Hardware Connection July/August 2018

PREVIEW OF THE 2018 HARDWARE CONFERENCE IN MARCO ISLAND

July/Aug 2018 Vol. 10, No. 5

THE INDUSTRY’S DIGITAL LEADER

Rebounding from

Adversity

ALSO INSIDE: Boosting Profits with a Simple Marketing Strategy Plumbing Product Trends

Orgill Makes Success Personal

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

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

Why We Like Working With Orgill: ÷ Competitive pricing ÷ Deep discounts and new items at the Dealer Markets ÷ Personal relationships

Watch the video to learn how buying from Orgill makes Fuller & Son more successful!

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CONTENTS July/Aug 2018 Q Vol. 10, No. 5

38

DEALER PROFILE: UMBER’S DO IT BEST HARDWARE

FROM TOM’S SHOP: HARDWARE PRODUCTS REVIEW

Editor’s Note: Chris Jensen

6

Trend Watch: Craig Cope

8

Digby’s Hardware cartoon: Scott Jensen

12

Amazing But True Hardware Stories

14

How’s Business? Regional Reports on Business Conditions

16

From Tom’s Shop: Hardware Products Review

27

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Dealer Profile: MeZ]j k <g al :]kl @Yj\oYj]

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Preview of The Hardware Conference

43

Category Report: HdmeZaf_

51

In the News

54

Upcoming Events

57

Retail Ideas

58

Behind the Numbers

60

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Connection

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THE HARDWARE Connection ■ July/Aug 2018 ■ 3

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ADVERTISER’S INDEX Ace Hardware Corp. | www.myace.com . . . . . . . . . . . . . . . . . . . . . . . . . . 9 A.O. Smith-Reliance Water Heaters | www.hotwater.com . . . . . . . . . . . 34 Apex Tool Group | www.apextoolgroup.com . . . . . . . . . . . . . . . . . . . . . 22 Do it Best Corp. | www.independentsdoitbest.com . . . . . . . . . . . . . . . . . . 7 ECi Software Solutions | www.ECiSolutions.com . . . . . . . . . . . . . . . 18, 19 EcoSmart U.S. | www.ecosmartus.com. . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Epicor Software Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . . . . . . . 21 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . . . 30 H&N Industries/TC-11 | www.tc-11.com . . . . . . . . . . . . . . . . . . . . . . . . . 37 House-Hasson Hardware | www.househasson.com . . . . . . . . . . . . . . . . 13 Hyde Tools | www.hydetools.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Kaba Ilco | www.ilco.us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Krylon | www.krylon.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Mayhew Steel Products | www.mayhew.com. . . . . . . . . . . . . . . . . . . . . 44 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Purdy | www.purdy.com. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Ring | www.ring.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Robert Bosch Tool Corp. | www.boschtools.com . . . . . . . . . . . . . . . . . . . 35 STIHL | www.stihlusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Sunnyside Corporation | www.sunnysidecorp.com . . . . . . . . . . . . . . . 36 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . 4, 31 Werner Company | www.wernerco.com . . . . . . . . . . . . . . . . . . . . . . . . 17

Connection

TM

91900 Overseas Highway | Tavernier, FL 33070 | www.TheHardwareConnection.com Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666 Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126 Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com National Account Manager: Cathy Karabag cathy@thehardwareconnection.com 408-772-7961 Contributing Writers: John Franklin, Doug Donaldson, Gary Pittsford

Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609

The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2018 by the publisher. No editorial may be reproduced without the prior permission of the publisher.

www.TheHardwareConnection.com

THE HARDWARE Connection ■ July/Aug 2018 ■ 5

EDITOR’S NOTE

By Chris Jensen

Does Your Store Have the ‘It’ Factor?

I

have been busy traveling to visit some great stores—all selected as 2018 Beacon Award winners for Best New Store. After traveling around the country visiting hardware stores for the past 30 years, I can tell within 30 seconds of entering a store whether it has the “it” factor that leads to success. Not surprisingly, all of these winning stores had it.

Whatever “it” is, they get it, they have it, they know it and they don’t take it for granted.

So what is the “it” factor? It’s an overwhelming sense of excitement that exudes from customers and employees.

People like working there and shopping there, which sounds simple but is hard to pull off on a regular basis.

When you overhear conversations, you see that customers are enjoying their interactions with the knowledgeable employees. It’s helpful and personable banter, not like going to the dentist or the Bureau of Motor Vehicles. You don’t hear associates griping about having to work a weekend shift or taking a late lunch.

The “it” factor also entails attention to detail—a place for everything and everything in its place, with aisles clear of clutter, shelves full of merchandise and fronted, and restrooms cleaner than yours at home.

6 ■ THE HARDWARE Connection ■ July/Aug 2018

The best stores almost seem to anticipate your product needs, even before you know you need that particular product.

They have a product mix that appeals to young millennials and older baby boomers with both trendy items (video doorbells) and nostalgic items (old-fashioned soda bottles and tin signs).

The best stores with the “it” factor also have owners and managers who can be found on the sales floor most of the time, not hiding in a backroom office or on a never-ending series of vacations.

You cannot reinforce a culture of service from a remote location.

I still remember visiting Hartville Hardware in Hartville, Ohio, when the Miller family opened a new 305,000-square-foot store in 2012.

Five years in the planning and building stage, this store had fantastic merchandising and dominant assortments in every core category and just about every niche you could think of. It was a deserving Beacon Award winner for Best New Store in 2013.

Don’t miss our feature articles on all the 2018 Beacon Award winners in the September-October issue of The Hardware Connection. You can see how these distinguished retailers define the “it” factor of success. Q www.TheHardwareConnection.com

BUILDING ON A

VERY PROMISING FUTURE. We’ve spent much of the last year implementing bold new initiatives to help our member-owners take full advantage of game-changing opportunities in the independent home improvement industry. Through it all, Do it Best has performed just as we promised — and it’s been validated by our strong growth with existing members and while welcoming more new members than ever before. How have we done it?

We’ve continued to deliver exciting new programs and strategies in marketing, merchandising and LBM, along with retail performance, store design and much more. And most importantly, we’ve maintained a laser focus on what matters most – helping our members grow and achieve their dreams.

It is with that continued focus that our member-owners are poised for even greater success in the year ahead.

It’s an exciting time to be a Do it Best member and we welcome you to become a part of the story.

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TREND WATCH

By Craig Cope

Exploring New Applications for Geofencing

I

ENERGY STAR® REPORTS HEATING AND COOLING REPRESENT APPROXIMATELY 45 PERCENT OF A HOME’S ENERGY CONSUMPTION, SO EVEN MINOR ADJUSTMENTS CAN YIELD BIG SAVINGS.

n my last column of Trend Watch, I highlighted home automation or “smart” devices, the tremendous category growth and how easily hardware stores could add these to their product mix. One of the first smart devices to gain popularity within U.S. households was the programmable thermostat.

The programmable thermostat was designed to save homeowners money on their heating and cooling costs.

ENERGY STAR® reports heating and cooling represent approximately 45 percent of a home’s energy consumption, so even minor adjustments can yield big savings.

Consumers are often advised that installing a programmable thermostat can save them anywhere from 10 to 30 percent on the space heating and cooling portion of their energy bills. While reliant on proper use of the programmable thermostat, such savings are easily true in theory; however, there needs to be more field-tested data to better substantiate savings claims, according to the ENERGY STAR report.

The ENERGY STAR report pinpoints one of the largest drawbacks to programmable thermostats—the actual

programming. “Many households (perhaps 30 percent or higher) with programmable thermostats may be unable, unwilling, afraid, uninterested or otherwise reluctant to deploy default programs or to create or deploy custom programs.”

Another drawback to programmable thermostats is a rigid schedule.

How many people leave or return to their home at the same time day in and day out? Busy and/or irregular schedules lead to overriding the programmed schedule and then forgetting to return the thermostat back to the original programmed schedule— this happens frequently in our home.

These factors lead to consumers not realizing their anticipated cost savings

8 ■ THE HARDWARE Connection ■ July/Aug 2018

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TREND WATCH promised when purchasing the more expensive thermostat.

Manufacturers have responded in a host of different ways. Many added Wi-Fi capabilities coupled with a mobile app to allow consumers to adjust their settings remotely. Others have created thermostats with artificial intelligence (AI) that “learn” the homeowner’s schedule, desired temperature and adjust accordingly. A few manufacturers have launched thermostats with geofencing.

So, you may be asking, what in the world is geofencing and how can it help lower the heating and cooling cost of homeowners? A geofence is a virtual perimeter for a real-world geographic area. With the addition of software and GPS or RFID-enabled mobile devices— cell phones—the house lights turn on or off as a mobile device enters or exits the geofence.

The term geofence may be new to some, but the technology has been in use for years. Some early commercial uses of geofencing were to alert owners if their car, motorcycle or boat left a defined space—a geofence. Another usage was to trigger a notification to parents if a child left the house, playground, school, etc.

Thermostats with geofence technology can adjust the heating or cooling settings based on a geofence. With a couple of clicks in an app the homeowner creates a geofence around their house and the thermostat will adjust the 10 ■ THE HARDWARE Connection ■ July/Aug 2018

temperature settings when they leave or return home.

If the home has multiple people living together, then the thermostat will maintain the desired temperature until the last person leaves and reduce energy consumption until the first person arrives. The homeowner determines the size of the geofence to fit their personal preference. The larger the geofence radius around the home, the earlier the thermostat will respond to achieve the desired temperature.

The primary benefit of thermostats with geofencing is the elimination of programming to a rigid schedule.

Geofencing adds the flexibility to rely on your location for temperature adjustments versus a clock.

The use of geofencing is gaining popularity in numerous applications.

One day soon you may use geofencing to alert shoppers in your stores of promotions based upon their exact location within the aisle. However, that is a story for a different day. Q www.TheHardwareConnection.com

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HARDWARE HUMOR

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HARDWARE HUMOR

Amazing but TRUE

HARDWARE

STORIES

A

gentleman returned half a pack of cricket and spider traps because he said they were defective. Apparently, he set a trap in the basement and caught crickets just fine. However, he also caught a mouse (presumably the mouse came to eat the crickets). His wife sent him to exchange the traps for the kind that won’t kill mice, an activity she doesn’t approve of. We never told him that it would also kill mice, so therefore we should refund his money. I don’t know which part of that is more unsettling, the fact that she doesn’t mind having mice running around in the basement or the fact that he actually did what his wife told him to do—return the package for refund.

Alan Talman Karp’s Hardware | East Northport, N.Y.

W

e had a regular customer ask for a better price on a product or he said he’d just steal it.

Not sure if he was serious or not.

Mark Swift Brown’s True Value Hardware Marengo, Iowa

rn a had a lady retu eter. digital thermom r She said it neve 50 changed from 1 tried it e had a man return a package of light bulbs degrees. She ater and cold years ago. The package had a little blurb on in hot w d at ter and it staye a w it that read “great for living rooms, kitchnd is an 150. Her husba ens, bathrooms, etc.” The man returned the bulbs to e looked engineer and h was the counter and stated that his wife told him to return at it. She said it d the them because they were using them in the bedroom junk. So I pulle igital sticker off the d and the package didn’t state they were “great” for she was screen for her— the bedroom. Of course we refunded—how can you till ad at me. She s m o s argue with that? Afterwards I thought that maybe he ne. wanted a new o was better off with no lights in the bedroom.

Lisa Kelly e Matt Mazzone Kelly’s True Valu A Mazzone Hardware Newburyport, M Brooklyn, N.Y.

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14 ■ THE HARDWARE Connection ■ July/Aug 2018

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Xienna Arlanza– Assembler

Cynthia Griffin – Assembler

Sergio Ortiz – Utility Operator

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How’s Business?

Rough River Hardware has niche in recreational products.

MIDWEST How are sales and customer counts in 2018? We’ve seen a little increase this year versus last year. We’re up about 10 percent. I attribute it to the new economy and customers having more confidence.

Best niche categories? We are in a recreational area. If you look out our front window, you’ll see a recreational lake. So we’re not just a hardware store. We have fishing, camping and RV. About 20 percent of the store is dedicated to recreational products. We even sell live worms for fishing, fishing licenses and poles. For the product mix, we make sure we have things such as adapter plugs and hoses for RVs. New initiatives for 2018? During the winter, we will re-evaluate the store and spruce it up. Two years ago, we added some major space to the store, so I have no plans to expand for a while.

16 ■ THE HARDWARE Connection ■ July/Aug 2018

We’ve reset several departments the past few years, so we’re about where we want to be with product mix.

David Dillman Rough River Hardware McDaniels, Ky.

NORTHEAST How are sales and customer counts in 2018? Less than it has been in the past; we’ve been on a downward trend. Unlike most retailers who are convinced that the biggest competitors are big boxes, I believe the online companies are the true competitors. We’ve seen a lot of trends— like when catalog ordering became a www.TheHardwareConnection.com

competitor—because our store has been in the same family for 95 years. Thomas Edison was a customer, and we would Roger Schneider (left) and brother Gerald Schneider make deliveries to his home and operate the store started by their grandfather in 1923. workshop.

Best niche categories?

We offer a wide variety of rentals, from Specialty plumbing and hardware has chainsaws to augers. And we’ll explain been a niche for us. They come to us from eight to 10 towns away for hard-to- how to do a project and how much money a homeowner can save by rentfind plumbing for the older homes that ing a tool and doing it themselves. are 60 to 100 years old. We also have New initiatives for 2018? We’re the mortise locks and skeleton keys for those who want to keep the original look looking to make some modest changes to our website. for hardware. We also have a niche in sharpening services. We’ll sharpen any- Roger Schneider thing with a blade and some profession- Schneider Hardware West Orange, N.J. als come in for precision sharpening.

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CUSTOMER SUCCESS STORY

MILTON HARDWARE & BUILDING SUPPLY RockSolid MAX™ Hardware Store POS Software helps retailer expand into Lumber and Building Materials Supply

W

hen Jeff Paladino took over Milton Hardware in 1998, he brought with him the passion and instincts of a true entrepreneur.

Back then, the business was little more than a modest convenience store, with a limited product mix—both in breadth of categories and depth of inventory—and a retail footprint of little more than 4,500 square feet.

Fast forward to today and Milton Hardware is a dramatically different operation. The product mix boasts new depth in existing categories and the addition of several new ones, while the 4,500 square feet that Paladino started out with has grown to over 10,000.

In addition, the company added a 5,000 square foot building in 2010 to support the introduction of a rental operation for construction equipment and party-related items and another 12,000 square foot building this year, as part of a major expansion into the lumber and building supply business.

That move also brought a name change— from Milton Hardware and Rental Center to Milton Hardware and Building Supply.

“When I purchased Milton Hardware from my parents in 1998, it was very obvious that business as usual was not a viable option,” Paladino recalls. “There were rumors that big box competition was coming and I knew we either had to expand our selection and overall value proposition and become much more of a destination store or face the prospect of a mostly stagnant future.”

All the scuttlebutt back then about big boxes showing up turned out to be a lot more than just rumors.

Even though Milton Hardware serves a town with a population of less than 20,000, four Home Depots, three Lowe’s and two Tractor Supply locations are today all within a 15-mile radius of the store.

CONVERTING TO ROCKSOLID MAX SOFTWARE FOR LUMBER/BUILDING SUPPLY EXPANSION JUST MADE SENSE Despite the fierce competition—not to mention the challenges of some significant peaks and valleys in the overall economy in recent years—Paladino has kept Milton Hardware on an aggressive expansion course.

Last year’s investment in lumber and building supplies is redefining the company and already opening the door to new business and a new customer segment with major potential.

Managing growth and change on that scale is no easy task and that’s why since 2010, Jeff Paladino has used RockSolid™ and, more recently, RockSolid MAX™ cloud-based software from ECi Software Solutions to run his business.

“Technology has been an important part of the story at Milton Hardware for a long time now,” says Paladin. “We went live with RockSolid in 2010 and it’s been a valuable resource for the business on many levels—not just point of sale but also purchasing, inventory control, and managing the overall finances of the business.”

Adds Paladino, “RockSolid gave us the capabilities and the flexibility that we needed as a hardware store and when we added the lumber and building supply operation, converting to RockSolid MAX was the logical next step.”

Milton Hardware made the move to RockSolid MAX in November 2016. Changing software is never easy and, Paladino reports, there were a few bumps along the way. But, he says, the RockSolid MAX customer service and technical support teams were always there to help smooth things out.

“The level of support we get from RockSolid is generally very good,” he says. “They are always accessible and responsive.”

ROCKSOLID MAX HARDWARE SOFTWARE PROVIDES FLEXIBILITY TO SERVE CUSTOMER EFFECTIVELY Once Milton Hardware was live on RockSolid MAX, the benefits started showing up almost immediately.

RockSolid MAX, says Paladino, provides an ideal platform for a combination hardware, lumber and building supplies business. “The fact that we’re able to do unit of measure conversions, whether it be for linear feet or case quantities—has given us the kind of flexibility we need to serve our customers effectively,” he says.

The program has also made life a whole lot easier on the pricing front. “When you’re dealing with a largely commodities-driven business where prices can fluctuate, potentially, on a daily or weekly basis, it’s good to have access to a program that can make price changes to a product category on a global basis,” he points out. “That has been a big plus for us, both in terms of time savings and the ability to react quickly to market changes.”

ROCKSOLID MAX CLOUD-BASED SOFTWARE FOR HARDWARE STORES ELIMINATES DAILY DATA BACKUPS RockSolid MAX’s status as a cloud-based program has also proved its worth pretty much from day one.

“Moving to the cloud has brought us time savings and added convenience,” reports Paladino. “Before we moved to RockSolid MAX, we had to do daily backups and updates ourselves,” he recalls. “All that was work we had to do after hours and updates could take at least 20–30 minutes or upwards of a couple of hours depending on what was involved. Moving to the cloud has not only freed up valuable time to focus on more productive areas, but also given us a greater comfort level with backups and data security. And being able to access the system from anywhere where there’s a web browser is also a big plus.”

As Paladino looks to the future, it’s not too surprising that more growth figures prominently in his plans for Milton Hardware.

If the right opportunity comes along, a second location could be opened. And with or without that addition, there’s still plenty of potential still to work on in the lumber and building supply side of the company.

Regardless of where Jeff Paladino’s future plans may take Milton Hardware, though, one thing is certain: RockSolid MAX will continue to keep the business strong, productive and profitable!

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© 2018 ECi, the ECi Red Box and ECi RockSolid MAX are trademarks or registered trademarks of ECi Software Solutions, Inc. All rights reserved.

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Ace Hardware just opened in Salem, W. Va.

SOUTH How are sales and customer counts in 2018? We’re up as much as 3 percent. I think the economy is getting better.

Best niche categories? Gutters.

We have a whole division for gutter sales and installation. Gutters are about a quarter of our business. I have six people working in that area with one office person. To promote that niche, we advertise in local magazines and do a little bit of radio.

New initiatives planned for 2018? We’re going to reset the plumbing department and paint department along with freshening up some other areas in the store.

Nancy Fisher Allison’s Ace Hardware Lottsburg, Va. www.TheHardwareConnection.com

SOUTHWEST

Upper: Allison’s Ace has been in business since 1971.

Lower: Gutters are a major niche for Allison’s Ace.

How are sales and customer counts in 2018? We just moved to a new location and increased size and scope considerably. We’re up about 20 percent on both sales and customer count. We moved from an old lumberyard with 10,000 square feet to an old Walmart with about 57,000 square feet.

Best niche categories? We put in a Hallmark store and have a grilling area, offering all kinds of grills and

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How’s Business?

New initiatives planned for 2018? We’re going to have a grand reopening on July 28 and during the rest of the year, we’ll keep adding inventory.

Robert Archer Morton Lumber Ace Hardware Borger, Texas Upper left: From left, Marilyn Archer and Robert Archer with son Colin Archer and his wife Sarah Archer.

Middle left: Morton Lumber has been in Borger, Texas, since 1950.

Lower left: Morton Lumber added a Hallmark store.

accessories. We’re stocking Carhartt clothing and Hi-Pro animal feed. We’re a Case knife dealer and extended that department along with adding ammo and camping. We also have a professional line of cabinets and storm doors. www.TheHardwareConnection.com

WEST How are sales and customer counts in 2018? It’s trending up. I THE HARDWARE Connection ■ July/Aug 2018 ■ 23

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How’s Business?

Suisun Ace held a grand opening for this store in 2014.

don’t have a percentage. The upward trend is because of the Ace ad campaign and word of mouth about the store.

Best niche categories? Traeger grills. The barbecue area is at the front corner of the store and customers have really responded to Traeger grills. It also helps that we’re the only service center for Traeger grills in the area.

New initiatives planned for 2018? We’re gearing up for a complete www.TheHardwareConnection.com

revamping of the plumbing department to better accommodate contractors.

The entire plumbing department will be redone at the beginning of 2019 to offer better selection and quantity. Research from Ace and customer feedback helped determine we should freshen up the plumbing department.

Richard Roberts Suisun Ace Hardware | Suisun City, Calif.

THE HARDWARE Connection ■ July/Aug 2018 ■ 25

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From

p o h S s Tom’

By Tom Chasteen

W

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HARDWAR

are stocking for their specific market. In fact, it is now one of the first things I look for when visiting a hardware store for the first time or the tenth time because things change.

The two things I respect the most about hardware store owners—regardless of the size of the store—is their willingness to bring in new items and to allow their “guts” to play the retail game with their own money. Knowing from the beginning that if they make a bad decision (and we all do) it is their money they will lose, not someone else’s money.

T

here is a saying that the only thing that remains the same in life is change. Retailers in the hardware channel are constantly on the lookout for new products they think their customers will want to buy.

This applies to everything from core plumbing and electrical products to impulse items like Bloody Mary mix, candy and ice cream. In my case, it was $30,000 boat lifts that originally started as just stocking replacement parts and accessories for boat lifts.

It has been rare in my travels over the past 40 years of visiting hardware stores to not find unique items they

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For those people who are not familiar with Ring, they make a series of doorbells that have a high-resolution video camera that can either be activated by motion or manually when someone pushes the doorbell. Then the video will be sent directly to your phone or another electronic device.

Now if you are a part of my generation that is technically challenged or rely www.TheHardwareConnection.com

on your kids or even your grandchildren to program your TV remote, don’t fall victim to saying that is not for our store.

Our testers found the Ring Doorbell 2 extremely easy to use and set up. And THE HARDWARE Connection ■ July/Aug 2018 ■ 27

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the video is very clear with a wide field of view.

If you count the number of homes and businesses in your trade market, I would guess 50 percent of those homeowners and business owners would be extremely impressed with the ability to monitor their front doors 24/7.

Allow me to explain—from a security aspect, how many times did one of your children open the front door when someone knocked at the door without knowing who was at the door? How many times have you come home to find a package sitting on your front porch? How many times have you been working upstairs or in the basement and not heard someone ring the doorbell? How many times have you been short office staff or working late and no one was available to monitor the front door? How would you know if someone came into your office while you were not there?

All of these issues can be resolved by installing a Ring Doorbell 2, because it will immediately ring directly to your phone and you can actually see on your phone in real time who is there or what has been left at your front door. You can even speak to the person at your front door and the voice clarity is really amazing.

www.TheHardwareConnection.com

Here are some of the other neat features noted by our testers: It is very simple to install because it uses Wi-Fi, so you don’t need to run any wires. Everything you need to install the Ring camera/doorbell is in the box.

The camera/doorbell is only 5” long, 2.5” wide and 1” thick, but it is nicely designed and is not a distraction when you walk up to the door.

Our tester said it took less than 20 minutes to install. Programming is a breeze with simple step-by-step instructions. Ring also offers a free trial to store (archive) all video. It is compatible with Apple, Android and Microsoft products.

The biggest issue our testers had was determining just how they wanted to use the Ring Doorbell 2. However, the built-in programming features allow the user to make changes whenever they want. For instance, if you live on a busy street with a lot of traffic you might want to dial down the motion sensitivity so every time a car goes by it doesn’t alert you. You can do that. When you are home you might want to increase the ring tone volume versus when you are at work.

THE HARDWARE Connection ■ July/Aug 2018 ■ 29

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The camera/doorbell is weather resistant and the rechargeable battery lasts a long time before it needs to be charged again. In our view the Ring Doorbell 2 is a winner with multiple applications.

This product makes a natural end cap item for a hardware store. It’s not difficult to use but really shines when someone can help the customer understand what it is really capable of doing. Although it’s really easy to install and set up, this product will do well with stores that take the time to explain it to customers,

giving them confidence that if they have any questions they can either call the store or come back to the store and ask a question.

However, the best part is that Ring is not a product line that requires hardware retailers to have a computer science degree to help their customers understand how to install a Ring doorbell. We rate the Ring Doorbell 2 five stars!

Check out this video link and see for yourself from one retailer to another.

Contact me at tom@thehardwarestore.com if you have a product you would like us to test in Tom’s Shop.

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FEATURE

By Andy Curry

Boosting Profits with a Simple Marketing Strategy Can you think of a better marketing advantage to have than hundreds or thousands of happy people relentlessly telling their friends, acquaintances and strangers what a great thing it is to do business with your store? Better yet, they do it 24/7 unfailingly and it doesn’t cost you a dime.

I just described a marketing tactic you already have at your fingertips, but I will bet the farm you are either not using it or you are not squeezing every drop of advantage you can from it. When folks ask me what the marketing advantage is I sometimes get a look of disappointment that I didn’t give them some miraculous secret almost no one knows.

The truth is this: It is miraculous, but it is not a secret. Yet, what seems to be a secret is its profit-boosting effect and how to magnify it. I am talking about online reviews. If you are one of those people who just shook their head because you have heard this before and don’t see what all the hype is about, keep reading because you will become a believer.

32 ■ THE HARDWARE Connection ■ July/Aug 2018

There are websites all over the internet where people can and do leave reviews about businesses. Google is the most prominent place for reviews, but Facebook is a power player for local businesses as well.

When Google first made reviews public, many business owners were beside themselves with anger. The general consensus was, “I have enough to do in my business, why is Google giving me yet another thing to worry about?”

However, these business owners did not understand the gift that was just given to them. Online reviews are, in fact, one of the most valuable marketing methods available to you. It is a free referral service. It is a non-stop, customer-generating machine. It is the ultimate word-of-mouth system. www.TheHardwareConnection.com

Think about this. If you ever went online and looked at reviews to help you decide if you should eat at a restaurant, use a certain dentist or buy a certain product, then those reviews did one of two things. Either they propelled you to the business Facebook review or repelled you like enemy s for Dave’s Ace Har d w are, fire on a battle ground.

Milton, Wis. That is the kind of influence reviews have. If your online reviews are averaging 4 stars or better, them, consider using a service that then those reviews have the same clout checks for you and sends you a daily and influence as the advice of a highly summary of all reviews. respected heart surgeon.

The instant you spot a review that is Exploited correctly, you will have less than 5 stars, it is time to get mad. a powerhouse marketing tactic that You should get mad, because your will continually boost your profits and customer’s expectations were not met. frighten your competition. (Unless they That means your expectations were are outperforming you with reviews. also not met, and that’s unacceptable.

Do you know where you stand comNext, set up a systematic way to colparatively?) That said, let’s go over lect reviews on a daily basis. There are how you can turn this into a monster automated ways to get this done where referral machine for your business. all the details are taken care of behind the scenes. The only thing you have to do is ask the customer for the review.

MAKE A COMMITMENT If the customer is giving you a bad The first thing to know is you must review, this can actually be diverted commit to getting 5-star reviews. right on the internet so it does not show Nothing less. You will get customers on review sites. I will warn you though. giving you 4-star reviews or worse, Google just implemented a terms but you can change that. Commit to checking your reviews daily. Numerous policy that basically says, “Thou shalt not prevent bad reviews from showwebsites have customer reviews, so be sure you check all review websites. ing.” Google calls it “review gating.”

Frankly, you could still divert the bad If you don’t have time to check all of www.TheHardwareConnection.com

THE HARDWARE Connection ■ July/Aug 2018 ■ 33

FEATURE reviews and take a gamble that Google is no more the wiser. What will they do if they find you have been diverting bad reviews? It’s too early to know.

I won’t recommend you divert or not divert, it is up to you. However, there is a great workaround that Google can do nothing about. You simply have a conversation with customers prior to asking them for a review. In the middle of the sale you will ask what the customer would rate your business at that very moment.

You will probably know by the tone of the conversation, but asking will verify it. If it is 5 stars, then ask them to review your business right then. If it is not, then ask them, “What would have to happen

to make this a 5-star experience for you?” Once they reveal what is on their mind, then do what you must to achieve the 5 stars. Google has no idea you are filtering reviews with conversations, so you are not violating their terms.

Have a computer set up in your business for customers to review you online. Make this computer a dedicated computer for just this reason. You will find some customers won’t do it, because they will either use their phone or not want to review you at all. It’s important you work hard to get customers to leave reviews, because you are building your online monster referral machine and this is how you do it.

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HOW TO GET REVIEWS

you is seen by a customer who has a lot of money to spend at your business.

Do not wait for the customer to In case you are wondering, asking review your business, you must ask for reviews by email is acceptable too. and ask constantly. If the customer However, you will not know how they won’t leave a review while there, then see your business. Again, there are you pull out the ace up your sleeve.

The ace is that you will guilt them into online systems to handle this for you leaving you a review and they will love if you need it. If not, send only a few requests per day with your own email, you for it. Do this through the law of because if you are getting an unusual reciprocity. Shove a small gift in their amount of reviews at one time, it will hand, because when you do they will feel obligated to reciprocate somehow. stick out like a sore thumb and Google This old trick has been used since the will know it because their algorithms are highly sophisticated. Assuming pyramids were built. When you give a they catch it, they will remove your person a gift, they now feel an obligareviews at the very least. tion to give something to you. How Long ago, I worked with a roofer much trouble is this worth? Well, it could be that the review they leave for that offered a $25 gift card to each fan

FEATURE on their Facebook page who would leave a 5-star review. I advised the roofing company against this. Twenty-four hours later they amassed over 100 reviews.

With a glance, any potential customer

looking at their reviews could tell something was not right. After all, all the reviews came within 24 hours. Customers aren’t stupid; they can see things like that. Even worse, the roofer got a handful of reviews that

36 ■ THE HARDWARE Connection ■ July/Aug 2018

were dangerous to their business, because they said things like, “I can’t believe this company would actually pay for good reviews. That’s dishonest and so is this company. I will never use them!” The roofer didn’t think that one through.

I personally would have been very stressed out if someone said that about my business for the whole world to read online. The moral of this story: Be smart!

Now here’s an interesting tidbit about getting 5-star reviews. It turns out that Google will do the Jerry Maguire effect and “show you the money!” By that, I mean Google loves it if you are getting 5-star reviews and will in turn make your local business listing more visible, all things equal. That means more customers will find you online, which means you make more sales. So consistently getting more and more 5-star reviews will pour on the love from Google.

www.TheHardwareConnection.com

Reviews that just trickle in won’t help you much in being more visible, so that’s why you want to be proactive. If you are getting 4- and 5-star reviews, you will be riding the giant of marketing waves.

I urge you to check your reviews daily. Know what customers are saying.

If the reviews you are getting are less than desirable, you must get to the bottom of it. One employee could be the cause. Sometimes, business owners discover it is them causing the poor review. No matter what the reason, get it fixed now.

Let me leave you with this thought.

Tons of positive reviews will attract business to you. Bad ones (and it doesn’t take many) will repel business.

Both work equally well, 24/7. Commit to 5-star review no matter what and get them on a daily basis. Q

Andy Curry is the Cheap-Marketing Champion who believes in inexpensive but effective marketing and getting a big bang for your marketing buck.

For more info on building your online reviews, go to: www.

AndyCurry.com/ reviews. An expert marketer, Andy owns several businesses (including a home center) and shares his tactics with audiences around the world. He is the author of “AutomaticPilot Sales.” Download Andy’s free report called “Gets More Customers Buying More Often” at: www.AndyCurry.com/gets-more. www.TheHardwareConnection.com

DEALER PROFILE

By Chris Jensen

DAVE UMBER

UMBER’S DO IT BEST HARDWARE FORT WAYNE, IND.

Rebounding from

Adversity Dave Umber is the third-generation owner of Umber’s Do it Best Hardware in Fort Wayne, Ind.

U

mber’s Do it Best Hardware dates back to 1944, when Lester and Bertha Umber opened for business in a former gas station in Waynedale, Ind., with $700 in inventory and 1,000 square feet of floor space. The business moved to its current location in 1954, when Lester built a 3,200-square-foot building. In 1965, Lester retired and sold the business to Dwight and Marilyn Umber, his son and daughter-in-law.

Their son, Dave, joined the business as

38 ■ THE HARDWARE Connection ■ July/Aug 2018

the third generation in 1972. A second store in Georgetown was added in 1976.

Umber’s Hardware added a third location in Covington Plaza in 1987, which moved to a new location in 1998 before closing in 2006. Dave and his wife, Barb, bought the business in 1997 and their son, Grant, joined the business as the fourth generation in 2003.

Wholesaler: Do it Best Corp.

Sales floor size: Both stores feature 8,500-square-foot sales floors. www.TheHardwareConnection.com

Rental is growing into a strong niche at the Georgetown location.

Sales in 2018: March business was fair, April stunk and May and June were both up double digits. We worked hard for that.

Best niches: We are the only locally owned YETI® dealer, plus Scott’s and Weber grills. All three are growing double digits.

YETI hasn’t cooled off yet. We carry all the Weber colors and try to be true to the brand. I remember seeing my first Weber grill at the National Hardware Show 30 years ago and we’ve sold it ever since. We assemble and deliver for free.

Recent initiatives: We decided last fall that our Waynedale store needed an upgrade. We tore lawn and garden up and reviewed sales of every eight-foot section.

We noted anything that hadn’t sold in the last year and relied on Do it Best planograms. Every item was moved to a new location, we lengthened some aisles and shortened others. We meticulously picked every display, even bulk displays.

What is the biggest challenge you’ve faced? The last 10 years have been an interesting journey. In 2007 I was first diagnosed with prostate cancer. I took the Lord into my life on a Sunday. The www.TheHardwareConnection.com

Upper right: Dave Umber shares management responsibilities with his son Grant (right) and son-in-law, Keith Williams (left).

Middle Right: Grant Umber is the fourth generation of the family to be in the business.

Bottom Right: Dave Umber is constantly on the lookout for new items that will be popular with customers.

THE HARDWARE Connection ■ July/Aug 2018 ■ 39

My faith, my family, my health and my business. My commitment was to look at each one in detail and refocus on what Left: The paint department draws in female customers at the front of the store. was best for the future for my family.

When I got to the business part, some changes had to happen. We changed supnext day the nurse called and told me my PSA (prostate-specific antigen) level plier and picked up the offensive against was high and that I needed to talk to the the recession. Growing in my faith has been very soothing to me. I’ve been a doctor. That’s when I found out I had changed person since. I don’t get too high prostate cancer, so I started my walk of or too low, but just strive to be better. faith. I had a son, Grant, in high school What does the future hold for then and a daughter who was not yet married. That cancer got me down, but I your family business? It’s a true blessing to work with family in the business. ended up winning.

Then the recession hit in 2008. Pencils My wife, Barb, does HR and payroll. My had to be sharpened. Our payroll was too role at 61 is teacher. I plan to step back in four to five years, but keep doing high, but we still had to pay to keep our everything behind the scenes to keep good employees. Grant came back into the business viable. I haven’t gifted the business full time and my daughter anything yet, but it’s about to begin. My got married and my son-in-law, Keith goal is to get stock in Grant’s hands in Williams, entered the business. Then three to five years and let him know he’s in 2010 my cancer came back. Now I’m the designated successor, but anything cancer free, and I spend time mentoring could happen. Grant’s wife has an MBA, guys who are suffering prostate cancer. so she could get a job opportunity that How did battling cancer change pulls him away. Keith is the store manyour approach to business? When ager of the Waynedale store and it looks it came to light that our chances of success against the cancer were in our favor, like he will be part of our future as well.

These are things we have to work on in I made a commitment. I committed to terms of a succession plan. I’m working review four important aspects of my life: Right: Umber’s has signed up 12,000 Do it Best Rewards members.

40 ■ THE HARDWARE Connection ■ July/Aug 2018

www.TheHardwareConnection.com

with Gary Pittsford to figure out the best way to transfer the business whether it’s an outright purchase or stock redemption. I want Grant to have time to put together his own plan, not mine.

How important is it to carry on the legacy started by your grandfather in 1944? I have my grandfather’s handwritten notes on how and why he started the hardware store. It’s written history. That’s precious and it’s stuff that isn’t recorded. I can visualize that first gas station that my grandfather owned for 10 years before converting to a hardware store. I wish I could really experience what that was like for him.

For the past 18 months I’ve been writing a monthly 600-word article for the local newspaper, The Waynedale News, on DIY tips or whatever I want to cover.

Next year I plan to write about the highlights of our 75 years in business. We have a picture of Grant when he was six with four generations of the family for our 50th anniversary, and we’ll do the same for our 75th with my granddaughter, Bristol, who’s been featured on our Facebook page as Super Rental Girl.

What retail lessons did you learn from your father and grandfather?

My dad was very good at budgeting.

He was strong on payroll percentage, margins and left us in good shape to be successful. My grandfather didn’t have a lot of education and wasn’t the best businessman, but he understood how to take care of customers. My grandfather always said, ‘The last thing you want to www.TheHardwareConnection.com

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DEALER PROFILE the same with a front face and voice, although you still have to make key backroom decisions. My dad stressed the importance of having a good accountant, banker, attorney and supplier and said there will be times when you have to lean on each one. I’ve changed accountants, attorneys and suppliers and that has to be part of the mix.

How do you juggle duties with two stores? We have weekly planning meetings. Grant takes care of advertising for both stores and acts like a general manager. Keith is in charge of Margin Master.

Our backdoor margins are 50-51 percent and our front-door margins are about 43 percent. This allows us to use discounts Upper: Umber’s Do it Best Hardware has been serving the Fort Wayne community and not carry paper for 30 days. since 1944.

What impact has Amazon had on Lower: The Georgetown store opened in 1976. your business? I think Amazon has only had a single-digit impact on us. In our type of business we’re not shielded, but do is waste your customers’ time. The there’s only a finite amount of products worst thing you can do is miscut a key.

Make sure you take care of them and go you can lose out on. With Amazon, you above and beyond.’ We want customers can’t get paint mixed, rent a posthole digger or touch and feel the different fabric to recognize they’re talking to a human flags we sell to see which is best. here. For a few minutes, you get to talk Our stores are very close to all the to them. homes we serve. We concentrate on My dad and mom formed an excelhomes within a radius of one to two lent team in the 1960s, ‘70s and ‘80s, miles and try to be part of their daily lives. then I came along in the mid-‘90s right as the competition gets tougher with the Our Do it Best Rewards program is extenboxes coming in. I have to be the face of sive—with 12,000 members. About 40 percent of our cash sales are from Rewards the business on radio and in print and have knowledgeable people behind me. members, and their average sale is $3 to $5 above the regular cash customer. Q The leadership of tomorrow has to be 42 ■ THE HARDWARE Connection ■ July/Aug 2018

www.TheHardwareConnection.com

HARDWARE CONFERENCE

The Hardware Conference is held at the beautiful JW Marriott in Marco Island right on the beach.

Celebrating

30 Years of The Hardware Conference D

eveloping relationships with other hardware retailers and vendors was the reason Tom Chasteen, Paul Weintraub, Bob Goggin and Dan Hitchcock took their first road trip in 1988 to find a hotel to host The Hardware Conference. It was the same reason they chose the theme “Where Relationships Are Formed.”

From September 7-9 at the JW Marriott in Marco Island, Fla., the industry will be gathering to celebrate an important milestone—the 30th anniversary of The Hardware Conference, which has always been held in Marco Island.

After that first-year gathering of just Ace Hardware retailers from Florida, Tom and Dale Chasteen went on to guide the www.TheHardwareConnection.com

The JW Marriott in Marco Island recently underwent a $320 million renovation.

Craig and Shanti Cope are carrying on the tradition started by Tom and Dale Chasteen.

THE HARDWARE Connection ■ July/Aug 2018 ■ 43

Vendor booths are auctioned off on Saturday night, with all the proceeds going to benefit the Miami Children’s Health Foundation.

Conference through 26 years of growth.

They expanded the event to include dealers beyond Florida and they opened it up to retailers from all the different wholesalers. It remains the industry’s largest gathering of independent retailers regardless of wholesaler affiliation.

“The Hardware Conference has prospered for the past 30 years because of our desire to grow our businesses and

All-industry cocktail receptions are a perfect way to catch up with industry friends.

strengthen our relationships with one another. Without trust, there simply can’t be a relationship,” says Tom Chasteen.

Tom and Dale developed a succession plan to transition The Hardware Conference to Craig and Shanti Cope, who took over as co-directors beginning in 2015.

“The Hardware Conference has been the place ‘where relationships are

You can mingle with your fellow retailers throughout the event.

HARDWARE CONFERENCE

“Dealers, vendors and wholesalers get together to discuss a variety of issues pertinent to our industry. The facility is wonderful and very affordable. The meals are superb and the entertainment outstanding,” says Matt Noonan III of Noonan True Value in formed’ and it is our intention to remain Springfield, Ill. dedicated to this concept,” says Craig Dealer registration for The Hardware Cope. “Shanti and I bring the same Conference is one of the best bargains passion and drive to host a first-class, in the hardware industry—$149 per perinformative, interactive, entertaining son. The fee covers: and family-friendly event for everyone • Three cocktail receptions, two who supports the independent two-step dinners and two breakfasts plus hardware channel. We want to carry on access to the hospitality suite all this legacy of inclusion started by Tom weekend. and Dale, while finding new ways to • Your choice of golf, shelling, bring the industry together.”

Everglades airboat excursion Come to the Conference and share or beach activities Saturday ideas with fellow independent hardware afternoon. retailers on how to grow and improve • Access to vendor booths Saturday your business and interact with leading and Sunday. vendors on ways to increase category • Open dialogue sessions on sales in your store. In addition to an Saturday and Sunday. open dialogue session and a Beacon • Wholesaler luncheon on Friday.

Award winner panel discussion where key industry topics are discussed with HARDWARE TECHNOLOGY FORUM frank remarks, retail attendees will have Kicking off the event is a Hardware many formal and informal opportunities Technology Forum that starts the to network with other retailers. day before the Conference officially Key vendors participate in the opens on Thursday, September 6. For Conference by setting up tabletop the sixth straight year, Epicor and ECi booths that showcase their product Advantage/ECi RockSolid will offer a lines, and dealers will find it refreshing full-day, hands-on training session for to have informal discussions with ventheir retailers. Bring your tablet or lapdors without the pressure of buying. top so you can log right into your store www.TheHardwareConnection.com

THE HARDWARE Connection ■ July/Aug 2018 ■ 45

HARDWARE CONFERENCE

The open dialogue sessions enable retailers to give direct feedback to vendors about key issues.

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 and Rust-Oleum. The Beacon Awards banquet will be held Friday evening, September 7.

SIGN UP TODAY Vendor booths will be auctioned off Saturday night with the proceeds Friday evening’s banquet honors the benefiting the Miami Children’s Beacon Award winners.

Health Foundation. as you learn new tips and tricks to The Conference is designed to include make your POS software more produc- the whole family, with plenty of free tive in your store. time for fun activities such as golf, shellTo attend the Technology Forum ing and Everglades airboat excursions, and the Conference the cost is only sailing and walking on the beautiful, $299 per person and includes all train- sandy beach. ing programs for one day plus breakAttendees enjoy special room rates fast, lunch and cocktail reception on of $181 per night—a significant savings Thursday in addition to the other from regular rates of $375+. To make Conference meal functions and activiyour room reservations, click here or ties the rest of the weekend. call the JW Marriott at 239-394-2511 and mention that you are a part of The BEACON AWARD WINNERS REVEALED Hardware Conference.

One of the highlights of the event For more information on attending promises to be the sixth annual the 2018 Hardware Conference or to Beacon Awards, which will recognize register, call Craig or Shanti Cope at the industry’s Best New Stores, as (305) 853-0049 or go to www.thehardwell as Retail Beacon Award winners wareconference.com. n 46 ■ THE HARDWARE Connection ■ July/Aug 2018

www.TheHardwareConnection.com

CONFERENCE SCHEDULE OF EVENTS Wednesday, September 5:

Vendor Only Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10:00 AM – 3:00 PM Technology Forum, Vendor and Dealer Registration . . . . . . . . . . . .2:00 PM – 4:00 PM

Thursday, September 6:

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . .1:00 PM – 4:00 PM All-Industry Cocktail Reception . . . . . . . . . . . . . . . . . . . . . . . . . . . .6:30 PM – 8:30 PM

Marquee Sponsors 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:

Friday, September 7:

Vendor Set Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8:00 AM – 12:00 PM Vendor and Dealer Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . .8:00 AM – 4:00 PM Do it Best Corp . Meeting/Luncheon . . . . . . . . . . . . . . . . . . . . . . . . .10:30 AM – 2:00 PM True Value Meeting/Luncheon . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10:30 AM – 2:00 PM Orgill Meeting/Luncheon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10:30 – 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 At conclusion of dinner, hospitality suite is open

Saturday, September 8:

Breakfast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7:00 AM – 8:00 AM Exhibit Areas Open . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8:15 AM – 10:00 AM Beacon Award winner panel discussion . . . . . . . . . . . . . . . . . . . . .10:15 AM – 11:30 AM Krylon Golf Outing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12:00 PM – 5:45 PM Women in Hardware Private Luncheon . . . . . . . . . . . . . . . . . . . . . .12:30 – 2:00 PM Day at the Beach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12:30 PM – 4:30 PM Everglades Airboat Excursion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1:00 PM – 5:00 PM Hospitality Suite Open . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1:00 PM – 5:00 PM 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 – 9:00 PM At conclusion of dinner, hospitality suite is open

Sunday, 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 Closing Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11:30 AM – 12:00 PM

www.TheHardwareConnection.com

THE HARDWARE Connection ■ July/Aug 2018 ■ 47

LOOKING BACK AT 30 YEARS OF THE HARDWARE CONFERENCE IN MARCO ISLAND Bob Vereen & Tom Chasteen

Bob Clemence

Bob Goggin Brandon & Chris Jensen, Tom Chasteen, Dan & Linda Akers

Bear & Tina Majcher

Doug Laird & Tom Delph

A Seminar from 2010 Conference.

Bob Lueders

Dan Hitchcock

Greg Galen & Rick Heuser

Ed Hayes, June Nash, Libbie Susnik & Greg Jorgensen.

48 ■ THE HARDWARE Connection ■ July/Aug 2018

www.TheHardwareConnection.com

Jim & Teree Ertzman Pat O’Reilly

Walter & Patty Toole, Dave Atkins

Jim Holden

Tom & Dale Chasteen

Hardlines Digest Gathering

John & Billie Hammond

Paul Weintraub

Sarah Pitkin

Howard Miller of Hartville Hardware Gerri & Mark Madden

www.TheHardwareConnection.com

THE HARDWARE Connection ■ July/Aug 2018 ■ 49

CONFERENCE2018 SEPTEMBER 7-9

REGISTER HERE TODAY!

“Where Relationships Are Formed”

3 Days of Networking, Relaxing and Learning 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.

Learn More About Your POS System at the Hardware Technology Forum Epicor and ECi Advantage/ECi RockSolid 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.

Honor the Industry’s Best Retailers at the 2018 Beacon Awards The Beacon Awards are an important recognition program that honors the best of the best dealers who represent the future of the industry.

Sponsors:

Co-Sponsors:

FOR MORE INFORMATION ABOUT ATTENDING THE BEACON AWARDS ALONG WITH ALL OTHER EDUCATIONAL SEMINARS, OPEN FLOOR DISCUSSIONS AND SOCIAL ACTIVITIES AT THE HARDWARE CONFERENCE, VISIT WWW.THEHARDWARECONFERENCE.COM

CATEGORY REPORT

PLUMBING TRENDS Sales of Faucets (Independent Hardware Channel) 12 Months % Change vs. Year Ago Faucets: Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -0.7% Faucets: Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .-1.6% Source: Vista Information Services, div. of Epicor Software Corp.

Unit Sales Breakdown for Faucets Total of Items with Sales Total Category Top 5 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.2% Top 10 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.2% Top 20 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.2% Top 30 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.3% Source: Vista Information Services, div. of Epicor Software Corp.

Seasonality of Sales of Faucets (Index=100) 120 110 100

112 99 101 97

96

102 96

99

99

107 97

96

90 80 70

Apr. 2017

May June July 2017 2017 2017

Aug. Sept. Oct. Nov. Dec. Jan. Feb. March 2017 2017 2017 2017 2017 2018 2018 2018

Source: Vista Information Services, div. of Epicor Software Corp.

Faucets Share of Sales by Type (Latest 12 Months) Kitchen Faucets Lavatory Faucets Tub & Shower Faucets Tub Filler Faucets Laundry Faucets Shower Faucets Bar Faucets Other

45.2% 32.7% 10.0% 4.7% 3.2% 2.9% 0.7% 0.7%

0

10

20

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30

40

50

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 www.vistainfoservices.com.

THE HARDWARE Connection ■ July/Aug 2018 ■ 51

CATEGORY REPORT

PLUMBING DEPARTMENT MERCHANDISING

Bath vignettes at Park Supply in Huntsville, Ala., illustrate how to accommodate the needs of elderly and handicapped customers.

Faucets and showerheads are functional at Park Supply, so customers can turn them on to see which one they like best.

This end cap merchandising display at Orchard Supply Hardware ensures customers can find the plumbing department.

Park Supply’s plumbing showroom features a dominant selection of faucets, tubs and other plumbing products.

Shelf talkers at Orchard Supply Hardware help customers select the right valve or fitting.

52 ■ THE HARDWARE Connection ■ July/Aug 2018

This kitchen sink display at Hartville Hardware in Ohio showcases the various options available.

www.TheHardwareConnection.com

Sponsors:

Co-Sponsors:

Help Us Honor the Industry’s Best Retailers at the 2018 BEACON AWARDS 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 are co-sponsored by The Hardware Conference and The Hardware Connection magazine.

The Hardware Conference will be held Sept. 7-9, 2018 For more information about attending this event along with all other educational seminars, open floor discussions and social activities at the 2018 Hardware Conference, visit

www.TheHardwareConference.com

IN THE NEWS NEW STORES: % Leah and Joe Walbeek opened Akron Lumber in Akron, Iowa. % Tracy Culpepper has opened Ace Hardware of Valley (Ala.). % Greg and Christine Egelstad are the new owners of Ace Hardware Evergreen Way in Everett, Wash. % Bill, Erik and Karl Young opened their fifth Ace Hardware store in Candler, N.C. % Ron Crowder is opening his third Ace Hardware store in Bradenton, Fla., this fall. % Mike Hendrix and Susan Cobb are the new owners of the renamed Heritage True Value Hardware in Cooleemee, N.C. % Levi Bolthouse has opened his third store, Midtown Ace Hardware in Kalamazoo, Mich. % John Krueger is the new owner of Miller’s Hardware & Bargain Outlet in Geneva, N.Y. % Ted Garrett and Bob Pope have opened P&G Pro Hardware in Weston, W. Va. % Busy Beaver has opened a new store in Greenville, Pa. % Vince Furrie is opening two True Value Hardware stores in Youngstown, Ohio. % Randy and Mary Patzer have bought St. Pierre Ace Hardware in Monroe, Mich., from Al and Donna St. Pierre. % Joel Jacobson is opening his third Jacobson’s Ace Hardware in Eau Claire, Wis. 54 ■ THE HARDWARE Connection ■ July/Aug 2018

% Hammond Lumber has acquired Ellsworth Builder Supplies in Ellsworth, Maine.

KUDOS TO: % Annie and Roger Gregory, along with Joe and Mimi Hurd, are celebrating the 50th anniversary of Priest River Ace Hardware in Priest River, Idaho. % When a nearby Big Brothers Big Sisters of America chapter needed help updating its offices, Crooksville Do it Best Hardware in Crooksville, Ohio, stepped up in a big way. Led by Owner John Coler, the store donated all the paint necessary for Big Brothers Big Sisters of Licking and Perry Counties to give their headquarters a longoverdue update. % Nebraska-based Millard Lumber is celebrating its 70th anniversary. % Thomas Do it Center in Gallipolis, Ohio, is celebrating its 30th anniversary. % Kroner’s True Value in La Crosse, Wis., is celebrating its 150th anniversary. % Carr Hardware, with six stores based in Pittsfield, Mass., is celebrating its 90th anniversary. % Brad and Yamileth Clore are celebrating the 80th anniversary of Belmont Hardware, with six stores in northern California. % Kevin Nyberg of Nyberg’s Ace Hardware was named South Dakota Small Business Person of the Year for 2018. www.TheHardwareConnection.com

% The Biggers family celebrated support center by 309,000 square feet. the 100th anniversary of Biggers % More than 400 dealers have signed Hardware in Corinth, Miss. up for House-Hasson Hardware’s % Bob Mills, owner of Angle free Digital Deals advertising Hardware in Rocky Mount, Va., program since it was introduced was honored with the Estwing in January. House-Hasson creates Golden Hammer for 50 years in the digital ads for dealers, ads usable hardware industry. on the internet, Facebook, other % Jim and Marilyn Lehrer are sites and e-mail marketing. Dealers marking the 20th anniversary get special pricing on the products of Brownsboro Hardware in advertised and they can easily Louisville, Ky. make custom ads from the items % Scott Bishel is celebrating the 120th given at special pricing. “Dealers anniversary of Smith & Bishel are recognizing the importance of Hardware in Middletown, Conn. getting their names and products % Bliffert Lumber & Hardware in in front of customers in every way Milwaukee was named the 2018 possible,” said Taylor Hasson, vice NARI National Distributor of the Year. president-marketing. % Moscow and Pullman Building Supply in Moscow, Idaho, and Pullman, Wash., is celebrating its OTHER NEWS: 60th anniversary. % Independent We Stand has recognized Bridge Street Ashtabula in Ashtabula, Ohio, as the $25,000 PEOPLE ON THE MOVE: winner of “America’s Main Streets” % Do it Best Corp. has promoted Steve contest.

Rose to national logistics manager. % On June 10, Jerry % Ace Hardware Corp. has named Barnes reached a Kim Lefko as senior vice president, milestone of 50 years chief marketing officer. of service with The % Terry Davis, CEO of Home Wooster Brush Hardware Stores Ltd., is retiring Company. Jerry is after 48 years with the company. the 17th employee in Jerry % PRO Group has promoted Wooster Brush’s 167Barnes Alex Hernandez to associate year history to reach 50 merchandise manager and Drew years of service. He began enjoying Elfin to marketing manager. retirement June 30. % Lowe’s Cos. has named Marvin WHOLESALERS IN THE NEWS: Ellison as its new president and % Ace Hardware Corp. is expanding CEO, succeeding the retiring Robert its West Jefferson, Ohio, retail Niblock. www.TheHardwareConnection.com

THE HARDWARE Connection ■ July/Aug 2018 ■ 55

IN MEMORY:

% John Tucker of Waverly True % Blair Douglas, past president Value Hardware in Waverly, Neb., of the National Retail Hardware passed away May 20 at the age of Association in 1999-2000, passed 70. He had owned the store since away May 29 at the age of 65. He 1975 and was a veteran of the U.S. had operated N.F. Douglas Home Marine Corps. He is survived by his Hardware in Caledonia, Nova wife Janet; son Benjamin, daughter Scotia, and was also past president Jessie, sister Pamela, brother of the Canadian Retail Hardware Robert and four grandchildren.

Association. He served as NRHA’s % Darryl Taylor, former owner representative on the managing of C&J Hardware in Olathe, committee of the International Kan., passed away May 30 at Hardware Association. He was an the age of 81. A past chairman avid conservationist and advocate of the Southwestern Hardware for ecological research who hosted & Implement Association, he the first biodiversity monitoring operated four other hardware plot on private lands in Canada on stores. He is survived by his his North Queens forest property. wife Ramona, sons Bradley and Blair is survived by his wife Jean, Jonathan, daughter Kara and sons Jeffrey and John, his mother three grandchildren. and sister, and three grandchildren.

Open The Hardware Connection On Your Mobile Device to View

UPCOMING EVENTS Jensen Marketplace 2018 September 13-14, Oregon Convention United Hardware Fall & Winter Buying Center, Portland Ore. Market July 27-29, Minneapolis Convention Monroe Hardware Fall Market Center, Minneapolis September 14-16, Myrtle Beach Convention Center, Myrtle Beach, S.C. AUGUST

JULY

Ace Hardware Corp. Fall Convention August 16-18, McCormick Place, Chicago Florida Hardware Fall Market August 11-12, Double Tree Hotel & Convention Center, Orlando, Fla. Orgill Fall Market August 23-25, Sands Expo & Convention Center, Las Vegas

SEPTEMBER Blish-Mize Fall Market September 21-22, Overland Park Convention Center, Overland Park, Kan. Bostwick-Braun Fall Dealer Market September 20-22, Seagate Convention Center, Toledo, Ohio HDW Fall Market September 14-16, Shreveport Convention Center, Shreveport, La. Home Hardware Fall Market September 15-18, Henry Sittler Building, St. Jacobs, Ontario Horizon Distribution Annual Conference & Trade Show EXPO September 7-9, Yakima SunDome, Yakima, Wash.

The Hardware Conference September 7-9, JW Marriott, Marco Island, Fla. www.thehardwareconference.com True Value Fall Reunion September 28-30, Colorado Convention Center, Denver

OCTOBER House-Hasson Hardware Fall Dealer Market October 25-27, Sevierville Event Center, Sevierville, Tenn.

Do it Best Corp. Fall Market October 12-15, Indiana Convention Center, Indianapolis STAFDA Convention October 28-30, Phoenix Convention Center, Phoenix Taiwan Hardware Show October 17-19, Taichung International Exhibition Center, Taichung, Taiwan Wallace Hardware Company Fall Dealer Market October 10-12, LeConte Center, Pigeon Forge, Tenn.

For a complete listing of calendar dates, click here. www.TheHardwareConnection.com

THE HARDWARE Connection ■ July/Aug 2018 ■ 57

RETAIL IDEAS

Kevin Pratt tasted success with wine- and beer-making kits.

A UNIQUE WAY TO GET BUY-IN FROM NEW HIRES Mike MacKay of Vassar Building Center in Vassar, Mich., has discovered a unique way to get new hires quickly engaged in the business.

He has developed a routine of bringing new employees with him to the Do it Best semi-annual buying markets and having them pick one product that they don’t currently carry and bring it back to the store for a trial run.

Cost isn’t necessarily an issue, but moderation is the general rule. “One guy thought it would be good to have a Bobcat,” says MacKay, “so we make sure it’s a reasonable amount like under $1,000.”

The process is informal, but the takeaways and learning experiences are important, even if not always successful.

MacKay, who says he has been doing this about a dozen years, also lets established

Tanner MacKay, son of owner Mike MacKay, found success with Flame Genie.

employees take a stab at it so they stay challenged.

“It keeps them engaged while they’re at the market and it gets them to buy in with our program,” says MacKay. “Their challenge is to bring it back to the store and train the rest of the staff so it’s successful. They quickly learn you can’t just throw it on the shelf.”

While driving sales is celebrated, the goal is also to instill a sense of camaraderie as well as learning from failure—and developing a better understanding of what is favored by Vassar’s customers. “No one wants to have the product that doesn’t sell, so it helps improve everyone’s selling skills,” MacKay points out.

Even MacKay has been left scratching his head more than once with certain products, like when he had to practically give away a pallet of Tide laundry detergent, a product recommended by another

Manager Adam Daugharty brought in a winner with the Stanley travel cup, but not so much with the Laser Projector Light Show.

58 ■ THE HARDWARE Connection ■ July/Aug 2018

www.TheHardwareConnection.com

retailer. “Tide doesn’t mower blades, and sell well in a lumberwe deliver anywhere yard,” he says with a in town,” Randy knowing laugh. A yardsays. The brothers pond kit also seemed also own a number like it had all the ingreof rental properties, dients of success, but so they buy water it, too, didn’t generate heaters by the cargo any excitement from container and buy as customers. many as 100 refrigMany products erators a year. succeed and some “Our customers fail, but what matknow they can get a ters in the end is new fair deal with us and Randy Atkinson operates members of MacKay’s get them whatever Atkinson’s Discount with his team getting realthey need,” Randy brother, Rick. world experience in says. merchandising—and real-world education in understanding GIVING CUSTOMERS AN their customers.

ONLINE TOUR

DIVERSIFYING SALES WITH A TWIST

One of the things e-commerce supposedly cannot replicate is the in-store experience. Try telling that to Brad McDaniel Atkinson’s Discount in Pageland, and the team at McDaniel’s Do it Center in S.C., has been around since 1982, run Snohomish, Wash. by brothers Randy and Rick Atkinson.

The McDaniel’s team took the Google They started off by specializing in autoMaps experience and brought it inside, motive parts and mobile home parts, and later decided to add general hard- using the service to create an online instore tour of their Snohomish location. ware in the 1990s.

Visitors can tour the entire store from The 3,840-square-foot sales floor for their computer or mobile device, getting hardware items is supplemented by 3,600 square feet in the back for auto and an intimate look at McDaniel’s store expemobile home parts. Half their sales come rience and a first-person feel for the location’s layout and departments, exploring from hardware these days, and a recent aisle by aisle. reset has given their business a boost.

See the McDaniel’s Do it Center tour for Another strong niche is lawn mower yourself here. Q repair parts. “We sell thousands of www.TheHardwareConnection.com

THE HARDWARE Connection ■ July/Aug 2018 ■ 59

E H T D N I H E B NUMBERS

11%

Increase in criminal acts in retail stores in 2018 compared to 2017, according to D&D Daily.

73% 1.6

Number of times habitual shoplifters steal per week on average, according to the National Association for Shoplifting Prevention (NASP).

27 million

Number of shoplifters in the U.S. (1 in 11 people), according to NASP. More than 10 million people have been caught shoplifting in the last five years.

60 ■ THE HARDWARE Connection ■ July/Aug 2018

Percentage of adult shoplifters who didn’t plan to steal in advance, according to NASP.

3%

Percentage of shoplifters who are professionals who steal for resale or profit, accounting for 10% of total dollar losses, according to NASP.

36.5%

Percentage of shrink that is external due to shoplifting and organized retail crime, according to the National Retail Federation. Q www.TheHardwareConnection.com