Hardware Connection November/December 2013

STRENGTHENING THE TWO-STEP CHANNEL

Value Customers for Redefining

Best Practices in Social Media

Impact of Affordable Care Act

Product Trends in Housewares

91900 Overseas Highway Tavernier, FL 33070 www.thehardwareconnection.com

Publisher/Principal: Tom Chasteen tom@thehardwareconnection.com 305-852-6126

Editor/Principal: Chris Jensen chris@thehardwareconnection.com 317-514-8864

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

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com

Director of Vendor Programs: Diane Allen diane@thehardwareconnection.com 317-432-9177

Beacon Awards Director: Tom Delph tdelph@thehardwareconnection.com

Sales: Paula Pasquale paula@thehardwareconnection.com 630-258-5666 Contributing

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editor’s note

The Next Generation of Retailers Needs Our Help

hen the United States went into a lengthy economic tailspin beginning in 2007, the resulting periods of recession and post-recession caused serious damage to the housing and job markets. No big revelation there, but the years of uncertainty caused an unexpected positive trend that continues to impact the hardware industry.

Everyone knew friends and family members who lost corporate jobs, often for no good reason other than to prop up the company’s bottom line. Even companies that were thriving were not hiring, because no one knew when the country would hit the bottom.

The country was populated with thousands of young people who had grown up working in the family hardware store, but then went away to college to pursue other interests. They had seen their mom and dad work long hours trying to grow the business, and that seemed like way too much work to them.

Fear causes people to do predictable things, such as cling to the familiar. Over the past several years, we have seen more and more sons and daughters return to the family hardware business and begin the process of taking over the business from their parents. Some

undoubtedly did it out of desperation or a sense of survival because the job market is still terrible, while some didn’t want to see the family business close for lack of a succession plan.

There is something to be said for controlling your own destiny, and those young people who have returned to the family business are relearning the lessons of entrepreneurship. You can improve and grow a business through hard work and determination, but hard work alone does not guarantee success. You have to work hard and smart, rely on contributions from others and let your passion shine through so that customers and employees see it and respond to it.

Some of these young retailers will succeed and keep the family business going for another generation, while others will either change their minds and return to the corporate world or fail at being hardware retailers.

As an industry, we all bear responsibility to help these young retailers find their way in a tough business. Those of us with decades of experience need to look for opportunities to put on our mentoring caps and share insights and wisdom. n

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Who Will Carry On?

s I look forward to the holiday season and the process of winding up 2013, I like to reflect back and think about all of the things I am grateful for, the things that went right and the things that didn’t go quite as I had planned. Like a lot of people I tend to take the things that worked out well for granted and spend too much time beating myself up over the things that didn’t work so well.

However, this year my thoughts keep coming back to how lucky I am to have chosen the hardware industry as my career path 39 years ago. Actually, like a lot of second- and third-generation hardware retailers, I think it was more of a natural progression than a cognizant career choice.

I have also been fortunate to have had the pleasure of working with so many truly talented and wonderful people in my career starting with my first salesman, who was older and had extensive experience in the hardware industry. Ed Devant was our salesman for IW Phillips Wholesale. On my first trade show trip, Ed demonstrated how easy it is to miss your flight while sitting in the bar at the airport.

I distinctly remember the first time my Uncle Paul introduced me to John Cotter during my first True Value show at the Cotter & Company warehouse on North Clybourn. I will always remember what a dynamic man John Cotter was.

This past year the industry lost two very special people, who both had long and productive careers in the hardware business and who made a lasting impression on me and the other people they came in contact with.

I met Frank Tooke at one of the first National Hardware Shows I attended in Chicago. Frank was working for Cooper Tools at the time. Little did I know he was one of the people who was responsible for launching the Cooper Tools line of hand tools in Europe with such brands as Lufkin ® , Crescent ®, Weller ®, Nicholson ® and Plumb ®, just to name a few. Frank would fly back and forth so many times on the Concord jet that even the pilots knew him by name.

What made Frank Tooke so special in my mind was that he would always take time to sit and talk with the

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“rookies” on the sales team or young retailers like myself. And when he did, you sincerely felt you were the only person in the room. If you ask anyone who came in contact with Frank he truly was one of the giants of our industry.

Frank had a way of disarming a situation, reducing problems to the most common denominator and then challenging you to come up with a solution, which he would gently guide you to. Then he would give you subtle advice on how to implement “your” plan of action. I never saw him so busy he didn’t have time to speak with someone, nor did I ever see him lose his composure. Frank had a way of keeping everything in perspective and was an excellent judge of character and management talent.

Anyone who spent time with Frank would be able to recount his wonderful sense of humor and his genuine smile and laugh. He had the unique ability to walk so unassuming into a room full of people and by the end of the evening people would be laughing at the intricate details of his wonderful stories.

Frank would have been successful in any industry he chose; thankfully he chose our industry as his career path and I had the genuine pleasure of knowing him.

the way i see it

Francis Bailey was the owner of Bailey’s General Store, a True Value retailer on Sanibel Island off the west coast of Florida. Bailey’s General Store has been serving the Sanibel community for 114 years!

When I first met Mr. Bailey nearly 35 years ago I was fresh out of college and was chomping at the bit to set my career into “warp drive.” Like other hardware retailers, when I’m on vacation I will invariably find a reason to visit the local hardware store(s) in the area. On this particular weekend vacation I wandered into Bailey’s General Store and was shocked to see a fullblown grocery store within a hardware store.

As I was walking up and down the aisles (stealing ideas), a clerk came up and asked if they could help me. I replied that my family owned a hardware store and I was on vacation and just thought I would wander around. The clerk smiled and said “You’ll want to meet Mr. Bailey” and promptly took me to his office and introduced me. Keep in mind I was a cocky, snot-nosed kid, fresh out of college and had absolutely no idea how long Bailey’s General Store had been in business or even who Francis Bailey was.

As we walked into Mr. Bailey’s office he looked up, put his pen down with a smile and a warm expression

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on his face as if he was greeting an old friend. After being introduced he encouraged me to sit down and then for almost two hours I had one of the most wonderful conversations I’ve ever had in my career. That started a hardware friendship that would last almost 35 years and has now evolved into a close relationship with his sonin-law, Richard Johnson, who now runs the business.

After Hurricane Charley hit Sanibel and Punta Gorda in 2004 with devastating damage I drove over to Sanibel to check on Mr. Bailey—all of the phone and power lines were down. I will never forget his reply when I finally got to the store and asked him if he was OK. He said “Tom, we are fine. We just need to clean up a little. There are folks a whole lot worse off than us,” and then he smiled. It was that smile that gave everyone around him the confidence everything would be OK.

I never called Mr. Bailey by his first name. For some reason, in my mind, that would be disrespectful and of all the men I’ve known no one ever deserved more respect than Mr. Bailey.

Both Frank Tooke and Mr. Bailey passed away this year, but both men made an indelible impression upon me that will remain with me the rest of my life. They both had a

the way i see it

wonderful sense of humor and loved to laugh and smiled often. They also always took time out of their very busy schedules to mentor young people coming into the industry.

As a result of their example, I’ve always had an open door policy at my store and office. When I have the opportunity to meet with a young person coming into our industry, I try to make them feel as comfortable as Frank and Mr. Bailey did for me. I make sure that for that period of time we are together I try to make them feel they are the most important thing in my day, because quite honestly they are.

Every hardware store owner I know has similar stories as the two I have just shared in this column. We must be the bearer of the torch to the next generation, not just for our stores in our individual communities, but for our industry as well. We must extend that same welcome feeling we express to our retail customers to others who are also trying to make a career in the hardware industry.

From one retailer to another, I would like to wish each of you and your families a safe and healthy holiday season, from each of us at The Hardware Connection . Share your thoughts with me at tom@thehardwareconnection.com . n

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HARDWARE STORIES Amazing but TRUE HARDWARE

Had a customer recently ask me how long their vacuum cleaner bag would last. The only answer I could come up with in time was, “Well, how dirty is your apartment?”

Matt Mazzone

Mazzone’s

Ace Hardware

Brooklyn, N.Y.

Some years ago I worked at a store that sold pet supplies. We advertised rabbit pellets in a flyer. About two months later an irate customer came in yelling that the rabbit pellets were no good. He had been sprinkling them around his flower bed and garden. He now had more rabbits than he ever had in his life. He did not understand that this was rabbit food. He thought it would kill or repel the rabbits.

Ihad someone tell me when his furnace filter got dirty, he just turned it around to use the clean side. Maybe Matt’s customer can turn the vacuum bag inside-out.

Maurice White

White Do it Best Hardware

McCormick, S.C.

Susan Miller Bob’s Hardware | Whiting, N.J.

All comedy is based on absurd reality. Had a customer come in and ask for a piece of glass 20 x 10. My associate cut it and brought it to the front. The customer measured it and said he wanted it 20 x 10, not 10 x 20! Took us 10 minutes to convince him that it was the same thing.

Mike Jones Sandhills Hardware | Lancaster, S.C.

How’s

MIDWEST

Business?

How’s business this fall and year to date?

It’s been good. For the year, we’re up about 11 or 12 percent. For September and October, we’re up 11.5 percent. Customer count is also up. What categories are selling well?

Everything is up. I bought a store that was in decay, and we’ve worked hard to service customers and to have the right mix of products. That philosophy has served us well. We’re not really a large-ticket business. The average ticket here is about $13 to $14. I don’t have a demographic that lends itself to large-ticket buying. So, when people tighten their belts, I’m one of the last ones to feel it. Best niches?

Paint and cleaning supplies. Also lawn and garden. Core hardware is also up. There’s no category that’s down.

How are you using social media to promote business?

Not well. I don’t think my customers react well or care about Facebook and Twitter. Am I going to tweet about lawn bags? I do use email on regular basis. During the year, I have 24 email campaigns. Whenever a circular drops, I’ll send a corresponding email announcing the sale with a link to the digital version of the ad.

To be honest, I hate social media; it’s a giant pain in the butt. I had someone apply for a job and after I didn’t hire that person, she left a nasty review on Yelp. It took me months

Tony’s Ace Hardware

– Byron Bunnell, Rainbow Ace Hardware, Rice Lake, Wisconsin

to get that removed. If you’re in a different demographic and higher median income, maybe there’s more reason to use it, but I think there’s more power in print advertising.

Matthew Abramsky

Tony’s Ace Hardware

Hazel Park, Mich.

How’s business this fall and year to date?

We’re up about 5 percent on the year. It’s just starting to get cold here, and we haven’t seen the fall business pick up yet. The harvest just finished, so farmers have been busy. We’re just waiting for them to get to their indoor projects.

What categories are selling well?

Everything across the board has done well. No department has stood out. It’s been a good year overall. There’s been some new construction in town that’s really helped all departments.

Best niches?

I couldn’t do without plumbing, electrical and paint. We do a bit in lawn and garden, but that’s seasonal over three months. We have a small greenhouse and do a decent job with nursery stock and perennials. We’ve just started doing a little bit with firearms and sporting goods. I’m hoping that will become a good niche.

How are you using social media to promote business?

We have a store Facebook page but aren’t using other social media. Recently, we put promotional photographs about events and new products on the Facebook page. About once a week, we’ll put something out there.

Doug Johnson Johnson True Value Hardware and Gardens Mt Pulaski, Ill.

NORTHEAST

How’s business this fall and year to date? It’s been toward the sluggish side. We keep thinking we’re seeing glimpses of the light at the end of the tunnel, but then

it dims a little bit. For the year, we’re down about 1.8 percent. This fall has been good. The weather’s been staying nice.

What categories are selling well?

We have a product line geared more toward the do-it-yourselfer. So, it’s more of an across the board

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How’s Business?

thing, rather than any one category. However, building materials has been on the weaker side.

Best niches?

We started this year getting in the grain business. That’s how the store started in 1952. We also do a lot of service, such as lamp and tool repair. That’s turned out to be a pretty big deal for us. We also do special orders for customers.

How are you using social media to promote business?

We’ve just started dabbling a little more, and we have a Facebook page. We’re also tying it in with email marketing. We’ve done a lot with our new grain category to make people aware that we’re selling that.

What other ways do you promote your store?

We promote grain business with someone dressed up as a chicken who we call Nugget. We have a unique customer appreciate promotion, where we hand out $5 in the form of a coupon. There’s no minimum purchase, just one per household and no change. Basically, our customers get $5 worth of merchandise for free.

How’s business this fall and year to date?

We’re kind of in an unusual situation because there’s a big road improvement project going on in front of the store. The road is shut down to one lane. I can’t even look at numbers because of that. I’m just holding my breath. The business has been flat, throughout the year and in the fall. What categories are selling well?

We sell a lot of outdoor power equipment and lawn and garden. Best niches?

Along with power equipment, rental is also a good niche. Green goods are very strong, too. We’re a destination for those items. And with the construction, people avoid us for everyday items such as light bulbs. But they’ll still show up for our destination categories.

How are you using social media to promote business?

We have a website and we dabble in Facebook. We’re definitely not doing a good enough job. That’s one of my initiatives for the coming year. When we do post on Facebook, it’s often something such as the bargain of the month.

Nugget the Chicken helps promote Rankin’s Hardware.

Clarence Keller Rankin’s Hardware Camden, Maine

Jeff Schmidt Schmidt’s

and Serafine’s True Value Waterbury, Conn.

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How’s Business?

SOUTH

How’s business this fall and year to date?

Average. We’ve just maintained. In west Tennessee, we’ve had a really wet year, so that’s affected our business. However, our profit margins and sales are up over the same time last year. It’s often one week up, down the next.

Best niches?

We’re looking to expand into the remodeling area, into the high-end, big ticket items such as front doors and hurricane shutters. We also want to highlight our millwork and cabinetry design

center. We have several displays, such as the staircase with interchangeable spindles, where customers can come in and plan remodeling projects.

How are you using social media

to promote business?

We have a Facebook page and website. The website provides basic information, and we look at Facebook as a way to interact with customers. We conduct giveaways and promotions on Facebook. Recently, we had a deck party, where a deck manufacturer brought in a sample deck. I brought in four or five other vendors and served hot dogs. We promoted that on Facebook. Also, every once in a while, we’ll randomly select one of the people who “like” our page to win a prize. Each week, we’ll post our House of the Week photo and use that as an opportunity to

recognize local builders. We’ve had some people do their shopping on Facebook. They’ll come in and say they don’t need to look around, that they found the door, or whatever they want, on Facebook.

Jones Jones Lumber Henderson, Tenn.

Patricia

Patricia Jones owns Jones Lumber.

How’s Business?

SOUTHWEST

How’s business this fall and year to date?

Our numbers are down; we’re slow. I don’t think people have enough money to spend.

What categories are selling well?

Plumbing is our best-selling category and electrical after that.

Best niches?

We do well in fasteners. It’s getting colder, and business will pick up for cleaning and repairing gas heaters. We do well in the winter months because we’re the only ones who offer that service.

How are you using social media to promote business?

We just started a Facebook page. We haven’t had time to push it. I don’t know that our older, regular daily clientele are active on social media. On Facebook, we’ll run weekly specials and offer coupons. I’m looking to do a contest, too.

Cynthia Martini-Kreckman

Martini Hardware Co. | Houston, Texas

WEST

How’s business this fall and year to date?

We’re up about 5 percent. Winter is coming late. We just got our first snowfall the second week of November. One of our biggest categories is outdoor ski and snowboard accessories. So far, that’s been slow, but it’ll pick up.

Best niches?

The number-one seller is bicycles and the bike department. Arts and crafts are big, along with ski and sporting goods. Our party supplies, housewares and educational supplies are also strong.

How are you using social media to promote business?

We have a Facebook page. We don’t post a lot of sales-type stuff on there. A lot of it is more informational, such as summer train conditions, kudos to local kids and bear sightings. Occasionally, we’ll push some ski stuff.

Steve Beeson

Beemun’s Variety and True Value Soldotna, Alaska

Martini Hardware

PRODUCTS REVIEW

TFrom Tom’s Shop HARDWARE

By Tom Chasteen

he first big cold front is sweeping through the country, which means fall is officially over and winter has now arrived. I hope you had a relaxing Thanksgiving and were prepared for the slew of Black Friday sales that actually started before Thanksgiving again this year. improved to achieve a more consistent

ALL-PRO™ LED OUTDOOR SECURITY LIGHTING COOPER LIGHTING

This time of year is always an awkward time of year for most new product launches, unless they are weather (specifically winter) related. As our daylight hours become shorter, I thought this would be a good time to review Cooper Lighting’s All-Pro™ LED lighting line.

LED lighting is quickly becoming more popular as technology has improved to achieve a more consistent color of light—remember some of the first LED lights had a green tint to them.

first LED lights had a green tint to them.

LED lights are also more powerful so they are no longer used exclusively as pathway lights.

LEDs still have a ways to go as they are still expensive compared to the CFL bulbs and the industry is still struggling to help the average consumer figure out how many lumens it requires to equal a 60 watt traditional light bulb. However, there is no question that

Click Here to Watch a Short Video of the All-ProTM LED Outdoor Security Light.

LEDs last longer, have far less heat and cost substantially less when you compare the cost over the life of the bulb. I personally think they emit a

From Tom’s Shop

hardware products review much brighter or “crisp” light source than traditional CFLs.

Up until now no one has developed a comprehensive lineup of LED exterior light fixtures. That is until Cooper Lighting came out with the All-Pro outdoor light fixtures. We have been testing these products for more than a month and we found them to be a quality product.

We tested four different products including the Twin Head MotionActivated Floodlight (#MST18920LW), which works great in areas where it is necessary to direct the light in two different directions such as corners of a house or post lighting.

We were pleasantly surprised at how well the Small Single Head Dusk to Dawn area/porch light worked (#FSS1530LPCW). It has a 60 watt light equivalent and was designed to last up to seven years. It is compact and is easy to install where the old porch light used to be. It comes in black or white.

The Large Single Head LED floodlight (#FSL2030LW) was equally impressive with a light source equivalent to a 150 watt floodlight. After having the light on for more than an hour you could put your hand on the lens and it was only slightly warm.

And are you ready for this? This light lasts 32 years—I’ll be 89 then and will probably forget when I actually installed the light fixture. This

is a great product to install in those areas where you need a lot of light and it is difficult to reach, like thirdfloor soffit lights.

Finally, the LED Area and Wall Light makes a lot of sense to replace the traditional security lights that mount on a power pole on the side of a garage or barn. These lights (#AL2550LPCGY) have an equivalent of 200 watts output and last 13 years. They are more compact than a traditional mercury vapor light fixture, and are a lot less expensive to keep on. Cooper Lighting says they will light up an area next to the wall of a barn or garage 15 feet in the air, 60 feet wide and 30 feet out from the wall. I thought it actually extended out more than that but we mounted it on a white wall, which probably helped.

If you are looking for LED exterior light fixtures I would recommend you take a look at Cooper Lighting’s All-Pro line of LED outdoor security fixtures. Next time you attend a wholesaler show make it a point to go by the Cooper Lighting booth and take a look for yourself or go to Cooper Lighting’s website, www.cooperlighting.com and type All-Pro in the search bar. You can also click here to watch a video.

If you know of innovative new products you think I should review, contact me at tom@thehardwareconnection.com.

Best Practices in Social

By Dave Warren

Five years ago while lamenting

the state of our local economy and questioning the value proposition of all the money I’d spent on advertising, an acquaintance suggested I try building a presence on social media and Facebook in particular.

Although I hAd A FAcebook personal profile, I used it mostly to keep up on news and see pictures and posts from friends and family. I classified myself as a “Facebook lurker.” I couldn’t imagine that investing work time on the same site that was crawling with baby and pet

pictures, funny sayings and senseless banter would ever be more than a waste of my limited time.

d espite my misgivings I decided to take the plunge. After building the official d ave’s Ace business page I soon realized that without any fans, everything I posted was

Dave Warren

simply me having a conversation with myself.

Fortunately, I had a fair number of Facebook “friends” and began asking them to become “fans” of my page. I then asked them to suggest that their friends do the same. In those early days, to post a comment or like something someone else had posted on a business page, people had to first become official fans of that page. For many reasons, this made obtaining my fans a somewhat easier proposition than it is to get people to “like” a page today.

GettinG Customers enGaGed

At about the same time I cracked the magical 100 fan mark, I began to realize the things I posted had a big influence on how many new fans I could add and also how they would interact. When I made posts that resembled a typical advertisement, I’d get a similar response to most of my other paid advertisements—oftentimes silence.

However, when I made posts that asked questions or gave advice, the comments were abundant. Little did

Dave’s Ace posted this picture of cashiers Miranda and Megan decorating for Halloween and it received 30 “likes” and a number of comments.

I know, but I was starting to learn the concepts of viral marketing. The more I could get people to engage with posts on my page and with each other, the more they would keep my stores at the top of their minds.

I also discovered that posts with a picture, video or a website link seemed to get both a greater response and also tended to show up higher on my fans’ newsfeed than those without. Although early on I would sometimes “grab” an appropriate picture from Google Images, I have since learned that due to copyright laws, it’s much safer to use my own.

Apparently there is a new breed of money-grubbing lawyers who have found creative ways to find Facebook page owners who have used these copyrighted images and then demand thousands of dollars in compensation for their clients. To them, it makes no difference the size of the page or owner or even if the use was ill-intended. The way the laws are currently written, these “Facebook Trolls” will most likely prevail.

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From the early days of my Facebook journey, I decided to measure my success first and foremost by how engaged my fans were with me and my page and only secondly by how much stuff I sold as a result of my efforts. By the very nature of Facebook and other social media, people want to be social and to me that meant I needed to be willing to have some very public conversations.

At first I would only encourage comments and conversation about hardware-related subjects, but as time went on I began to dabble in more off-thewall and personal issues. For instance, I once posted a diagram that illustrated the two ways toilet paper could be hung on the roller and asked my fans to help settle an argument in our house. Another time I asked for advice on how to make the evening of my wife’s and my 15th wedding anniversary especially memorable. To my wife’s dismay, I even shared details of the evening before my first colonoscopy.

All of these examples were extremely successful in getting and keeping the conversation going. However, nothing beat the time one of the high school boys who worked for me requested permission to use our roadside sign to ask a special girl to the prom.

As he stood on the ladder placing the final letter on the sign, I asked him to smile for the camera. Moments later the picture was on my Facebook page

feature

Dave Warren posted pictures of his visit to a hardware store in Kenya.

and the comments and “likes” began to pour in. The most incredible thing was when the girl and her mother arrived at the store about an hour later to confront the boy and to accept his invitation. The mother had been alerted to the invitation by one of her friends, who had seen it on Facebook.

Of course, not wanting to miss a chance to share the happy ending and also to engage our fans, I had the roadside sign changed to read “SHE SAID YES!” and snapped a picture of the couple beneath it. The page simply erupted with well wishes from around town and literally, the world. To my delight, many people shared the post with their friends, which greatly increased our reach.

You see, the success of a Facebook page is directly related to how engaged

people are with it. If you comment or “like” posts on someone’s business page, that page’s posts will continue to show up in your newsfeed. Conversely if you simply “like” a business page and never again interact, the Facebook algorithm (which I don’t even claim to understand) will conclude you are no longer interested and hide the new posts from then on. In my opinion, this is as much a reflection of Facebook’s newfound zeal to sell ads (also referred to as “boosting posts”) to page owners as it is to reduce individual user’s newsfeed clutter.

responding to Customers

Another early realization I had was that people who took the trouble to make comments on Facebook pages appreciated getting a response and the sooner the better. It stood to reason that if my main goal was to engage my fans, at least half the responsibility for keeping the conversation going was mine.

Now I’m not saying I felt compelled to personally respond to every comment, but those that asked me a question were always promptly obliged and even those comments that were general in nature would at least receive a “like.” In that way, I knew the people who were making an effort to interact were always getting at least some kind of feedback

How retailers are using soCial media

We use Facebook quite a bit with 400plus friends. My last post reached over 5,000. I have everyone at the store “share” the posts and that really helps. I do pay for some “boosts” at certain times, but haven’t spent $100 since the first of the year. Most of the time I try to post once per week unless there’s something special. We use Facebook to augment our radio and newspaper advertising. Good inexpensive advertisement. Bob Brame | Cadiz Hardware | Cadiz, Ky. Visit Facebook page here

We have had a very successful run on Facebook. It is so much easier to get going if you have a personal Facebook page with several friends. After the business page is created, you can invite all your personal “friends” to like the store’s page. After about 300 likes, I would do a 3-day promotion, that costs only $30, and after 3 months we are up to 500 likes. I usually slip in a humorous hardware cartoon here and there. When promoting your Facebook page using Facebook’s promotional tool, always make sure that you are targeting specific zip codes near your store. There is no need to target the whole country.

Dusty Lee | Stormer’s True Value Hardware | Knoxville, Tenn. Visit Facebook page here

and would be more likely to interact in the future.

The way I looked at providing prompt responses was pretty much the way I looked at answering a phone call before it goes to voice mail. If I was to be known as having customer service oriented stores, I needed to publicly show that my fans (customers) deserved to have their questions answered promptly. Not only were the authors of these posts impressed, but I believe anyone else who noted my quick responses were as well.

Even though people who are fans or who like a business page are not referred to as “friends,” it became apparent this is exactly what I had

become in the minds of many of the folks who followed my page. I recall an occasion when my daughter and I were in a crowd of people and a man approached and asked if I was Dave from Dave’s Ace Hardware. I told him I was and he immediately shouted to his wife, “Honey, this is Dave from Facebook!” Up until that time I had never met this couple, but they truly believed I was their friend. And who was I to disagree? After all, I reasoned, given the choice, wouldn’t most people rather do business with a friend than not?

As the fan base for my page steadily grew, I would frequently hear, “All this engagement and interaction is great but are you selling any more hardware?”

The honest answer was yes, but I don’t know for sure how much more.

Sure, there were many times when I’d post information on a specific product and then hear customers ask our staff where the (fill in the blank) was they had seen on Facebook. In fact, we had enough of those requests that I began printing “As Seen on Facebook” sign cards to identify the products that had been mentioned. I have also had fans from out of state (we have a lot of them) message my page and ask to have specific items shipped to them. The proof I received that Facebook was helping increase our sales were the frequent unsolicited faceto-face customer interactions where I was told how much they enjoyed my Facebook page and they then mentioned something specific they had found interesting or funny. Many times these customers were people I had never even seen or spoken to before.

DeciDing Whether to “Boost”

A more recent discovery of mine has been the utility of using Facebook’s “Boost Post” feature to help reach more of my fans and others who may be interested in my message. From what I understand, because of the way Facebook’s newsfeed algorithm works, generally only 12 to 20 percent of a page’s fans will ever see a typical post. By paying to “boost” the post, not only will it be seen by a higher percentage of your page fans but it will also be exposed to other Facebook users

We have a Facebook page that we try to update once a week, but to be honest it does not happen. I’m thinking of delegating to a younger staff member to work on this for me, just have not worked out the details. Have not used Twitter but mostly because I do not understand it myself. You have to be personally involved with a social media type before you can effectively execute it at the store level. When I post on Facebook I get fairly good responses, but I need more “likes” to increase that as well. I’m thinking some type of contest or giveaways might help.

Mike Bruns | Kingsford True Value Hardware | Kingsford, Mich. Visit Facebook page here

We have a Facebook page, Youtube videos and Pinterest page. We update our Facebook page 3-5 times a week; Youtube, maybe 4-6 times a year; Pinterest 3-4 times a month (just started). I see Facebook being a great tool to build relationships with our customers. The most viewed posts we have are about us as a company, i.e. past history articles, employee special mentions. Of course contests for free gifts cards or merchandise are the biggest “hits.” I see Pinterest being very valuable once we get more entrenched in it. Recently, we posted

who you can choose based on simple demographics.

For example, a post I recently made announcing a new electronics recycling program our store was offering was seen organically by about 1,500 of my fans. However, by paying $30 I was able to gain almost 9,000 extra views within my specific market area. Remarkably, that one post was then shared by more than 50 users to their friends, too.

Did it work? In that case, it worked extremely well. The post was made on a Friday and over the next two days we had at least 30 people (many whom we had never seen before) stop in our store to drop off their old electronic items to be recycled. Without a doubt, not even a large

a special on a tool box promo and we had someone walk in the door 20 minutes after the post to buy one.

Grant Leavitt | Marcus Lumber Company | Marcus, Iowa Visit Facebook page here, visit Pinterest page here and visit Youtube page here

We try to update both of our stores daily if we can. We try to get people, either customers or employees, in the pictures, as many more people look at them with people in the pictures.

We started taking pictures of all dogs that are brought into the store and created an album called “our 4 legged customers”. We have gotten a lot of

FEATURE

response from this and it encourages more to shop with their pets. We used it last fall to update customers almost hourly as to when we were getting emergency supplies and what we had, during the hurricane. We post new items, new rental equipment, promotions, and pretty much anything happening in the store that customers may be interested in. We also do giveaways and have contests to generate interest and get more people to view our pages.

John Price | JBK Hardware, Chestertown, Md. | Price & Gannon, Centreville, Md. | Visit JBK Hardware Facebook page here

Visit Price & Gannon Facebook page here

Using Facebook, Twitter, Foursquare and texts with a few customers. Foursquare hasn’t done much for us. Seems like it’s suited for restaurants and bars. Facebook is a few times a week as is Twitter. Facebook seems to be the most viewed, Twitter a close second. I have done sales and special orders and notifications by text. There is a lot of “are you in? I need to come by with this problem.” Customers seem to comment and ask questions more on facebook. Facebook is great during weather events to let people know you have generators, sleds shovels pumps and such.

Doug Bowen

Ramsey Hardware | Front Royal, Va.

Visit Facebook page here and visit Twitter page here

newspaper advertisement in our area would have garnered that kind of result. I don’t pay to boost all my posts, but those that I think have the potential to actually draw some paying customers are worth making the investment. The question I hear most often is: “Is it worthwhile for me to have a presence on Facebook?” Unfortunately, the question is not easily answered with a simple yes or no. In my opinion, if you have the time and desire to truly create a relationship and participate in regular conversations with your current and potential customers, then you might as well be doing so with social media. However, if you cannot make the investment in time to keep a Facebook page current and be responsive to those who will surely reach out to you, then you probably should not. Just like any advertising strategy, Facebook and social media require a well-defined plan of action in order to be truly successful. ■

Dave Warren owns Dave’s Ace Hardware stores in Milton and Evansville, Wis. He currently has 5,266 likes for his stores’ Facebook page.

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Value Customers for Redefining

is

The front entrance is merchandised with grills, patio furniture and pallet specials to spur sales. “We go after business,” says General Manager John Glenn.

of Discount

in Sheffield, Ala.

Ayear ago, Discount Dan’s opened a 28,000-square-foot home center in Sheffield, Ala., featuring a unique store design that offers something for everyone.

So far, it’s been a hit.

John Glenn

general manager

Dan’s

“WE’RE TRYING TO DEVELOP A NICHE focused on variety, value and service— you don’t get all three at the big boxes,” explains John Glenn, general manager. “We’re striving to build a brand that everybody talks about.”

A large assortment in the core categories is supplemented by strong niches in hunting, fishing, sporting goods, apparel, home decor, flooring, millwork, roofing, pet supplies, grills, toys, knives, cast-iron cookware and more. “We’re Big Lots, Home Depot and Walmart all in one but better,” Glenn says.

“We actually have more categories than Lowe’s or Depot,” he adds. “We want to create an environment that is inviting to the entire family to come in and buy something. Our Bass Pro department has been a big drawing card and we’re doing special orders for customers every day.”

They designed dump bins that look like a horse trough and there are 27 endcaps throughout the store to spur impulse sales. All of the core categories are lined around the perimeter of the store, with bargains and closeouts merchandised down the center aisle, which is dubbed “Action Alley” and modified every two weeks.

“We change our endcaps frequently so customers will always see a new

Left: Knives and other collectibles are merchandised in a special front area that is designed to look like a log cabin, which helps create an environment customers want to shop in.

Middle: The store’s 22 employees receive regular training to ensure they can provide top-notch service.

Right: The sporting goods department includes Bass Pro Shop branded items.

store every time they visit,” says Glenn, who points out that 10 percent of customers are first-time visitors.

The store’s slogan is “Deals down every aisle” and loss leaders are used to boost the price image. “Everybody wants a deal. We try to have a minimum of 15 bargains of the month, either hardware or closeout related, plus one manager’s special of the month at up to 50 percent off the suggested price,” Glenn says.

Everyday price signs are green, while sale cards are orange and closeouts are known as “blue light bargains” due to their blue price signage. “We’ve got customers trained to shop by color. It helps them understand where the specials are,” Glenn says.

Since the area is steeped in music history they decided to create a “Shoals wall of music” in the front of the store

Jeff Powers, Owner Powers Do it Best Hardware

Left: The 28,000-squarefoot store was designed to appeal to value-conscious consumers.

Upper Right: Faucets are merchandised with a goodbetter-best assortment.

Lower Right: They started out with a tool corral but took it out because it gave customers the impression they weren’t trusted. The revamped department is more shopper friendly.

that displays memorabilia from some of the famous musicians who have recorded there including Bob Dylan, The Rolling Stones, Willie Nelson, Elvis Presley, Lynyrd Skynyrd, Ronnie Milsap, Cher and George Jones.

“The music memorabilia wall has helped county residents buy into us as their store,” says Glenn, who invites local schools to come in and do a history tour.

The location, which includes a fouracre drive-through lumberyard, was formerly a Marvin’s Home Center that had been vacant for seven years. It took over a year to negotiate with the city of Sheffield to secure the location and the construction phase took 11 months.

They did a complete renovation of the building, gutting everything. “We used products we sell in the remodeling process, trying to be green friendly,” Glenn says. “We used laminate flooring we sell as wall paneling and used base-floor epoxy to show customers how it looks.”

House-Hasson, the retailer’s primary supplier, was heavily involved in all aspects of the store design and layout,

signage and assortments, helping determine everything from customer flow to where to place the checkout counters. The company also buys from True Value Co.

Glenn had a distinct look he wanted for the signage, colors that were gender neutral so they would attract female shoppers without scaring away male customers. He settled on a light brown and green combination.

“When customers come in the door they love the variety we offer and love being welcomed by a greeter,” says Glenn, who adds that they don’t greet customer with “What do you want?” but instead say “What project are you working on?”

Female customers need assistance but don’t want to be hassled, he explains, noting the store’s 22 employees undergo regular training. “We offer project assistance; we’re not car salesmen.”

Glenn adds, “When you can get customers to browse you’ll sell more to them. We had one customer come in every day for three weeks. Every day he’d wake up and look for a reason to come into the store.”

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The store offers electric scooter carts and Glenn says those are used every day and greatly appreciated by older customers. “We designed wide aisles so that two carts can get down the aisle at the same time. Female shoppers don’t like to feel restricted,” he says.

A grand opening was held in April that attracted more than 2,500 people. Local musicians performed throughout the weekend and were on hand to sign autographs and nearly 20 vendors helped sponsor the successful event.

“This is a brand new concept for our company and it’s our largest location— the next biggest is 15,000 square feet,” explains Glenn, who adds that they plan to implement some of these concepts in their other stores, which include a hardware store and two lumberyards.

Discount Dan’s competes against two Lowe’s stores that are within 12 miles, plus a Home Depot that is 15 miles away. “We’re driving a speedboat and they’re driving a yacht—it’s a lot easier

Upper Left: The special wall of music memorabilia helps the store connect with the community and is a unique feature not found at the big boxes.

Lower Left: The store building was completely gutted and redone to make it look brand new, even though it had been vacant for seven years.

Middle: The store captures 90 percent of its business from consumers.

Right: Unique signage was created with a color scheme that appeals to both female and male shoppers. All of the signage incorporates the store slogan: “Deals Down Every Aisle.”

for us to change direction and avoid the iceberg,” says Glenn, who adds that 90 percent of sales come from do-it-yourselfers.

“Technology exposes your prices, so we have a price-match guarantee. If an item is within $5 employees are empowered to match a competitor’s price on the spot,” he explains. “We go even lower on some items and try to buy pallet or truckload quantities.”

“This store is a model that will work for us once we have established the brand,” Glenn says. “The economy can be depressed or booming and we’ll be successful because we’re focused on providing value.” ■

True Value’s New

Ceo hits the ground Running

Retailers around the world

face a host of ever-increasing challenges, and the new CEO of True Value Company, the world’s third-largest hardware wholesaler, is committing the firm’s resources to helping its current and future retailers meet those challenges.

John hartmann is the co-op’s new chief executive officer, taking over from Lyle heidemann, who retired at the end of may. hartmann, like heidemann before him, brings chain store experience to the task of helping independent and small chain retailers.

“the biggest challenge our members—or other retailers today—face,” hartmann says, “is changing customer demographics. consumers have so many different options of how and where to buy merchandise. We must find ways to be relevant to them every day in every way.”

hartmann says retailers need to be more efficient so as to be price competitive with large chains and to minimize the price differential with web retailers. and true Value also needs to be sure it is operating as efficiently as possible to keep costs low for members.

hartmann’s background gives him a unique perspective in analyzing the threats facing retailers today. With a law degree, he spent his first few years with the Federal Bureau of investigation before being wooed away to cardinal health, a distributor of pharmaceutical and medical supplies.

From there, he went to home Depot, the world’s largest home center chain.

“Distribution is distribution,” says hartmann. “instead of medical supplies, it became building materials and hardware merchandise.” at home Depot, he ended up with hD supply, the division that focused on serving contractors and large professional customers.

John Hartmann is True Value’s new CEO.

WHOLESALING

It was during that stint that he came to the attention of headhunters searching for a new CEO of a member-owned wholesaler thousands of miles away in New Zealand, where he took over Mitre 10. While there, he conceived a strategic plan that is on track to increase

members’ profitable sales more than 25 percent over his four-year tenure there. Once again, his unique background and successful career came to the attention of a search firm seeking a replacement for True Value’s retiring CEO. So suddenly, Hartmann jumped from a co-op

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doing $1 billion in annual sales to a co-op doing almost $2 billion in annual sales—one operating 13 distribution centers around the United States, supplying more than 4,000 stores, managing a paint manufacturing plant and with a buying presence in China.

Hartmann is quickly making changes at True Value. “I’m building on the things Lyle Heidemann began,” he says modestly, but it is clear that he believes True Value retailers must focus on improving their operating efficiency, growing their businesses and better understanding and providing what today’s consumers need.

Changing consumer demographics demand different solutions, he stresses. “Consumers have so many ways in which to buy that we cannot rely on past practices. We must appeal to younger consumers while still serving an aging population. That is a tremendous challenge, not just for our retailers but for all retailers.”

To better understand the needs (and thinking) of True Value retailers, Hartmann spent months traveling the country visiting members in their stores, seeing the kinds of stores that were successful as well as those that need to be updated to meet today’s challenges. He is planning a similar trek around the world to visit many of the company’s international members.

One big difference between Mitre 10 and True Value, he says, is that the New Zealand firm clearly served three different kinds of retailers, whereas True Value’s 4,000-plus stores are treated the same, though vastly different. Mitre 10 served convenience hardware stores between 2,000 and 3,000 square feet in size, known as Hammer Hardware; a mid-tier of stores operating under the

True Value is encouraging more members to adapt its Destination True Value format, such as was done by Central True Value in Moncks Corner, S.C., in 2011.

Mitre 10 banner and 45 big-box stores between 70,000 and 100,000 square feet known as Mitre 10 MEGA.

True Value already had begun recognizing that it could play a role in helping its stores be more relevant to consumers by appealing to non-traditional interests of consumers. Hartmann says that will increase. Two examples he cites are its expanded pet department and farm and ranch, which is the company’s fastest-growing merchandise category. In fact, the company recently signed up a 28-store chain of farm/ranch stores based

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in Michigan, which recognized that True Value’s buying power would enable them to lower their merchandise costs to better compete with even larger chains.

Another way in which it is helping members better compete is by providing a more modern store format called Destination True Value, adaptable to stores of different sizes but always incorporating the latest design features to appeal to today’s consumer. In 2013, 22 new True Value stores opened, another dozen are in the pipeline and so far, 32 True Value stores remodeled using the Destination True Value format.

In all size neighborhoods, from rural and suburban to urban areas, True Value added 220,000 square feet of new retail space and

another 318,000 square feet of refreshed hardware space in the United States.

Focus on Retail Best PRactices

The company is focusing on “Retail Best Practices,” a method of sharing successful ideas among its members. Hartmann sees the company as being more than merely a source of merchandise. It must use its resources to educate its retailers, especially in such fast-changing areas as the internet. Its own staff has been helping retailers develop web sites and increase web sales to combat webonly merchants, and Hartmann believes more can be done to help in this area.

Recognizing the threat of Amazon and other web retailers, True Value’s own company web site sells to consumers

and businesses, offering a far more extensive hardlines inventory than any of its members can provide.

So that its retailers benefit from this sales activity, it is now offering free shipto-store service through 1,800 member stores, meaning that consumers who buy on the web site will visit their local True Value store to pick up the merchandise—and a personal relationship between that consumer or business and the local retailer can be established. More than 80 percent of all web sales are made via ship-to-store. Average sale off the web is $72, so the customers who pick up their merchandise at a participating store are the kind of customers every retailer would like to have. Hartmann says research shows that most often, web purchasers are new customers for local True Value merchants.

In order to help its member-owners grow, Hartmann says True Value’s Retail Support Center is working on two major

projects: developing financing programs so stores can modernize and expand or open additional units; and encouraging store owners to begin long-range planning to ensure perpetuation of the businesses, either to family members or to other buyers.

WHOLESALING

The larger and more successful members become, the more critical a succession plan is as the financial needs greatly intensify, Hartmann notes. “These are areas where we will be devoting a lot of our attention,” he says. ■

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By John Fix III

GoodFinding THE AGONY OF Help

Retailers bemoan the fact that good cashiers are hard to find.

Winter is right around the corner for many of us, and between setting up snow shovels and Christmas merchandise, store owners and staff managed to sneak away from the salesfloor for a few minutes to catch up on Hardlines Digest postings.

FINDING QUALIFIED STAFF MEMBERS

is often a challenge for hardware and lumber retailers. Matt Mazzone of Mazzone Hardware in Brooklyn started a lively discussion on the topic via this post.

“With unemployment in this country so high, you would think there would be an overabundance of qualified people looking for work. We put out a help wanted ad for cashiers last week and

received close to 300 responses. We narrowed that down to 40 or so, and of those 40, only 15 showed up for the actual interview. We ended up hiring one cashier, who never showed up for work yesterday. Unfortunately, none of the other applicants were suitable for the position.”

He adds, “We put out another help wanted ad this morning and already received 40 or so applications within the first hour. When I see ‘Fluent in English’ as a skill, I know I am in trouble. When an applicant asks if our ‘PBS system’ (assuming they meant POS) is computerized, because they ‘aren’t very good at math,’ I know I’m in trouble. I think my faith in the job pool in this country is dwindling. I’ve had people answer their cell phone during an interview. I’ve had people come in with such awful body odor that I couldn’t get past the first 30 seconds of the interview, and I’ve had one ‘guy’ comment that he/she wanted to work in a hardware store because it’s a great place to meet men.

I’ve tried listing jobs on Craigslist, Facebook, Monster and just about every website I can think of. Considering the community we are in is made up of 2 million dollar plus homes, the labor pool of “kids” in our community is pretty much gone (not like it used to be when all of the kids in the neighborhood were out looking for work). So

With unemployment in this country so high, you Would think there Would be an overabundance of qualified people looking for Work.

what is the trick, short of kidnapping employees from other stores?”

Brandon Buckalew of Hardware

Hank in East Grand Forks, Minn., had some thoughts. “I have found that a lot of those people are just putting in an application to fill their requirements to get unemployment. I wish there was a way that the folks handing out the unemployment checks could see the applications turned in or if they knew they were offered a job and just didn’t show up. In Minnesota, all they have to do is hand in an application. They don’t have to make an effort to be hireable or keep the job when it’s offered. Two weeks ago I had a guy turn in an application where his main skill was ‘get s**t done.’ Then for computer experience he put ‘I know how to do most everything on a computer so maybe the better question would be, what don’t I know how to do?’

a growing community of thousands of

“I created Hardlines Digest in 1996 as a way for my fellow retailers to swap tips about the nitty-gritty of running an independent hardware store. Today, it’s grown to a community of thousands of independent hardware store owners just like you. I hope you’ll join today and start sharing your own expertise.”

John Fix Owner, Cornell’s

Hardware Eastchester, NY

HARDLINES DIGEST

A few years ago we had a factory union get locked out. I got applications filled out on napkins. I got them saying, ‘You will pay me $20 an hour and you will pay for my 20-mile commute.’ I got them saying, ‘I’ll let you hire me, if you let me organize a Union.’”

Lex Stevens of Back Bay Hardware in Boston had some experiences to relate as well as some amusing thoughts. “My funniest was a girl who was a cashier at

Staples. On her application, she said that she was a cashier most of the time, but sometimes she ‘worked over at the returns counter.’ That still cracks me up. Our most recent hire we stole from the CVS across the street. It turns out he also worked at Lowe’s before he moved to Boston, so he was a really good find. The other two new hires are just out of high school. We decided to try home growing our own. They don’t know how to work yet, but they also don’t have any bad habits.”

He adds, “Years ago, we used to go through the W-2s trying to remember

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who everyone had been. I had one boss who fired anyone who came in looking like they had been in a fight. How many of those were there? More than a few. In another store, the clerks in industrial came and went so fast I stopped trying to learn their names.”

Stevens adds, “We could all probably write an Edward Gorey Alphabet: A is for Adam, who shorted the till. B is Bert, who mooned over girls. C is Chris, who smoked weed in the john. D is for Dave, who fell down the stairs. E is for Ed, who stole the hand tools. F is for Frank, who everyone hated. G is for George, who went to rehab. H is for Hank, who landed in jail. I is for Ivan, who was just kind of creepy.”

Joe Proctor of Proctor’s Ace Hardware in Jacksonville related a story. “We had a young lady fill out an application. She put the name of her boyfriend in the box as to who to contact in an emergency. For relationship, she first put ‘No,’ then she changed it to ‘Yes.’”

Matt Mazzone closed out the discussion with a postscript to his story. “So after receiving 300 or so applications, we hired a cashier. First day of work, she doesn’t show or call. We went to cashier #2, who worked two days, then didn’t show or call today. I was on the floor for a good amount of the day yesterday and didn’t see or observe anything to cause her not to show. However, we were pretty busy yesterday afternoon

and even with someone shadowing her and helping out, I could tell she was frustrated and not picking up as quickly as I would have liked.

I’m starting to wonder if it’s me. We start our new cashiers at $9.00/hour, two weeks paid vacation, paid holidays, Christmas bonus, 401k options, etc. Keep in mind that we are only 2,000 square feet, only have two registers and we have about 20 people working in our store (at least 10 working any given day) and are pretty much hectic all of the time. Working the register takes a ‘special’ type of person (another word for thickskinned, tough and quick). Definitely is the hardest position for us to fill. We have a great head cashier and several great students working part time, but need another full-time cashier. With unemployment (officially) around 7 percent or so, shouldn’t this be easier?”

This is just one of the many topics discussed during the past few months on Hardlines Digest. To read more or subscribe, head to www.hardlinesdigest.com. Hope to see you on the list!

John Fix started the Hardlines Digest in 1996. The list was run for many years using servers in John’s hardware store, but recently the list migrated to Google Groups. There are currently more than 1,500 subscribers reading the Hardlines Digest.

What You Need to Know About the Affordable Care Act

Like it or not, the U.S. health care market is undergoing a radical transformation. The Affordable Care Act was signed into law by President Obama in 2010, with some provisions starting immediately and others being phased in from 2011 up until 2015.

The main provisions take effect January 1, 2014, when all Americans are supposed to gain access to some form of affordable health insurance even if they have a pre-existing condition.

States have either set up their own insurance exchange or agreed to use the federal government’s exchange. These exchanges are supposed to allow individuals and businesses to compare private health plans. Problems have plagued the launch of HealthCare.gov, the government site designed to handle insurance sales for 36 states.

The deadline to sign up for coverage that starts January 1 is December 15, 2013. Children can remain on their parents’ plan until the age of 26, and companies can no longer set a lifetime limit on coverage or drop your health insurance if you get sick.

Companies with more than 50 employees now have until 2015 to comply with the employer mandate

provision, which requires them to offer affordable insurance to employees or face fines up to $3,000 per employee.

As many as 150,000 small businesses may be subject to the “aggregation rules,” which require owners of more than one business to consolidate employment in all of their businesses for purposes of reaching the 50 full-time equivalent employee employer-mandate threshold.

Employers with 50 or fewer full-timeequivalent employees have access to the Small Business Health Options Program (SHOP), which serves all 50 states. Online enrollment for SHOP began November 1, with coverage starting on January 1.

It varies by state, but some states require at least 70 percent of full-time employees be enrolled in a SHOP plan, which must be offered to all employees. Go to IRS.gov or check with a tax attorney to see if you are eligible for health care tax credits.

Starting in 2013, a $2,500 cap has been placed on flexible-spending accounts. Individuals who don’t have health insurance are subject to a tax penalty in 2014 that starts at $95 per individual or $285 per family (or 1 percent of income if that’s greater). Those tax penalties rise to $695 per individual and $2,085 per family (or 2.5 percent of income) in 2016.

All private health insurance plans must now offer a standardized

“Summary of Benefits and Coverage” form, which should make it easier to compare plans side by side. You will be able to quickly tell what is and isn’t covered by the plan, determine if your doctor is in the network and find out what you can expect to pay for specific medical services.

High-income Americans may find themselves paying an additional tax. Individuals earning more than $200,000 or couples filing jointly with income over $250,000 will pay an additional 0.9 percent payroll tax for income over those amounts.

The health insurance premium costs incurred by small businesses (employer and employee shares) average $6,721 a month ($80,652 a year), according to a survey of 921 small businesses conducted by the National Federation of Independent Business. The median cost is about $3,500 every 30 days.

Deductibles for beneficiaries of small business health insurance products also rose in 2013. While two-thirds of plans maintained deductibles at the prior year’s level, another 28 percent increased deductibles; only 4 percent lowered deductibles in their plans.

Go to GoHealth.com for easy-tounderstand health insurance information. n

How are the new health-care regulations affecting your business?

Not a lot, yet. We’re very small with seven employees who are almost all part time. I have an individual policy for myself. I’ve seen one increase letter and haven’t tracked down what else is available.

Doug Johnson | Johnson True Value Hardware and Gardens | Mt Pulaski, Ill.

I don’t know. It’s still too early to tell. Sounds to me like we’ll feel it a year from now when we redo our insurance in October. I get the sense that a year from now it’s going to have the biggest impact.

Clarence Keller | Rankin’s Hardware Camden, Maine

It’s costing us money. Our premiums went up 30 to 40 percent from July of last year to July this year. We have 10 employees, and two on the insurance plan.

Cynthia Martini-Kreckman | Martini Hardware Co. | Houston, Texas

For my business, it means I won’t be adding any more jobs. I have 12 employees, and the regulations will hamper job growth. We just have to work smarter with fewer employees.

Patricia Jones | Jones Lumber | Henderson, Tenn.

HOUSEWARES & CLEANING PRODUCTS

Upright Vacuum Sales

Percentage purchased by gender, Q4 2012

Female

Male

Source: NPD Group Consumer Tracking Service

Upright Vacuum Sales

purchased by income, Q4 2012

$100,000-149,999

Source: NPD Group Consumer Tracking Service Canister Vacuum Sales

HOUSEWARES/CLEANING BUYING UPDATE

• U.S. sales of small kitchen appliances grew 15 percent, to $2.5 billion, in the first half of 2013 compared to the same time period a year ago.

“The small kitchen appliance industry continues to reap the rewards from product innovation in specialty appliances, nutrition and diet trends, and the consumers’ desire to replicate away-from-home in the home,” said Debra Mednick, executive director and home industry analyst, The NPD Group.

• Online sales accounted for 19 percent of small kitchen appliance dollars in the first six months of 2013, a 23 percent increase over the first half of 2012, according to The NPD Group. Brick-and-mortar store sales also increased during this timeframe, experiencing an increase of 8 percent.

• The average amount spent on a small kitchen appliance purchased online decreased 4 percent, while the average amount spent in a retail store increased 5 percent. However, consumers are still spending an average of 34 percent more when they buy these products online.

• More than four in ten small kitchen appliance sales during the first half of 2013 were made by first-time purchasers. Growth from these new consumers is outpacing the total market.

Upper: Moore’s Feed Store in Pontotoc, Miss., carries a dominant assortment of cleaning supplies.

Lower: The latest kitchen gadgets are on display at Harleysville Ace Hardware in Harleysville, Pa.

• 77% of Q4 2012 stick vacuum dollar sales came from cordless models, up from 70% in the prior year, according to NPD Group’s Retail Tracking Service. More than 10% of stick vacuums sold were to consumers who already owned one.

• Sales of bakeware value packs gained 19% in units and 15% in dollars in Q4 2012, according to NPD Group’s Retail Tracking Service.

• Dollar sales of home soda machines almost tripled in 2012. Consumers like the ability to customize flavor and level of carbonation while saving money without sacrificing taste. ■

Housewares Products

adjustable Measuring cuP

• An internal track and comfortable turning knob allow the plunger in the body of the measuring cup to adjust smoothly to the desired measurement marking.

• Simply fill the cup with your sticky ingredient and turn the knob to push it right into your mixing bowl. The plunger acts as a squeegee on the inside of cup, getting out every last bit of your ingredient.

• The dishwasher-safe 1 cup measuring cup can also be used for wet and dry ingredients, eliminating the need for multiple sizes of measuring cups and spoons.

• The generous rim makes pouring ingredients easy.

PurewasH eco-Friendly wasHing systeM

• pureWash is an environmentally friendly appliance designed to be attached to a residential washing machine, adding enhanced oxygen and photo catalytic oxidizers to the cold water supply.

• Water treated by pureWash aids in cleaning laundry and killing bacteria without leaving residual detergent in the fabric and using less electricity than a light bulb.

• Many users find they are allergic to detergents used in washers and the detergents create an environmental problem as they are included in the waste water from washers.

• It works with cold water, eliminating the need for hot water.

BEANSAFE® COFFEE CANISTERS

• Protect your beans from the four coffee-destroyers: air, moisture, heat and light.

• BeanSafe is airtight, with four locking clasps and a silicone gasket that seals out moisture and oxygen.

• BeanSafe offers a choice of stainless steel, ceramic or food-grade polypropylene to keep out light.

• It has a patented one-way pressure release valve that keeps out air and moisture while permitting carbon dioxide to escape. That’s essential, because CO2 buildup degrades coffee flavor. This valve never needs replacing.

BEAN SAFE

www.beansafe.com 212-244-5505

YO-YO TEA INFUSER SET

• Enjoy a delicious single-serving cup of tea as freely swirling tea leaves release their optimum flavor.

• Dishwasher-safe lid keeps tea warm while brewing and doubles as a trivet to prevent dripping.

• Works with any type of loose leaf tea and compatible with a variety of cup sizes. Paired with Bodum’s BISTRO Mug.

Bodum

www.bodum.com 800-232-6386

HOUSEWARES PRODUCTS

• Constructed out of quality stainless steel and holds up to 2.5 quarts of liquid.

• The stay-cool handle is soft to the touch. The kettle whistles to signal when your water is boiling.

• Available in brushed stainless steel, matte teal, matte blue and matte red.

By Fred Fischer

2014 Will Be the Start of Lots of Change

We fast approach a new year—2014. Read on to learn how the new year will affect you and what changes are in store.

WindoWs XP

On April 8, 2014, Microsoft will end their support of Windows XP. What does that mean for you? Microsoft will no longer offer updates and security patches for the Window XP operating system and on that same date Office 2003. Without critical Windows XP security updates your Windows XP computers could become vulnerable to harmful viruses, spyware and other malicious software that can damage your data and other stored information.

When you purchase new software, there is a chance it may not run on a Windows XP computer. That is because there are many new technologies that have been added in the newer versions of Windows 7 and now Windows 8

and 8.1. The .net frame work is just one area. As an example, the newest version of Office (2013) will not run on Windows XP and Windows Vista.

There will be no one to call for support, because development will have stopped. Worse yet, if a computer fails, the loss of downtime and inability to fix Windows XP could impact how you will be able to run your business. It is time to replace those old Windows XP computers. As for the hardware that you are running Windows XP on, do not waste the time trying to install Windows 7 or 8. There is not enough horsepower in the hardware to support the software.

Credit Card ProCessing

2014 is the start of chip and pin (EMV) credit cards being released by banks. What is EMV? All new credit

cards will have the traditional mag strip that you are used to, but there will now be a gold contact in the center of the left half of the of the credit card.

The United States is the only country in the world not using EMV. If you travel to Europe or the rest of the world, you most likely need a credit card from your bank that supports EMV. The difference is that the customer must slide the credit card into a slot in the front of a new type of credit card machine.

The machine looks much like the traditional signature pin debit credit card device and will still have the track for the mag strip reader, but the new device is different. In the front, there is a slot and when the credit card is inserted, the customer will be required to enter a PIN number. It is required even though this is a credit card transaction. This should not be confused with PIN Debit, which will still be available for use.

Why the change in how credit cards are designed? To reduce credit card fraud. Mag strips can easily be reprogrammed. The mag strip on cards

will exist for several years. If retailers are not processing 80 percent of their transactions using EMV by October 2015, they will be charged back the amount of the bad transaction if they process a fraudulent credit card.

Another reason mag strip credit cards will be around for an extended period of time is because the petroleum industry got an extension until October 2017 to convert gas pump card readers. Converting gas pump card readers and the processing method is going to cost thousands of dollars per gas station location.

To add to the drama, the hospitality industry (restaurants) will have to provide wireless devices to take to the tables so customers can enter their credit card PIN number. The waiter or waitress will no longer be able to walk off with your credit card so they can record the data on the mag strip.

There are other electronic payment alternatives coming in 2014. One method and a term you will hear more of is a “virtual wallet.” A virtual wallet is a process in which you register your credit and debit cards one

Technology updaTe time on a website using the internet. Many times this process will be part of online banking with your bank and you will have to install an application on your smart phone. Yes, it is probably time to get a smart phone if you do not have one.

When it is time to pay the bill, either the receipt, the credit card machine or a display post will display a QR code at the completion of the sale. A QR code (Quick Response code) is the trademark for a type of matrix barcode or 2D barcode that is attached to an item and records information related to that item.

You will take a picture of the QR code using the camera in the smart phone using the virtual wallet application. It will display the amount of the sale, list your credit cards and in some cases show your available credit. With your finger you will tap the card you want to use and the transaction will be completed.

The neat thing is that no credit card data was used to complete the transaction. Only a token, an encrypted data identifier, will go over the internet. This is safe and secure credit card processing for you, the merchant.

There are other credit card processes that are being developed and marketed. One is using ACH (automated clearing house) as a form of payment, which can have a much lower cost per transaction, sometimes as low as 10 to 20 cents.

But beware, as you well know, cheap is not always better. Although the upfront rate is less, in many cases you may hold the risk. Meaning, this process is only saying that the money is there at the time of authorization. When payment is presented at the bank, much like accepting a check for payment, if the funds are not there, you may be left with a back charge much like a bounced or returned check.

Be careful as there is a lot of change going on in the electronic payment industry. Make sure you know who you are talking to and what all the fine print in the contract really says. All those folks calling you about low processing rates get a fat check once they sign you up and then you can be stuck with a long-term contract in which they are able to change the rates. That might not be in your best interest.

The bottom line is technology is constantly changing. With the soft economy, you may have been reluctant to make the big expenditure to upgrade your technology and equipment. With the end of Windows XP, the time is now. As far as credit card processing, you have a little time. Plan ahead and have a plan. Time goes by fast when you are having fun. n

Fred Fischer is the president of J3 POS –Ganymede Technologies Corp. He can be contacted at fred@j3pos.biz.

IN THE NEWS

NEW STORES:

■ Ray Johnson and Shari Ogata have opened Pioneer Ace Hardware in Rio Rancho, N.M.

■ Ryan Ringer, owner of Gold Beach Lumber Yard, has purchased McNair True Value Hardware in Port Orford, Ore.

■ Higginbotham Brothers True Value has opened a new store in Cisco, Texas.

■ Steve Bassett has opened Clovis True Value in Clovis, Calif.

■ Bliffert Do it Best Lumber and Hardware has opened new stores in Sturtevant, Wis., and Fort Wayne, Ind.

■ John and Denise Nosewicz have opened Ace Hardware of Ithaca in Ithaca, N.Y.

■ Weaver Lumber True Value is celebrating its 50th year with the grand opening of a new store in Redding, Calif.

■ John Senica Jr. has opened John Jr. True Value in Oglesby, Ill.

■ Family Farm & Home has opened a new store in Cadillac, Mich.

■ Randy and Quenna Knox have opened Attalla Ace Hardware in Attalla, Ala.

■ Building Solutions, based in Tulsa, Okla., has opened a new lumberyard in Kansas City, Mo.

■ Tim Bracey has opened Pleasant Valley Ace Hardware in Brodheadsville, Pa.

■ Steve and Leona Fogle are the new owners of Fogle True Value Hardware in Centerville, Iowa.

■ Gary and Beverly Kalsbeek opened Hardware Express, an Ace Hardware store in Coos Bay, Ore.

■ Steve Glenn has opened his third Glenn’s True Value Hardware in Lincoln, Neb.

■ Senneth Barrier is the new owner of Swartz Hardware in Newton, Mass., which will be renamed Swartz Ace Hardware.

KUDOS TO:

Don Wolf, along with wife Ginny, receives Sachem Award from Gov. Mike Pence.

■ Don Wolf , retired CEO and president emeritus of Do it Best Corp ., was named recipient of the Sachem Award by Indiana Governor Mike Pence, the state’s highest honor. “Don Wolf’s work in the community is unparalleled, and his life is distinctly Hoosier. He lives the traits that Hoosiers

hold dear: hard work, a belief in individual responsibility, generosity and kindness,” Gov. Pence said.

■ Kitz and Pfeil True Value in Oshkosh, Wis., is celebrating 100 years in business.

■ Ian and Tara McNaughton, owners of Gravenhurst Home Hardware in Gravenhurst, Ontario, were awarded the 12th annual Paul Straus Public Relations Award from Home Hardware.

■ McFarlanes’ True Value in Sauk City, Wis., has reopened after rebuilding the store, which was destroyed in a fire May 20. Fourth-generation owner John McFarlane held a grand reopening on October 5 for the business, which dates back 95 years.

■ Mike and Adam Keith are celebrating the 65th anniversary of the renamed Georgia Supply Company in Flintstone, Ga.

■ Ron Clough is celebrating the 80th anniversary of Clough’s Hardware in Stratford, Conn.

■ R.P. Lumber, owned by Bob Plummer and family, became the first Do it Best Corp. member to surpass $1 billion in lifetime purchases from the co-op.

■ Tom and Marlene McDonald are celebrating the 150th anniversary of New Providence Hardware in New Providence, Iowa.

PEOPLE ON THE MOVE:

■ Benjamin Moore & Co. has named Michael Searles as the new CEO.

■ Busy Beaver Building Centers named Joseph Kallen as the new CEO.

■ True Value Company named Abhinav Shukla senior vice president and COO; Tim Mills senior vice president of growth and Ken Goodgame senior vice president and chief merchandising officer, replacing Mike Clark, who is retiring.

■ Do it Best Corp. promoted Mike Ter Molen to division manager of building products and home décor.

WHOLESALERS IN THE NEWS:

■ Do it Best Corp. reported sales of $2.8 billion for the fiscal 2013 year that ended June 29, 2013, up 4.4% from the prior year. The coop distributed $116.4 million in rebates to members, marking the 10th consecutive year with rebates surpassing $100 million.

■ True Value Company announced gross billings up 1.4% to $455.1 million for the third quarter, along with net margin up 21.4% to $18.7 million.

■ Ace Hardware Corp. has won the Brandon Hall Bronze Award for “Best Onboarding Program” for its

Helpful 101 retail training program.

■ Do it Best Corp. hosted its inaugural Leadership Development Institute Nov. 12-15 in Fort Wayne, with 23 attendees.

■ Distribution America and the PRO Group marked 10 years of holding a joint Executive Conference.

OTHER NEWS:

■ Dave Maggio and Michael Donohoe have opened Dallas Sears Appliance & Hardware in Dallas, Texas, the first new Sears Appliance & Hardware store to open in 10 years. It debuts a new smaller (16,000-18,000 sq. ft.) neighborhood format for Sears.

■ Family Farm & Home, with 27

stores headquartered in Muskegon, Mich., has affiliated with True Value.

■ Carter Lumber is closing 26 locations in Ohio, Indiana, Michigan, North Carolina and Pennsylvania.

IN MEMORY:

■ Carl Leveto, who operated six Handyman Hardware stores in Ohio, passed away September 22 at the age of 86. He opened the first Handyman Hardware in Champion, Ohio in 1975.

GET THE FULL STORY:

■ Ace Hardware Corp. has recognized six stores with a 2013 “Coolest Hardware Store” award. Click below to watch videos.

■ Ace Hardware of Ahoskie, Ahoskie, Minn. Click here to watch

■ Crosslake Ace Hardware, Crosslake, Minn. Click here to watch

■ Parkrose Ace Hardware, Portland, Ore. Click here to watch

■ Carmel Ace Hardware, Carmel, Calif. Click here to watch

■ Lutz Ace Hardware, Lutz, Fla. Click here to watch

■ Keith’s Ace Hardware, Waco, Texas. Click here to watch

DECEMBER

Wallace Hardware Fall Market

December 3-5, Gatlinburg Convention Center, Gatlinburg, Tenn.

JANUARY 2014

Do it Best Corp. Winter Conference

January 20-22, Walt Disney Swan Resort, Orlando, Fla.

HDW Inc. Spring Market

January 24-26, State House Convention Center, Little Rock, Ark.

House-Hasson Hardware Spring Dealer Market

January 16-18, Gaylord Opryland Hotel, Nashville, Tenn.

United Hardware Spring/Summer Dealer Market

January 10-12, Minneapolis Convention Center, Minneapolis

FEBRUARY 2014

Ace Hardware Corp. Spring Convention

Feb. 24-26, George R. Brown Convention Center, Houston

Florida Hardware Spring Market

February 14-16, Doubletree Hotel & Convention Center, Orlando, Fla.

Handy Hardware Spring Market

February 13-15, George R. Brown Convention Center, Houston

International Builders’ Show

February 4-6, Las Vegas Convention Center, Las Vegas

Kitchen & Bath Industry Show

February 4-6, Las Vegas Convention Center, Las Vegas

Monroe Hardware Spring Show

February 8-9, Cabarrus Arena & Events Center, Concord, N.C.

Northeastern Retail Lumber Association LBM Expo

February 26-28, John B. Hynes Memorial Convention Center, Boston

Orgill Inc. Spring Dealer Market

Feb. 27-March 1, Orange County Convention Center, Orlando, Fla.

True Value Company Spring Market

February 22-24, Georgia World Congress Center, Atlanta

MARCH 2014 Blish-Mize Spring Dealer Market

March 21-22, Overland Park Convention Center, Overland Park, Kan.

Emery-Waterhouse Marketplace 2014

March 14-15, Rhode Island Convention Center, Providence, R.I.

Hearth, Patio & Barbecue Expo 2014

March 6-8, Salt Palace Convention Center, Salt Lake City, Utah

International Home & Housewares Show

March 15-18, McCormick Place, Chicago

Send calendar dates to chris@thehardwareconnection.com

RETAILERS SHOW OFF THEIR HOLIDAY SPIRIT

The holiday selling season is underway, and hardware retailers are keeping their fingers crossed that consumers will be in a spending mood.

The National Retail Federation is projecting sales in the months of November and December to slightly increase 3.9 percent to $602.1 billion, over 2012’s actual 3.5 percent holiday season sales growth. The forecast is higher than the 10-year average holiday sales growth of 3.3 percent.

Shop.org projects online holiday sales in November and December to grow 13-15 percent over last holiday season to as much as $82 billion.

What follows are holiday displays from hardware retailers from around the United States. ■

Holiday Kickoff Party was held at Crown Ace Hardware in Huntington Beach, Calif.

Young boy sends letter to Santa at Crown Ace Hardware.

Familiar characters can be found at Cornell’s True Value in Eastchester, N.Y.

The Christmas Train is running at Sullivan Hardware & Garden in Indianapolis.

Western Ohio True Value in Minster, Ohio.

Moscow Do it Best Building Supply in Moscow, Idaho.

Crown Ace Hardware in Yucaipa, Calif.

Western Ohio True Value in Minster, Ohio.

Sullivan Hardware & Garden’s selection of live and artificial Christmas trees in Indianapolis is unmatched.

Snow’s Home and Garden in Orleans, Mass., has an elaborate display.

Kids are encouraged to send a letter to Santa Claus at all Crown Ace Hardware locations.

Crown Ace Hardware in Irvine, Calif.

Behind theNumbers

12%

Percentage of consumers who plan to spend more on holiday shopping this year. 67% plan to spend about the same and 21% plan to spend less, according to the NPD Group’s Holiday Spending Survey.

57%

Percentage of consumers who said special sale price was the biggest driver of their purchases in 2013, compared to 56% who said overall value for the price, 42% who said free shipping and 17% said carries unique products or brands, according to the NPD Group.

22%

Percentage of consumers who have already started their holiday shopping before Thanksgiving, according to the NPD Group.

$8.8 million

Sales for Do it Best Corp.’s Sneak Peek buying event at the October Market, which is a new record.

91.6

Small business optimism index in October, down from 93.9, largely due to a large decline in hiring plans and pessimism related to the political climate in Washington, according to the National Federation of Independent Business.

64%

Percentage of small business owners who report they paid more for health insurance for their employees in 2013 than they did in 2012, according to the National Federation of Independent Business.