channel)
12 Months % Change vs. Year Ago Light Bulbs:
Source: Vista Information Services, div. of Epicor Software Corp.
Unit Sales Breakdown for Lamps/Light Bulbs
Total of 6,715 Items with Sales
and


• By 2020 50% of all residential lighting sockets will be LED, according to GE Lighting . That is because LED lights provide better performance, more affordable price points and are a conduit for smart homes .
• The connected home is on the rise, and consumers are looking to do more, be better and connect simply . By 2020, the smart home market will grow to include 13 billion devices . Consumers expect a simple connected experience . The average home has 45 light sockets—prime real estate for smart connection points .
• GE Lighting has introduced the first integration of Amazon’s Alexa voice service embedded directly into a uniquely designed lighting product—C by GE Sol . No separate Echo unit, remote, smart device, hub or switch is required . All that is needed is the sound of a voice to command the lamp light to go on and off .
Bomberger’s Store in
Pa., created a dominant display of LED light bulbs.
Left: Orchard Supply Hardware in Deerfield Beach, Fla., uses large shelf talkers to help customers find the right electrical box for their project.
• Connected LED light bulbs offer an affordable option with optimal illumination for everyday use, using Bluetooth™ technology that is controlled by a smart device . Three settings are featured: a warm light to increase melatonin before bed and improve circadian rhythms; a cool, vibrant light to awake and feel energized in the morning; and a standard daytime light .
• Using more LED lighting in homes and businesses will help cut lighting energy consumption in half by 2030, according to the Department of Energy.
• The Energy Star efficiency standards for bulbs increased to 80 lumens per watt in 2017, which is why CFLs will no longer qualify for utility rebates .
• LED lighting will comprise 75 percent of all lighting sales by 2030, according to a forecast by the U .S . Department of Energy, so consumers can be assured it is not a short-term fad .
• LED lights are six to seven times more efficient than conventional lighting and can last up to 25 times longer . n

• Adaptible, versatile BugLit® has a cool, fun design and features four functions: high power, low power, strobe and signal .
• BugLit® body is the powerful INOVA Microlight, a tough micro flashlight encased in a durable polycarbonate plastic housing .
• Legs are made from Gear Tie Reusable Rubber Twist Ties that allow the light to stand, hang or wrap around just about anything . Lightweight plastic S-biner clip allows you to attach, hang or store the BugLit® for convenient access .
• Bright white LED has an effective range of up to 50 feet and one-mile visibility.
Nite Ize
www.niteize.com 303-449-2576

• Enhance any indoor/ outdoor area with 30-foot LED color-changing string lights .
• Bulbs change colors with a wireless remote or controller box easily selectable between white, red, blue and green . Brightness level and colorchanging speed are all selectable .
• Each set is made with commercialstrength, heavy-duty 16/3 SJTW cord that withstands extreme temperatures and wet weather for year-round enjoyment . Each LED bulb uses 1 watt of electricity and up to 91 percent less energy than standard incandescent string lights .
• Get instant on to full brightness with relatively cool running performance with an average life of 25,000 hours . Set includes: 30-foot black cord, 15 light sockets set 2 feet apart, 15 decorative clear LED bulbs and 2 spare bulbs . If one bulb goes out, the rest will remain lit .
Feit Electric Co. www.feit.com 562-463-2852
• Wheeler Hardware in Warrenton, Ga., has been purchased by Philip Sherer and is reopening as Wheeler Ace Hardware.
• Rob Walker is opening New Palestine Hardware in New Palestine, Ind.

• Dan Starr, president and CEO of Do it Best Corp., was joined by retired Do it Best execs Mike McClelland and Dave Haist to help Owner Brian Howenstine unveil his store’s new look and new name, Wabash Do it Best Hardware, in Wabash, Ind.
• Ace Hardware ranked highest in customer satisfaction among home improvement retail stores for the 11th year in a row, according to the J.D. Power 2017 U.S. Home Improvement Retailer Satisfaction StudySM.
• Finkles Hardware in Lambertville, Pa., is celebrating its 100th anniversary.
• ECi Software Solutions has been
named one of the Achievers 50 Most Engaged Workplaces in North America.
• For the eighth consecutive year, Mark Systems, now ECi Mark Systems, has been named to the Constructech 50 list, which recognizes leaders in the homebuilding software industry.

John Wade
• Do it Best Corp. has named John Wade as national product sales and new business development manager.
• Ace Hardware Corp. has hired John Sommers Jr. as vice president-merchandising and named Lisa Doyle as head of retail training.

• Mayhew Tools has named Eric Mills vice president of sales and marketing.
• Ace Hardware Corp. has elected Karen May as a non-member director, and re-elected Chairman James Ackroyd and member directors David Karsten and Mark Schulein.
• Ace Hardware Corp. has introduced the Extra Mile Promise™, a guarantee that Ace has the expert advice and supplies needed to help consumers successfully tackle any paint project with just one trip to
the store by offering free delivery to consumers who need additional paint supplies.
• Westlake Ace Hardware has acquired two Q.P. Ace Hardware stores in the Omaha, Neb., area, giving Westlake 100 retail hardware locations in the U.S. Westlake is also acquiring six-store Ace Hardware of the Outer Banks.
• Manny Franquinha, founder of Crest Hardware & Garden Center in Brooklyn, N.Y., passed away July 9 at the age of 89.

Fred Whyte
• Fred Whyte, former president of STIHL Inc., passed away July 7 after battling cancer. He was 70.
Whyte began working for STIHL in 1971, starting as a regional manager for the same company as his father. At the age of 34, he led STIHL’s expansion and operations in Canada. He returned to the U.S. when he was named president in 1992. After serving STIHL for more than 45 years, Whyte retired and was named chairman of the board.
True Value Company is reportedly exploring its options for a possible sale of the company, according to the
following news reports:
• Bloomberg News
• Chicago Tribune
In response to rumors of a possible sale, True Value President and CEO John Hartmann shared the following with True Value members:
“You correctly categorize this as ‘rumors.’ In fact, rumors have been swirling around True Value for longer than I have been here. We were not even contacted by Bloomberg for comment, as the article suggests! Had we been, however, we would have told them that True Value remains committed to our long-term strategic plan and as part of that we are continuously assessing and evaluating many opportunities in an effort to create maximum value for all of our retailers. The bottom line is this: you and your fellow stockholders own the company and nothing could be done without your say. Thank you for your message and I look forward to seeing you at the Fall Reunion.”
With Ace Hardware rumored to have an interest in acquiring their co-op rival, Ace President and CEO John Venhuizen shared the following message with Ace members:
“Many of you may have seen the news that came out reporting that True Value is considering a sale. It is our understanding that the co-op is conducting a formal process for the sale of its business. We also understand that Ace was specifically precluded from making a bid to purchase True Value, which is unfortunate as we would have been interested in the
opportunity. Although we don’t know what True Value will ultimately decide to do, we will continue to keep you informed as we learn more.”
The last big co-op merger in the industry came when Cotter & Company agreed to merge with ServiStar Coast to Coast Corp. in December 1996, creating what at the time was a $4.5 billion co-op called TruServ. Cotter, whose members did business as True Value, was slightly ahead of Ace in revenue at the end of 1995, while ServiStar was then the third-largest co-op.
Dan Starr, president and CEO of Do it Best Corp., responded to inquiries about the potential sale of competitor True Value by releasing the following statement:
“There has been considerable coverage in the press about reports that True Value may soon be sold. This news is also generating considerable speculation in the home improvement industry about the future of its thousands of independent store locations and when a sale might occur.
There’s certainly no shortage of opinions about who may line up as a potential buyer and what this could mean for that co-op’s longevity.
Our strategic plan focuses on driving growth from multiple fronts. While our top priority is generating sustained growth among our current member base, we’re also focused on expanding our business by adding new members from other co-ops, like True Value and Ace, and through acquisition of competitors. We have



a highly effective and successful record with all of these initiatives.
We are certainly considering the opportunities potentially available with our competitor. Our world headquarters is located very near their Chicago base. Both companies share a long and storied history of committed service to small business owners all across America and around the world. Our financial strength provides the backing for potential acquisitions and our business models are closely aligned. Most importantly, Do it Best Corp. has a demonstrated history of successfully processing a merger with another smaller home improvement co-op. In 1998, we acquired Our Own Hardware and welcomed their more than 700 store locations into our family.
As for the conjecture with True Value and the future of their member stores, Do it Best Corp. is committed to serving the needs of independent home improvement businesses and stands ready to demonstrate why we are the best partner for anyone interested in growing their business. Over the last few months, we have welcomed an increasing number of former True Value members into the Do it Best family and we look forward to welcoming many more.” n
United Hardware Fall and Winter Buying Market
July 28-30, Minneapolis Convention Center, Minneapolis
World Pet Association SuperZoo
July 24-27, Mandalay Bay, Las Vegas, Nev.
Ace Hardware Fall Convention
August 17-19, McCormick Place South, Chicago
Florida Hardware Company Fall Dealer Market
August 10-12, Double Tree Hotel and Convention Center, Orlando, Fla.
Independent Garden Center Show
August 15-17, Navy Pier, Chicago
Orgill Fall Dealer Market
August 24-26, Boston Convention Center, Boston
Blish-Mize Fall Dealer Market
September 15-16, Overland Park Convention Center, Overland Park, Kan.
Bostwick-Braun Fall Dealer Market
September 21-23, Seagate Convention Center, Toledo, Ohio
HDW Fall Dealer Market
September 8-10, Shreveport Convention Center, Shreveport, La.
Home Hardware Fall Market
September 23-26, Henry Sittler Building, St. Jacobs, Ontario
Monroe Hardware Fall Market
September 15-17, Myrtle Beach Convention Center, Myrtle Beach, S.C.
PACOA Fall Dealer Market
September 9-10, Queens College, Flushing, N.Y.
spoga + gafa
September 3-5, Koelnmesse, Cologne, Germany
The Hardware Conference
September 8-10, JW Marriott, Marco Island, Fla. www.thehardwareconference.com
True Value Fall Reunion
September 25-27, McCormick Place West, Chicago
Do it Best Fall Market
October 13-16, Indiana Convention Center, Indianapolis
House-Hasson Hardware Fall Dealer Market
October 26-28, Sevierville Events Center, Sevierville, Tenn.
Taiwan Hardware Show
October 11-13, Great Taichung International Expo Center, Taichung, Taiwan
For a complete listing of calendar dates, click here.