Paint & Decorating Retailer May 2023

WHAT TRUE VALUE® MANUFACTURING CAN DO FOR YOUR INDEPENDENT PAINT STORE.

Our products are expertly crafted at a world-class facility that has mastered the art of paint manufacturing. Our facility produces a diverse range of products, from oil and latex paints to stains, cleaning chemicals, aerosols and paint applicators – so you can provide everything your customer needs for their paint project.

Benefits of True Value® Manufacturing:

• Recent expansion of our manufacturing capacity.

• Strong portfolio of paint and paint products, including brands like EasyCare® and Majic®.

• Commitment to providing high-quality and easy-to-use paint project applicators, tools and services to our customers.

1025 E. 54th St. Indianapolis, Indiana 317-275-9400 NHPA@YourNHPA.org YourNHPA.org

COMMUNICATIONS

Melanie Moul Communications & Content Manager mmoul@YourNHPA.org

Lindsey Thompson Senior Editor lthompson@YourNHPA.org

Carly Froderman Associate Editor cfroderman@YourNHPA.org

Jess Tillman Retail Training Editor jtillman@YourNHPA.org

Autumn Ricketts Graphic Designer

Olivia Adam Graphic Designer

Austin Vance Production Manager

Kallahan Beatty Communications & Production Coordinator

Freda Creech Sales & Production Assistant

Kevin Trehan Digital Media Specialist

Julie Leinwand Marketing Manager

ASSOCIATION PROGRAMS

800-772-4424 | nhpa@YourNHPA.org

Katie McHone-Jones kmchone-jones@YourNHPA.org

Director, Member Services & Events

Kim Peffley kpeffley@YourNHPA.org

Director, Organizational Development & Consulting

Jesse Carleton jcarleton@YourNHPA.org Training Manager & Editor

Renee Changnon rchangnon@YourNHPA.org Retail Engagement Specialist

SALES

LeAnn Day lday@YourNHPA.org

Publisher Scott Gilcrest

317-508-7680 | sgilcrest@YourNHPA.org

Director of Sales & Southern Sales Director

Jordan Rice

217-808-1641 | jrice@YourNHPA.org

Northern Sales Director

What You Need to Know About Business Transition

Next month, Paint & Decorating Retailer takes a look at the prevalent trends in business transition today and shares insights from industry experts and retailers on how to navigate the playing field to secure the future of your business. Plus, explore resources from the North American Hardware and Paint Association for buying and selling a business.

PAINT & DECORATING RETAILER

(ISSN 1096-6927): Published monthly except December by the North American Hardware and Paint Association, 1025 E. 54th St., Indianapolis, IN 46220. Phone: 800-737-0107. Subscription rates: January through November issues, $50 in U.S., payable in advance. Canada $75 per year. All other countries $100 per year. Single copy $7, except July issue, $25. Periodicals postage paid at Indianapolis, Indiana, and additional mailing offices. Postmaster: Send address changes to Paint & Decorating Retailer, P.O. Box 16709, St. Louis, MO 63105-1209. Returns (Canada): Return undeliverable magazines to P.O. Box 2600, Mississauga, Ontario L4T 0A8. PM# 41450540. Copyright © North American Hardware and Paint Association, 2023.

OUR MISSION

The North American Hardware and Paint Association (NHPA) helps independent home improvement and paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.

NHPA EXECUTIVE STAFF

Bob Cutter President & CEO

Dan Tratensek

Chief Operating Officer

David Gowan

Chief Financial Officer & Executive Vice President, Business Services

Scott Wright

Executive Director, Advanced Retail Education Programs

Whitney Mancuso

Executive Director of Innovation & Engagement

NHPA BOARD OF DIRECTORS CHAIRMAN OF THE BOARD

Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

EXECUTIVE VICE CHAIRMAN

Jackie Sacks, Round Top Mercantile Co., Round Top, Texas

DIRECTORS

Alesia Anderson, Handy Ace Hardware, Tucker, Georgia

Jay Donnelly, Flanagan Paint & Supply, Ellisville, Missouri

Ned Green, Weiders Paint & Hardware, Rochester, New York

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

Joanne Lawrie, Annapolis Home Hardware Building Centre, Annapolis Royal, Nova Scotia

Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon

SECRETARY-TREASURER

Bob Cutter, NHPA President & CEO

NHPA CANADA

NHPA CANADA

Michael McLarney, +1 416-489-3396, mike@hardlines.ca 330 Bay Street, Suite 1400 Toronto, ON, Canada M5H 2S8

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

Richard Jarrett, 314-432-7511, Fax: 314-432-7665

Knowing What’s Working

When it comes to technology and new processes and procedures, taking part in frequent assessments allows you to know if something is working or not. Fellow retailers share the steps to take to determine the ROI of your technology and ways to decide whether it’s a good fit for your operation.

ASSOCIATION

Counting on Culture and Tech

Meet one of the NHPA Top Guns Awards honorees, Eric Hassett. As owner and president of Hassett Hardware, he has learned the importance of hard work and taking care of employees. He shares best practices for embracing innovation to improve the customer and employee experience.

Doing More With Less

The caulk and caulk tools section is a core category for many retailers, but that doesn’t mean it needs to fill your shelves. See how one retailer has created a successful category with a limited amount of space.

JOHN ROSSMAN Former Amazon Executive

NEWS, PRODUCTS & TRENDS Get the Latest Updates

Scan this QR code or visit PDRmag.com/may to see these stories and more resources for your operation.

How to Know What Works

Determining the return on investment of any technology solution or operational process is a key to its success. It all starts with knowing the types of technology and processes your operation needs. Check out these additional resources for implementing and managing technology.

Onboarding Technology

Discover best practices for assessing your tech needs and learn where to discover the processes you need to make your operation successful.

Technology Right for You

Technology doesn’t come in a one-size-fits-all package. Read about three different types of tech and how each could work for your business.

Right From the Beginning

Surveying your employees is an easy way to gauge your technology needs. Use these questions to gather their input.

OPERATIONS Retaining Talent

Retaining employees can be difficult in today’s job market. Read how one retailer added training programs that gave their employees the tools to become better professionally and personally.

CATEGORY Top of the Line

Knowing which caulk is right for the job can make or break a customer’s project. Learn how to educate your customers on the type of caulk they need for specific projects and what to look for when purchasing a product.

PODCAST Talk of Expansion

Gain insights from industry leader Travis Detter, president of Spectrum Paint Co., as he talks about their expansion plan moving forward in a dynamic home improvement industry.

Scan the QR code or visit the website below to listen.

YourNHPA.org/podcast

The best paint jobs all start the same way, with Scotch® Painter’s Tapes. Scotch® Brand has a full line of painter’s tapes to help you conquer whatever surface you’re painting.

CONNECTIONS

How to Reach Dan

Dan Tratensek dant@YourNHPA.org

Investing in the Future

Most progressive business operators are fastidious when it comes to watching their financial statements. They realize that the difference between just getting by and taking a business to the next level comes through focusing on the details.

I have watched these retailers pore over every dollar and cent coming and going from their businesses and spend long hours looking for ways to squeeze more juice out of that financial lemon.

However, there is also another level of progressive retailers who come to understand both the science and art of running a retail operation. These owners and managers carefully scrutinize their finances, but they also exhibit a keen vision for when the value of an investment may not be measured by a more traditional return on investment (ROI) formula. These retail savants understand that sometimes an investment in the business isn’t quite so easy to measure. Take, for instance, some of the investments progressive retailers are making in technology.

Now, more than ever, we see retailers of all shapes and sizes evaluating the potential impact of everything from mobile devices to artificial intelligence. For some tech investments, the ROI is easy to see. For example, if you launch an e-commerce effort and it costs x amount to start up and maintain, you can then track sales generated through the e-commerce site and come up with a rudimentary ROI.

Investments, however, become a bit murkier when you start looking at something like electronic shelf labels or self checkout. Does an electronic shelf label translate directly to more sales? Does basket size increase when customers check themselves out?

There’s not necessarily an easy answer. In these cases, the ROI is more complicated. How much time would your employees save not having to change prices every week? How much of that saved time can be dedicated to helping customers or driving sales?

That’s why the entire concept of making investments in technology can be a bit more complicated than simply buying a new delivery truck or adding a new product line. But just because it is more complicated doesn’t mean it is any less important. Those same retailers who understand the difference between growth and stagnation in financial margins, also understand that some investments collect their ROI in more complex ways.

So how do you navigate these new waters? Well, for one, you can start by reading our article that begins on Page 20.

Then, you can go to YourNHPA.org/conference and learn more about our 2023 NHPA Independents Conference. At this premier event, you can talk to some of these tech providers to learn about ROI, hear from other retailers just like you who have made investments in technology and gain better insight into how these kinds of investments can make a difference in your business and balance sheet.

Dan M. Tratensek Chief Operating Officer & Publisher

“Now, more than ever, we see retailers of all shapes and sizes evaluating the potential impact of everything from mobile devices to artificial intelligence.”

Send your merchandising tips, event recaps, employee morale boosters and other stories to editorial@YourNHPA.org

Personalized Products

Adelaide’s Paint & Decor Caters With Customization

When a customer needs customized products, Adelaide’s Paint & Decor delivers in several ways. The store, located on St. Simon Island in Georgia, sells color-matched spray paints and tintable caulk, says owner Walter Rafolski.

The company began offering the custom spray paint as a service to its local train station. To keep the building looking new, the station maintenance workers use spray paint, which offers better protection against the wear and tear from the salty ocean air. Rafolski and his staff recreated the

historic colors used on the building into spray paints, and now customers can also bring in paint samples and have their own custom colors made into spray paint.

Adelaide’s Paint & Decor also offers tintable caulk, allowing employees to accurately match caulk to a customer’s preferred color based on an image or a small paint sample.

“The paint is put into the caulk tube and mixed by hand so the color is evenly distributed,” Rafolski says. “A hardener is added and the caulk is hand mixed again, and then it is ready to use in 30 minutes.”

At Adelaide’s Paint & Decor, along with custom interior and exterior paint, customers can

custom-colored spray paint and caulk.

Plan for Your Financial Future

Participate in the 2023 Cost of Doing Business Study at YourNHPA.org/codb and receive a free copy of the study and a personalized financial analysis.

Benchmark Your Business

Participate in NHPA’s Annual Cost of Doing Business Study

HOW DO YOUR NUMBERS stack up against industry averages? The North American Hardware and Paint Association (NHPA) is now inviting hardware stores, home centers, lumberyards and paint and decorating outlet retailers to participate in the 2023 Cost of Doing Business Study. Submissions are open from now until June 30 to share your operation’s financial data.

Every year, NHPA’s Cost of Doing Business Study offers data and insights to home improvement retailers on how to increase their profits and strategize for the future. For more than 100 years, NHPA has collected information from independent retailers for this study. Individual financial data is held in strict confidentiality and financial and operational data will only be published in aggregate.

How to Participate

Cost of Doing Business Study participants will receive a free copy of the study ($499 value), a personalized financial analysis with their operation’s financial results compared to industry averages, a what-if scenario generator to calculate how small changes can make a big impact and other financial metrics.

“Participating in the Cost of Doing Business Study gives retailers access to a wide range of data, from typical operations to high-performing operations, to give them a benchmark for their performance,” says David Gowan, NHPA chief financial officer and executive vice president of business services. “This way, retailers can make well-informed decisions to better position their operations for years to come.”

To participate today or learn more about the study, visit YourNHPA.org/codb.

Choose from four easy ways to share your information and participate in the 2023 Cost of Doing Business Study

• Online - Complete the online Cost of Doing Business Study form and/or submit your 2022 year-end financial documents at YourNHPA.org/codb

• Email - Send your company information and 2022 year-end financial statements to NHPA CFO David Gowan at dgowan@YourNHPA.org .

• Mail the Survey - Print and complete the survey using your 2022 year-end financial data and mail it to NHPA.

• Mail Statements - Fill out the company information section of the survey, attach a copy of your 2022 year-end financial statements and mail them to NHPA.

NHPA’s Mailing Address

Attn: NHPA CODB Coordinator 1025 E. 54th St. Indianapolis, IN 46220

Continuing Education

Learn about all of the programs NHPA has to offer by downloading your free copy of the Academy for Retail Development Catalog at YourNHPA.org/academy.

AWARDS

Celebrate the Bright Future of the Industry

Congratulate the Young Retailer of the Year honorees at a reception held at the 2023 NHPA Independents Conference.

NHPA HAS ANNOUNCED the recipients of the 2023 Young Retailer of the Year award. These dynamic individuals were selected from a field of inspiring independent home improvement retailers under the age of 35 from across North America—and these 11 honorees represent the future of the industry.

The Young Retailer of the Year honorees will be recognized at a reception held at the 2023 NHPA Independents Conference in Dallas on August 2. Join NHPA to meet the honorees and learn how they’re making an impact in their operations, communities and across the industry. Spend time mingling with retailers, vendors and other industry players during the reception.

Tickets are available for the reception in a limited quantity. Reserve yours now at YourNHPA.org/conference, and look ahead to the September issue of Paint & Decorating Retailer for complete coverage of the honorees.

Thank You to Our Program Sponsors

NHPA would also like to recognize the 2023 Young Retailer of the Year program sponsors for their continued dedication to the independent retailers who are pushing the boundaries of the industry every day.

2023 Young Retailer of the Year Honorees

Under $3 Million in Annual Sales

• Jessica Talerico: owner of Old Lyme Hardware in Old Lyme, Connecticut

• Zane Watkins: general manager and co-owner of Village Hardware in Hatch, New Mexico

Over $3 Million in Annual Sales

• Travis Hellvig: operations manager of Hartford Building Center in Hartford, South Dakota

Multiple Stores

• Ryan Clouse: owner of Clouse Family Ace Hardware in Oscoda, Michigan

• Austin Diehl: director of retail operations at Randy’s Do it Best in Virginia

• Scott Fines: owner of Fines Home Hardware Building Centre in Ontario, Canada

• Michael Gleason Jr.: assistant general manager and head purchaser at Gleco Paint in Pennsylvania

• Matt Lambert: regional vice president, Nation’s Best in Oklahoma and Texas

• John Luhring: owner of Parkersburg Hardware and Garden Center and Allison Hardware and Floral Center in Iowa

• Dalton Meny: head of operations at Meny’s True Value in Indiana

• Katie Prus: owner and manager of Abbotsford Paint in Abbotsford, British Columbia, Canada

You Won’t Want to Miss These Podcast Episodes!

Subscribe and listen to the “Taking Care of Business” podcast at YourNHPA.org/podcasts

Cultivating a Career in Hardware

EPISODE 87

Retailers Marty Ellison of Miller Hardware Co. and Josiah Gates of The Aubuchon Company discuss turning jobs into careers in the home improvement industry.

A Legacy of Innovation COMING MAY 15 | EPISODE 88

Hear from 2023 Top Guns honoree Eric Hassett, a third-generation leader of Hassett Hardware, on how technology and customer service intersect within his company.

Schaefer Talks “Recovery Hardware” IN CASE YOU MISSED IT | EPISODE 69 NHPA’s Dan Tratensek and Renee Changnon have a conversation with Gina Schaefer, CEO of A Few Cool Hardware Stores, a chain of 12 stores in the Washington D.C. and Baltimore metro areas.

EDUCATION Ready to Enroll?

The application deadline is June 1. Contact Scott Wright, NHPA executive director of advanced retail education programs, at 317-441-4136 or swright@yournhpa.org

#10: You get to think outside the box, literally, and come to Indianapolis three times over a six-month period to attend in-person class sessions. Indianapolis is also home to the Indy 500 in May!

#9: You will become a student again. The Retail Management Certification Program is a college-level program. There’s homework and a big semester project, and you get a diploma when you finish—the Retail Management Certification Program Certificate.

#8: You’ll make friends fast—a network of business friends, that is. Friends to last your entire career! The program has an amazing network of alumni willing to help each other, as well as current students enrolled in the program. It’s a benefit that will take you through your whole career.

#7: Our university instructors are dialed into the industry. They are professors who run business schools at top universities. They know retailing. One used to own a home center, and another is the dean of Butler University’s Lacy School of Business.

#6: Our industry-expert instructors are the best of the best. They were once retailers themselves and have spent their careers (and have decades of experience) helping independent home improvement retailers drive sales and profits.

#5: Our alumni instructors come back to teach. Some of our alumni have risen to the top of their organizations since graduating and come back to give back what they received when they went through the program. After graduating, most

TO CELEBRATE THE 10-year anniversary of NHPA’s Retail Management Certification Program, here are the top 10 reasons you should attend this year—or enroll a key person in your business. Drum roll, please….

students remain involved with the program and NHPA. We even have a Retail Management Certification Program 10th Anniversary Reunion scheduled on Aug. 2 at the 2023 NHPA Independents Conference.

#4: Your store is your lab for the semester. Students initiate and complete a semester-long business improvement project designed to fix or create something that increases the baseline for success in your business. We estimate that, on average, the return on investment (ROI) from applied learning, business improvement projects and “quick wins” is five times the amount of tuition paid. If you do it right, it can pay for everything—and the returns keep adding up year after year.

#3: You’ll gain access to our business improvement project database. It’s full of past student project reports and presentations for almost every retail topic imaginable. It’s also filled with a plethora of best practices. And students continue to have access to the semester project database long after graduating from the program.

#2: You can receive a scholarship to attend. Most students apply for (and receive) a scholarship to attend the program from our network of industry partners who support the program. We also recently launched the Retail Management Certification Program’s Pay it Forward Scholarship Fund to help students offset the cost of attending.

#1: The No. 1 reason you should join the Retail Management Certification Program class of 2023 is you get to hang out with the cool folks at NHPA for six months!

Gain Profit-Focused Store Operations Training With NHPA’s Retail Management Certifi cation Program

Built for owners, managers and key employees in the independent home improvement industry, NHPA’s Retail Management Certification Program focuses on learning skills to grow store sales and profits.

Follow in the footsteps of more than 250 retailers who have graduated from the program. Students on average have earned more than 5X the return on tuition paid after implementing their student projects and putting what they have learned into practice!

These companies are advocating for independent retailers by supporting the program.

OUTREACH Retailer Recommendations

Send an email to editorial@YourNHPA.org telling us about the products your customers love and why they are such a hit in your business.

SPECIALTY PAINT

MAJIC PAINTS | majicpaints.com or 800-848-1898

An all-in-one paint and primer perfect for any repurpose project, Majic Paints’ Diamond Hard RePurpose is more versatile than chalk paint, which is marketed strictly for furniture. RePurpose can be used on a variety of hard-to-paint surfaces including brick, wood, glass, plastic, tile and more. Use over epoxy, lacquer, latex paint, oil enamel and factory finishes. This complete one-step process sticks to almost any surface without sanding or priming.

UTILITY TOOL

ZIBRA | enjoyzibra.com

The Open It! is a 4-in-1 utility tool with the ability to cut, slice, snip and unscrew, helping to open anything with speed and efficiency. Fitted with angled blades, the Open It! can cut through tough plastic, zip ties, cardboard, flower stems, thin wires and more. Safely hidden in the Open It! handle is a retractable razor blade to slice through tightly taped packages and stubborn bubble and plastic wrap, as well as a pull-out screwdriver with both flat and Phillips heads. Made for inside and outside use, the Open It! eliminates the need for multiple singular use products.

HOBBY KNIFE SET

BLACK+DECKER | blackanddecker.com

The BLACK+DECKER Hobby Knife Kit includes a 26-blade assortment suitable for cutting a wide variety of materials including paper, card stock, soft woods and more. The Hobby Knife’s handle is designed for comfort, using oversold material and contours to provide support during extended periods of use. The kit also includes a self-healing cutting mat and a metal ruler.

RATCHET CAULK

GUN

DRIPLESS | dripless.com or 800-960-1773

The ETS1400 is a lightweight caulk gun with a cradle frame and ratchet rod. It is easy to use and suitable for DIY projects around the house.

DESIGNER WALLPAPER

ARMANI/CASA | armani.com

Typical folklore patterns are reinterpreted into a contemporary look with branches and pomegranates printed on precious Indian silk with Armani/Casa’s Bayadère wallpaper. The sharp edges and the contrasting colors define shapes and highlight the liveliness of the design. Bayadère is part of the Precious Fibers collection of Armani/Casa exclusive wallcoverings and is made in Italy.

PAINT STRIPPER

ECO SOLUTIONS LIMITED | ecosolutions.co.uk

MAX Strip® Paint & Varnish Stripper removes interior and exterior paints and varnishes from various surfaces. It safely removes paints and varnishes without damage to the surface being stripped. Max Strip products are water-based, making them a safer removal option and cover 30-50 square feet per quart/liter.

FOAM FILLER

RED DEVIL | reddevil.com

Red Devil Foam & Fill Window & Door Polyurethane Straw Foam Sealant is specifically formulated for filling, insulating and sealing around windows and doors. It takes the shape of all cavities, forming a permanent, airtight and waterproof seal on wood, metal, masonry, glass and most plastics. It stops air infiltration and in turn prevents heat loss and drafts and is environmentally safe, containing no CFCs and HCFCs.

WOOD FILLER

GORILLA GLUE | gorillatough.com or 800-966-3458

Gorilla High Performance Wood Filler is the go-to product for strong, durable repairs on cracks, gouges and holes. The unique formula is easy to spread and allows for a smooth, natural finish. It is easy to sand, and its high-performance stainability and paintability provides a professional-looking finished project.

SPRAY PAINT

RUST-OLEUM | rustoleum.com

Rust-Oleum® pairs the trusted long-lasting durability of Stops Rust Gloss Protective Enamel with its Turbo Spray System® to offer four times more paint per second. The tall fan tip coats the surface faster, and the mega-sized 24-ounce can of paint is ideal for big pieces and projects.

WOOD

RESTORATION SYSTEM THREE RESINS

systemthree.com or 800-333-5514

Rot is a fungus, and it can spread quickly, infecting and then destroying sound wood in its path. Replacement can be expensive or time-consuming. The EndRot system is a solution that provides complete wood repair and restoration. It stops the progression of wood rot and decay fungi, restores rot or insect-damaged wood and protects wood for many years.

EASY APPLICATION SUPERIOR COLOR CONTROL

Wiping Stain

• Thick, robust stain ideal for general woodworking and difficult to stain wood, veneers, and faux wood graining

• Excels on previously finished surfaces including fiberglass, metal, and composition surfaces, achieving a rich, uniform color in a single application

• Available in 24 trend forward colors

Where to Start

Create a road map for adding tech to your operation with insights from fellow retailers. Learn more at PDRmag.com/tech-road-map

BANG BUCK FOR YOUR

Why You Should Be Measuring Your Tech’s ROI

BY LINDSEY THOMPSON

Ready or not, technology is the future of the retail industry, and it’s here to stay. The pandemic permanently changed the retail landscape and how consumers shop and engage with businesses, placing an additional focus on technology. While not every operation needs to adopt the latest and greatest innovations, retailers should consider how technology can improve different areas of their operations and take a close look at the return on investment (ROI) for any type of technology. As you evaluate current and future tech options for your operation, Paint & Decorating Retailer shares best practices from experts and fellow retailers on how to measure ROI and the benefits technology brings to an operation.

Beyond the Numbers

Typically, when measuring ROI, you take the amount of money you earned, subtract the amount you invested and divide that number by the amount invested. But that formula doesn’t translate to all types of technologies or take into account factors beyond money.

When it comes to evaluating technology, retailers should consider other aspects—efficiency gains, time saved, customer engagement, brand awareness and others—to determine whether the technology is successful or not.

Rebecca Wettemann, CEO and principal of Valoir, a technology research firm, says retailers should look beyond traditional ROI formulas and key performance indicators (KPIs) specific to a technology.

“When analyzing ROI, it’s not so much about coming up with a specific number but understanding what you are going to spend and the benefits you’re going to get from that investment,” Wettemann says. “It’s less about the ROI numbers and more about what you are trying to accomplish as a retailer.”

Two key factors to consider are reach and frequency, Wettemann says. Reach refers to the number of people, applications or processes a technology touches, with more touches equaling greater return. The more frequently a technology is used, or the more it can be applied across an operation, the greater the ROI.

“If I’m filling a bathtub, it’s a lot faster with a bucket than a measuring cup,” Wettemann says. “Look at how many people and processes you are impacting with a technology—that’s where you can see a true measure of its impact.”

With so many different ways to measure success, it may feel overwhelming or not worth your time, but Wettemann says taking stock of a technology’s impact is crucial. Retailers, especially small business owners, have many choices on where to invest money and need to be savvy about where that money goes.

“Retailers should look at technology investments the same way they’d look at other business investments, such as enhancing a storefront or hiring more workers,” Wettemann says. “When you look at the ROI of technology, you’re making sure you’re getting the most value for what you’re investing in your business.”

“Look at how many people and processes you are impacting with a technology—that’s where you can see a true measure of its impact.”

Rebecca Wettemann, Valoir

OPERATIONS

3 Steps to Tech

Read three best practices for successfully adding technology to your operation. Learn more at PDRmag.com/bring-on-tech

This mindset is especially important for small businesses that need to account for every dime spent. Wettemann suggests any business operator to take a close look at what a specific investment could yield in another area of the business. For example, instead of spending it on a new technology, consider whether that money could offer a better ROI earning money in a high-yield savings account or invested in physical store improvements.

“Business owners should take into account the payback time of any investment as well,” she says. “They need to look at how many months or years it will take to recoup the initial investment. The faster you can recoup an investment the better the ROI because you can then invest that capital elsewhere.”

Expanding Your Reach

ROI can also come in the form of more customers or a new customer base, as is the case with Pintura Paint in San Antonio, Texas. Since taking over the business in 2019, managing partner Danny Garcia has focused on using marketing—specifically digital communications—to boost sales and connect with customers.

One of his first tasks was creating a Facebook page for the store, where he posts five to seven times a week using Hootsuite to manage and schedule posts. Posts include videos of new products, the store and special events promotions. His children, 8-year-old Arianna Garcia and 4-year-old Polo Garcia, also make frequent appearances on the social feed to the delight of many customers.

“Establishing a digital presence was the biggest challenge when we took over,” Garcia says. “The previous owners didn’t have a good foothold on any social media platforms or an online presence, so I took that challenge on and it has really paid off.”

Thanks to managing partner Danny Garcia’s dynamic social media strategy, Pintura Paint frequently sees new customers.

“Establishing a digital presence was the biggest challenge when we took over. The previous owners didn’t have a good foothold on any social media platforms or an online presence, so I took that challenge on and it has really paid off.”

Danny Garcia, Pintura Paint

The emphasis on building their digital presence has led to new customers coming in every week. Garcia says he frequently asks new customers how they found out about the store, and if they say online, he asks where specifically.

“I want to know if they found us on Google, Facebook, Pinterest or somewhere else online,” he says. “While a lot of people don’t remember specifically, those metrics help me better gauge where our marketing is working.”

For his operation, Garcia says technology looks different than it might for a hardware retailer or even another paint operation. But no matter what your technology looks like, it’s still important to assess what’s working and what’s not and come up with ways to measure success, whether that’s measurable data or anecdotal stories.

“In the paint world, technology just looks different,” Garcia says. “But it is important to evaluate what you’re doing and if it’s working and make adjustments as needed.”

Moving the Mission Forward

Technology plays a large role in Heuser Hardware’s successes over the years. A key driver in the company’s technology investments, Bobby Heuser looks beyond traditional ROI when measuring a technology’s success.

Heuser owns the operation—which includes three hardware stores and one paint store in the Hilton Head area of South Carolina—with his parents, Renee and Bob. The Heuser family has implemented a wide range of technologies since opening in 2015.

While measuring traditional ROI is important, there are other factors a retailer should consider, Heuser says. He added electronic shelf labels (ESLs) to the Pawleys Island store in April 2022, the Hardeeville store in September 2022 and the Bluffton store in March 2023. Heuser looked beyond the cost and the payback period and took into account secondary benefits like improving efficiency and customer service to measure the success of the new technology.

One such metric Heuser assesses is employee efficiency and time spent with customers. Many of the store’s employees are retired trade workers with specific skills in electrical, plumbing and construction that are critical for helping customers. Instead of putting 30 hours a week into price changes, thanks to the ESLs, employees use the same 30 hours a week to help customers, netting a positive ROI on employees’ time.

THE NEXT STEP

THE NEXT STEP

Last year, Heuser Hardware started adding electronic shelf labels (ESLs) to its stores to improve customer service.

Danny Garcia (left) at Pintura Paint uses data and anecdotal input from customers to determine whether his digital efforts are effective.

Not Afraid to Fail

TESTING TECH DESPITE THE RISKS

When it comes to technology, not every implementation is a success story. Just like in life, those mistakes can be great learning experiences, even if it’s just learning to fail faster next time, which is the lesson Bobby Heuser, owner of Heuser Hardware, has learned from his foray into technology.

Heuser says he added informational kiosks in the garden center and grilling departments at his stores but found customers weren’t utilizing them as expected, and they didn’t provide that additional level of service he was hoping to achieve. He has also tried some mobile POS solutions that didn’t pan out either, but those missteps have not deterred him. He tells his managers, and takes his own advice to heart—there is room to try new ideas and fail, but it is beneficial to learn to fail quickly.

“You have to be open to try and accept failure because that’s how you learn,” Heuser says. “Where people get into trouble is when they try something that doesn’t work and cling to it for way too long. That’s usually where your losses occur. If you’re going to fail, fail quickly and move on to the next thing, because then you’re going to be available to try other opportunities that can succeed.”

Jeremy Peterson, owner of Family Hardware in Cape Coral, Florida, has his own story of taking a gamble on technology and that risk paying off. As he was opening his operation’s second location in Fort Myers, Florida, in 2022, he discovered the company’s existing POS company could not support the system in the new store. He interviewed several other POS providers but couldn’t find a good fit for his company’s needs.

During this time, he was also redesigning and updating the company’s website. With his self-taught IT background, Peterson decided to create his own POS system.

“The website backend was very similar to what we needed for the POS system,” Peterson says. “So as we were building out the store and getting it ready to open, we were building out the website with the developer. We were able to get the new POS system ready for launch on day one of the store opening.”

While going out on his own was a big risk for Peterson, his willingness to create his own solution paid off with a successful system that he also implemented at the original location.

“We learned that just because you pay for a service, it doesn’t mean it is always going to work for you,” Peterson says. “There is a sense of pride in knowing that our system fulfills our needs.”

DIG DEEPER INTO INNOVATION

Make Plans to Attend the 2023 NHPA Independents Conference

Whether you’re an early adopter or hesitant to dive in, no matter where you sit on the technology spectrum, you won’t want to miss the 2023 NHPA Independents Conference. Featuring keynotes by former Amazon and Google execs and panel sessions from industry heavy-hitters, the conference will deliver a two-day experience like no other. Join us in Dallas Aug. 2-3! Learn more at YourNHPA.org/conference

A GOOD FIT

Continued from Page 24

“We also found that digital price tags increase accuracy in our stores—the price on the shelf is always the price at the front,” Heuser says. “The tags decrease frustration and give the customer more information about the product, providing another touchpoint and a higher level of customer service.”

For Heuser, technology is successful for the operation if it aligns with and reinforces the operation’s mission statement. At one point, the Heusers considered adding self checkout but decided against it for the time being because they felt it wouldn’t advance their mission and goals.

“We try to be the most helpful company in our town and want to introduce technologies that reinforce that value proposition,” Heuser says. “Just because it’s a positive ROI on paper, doesn’t necessarily mean it’s going to be an overall positive for your company or customers. It has to line up with your mission.”

The Heuser family is committed to progress and adding technology that makes sense for the business.

CULTURE COUNTS

At Hassett Hardware, owner and president Eric Hassett has encouraged a culture of service, collaboration and open communication.

PEOPLE PROGRESS +

Top Guns Honoree Builds a Culture of Service and Technology

BY LINDSEY THOMPSON

Hardware—along with hard work and a love for people—runs in Eric Hassett’s blood. Those qualities have led to an extremely successful career at Hassett Hardware and have contributed to him being named as one of this year’s North American Hardware and Paint Association (NHPA) Top Guns Awards honorees.

ERIC HASSETT

HASSETT HARDWARE Owner and President

Photo Credit: Alex Johnson | AJPHOTOGRAPHER

Improving Efficiency

Learn how Eric Hassett and Hassett Hardware utilize technologies to improve customer service at PDRmag.com/technology-mix

Top Guns honorees are chosen for their commitment to and passion for the independent home improvement channel. They are pillars of innovation and have helped grow their businesses through strategic leadership with consideration for their communities and teams. This year’s honorees were specifically chosen for their focus on utilizing technology to improve operations.

Eric is the owner and president of Hassett Hardware, which includes five retail stores and one outdoor power rental equipment location in the San Francisco Bay Area. The business was started in 1957 by Eric’s grandfather Bob Hassett, and Eric got his start in the company and first taste of the industry when he was 11.

“My grandfather had me come to the store after school to pump kerosene out of a 55-gallon drum into glass containers and put 49-cent stickers on the containers,” Eric says. “I moved to sweeping up the nails and then got a big promotion—sorting nuts and bolts.”

Eric’s father, Larry Hassett, who started working in the business when he was 13, became owner in 1986, carrying on the legacy of being customer-focused that Bob started at Hassett Hardware. Eric says his future in home improvement retail was solidified when his dad opened the operation’s Palo Alto location in 1993. It was the company’s first computerized store, and Eric spent weekends and breaks from college working there learning the ins and outs of retail from operations to technology to company culture. He came back to the business after

graduating from the University of California, Davis with the intent to work for his parents for a year while he figured out his next career move—either go to law school or work as a political consultant.

“During that year, my dad was great about stepping back and letting me take on a leadership role,” Eric says. “I quickly realized the business was a great fit because I like entrepreneurship, managing people and solving customers’ problems.”

Culture Comes First

While Hassett Hardware has many accomplishments to its name, the biggest key to its success has been a focus on cultivating a positive company culture. Eric prioritizes company culture, mission and values, and he can remember the exact moment he realized the operation needed a shift. He was attending an Ace Hardware event in 2012 where Linda Small was presenting on Everything DiSC®.

“At that time we had four stores, and I was constantly struggling to figure out why we weren’t executing consistently across locations,” Eric says. “As Linda was presenting and I read through my profile report, I realized I was the problem. I had not been intentional with how I explained our culture.”

In 2013, Eric, his brother Richard and his leadership team rolled out the operation’s core values, mission statement and vision to employees and began the process

At age 11, owner and president Eric Hassett (center) started working in his grandfather’s hardware store. After college he fell in love with the industry, especially managing people and solving customers’ problems.

Where to Start With Tech

Eric Hassett shares his best practices for getting started in tech and how to evaluate what your operation needs to succeed. Learn more at PDRmag.com/bring-on-tech

of creating consistency across each location. The team started with nine core values and two years ago, reworked the values down to four to make them easier to remember.

“The original nine core values are still seen in the four we have now. They are now just easier to apply to what we do,” Eric says. “Everything we do is focused around our core values, so it’s important that our employees are able to remember them.”

The four core values include: Every Customer, Every Time; In It Together; Do the Right Thing, Not the Easy Thing; and Communication Makes or Breaks Us. Eric says the leadership team makes sure everything they do falls in line with those four values to set an example to all employees to incorporate them into their jobs.

Core values play into the hiring practices at Hassett Hardware as well. Eric says they hire with intention, looking for employees who are in line with the company’s values and mission.

“Our core values are everywhere—in our communications, on signs on the walls, talked about in our manager check-ins and more,” Eric says. “Those values are how we make sure we have a shared understanding across all stores, provide a high level of customer service, hire the right people and continue to grow and maintain who we are.”

The operation’s commitment to its values has paid off. Eric says one of his proudest moments was when The Mercury News in San Jose, California, named Hassett Hardware as one of the best places to work in the Bay Area in 2013. They have won the award ten years in a row since.

“This award is given based on employee nominations, so to win it when we are surrounded by all these Silicon Valley companies offering free massages and unlimited vacation hours lets us know we’re doing something right,” he says. “The effort we are putting in to treat everybody with kindness and respect and doing the right thing for everybody—not just the bottom line—is working.”

Tech That Works

Growing up in Silicon Valley, Eric says he has always had an interest in technology. He has taken that passion and made it work for Hassett Hardware, bringing in programs and processes that ultimately offer a higher level of customer service, which was a priority instilled by his grandfather at the beginning of the company.

Living in Silicon Valley, Eric Hassett has always been interested in technology and how it can improve service.

GROWING TECH

+

ABOUT HASSETT HARDWARE

Founded in 1957

78 % DIY Focused

5 Retail Stores & 1 Outdoor Power Rental Equipment Location

AUGUST 2-3 | DALLAS MEET ERIC AND THE OTHER HONOREES

LEARN MORE ON PAGE 5

“I read a study that said only 7% of an employee’s time is spent giving meaningful assistance to a customer,” he says. “I want that number to be more like 40% or 50% for our employees, so I look for technologies that can achieve that goal.”

Eric started simple, adding operation-focused technologies that eliminated pen and paper processes and allowed employees to focus more of their time and energy on the salesfloor. Now, each store requires very little employee time for ordering and inventory management thanks to programs that automate those tasks.

The operation has recently been testing electronic shelf labels (ESLs) as another way to save employees time and effort. With ESLs, any price changes are done digitally and without numerous hours spent physically changing price tags. Because it is an expensive technology that requires a large upfront investment, Eric says he is also interested in other ways ESLs will improve efficiency, such as having the tag flash a light for special orders or flash to help employees find specific items when doing inventory.

During the summer of 2022, Hassett Hardware started using the Theatro communication system. Eric says the system has eliminated over 50% of broadcast transmissions across the store and employees are only hearing the conversations they need to hear so they can better focus on customers.

Technologies

implemented include:

Mobile Communications Systems

Electronic Shelf Labels

Inventory Management Programs

Currently, Eric is working to bring in the autonomous robot from Badger Technologies, which roams the store each night and checks for price errors, product outs and misplaced items. Employees manning each department will get a report every morning listing the errors and can easily find and fix them.

“Rather than send the employee for an hour down an aisle to try and catch these errors, my hope is the robot does the work and then provides the checklist so my employees can get to work fixing them faster,” Eric says. “If I can cut the time they need to spend to improve the accuracy and aesthetics of their aisles from an hour to even just 15 minutes, that’s going to be more effective. They can use that saved time to focus more on customers.”

When it comes to adding technologies, Eric says he is not looking to replace employees, but rather enhance their roles within the company. Any technology Hassett Hardware has in place allows the employee more face time with customers.

“Service is going to be our differentiator today, tomorrow and for the next 10 years,” Eric says. “Anything we do will follow this priority.”

Help Along the Way

As he looks back on his career so far, Eric is grateful for his parents, who started him on his successful career path.

“My dad had the foresight to step back when I came on. He didn’t micromanage me but brought me along and empowered me,” he says. “I also had my mom in my ear saying, ‘You don’t have to do hardware.’ So I never felt trapped.”

In his career, Eric says he has been fortunate to be part of a group of Ace Hardware retailers who have been a positive influence in his professional life, including Gina Schaefer, Mark Schulein, Michael Wynn and Jeremy Melnick—all coincidentally former Top Guns.

“Whether it’s chats at conferences or being hardware dorks and talking about retail philosophy over drinks, my peer group has been really strong, and that’s contributed to my successes,” he says. “It’s a community, and I would not be able to do anything I do without it.”

The team back at Hassett Ace Hardware has also played a huge role in Eric’s—and the operation’s—successes, helping him grow as a leader and allowing the business to thrive. He says it’s a huge honor to be named as a Top Guns honoree, and he is proud to be joining the ranks of previous honorees.

Eric attributes their current successes to having his brother Richard and the leadership team step up to the challenges of retail and embrace change as an opportunity, not a hassle.

“Ultimately, this award goes back to my team,” he says. “My name might be on the plaque but what we’ve done with our culture, our stores and taking care of our customers, that recognition goes to our 145 employees who do this work day in and day out. I want them to understand we’re being recognized for excellence by all of their efforts, not just mine.”

“Ultimately, this award goes back to my team. I want them to understand we’re being recognized for excellence by all of their efforts, not just mine.”

—Eric Hassett, Hassett Hardware

Count on Caulk

FINDING BIG SALES IN A SMALL CATEGORY

The caulk and caulk tools category can be a source of high-volume sales, regardless of how much shelf space you dedicate to it in your operation. Paint & Decorating Retailer talked to co-owner Carey Lockhart at East Bay Paint Center, who shares how the store earns high-volume business in caulk and caulk tools from just one endcap.

BY JESS TILLMAN

Boosting Sales

Teach your employees the importance of add-on sales to increase transaction size and revenues at YourNHPA.org/selling-skills.

Maximizing Space

In 1989, East Bay Paint Center opened in Albany, California, across the bay from San Francisco. Since then, the store has doubled in size and quadrupled its annual sales. One thing that hasn’t changed in size, however, is its caulk and sealant category. Still positioned on a 4-foot endcap, this top selling category sees constant inventory rotation in a small space. Lockhart grew up in the store over the past 34 years as her father, Bob Langbein, owned the store and worked alongside her mother, Maria Langbein. Lockhart has seen the store expand over the last three decades and through this, she has seen success with a small but well-curated caulk and caulk tools section.

Taking a Chance

Even with such a small section, keeping items in stock is still a challenge. That’s why Lockhart and her team have varied the caulk product and tools section throughout the years, offering a range in price and quality to see what sells best and what customers’ responses are. This strategy separates East Bay Paint Center from the competing paint store across the street and the big-box retailers in the area.

“Because we have a wide range of products, our customers know we will have what they need in stock,” Lockhart says. “If we don’t have it, we can get it in one to two days. We receive shipments five days a week, allowing us to get items in quickly when customers need them.”

Beyond receiving frequent shipments, being in the independent market has allowed East Bay Paint Center to try new things.

Color Matching Made Easy

Adelaide’s Paint and Decorating spruced up its caulk and caulk tool section with customizable caulk that can be tinted to any color needed. Turn to Page 10 to read more about Adelaide’s Paint and Decorating’s specialized service and sell your customers on these projects that benefit from tinted caulk.

Where to Use Tinted Caulk

1 2 3 4 5

Matching paint color for a seamless transition between wall and trim.

Match to tile grout for a waterproof seal on edges of backsplashes and showers.

Create a clean, color-matched seam between cabinets and walls.

Seal the edges of tile floors with caulk that matches the grout.

Fill in cracks with exact color-matching caulk that works on most surfaces.

The team at East Bay Paint Center works together to bring in a variety of caulk products for customers.

More Than Caulk

Read how one store took its caulk category to the next level and connected with the community at PDRmag.com/buhrmesters.

Preparing DIY Projects

If a DIYer comes in with a caulking project, ask them questions to lead them to the right product. Questions can include where the caulk will be applied, what types of surfaces are going to be caulked and how much movement will be placed on the joint that is being caulked. When they’ve selected the product that will work best for their project, guide them through the caulking process for best results.

1. Clean the project area thoroughly. Scrape away old caulk with a putty scraper or knife.

2 . Use tape to outline the area to make clean-up faster.

3. Apply caulk to the cleaned area. Make sure to angle the caulk tube at a 45 degree angle and pull the tube, not push, for the best results.

4 . Wipe away excess caulk to create a smooth edge by using a caulk finisher tool or a soapy finger for easy results.

5. Remove the tape by lifting it upwards at a 45 degree angle away from the seal to keep it smooth and intact.

Source: The Best Caulking Tips to Get Professional Results, The Spruce

“We take chances on products,” Lockhart says. “For example, if it’s a newer product that may be slightly more expensive, we can purchase a small amount to see how well it sells in the store. If it sells well, we know it’s something we should keep on the shelves.”

For example, one product they took a chance on through this method is now one of their top selling SKUs, with more than 17,000 units sold in 2022 alone.

“If someone wants to try something new, we can order it tomorrow and have it in the store three days later,” Lockhart says.

Empowering Employees

A unique feature of East Bay Paint Center is how ordering is completed. Employees are encouraged to take control of a section or category and manage the inventory for that area.

“We encourage employees to own a section of the store,” Lockhart says. “They can bring in new products or try new layouts.”

This strategy has been successful in the caulk and caulk tools category, where ordering and stocking is done by an individual employee. Though it’s only a 4-foot endcap, the section is constantly updated with rotating inventory in a range of prices and purposes.

“Constantly rotating caulk and caulk tools allows our employees to become more involved in the business which, in turn, keeps them motivated and engaged with their jobs, the store and the community we serve,” says Lockhart.

“We take chances on products. For example, if it’s a newer product that may be slightly more expensive, we can purchase a small amount to see how well it sells in the store. If it sells well, we know it’s something we should keep on the shelves.”

— Carey

Lockhart, East Bay Paint

Center

Co-owners Pablo Meza and Carey Lockhart proudly display their caulk and caulk tools section in the center of the store.

Grow Your Following

Discover four ways to engage with TikTok and grow a following at PDRmag.com/tiktok-following

TIME TO TALK ABOUT TIME TO TALK ABOUT TIME TO TALK ABOUT TIKTOK TIKTOK TIKTOK

5 COMPELLING DATA POINTS FOR USING THE PLATFORM

WITH 62% OF GEN Z USING TIKTOK —according to a study conducted by Material, a global strategy, insights, design and technology partner—joining the platform and building a following can cement relationships with customers who will soon make up the majority of your sales. The stats speak loudly—TikTok users are twice as likely as users of traditional social platforms to recommend a product or service they’ve discovered on the app and one-and-a-half times more successful at convincing others to try the product or service. With many big-box stores already utilizing the platform and engaging with consumers successfully, it is vital for independent retailers to consider investing time and resources in the platform.

55%

of users get on TikTok to research new brands or products

36%

of Gen Zers want to learn about products through short-form videos like TikToks

2 out of 3

TikTok users are likely to buy something while on the platform

40% Brands are remembered

more on TikTok than on other platforms

TikTok users are

1.3x

more likely to know about products and trends before their peers

Get

Your Free Copy of the 2023 Cost

Each year, NHPA’s Cost of Doing Business Study delivers data and insights to help retailers increase profits, cut costs and strategize for their financial future and success.

Participate by June 30 to get a free copy of the study

B

B U SI N E S S F O R S AL E

Northwest Farm & Home Supply Co.

Location: Lemmon, SD

Gross Revenue: $3 21 million

and warehouse space on 4 acres. The main bldg was constructed in 1994 with additions constructed in 2002 & 2004. Single story with 22’ clear height level doors and two dock height doors

B U S I N E S

Central Vermont Paint , Flooring , and Decorating

Business

Location: Vermont

Gross Revenue: $2.82 million

Price: $1 1 million

Full-service decorating store providing

kitchen/bathroom remodeling, cabinetry product o erings, design assistance, specialized service, and professional installation

B U S I N E S S F O R S AL E

Home Improvement Supply Store

Location: Missouri

Gross Revenue: $1 04 million

This historic home improvement and hardware store is a staple of its community and operates from its headquarters in Missouri. The Company is a long-standing retailer and installer of consumer and commercial improvement products

Hoosick True Value

Location: Hoosick Falls, New York

Gross Revenue: $1.26 million Price: $1.875 million

This opportunity o ers a turnkey sale of a general hardware operation located in northeastern Rensselaer Co., New York The business serves five towns, southwestern Bennington Co , Vermont, and 25 miles east of Troy, New York

B U S I N E S S F O R S AL E

Private Business

Location: Alabama

Gross Revenue: $2.21 million

Price: $649,000

B U S I N E S S F O R S AL E

Private Business

Location: Pennsylvania

Gross Revenue: $1.6 million

SEE KI N G B U S IN E S S E S

Gold Beach Lumber Yard

We are looking for:

•

•

•

• We prefer to keep all employees as part of the acquisition

• Single-store and multi-store

hardware operations

• Located in the Pacific Northwest

• Store size of 5,000 ft2-30,000 ft2

Take Tech Further

This August, don’t miss the NHPA 2023 Independents Conference where you’ll discover innovative best practices, insights and resources. Learn more at YourNHPA.org/conference

Betting on Tech

3 WAYS EMBRACING INNOVATION MAKES AN IMPACT

MORE THAN JUST something to do to keep up with your competition, technology comes with many benefits. Read on to discover three ways technology can make your operation successful, and turn to Page 20 for more ways that innovation boosts your business.

1

ADD TO THE BOTTOM LINE

While technology requires an investment—and sometimes a significant one—in the long run it can improve your bottom line. Technology for inventory management can prevent over-ordering and allows for more consistent inventory turns, saving money now and down the road.

BECOME MORE EFFICIENT

Many technologies make your employees’ jobs easier and allow them to spend more time with customers. Communication technologies cut down on the time employees spend listening to unnecessary noise on the radio and give them more opportunities to focus on customers. 2

ENGAGE WITH NEW AUDIENCES

Embracing digital marketing and online technologies connects you with new audiences and provides another avenue for engagement. Offering an e-commerce site or other ways to buy online can also boost your revenue and sales with new ways for customers to buy. 3