Issuu

Experience

Epicor Retail Excellence

Epicor has created comprehensive retail software and POS solutions to help you solve key business challenges and achieve pro table & time-saving results with the help of technology.

More than 5,000 leading retailers use award-winning Epicor retail software to become more pro table and competitive.

Learn how these retailers are using proven retail practices and powerful tools to optimize inventory levels, keep prices competitive, maintain healthy margins and more.

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

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

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

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

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com

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

Beacon Awards Director: Tom Delph tdelph@thehardwareconnection.com

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

Contributing Writers: John Franklin, John Fix III, Doug Donaldson

By Chris Jensen

Retail Winners Aren’t Afraid to Take Risks

If you missed this year’s Hardware Conference in Marco Island you missed the chance to hear the stories of our Beacon Award winners. The Beacon Awards recognize the industry’s best retailers, and we had some outstanding honorees.

The five Beacon Award winners all shared one thing in common: a willingness to take risks. Although they were all operating successful businesses, these savvy entrepreneurs saw storm clouds on the horizon if they didn’t take aggressive action.

Stuck in a bad location, Ronnie Boland moved to a new store a mile away that was double the size. Pat Sullivan felt the big boxes encroaching on his market, so he remodeled and expanded his flagship store to create dominant assortments in key categories. Howard and Wayne Miller felt handcuffed by the five expansions over the years that had carved up their 100,000-square-foot store, so they built a 305,000-square-foot store from the ground up that is the finest independent store we have ever seen.

Brothers Scott and Todd Andrews felt their pool supply business could be even more dynamic if they matched it up with a hardware store, so they opened one. Bill Marrs was enjoying the good life in Hawaii with a 40-yearold store that was generating $450/ square foot, but he decided to open a second store because he saw a market opportunity and didn’t want someone else to beat him to it.

Four of our Beacon Award winners decided to make sizable investments in their operations because they wanted to ensure their businesses stayed strong and viable for the next generation of the family to take over. They understood they would not be doing their family members any good to pass on a business that was dying on the vine.

Not all retailers are comfortable taking risks with their businesses, but in an increasingly competitive retail arena it’s almost a necessity if you want to be a retail survivor. Don’t miss the profiles of this year’s Beacon Award winners in this issue. Hopefully you will find the inspiration you need to take your business to another level. n

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By Tom Chasteen

How Will You Make the Transition?

As each of us knows, owning a retail hardware business is much more about a lifestyle than just owning a business. It is one of the last industries (like farming) that truly can be a family business. And like most things in life, there is an upside and a downside to working, living with and owning a family business.

I am 57 years old and both my mother and father who I worked with for 25 years have passed on. I think of them every day and when faced with a situation I’m not quite sure how to handle I ask myself “what would they do in this situation?” I don’t always do what I think they would do, but I always ask the question. When I was younger and they were still active in the family business I didn’t give much thought to how or what I would do when they were gone. I guess I just assumed they would always be there. I knew I could count on them to look after my best interests. What I didn’t do that I will always regret is to express to both of my parents how much I truly appreciated the opportunity they gave me. And let’s make no mistake about it, if my name was Smith and not Chasteen I would not have been given the same opportunities.

However, what some children don’t realize even though they are “given” the opportunity—they still have to work to be successful.

At this year’s Hardware Conference we had the largest turnout of hardware store families ever. Some store owners brought three generations of family members. It was a special feeling to see so many young people who are actively coming into the retail hardware business.

Like a lot of hardware store owners I’m the last generation in my family who will own and run our family hardware store, Tavernier Hardware. All of our children have chosen different career paths and are well on their way to developing successful careers doing something other than hardware. We are now in the process of trying to figure out what to do with the family hardware business in the next five to 10 years. I would like to see the store remain in business with a new family at the helm.

My concern is how we can structure the sale of the business in such a way that will ensure an orderly transfer of ownership, giving the new owners the same benefits my parents gave me. At a recent show I spoke with two store owners who were in the same situation. They

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had profitable stores and none of their children had any desire to take over the business, so they also are faced with what to do with their stores.

What all three of us agreed on is that we would like to see the business continue and were willing help a sincere and qualified prospect purchase the business by either entering into a stock option plan, holding the mortgage on the business or funding the purchase through some kind of employment bonus program.

Ace, Do it Best, Orgill and True Value have solid programs for qualified new buyers or next generation family members to purchase existing stores or to help build new ones. The wholesale community also recognizes the need to make sure there is an orderly and smooth transition to the next generation of hardware store owners.

We all need to help this transition to the next generation. We need to start thinking about how we can pass on our stores to the next generation in a mutually beneficial and successful way. I’ve never talked to an active hardware store owner who has felt the hardware industry has not been good to their family. We need to start thinking about how we can help ensure the industry continues to be a viable business model for future generations and their families.

Someone once told me “if you don’t have a plan, you will be a part of someone else’s plan, and you may not like

what they have planned.” If you don’t have time to think about it now, how will you find time to think about it later?

If you are being mentored to take over a family business, take a moment and tell the current owners (who may or may not be your parents) how much you appreciate the opportunity. Thank them for “having your back.” There will come a day when you won’t be able to thank them for the opportunity you were given. I think everyone would agree that the greatest satisfaction would be to see the business continue to be successful.

There will also come a day when it will be up to you to help make a smooth and orderly transition of your hardware business. How will you do it? How can you improve on the process you went through to take over the helm? How will you handle the finances associated with the transfer in a manner that is fair and equitable to everyone?

Don’t wait until that time arrives to research the options and tax implications associated with transferring ownership. Talk with your primary wholesaler and see what programs they offer that may help make the transition smoother. We owe it to the next generation to give them every opportunity to experience the same success we have over the years. We can only pass on the opportunity; they still have to earn it.

Share your thoughts retailer to retailer at tom@thehardwareconnection.com. n

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HARDWARE STORIES Amazing but TRUE

Lady walked up to the sales counter and asked, “How much do you charge to neuter my cat?” Maybe a niche opportunity here.

Allen

Biedrzycki

Huffman True Value Huffman,

Texas

Ihave cautioned customers not to put the deer whistles on backwards because the deer will chase you and have told people to be careful about putting batteries in the ﬂashlight backwards because it will suck the light right out of the room. Often they reply ‘Yeah, I know!’

Maurice White White Hardware McCormick, S.C.

We had a customer proudly tell us about a bat in the house. He grabs a tennis racket and was swinging away trying to knock it down, as his wife was yelling out directions at him protecting herself with a pillow. Oh, did I mention he was buck naked and about 100 pounds overweight? What a sight that must have been.

Iowa

Jeff Miller Home Hardware Davenport,

Iwas serving a customer in our plumbing department and explained to her that one of the parts for a toilet she had just purchased had a left-hand thread. “That’s okay,” she cheerfully replied. “I’ll send my son to pick it up—he’s left-handed.”

Malcolm Wright The Home Depot Nanaimo,

British Columbia

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How’s

Business?

The following retailer comments all originated from the open dialogue sessions during The Hardware Conference in Marco Island, Fla.

WEST

Private label vs. national brands:

We’re shifting more toward national brands. Sometimes it comes down to the space you have in the store— you don’t always have room to carry two brands.

Pricing Strategy: My customers expect us to be a little higher and I don’t want to disappoint them. If I’m within 10 percent of the big boxes my customers are OK with that.

What can vendors do better at shows? It’s a huge timesaver if the manufacturer says the product is a certain percentage off and shows how that compares to our out of warehouse cost—that would help

the warehouse SKU

me decide. Also, it would be nice to have the warehouse SKU number next to the item in the booth. If it’s not in the warehouse note that it’s pending. How much of show budget is spoken for beforehand? I’m more seats of the pants—probably 20 percent is spoken for before the show.

DeRoest Joe’s Hardware Fallbrook, Calif.

Joe

Joe DeRoest with wife Kim.

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

How’s Business?

What’s been successful for you? We did an in-store canning demonstration and sales of canning products were up 3,000 percent. How do you pay outside salesmen? We pay a minimum wage salary with a bonus based on gross proﬁ t sales—it’s like a draw. What is your main focus at shows? A lot of my time

ently

Bryan Ableidinger

a destination for fasteners. We have 10,000 SKUs in our fasteners department and people will travel 50 miles for our fasteners. Selling a lot more stainless. Fasteners are never promoted by the boxes and we can always beat them on service while earning high margins. We’re also really growing our commercial/industrial sales and servicing a lot more commercial accounts.

Bryan Ableidinger Parkrose Ace Hardware Portland, Ore., and Vancouver, Wash.

Pricing strategy: We have to be competitive with our market leaders, which means Home Depot and Lowe’s. We price shop them every day. We’ll win the service battle.

How do you pay outside salesmen? We offer a salary plus a bonus.

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How’s Business?

How do you set priorities for a show? We do it by order basis and it depends whether it’s a spring or fall show if we have to do buying for the holidays. About 80% of my budget is spoken for before the show. I’d like to see show specials a month in advance.

Walter Toole

Toole’s Ace Hardware Winter Garden, Fla.

Private label vs. national brands: We’re going with more national brands.

What’s trending up or down?

Our holiday gift area is going down because the big boxes are pushing that more. We go to the Atlanta gift show in January for three days and buy upper-scale stuff. You have to know what merchandise will sell in your market.

How do you set priorities for a show? I develop a sell sheet with

my top 100 items by department and sort by vendor. I can tell what my best movers are and what I need to buy. If I know about show specials too early I don’t know what my inventory on hand is.

Where will your business be in ﬁve years? We’ll be diversiﬁed into outside and B2B sales.

Dan Hitchcock

Ace Home Centers Miami, Fla.

How do you set priorities for a show? I’m mainly interested in ﬁnding new products. I do homework before and 80-85% of my show budget is already

Walter Toole

Dan Hitchcock

Alan Baro

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How’s Business?

spoken for before the show. If you don’t do your homework you tie up the vendor’s time in the booth. What are you doing differently? The new part of our business is hydraulics. The margins are embarrassingly high—over 70%. We even make our own air hose.

Alan Baro

Baro Ace Hardware

Miami, Fla.

MIDWEST

Private label vs. national brands: We’re moving more toward national brands, but the national brand has to have good brand recognition.

Matt Noonan III

Noonan’s True Value Hardware

Springﬁeld, Ill.

Where will your business be in ﬁve

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Matt Noonan III with wife Peggy

years? We need to get more diverse sales to compete with Amazon.

Dick Schroeder Schroeder’s Ace Hardware Lombard, Ill.

Dick Schroeder, with Sandy and Richard Schauer

NORTHEAST

Where will your business be in ﬁve years? We’ll probably be retired. We won’t still be in our current location.

Jim Ertzman South Hills True Value Pittsburgh, Pa.

Teree and Jim Ertzman

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From Tom’s Shop

HARDWARE PRODUCTS REVIEW

We are out of summer and winter is just around the corner.

As I have been traveling to the fall wholesaler shows two things consistently stand out. The ﬁrst is how optimistic retailers are about their individual trade markets. Everyone seems to be experiencing increased sales or has the feeling their sales are about to begin growing again.

The other thing that stands out is the number of new products that are coming out, and some of them are really good. For several years we have not seen many new products as vendors were waiting to see how bad the recession was going to be. For some companies it got pretty bad. Retailers, wholesalers and manufacturers were all affected by the downturn in the economy. When hardware store sales begin to slow down the trend affects every

By Tom Chasteen

aspect of the business chain.

As sales slowly begin to strengthen so does manufacturers’ conﬁdence to invest in new product development and eventually new product launches. I have always used the number of new products being launched as a barometer of how our industry is doing as a whole. It’s like going to the mall and counting how many people are carrying shopping bags during the Christmas holidays. It doesn’t take a Harvard economist to see how the economy is doing during the holiday season.

The one thing most new products in the hardware industry have in common this year is they take advantage of new technologies to develop a superior product. I cannot wait to see what will be coming out next spring.

PRODUCT #1:

CRESCENT® CONNECT CLAMP SYSTEM

APEX TOOL GROUP

Apex Tool has been on ﬁ re with new products this year. Leading the way was the Code Red™ product line of demolition products.

Their latest product is pretty cool, too. It’s called Connect and is a modular clamping system under the Crescent ® brand.

The Connect clamping system is a high-quality bar clamp and spreader clamp with some nice enhancements like larger than normal clamp pads so material doesn’t slip off the clamp as you tighten up on the clamps. It features bigger grips that allow you to apply 500 pounds of clamping force. The clamp pads also come off, exposing the pipe grip and allowing the user to clamp down and secure round objects.

PRODUCT #2:

PRO/DOO-Z® ROLLER THE WOOSTER BRUSH COMPANY

The Wooster Brush Company is simply amazing. After 162 years of being in business they still are one of the top leaders in innovation in the paint category. They have just released the Pro/Doo-Z® line of paint rollers that utilize HydroFlow™ technology to increase production and provide a

What makes the Connect clamp really special is the “Connector,” which enables the user to connect clamps together so you can use multiple clamps at different angles to secure multiple objects. No one has that! Every one of our testers said “Wow” when they started using the Connector with the Connect clamp. Make it a point to stop by the Apex booth at the next show and try it out. I think you will agree that it has a very high “wow” factor.

smoother, more consistent painting experience. HydroFlow is a Wooster-exclusive technology developed for improved paint roller performance.

These paint rollers are light years ahead of the ordinary paint rollers I was selling when I ﬁrst came into the business 39 years ago. The Pro/

Click Here to Watch a Short Video of the Wooster Pro/ Doo-Z paint roller cover

HARDWARE PRODUCTS REVIEW

Doo-Z® FTP™ line comes in four nap sizes— 3/8”, 3/4”, 3/16” and 1/2”— and is designed for use with all paints including oil, latex, urethanes and even epoxy paints.

They were developed with interlocking fibers to prevent “shedding” and the fabric also holds significantly more paint, allowing the user to load the roller less often and still maintain a smooth finish without picking out fibers in the wet paint.

It may not sound exciting but just think of the amount of time it typically takes to get a smooth ﬁnish without any ﬁbers in the paint surface. Now you can

offer your customers one paint roller that can do it all and feel conﬁdent they will like the results.

Best of all the painters who tested the Pro/Doo-Z roller for us said it saved a lot of time not having to load the roller with paint so much, particularly with the 3/8” nap roller. I love selling paint and paint supplies, but I don’t get excited about actually painting so anything that helps me ﬁnish sooner with great results is a win-win for me.

To learn more about Wooster’s Pro/ Doo-Z roller covers click here.

To see a video of the Wooster Pro/ Doo-Z paint roller cover click here.

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I was totally impressed—just spray it on and let it set while you get your scrub brush and you will be amazed with the results. There are some limitations. Don’t use it on varnished surfaces or aluminum and if you are going to use it on

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painted surfaces, plastics or fabric they suggest you only use one cup of concentrate in ﬁve gallons of water.

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Driving Sales in E-Commerce

Retailers Speak Out on the Pitfalls

Theretail arena

is changing rapidly for hardware retailers, as new online competitors spring up while Amazon continues to grow like a weed. For independent retailers to not only survive but thrive under the new rules of engagement, they must recognize the fact that having an online presence will increasingly be a necessity.

The nexT generaTion of shoppers will be starting most shopping trips on their smartphones, and in many cases that’s where their shopping will take place. having an e-commerce site that has been optimized for mobile will help your store stay in the game.

r ead on to gain insights and advice from four independent hardware retailers who are seeing success with online selling. i n their own words, they share the pitfalls and secrets to driving sales in e-commerce.

FEATURE

JOHN FIX III

CORNELL’S TRUE VALUE EASTCHESTER, N.Y.

WWW.CORNELLS.COM

We have been selling online since 1996, and currently use the Epicor iNet product, which integrates directly with our in-store Eagle system. We generate a small amount of business online, but that’s really not my primary focus. The key beneﬁt (in my opinion) to having an online storefront is letting customers ﬁnd you and your products to shop in-store. With that in mind, we are doing a mix of Google Adwords and Google Product Feed to make sure we show up in shopping results. We focus on appearing in the local results. When someone searches the Shopping results Google shows if there are nearby stores that have the product in stock. They can click on that link and see the store location on a map. Those clicks are free (unlike Adwords links), and we get about 10 to 20 clicks per day of people looking for our location on a map.

The Google Product Feed used to be free, but now it must be tied to an Adwords campaign. We keep our budget low, about $300 per month. I look at it as a replacement for Yellow Pages.

The screen captures below show how Cornell’s True Value shows up on Google Product Feed through local search results.

My feeling is that consumers don’t search for “hardware store” but instead they search for the product such as “switch plate,” “snow shovel,” “generator,” etc. By using our Eagle and iNet we feed 30,000 products to Google, updating the quantity on hand and price every single day so that we appear in the local feed (Google won’t list you there unless you provide accurate data on a daily basis).

feature

It’s difficult to gauge the effectiveness of our online presence. We do track visitors to the site via Google Analytics. There are various ways to measure success (called “conversion” by Google). An online order is one type of conversion, but we also consider a visit a success if a web visitor goes to either our store hours page or our store location/map page. About 6 percent of the visitors to our site click on our store hours or store location page.

I’d estimate we get about $500 per month in pure online sales (ship to customers outside our region). The shopping/pricing apps seem to use a variety of sources for their data. In addition to Google Merchant Feed data they also use data from shopping.com, which is a paid feed (we don’t use this one); and thefind.com, which is free (we upload to them daily).

Our products show up in both RedLaser, PriceGrabber, Pic2Shop and GoogleShopping, so we seem to get good coverage with doing the Google Merchant Feed and the feed for TheFind.com.

There are at least three distinct ways for products to show on Google search:

1. Organic search – This is when you do a basic Google search and the text is found on a website page. It could be a content page or a product page. These are not shopping results, just search results that show your page if it

contains the text in the search. These are free, and you don’t need to do anything to show up other than make sure any web pages on your site have good content and keywords.

2. Shopping search – This is 100 percent paid results (as of late last year). Results that show up in shopping come from data feeds and Adwords campaigns. So the business is not only sending data to Google every day but they are also paying every time a user clicks on their link. You must have an e-commerce site to show up in shipping results. Showing up in the results doesn’t cost anything, but when a user clicks through to your product page then you get charged a fee by Google (varies between as low as $0.50 per click up to whatever you may have as max bid). We find our average cost-perclick (CPC) is about $0.80.

3. Local shopping search – This is free, and may or may not require an online store. It requires a weekly feed of product data (description, UPC, image) and a daily feed of quantity on hand and price. I believe you need to be connected to a larger organization as most of the time results are for national chains. Ace appears to feed some data via this method, not sure about True Value. We are able to appear through the Epicor iNet site as Epicor is a Google-approved aggregator. I don’t think Google wants to deal with individual stores—I wasn’t

Experience

Epicor Retail Excellence

Epicor has created comprehensive retail software and POS solutions to help you solve key business challenges and achieve pro table & time-saving results with the help of technology.

More than 5,000 leading retailers use award-winning Epicor retail software to become more pro table and competitive.

Learn how these retailers are using proven retail practices and powerful tools to optimize inventory levels, keep prices competitive, maintain healthy margins and more.

FEATURE

able to get into the local results until I went through Epicor.

Ideally, the data feed process should be automated so once conﬁgured on your system and at Google it would run unattended. We don’t do anything special to send the feed; it happens at 5 a.m. daily. If we change a retail price, description, etc., on our POS system it is updated on Google with the next feed. We update Google descriptions weekly, price and quantity on hand daily.

Setting up the various Google pieces does take some time but once conﬁgured it doesn’t need much updating. It really makes sense to do the basics ﬁrst such as making sure your Google Places for the business is correct and has photos, store hours, etc.

VIRGIL COX COX HARDWARE & LUMBER HOUSTON, TEXAS

We have an e-commerce web site. It has its issues and shortfalls, but I am glad we have it.

Pros:

1. Great way to get your message out about your store, who you are, what you offer, what makes you different, etc.

2. Consumers expect it, but still seem surprised and pleased when they see you actually have a good site.

3. Commercial customers almost demand it, and it makes serving

Here is how Cox Hardware’s prices appear on the pricing app Red Laser.

that type of client much, much easier.

4. Great tool for internal use by our own staff. It’s much easier to sell over the phone/fax/e-mail if you can show the customer the product you’re discussing.

Cons:

1. It’s expensive and complex at times (at least, for me).

2. It’s time-consuming. We have two full-time staff allocated to our site and a manager.

FEATURE

3. Because of all the technology, it can easily break or be broken.

4. It requires constant attention, as it’s a complete store of its own.

Our developer suggested that we submit a data feed to “The Find” to get picked up by the mobile price comparison sites like Red Laser. It’s free and seems to work pretty well. I went out in the store and randomly selected a pencil sharpener from C.H. Hanson. We’re in the mix of stores that were returned, in the middle price-wise. Clicking the link on the screen of my phone takes the customer to our product web page where they check price, check stock, etc, or they can purchase the item. It’s not a mobile-phoneoptimized page, but that’s in the works and at least we’re putting something out there. The most important thing is we’re there to be considered, to make an impression and to stay relevant as a source.

EMIGH HARDWARE SACRAMENTO, CALIF.

The one thing that I learned was not to generate my own shipping rates. eBay has an option that uses the buyer’s zip code to generate shipping fees. This takes the guesswork out of shipping charges and on top of that you can add a “handling” fee. Whatever

item I’m listing determines the handling fee, which ranges anywhere from $2 on up.

Also, don’t forget to state within your listing what areas you are willing to ship to. I block anything not within the continental United States. This, of course, will not stop some of the more determined scammers, but with that stated in the listing it gives you the right to dispute the sale and receive credit for eBay’s fees. This will also tie up your merchandise until it settles, which generally takes a week or two.

Other than that it seems to have worked out well. I treat my eBay customers just like I treat anyone who walks through my doors. I’ve had a couple of items damaged during shipping or fail right out of the box, but with clear and expedient communications I’ve been able to keep them happy and receive excellent feedback marks.

MARK MCGREGOR

JESSICA BETTENCOURT KLEMS

SPENCER, MASS.

Online selling is a whole other store with almost as much work involved. We are making a few sales on the e-store and have now shipped to almost every state. It is a work in progress and it seems to be continually growing slowly. The largest beneﬁt is for our current customer base to see if we have something in stock. We have customers in every day that use our website for reference before they come into the store. Our website is maintained and updated weekly. Our e-store still needs work, mostly cleaning up images and extended descriptions. It is something we absolutely need to move up the priority list. We are not currently uploading to the feed, but will deﬁnitely look into it. ■

E-COMMERCE FACTS:

• Amazon’s sales topped $61 billion in 2012 and are expected to double by 2017.

• Online sales are projected to grow from 4% of total home improvement sales to 10% by 2015.

• Amazon can reach 70% of the U.S. with same-day shipping, although it has not widely rolled out this service yet.

• Internet sales increased 18.4% in the second quarter from a year earlier, while total retail sales rose by 4.7%, according to the U.S. Commerce Department.

• Amazon’s sales rose 30% in the second quarter and are now more than the next 12 online sellers combined, according to Internet Retailer.

• Online purchases accounted for 5.8% of total U.S. retail sales in the second quarter, up from 5.1% a year earlier, according to U.S. Commerce Department data.

The Hardware Conference Years!

25

Keeps on Rolling After

Conference directors Tom and

the

to be a labor of love for

Conference attendees got to enjoy breakfasts outside on the terrace.

Diane Allen of The Hardware Connection with her husband, Steve Allen; and Bill Parks of WilliamsonDickie with his wife Sandy.

Darrell Wabschall explains The Vendor Center to Bryan Ableidinger of Parkrose Hardware in Portland, Ore.

Dale Chasteen celebrated

25th anniversary of The Hardware Conference, which continues

them.

HARDWARE CONFERENCE

The hardware industry gathers in Marco Island, Florida, each September because there is no better way for retailers and manufacturers to get together and ﬁnd common ground on key issues. With The Hardware Conference celebrating its 25th anniversary this year, it was an extra special occasion.

This year’s landmark event took place September 6-8 at the Marco Island Marriott, with white sandy beaches and stunning sunsets to help attendees take their minds off the day-to-day challenges of running their businesses.

To organizers Tom and Dale Chasteen, putting on the Conference is a labor of love. It’s like putting on a party for 400 of

their closest friends, who just all happen to work in the hardware industry. The Hardware Conference is the only industry event held exclusively for independent retailers regardless of wholesaler afﬁliation.

“We are grateful for all the support we have received from industry manufacturers, wholesalers and retailers,

Conference director Tom Chasteen knows how to work the room to raise money for Miami Children’s Hospital.

Greg Galen of Fluidmaster (left) gives a product pitch to Rick Heuser of Handyman Hardware in St. Cloud, Fla.

Pat O’Reilly of Apex Tool Group, Elizabeth Harrigle and Terri Szelc of Tuckerton Lumber in Tuckerton, N.J.; and Doug Laird and Jimmy Ertzman of Apex Tool Group.

Scott and Tina Andrews of Lutz Ace Hardware.

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Middle: Richard Madden of Madden’s Ace Hardware in Daytona Beach, Fla., proposed to his ﬁancée, Heather Barbieri, during the Conference…and she said yes!

Left: Tom and Dale Chasteen were honored by Maria Moldes of the Miami Children’s Hospital Foundation in recognition of The Hardware Conference’s 25th anniversary and tradition of raising money in support of the hospital.

which has enabled Dale and I to keep the Conference going all these years,” said Tom. “We’ve made many wonderful, long-lasting friendships, because we’ve truly designed the Conference to be a place ‘where relationships are formed.’”

The highlight of this year’s Conference was the Friday evening banquet, where ﬁve of the industry’s best retailers were honored during the Beacon Awards program. “Just an awesome grouping of far-thinking and reaching entrepreneurs,” commented Rick Heuser of Handyman Do it Best Hardware in St. Cloud, Fla. For more on the Beacon Awards, see page 52.

EDUCATION PROGRAM

Another new feature was an all-day Technology Forum on Thursday, the day before the Conference ofﬁcially opened.

ECi Solutions and J-3 POS

a day-long

Epicor, ECi RockSolid and J-3 POS all held in-depth training sessions with their retail customers, helping them discover ways to operate more efﬁciently. “The Technology Forum was new for me. I learned a lot about my POS system,” commented Heuser.

An enhanced dealer program featured a free two-part, ﬁve-hour training session on Excel and Outlook, conducted by Fred Pryor and Associates. Excel is such a vital tool for many retailers, so it was a good program for stores that wanted to brush up on using Excel to export, modify and import data. Those who attended the Excel and Outlook training all agreed it was excellent and well worth their time.

During the dealer/owner seminar Kurt Didier of Economic Recovery Group outlined what retailers in the Gulf region need to do to ﬁle a claim for damages as part of the BP oil spill settlement. All claims must be ﬁled by April 2014. For more information or to see if your store is in one of the recovery zones, click here. Darrell Wabschall and Robert Michel detailed how The Vendor Center can serve as an online resource center connecting retailers and vendors, providing everything from product catalogs,

Epicor,

held

Technology Forum for retailers the day before the Conference ofﬁcially opened.

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vendor announcements, training materials, embeddable circulars, special offers and drop-ship order forms. For more information, go to www.VendorCenterOnline.com.

Industry ComIng together

Leading vendors such as Gilmour, The Hillman Group, Wooster Brush, 3M, WD-40, Krylon, Minwax, Fluidmaster, Jack Link’s, WilliamsonDickie, Sashco, Superior Pump, Kaba Ilco, Sunnyside Corporation, Hyde Tools, WM Barr and Apex Tool participate with tabletop booths displaying their latest product innovations. Since the Conference is not a buying show dealers can learn more about the suppliers and their products without enduring high-pressure sales tactics.

“The Conference is great because you have the opportunity to talk about your product line a little more with dealers. They’re not so rushed like they are at their wholesaler shows,” said Greg Galen of Fluidmaster.

Saturday afternoon was left free so attendees could enjoy all outdoor fun.

hardware ConferenCe

Left: Doug Teaford of Hillman Fastener and his wife Celeste.

Top: Alan Baro of Baro’s Ace Hardware in Miami making a donation to the Miami Children’s Hospital.

Bottom: Dealers get to know vendors on a more personal level when the exhibit areas are open.

Wooster Brush again sponsored “A Day at the Beach” with free beach activities for Conference attendees. Minwax sponsored the shelling boat and Krylon hosted its 25th golf outing.

Gilmour sponsored the “New Innovative item and Packaging Area,” which continues to expand in its fifth year. Dealers had the opportunity to see the latest in new products and packaging coming to the industry.

“I had no idea the Conference had so much to offer. We’ve had a great time and look forward to coming back,” said first-time attendee Pat Sullivan of Sullivan Do it Best Hardware & Garden, who broadcast his call-in DIY radio show from the Conference Saturday morning.

open dIalogue sessIons

The open dialogue sessions on Saturday and Sunday mornings gave dealers and vendors an additional chance to exchange candid opinions about key issues affecting the supply channel.

“The biggest problem is we need to work together to bring new people into the industry. And the big gorilla is

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HARDWARE CONFERENCE

Amazon and we can’t afford to bury our heads in the sand and ignore them. They are going to be our competition,” said Tom Chasteen, who served as moderator.

“We are looking to diversify our sales so we can compete with Amazon,” commented Dick Schroeder of Schroeder’s Ace Hardware in Lombard, Ill.

“We also can’t afford to add extra cost to the channel, which is what happens when all the wholesalers schedule their shows for the same weekend,” said Chasteen. “We can’t keep pushing cost back to the vendor—smaller vendors don’t have three booths ready to go for shows that hit at the same time.”

Dealers shared their thoughts on the most effective POP materials, giving votes to videos, QR codes, good signage (that’s laminated and snaps into the shelf) and bag stuffers supplied by the vendor. They also expressed interest in factory tours if manufacturers are willing to make them available to retailers.

Another topic was what dealers are doing differently in their stores. Kevin Bolender of Executive Hardware in Fort Lauderdale, Fla., has expanded into rental, which he says is bringing in new customers. Ronnie Boland of Boland’s True Value in Chapin, S.C., is concentrating on customer service and improving their use of technology, while Elizabeth Harrigle of Tuckerton Lumber in Tuckerton, N.J., said she is still hanging on waiting for her market to recovery in the aftermath of Hurricane Sandy.

Chasteen noted that retailers need to do a better job of entertaining customers. “You need to think like Bass Pro Shops does. They

Tom Chasteen leads the discussion during the open dialogue sessions.

The open dialogue sessions gave dealers and vendors a chance to get their concerns addressed.

Dan Hitchcock of Ace Home Centers in Miami makes a point during the open dialogue session.

entertain customers and get them buying from multiple departments,” he said.

THANKS TO SPONSORS

Special thanks go to the marquee sponsors: Gilmour, The Hardware Connection magazine, The Hillman Group, Krylon, Miami Children’s Hospital Foundation and The Wooster Brush Company.

The wholesale community also lends important support to the Conference each year, with representatives from Ace

Hardware, Do it Best and True Value in attendance and conducting meetings with their members, along with Orgill.

“We couldn’t put on this Conference without the wonderful support we receive from these sponsors, and we are fortunate to have so many vendors who are willing to support the independent channel,” said Chasteen, who gave special recognition to Krylon and Wooster Brush for participating in The Hardware Conference for 25 consecutive years.

Matt Noonan III of Noonan True Value, Sandy Parks, Bill Parks of Williamson-Dickie and Carol Noonan.

Dale Chasteen and Jim Gray of The Hardware Connection and Jim Ertzman and Teree Ertzman of South Hills True Value in Pittsburgh.

J.P. Shields of Fixture-Fix and Bob Clemence of Hyde Tools.

HARDWARE CONFERENCE

At the end of the Conference the vendors auction off their display merchandise and the money raised is donated to the Miami Children’s Hospital Foundation. This year’s auction raised about $25,000, bringing the total fundraising amount over the years to more than $930,000.

Before the auction took place Saturday night, the audience was treated to some unexpected drama. After an elaborate ruse orchestrated by Chasteen, Richard Madden proposed to his girlfriend, Heather Barbieri… and she accepted. Madden is the son of Mark Madden, owner of Madden’s Ace Hardware in Daytona Beach, Fla.,

Beth and Pat Sullivan of Sullivan Do it Best Hardware & Garden in Indianapolis; and Debi and Mitch Haase of Mitch’s Incredible Ace in Plainﬁeld, Ind.

who has attended all 25 Hardware Conferences.

Start making plans to attend next year’s Hardware Conference, scheduled for September 5-7, 2014, at the Marco Island Marriott. For more information, call Tom or Dale Chasteen at (305) 8530049 or go to www.thehardwareconference.com.

John Hammond was the master of ceremonies for the Beacon Awards program.

Beacon Awards Program Honors

Industry’s Best Retailers

Five retailers were honored with Beacon Awards during a special awards banquet held during The Hardware Conference in Marco Island, Fla., on Friday, September 6.

THE BEACON AWARDS ARE A premier national industry awards program developed by The Hardware Connection magazine and The Hardware Conference to recognize the “best of the best” independent hardware/home improvement retailers while Click Brief Overview of the 2013 Beacon Awards Program to Watch a

encouraging a new generation of retailers to make their mark.

“We feel it’s important for the industry to have a ﬁrst-class national awards program, and there is no better place to conduct this awards program than at The Hardware Conference, which is the industry’s largest gathering of

From left to right: Howard and Marsha Miller, Hartville Hardware; Jason Peterson, Do it Best Corp.; Beth and Pat Sullivan, Sullivan Do it Best Hardware & Garden; Bob Lueders, Sunnyside Corporation; Doug Laird, Apex Tool Group; Tina and Scott Andrews, Lutz Ace Hardware; Dave Atkins, Ace Hardware Corp.; Tonia and Ronnie Boland, Boland’s True Value; Tim Hanna, True Value Co.; and Jim Holden, Epicor.

Jason Peterson of Do it Best Corp., Marsha and Howard Miller of Hartville Hardware and Tom Delph.

Dave Atkins of Ace Hardware, Scott and Tina Andrews of Lutz Ace Hardware and Tom Delph.

independent retailers from different wholesalers,” said Tom Delph, who directs the Beacon Awards program.

The 2013 Beacon Awards were sponsored by Apex Tool Group, Epicor Software Corp. and Sunnyside Corporation, with wholesaler sponsorship support from Ace Hardware Corp., Do it Best Corp. and True Value Company.

The Beacon Awards honored the Retail Beacon Award winners for each

Jeff Powers, Owner Powers Do it Best Hardware

Andrews of Lutz

said they were thrilled to learn they were selected as Best New Store.

of the three participating wholesalers, plus the Best New Stores in two categories: under 25,000 square feet and over 25,000 square feet.

Here are the ﬁve Beacon Award honorees for 2013:

Best New Store, over 25,000 square feet: Hartville Hardware, Hartville, Ohio, owned by Howard and Wayne Miller

Best New Store, under 25,000 square feet: Lutz Ace Hardware, Lutz, Fla., owned by Scott, Todd, Tina and Andrea Andrews

Retail Beacon Award: Sullivan Do it Best Hardware & Garden, Indianapolis, Ind., owned by Pat Sullivan

to Learn More About Our Pumps

Scott

Ace Hardware

Tim Hanna of True Value Co., Ronnie and Tonia Boland of Boland’s True Value and Tom Delph.

Jason Peterson of Do it Best Corp., Pat and Beth Sullivan of Sullivan Do it Best Hardware & Garden and Tom Delph.

Howard Miller of Hartville Hardware said a lot of people put time and effort into helping them open their new store and “if your industry deems that as worthy of an award that’s certainly gratifying.”

Dave Atkins of Ace Hardware Corp. (left) accepts the Retail Beacon Award from Tom Delph on behalf of Marmac Ace Hardware.

Bob Lueders of Sunnyside Corporation receives Beacon Award sponsor trophy from Tom Delph.

Jim Holden of Epicor receives Beacon Award sponsor trophy from Tom Delph.

Doug Laird of Apex Tool Group receives Beacon Award sponsor trophy from Tom Delph.

Retail Beacon Award: Boland’s True Value, Chapin, S.C., owned by Ronnie and Tonia Boland

Retail Beacon Award: Marmac Ace Hardware, Maui, Hawaii, owned by Bill Marrs

The Marrs family was unable to attend the Conference, as their trade area in Hawaii was hit by a hurricane a week after they opened their second store. Dave Atkins of Ace Hardware Corp. accepted the Beacon Award on behalf of the Marrs family, who are planning to attend next year’s Conference to be recognized.

“What an outstanding group of Beacon Award winners,” said emcee John Hammond. “They all took risks to open new stores that would be embraced by their communities while positioning their family businesses for future success.”

“I was very happy with how the awards program came off and glad we were a part of it. Everything was very well done,” commented Bob Lueders, president of Sunnyside Corporation.

Epicor Eagle —Powering Excellence for Independent Hardware Retailers

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Best New Store Over

Click to Watch Hartville Hardware’s Beacon Award Presentation Video

Brothers Howard

25,000

and Wayne

Hartville Hardware

Hartville, Ohio sq. ft.

felt the new, larger store was necessary to keep the business strong for future generations of family members.

In April 2012

brothers Howard and Wayne Miller opened the largest independent hardware store in the country—a 305,000-square-foot home center on two levels over seven acres. The Millers wanted to build a destination store that would position the business to be viable for future generations of family ownership.

(left)

Miller

This ground-breaking store features a number of retail innovations including an 1,850-square-foot “Idea House” on the salesﬂoor, a touch-screen navigation tool for fasteners, color-coded walls to identify departments, a unique daylight harvesting system using 72 skylights to save electricity, and kitchen and bath vignettes housed inside historic facades.

Not only did they construct a whole house on their salesﬂoor, they tracked down enough vendors to ensure the house was built almost entirely with “Made in the USA” products. “Having a 1,850-square-foot house in the middle of the store has been a great marketing

Hartville Hardware covers 305,000 square feet on two levels.

An 1,850-square-foot “Idea House” was constructed on the salesﬂoor as a way to showcase design ideas, style trends and Made in USA products.

tool for us,” says Howard. “The ﬁrst thing people ask when they walk in the door is ‘Where is the house?’ The Made in USA part has helped solidify our reputation for having quality products.”

Hartville Hardware’s design, layout and organization were all based signiﬁcantly on input from their customers. “We asked our customers what types of things they were interested in seeing in our new store, and we listened,” says Howard, who serves as company president. “That’s why we have six different entryways to make it more convenient for customers.”

Hartville Hardware partnered with several tool and hardware vendors to design and build their own product areas, with their wholesaler, Do it Best Corp., also providing extensive merchandising assistance for the 75,000+

Do it Best Corp. Congratulates its Two Beacon Award Winners

Hartville Hardware Best New Store

Owners: Howard and Wayne Miller

Sullivan Do it Best Hardware & Garden Retail Beacon Award

Owner: Pat Sullivan

Pat and Beth Sullivan; Do it Best’s Jason Peterson; Marsha and Howard Miller

BEACON AWARDS: The Industry’s Awards Program Honoring the Best Retailers

SKUs that are offered. A 75,000-squarefoot warehouse helps the store stay stocked up on inventory, since it averages 20 drop-ship orders each day, while also driving special order sales.

Sales increased more than 30 percent for the store’s ﬁrst year, double the projected increase, and margins were up 31 percent while transactions rose 18 percent. Several departments recorded large increases including seasonal (60%), home décor (45%) and lumber/building materials (34%). “Our ﬁrst-year results exceeded our expectations. The exciting thing is there are still lots of areas where we can do better,” Howard says.

Hartville Hardware features a dedicated contractor entrance, an 8,400-squarefoot John Deere showroom, a

Left: The outdoor living display area covers 15,500 square feet.

Upper Right: Hartville Hardware has long been known for its dominant assortment of tools. Leading power tool vendors were told to put together their best, most comprehensive display of tools.

Lower Right: A dominant assortment of outdoor power equipment makes the store a destination for that category.

drive-through feed area, a 4,000-squarefoot clothing and workwear area, and a greenhouse space with a large glass door on the exterior that can be closed

so it can be used as additional retail space throughout the year.

The original sign from the family’s livestock auction business was preserved and incorporated into the new

Top: Exterior facades representing four distinct architectural styles found in eastern Ohio are also home to in-house design teams.

Left: An upscale assortment of housewares is displayed.

Right: About 4,000 square feet is devoted to workwear, clothing and accessories.

store’s design. An historic 1860s-era log cabin was installed on the salesﬂoor and is used to house product literature for the tool department.

The new home center shares a parking lot with the family-run 80,000-squarefoot Hartville Kitchen restaurant, bakery

Hartville Kitchen, which can seat up to 500 for meals, shares a parking lot with the new store, which generates trafﬁc for both businesses. The restaurant business also includes a bakery and candy shop.

and gift shop. In back sits the bustling Hartville Marketplace, which houses 100 indoor shops with room for more than 1,000 outdoor ﬂea market booths in season. “This gives us the opportunity to be a true destination place—you can make a day of it shopping here,” points out Wayne, who operates as vice president of the diversiﬁed company.

The three businesses were already attracting a combined 2 million visitors annually, so bringing them together can only improve the foot trafﬁc.

“We are a family-owned business and there are a dozen fourth-generation family members involved in the business,” adds Howard. “We realized we had the infrastructure in place to continue the business if we positioned it properly, so that’s why we decided to go for such a large store. This facility gives us the opportunity to be in business for another 50 years.”

The Millers routinely make the store available to local groups and charities

Collectibles is a gift shop inside the restaurant that sells clocks, ladies accessories, collectibles, ﬁne gifts, artwork and home décor.

and they have been longtime supporters of orphanages in Haiti. The store makes a large ﬁeld near its location available free of charge for the cultivation of community gardens. The Millers’ commitment to supporting the community backs up their belief in the value an independent, local retailer provides.

“You can be a successful company and bottom-line driven, but I don’t think you’ll be a lot different from your competitors when you do that,” Howard says. “I feel like a great person is thought of as someone who’s made a difference in the lives of others. A great company does the same thing. Make a difference in the lives of employees, your community and your customers. Put them ﬁrst and success follows.”

For more on Hartville Hardware, see the feature article in our July/August 2012 issue—click here.

Thank You to the Beacon Awards Sponsors

The Beacon Awards is an annual event celebrating the best retailers in the industry. They are made possible by the support of sponsors who recognize the importance of honoring those retailers who represent the future of the two-step channel.

This year’s Beacon Awards were sponsored by Apex Tool Group, Epicor, Sunnyside Corporation, The Hardware Conference and The Hardware Connection magazine.

They were also co-sponsored by Ace Hardware, Do it Best and True Value.

Best New Store Under

Click to Watch Lutz Ace Hardware’s Beacon Award Presentation Video

Lutz Ace Hardware Lutz, Fla. sq. ft.

Brothers

Scott and Todd Andrews had an annoying problem with their pool business, Sunshine Pool Service and Repair, which they had been operating in Lutz, Fla., since 2003. They had to keep driving five to six miles in traffic to find little parts.

From left to right: Tina, Scott, Andrea and Todd Andrews, who jointly own and operate Lutz Ace Hardware in Lutz, Fla.

Above: Lutz Ace Hardware has generated strong sales since opening in January 2012.

Right: Sunshine Pool Service and Repair business was given its own featured spot in the new store with a special service counter and dedicated ofﬁce and retail space.

Lower Right: E.L.L.A. Boutique opened in September 2012 and was an immediate hit with the community.

“WE THOUGHT THE AREA WAS perfect for a hardware store, so we looked into opening one,” explains Scott. They decided that a hardware store was the perfect complement to the pool supply business, so in January 2012 they opened Lutz Ace Hardware.

The store features 11,900 square feet of retail selling space and has shown

Ace Hardware Corp. Congratulates its Two Beacon Award Winners

Lutz Ace Hardware in Lutz, Fla.—Best New Store

Owners: Scott, Todd, Tina and Andrea Andrews

Marmac Ace Hardware in Maui, Hawaii—Retail Beacon Award

Owners: Bill and Maureen Marrs

Scott and Tina Andrews with Ace Hardware’s

Dave Atkins (left)

BEACON AWARDS: The Industry’s Awards Program

Honoring the Best Retailers

strong sales from the beginning. Firstyear sales were an impressive $1.37 million (16 percent above projections) and gross margins were 44.3 percent, helped by a strong blend of in-store promotions, local advertising and unique social media marketing.

All associates undergo ongoing training to ensure the store provides a high level of service. Lutz Ace is in the process of becoming “Certiﬁed Helpful” by completing a comprehensive new training program from Ace titled Helpful 101.

Paint is the secondbest category after the gift shop.

Sunshine Pool Service and Repair has its own featured spot in the store with a special service counter and dedicated retail and ofﬁce space.

The store’s biggest niche is the 1,500-square-foot E.L.L.A. Boutique, a trendy gift shop operated by Scott and Todd’s wives, Tina and Andrea. E.L.L.A. is the acronym for their children’s names: Todd and Andrea’s daughters Elaina and Lilyanna; and Scott and Tina’s sons Luke and Alex.

“We were going around to other Ace Hardware stores when we ﬁrst opened and some had amazing gift stores that I fell in love with,” explains Tina. “We had been open a few months and this space was available. We considered a garden center or expanding our paint department and were just going to do gift in a small way inside the hardware store. Finally we just said ‘Let’s take a chance. Let’s do gift.’ And here we are.”

The boutique store-within-a-store is a true labor of love and it has generated stronger than expected sales due to community involvement, savvy social media and dedication to proper product selection for their market.

“Everyone that walks in (the boutique) for the ﬁrst time says ‘I never knew this was here. This is beautiful. I’m going to need a gift,’” says Andrea. “They’re just thrilled to be here and excited we’re in town. People come into the gift shop just to waste time because it’s so pretty.”

“The more you can get the women in the gift shop the more you can get them to see the other stuff we have in the hardware store,” says Scott.

The pool service and supply business along with the boutique give the Andrews family two strong destination niches that attract customers, who then purchase additional items from the hardware store. “”When they come in to get pool supplies it’s a no-brainer to pick up what else they need on the hardware side,” points out Todd.

The boutique attracts female shoppers, who then see what the hardware side has to offer.

Creative merchandising makes the gift store stand out.

Tina’s family was one of the founding families who settled the community of Lutz more than a century ago, which gives the store deep roots in the community. “When they realize I’m a native here it just makes the store seem like more of a family to them,” Tina says. Lutz Ace supports numerous local groups and charities with promotions and events throughout the year such as a Little League ﬁeld clean-up day and serving as drop-off station for Toys for Tots.

“We like to think we’re doing a good job with products and staying relevant in the community, but to be honored with a Beacon Award is something we’re very proud of,” says Scott.

“We knew it was special to us, but for it to be something that others recognize is amazing,” says Tina. “We’re so excited.”

Dedicated “pet parents” will spend almost $53 billion on their animal companions this year. Ensure pet products are in your merchandise mix and give your pet-loving customers more reason to do business with you — all year long. See what pet-loving shoppers will be buying next and capitalize on this opportunity. SuperZoo will show you how.

Sunnyside is a Proud Sponsor of the 2013 Beacon Awards

marks Sunnyside Corporation’s 120th year of continuous operations. The business has seen six global wars, a depression and countless recessions. From its humble beginnings in 1893 to the present, Sunnyside remains family-owned and managed. Through four generations, Sunnyside’s core values have not changed: to offer its customers consistent, high-quality products coupled with unparalleled service.

Today, under the leadership of Robert Lueders, the great-grandson of company founder Henry Lueders, Sunnyside continues to aggressively move into new markets, expand its customer base and introduce new products to keep up with ever-changing environmental regulations.

Henry Lueders founded H. Lueders & Company in 1893 on the north side of Chicago distributing kerosene and

other oils from a horse-drawn wagon. Sunnyside served a growing customer list with “route” trucks that filled in-store bulk containers with basic chemicals, including kerosene, naphtha, linseed oil, syoleum spirits and others.

By 1920, the company expanded to a new location on Sunnyside Avenue on the northwest side of Chicago, triggering the evolution to the name of Sunnyside Corporation.

In 1928 Sunnyside pioneered the packaging of solvents and chemicals into consumer-oriented containers, which at the time meant basic metal cans and, in some cases, glass jars or jugs. Those early containers reflected the yellow and black graphics theme that has evolved into the highly recognized Sunnyside packaging of today.

Sunnyside has increased its national presence in the paint, hardware and home center channels, while

Sunnyside Corporation’s main manufacturing facility is in Wheeling, Ill.

aggressively growing its position in various others markets. In addition to repositioning itself in the marketplace, Sunnyside has improved and expanded its main manufacturing facility, centrally located in Wheeling Ill., with a significant capital investment in automated equipment and high-speed filling lines.

The company has a distribution center in Pacoima, Calif., facilitating timely shipments throughout the U.S. Quick turnaround, timely shipping, high levels of product quality, flexibility and urgency in addressing the needs of its customers are important to Sunnyside.

Sunnyside carries a full line of retail thinners, solvents, paint removers, cleaners and mildew treatments marketed under several brands including Sunnyside, ProSolutions, Green Envy, Back to Nature and M-1. Products include mineral spirits, naphtha, paint thinner, lacquer thinner, methyl ethyl ketone, acetone, lacquer retarder, lacquer reducer, epoxy thinner, xylol and toluol.

Sunnyside’s product lines, which are available for sale in every state, are

positioned to meet or exceed environmental regulations across the country and customer needs. The company’s latest product introductions fall under the much-touted “green” category: Green Envy Paints and Cleaners, Back to Nature paint removers and M-1 mildew treatments.

“Slow and steady” may once have described Sunnyside Corporation. But with the introduction of new products and brands, updated and automated systems, and a focus on quality, the company is now set to win the race with focus, speed and agility.

The company was founded by Henry Lueders in 1893.

Retail Beacon Award

Sullivan’s Do it Best Hardware & Garden

Indianapolis, Ind.

Sullivan has grown Sullivan Do it Best Hardware & Garden into a successful three-store chain.

Pat Sullivan has taken the solid foundation of an established family business and built an innovative operation of three hardware stores, Sullivan Do it Best Hardware & Garden in Indianapolis.

Click to Watch Sullivan’s Do it Best Hardware & Garden’s Beacon Award Presentation Video

PAT’S FATHER, ROBERT, OPENED the family business in Indianapolis in 1954 after serving in both World War II and the Korean War. It was Pat’s mom, Rita, who guided the store in those early days while Robert was busy running a contracting business.

The expanded and remodeled ﬂagship store thrives in the face of big-box competition.

In 1963, Sullivan Hardware moved to 71st and Keystone on Indy’s north side, where it still operates today.

Pat grew up in the store, taking on increasing roles until taking over as owner in the early 1980s. That tradition continues today with Pat’s son, Eric, working in the business.

With big boxes encroaching on his market, Pat was concerned about the future viability of his business. In 2004 he decided to make a sizable investment in a totally remodeled, larger store. Pat visited stores in several states and across different categories to ﬁnd out what other successful retailers were doing. He determined his store couldn’t be all things to all people, but it could be a very good local hardware store at its core with a few key product categories.

He worked closely with his co-op team at Do it Best Corp. to overhaul his original, ﬂagship store, creating a destination where customers would come not just for good service, but for the best selection of products as well.

The goal for the remodeled store was to generate $3 million in sales the

The store promotes its strong ties to the community.

ﬁrst year—sales now exceed $5 million despite a Lowe’s store a mile away. “People don’t come here for price. They come here for product selection and then they keep coming back because of our service,” Pat says.

The store’s strong merchandising focus makes it an appealing shopping destination across many product categories. Pat identiﬁed outdoor living products as one of the key segments in which they could be a market leader.

The key to being successful in patio furniture is to protect your margin, according to Pat. “When we run a 50 percent off sale, we’re still making money,” he says, adding that he sells $450,000 in patio furniture each year out of an outdoor tent.

The store’s niche in grills is so wellestablished that customers actually

Next to the greenhouse is Wildﬂowers, a highend gift shop that caters to female shoppers.

pay money to attend the annual EggFest, which brings together lovers of the Big Green Egg smoker and grill as well as barbecue cooks from the region.

Sullivan’s merchandising displays cater to women without scaring away male customers. The 10,000-square-foot greenhouse draws gardening enthusiasts from all over the Indianapolis area.

An old house on the property was converted into a gift shop called Wildﬂowers, which is operated by Pat’s wife, Beth. Wildﬂowers stocks a high-end, comprehensive selection of seasonal items, establishing Sullivan’s as a market leader in the holiday category.

Pat builds ties to the community by sharing his hardware knowledge each Saturday morning with a four-hour callin radio show he has hosted since 1995. Pat uses wit and wisdom to answer caller questions on DIY projects. “It’s a great way to promote the store and establish us as experts,” he says.

Pat is a strong believer in giving back to the industry and to the community. He served as a member of the Do it Best Corp. board of directors for nine years including two years as chairman. Sullivan Hardware & Garden hosts a wide variety of store events including TurkeyFest, a Christmas open house and regular Ladies’ Night events. Pat

Sullivan’s has become a destination for outdoor living products.

and his family support not only their own church, but a long list of charities and organizations including Little Sisters of the Poor, Seeds of Hope, Big Brothers Big Sisters, the Salvation Army and Habitat for Humanity.

The family business’ second location is a convenience hardware store ﬁve miles away, while the third location is 25 miles away in Cicero, Ind.

Pat Sullivan builds on the past by honoring the legacy of his father; he

“Restore

Pat Sullivan has been hosting a weekly call-in DIY radio show for 18 years.

succeeds in the present by being ever vigilant to the needs of his customers; and he attentively looks for future opportunities to ensure the longevity of Sullivan Hardware & Garden into the next generation.

“It’s an honor to win a prestigious award like the Beacon Award,” says Pat, “but we’re even more excited that we’ve built a business that can successfully serve the community for many years to come.”

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Retail Beacon Award

Boland’s True Value Chapin, S.C.

Click to Watch Boland’s True Value’s Beacon Award Presentation Video

Boland’s True Value

was founded in 1982 with a modest beginning—a 3,000-square-foot salesﬂoor. It later expanded to 10,000 square feet, but owners Ronnie and Tonia Boland knew they needed to do something more dramatic if they wanted to keep the business viable.

In 2011 Boland’s True Value moved to a new, larger location a mile away.

THE BOLANDS WERE IMPRESSED with the results other True Value retailers were getting after adopting the Destination True Value format, and Ronnie and Tonia were looking for a way to better position the business so it could be passed on to their son, Eric. They decided to move to a new, larger location a mile away. Boland’s True Value was the ﬁrst store to adopt the Destination True Value format in South Carolina when it opened in May 2011.

By doubling the size of their salesfloor, the Bolands have been able to dramatically boost the space devoted to each of the core categories and add more variety. Outdoor living and seasonal products gain more space and attention in the new store. Sporting goods and pool chemicals are among the new niche categories that were added with the extra space.

Sales in the paint department have been exceptional in the new store, thanks to the beefed up selection and enhanced merchandising. “We thought we were doing well in paint before, but sales keep climbing,” according to Ronnie.

Customers love the new store, especially female customers. As Ronnie puts it, “We are more female friendly and become more of a shopping destination.”

The new store finally gives them the space to have outdoor selling for lawn

In addition to Ronnie, Tonia and Eric Boland, the store has 12 fulltime employees who are dedicated to providing exceptional service.

and garden. With nearly 4,000 square feet of outdoor selling space, Boland’s True Value has seen a huge increase in lawn and garden sales.

There wasn’t much room for decorative hardware at the old store, but it is prominently merchandised in the new location. The store has now become more of a destination for hardware and fasteners, which makes it a drawing card for the men.

With its new store taking the business to new heights, Boland’s True Value was named one of True Value’s “Best Hardware Store in Town” winners for 2012.

Customers fall in love with the store’s service…literally. Customer Eva James became smitten after being waited on in the paint aisle by associate Daryl Pittman. He helped her finish her project and they immediately started dating. When the pair decided to get

Ronnie and Tonia Boland with True Value’s Tim Hanna (right)

Boland’s True Value in Chapin, S.C.—Retail Beacon Award Owners: Ronnie and Tonia Boland

BEACON AWARDS: The Industry’s Awards Program Honoring the Best Retailers

married the wedding took place in Boland’s True Value.

“It was an opportunity for the store to get a little publicity and it was an honor for us. We wouldn’t have had room for a wedding in the old store,” jokes Ronnie.

Left: Paint sales have skyrocketed in the new store.

Right: By creating a softer side to the hardware store, Boland’s placed renewed emphasis on home décor and fashion items.

Boland True Value’s reputation for customer service and its deep involvement in events and community activities earned Ronnie the “Business Person of the Year” award in 2007. The Bolands are active in the local Chamber of Commerce and have participated

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Left: The new store has 4,000 square feet of outside selling space for lawn and garden.

Simplified

“I listed used fixtures and equipment I didn’t need on www.wingateclassified.com and found a buyer right away! “

As a Store Owner

You may have store fixtures, equipment and furniture that you need to sell. You’re tired of storing stuff and it all has to go! List it on wingateclassified.com and turn your unused items into spendable cash.

In addition to fixtures and equipment, you can also list your entire store for sale. If you’re retiring or just ready to close, Wingate Classified is the best way to find a buyer for your store.

“I found the perfect fixtures for my store and saved a lot of time and money using www.wingateclassified.com”

Right: Boland’s True Value’s reputation for customer service and its deep involvement in events and community activities earned Ronnie the “Business Person of the Year” award in 2007.

As a Buyer

Wingate Classified is your first stop every time you need equipment or are in the market for a whole store. We bring buyers and sellers together who are looking to make a deal. Growing your business has never been this easy.

in the Toys for Tots program for the past 15 years, among their many community service initiatives. “Our goal from day one has been to provide a service to the community,” Ronnie says.

After winning the True Value “Best Hardware Store in Town” competition and now the Retail Beacon Award, Ronnie says it’s time to dream some new goals to achieve so the business is still going strong 20 years from now.

a growing community of thousands of

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

John Fix Owner, Cornell’s

Hardware Eastchester, NY

Retail Beacon Award

Marmac Ace Hardware

Maui, Hawaii

Click to Watch Marmac Ace Hardware’s Beacon Award Presentation Video

Bill Marrs and family

opened Marmac Ace Hardware in 1972 in Kahului, on the island of Maui in Hawaii.

The store is 9,000 square feet total, with an 8,000-square-foot selling area and 1,000 square feet of outside selling area.

Bill Marrs and family opened Marmac Ace Hardware in 1972 in Kahului, Hawaii.

THEIR ORIGINAL STORE, WHICH celebrated its 41st anniversary in March, exceeds $4 million in retail sales and continues to experience growth each year. “We offer a family atmosphere. We know all our customers by name,” Bill explains.

Bill and his wife Maureen are joined in the family business by sons

Michael and David (who is a manager) and daughter Lauri Lawrence, who runs the ofﬁce.

With 18 grandchildren and six great-grandchildren, Bill and Maureen wanted to create more of a legacy for their family while providing opportunities for more family members to get involved in the business. They decided to open a second store. Five miles away they found a suitable location in one of the fastest-growing areas of the state, Wailuku.

“We were opening a new frontier when we opened our ﬁrst store 41 years ago,” explains Bill, “and we’re exploring a new frontier with this new store too. If we didn’t open a store, someone else would.”

The new store is 13,000 square feet with 10,000 square feet of selling area.

Another son, Michael is also involved in the business.

A second Marmac Ace store opened in July 2013 ﬁve miles away from the original store.

So far the community has embraced the new store, which is located near a new 500-tract housing development. Bill and his family believe in giving signiﬁcantly to their local Maui community and view every Bill and Maureen Marrs are joined by son David and daughter Lauri Lawrence.

They celebrated their grand opening on July 19-21 with more than 2,000 customer transactions and $101,000 in retail sales during the three-day event.

customer as “Ohana,” which is the Hawaiian word for family.

With a larger salesﬂoor, the new store is able to offer expanded core assortments as well as beefed up niches in cleaning, pet supplies and 40 feet of Craftsman tools.

Although it competes against Home Depot, Lowe’s, Walmart, Kmart and Costco, all within two blocks, Marmac Ace Hardware enjoyed its best year ever in 2012. Having the right products in stock and knowledgeable employees who can deliver great service is the key, according to Bill.

Maureen has turned the Marmac Home & Kitchen department in the original store into a destination. The 1,000-square-foot kitchen department brings in a steady ﬂow of female customers, creating a year-round holiday

Left: Maureen has turned the Marmac Home & Kitchen department in the original store into the ﬁnest kitchen store in the state.

Upper Right: The grand opening event, held July 19-21, attracted a strong turnout.

Lower Right: With a larger salesﬂoor, the new store is able to offer expanded core assortments.

and gift store. She stocks high-end, name brand products that are promoted in TV ads.

Bill hired 20 new people for the new store, giving him 45 total employees. He views his associates as an extension of his family, so it’s not surprising that he was named “Employer of the Year” for the county in 1989.

“We’ve been very blessed with success and this (opening a new store) is an opportunity to give back to the community,” Bill says.

By John Fix III

HARDLINES DIGEST

Plummer’s Do it Best Hardware gives employees a cash bonus for working holidays.

Cell Phones and DEBATING Holiday Pay

The wholesaler trade shows are mostly behind us, so as we gear up for the fall and winter selling season let’s take a look at some conversations from Hardlines over the past few months.

CELL PHONES

Walt Thomas of Handyman True Value Hardware in Florissant, Mo., posted this note about cells phones.

“We supply cell phones for several key employees (managers, drivers, outside

sales). The majority of these phones are voice only and a few have voice/text/internet services. Most of the employees that have company cell phones also carry a personal smart phone. So instead of providing phones we’re thinking of providing a monthly cell phone allowance to these individuals. This would help the employee out by subsidizing their personal plan and would be a beneﬁt for the company that we would not be liable for breakage, keeping track of their usage and so on. What are others doing?”

When Page Hardware & Appliance opened for the first time on Labor Day it raised the issue of how to pay employees.

Karla Robson from Slaven’s True Value in Cortez, Colo., replied, “We supply phones to our delivery drivers, basic talk, no texting, no internet. For the two managers that carry smart phones, we give a phone allowance and credit it to our house account. It works well for me, because I am always buying stuff here. Plus, then I get the benefit of having my spouse on my home plan and save money for his phone. If I was on a company plan, I would pay way more for his phone.”

Steve Beeson from Beemun’s True Value in Soldotna, Alaska, added, “We pay those that have store and safe access $60 a month for their phones. Per my CPA, $30 is a business expense,

and they pay taxes on the other 30. Both go on their paycheck on the 1st of each month.”

Whitney McKellar of M&M Lumber in Tulsa, Okla., has an interesting use for cell phones. “We have push-to-talk phones for all of our drivers/dispatch that have a camera and text plan to send back photos of each delivery when it is made. There is no phone function except for a 911 feature. I believe all our drivers have a personal phone they carry with them.”

She added, “As for our outside sales guys, we allow $60 a month for a phone plan. They can have a $9.99 plan with their spouse/family or a $199 all the bells and whistles plan if they want. We only reimburse $60 a month and they are to be available during office hours. If they want to upgrade, have insurance, not have insurance, get a green cover one week and a blue one the next, then that is totally up to them.”

Holiday Pay

Amy Earl of Page Hardware in Guilford, Conn., inquired about holiday pay for staff members. “For those of you who are open on holidays like July 4th, Labor Day and Memorial Day, how do you handle non-essential staff? Do you require office, bookkeepers or delivery crew to come in? Do you offer extra compensation to the people who work that day? Do you pay the people who have the holiday off?”

Earl noted that they decided to open on Labor Day for the first time this year. “Until now it was a paid holiday, which makes it tricky for people who normally have Mondays off and for the people who now have to work that day,” she said.

Brandon Buckalew of EGF Hardware Hank in East Grand Forks, Minn., shared his policy. “We’ve always said that if a holiday falls on a day that you normally work, you get paid for it. But if you are Monday-Friday person and it falls on Saturday or Sunday, you won’t get paid for it. In the past we’ve done a sign-up sheet and were only open for a shorter day. We paid time and a half for those that signed up. But from now on, I think I’m just going to schedule like normal and pay normal (Memorial Day and Labor Day).”

Scott Plummer of Plummer’s Do it Best Hardware in Farmington, Mo., posted his thoughts. “We are open on Memorial Day and the 4th, from 8 a.m. to 2 p.m. We run a skeleton crew (salesfloor/cashiers) and those employees get a $30 bonus—$5 an hour bonus—nothing big but a slight incentive. All fulltime employees have those days as a paid holiday. Those that work or if their day off falls on that day can use that as a paid day off in the future. We do close Labor Day, only because it had been the slowest sales day vs. Memorial and the 4th. We also run a skeleton crew on Sundays (10 to 3) but pay no incentive.”

hardlines digest

I posted our policy at Cornell’s. “We are open Memorial Day and we keep just salesfloor staff on the schedule. Office and delivery crew (full time) get paid for the holiday. Full-time staff that works that day can take another day off (essentially we add one personal day to their allotment). We are closed July 4th and Labor Day, so the staff just gets the paid holiday. As someone else mentioned, Labor Day was slow for us the one year we opened. Memorial Day is great and haven’t opened on July 4 so can’t offer our experience on that one.”

Finally, Sid Snow of Snow’s Home and Garden in Orleans, Mass., posted his full holiday pay policy from his employee manual. You can view his policy at the Hardlines forum on Google Groups: https://groups.google.com/d/msg/ hardlines/10MMFVTaBsg/H6lt8U4kUnIJ

These are just two of the topics discussed during the past few months on Hardlines Digest. To read more or subscribe, head to www.hardlinesdigest.com . n

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

CATEGORY REPORT

PLUMBING TRENDS

Sales of Toilet Repair

(Independent Hardware Channel) 12 Months % Change vs. Year Ago

Toilet Repair: Units

Toilet Repair: Dollars

Source:

Unit Sales Breakdown for Toilet Repair Total of 905 Items with

Manufacturers and retailers use Vista’s retail POS and Consumer Panel data to better sell to their customers. Go to

Cole’s Home Solutions in Millington, Tenn., displays toilets, pedestal sinks and medicine cabinets so customers can visualize how they will look in their homes.

PLUMBING BUYING UPDATE

• National lead-free legislation, which goes into effect on January 4, 2014, prohibits the sale and installation of plumbing fixtures with a wetted surface area containing more than a weighted average of 0.25% lead. This law virtually eliminates the lead content of pipes, pipe fittings and fixtures intended to convey or dispense water for drinking or cooking.

• The law affects not only faucets and appliances that dispense and treat consumable water, hot and cold, but every product within its distribution such as the piping system and its ﬁttings, water stops, ﬂexible water connectors and water heater connectors, pipe nipples, stub outs, etc.

• Current inventories of any non-compliant brass products will become obsolete on January 4, 2014. Noncompliant product is not grandfathered for continuous use and customers will no longer be able to

Central True Value in Moncks Corner, S.C., beefed up its assortment of faucets and plumbing products when it remodeled the store in 2011.

purchase, sell or install products that are not compliant with the new law.

• Current stock of brass ﬁttings are made from an alloy called C360, which has a lead content of up to 3.7 percent. Lead is used to make brass softer and as a chip breaker during the machining process. A lot of the base material is from recycled products. It already contains lead—you cannot take it out. Instead, the material is diluted with additional copper, zinc and iron. These elements make up the brass alloy.

• Plumbing manufacturers recommend that retailers sell through current noncompliant products well in advance of the implementation date and replenish with only compliant inventories now before the product becomes unsalable.

• Look for compliant products that have been third-party certiﬁed by an accredited lab such as NSF International, Underwriters Laboratories, CSA International and IAPMO.

• The new lead-free plumbing products will cost more, because the raw materials cost more to produce, the tooling costs are more, the machining times are much slower and the new alloy destroys tools because of the heat that is generated. ■

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IN THE NEWS

NEW STORES:

■ Perry and Barbara Hahn have purchased Warden’s Ace Hardware in Delaﬁeld, Wis., and are given the store a total remodeling.

■ Pleasants Hardware opened its eighth store in Midlothian, Va.

■ Tim Alexander opened Alexander’s True Value in Farmington, Mich.

■ Westlake Ace Hardware opened its 87th store in Lenexa, Kan.

■ Genesis Town & Country opened a Hardware Hank outlet in Belle Plaine, Minn.

■ Spahn & Rose Lumber opened new stores in Newton, Iowa, and Byron, Ill.

■ Whatcom Farmers Co-op purchased Fairway True Value Hardware in Lynden, Wash., and renamed it WFC True Value .

■ Lou Manfredini opened his second store, Villa Park Ace , in Villa Park, Ill.

■ Sullivan Building Supplies has opened in Sullivan, Ind.

■ Arrow Ace Hardware has purchased Denny & Kathy’s Ace Hardware in St. Cloud, Minn., which will be its 12th store.

■ Alan and Steve Mansour have opened their third AAA True Value store in Detroit.

■ Belletetes has purchased R.P. Johnson stores in Sunapee and Andover, N.H.

■ Edward Hines Lumber , a subsidiary of US LBM Holdings , is opening a new store in Grayslake, Ill.

KUDOS TO:

■ Third-generation owner Bruce Davis is marking 60th anniversary of Junction True Value in Seattle.

■ Nygren’s True Value in Vermillion, S.D., celebrated its 25 th anniversary with a grand reopening Sept. 12-14.

■ Ed Pritts is celebrating the 50th anniversary of Pritts Pro Hardware in Burnettsville, Ind.

■ Trio Do it Best Hardware & Paint in Plainview, N.Y., is celebrating its 50th anniversary.

PEOPLE ON THE MOVE:

■ Blish-Mize promoted Chuck Short to vice president-marketing.

Stephanie Pedersen

■ PRO Group promoted Stephanie Pedersen to associate buyer.

WHOLESALERS IN THE NEWS:

■ Ace Hardware Corp. announced it will be launching a new Paint Studio rebranding campaign in May 2014, with the goal to roll it out to 3,000 stores.

■ True Value Company announced a new branding initiative designed to attract the next generation of consumers at its Fall Reunion, where most members got their ﬁrst look at new CEO John Hartmann.

■ House-Hasson Hardware has closed on the sale of the former Moore-Handley distribution center in Pelham, Ala.

■ True Value Company reported gross billings of $543.3 million in the second quarter, up 1.4%. Revenue increased 1% to $411.5 million and net margin was up 7.2% for the quarter. Year-to-date store revenue was up 0.8% on gross billings of $987.6 million.

■ Ace Hardware Corp. reported revenues up 9.7% to $1.2 billion in the second quarter ended June

DIANE ALLEN JOINS THE HARDWARE CONNECTION

Diane Allen has joined The Hardware Connection as director of vendor programs. Most recently director of the vendor partner program at NRHA, Diane has 16 years of hardware industry experience. She will be directing a new Hardware Ambassador Program and selling advertising for The Hardware Connection. “Diane is well-known and respected throughout the industry, by retailers and manufacturers, and we are delighted to have her join our team,” said Publisher Tom Chasteen. Diane can be contacted at diane@thehardwareconnection.com.

29, with net income up 184% to $42.3 million. Same-store sales rose 5.3% in the quarter. Ace had a net increase of 15 stores in the quarter and now has 4,121 stores.

OTHER NEWS:

■ Lowe’s Cos. has completed its

Diane Allen

acquisition of 72 Orchard Supply Hardware stores.

■ National small business movement Independent We Stand is accepting nominations for the 2013 Independent We Stand Small Business of the Year Award . Go to www. IndieBizAward.com to complete the nomination by October 27 deadline. The Independent We Stand movement is sponsored in part by STIHL Inc., Chrysler Group and Devoe Paint.

IN MEMORY:

Frank Tooke

■ David Frank Tooke passed away September 19 at the age of 74. A native of Canada, Frank spent more than 30 years as an executive for Cooper Tools before joining Red Devil Inc. as a board member. He served on the board and as chairman of the American Hardware Manufacturers Association. He is survived by his wife Marta, son Richard, daughterin-law Karin, grandsons Will and Ben and sister Gloria Jean McDowell.

■ Mel Halpern, retired owner of Ace Hardware in Northvale, N.J., passed away July 13 at the age of 72. He is survived by son Steven and daughter Amy Fanning.

■ P. “Guz” Guzman Jr., owner of National Hardware Supply in Fresno, Calif., since 1958, passed away August 11 at the age of 90. Click here.

GET THE FULL STORY:

■ Court rules in retailers’ favor to limit debit card swipe fees but U.S. Federal Reserve is appealing. Click here.

■ Pete’s Ace Hardware in Castro Valley, Calif., boosts customer cart size by 411% with mobile coupon campaign. Click here.

■ Hundreds of hardware retailers in the Gulf Coast Region may be eligible for a settlement as a result of the BP oil spill. No claims will be accepted after April 22, 2014. To see if your business is in one of the economic loss zones, check the map posted by Economic Recovery Group.

■ Pollock’s Hardware Co-op in Winnipeg, Manitoba, (featured in March/April 2012 issue of The Hardware Connection) is looking to expand to a second store. Click here.