Hardware Connection March 2019

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CELEBRATING A DECADE OF DIGITAL INNOVATION

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March 2019 Vol. 11, No. 2

THE INDUSTRY’S DIGITAL LEADER

How to Get Your ALSO INSIDE:

Interview with Orgill’s New President Trends in Hand and Power Tools

Employees to YOU

LOVE

CONTENTS March 2019 n Vol. 11, No. 2

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MAIN FEATURE: HOW TO GET YOUR EMPLOYEES TO LOVE YOU

Q&A WITH ORGILL PRESIDENT BOYDEN MOORE

Editor’s Note: Chris Jensen Trend Watch: Craig Cope Digby’s Hardware Cartoon: Scott Jensen Amazing But True Hardware Stories How’s Business? Regional Reports on Business Conditions From Tom’s Shop: Hardware Products Review Main Feature: How to Get Your Employees to Love You Wholesaling: Q&A with Orgill President Boyden Moore The Hardware Conference: Beacon Awards Set the Stage Category Report: Hand and Power Tools In the News Upcoming Events Retail Ideas Behind the Numbers

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ADVERTISER’S INDEX Ace Hardware Corp. | www.myace.com . . . . . . . . . . . . . . . . . . . . . . . . 9 A.O. Smith-Reliance Water Heaters | www.RelianceWaterHeaters.com . 21 Apex Tool Group | www.apextoolgroup.com . . . . . . . . . . . . . . . . . . . 19 Do it Best Corp. | www.independentsdoitbest.com . . . . . . . . . . . . . . . 4 Epicor Software Corp. | www.epicor.com . . . . . . . . . . . . . . . . . . . . . . 20 Ganymede Technologies Corp./J3 Point-of-Sale | www.j3pos.biz . . 28 House-Hasson Hardware | www.househasson.com . . . . . . . . . . . . . . 15 Hyde Tools | www.hydetools.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Kaba Ilco | www.ilco.us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Orgill Inc. | www.orgill.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Spartan Power | www.spartanpower.com . . . . . . . . . . . . . . . . . . . . . 29 STIHL | www.stihlusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 WD-40 Company | www.wd40.com . . . . . . . . . . . . . . . . . . . . . . . . . 7, 27 Werner Company | www.wernerco.com . . . . . . . . . . . . . . . . . . . . . . . 26 Wooster Brush Company | www.woosterbrush.com . . . . . . . . . . 11, 30

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91900 Overseas Highway | Tavernier, FL 33070 | www.TheHardwareConnection.com Publisher/Principal: Craig Cope craig@thehardwareconnection.com 804-690-0666 Editor/Founder/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864 Founder/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126 Marketing & Creative Director/Principal: Dan Akers dan@thehardwareconnection.com 317-797-6609

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Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com National Account Manager: Dan Beck dbeck@thehardwareconnection.com 518-852-9624 Contributing Writers: Andy Curry, Doug Donaldson, Gary Pittsford The Hardware Connection is published eight times a year by The Hardware Connection, Inc. All editorial contents copyrighted 2019 by the publisher. No editorial may be reproduced without the prior permission of the publisher.

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EDITOR’S NOTE

By Chris Jensen

How to Get Employees to Love Their Jobs

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still remember my first job, covering high school sports for the local weekly newspaper at the age of 16. When I asked my boss, the editor, how long my stories should be, he replied, “I don’t know, whatever you think is the right length.” I needed a little more direction than that, especially since I was getting paid by the word.

During my college years, I spent three summers working at a summer resort in the Catskills. The first two summers I was a dishwasher, earning minimum wage. When I asked for a raise to come back for a third summer, the owners stated that they didn’t pay dishwashers more than the minimum.

However, they did have an opening for a cook and stock manager, which paid a little more.

It was a little terrifying accepting a job as a cook, mainly because I had never cooked anything before in my life. Adding to the difficulty was the fact there wasn’t going to be any training provided. I was given a recipe and told to fix chicken tetrazzini for 300 people. The head cook did provide a few pointers along the way, in between fits of laughter, but I still remember the

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hopeless feeling of tackling a difficult task with no training.

Have you ever hired a new employee and then thrown them immediately onto the sales floor because you were short-handed? I’m sure you intended to eventually get around to training them, but on-the-job training seemed to work just fine for your other employees. Besides, who has time to train when there are so many other fires to put out?

If you want your employees to love working for your business, then you have to give them clear expectations of what their job entails and train them on the knowledge they need to succeed in their job duties. Being part of a team that is involved in the community makes your employees feel valuable, and it’s the little things that are often more rewarding than just the salary.

Turn to page 31 for an in-depth look at how Mike Solano of Solano’s Do it Best in California has created an environment in which his employees love their jobs, because there are clear expectations from the top on down and everyone understands their role in the company. n www.TheHardwareConnection.com

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TREND WATCH

By Craig Cope

Devising a Smart Phone Policy

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t has been 12 years since Steve Jobs introduced the first iPhone and many employers are still trying to determine a policy that strikes the proper balance for their employees. We have all visited a store when the clerk was too occupied with their phone to be bothered with a customer.

A simple approach to solve this problem would be to ban all personal phone usage while at work. However, is this the best approach or even realistic with today’s labor pool? Can you turn this potential distraction into a positive?

In a short period of time, smartphones have become ingrained in so many aspects of our lives. Think about how many times you have used your phone today to accomplish a normal task. The phone has become our alarm clock, calendar, camera, GPS, calculator, web browser, social media device, etc. So the question remains: do smartphones have a place in your store?

Let’s examine both the positive and negative aspects of employees having unlimited access to their personal phones.

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THE POSITIVE SIDE Increased Productivity: • Installation Instructions—The internet is an excellent resource for instructional videos (professional and amateur) demonstrating how to complete all sorts of common tasks. Install a ceiling fan, fix a leaky toilet, replace a broken electrical socket and the list goes on and on.

The videos can give the customer the confidence they need to tackle a certain project and/or identify additional tools or products they need to purchase.

• Product Identification—How many times has a customer given a vague description of a product they need to purchase? A phone can be used to browse a host of different products to help quickly identify what product the customer is searching for to purchase.

• Determining Quantity—There are numerous free apps available to help staff calculate how much of a certain product is required for the customer to complete their project, whether it’s in feet, inches, fractional inches, square feet or cubic feet. www.TheHardwareConnection.com

TREND WATCH • POS Access—Many of the popular point-of-sale providers offer apps that can access the store’s POS system, enabling the employee to view pricing, current inventory and open orders.

Improved Communications: • Translator—Stores within locations where multiple languages are common can utilize smartphones as a real-time translator. While not a perfect solution to a language barrier, these apps have come a long way to enabling communication across multiple languages. So instead of having just one employee who can speak another language, now your entire staff can speak multiple languages.

• Employee Scheduling—Scheduling employees can be difficult and often changes with little notice. With just a few taps of a screen scheduling apps can help everyone stay informed of recent changes, available shifts and total hours worked.

• Teamwork—While most effective for larger operations who rely on email, meetings, conference calls and text messages for communications, you may want to look at Slack or similar products. These communication apps are designed for groups to communicate more efficiently.

• Personal Calls/Text—Prior to cell phones personal calls while at work were sometimes extremely difficult to accomplish if not impossible. Now everyone is accessible 24/7 and relying on employees to determine if a call or text needs their immediate attention can be an extremely slippery slope.

• Inappropriate Content—We have all heard the acronym NSFW (Not Safe For Work) and in today’s connected society this has become a greater threat for employers.

How can you assure your employees are viewing or, more importantly, showing only appropriate content while at work? The short answer: you can’t.

Increased Distractions: • Customer Engagement—Using my earlier illustration, employees are too busy with their phone to bother with a customer.

Outside Security Threats: • Hackers—If your employees are using their personal phone to access company email, social media sites or company documents, then you have increased your cyber risk. Each device is akin to adding another door to your store. It must be secured with the proper safety precautions, but there are still risks.

The ultimate answer to smartphone usage in your store is one of personal preference and the makeup of your organization. Used properly, smartphones can be a great tool for your employees during their normal work activities. However, when used improperly smartphones can create a nightmare for employers. What is most important is that you have a set policy and communicate it so all employees understand expectations. n

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THE NEGATIVE SIDE

n Craig Cope is the publisher of The Hardware Connection and co-director of The Hardware Conference with his wife, Shanti.

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HARDWARE HUMOR

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HARDWARE HUMOR

Amazing but TRUE

HARDWARE

F

e or Christmas, w s. sell kids tricycle About a week as, my before Christm started 72-year-old dad nd the riding one arou arious. store. It was hil William Royall ware Royall Ace Hard .C. Mt. Pleasant, S

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STORIES

e have a reputation for great service, and frequently we will have older women in our store looking for specific help with a project, and many of them are widows. One of our team was approached by an older woman who said, “I could really use some help with replacing this part for my toilet. I lost my husband.” Our employee began to express his sympathy for her loss, when she brightened up and said, “Oh, there he is!

Harold, where were you?”

Chris Fragapane Jackson Ace Hardware Jackson, Calif.

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oman came in at closing time and needed a GM door key made. Since we were closing I jumped right on it, she paid and came back and said it didn’t work. I spent the next half hour going from the key machine to her car and trying everything I knew to make a key work in her car door.

Finally I asked her, “Does your original key work?” She replied, “No, I thought you could make me a new one.”

Dick Beal Retired retailer Merritt Island, Fla. [posted on Hardlines Digest]

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his building used to be a hardware store years ago, and the owner’s daughter used to come in and curl up in a wheelbarrow with a blanket to take a nap in the front window. We have a picture of her in the front of the store. Now her daughter comes in and gets popcorn all the time, so we have the next generation as well.

Kevin Fluharty Ace Hardware Salem, W.Va.

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How’s Business?

MIDWEST

Sales and customer counts in 2019? We’re up about 39.8 percent in the first quarter. We’ve had so much snow that the winter items have really sold well. The local economy seems to be going good. We’re in a suburban area and some big stores are going out of business, but that will probably mean we’ll have an increase in our lawn and garden sales.

Best niche categories? We’re known for selling grills, such as Weber and Big Green Egg. We also have a full rental program that we started in the late 1980s. It’s primarily handtool rental with one ditch digger. Our store caters mainly to homeowners; about 70 percent of our customers are do-it-yourselfers.

Best methods for rewarding and motivating employees? Flexibility has been the biggest thing. Employees have lives, and we want them to live their lives.

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Kelly Schattl

With scheduling, we can’t be regimented.

I typically hire extra help, so we have a payroll that may be higher than other stores, but it pays off in the long run. We schedule every two weeks, so if someone needs off, we work it out. We offer two weeks of vacation time after one year, along with three personal days.

New initiatives for 2019? We are continually remodeling the store. True Value has a good program for updating departments, and we’ll use that.

Every year we update the lawn and garden department. We’re also looking at updating the paint and nuts and bolts areas.

Kelly Schattl De Pere True Value Hardware De Pere, Wis. www.TheHardwareConnection.com

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How’s Business?

NORTHEAST

Sales and customer counts in 2019? We’re a little bit ahead of last year. The local economy is doing fairly well. We have a stable workforce of manufacturers and a good-size university and medical center.

Best niche categories? We have a huge giftware department, which is about 40 percent of the store. We’re a Hallmark greeting card store and have a lot of ornamental, decorative items. We also buy from the Amish and have several unique items that aren’t available in other stores.

Best methods for rewarding and motivating employees?

There’s not one particular thing. We do allow a lot of flexibility in work hours, and employees are given the opportunity to indicate what times they’d prefer not to work and when they’re available. Also, we’re family owned and it helps to have a family atmosphere.

New initiatives for 2019? My son just came back from a show, so we have some ideas for rearranging the store.

Claude Renninger Renco Ace Bloomsburg, Pa. 18 ■ THE HARDWARE Connection ■ March 2019

Renco Ace attracts female shoppers with giftware.

SOUTH

Sales and customer counts in 2019? January and February have been about average, similar to the previous year.

We didn’t sell as much winter products. We really didn’t have winter, just a lot of nasty rain and cold temps. We’re in downtown Nashville and the local economy has been exceptionally good. Nashville is continuing to grow and more people are moving here. Ninety percent of those who move here live in the urban area, and that’s our market. It’s been awesome. www.TheHardwareConnection.com

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Best niche categories? We sell a lot of housewares and that category is starting to grow. For the past 15 years, we have developed a strong repair business. We have a full-time employee devoted to the repair business. We repair lots of custom lighting, chandeliers and other restorations. We are the go-to place in the city for lighting repair.

We also repair small appliances.

Best methods for rewarding and motivating employees? We offer bonuses fairly regularly, multiple times a year. We give employees the independence to focus on a project or department. Employees can build or organize departments and research products. They have the freedom to experiment.

Employees get a lot of satisfaction from that kind of independence. I try not to micromanage.

Jason Mathias (right) and brother Duane Mathias of Hillsboro Hardware, which has a niche in lamp repair.

New initiatives for 2019? We updated our Sherwin-Williams paint center, and I plan on putting advertising dollars into promoting that. In housewares, we’re adding new SKUs and following customers’ recommendations.

Jason Mathias Hillsboro Hardware Nashville, Tenn.

SOUTHWEST

like coming to work.

Sales and custom- They have fun at work. We have 650 er counts in 2019? transactions a day, Each month has been and with 22 employbetter than last year.

Animal feed is ees, we keep a wellOverall, we’re up about 5 percent. The local a strong niche at Sedona Ace. economy is doing well. They’ve started build- staffed store. We have fun here and get along and don’t have turning houses, more people are moving in and over. We celebrate birthdays, have pizza and doing remodeling work. It’s been slowly barbecues. It’s like a family. increasing. Our economy is coming out of New initiatives for 2019? We are coma horrible recession and people are getting pletely redoing the lawn and garden departback on their feet. ment and adding an organic line of feed.

Best niche categories? We have a complete feed section with several dog and cat food We’ll be adding more lawn and garden furniture and pots. One of the resets will be the lines, along with barn animal feeds. We’re also store’s craft section, which has been a hit. expanding to offer more organic feed.

Kim Smith Best methods for rewarding and Sedona Ace Hardware | Sedona, Ariz. motivating employees? The employees

How’s Business? a niche with stove pipes and wood pellet stoves. We’re known for having fittings for all kinds of transitions. We also have a sheet metal fabricator who can make custom fittings. We have all the stove pipe accessories that are hard to come by.

Best methods for rewarding and motivating employees? That’s a tough one. Our employees have been with us a long time. We treat them good. We offer health care and a 401(k) with a matching percentage. We give two weeks of vacation after two years.

New initiatives planned for 2019?

Sales and customer counts in 2019? We’re about flat compared to last We’re participating in the True Value True Blue program. It’s an easy way to add year. We have an upswing in the local assortments and increase the SKUs. We economy because a lot of people are recently expanded our glue line and added moving here. The area is growing with renovations of existing homes and new a nice, four-foot section of casters. We’re also looking at adding some stains. homes being built.

Brent Eardley Best niche categories? In addition to being a hardware store, we’re a Owyhee True Value Hardware heating and cooling company. We have Nampa, Idaho

WEST

Owyhee True Value

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How’s Business?

From l to r: Ceva Courtemanche, John Williamson, Tim Wilson and Pat Anderson.

Hensel’s Ace attracts customers with 100 feet of candy.

Sales and customer counts in 2019? We’re up both months and looking good. One of the reasons: We implemented Ace’s new training program after being down last year. I believe in investing in training. With our team, the customers are having better experiences and getting everything they need. A lot of businesses in the area are down, but there is still money out there. Now we’re competing against online businesses.

Best niche categories? We have a really awesome kitchen store with a huge canning and jar selection. We have about 30 feet of small bottles, because so many people in the area are making tinctures.

We also have gift items that are locally made and 100 feet of candy. The candy and gift store does about $300,000 a year.

We’ve had the candy in the store for 18 years. It’s a fun experience for customers. We have a popcorn bar with custom sprinkles and 24 feet of bulk candy. The candy just puts a smile on people’s faces.

Best methods for rewarding and motivating employees? We have a team leader who trains employees. The team leader also keeps track of birthdays and anniversaries, and we decorate lockers and have cake for birthdays. For anniversaries, we give employees gift cards.

Bonuses are awarded based on work.

Our store participates in the mystery shopper and customer surveys. When we have really good results, we give employees gift cards. We also make sure to tell employees that they are appreciated.

New initiatives planned for 2019? This year we want to lock down a rewards program. We’re also working with Ace to develop our business-tobusiness program. Twenty-five percent of our business is from accounts.

There’s more of that business out there.

We want to go to restaurants, schools and assisted living facilities and find a way to get their business.

Ceva Courtemanche Hensel’s Ace Hardware | Arcata, Calif.

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From

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UCTS D O R P E R DWA

REVIEW

o far this winter, the only thing predictable about the weather is it continues to be very unpredictable. From the East Coast to the West Coast, the severe weather fronts keep coming through, with many having devastating impact on people’s lives, their communities and their familyowned businesses.

By Tom Chasteen

The one thing that our communities have come to rely on is when disaster strikes people can always depend on their local hardware and lumber stores to be there to help, anyway they can. Industry manufacturers and wholesalers are right there with them, supporting their efforts 24/7.

PRODUCT #1: WET DRY VACS WITH SVX2® MOTOR—SHOP-VAC CORP. One of those manufacturers, ShopVac, remains a family-owned company that remains committed to the two-step hardware channel. Shop-Vac continues to redesign and improve the products that created a whole new product category in the hardware channel. The new line of Shop-Vac wet dry vacuums are powered by SVX2®, a new “advanced motor technology.” This new motor technology offers substantially more power and a longer motor life, as well as a port connection to the back of the blower allowing the user to blow debris out of hard-to-get-to places.

We tested three different units, all with the new SVX2 motor technology.

The 16-gallon unit has a 6.5 peak HP motor and is perfect for larger job sites and applications. The 16-gallon unit www.TheHardwareConnection.com

THE HARDWARE Connection ■ March 2019 ■ 25

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weighs 32 pounds, but it comes with non-marking wheels and a fold-down handle, making it easy to transport and store when not in use. The larger rear wheels make it easy to maneuver around cluttered areas and the large latches make it convenient to remove the top to empty the tank.

The 12-gallon unit has a 5.5 peak HP motor and is ideal for small shop or garage applications. It has a blower port and a large tool storage area. The 12-gallon unit weighs 24 pounds and has four castersize wheels, making it easy to roll around on flat floor surfaces.

The 4-gallon unit also has a 5.5 peak HP motor and is strong for such a small unit. All of our testers thought this was a perfect size unit for vacuuming out cars or trucks as well as household chores. The 4-gallon unit only weighs 17 pounds and has a blower port. It also has two larger rear wheels, making it easy to roll around a driveway, but is small enough to store easily when not in use.

All of our testers liked the large vacuum hoses and they commented on the ability to attach the hose to the blower port, giving the SVX2 units the ability to blow debris out of areas that are hard to get to with onboard tools.

Shop-Vac is the company that created the wet dry vacuum category, and they continue to set the standard in this product category.

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PRODUCT #2: BUILDMAN™ DRYWALL SCAFFOLD METALTECH Metaltech has come out with a heavy-duty, industrial-grade scaffolding product called BuildMan™. This scaffolding has 1-¾” to 1-½” steel frame, 6” heavy-duty non-marking wheels and a 5/8” wood platform with an easy-to-use access door that allows the user to climb through the platform floor vs. climbing on the outside of the scaffolding, making it much more stable. The new BuildMan series also has a 1,500-lb. load capacity and has optional outriggers to make it even

more stable to move around. Like other Metaltech products the platform is completely adjustable, making it easy to adjust the height of the working platform from 29” to 71” to match the job requirements.

All of the metal components are powder coated red and gray for superior rust protection. The wheels are six-inch HD swivel casters that lock and unlock securely using your foot. You can even attach one set of scaffolding on top of another, increasing the working height to almost 18 feet. There is an optional guardrail system attachment for additional safety. One complete scaffolding set weighs 180 pounds, but it easily breaks down for storage or transportation. If your industrial/ commercial or contractor customers are looking for an easy to assemble and sturdy scaffolding system, then Metaltech’s BuildMan Scaffolding could be just what they need.

PRODUCT #3 AND #4: MULTI-PURPOSE DRILL BIT SET / TUNGSTEN CARBIDE GRIT HOLE SAW SET—ARTU-USA ARTU-USA has some unique drilling and power tool accessories. Recently, we tested the three-piece Multi-Purpose Drill Bit Set (9/16”, 5/8” and 3/4”) and the Tungsten Carbide Grit Hole Saw Set (1-¼”, 1-½”, 2-1/8” and 2-½”). All of our testers were impressed with both of these products, both by how well they worked and the variety of products they would cut through.

The multi-purpose drill bet set surprised all of our testers. The one comment that all of our testers mentioned was how cleanly the drill bits cut on all

Stop by the ARTU booth at a future the products they used them on (steel, show and try them for yourself. Click plexiglass, wood, fiberglass, masonry and even granite). These drill bits look here for the video. similar to a regular masonry bit, but all of our testers said that was where the similarity ended. The new design makes for faster removal of the cuttings being drilled.

The Tungsten Carbide Grit Hole Saw Set was equally impressive, according to our testers. At first glance, the tungsten grit that rings the cutting end of the hole saw looks as though it would leave a rough cutting surface, but that was not the case. Like the multi-purpose drill bits these hole saws cut multiple materials (wood, brick, PVC, fiberglass, concrete block and even ceramic tile) with equally impressive results.

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How to Get Your Employees to FEATURE

LoveYou

By Chris Jensen

M

ike Solano has a pretty good idea why his employees love working at Solano’s Do it Best, which operates four stores in northern California. After all, he has created a work environment where there are no surprises.

In explaining why she loves working for the company, Cookie Reynolds, manager of Solano’s Alpine Hardware in Mt. Shasta, quotes Winston Churchill, who once said, “If you find a job that you love, you will never have to work again.” Adds www.TheHardwareConnection.com

Solano’s Do it Best team members include left to right: Dane Nichols, Owner Michael Solano, Michael Schweitzer, Laurie Von Redowski, Cookie Reynolds, Jacques Bleisae and Michael Kobseff.

Reynolds, “That is exactly the way I feel about my job at Solano’s.”

Read on to discover the secrets to Solano’s success at operating stores full of happy, motivated and proud employees.

TRAINING WITH A PURPOSE Solano’s Do it Best dates back to 1975. The company includes a home THE HARDWARE Connection ■ March 2019 ■ 31

FEATURE center and a rental center in Weed, Calif., and a contractor yard and a hardware store in Mt. Shasta, Calif.

There is very low turnover for the 37 full-time and 11 part-time employees.

Two employees have been there more than 20 years, while 12 have been there over a decade.

Having a happy, motivated staff all starts with an extensive training program, which is designed to get new hires to learn store values. Leaders explain the company organization chart and how the company is organized by roles and responsibilities. Next, they get a written job description.

“Clearly understanding the job description is pretty important.

Expectations are clear right from the start,” says Solano, who adds that it took some time to build an organization chart and roles.

When interviewing potential new hires, all store leaders know the person has to smile. “If they don’t smile, they don’t fit the role of helping customers on the sales floor. We also look for a sense of humor,” says Solano. Candidates who don’t fit these characteristics can still be considered for back-office roles.

New hires go to lunch with a crosssection of leaders across the business, which helps them understand different roles so they feel part of the team. It is important that they learn the roles of the office. They are then partnered on the floor for the first 30 days.

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Michael Solano has built a successful fourstore business in northern California by developing a culture of accountability, empowerment and expectations for employees.

Employees are randomly selected each day to partner with a new hire, which furthers their learning of different parts of the business.

“Existing employees take pride in helping mentor new hires,” Solano says.

CLEAR EXPECTATIONS Solano developed what he calls “Team Member Agreements,” which are a very big deal and spell out expectations for performance and accountability with 13 bullet-point guidelines. One of the rules is don’t gossip or complain—be issue-based, not blame-based.

“Zero gossip is allowed in the company. It’s clearly understood by all the leaders,” says Solano. “I love teaching other store owners about the Team Member Agreements. When you have an issue with an employee you can point to the agreement and ask where that’s working out. It’s posted in the breakroom and on the company intranet. Nothing is unclear to them www.TheHardwareConnection.com

Solano’s Do it Best looks to hire employees who smile, like Jessie Brandon (left).

and how we work with customers, the community and each other.”

In the beginning, new hires undergo performance evaluation every week. “We keep referring to the Team Member Agreement to see how they are fitting in,” Solano notes.

Research shows that mismanagement of expectations and insufficient onboarding are two of the biggest reasons why retail employees quit a job. That doesn’t happen at Solano’s. As soon as they are hired, employees know exactly what the job entails and are quickly taught how to complete their tasks.

The expectations are defined more fully in a “Value” statement that is shared with all new hires and varies by store. For example, here are some of www.TheHardwareConnection.com

the descriptions contained in the Alpine Hardware “Value” statement: • A unique experience of visiting an alpine, mountain lodge that is warmly inviting, friendly and engaging. The store has many interesting items to see and affordable items to buy for a customer’s home improvement and home enhancement needs. The experience more than the purchased item brings people back.

• Intimately linked with other Solano’s stores, the target customer for this store is the general public and homeowner, but attracts interested tourists and fulfills many basic needs of a contractor.

The atmosphere and environment of the store is visually entertaining, with a warm feeling of sitting around the fire with friends and family.

• Like an old-fashioned general store that gives personalized service and has been around the town for many years, this store gives a sense of history with the community. Here, the customer feels relaxed and stress free no matter how difficult or complex their project.

By fully describing the expected customer experience, Solano’s “Value” THE HARDWARE Connection ■ March 2019 ■ 33

FEATURE statements help the employees visualize how to deliver on that experience.

The Home Improvement Center “Value” statement describes how the team interacts with the customer differently than other stores, engaging with them in light of their dream to improve their home rather than just trying to sell them something.

The Contractor’s Building Supply “Value” statement compares the store’s function to an ATM. An ATM is conveniently located, utilitarian, is able to make quick transactions and always has what you need. That is the “value” contractors buy from Solano’s Contractor’s Building Supply.

Michael Kobseff (right), contractor sales manager, loves working at Solano’s Do it Best because his boss, Michael Solano (left), is supportive and stands by his employees.

inspections with a clipboard and talk about how the store looks,” Solano says. “They don’t have to do everything the same in each store. You get 10 times the value when you don’t micromanage them.”

The job description for store manager notes they report to the operations manager and lists a three-sentence POWER OF LEADERSHIP Solano is a firm believer in the hidden purpose. It details 14 things they are responsible for such as being a profespower of leadership, and he follows the sional-acting leader whose behavior concept that there is power in the chair of leadership. “Leaders clearly know they results in the team member’s respect. It outlines 10 performance expectations sit in the chair every day. Leaders can such as “lives and promotes the ethics never have a bad day and always have to be on point. I have 10 dynamic leaders and values of the company.” Finally, the store manager job description lists five who are great examples,” he says. performance measurements, expecSolano leads while working from tations and outcomes such as “Team a home office, entrusting his managmembers are engaged, productive and ers to take care of day-to-day issues in function with high morale.” the stores. “I developed a dashboard It is hard to maintain a staff of happy, and can see every day what the staff is motivated employees if they don’t see doing. They have goals and I let them lead. I go in the stores twice a week, but career opportunities. At Solano’s, an I might talk to them two to three times a emphasis on promoting from within ensures there is room to grow, while day if necessary,” he says. the company’s growth from one to four All of Solano’s leaders have guidestores has created jobs and opportunity. lines and expectations. “I do monthly 34 ■ THE HARDWARE Connection ■ March 2019

www.TheHardwareConnection.com

Owner Michael Solano (left) lets team member Michael Schweitzer know his contributions are appreciated.

CONTRACT OF EXPECTATIONS

Mount Shasta looms over Solano’s Do it Best Alpine Hardware in Mt. Shasta, Calif., symbolizing the heights employees can scale in their careers with the company.

Another important element is Solano’s Contract of Expectations (COE). The COE covers what, why and when. What are we doing? Why are we doing this? When does this have to be completed?

“Failure arises when you allow a task to drag on. There is no deviation from the COE, although we can always clarify,” says Solano. “From the janitor up to the leaders it’s very clear how we communicate on a daily basis.”

He points out that the new generation of employees wants to know how they are contributing to the company. They want more “why.”

Solano says, “We are not a sneaky company. We are not trying to catch anyone off-guard, so we don’t do mystery shops. That puts a division with employees. We as a group communicate consistently with customers all the time.”

employees to evaluate the store experience,” Solano says.

Motivating employees starts first with the leaders. “If the leaders are given clear goals and expectations and allowed to make the stores what they want them to be, then it trickles down to the rest of the staff,” he points out.

“Employees want to know their input is valued. Everyone is encouraged to speak when something is being considered. We make decisions as a team, but once a decision has been made it’s time to move forward,” Solano adds.

The company supports every local event or fundraiser that is presented to them. As Solano explains, “We don’t tell people no. Leaders attend community events as a representative of the company and it makes them feel good.”

EMPOWERING EMPLOYEES

PROFIT-SHARING PLANS

Empowering employees starts with being a good listener. “We listen more than tell them what to do. We get a lot of feedback from customers and from

Doing lots of training, setting clear expectations and delegating authority are all great, but it’s hard to keep employees happy if you don’t show them the

www.TheHardwareConnection.com

THE HARDWARE Connection ■ March 2019 ■ 35

FEATURE money. Not surprisingly, there is a concise plan for that at Solano’s Do it Best.

Each year leaders are given a clear budget based on factors such as the economy and predicted weather. “We are usually pretty close,” Solano says.

“We devise sales goals, shrink goals and fixed expense goals for heat, power and wages. Wages need to be a certain percentage of sales and leaders know how much to spend each week.”

The Performance Plus bonus budget every month includes goals for sales and margin dollars. “It is very clear to every leader what those goals are. During the month they communicate to employees where the store stands. Everyone gets the bonus, even new hires,” says Solano, who adds that they have only missed the margin dollars goal a few times.

If the company exceeds the budget for the year, then a cost of living raise of 3 percent is given to everyone.

Yearly performance reviews are given to each employee and if goals are met there is a discussion with the store leader and employee on what the wage should be.

“I don’t give discretionary bonuses.

Everything is based on the goal of how the company is doing,” Solano points out.

The employee benefits package includes health care, paid vacation and paid sick days. Solano also pays staff 20 percent more than the industry average. “To me that’s fair because their expectations are higher.

We want our employees to live in the

community without the stress of living paycheck to paycheck,” he says.

36 ■ THE HARDWARE Connection ■ March 2019

www.TheHardwareConnection.com

WHY EMPLOYEES LOVE WORKING THERE Solano’s entire business plan is focused on employees. He understands that the company can only maximize sales and profits if employees buy into the plan and deliver on expectations on a daily basis. Ultimately, it boils down to a simple question: how do employees like the work environment Solano has created at his stores?

Michael Kobseff, contractor sales manager at Solano’s home improvement center in Weed, notes that many of his friends have been forced to move out of the area in search of a career.

Here are the reasons Kobseff gives for why he loves working at Solano’s: “Knowing that my boss is supportive and stands by his employees. Everyone works as a team. Solano’s has a Team Member Agreement, which is huge.

Most companies don’t have this.

Solano’s gives back and helps support our local community and organizations. There is room to grow and move around the company. I’m truly proud to tell people I work at Solano’s.”

Store Manager Jesse Loucks says the main reason he loves his job is the owner, Mike Solano. “He respects and cares for every single team member that works for Solano’s. He values our input. He gets the team members involved in decision making to better the company. He asks us

Four Things I Love About Working at Solano’s 1. Team work is hard to come by, but it’s one of the many things Solano’s does very well.

2. Knowing that what I do is important and appreciated. Not every job makes you feel that way. At Solano’s you always know how important your role is within the company, whether you are a retail sales associate or a corporate team member.

3. Customer service—We pride ourselves on customer service, which is something not every place of employment works hard to achieve. We have great relationships with our customers.

4. Room for growth—We may be a smaller company, but there is room for promoting and growth. The company itself is growing, creating more jobs and opportunities.

Melissa Phillips Marketing and Advertising Solano’s Inc. Corporate Office what our thoughts are, what we have heard from customers, what we have personally experienced outside of Solano’s, all to better our work experience and make sure that the team is enjoying their job and feels like they are a big part of Solano’s. He advances those he sees potential in, which will make a difference for the good of the team member, the team they are leading and the department they are working in,” Loucks says.

Loucks adds, “Another reason is the great team members that I get to work with www.TheHardwareConnection.com

daily. All are passionate about their job and it makes for a great work environment.”

Karen Cabron, office manager, says she loves working at Solano’s because the owner makes employees feel important, that they have a personal stake in the company and that they are made to feel they are the reason the company is successful.

She adds, “It’s a family atmosphere with management and fellow team members. Owner leaves management free to manage, stepping in only when necessary. We have competitive wages and good benefits. I know what is expected of me and I work in an atmosphere of trust and respect.”

Cookie Reynolds notes that in the 13 years she has been with the company there have been several changes, but the quality of the leadership, the integrity and the confidence in the employees is something that has always been a part of the foundation of the company.

“Having a leader that isn’t afraid to take chances has been the key to the success of Solano’s. As a leader in this company, knowing that I will have the support behind me allows me to feel confident in my decision making and abilities to lead my team successfully,” Reynolds says.

She adds, “Solano’s is very much involved in our community around us. We strive to support each and every school, event, fundraiser and sports league. With the support of our communities, we are able to give back and contribute to these organizations, which is very humbling. I truly love my job at Solano’s.” n THE HARDWARE Connection ■ March 2019 ■ 37

WHOLESALING

with

Q&A Orgill President Boyden Moore

Memphis-based Orgill Inc.

announced last October that Ron Beal, Orgill’s long-time chairman, president and CEO, would drop the president title but remain the company’s chairman and CEO. Boyden Moore, who had been serving as Orgill’s general manager of retail, as well as presiBoyden Moore is the new president of Orgill Inc. dent of the company’s subsidiary, Jensen: As you take over your new Tyndale Advisors, assumed the posi- responsibilities as president, following in the footsteps of Ron Beal, how would you tion of Orgill president on January characterize your leadership style? What 1, 2019. He becomes only the ninth have you learned from working alongside the past few years and will there be president in Orgill’s 172-year-history. Ron any new areas of emphasis?

Moore: It’s a bit intimidating for sure to Editor Chris Jensen interviewed Moore in Ron’s footsteps and in the shadow about his new role with the industry’s follow of the very impressive growth he’s led us to achieve at Orgill. I’ve been very fortunate to largest independent distributor.

38 ■ THE HARDWARE Connection ■ March 2019

Orgill opened its seventh distribution center in Post Falls, Idaho, in 2017.

work with him and the executive team over

that knowledge for us to execute it suc-

the past several years, and that’s really the

cessfully. The great thing is, I’m only one of

key. Ron and I share a strong belief that we

many executives with deep experience as a

succeed as a team at Orgill. One of the key

retailer. Brett Hammers, Phillip Walker, Jeff

things Ron has taught all of us is how pow-

Curler, David Mobley and John Sieggreen

erful an impact a lot of small incremental

are just some of our team with a foundation

improvements can drive—just making mul-

in retailing.

tiple things a little better added together can

Jensen: Orgill has a 172-year history of

create an impressive impact. The “what”

adapting to industry change. What have

won’t change— who we are, our mission,

you learned about the company culture

our values and ethics. The “how” is always

that you want to continue? How does your

changing as we find better ways to do

new world headquarters building support

things, or new ways to “help our customers

future growth?

be successful.”

Jensen: How has your career on the

Moore: The company’s culture is rooted in carefully listening to our customers. I

retailing side prepared you to tackle your

actually have more experience with Orgill’s

new role as president of a large distribu-

culture as a customer than as a member

tion company?

of the team. As a customer, I was always

Moore: The more we can know about our

impressed with how accessible and truly

customers’ business and the challenges they

interested Orgill was in our business and

face every day really helps us in building

success. The way the salesperson was

better solutions for them and being a better

involved in our business really made him

partner to them. Our mission “to help our

part of our team internally. Joe Orgill, Ron

customers be successful” really requires

and the executive leadership were always THE HARDWARE Connection ■ March 2019 ■ 39

WHOLESALING there to shake my hand at shows and were

Jensen: Do you anticipate adding or

genuinely interested in our business. I can

expanding distribution centers in the

tell you that I always found that compelling

near future and are any major technology

as a customer. That deep listening and genu-

enhancements in the works for distribu-

inely caring about our customer is lived out

tion centers? How has the new Idaho DC

throughout the organization from top to bot-

been operating?

tom and will always be who we are.

Moore: As discussed above, we’re

We are currently only using three-quarters expanding in Kilgore, Texas, and adding of the space in our new office in Memphis,

a new DC in the Northeast. We’re always

so we have plenty of room to grow there.

evaluating new technology, automation and

Jensen: What major initiatives are on tap for Orgill in 2019?

Moore: We continue to improve our services, grow our business and continue

ways to do things more efficiently. We’re very pleased with the Post Falls DC and the improvements it enabled us to make for our customers out West.

to invest in that growth. We’re currently

Jensen: Amazon continues to steal

expanding our Kilgore, Texas, distribution

market share away from independent and

center by 500,000 square feet. We’re also

big-box hardware retailers. What is Orgill’s

in the early process of selecting a site for

strategy for helping its retail customers

a new distribution center in the Northeast.

compete in the e-commerce arena? By the

We’ve launched a new Integrated eCom-

same token, how can Orgill help retailers

merce solution last year with Unilog that

seize market opportunities?

we’re very excited about. Those are a few

Moore: We introduced a new Integrated

major initiatives, but continuous improve-

eCommerce solution for our retailers last

ment in a lot of little things is where we

year that is really unique. Our vision is to

spend much of our effort.

bring the physical store and brand to the

Jensen: How pleased are you with the

website and the website into the physical

expansion into Canada since forming the

store. We think it is important to have the

Orgill Canada division in 2016 and what

website truly complement and reflect the

goals do you have for that segment of your

physical store and local brand. Localized and

customer base?

integrated assortment reflected on the web-

Moore: We’ve made some great progress

site, integrated pricing so that what is online

in Canada over the past year and are very

is the same as in-store, integrated on-hand

pleased with the growth and improvement.

inventory and delivery date, and integrated

We look forward to continuing to grow that

marketing tools bring everything together

business along with our U.S. and interna-

and are all components of our Integrated

tional business.

eCommerce solution.

40 ■ THE HARDWARE Connection ■ March 2019

Jensen: How would you describe the unique advantages Orgill offers to retailers?

Orgill’s recent spring dealer market in Orlando, Fla., covered one million square feet.

Moore: Orgill has been around 172 years and has been the fastest-growing distributor

executing our mission to help our customers

in our industry for more than 20 years. That’s

be successful. As long as we are doing that, I

true because we earn our customers’ trust

think we’ll continue to grow. Successful cus-

doing what we say we’ll do, having the prod-

tomers grow and they drive growth for us.

ucts our customers need, delivering what is

Jensen: What are the biggest challenges

ordered quickly, in full, and on time. We have the largest and most experienced field sup-

facing Orgill over the next 3-5 years?

Moore: Over the next several years we

port team in the business who bring incredible

expect increased advancement in speed and

value to our customers. On top of our strength

technology. Retail is always evolving and we’ll

in distribution and field support, Orgill has

continue to evolve and drive solutions to fulfill

assembled and constantly improves on the

our mission. You can imagine how much the

best suite of retail services and brand building

company has had to adapt to new challenges

tools to help our customers be successful.

over 172 years. Tackling the next challenge is

Jensen: In 2017 Orgill reached $2 billion

part of our company culture. It’s in our DNA.

in sales. What does the tagline “Two Billion

Jensen: With the ongoing concern over

and Beyond” mean to you and how do you

China tariffs are there any plans to shift

foster the innovative growth strategies to

your strategy with the private-label offering

take achievement to another level?

available through Worldwide Sourcing?

Moore: We reached $2.5 billion this year

Moore: What our Worldwide Sourcing team

and continued to grow faster than other

does seems to always be shifting. We didn’t

national distributors. “Two Billion and

name it China Sourcing for a reason, even

Beyond” helped us celebrate a milestone

though a lot of product comes from China.

to be sure, but we’re focused on what’s

We’re watching that closely and will adjust in

next. What we’re really proud about is that

whatever way we need to keep our customers

our growth is the direct result of effectively

competitive with those products. n THE HARDWARE Connection ■ March 2019 ■ 41

Beacon Awards Set the Stage at Hardware Conference

THE HARDWARE CONFERENCE

I

f the long, cold winter weather has you dreaming of warm, sandy beaches, then we have a good idea for you. Start making plans to attend the 2019 Hardware Conference, set for August 16-18 at the JW Marriott Marco Island Beach Resort in Marco Island, Fla. The event, now in its 31st year, is the industry’s largest event bringing together independent retailers regardless of wholesaler affiliation.

The Hardware Conference offers the perfect opportunity to find ways to improve your business while having fun at a world-class resort right on the Gulf of Mexico, with miles of sandy white beaches.

Following a $320 million renovation and upgrade to JW Marriott status, the resort offers an oasis of luxurious comfort with activities designed for the whole family. You can check out the latest new products from leading vendors during open exhibit hours.

The Conference schedule leaves you and your family plenty of time

to enjoy three swimming pools, a wide variety of water activities, spa services at the newly remodeled Spa

by JW® or a relaxing walk along the white sand beach.

Conference directors Craig and Shanti Cope host a family-friendly, affordable event that provides independent retailers with a forum for sharing ideas and discussing business issues with key suppliers.

42 ■ THE HARDWARE Connection ■ March 2019

www.TheHardwareConnection.com

Upper: The Hardware Conference is set for August 16-18 at the newly remodeled JW Marriott right on the water in Marco Island, Fla. Lower: The 2019 Beacon Award winners will be honored during an awards banquet on Friday evening.

Sponsors:

Co-Sponsors:

Retail attendees have a chance for one-on-one dialogue with vendors.

The industry’s premier event for the independent retail hardware channel offers an awards program that was launched in 2013 to recognize the “best of the best” retailers. The Beacon Awards are co-sponsored by The Hardware Conference and The Hardware Connection. Additional sponsorship support comes from Apex Tool Group, Epicor, Rust-Oleum, Ace Hardware, Do it Best Corp. and Orgill.

In addition to Retail Beacon Awards for each of the participating wholesalers, the awards banquet honors the industry’s best new stores in two categories: over 20,000 square feet and under 20,000 square feet.

The 2019 Beacon Awards banquet will be held Friday evening, August 16, at the JW Marriott Marco Island.

Winners will receive all-expense paid trips for two to the 2019 Hardware Conference including conference registration, airfare, hotel and meals. They will also receive a special Beacon Award trophy www.TheHardwareConnection.com

and be featured in an article in The Hardware Connection.

Get your nominations in now for the Best New Store category—the entry deadline is May 1, 2019. For more information on the nomination process, contact Chris Jensen at chris@thehardwareconnection.com.

Leading vendors participate in the Conference with tabletop booths showcasing their latest product introductions. Dealers can engage in informal conversations with manufacturers without the pressure of buying, both during exhibit hours and at meal functions and receptions.

The Conference is designed for the whole family, with Saturday afternoon set aside with vendorsponsored golf, beach activities, a shelling excursion and Everglades airboat excursion. For more information, go to www.thehardwareconference.com or contact Craig or Shanti Cope at 305-853-0049. n THE HARDWARE Connection ■ March 2019 ■ 43

CONFERENCE2019 AUGUST 16-18

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 will offer full-day, hands-on training sessions for 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 2019 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

HAND AND POWER TOOL TRENDS Sales of Pliers (Independent Hardware Channel) 12 Months % Change vs. Year Ago Pliers: Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 .9% Pliers: Dollars . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 .7% Source: Vista Information Services, div. of Epicor Software Corp.

Unit Sales Breakdown for Pliers Total of 1,417 Items with Sales Total Category Top 5 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 .6% Top 10 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 .9% Top 20 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 .3% Top 30 Items % of Unit Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 .8% Source: Vista Information Services, div. of Epicor Software Corp.

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

99

100 90

88

104

97

108

105

79

80 70

98

107 106 103 108

Jan. 2018

Feb. March Apr. 2018 2018 2018

May June July Aug. Sept. Oct. Nov. Dec. 2018 2018 2018 2018 2018 2018 2018 2018

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

Pliers Share of Sales by Type (Latest 12 Months) Tongue & Groove Snip Cutter Locking Crimp & Strip Long Nose Plier Set Lineman Slip Joint Other

3.0%

4.9%

8.7% 7.8%

4.5%

www.TheHardwareConnection.com

13.9% 13.7% 13.1% 12.2%

18.2%

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 ■ March 2019 ■ 45

HAND AND POWER TOOL BUYING UPDATE • Global power tool demand is projected to increase 3 .9% annually to $30 billion in 2021, according to The Freedonia Group .

• The residential tool user segment is projected to see annual growth of 5 .9% through 2022, according to Allied Market Research, outpacing tool sales to pro and industrial users .

• An improved and stable construction market is expected to keep sales of hand and power tools on the upswing in 2019 . However, the labor market shortage in construction has led to increased emphasis on tools that last longer and work more efficiently and safely .

• OSHA has new, more stringent regulations for silica dust exposure .

In response, tool manufacturers are Upper: Little Hardware in Charlotte, N.C., developing onboard dust-extraction features a dominant assortment of power attachments for cordless tools such tools targeted to pro and industrial users. as rotary hammer drills and offerLower: Jackson’s Hardware in San Raphael, ing grinder shrouds and other dustCalif., is a destination for hammers. mitigation products .

• Sales of metal-cutting tools will programs targeted to industrial and lead the industrial market, drivpro users . ing a compound annual growth • The introduction and refinement rate of 4 .9%, according to Future of brushless motors continues to Market Insights . transform the power tool catego• Safety and ergonomics continue ry, leading to technology applicato drive hand tool design improvetions that enable users to customments . Some hand tool manuize their settings . n facturers offer hand tool safety 46 ■ THE HARDWARE Connection ■ March 2019

www.TheHardwareConnection.com

HAND & POWER TOOL PRODUCTS

WAVETECH™ SAFETY KNIVES

• Hyde Group has introduced two new safety utility knives for industrial and backroom use that better protect both workers and their work-products by controlling the LUFKIN® SHOCKFORCE™ TAPE MEASURE depth of the cut .

• Crescent Lufkin® Shockforce™ Tape • Available in top-slide and side-slide modMeasure features patent-pending, els, HYDE® WaveTech™ Safety Knives two-sided blade design and an industry-leading 14 feet of unashave “wave” stops molded into the body sisted standout . of the knife that control the depth of the • The compact design features steel blade for multiple blade exposures . “roll bars” to protect the lock but• The wave design works by applying preston against drop impact damage, sure from your finger or thumb to the while the diamond-coated end hook self-retracting blade shuttle, which stops provides 50 percent more hook the blade at the intended exposure . This grasp to prevent surface slippage . allows a user to easily and reliably select • The dual-sided print combined and keep the correct blade exposure on with enhanced print size and clean the fly . design provides superior legibility • WaveTech™ knives are self-retracting and for quicker measuring . carry many safety and convenience fea• Crescent Lufkin® Shockforce Tape tures, including wide thumb slide, rounded-tip utility blades, comfortable grip and Measures will be available in 16’, lanyard holes .

25’ and 35’ sizes .

Hyde Group Apex Tool Group www.hydegrp.com www.crescenttoolco.com 508-764-4344 919-362-1670 www.TheHardwareConnection.com

THE HARDWARE Connection ■ March 2019 ■ 47

HAND & POWER TOOL PRODUCTS

CORE18V BATTERY MAGNETIC PICK-UP TOOLS • Mayhew has added 9 new Magnetic Pick-up Tools to their CatsPaw™ product line, as well as two pre-packaged display sets for the 1-1/2 lb . and 2-1/2 lb . capacity tools with 30 pieces each .

• All of the tools feature strong neodymium iron-boron to aid in lift capacity, which ranges from 1-1/2 lb . to 10 lb .

Their streamlined pocket clip keeps the tool secure and easily accessible .

• The magnet slide ring, included on the 2-1/2 lb ., 5 lb . and 10 lb . capacity Magnetic Pick-up Tools, shields the sides of the magnet from attaching to unwanted metal surfaces to increase the power of the magnet, while their textured cushion handles provides secure grip under the toughest work environments .

• In addition to the 2-1/2 lb . tool’s standard black color, it is available in orange, green and blue, while the 1-1/2 lb . tool is available in orange, green and red .

Mayhew Steel Products/Mayhew Tools www.mayhew.com 800-697-8665 48 ■ THE HARDWARE Connection ■ March 2019

• With the help of greater power efficiency found in 21700 Lithium-ion cell technology, Bosch has developed the GBA18V40 CORE18V 4 .0 Ah battery to bring all of the capability of the original CORE battery into a smaller, lighter package . The new cell introduces much more active battery volume in a pack that’s only slightly larger than the previous 20700 cell packs .

• The battery is designed to make day-to-day work easier, particularly repetitive applications and overhead tasks . The Bosch design allows the power cells to be arranged in a single layer, which adds to a smaller and lighter battery .

• Bosch CoolPack 2 .0 technology advances the lifetime of the battery as well, delivering up to 135 percent longer life versus conventional batteries without CoolPack .

• Bosch CORE18V batteries provide 100 percent compatibility with all 18-volt Bosch Lithium-ion tools and chargers .

Robert Bosch Tool Corp. www.boschtools.com 877-267-2499 www.TheHardwareConnection.com

IN THE NEWS NEW STORES: • Manager Heath Elings bought Conrad Building Center in Conrad, Mont., from John McFarland.

• Travis Wheatly will be opening an expanded Do it center store in a new location in Riverside, Calif.

• David Majure has opened his second store, McFarland Ace, in Northport, Ala.

McFarland Ace

• Shawn Evans opened a new location for Landrum Hardware in Landrum, S.C. • Sterling Hudgins is opening a third M &M Building Supply location in Mathews, Va. • Busy Beaver is opening a new store in Elkins, W. Va.

Busy Beaver

www.TheHardwareConnection.com

• Trevor Miller added a second location of M & S Hardware in Lehighton, Pa. • Griffin Lumber & Hardware has M&S Hardware acquired Blake Supply in Griffin, Ga. • Orofino Builders Supply doubled its store size with a new location in Orofino, Idaho.

• Patrick Building Supply Owner Scott Moore opened Mountain View Home & Hardware in King, N.C. • Nelson Ace Hardware has moved into a new, larger store in Whitefish, Mont.

• Richard Hobbs, owner of 106-year-old Simonson Lumber, has acquired 130-year-old Mathew Hall Lumber in St. Cloud, Minn.

• Joe Burks has opened his second Wholesale Lumber location, expanding into Clint, Texas.

• Mid-Cape Home Centers has acquired Wood Lumber Co. in Falmouth, Mass.

• BMC has acquired Locust Lumber, with three stores in Charlotte, N.C. • Jeff, Rob and Mary Helen Petersen opened J&R’s Ace Hardware in Porter, Texas.

THE HARDWARE Connection ■ March 2019 ■ 49

IN THE NEWS KUDOS TO:

Iowa, was honored with the Courier’s Diversity in Business Award for 2019.

• Akard’s True Value Hardware in Zionsville, Ind., was honored with True Value’s “Best Hardware Store in Town” award.

• Eikenhout Inc., based in Grand Rapids, Mich., with 9 locations, is celebrating its 125th anniversary this year.

• Worth W. Smith Hardware, with 6 stores in New York and WHOLESALERS IN THE NEWS: Pennsylvania, is celebrating its 90th anniversary in 2019.

• Ace Hardware Corp. reported record • Central Lumber & Hardware fourth quarter 2018 revenues of $1.39 in Harlowton, Mont., is expanding billion, an increase of 5.7 percent from its retail store and adding a drivethe fourth quarter of 2017. Net income through lumberyard. was $25.2 million for the fourth quarter • Josh Brown, vice president of 2018, an increase of $11.0 million of sales at Bliffert Lumber from the fourth quarter of 2017. Full& Hardware in Milwaukee, year revenues were a record $5.7 bilreceived the NARI (National lion, up 6.1 percent from 2017 revenue.

Association of the Remodeling Net income for fiscal 2018 was $128.2 Industry) Professionalism Award million, a decrease of $19.2 million, Josh Brown and Presidents Award for 2018. from fiscal 2017. “Strong new store • Westhoff Mercantile Lumber & growth, increased same-store sales Hardware in Edna, Texas, is celebratand a 43 percent increase in aceharding its 130th anniversary in 2019. ware.com revenues helped us real• The Altoona Chamber honored Porter ize a healthy 5.7 percent increase in Do it Best Hardware & Rental in revenues during the fourth quarter,” Des Moines, Iowa, as its small busisaid John Venhuizen, president and ness of the year.

CEO. “The 6.1 percent full-year growth • Clement True Value Hardware in fueled our $142 million dividend distriSeverna Park, Md., is celebrating its bution to shareholders.”

50th anniversary.

• Orgill and Unilog are collaborating • Ace Hardware Corp. was named on a new promotional e-commerce one of the “best and brightest” comprogram that enables Orgill dealers panies to work for by the National to establish an e-commerce presence Association of Business Resources. quickly and at a low monthly invest• Speller’s True Value, owned by ment. Each month, Orgill will feature Wendell and Allen Speller in Waterloo, items that its dealers can choose to 50 ■ THE HARDWARE Connection ■ March 2019

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IN THE NEWS promote on their e-commerce site, allowing customers to place online orders for these items and conveniently pick them up at their local store.

This new offering is in addition to the integrated e-commerce program that Unilog launched in conjunction with Orgill last August.

with her husband Raymond, passed away February 17 at the age of 75. They previously operated hardware stores in Lake George and Fort Edward, N.Y. She is survived by her husband, daughter Barbara DeNardo, son Raymond Perry and four grandchildren.

FULL STORY:

OTHER NEWS:

• Update on China tariffs. Click here.

• Sears saved from bankruptcy. Click here.

• Independent We Stand has launched the fourth annual America’s Main TRUE VALUE BUILDING NEW DC Streets contest, presented by STIHL. Nominations and voting take place on True Value Company announced a MainStreetContest.com. strategic investment of $150 million in • Spahn & Rose Lumber Co., founded supply chain optimization including a in 1904 and based in Dubuque, Iowa, brand-new, cutting-edge distribution has acquired Dunn Lumber, based center in Hanover Township, Pa., that in Lake Geneva, Wis., and founded in is slated to open this fall. It will be the 1894. Dunn Lumber’s current owners, first ground-up DC built by True Value brothers Terry and Mike Dunn, are plan- in more than 30 years.

The 1 million square feet of distribuning to retire after the sale. Says Dave tion space, currently under construcDavis, CEO of 24-store Spahn & Rose, tion, is expected to support the entire “We have no plans to change Dunn Northeast region, which consists of Lumber’s name, marketing focus or more than1,000 retail locations. local management.”

“True Value is excited to make this substantial investment to develop a world-class supply chain and distribution operation in Hanover Township,” said John Hartmann, True Value president and CEO. “The new facility will help alleviate congestion in our Dunn Lumber other distribution centers, provide the highest in-stock rates and position our network IN MEMORY: to support our retailers’ growth with greater flexibility and service.”

• Barbara Perry, who operated The True Value currently operates 13 distriHardware Store in Lake Luzerne, N.Y., bution centers. n www.TheHardwareConnection.com

THE HARDWARE Connection ■ March 2019 ■ 51

UPCOMING EVENTS MARCH Ace Hardware Corp. Spring Convention March 26-28, Orange County Convention Center, Orlando, Fla. Blish-Mize Spring Market March 21-23, Overland Park Convention Center, Overland Park, Kan. Hearth, Patio & Barbecue Expo March 14-16, Kay Bailey Hutchison Convention Center, Dallas LMC Annual Meeting March 21-23, Tampa Convention Center, Tampa, Fla. Reiss Wholesale Hardware Trade Show March 23-24, Brooklyn, N.Y. Southern Hardware Company Spring Market March 27-28, Tunica Road House Casino, Robisonville, Miss.

Wallace Hardware Spring Market March 27-29, LeConte Center, Pigeon Forge, Tenn.

National Hardware Show May 7-9, Las Vegas Convention Center, Las Vegas, Nev.

JUNE House-Hasson Hardware Summer Dealer Market June 13-15, Sevierville Events Center, Sevierville, Tenn.

PRO Group 2019 Group Merchandising Conference June 17-19, Embassy Suites AtlantaCentennial Olympic Park, Atlanta United Hardware Fall and Winter Buying Market June 28-30, Minneapolis Convention Center, Minneapolis

JULY Alabama Farmer’s Cooperative AFC Booking Show July 8-10, Renaissance, Montgomery, Ala.

AUGUST

Independent Garden Center Show and Independent Home Improvement Show APRIL August 13-15, McCormick Place, Home Hardware Spring Market Chicago April 7-9, St. Jacobs, Ontario Orgill Fall Market August 22-24, McCormick Place, MAY Chicago Do it Best Corp. Spring Market May 17-20, Indiana Convention Center, The Hardware Conference August 16-18, Marco Island, Fla. Indianapolis www.thehardwareconference.com

For a complete listing of calendar dates, click here.

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RETAIL IDEAS

TAKING CARE OF UNIQUE CUSTOMERS’ NEEDS High-performance retailers understand what makes their communities and their customers unique, and then they tailor their product and service mix to those needs. That is the case for Karl’s Do it Best Hardware, which opened its third store in Boron, Calif., in January 2017.

Located by one of the largest deserts (Mojave) and across the street from one of the largest military bases (Edwards Air Force Base) in the United Karl’s Hardware in Boron, Calif., has States, the 4,000-square-foot store has capitalized seen strong growth since opening in early 2017. on its close proximity to these unique neighbors.

Rio Tinto U.S Borax is a huge open-pit mine in Boron, one of only two world-class borate deposits in the world. The mine and processing plant accounts for 20 percent of Karl’s sales, according to Manager Justin Knight. “I deal with one buyer there and I might be shipping materials to a copper mine in Utah or one of their other facilities. I’ve even shipped to India for them,” he says.

The store maintains a gondola stocked with paint supplies at the U.S. Borax facility, along with several areas with nuts and bolts and stainlesssteel pipe fittings. “Most of it comes out of the Do it Best warehouse. It’s set up like a retail store with tags and they grab it and use it. They don’t have to worry about it, because we restock and order for them,” he explains.

The Air Force Research Lab at Edwards, which does a lot of testing for rocket motors, has also been a steady customer with unique demands.

Cut-off wheels, grinding wheels and “We got a couple of weird things for them and it other abrasives are stocked for Karl’s opened up a lot of regular orders. We got an order unique clientele. www.TheHardwareConnection.com

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The merchandise mix includes safety products and work boots.

About 40 percent of sales come from industrial-commercial-government accounts, with the rest coming from homeowners. Boron is an older community with a lot of rental properties. Landlords have accounts set up and will phone in large orders and have Karl’s take care of it.

Servicing large accounts has a transformative impact on the bottom line. Sales per transaction came in at $36 last year and the figure has increased to $38 per ticket so far this year, according to Knight, who adds that store sales increased 23 percent from year one to year two.

“Customer service is one of our strengths, and I like the store to be neat and tidy,” he says. “We listen to customers and we’re always bringing in new products.”

BIG R WORKS TO NOURISH COMMUNITY SPIRIT

for rewiring an entire classified building, all because we took care of their needs,” Knight says.

Whether it’s specialty fittings, a hard-tofind $100,000 torque wrench, hardware for a solar field or custom cabinet facings for a local cabinet supplier, Karl’s Hardware has found a way to meet the unique demands of its clientele. “I go out and call on them, find out what they need, do the research and order it,” Knight says.

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Rural communities thrive by developing a shared sense of social responsibility and commitment to others. This is certainly true of businesses that serve these areas, and that communal spirit is alive and well with Big R in Winnemucca, Nev., a small farming and mining town.

The team at Big R donated seeds and garden tools to the agriculture program at a local middle school, which then donates the produce grown from those seeds to a local food bank. The produce was grown in the classroom in portable greenhouses donated by Big R, as www.TheHardwareConnection.com

The community is very appreciative of Big R’s efforts, and Swanson said the teachers were so ecstatic with the program’s impact that they invited Swanson to the class pizza party at the end of the school year.

“We try to donate to almost everyone who asks, but I especially like to support kids and senior citizens,” he Mike Swanson (middle), manager of Big says. This past year Big R donated R in Winnemucca, Nev., supports a school agriculture program that grows produce three pigs from the 4-H livestock show to donate to the local food bank. to the senior center.

In a region that has 12 percent of its popwell as in a dedicated on-campus garden, also created thanks to support from the Do ulation living in poverty, Big R is giving back to those who need it most, while teaching it Best member. the next generation the value of both hard “We’ve been supporting this program work and sense of community. n for about four years,” explains Manager Mike Swanson. “When you get involved with kids you see how you can make a difference,” he says.

PAINTING THE TOWN

Big R donated five portable greenhouses and seeds that were used by middle-school kids to grow produce to support a local food bank.

Rittenhouse Hardware in Philadelphia lets customers know they are a destination for paint products by placing a large custom paint can atop the store front that promotes the store name and Valspar paint. www.TheHardwareConnection.com

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E H T D N I H E B NUMBERS

14%

Percentage of all purchases that are made on impulse, with 40% of all purchase money spent on impulse.

70%

$21.6 billion

Total revenue of U.S. retail sales for toys and games in 2018, according to Percentage of U.S. households that own Statista. a pet, with 60.2 million households owning a dog, according to the American Pet Products Association.

$133

Amount U.S. households spend on individual snack items annually, according to The Nielsen Company.

$5.2 billion

Household battery sales in the U.S. in 2020, up from $4.5 billion in 2015, according to Statista.

93.8

University of Michigan’s Consumer Sentiment Index for February 2019, a 5.9% decrease compared to the prior year. The Index of Consumer Expectations also fell 6.2 points in February.

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