Build the people side of your business and improve communication, reduce conflict and increase overall productivity with NHPA’s Organizational Development and Consulting services.
YourNHPA.org/development
TeamBuilder
TeamBuilder is an assessment of the people side of your business. It analyzes your current organizational structure and staff members to help you maximize their potential.
Everything DiSC® is a personal development learning experience measuring an individual’s communication preferences and tendencies based on the DiSC model.
The Vision Process is a year-long journey toward strengthening your team, defining company values and building processes and best practices that fit your goals.
Consulting & Mentoring
Retailers looking for custom solutions can take advantage of our hourly consulting options, ranging from owner support, manager mentoring, operational support and more.
About Kim
“Kim is rooted in the industry with almost 30 years of experience in hardware … Bringing Kim into our store has been one of the best business decisions we could have made.”
Lee LeFleur, Mike’s Hardware & Supply, Louisiana
Director
of
Organizational Development & Consulting, NHPA
Kim Peffley began her career over 25 years ago, working at her family-owned True Value, and then served as General Manager for a seven-store Ace chain. As a certified Everything DiSC® Facilitator and Consultant, Peffley uses her industry-specific retail management and leadership experience to offer professional training and support to retailers.
Contact Kim kpeffley@YourNHPA.org 219-776-0094
Get started with a free one-hour consultation to get immediate feedback and advice for your business. Visit YourNHPA.org/development to schedule an appointment with NHPA’s Kim Peffley.
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.
• 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
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
Jordan Rice 217-808-1641 | jrice@YourNHPA.org
Regional Sales Director
CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES
CIRCULATION DIRECTOR
Richard Jarrett, 314-432-7511, Fax: 314-432-7665
COMING IN OCTOBER
When even just one employee becomes disengaged, it can cause a business to sink. Next month, Paint & Decorating Retailer shares insights from three retailers on how they continue to creatively engage employees to keep their operations afloat.
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 & Publisher
David Gowan
Chief Financial Officer & Executive Vice President, Business Services
Scott Wright
Executive Director, Advanced Retail Education Programs
Whitney Mancuso
Executive Director, 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
With a record number of honorees, this year’s Young Retailer of the Year class proves the future is bright. Learn more about each of the honorees, their outlook on the industry and what excites them most about the independent channel.
26
The Data You Need
28
NHPA’s 2023 Cost of Doing Business Study is your source for insights from the industry’s benchmark resource. Compare your operation to industry averages and use this tool to guide you to growth.
Quantity and Quality
Making sure the store is fully stocked with high-quality sanding and abrasive tools has kept Urbanik’s Paint ahead of the competition in the category.
Scan this QR code or visit PDRmag.com/september to see these stories and more resources for your operation.
With a record 11 retailers, this year’s class of Young Retailer of the Year honorees exemplify what it means to positively impact the independent channel, even at a young age. Turn to Page 18 to meet this year’s class and learn more about the awards program.
See highlights from the Young Retailer of the Year reception held during the 2023 NHPA Independents Conference on Aug. 2 in Dallas.
Learn more about this year’s Young Retailer of the Year honorees, including their career accomplishments, community involvement and extracurricular activities.
Join NHPA, retailers, vendors and program sponsors on Sept. 27 to celebrate this year’s Young Retailer of the Year honorees during a virtual awards ceremony.
Build Your Future
Prepare your business for what’s next by creating a positive company culture, molding effective leaders and improving your finances.
CATEGORY
Discover the must-have prep products to stock for contractors and DIYers to get their projects done right.
If you weren’t able to join us for the 2023 NHPA Independents Conference last month, hear from NHPA COO and publisher Dan Tratensek on the state of the industry and ways the independent channel can come together.
Scan the QR code or visit the website below to listen.
YourNHPA.org/podcast
About a year ago, the team here at the North American Hardware and Paint Association (NHPA) reviewed our strategic focus for the near future. Our goal was to take the post-pandemic temperature of the channel (no pun intended) and figure out the most important challenges independent retailers were facing.
After much discussion, input and debate, we settled on three areas: technology, business transition and employee engagement.
While there were certainly other topics that demanded attention, these three seemed to be the most pressing issues facing our segment of the channel.
Over the past year, we have been talking to you a lot about technology. In fact, technology was the central theme for the first-ever NHPA Independents Conference we hosted last month in Dallas.
Judging by feedback from attendees, the subject matter was well received. The conference content made it clear that technology, with thoughtful implementation and management, can effectively impact a small business in multiple ways.
While “retail technology” initially means e-commerce for most people, that thought process does a disservice to how technology makes an impact at the store level.
From inventory management and marketing to merchandising and customer loyalty, retailers of all shapes and sizes are seizing tech-based solutions to improve operational efficiencies.
Another place where tech is having an impact bleeds over into one of NHPA’s other focus areas—employee engagement.
Whether it is using electronic shelf labels or inventory scanning robots to free up employees’ time or implementing AI to answer basic customer inquiries, retailers are leaning toward tech to make their teams more productive.
After all, technological solutions provide retailers with a new set of tools for their toolboxes. That being said, it is important to remember that real, live beating hearts are thumping away in each of your employees’ chests (hopefully).
It’s important to remember that, unlike machines, humans require more than just chips and processors to deliver high-level performance. Unlike a robot, your employees want to know the work they do is appreciated, there is a cause to believe in and expectations are clear.
Failure to cultivate a positive culture within a company can kill employee productivity as quickly as low pay or lack of resources, yet so few organizations take the time to address culture.
So, where do you start?
Well, the first step is to commit to understanding what culture is. What does the culture within your company currently look like? What do you want it to look like? How do you get there?
Like many things, this is a tough process to tackle on your own, but NHPA can help you navigate this path. You can start by exploring the NHPA Academy Catalog at YourNHPA.org/catalog, but also by sitting down with your leadership team to discuss the questions listed above.
Dan M. Tratensek Chief Operating Officer & Publisher
“Failure to cultivate a positive culture within a company can kill employee productivity.”
Dan Tratensek dant@YourNHPA.org
Send your merchandising tips, event recaps, employee morale boosters and other stories to editorial@YourNHPA.org
If you are a parent, you know bringing your children along while running errands can become a little stressful for you and your children. At the Cortland, New York, location of Meldrim’s Paint, children in tow with their parents running paint errands can have their own fun while their parents shop. The store has set up a coloring table with coloring books and crayons for children to enjoy.
Director of operations Kaitlyn Head says picking out a paint color and getting all the necessary products for a project can be time consuming. Parents appreciate having the activities available to keep their children entertained while they shop the store.
“Having the activities available for the kids takes a little bit of pressure off the parents, giving them the extra time they need,” Head says.
Scan the QR code to learn more about the TeamBuilder program and to schedule an appointment.
EVENTS
BUSINESS SERVICES
To learn more about the NHPA Health Insurance Program, visit YourNHPA.org/business-services.
AS THE EMPLOYEE shortage continues across the country, find ways to help your business stand out. The North American Hardware and Paint Association’s NHPA Health Insurance Program provides health insurance benefits that can give your business a competitive edge when it comes to recruiting new employees.
The NHPA Health Insurance Program, now in its 10th year, is managed by Custom Benefits Insurance Group, which allows independent operators to access benefits at lower rates because of the volume of retailers who participate in the program nationwide.
Retailers who take advantage of the NHPA Health Insurance group rate don’t have to sacrifice the flexibility of designing a plan best suited for their business and employees. Custom Benefits Insurance Group is certified
in all states and with all insurance companies to offer retailers the best options for their business.
“Health insurance rates are at the highest they have ever been, and independent retailers can find it difficult to compete with big-box retailers who offer insurance coverage,” says Bob Chiesa, president and CEO of Custom Benefits Insurance Group. “We partnered with NHPA to offer affordable health insurance options and have added plans for retailers to offer employees, including vision, dental, life, short-term and long-term disability and pet insurance.”
Call the Custom Benefits Insurance Group team at 888-201-7408 or visit YourNHPA.org/business-services to get started on your custom plan today.
Visit YourNHPA.org/training for Train the Trainer, Trainer’s Toolbox and other free tools and guides for home improvement retailers.
Employee training will help retailers fight retail theft.
RETAIL SHRINKAGE is a growing problem for retailers. According to NHPA’s 2022 Cost of Doing Business Study, retailers report an average of 1.6% of sales lost to shrinkage. For the average retailer, that’s nearly $47,000 walking out the door that could be reinvested in their business. Fortunately, some of that loss is preventable.
While investing in technologies such as surveillance cameras will aid your fight against crime, the best strategy is preventing theft by training employees in good customer service techniques and in learning how to discourage thieves before they strike.
To keep retailers current on what is happening in retail loss prevention, NHPA recently updated three of its online courses— Internal Theft Prevention, External Theft Prevention and Store Safety. Each addresses a different area of retail shrinkage. The course and updates were developed with the assistance of Jim Close, managing partner at Risk Management Services Loss Prevention, and Jason Buchanan, loss control specialist at American Hardware & Lumber Insurance.
All courses are available with an NHPA Premier Membership. If you’re not a member, go to YourNHPA.org/membership to learn more.
These courses should be on your training curriculum for both new and longtime employees.
According to the National Retail Federation, nearly one-third of retail shrink comes from employee theft. Employees can steal money from the cash register or product from the salesfloor. The course will help you understand why employees steal, common methods they use and the most effective prevention techniques, such as good hiring practices and exception reporting.
Incidents of shoplifting are increasing and organized retail crime is a growing threat. As retailers increase their arsenal of tools to detect and prevent theft, employees who understand shoplifting tactics will remain the best defense. This course covers common methods thieves use, the best ways to prevent shoplifters and how to confront them when you’re sure a crime has taken place.
Creating a safer workplace protects employees and customers while reducing your cost due to insurance and workers’ compensation claims. Since safety is everyone’s responsibility, it’s important to know how to reduce the likelihood of accidents happening in your business and know what to do when an accident happens. This course covers basic store safety and why it’s important to develop a store safety program.
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.
SILIGUN | siliguns.com or 917-791 3933
At only 4 inches, the SILIGUN caulking gun allows users to reach tight spaces and weird angles traditional caulking guns struggle with. SILIGUN’s patented push system allows users to cut the excess tube from behind to make it even smaller, and its unique dripless mechanism ensures clean and smooth work.
SHUR-LINE | shurline.com
Shur-Line Paint Can Lids stretch to fit most plastic and metal gallon-size paint cans, providing mess-free pouring. They are designed for all water-based paints and stains and provide an airtight seal that keeps paint fresh between projects.
DR. BRONNER’S | drbronner.com
Dr. Bronner’s has launched a new flavor of its 70% dark Magic All-One Chocolate. The Cool Peppermint Cream delivers a lightly sweet mint taste alongside decadent cocoa flavor and features a unique blend of cocoa from Ghana and Ivory Coast, Regenerative Organic Certified™ (ROC™) coconut sugar from Indonesia, (ROC™) cocoa butter from Congo and bourbon vanilla from Madagascar.
RUSTOLEUM | rustoleum.com or 877-385-8155
Varathane® Super Glaze Epoxy Resin delivers a high-gloss finish as thick as 75 coats of varnish. It is waterproof and heat- and chemical-resistant. Varathane ® Super Glaze comes in clear and pre-tinted colors and is suitable for a variety of projects such as tabletops, furniture, bars, photos, frames, craft projects and more.
PRIME WIRE & CABLE | primewirecable.com
Prime Wire & Cable’s Heavy-Duty Slim 3-Outlet Locking Cord is a patent-pending slim triple-tap (SL3™) cord. It features a lighted PRIMELOK® locking plug connector with a Primelight ® Indicator Light to show when power is on. The cord is a contractor-quality cord and is water-resistant and flame-retardant. It is ideal for harsh working environments and stays flexible in temperatures from -40 F to over 140 F.
MAYHEW STEEL PRODUCTS | mayhew.com
Ideal for any prying or lifting, the Dominator Economy Pry Bar Sets are tough, dependable and reliable. These pry bars are heat treated along the entire length of the steel and offer an ergonomically-designed, single-shot handle.
DUAL TEMPERATURE HOT GLUE GUN
BLACK+DECKER | blackanddecker.com
The BLACK+DECKER Dual Temperature Hot Glue Gun is ideal for crafts and repairs. It can be used on the low-temperature setting for more delicate materials like ribbon, silk florals, Styrofoam, burlap and lace, and the high-temperature setting for applications where a strong bond is required, like with wood, plastic and thicker fabrics. Impeccable
This cutting-edge paint formula offers your customers a winning trifecta of quality, convenience, and durability. Perfect for enhancing trim, doors, cabinets, and walls, THOR Waterborne Alkyd is expertly engineered for smooth application, with unmatched flow and leveling properties that make it a joy to use.
To stay informed about new innovations and trends, subscribe to the monthly Hot Products newsletter at PDRmag.com/subscribe
KREG TOOL | kregtool.com or 800-447-8638
The Kreg ® 90° Corner Clamp holds 90 degree corners and “T” joints together securely. It is best used when assembling boxes, drawers, cabinets and cases, keeping hands free to add fasteners. The 90° Corner Clamp’s Kreg Automaxx ® auto-adjusting technology makes it fast and easy to use.
Celebrate the Honorees
Join us to honor the rising retail stars who are making their mark on the industry at the virtual ceremony for the 27th annual Young Retailer of the Year Awards! Register at YourNHPA.org/yroty
Now in its 27th year, the North American Hardware and Paint Association (NHPA) Young Retailer of the Year program recognizes high-achieving retailers 35 years of age and younger who represent the next generation of the independent home improvement channel.
Honorees are chosen based on criteria such as career accomplishments, community involvement, ongoing education within the industry and extracurricular activities.
The honorees are selected from three categories: Under $3 million in annual sales, over $3 million in annual sales and operations with multiple locations.
This year’s class, which features a record 11 honorees, shares why community is key to a successful operation, the opportunities and challenges facing the independent channel and what excites them most about the industry. Learn more about each honoree at YourNHPA.org/yroty.
“For me, it’s streamlining processes and having that technology base where people can reach out. It’s being a support center so employees don’t feel like they’re out on their own. I set up remote access at every store, so if anybody has a problem, we can fix those problems on the spot. It works as a learning tool as well. Through remote access, I can show them what they need to do and how the processes work, and they have the information they need at their fingertips.”
RYAN CLOUSE, Clouse Family Ace Hardwares
OWNER
Clouse Family Ace Hardwares
LOCATION
Michigan
CATEGORY
Multiple Locations
CONNECT
Rogersfamilyfoods
OWNER
Parkersburg Hardware and Garden Center and Allison
Hardware and Floral Center
LOCATION
Iowa
CATEGORY
Multiple Locations
CONNECT
ParkersburgHardware
“I focus on getting buy-in from employees on the many changes we go through because we need employees to get behind any changes to be successful. I achieve this through employee-first leadership—working with employees and getting to know them to figure out ways we can be flexible and offer a better work-life balance. Employees who are happy tend to work harder and show up consistently, which is important to developing a culture.”
AUSTIN DIEHL, Randy’s Hardware
“One of the biggest benefits along the way was going to local hardware stores in my area and tapping into the staff’s knowledge. Talking to them and gathering ideas was beneficial because when I came into this industry, I knew nothing about hardware. When I started, I also had an employee who had more years of hardware experience than I had been alive who was able to provide invaluable knowledge.”
JOHN LUHRING, Parkersburg Hardware and Garden Center and Allison Hardware and Floral Center
“For me, my parents have been huge supporters, but my success has also come down to me being willing to embrace opportunity and taking that leap of faith. You have to be willing to learn new things, jump in with both feet and take a chance.”
JESSICA TALERICO, Old Lyme Hardware“Thinking outside the box and trying new things has led to our success. Being independent gives us more flexibility regarding what we can do in our stores—that flexibility and personal touch allow us to better serve our customers and community. My parents and our employees have helped a lot with these goals and implementing all these changes we’ve done. Without them, I couldn’t do any of this.”
DALTON MENY, Meny’s True Value
ASSISTANT GENERAL MANAGER AND HEAD PURCHASER
Gleco Paint
LOCATION
Pennsylvania
CATEGORY
Multiple Locations
CONNECT
GlecoPaint
gleco_paint
HEAD OF OPERATIONS
Meny’s True Value
LOCATION
Indiana
CATEGORY
Multiple Locations
CONNECT
menystruevalue
“My family first and foremost has led to my success. If we didn’t support one another, none of us would be where we are. We also have the best customers and employees who help us continually grow and get better each year. I spend a lot of time taking part in ongoing education, so I’m also grateful for the opportunities for education through NHPA and other organizations.”
TRAVIS HELLVIG, Hartford Building Center
“The team at Gleco has always pushed me; I hold myself to a very high standard because of them. They’ve encouraged me to always be moving forward and not be complacent, which has led me to always look for efficiencies and bring value to the team. My dad’s been my mentor in this industry, showing me the ropes, answering all the questions I have and challenging me at times when I need it.”
MICHAEL GLEASON JR., Gleco Paint
“I’m grateful for my dad. He’s definitely worked hard to take our business from one store to four. It was not an easy road for him, but he really paved the road for me. He never forced the business on me but always made it available to me. My restaurant background has also been helpful in the paint industry, teaching me customer service and how to handle sometimes emotionally charged investments.”
KATIE PRUS, Abbotsford Paint and Decorating
REGIONAL VICE PRESIDENT
Nation’s Best
LOCATION
Oklahoma and Texas
CATEGORY
Multiple Locations
CONNECT
lambertbrokenbow
MANAGER AND PART OWNER
Abbotsford Paint and Decorating, Abbotsford Commercial Paints, Chilliwack Decorating Centre and Garrison Village Paint and Decorating
LOCATION
British Columbia, Canada
CATEGORY
Multiple Locations
CONNECT
abbotsfordpaint
abbypaintanddecorating
“So many homeowners took on so many projects during the pandemic that I think the biggest challenge right now is figuring out how to still bring customers through the door now that their projects are done. We need to get into a different groove and promote new projects they didn’t do during the pandemic and share new products to supplement this potential slow phase we might see.”
KATIE PRUS, Abbotsford Paint and Decorating
“Supply chain issues are still a challenge for us, so we work with the customer to find other product selections that are similar. We also started pulling from two warehouses; we have our main supplier, and we picked up a secondary one to backfill some of those shortages. And as long as you make customers aware that you’re doing everything you can to get a product, they are generally willing to wait for it. They appreciate you taking the effort to find it for them.”
JOHN LUHRING, Parkersburg Hardware and Garden Center and Allison Hardware and Floral Center“We’re returning to a more traditional purchasing volume and average pricing, so every retailer is fighting for market share and margin opportunities are getting stricter every day. The return to normalcy after the pandemic also means reducing payroll and inventory levels to more normal levels, which can be a challenge with the tighter margins.”
MATT LAMBERT, Nation’s Best
“I think competing against the big-box stores and online retailers is a challenge for the independent channel right now. But these challenges can also be opportunities for our industry to offer something those other retailers can’t—personalized service. People want to connect with others again, they want to walk into a store and know they are not just some number. As independents, we can provide that service.”
JESSICA TALERICO, Old Lyme Hardware
DIRECTOR OF OPERATIONS
Randy’s Hardware
LOCATION
Virginia
CATEGORY
Multiple Locations
CONNECT
randyshardware
OWNER
Fines Home Hardware
Building Centre
LOCATION
Ontario, Canada
CATEGORY
Multiple Locations
CONNECT
fineshomehardware
OPERATIONS MANAGER
Hartford Building Center
LOCATION
South Dakota
CATEGORY
Over $3 Million In Sales
CONNECT
HartfordBC shophbc
“One of the things that really interests me is this evolution of brick-and-mortar retail. In the retail industry it used to be you had brick-and-mortar stores and then you had online retailers, and now they’re both drifting towards each other. It is really important to not only operate in our communities in the physical space, but also the digital space. Just having a website is becoming the bare minimum; we have to ask what the next steps look like.”
AUSTIN DIEHL, Randy’s Hardware
“During the pandemic we were so focused on the sheer number of customers, we let our service slack. Now, we have the opportunity to focus on what we should be focusing on, which is service. The number of people walking through the door might be a little less, but that gives us a chance to get back to our roots and focus on what we want to be known f or—offering a high level of customer service. ”
SCOTT
FINES, Fines Home Hardware Building Centre
“Consumers are spending more time trying to make decisions, especially large purchase decisions, and as a small independent retailer we have the opportunity to provide that knowledge and service they’re maybe not going to get elsewhere. Being able to make a more personal connection and provide resources and information allows us to pick up some sales we maybe weren’t getting an opportunity at before.”
TRAVIS HELLVIG, Hartford Building Center
“Embracing technology will be key for our industry, especially e-commerce. Even here in my small town, being online is connecting us with customers hundreds of miles away who we never would have guessed would be a target market for us. It’s about changing my mindset and embracing what’s next while still offering the in-store personal service customers also want.”
ZANE WATKINS, Village Hardware
OWNER
Old Lyme Hardware
LOCATION
Connecticut
CATEGORY
Under $3 Million In Sales
CONNECT oldlymehardware
GENERAL MANAGER AND CO-OWNER
Village Hardware
LOCATION
New Mexico
CATEGORY
Under $3 Million In Sales
CONNECT villagehardwarehatchnm
“As business owners we have a responsibility to influence the type of community we want to live, work and raise our kids in through the ways we give back. Sometimes we’re able to give back financially, but sometimes it’s time you’re giving. We try to lead by example and let our local organizations know that we’re in it with them.”
SCOTT FINES, Fines Home Hardware Building Centre
“Our community is our family. The same way we take care of our immediate family, we also take care of our co-workers and watch out for each other. When people see you supporting your community, it becomes like a ripple in water—easily seen and easily felt. What started with just you helping out expands to others joining in, and that can really make its mark.”
RYAN CLOUSE, Clouse Family Ace Hardwares“I have no home improvement background or experience in owning a business, so going into this adventure, my community has been everything. We’re here for the community, and they’re what keeps us going. As long as they’re coming in, we’re able to stay in business. So it’s a priority for us to be there for the community and support them in whatever way we can.”
JESSICA TALERICO, Old Lyme Hardware
“The love that pours out from this community is hard to explain, but I feel so blessed to be a part of it. And so if I can do anything to help my community, I do it. And it’s more than just giving money—you’re taking care of people and are a part of something bigger than yourself. And there’s a human aspect to helping other people that you can’t put a price on it. It’s amazing.”
ZANE WATKINS, Village HardwareWhy is being involved in the local community important to you?
See how your business stacks up against your typical and high-profit peers. Purchase the 2023 Cost of Doing Business Study at YourNHPA.org/codb
The latest data you need to keep your operation on track is now available. For over 100 years, the North American Hardware and Paint Association (NHPA) has surveyed home improvement operators throughout the U.S. to develop the benchmark report known as the Cost of Doing Business Study. Retailers have continually relied on the data in this benchmark tool to measure their own performance against industry averages and to establish financial plans to improve profitability.
The study assesses the financial performance of home improvement retailers who graciously submit confidential financial reports from the prior fiscal year to NHPA. The study presents composite income statements and balance sheets plus averages for key financial performance ratios.
The data is segmented for hardware stores, home centers, LBM outlets and paint and decorating outlets. In each segment, data is presented for the typical store, for high-profit stores, for single-unit and multiple-unit companies and for sales volume categories. In addition, there is a five-year historical trend for typical stores in each segment except paint.
The analysis in the report is the result of extensive review by NHPA. All individual company responses are completely confidential. Most of the figures are medians.
To determine high-profit stores, all participating companies are ranked based on net profit before taxes. The high-profit companies in each segment are those that make up the top 25%. The figures reported for each of the high-profit segments represent the median for that group.
It is extremely important to note that each year, the study contains figures from a different sample group of stores. That means overall figures have the potential to vary widely from year to year based on the respondent group of stores participating each year. NHPA uses year-to-year comparisons to illustrate general trends over time, not to draw specific year-over-year conclusions.
In this year’s study, 1,129 independent home improvement stores are represented in the data, a record number of participants for the study, and a 7.5% increase from last year.
See highlights here from the 2023 Doing Business Study across all segments and purchase your copy at YourNHPA.org/codb.
The Cost of Doing Business Study presents financial and operational data for you to evaluate your business and plan strategic changes. Here are ways you can use this report.
• Determine your expenses as a percent of sales and calculate your balance sheet as a percent of total assets. Compare your numbers to the study results for both typical and high-profit stores.
• Don’t look at percentages alone. Compare your real-dollar expenditures as well.
• Compare your results with key profitability and productivity measurements summarized.
• Compare your numbers to stores of a similar size. Don’t limit your comparison to one type of store. Defining hardware stores, home centers, LBM outlets and paint and decorating outlets is practical for statistical purposes, but your store may have attributes of more than one type.
• If your numbers differ significantly, determine the cause. Then develop a plan to bring your numbers more in line with high-profit stores.
7.5%
BY JESS TILLMAN
Starting small with a 4-foot rack of sanding and abrasive products, Chris Read, owner of Urbanik’s Paint in Utica, New York, created a highly successful category thanks to a willingness to listen to the market and his customers’ needs.
Urbanik’s Paint now has two 24-foot aisles of sanding and abrasive products that serve an audience of both contractors and DIYers.
Many of the store’s contractor customers desire and ask for specific sanding and abrasive tools and require those products in large quantities.
To accommodate those needs, Read ensures he has a variety of each SKU on the salesfloor. He also keeps additional quantities in the store’s warehouse to guarantee he can cover several large orders of any particular SKU on a given day.
“We’ve become the go-to store for contractors and woodworkers because of our expansive variety of products and large quantities of each we offer,” Read says. “Customers appreciate being able to look at and touch products on the salesfloor, and we always try to keep plenty of back-stock on hand to fill large orders.”
Help customers understand the differences between the various types of sandpaper by downloading the sandpaper shelf talker at YourNHPA.org/sandpaper-shelftalker
When it comes to sanding and abrasive products, Read also listens to his DIY customers, providing not just the products they need, but the know-how to get the job done correctly.
The store has several sanding machines available for rent. Additionally, Read has set up a small demo area in the store where customers can test out products.
“We have customers who come in skeptical about electric handheld sanders,” Read says. “But once they try the sanders, they are convinced and want to take them home.”
Read says there has been an interesting shift among DIYers over the past few years when it comes to attitudes toward sanding products. Customers who often required encouragement from the staff to purchase sanding products and take those additional steps now are readily purchasing sanding materials thanks to the influence of social media.
“It’s an unexpected, but welcome, outcome to see our sanding and abrasive tool sales increase because of social media,” Read says. “Several customers have said they are doing a specific project based on a video they saw on a social media platform and purchase all materials they need from us.”
Read attributes this shift to influencers sharing the step-by-step process of their projects, along with the high-quality final results.
“Because DIYers are watching the entire process from start to finish, they are learning about the importance of sanding to achieve excellent results on each project,” Read says.
Chris Read began working at Meldrim’s Paint when he was 13 years old and has been a part of the operation ever since. Read purchased the business in 2006 and in 2007, he moved it to its current location in Cortland, New York. Following Meldrim’s move, Read purchased Urbanik’s Paint in Utica, New York, in 2013. Then, in 2022, Read expanded Meldrim’s Paint to a second location in Ithaca, New York.
“Customers appreciate being able to look at and touch products on the salesfloor, and we always try to keep plenty of back-stock on hand to fill large orders.”
Chris Read, Urbanik’s Paint
TRENDS
See how sustainability is impacting kitchen design this year at PDRmag.com/houzz-kitchen-2023
CONSULTING WITH TOP INTERIOR design experts, Fixr.com, a remodeling research organization, shared the latest kitchen trends in its Kitchen Trends Report 2023. Here are some insights from the 62 design experts featured in the survey.
74% say mixing materials is the top kitchen trend in 2023.
65% say homeowners are willing to spend more on a kitchen remodel in 2023 with functionality as the top reason for a remodel.
47% say white and gray color scheme kitchens are on their way out in 2023.
Source: Kitchen Trends Report 2023, Fixr.com.
A majority of the design experts surveyed, over 70%, say countertops are the highest priority for homeowners to update this year. Here are the other upgrades topping the list.
Cabinets 47%
Appliances 36%
Lighting 29%
Backsplash 23%
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 S F O R S AL E
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
B U S I N E S S F O R S AL E
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:
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• Single-store and multi-store
hardware operations
• Located in the Pacific Northwest
• Store size of 5,000 ft2-30,000 ft2
Build the people side of your business and improve communication, reduce conflict and increase overall productivity with NHPA’s Organizational Development and Consulting services.
YourNHPA.org/development
TeamBuilder is an assessment of the people side of your business. It analyzes your current organizational structure and staff members to help you maximize their potential.
Everything DiSC® is a personal development learning experience measuring an individual’s communication preferences and tendencies based on the DiSC model.
The Vision Process is a year-long journey toward strengthening your team, defining company values and building processes and best practices that fit your goals.
Retailers looking for custom solutions can take advantage of our hourly consulting options, ranging from owner support, manager mentoring, operational support and more.
“Whatever concerns you have about seeing ROI with these programs, set them aside. The way our business has grown, expanded, come together and pushed forward has been worth what we put into the program. Kim makes it all worth it.”
About Kim Peffley Director of Organizational Development & Consulting,
NHPA
Kim Peffley began her career over 25 years ago, working at her family-owned True Value, and then served as General Manager for a seven-store Ace chain. As a certified Everything DiSC® Facilitator and Consultant, Peffley uses her industry-specific retail management and leadership experience to offer professional training and support to retailers.
Contact Kim
kpeffley@YourNHPA.org 219-776-0094
Get started with a free one-hour consultation to get immediate feedback and advice for your business. Visit YourNHPA.org/development to schedule an appointment with NHPA’s Kim Peffley.
Sean Ploskina, Bill’s True Value, Virginia
Learn more about the Top Guns awards program and the retailers making a big impact in the industry at YourNHPA.org/top-guns
NOW IN ITS 17 th YEAR, the Top Guns awards program, presented by the North American Hardware and Paint Association (NHPA) recognizes innovative and passionate retailers who are leading their operations and the independent home improvement industry with strategic investments focused on preserving independence and growing the channel. This year’s honorees were chosen for their commitment to innovation and growing technology in their operations.
“We spend a lot of time in R&D, which for us is research and duplicate. We attend industry events, roundtables and look to our industry peers for inspiration and ideas for technology that makes sense in our operation.”
—Scott Sommers, President Hartville Hardware & Lumber“When it comes to technology, I look at the ways we can improve the customer experience. We are a customer-first organization, and so as we evaluate technology solutions, I’m always looking at what I can delete or what new offerings can eliminate repetitive tasks.”
—Eric Hassett, President & Owner Hassett Hardware“When you start looking at the needs of each of the teams in your operation—HR, accounting, merchandising, marketing and others—there’s a lot of technology that supports the goals of those departments, and we want to be sure we put in place what makes sense for each.”
—TJ Colson, President Wilco Stores
