Hardware Connection Spring 2011

Connection

UNIQUE NICHES to Build

WE DON’T NEED BADGES

Based in Memphis, Tenn., Orgill has five distribution centers throughout the country with locations in Tifton, Ga.; Inwood, W.Va.; Sikeston, Mo.; Hurricane, Utah; and Kilgore, Texas. From these distribution centers, Orgill serves independent hardware stores, home centers and lumber and building materials dealers of all shapes and sizes.

It’s All About You

We don’t spend ANY time at Orgill making sure our customers comply with any sort of rules or mandates. We think it is more important that we spend our time working on ways to be the best distributor we can be.

You Won’t Miss Out

While Orgill offers its customers worldclass store design services, assortment planning options, signage, advertising and a whole host of retail programs, none of them are mandatory. Customers only use what they feel is right for their business. And better yet, they only pay for what they use.

Keep Your Independence

We feel that your local brand is far more important than any national image. That’s why we will help you develop your brand and tailor your store to better serve your own, unique market.

We’re Here to Serve You

When you do business with Orgill, you are a customer, not a member. That means we have to earn your business every day. That also means you have no stock requirements or membership fees, so you can keep all your money where it will do the most good, growing your business.

A Total Category Solution

Hyde Tools introduces a whole new surface prep program with new tools and better margins for our retail partners. The full program includes high-value, competitively priced putty knives and scrapers at every price-point, starting right at the top with premium PRO STAINLESS tools.

Together with the HYDE® Black & Silver® Tools, three new product lines provide a tiered, “good, better, best and premium” arrangement offering something for everyone. Every tool in the program has been optimized to deliver the features users want at the price they expect to pay.

Contact your Hyde Tools sales rep to see how the new HYDE® program can give you “a better finish.”

EDITOR’SNOTE Finding Your Niche in the Market

To operate a successful hardware business, most retailers have discovered it is necessary to develop a strong niche or niches to keep customers coming back. Some dealers go for the traditional niches like outdoor power equipment, rental and automotive, while others get creative and experiment with oddball stuff like metal detectors, kayaks and scrapbooking supplies.

Walmart’s relentless expansion to the outskirts of towns across America has led to the exodus of many independent shops peddling shoes, books, crafts, sporting goods, clothing and the like. Bad news for those shops in some cases turns into an opportunity for surviving retailers such as the family-run hardware store. Not only are hardware dealers discovering ways to sell housewares even when they compete with Walmart, they’re finding lots of other merchandise holes they have the potential to fill.

Hardware retailers in small towns and rural areas almost don’t have a choice — turn your store into more of a one-stop shop or watch your customers get in their cars and drive to the next town to buy what they need. Turn to page 28 to learn unique niches retailers are using to keep customers buying local.

Magazines are no different than stores — we need to establish our niche in the market. Whether it’s being the first industry publication to write a major

By Chris Jensen

feature on social media (covered in our first issue) or the first to outline the benefits of starting a “Buy Local” campaign (covered in our second issue), The Hardware Connection is committed to addressing the issues of concern to independent hardware retailers. We not only write about retail issues, we do it from a retail perspective by having dealers contribute a lot of our content. Tom Chasteen writes a column about the challenges of being a retailer and reviews new products like only a third-generation retailer can do. He gets to do it from the Florida Keys, too, which should make us all jealous. John Franklin draws on his nearly 40 years of retail experience to share insights on pricing and merchandising. John Fix of Cornell’s True Value recaps the discussionof dealers on Hardlines Digest in every issue.

As I get ready to hit the road and visit retailers in Kentucky, Tennessee, Georgia, Mississippi and West Virginia this month, I look forward to discovering new tales of success to share with our readers. Our next cover story is on “Keeping the Government Off Your Back,” so be sure to email me your tales of woe and frustration at chris@ thehardwareconnection.com. We can’t promise you’ll never be bothered by the IRS or OSHA again, but you’ll feel better to let off some steam.

In retail, cash is king. And helping our member-owners maximize their cash flow is serious business. How do we do it?

• Lowest cost of operation—yesterday, today and tomorrow

• 90% of SKUs available as one each—to lower inventory and increase turns

• True landed costs—invoice prices include all delivery costs, for effective margin management

• No long-term debt—this means larger rebates to members, not interest to banks

• No national advertising fees—you choose what, when and where to advertise

If you’d like to see the difference we can make in your business’s bottom line, give us a call at 877-301-2646 or send us an email at cashflow@doitbest.com for a no-obligation, confidential cash flow analysis.

Learning the Art of Delegation

By Tom Chasteen

Like most hardware retailers I have a tendency to struggle with the “D” word — delegation. It’s one of those tasks that sounds easy to do — just ask someone who doesn’t own their own business. They will tell you to just “sit back and let your employees do the work” or “tell your people what to do and if they don’t do it, then fire them.”

The reason delegation can be such a struggle for many of us is that our businesses are personal and not just a job.

The reason delegation can be such a struggle for many of us is that our businesses are personal and not just a job. We view our customers not just as customers, but as our neighbors and friends. From the time we were old enough to remember, we’ve been taught the value of friendship and commitment and to not let your friends down. So whenever we rely on someone else to do something for us there is always the possibility there will be a disconnect and the ball will get dropped. Hence, the old saying: “If you want something done right, do it yourself.”

To delegate properly, make sure the person you are delegating the responsibility to actually understands what you are asking them to do. They also need to understand why it’s important to do it in a

timely manner and follow through and what the repercussions are (not from me) if we drop the ball.

Right now I’m hearing that little voice in the back of my mind saying, “By the time you go through all of that, you could have already done it yourself, the right way.” I have to constantly fight the urge to just do it myself. And you know what? My employees will stand there and watch me do it, thinking I’m the only one who can do that or that’s the way I want it done. Then the objective and reasonable part of my mind starts telling me, “Tom, only a fool continues to do the same thing over and over and expects a different result.” If I don’t tell them I’m not the only one who can perform the task, then they will go on thinking I am.

Right now many of you are thinking that you’ve been there, done that, and so what’s the point? I was speaking with another hardware retailer friend recently and we were discussing ways to manage our businesses better and get a little more time away from the store (I typically work 60 hours a week). We both agreed that to manage (notice I didn’t say run) our businesses more efficiently and still get a little more time away from the store we would have to do a much better job of delegating tasks in the store.

My father used to tell me the same thing, but what did he know? He had

only managed our family business successfully for 30 years. But that was back then and this is now and it’s different! Does this sound familiar? How immature and naïve I was.

Over the past five years I’ve been making a concerted effort to delegate more responsibilities to our employees. The first place I started was to admit to myself that we were going to drop the ball, so get used to it and accept it — just don’t do it very often and limit the opportunities for it to happen. Next, I took a page from my father’s book that says when you leave someone in charge, accept the fact they are not going to do things exactly like you would and it won’t always be the way you want them to do it. If you aren’t willing to accept this, don’t ever put them in charge. Finally, I was determined to be successful in delegating responsibilities. Failure or the status quo simply were not options.

Once I came to terms with these three basic principles — and I still fight the urge to revert back — the rest was pretty straightforward. The final step was to sit down and list all of the tasks I did in our hardware business that were repetitive, particularly the tasks I was doing each day, each week and each month. You need to keep your ego in check and list everything, even the stuff you absolutely cannot delegate. Then I asked myself, if I were disabled for six months and had time to prepare how would I delegate each task and to whom?

Once I determined what I could

delegate and to whom, I needed to figure out a cross-check system on the more critical issues such as bank deposits, checking orders, placing orders, receiving merchandise, payroll, etc., to make sure they were done correctly. I also started with the easiest tasks that were less critical, to help develop my delegation skills and patience. Teaching delegation is truly an art. When done right it looks very easy, but when done poorly it makes everyone look like a fool.

Teaching delegation is truly an art.When done right it looks very easy, but when done poorly it makes everyone look like a fool.

Do I still work 60 hours a week? Yes, but I don’t do very many repetitive tasks. Do we drop the ball? Yes we do, but the measure of a good team is to overcome those mental lapses and keep moving forward. Does everyone do things exactly like I did them? No, many times they actually do them better. The most important thing as far as our family hardware business is concerned is that it’s no longer critical that I’m a part of all the day-to-day operations.

As my father used to say, “Unless you are willing to delegate responsibility, you will always have your ankle chained to the front door of the store.” You know what? He was right. The choice is ours on how we choose to “manage” or “run” our businesses.

Amazing but TRUE Hardware Stories

Not only do independent retailers have to compete against the big boxes, they have to deal with the aggravating problems that arise from that competition. For example, customers who come in and ask questions to find out how to solve their DIY problem but then go to the big box to buy the products. Or the customers who buy products at the big boxes and try to return them at independents’ stores.

Just think how boring retail life would be without these wacky customers. The following “Amazing But True Stories” from the readers of The Hardware Connection all relate to Agent Orange. And in case you’re wondering, the next full moons are scheduled to occur on March 19 and April 18. Those might be good days to have the assistant manager handle the store.

“I was helping a customer with paint and this ‘crazy’ bystander had to insert his two cents. He actually proceeded to tell the customer, in front of me, to go to Home Depot to buy the paint — both the customer and I were dumbfounded. Later that night we were closing up and this same crazy customer comes running to the door in a panic. He was in the middle of pouring some cement and he needed

two more bags of cement quickly, or in his words, ‘his pour would be ruined.’ I politely shut the door and told him to go to Home Depot.”

Matt Mazzone

Mazzone True Value Brooklyn, N.Y.

“There used to be a lawyer tenant in our shopping center who would buy nothing from us but always came to us to solve problems with stuff he bought at Home Depot. One day he bought a 5 gallon container of white paint there and it tipped over and spilled in his truck on his way home. He had the audacity to ask if he could ‘borrow’ a hose and clean out the mess right behind our store. We politely said no.”

Susan Miller

Bob’s Hardware Whiting, N.J.

“I had a lady come in and give our floor staff some real grief and drama. One of our staff tipped me off that she was a Home Depot employee and was being rude, hateful and nasty to everybody. She gathered her purchases and proceeded to pay for them at checkout. Our cashier refused to take her cash because it was all stained red. I was called to the front to deal with it. Before arriving at checkout I sent one of our staff out the back door to get the lady's tag number and then proceeded to the front to explain to her that her money looked like it had been exposed to a die pack and I would not accept it. She left in a huff and I promptly called the sheriff’s department. Often wondered if the visit from the sheriff’s department improved her demeanor.”

Dick Beal Retired retailer

Merritt Island, Fla.

How’sBusiness? West

Northeast

2010 sales: Sales were up 4-5% in hardware and lumber, but I also have two floorcovering stores and they’re down 15-20% the past two years. Floorcovering is a luxury item in a down economy.

Margins: Overall margins are down about 0.5%.

Cutting costs: We found an extreme difference in business insurance costs by shopping around. We had been paying $55,000 a year and got that down to $32,000 for last year and it dropped another 10% for 2011 — so we basically cut our insurance cost in half in two years. We’ve taken the position that we’ll provide catastrophic insurance for our employees with a higher deductible and that’s helped level our health care costs over the past three years. I’m also trying to do small things to keep utility costs in check and paying more attention to maintaining equipment.

Steve Olson Build-Rite Do it Center Rawlins, Wy.

2010 sales: We took a beating in our core hardware areas but thanks to strong increases in niches such as clothing and maple sugaring supplies we were able to overcome the deficiencies. We ended up with a positive year.

Competition: There is a competing lumberyard five miles away that caters to pros, so we focus more on homeowners. The nearest shopping center is an hour and a half in one direction and an hour and 15 minutes in the other direction, so we don’t have to worry about the big boxes. We’ve almost evolved into a department store to take care of all the community’s needs.

Cutting costs: We installed a new heating system in our laundromat to replace a 60-year-old system and we installed more energy-efficient lighting. There’s only so much you can do with fixed expenses, and we try to keep everyone busy so it’s not necessary to do seasonal layoffs.

Chris Hamblett Pick & Shovel Newport, Vt.

How’s Business?

2010 sales: Sales were up 6% for our fiscal year, which ended Sept. 30. Our outdoor department has grown by leaps and bounds and we saw a slight uptick in our fireplace business.

2011 forecast: It’s hard to project but my current outlook is for a 4% increase.

Cutting costs: We’re very judicious about staff. We cut one full-time position and are very careful when scheduling our parttimers. We’ve deferred buying office or store equipment unless we can project a profitable return. We’ve looked more closely at sales per square foot, changing our assortments so we have more room for items that have strong growth potential.

Bart Tyler

Kelloggs and Lawrence Hardware Katonah, N.Y.

Midwest

2010 sales: Our store was devastated by a flood in May, but it ended up revitalizing the business in unexpected ways. When we reset the store we greatly expanded our core hardware assortment, and the result was that our walk-in business doubled last year.

2011 initiatives: We used to be an electrical supply house with a little bit of hardware, but now we’re a complete hardware store. We’re installing a sign that promotes the fact we’ve changed the name of the business to True’s Hardware, Electric & Plumbing. In May we’re going to have a big customer appreciation event to thank all our customers for helping us survive and recover from the flood. I’ve got a list of about 250 people that helped us out including a group from the Amish community that came to the area and helped us for nine weeks. We were truly blessed.

Mike True

True’s Hardware, Electric & Plumbing Liberty, Ky.

How’s Business?

South

2010 performance: We’re hanging in there. Just surviving is the new success.

2011 initiatives: We’re trying to identify the right niches to get customers. Equipment rental was too labor intensive, so we’re getting out of that. Guns and ammunition is a

niche that brings in some people, but it takes a lot of time to make a sale. Our space is maxed out and we don’t want to shortchange our core hardware categories.

What’s selling: What has worked out great is selling cedar shavings for pet bedding. We sell a lot of that. Of course we sold a lot of ice melt and shovels this winter, which is not something we can normally depend on in our area.

Brian Heard

Quality Hardware

Yadkinville, N.C.

■

2010 sales: Our fiscal year runs from July to June and we were down about 16%. What concerned us the most was being down over 20% for December and January. We hope that was just weather-related. Contractors have been feeling the pinch. We had some early spring weather that resulted in a good sales week, so we’re hopeful business will pick up.

2011 initiatives: We’re remerchandising the store hoping to come up with some

better adjacencies and adding Craftsman tools. When we remerchandised six years ago it really stimulated sales, so we hope it has a similar impact this time.

Cutting costs: We’re trying to keep a lid on overtime, eliminating almost all the extra time. We’re repairing equipment that we normally would’ve replaced. In our bi-monthly staff meetings I make sure everyone is aware of receiving damaged material so it’s not coming back to us.

Trey Kiper

Kiper Hardware & Lumber Winnsboro, La.

How’s Business?

Winter Storm Round-up:

A relentless series of winter storms in January and February provided a sales bonanza to retailers all across the United States. Here are links to various articles discussing how retailers coped with the run on supplies:

Boston, Mass.: http://tinyurl.com/4lxlzny Munster, Ind.: http://tinyurl.com/4r82xmp

Canfield, Ohio: http://tinyurl.com/4c9fa33 Dayton, Ohio: http://tinyurl.com/4hzpyov

Hagerstown, Md.: http://tinyurl.com/4jpyc5m Naugatuck, Conn.: http://tinyurl.com/4f4o2sb Wilton, Conn.: http://tinyurl.com/4ayrt2f

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From Tom’s Shop Hardware Products Review

By Tom Chasteen

Every year as spring approaches our industry begins to unveil new products, variations of old products and new packaging for existing products. While the evolution of a new product may seem relatively easy, it is anything but. Just ask any product manager. The old saying “build a better mousetrap and the world will beat a path to your door” is a nice thought, but it is often no more than wishful thinking. The real truth is that if you build a better mousetrap and no one knows about it, then no one is going to beat a path anywhere.

Tom Chasteen will be reviewing 3-4 hardware products from “Tom’s Shop” in each issue of the magazine.

So in Tom’s Shop we try to highlight three new products each issue that have real sales potential in independent hardware and home improvement stores. These reviews are not written by company p.r. departments or ad agencies and every product I review in this column I have personally tried and tested. More importantly, we won’t write a review on a product that doesn’t measure up to its billing.

PRODUCT #1: Universal Handsaw Irwin Tools

Irwin has developed a new Universal Handsaw. There are several things that caught my attention when I received the sample. First, the graphics are second to none — very easy to read, safe for customers to handle and the packaging talks to the consumer. It is also easy to display on pegboard or

a shelf. At first when you look at the handsaw with its blue and yellow plastic handle (Irwin colors) you think it’s really not a very serious handsaw, but nothing could be further from the truth. And once you start reading the label

your first impressions quickly begin to change. First, the 11 teeth per inch make for fast cutting, three times faster than regular handsaws, while the special tooth grind makes for a very clean cross cut. The cuts are clean on

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Cave of the Winds decks at Niagara Falls, USA.

From Tom’s Shop

Hardware Products Review

multiple types of material such as wood (I tried the sample on pine, oak and teak), laminates such as flooring and PVC pipe (I cut up to 3" PVC pipe). The other thing I noticed is that it’s very difficult to bind the saw, which is a part of the design of the tooth set.

There are several other interesting features worth noting. The bottom of the handle is flush with the bottom of the saw, so you can make a flush cut or get into a tight space. The blade is short, 15", which also makes it easy to use in tight places and to carry (overall length is 22"). Anyone who has ever been around a craftsman using a handsaw has seen them use the back of the saw as a straight edge. Irwin also gives you

a 45-degree edge on the top of the saw blade, which is very convenient. The Irwin Universal Handsaw retails in the $17.99 to $19.99 price range, which is acceptable to the hardware consumer.

In short, next time you go to your wholesaler show or have the Irwin salesman stop in your store, this is a product you should take a look at. It’s anything but a toy. Go to www.irwin.com or call 1-800-GO-IRWIN.

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■ Cat 5 has developed a simple and easy way for hardware stores to sell hurricane protection.

■ Cat 5 provides a complete support program along with continuing training that provides you and your sale associates with the confidence to sell this type of product.

■ You can offer complete packages to DIY customers and also offer professionally installed hurricane protection.

■ To date, average retail sales tickets are around $1,100. One reason this program is so successful is our wholesale pricing allows dealers to be extremely competitive with the big boxes. Call Richard Brendle at 941-752-4692 or e-mail us at cat5lindsey@verizon.net for a complete list of products and additional information. Web site www.cat5hp.com.

PRODUCT #2: LED Lights

Fulcrum Products

Fulcrum is an Oregon company that focuses on portable LED lights. Yes, I know there are a bunch of companies and importers offering every imaginable size, color and shape of LED lights. However, Fulcrum is a little different, starting with their President and owner, Dan Amundson, who tries to focus on form and function.

I recently spent some time in their booth and spoke with Dan about the

evolution of LEDs. There is no question that LEDs are the future if we are serious about product longevity, cost and efficiency. However, LEDs have several challenges manufacturers have to overcome. First, it is difficult to get uniform light color from one bulb to the next and LED lights typically are more of a spot than a flood light source. Fulcrum has been able to address both issues very well. In addition, Dan has developed a line of product that is unobtrusive, unlike some of the other products available today. Their patio

table light looks very stylish on the patio table in the daytime and gives out an incredible amount of light at night.

I also tested two other Fulcrum products. Their Stick-On lights come packaged each or in threes. They take three AAA batteries and can either be stuck in place using the

double-faced tape that is included or can be screwed on using the attached backing plate. These lights are a little larger than a standard “hockey puck” light but have a much nicer appearance and are perfect for those places where you need some light

PRODUCT #3:

Sheila Shine

Sheila Shine Inc.

My last product is Sheila Shine. This is a small company located in Miami, Fla., that was started in 1974 by Bill Wallach. In my opinion, Sheila Shine is the best stainless steel cleaner and polish on the market. If you know about it, you know what I mean. The company has a huge presence in the commercial cleaning and hotel industries. Chances are when you step into an elevator with shiny stainless steel doors they are cleaned, polished and protected with this product. Sheila Shine is great for stainless steel appliances and barbecue grills but it also works just as well on chrome and aluminum. I have heard of

but don’t want to run electricity there.

Finally, the Multiflex Task Light is great for reading a book, using on a desk or even in a work area. It comes with a spring clamp and has two light settings. You will notice the attention to form and function as

people using it on leather and wood furniture to bring back the luster. I even had one customer tell me he used it on his tires after he washed his car. I’ve always used it on my stainless and aluminum boat rails to stop pitting and corrosion and to maintain a nice shine. I also used it once to bring back the luster to an old fiberglass boat hull.

If you have a housewares department or an automotive/marine department, you will want to add this product to your assortment. Once your customer tries it, they will be hooked. And the best thing about Sheila Shine is it’s a consumable, so your customers will keep coming back for more. Sheila Shine comes in four retail sizes: 2 oz. aerosol, 10 oz. aerosol, quart can and gallon can.

the Multiflex Task Light would look fine on your desk or countertop. The next time you think all LEDs are the same, take a minute and check out the Fulcrum line of products at your wholesaler show to see the difference. Go to www.fulcrumproducts.com or call 503-274-1227.

Their top two sellers are the 10 oz. aerosol and the gallon can. Sheila Shine is available through most hardware wholesalers either in their warehouse or by drop ship. You can also go to their website, www.sheilashineinc.com or call 1-800-633-0481 to get more information.

If you know of a great new product that has potential for hardware retailers and would like us to review it, let me know at 305-852-6126 or Tom@thehardwareconnection.com.

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Unique Niches to Build Traffic

By Chris Jensen

When veterinarian Jeff Powers first opened a hardware store to go with his vet clinic someone told him, “You are going to have someone’s dog jump through a window and you are going to get to sew up the dog and repair the window.” That has already happened twice, he reports.

Powers has somewhat of a captive audience operating Powers Do it Best Hardware on Beaver Island, Mich., which has 400 year-round residents (and 250 pets) and can only be reached by ferry. Business picks up considerably during the summer, when Powers offers the only place on the island to buy hardware products or get your pet checked out.

Few retailers have the ability to offer veterinary services — Powers is a licensed, practicing vet — but that doesn’t mean they can’t develop a different niche that meets the needs of their market. Without niche departments, hardware dealers are forced to rely on smallticket sales when people need a few screws or to repair their toilet.

Read on to get ideas on unique niches that can help attract customers

Jeff Powers takes care of his dog Ella, along with any other pets requiring attention at the vetclinicheoperatesinconjunctionwithPowers Do it Best Hardware on Beaver Island, Mich.

year-round. You should also give consideration to more traditional niches that make sense for hardware stores and lumbeyards, such as rental, outdoor power equipment, outdoor living, grills, wild bird products and garage organization.

Powers provides vet services on an as-needed basis — he has even treated a dog on a yacht — but his real opportunity comes from selling pet food, pet toys, vet medicine and flea products. “I’m looking to expand my vet facility while continuing to discover more specialty pet products I can sell,” he says.

Actually, Powers isn’t the only hardware retailer to offer vet services. So does Faulkton Hardware Hank in Faulkton, S.D., in addition to selling RV supplies, tack supplies, animal health products and offering computer and bike repair.

It was an unusual circumstance that delivered traffic-building niches to Hometown Paint and Hardware in Natick, Mass. Owner Stephen Weinstein also owned a nearby building that was destroyed by fire in 2008, leaving his business tenants without a place to operate. So Weinstein offered temporary space in his hardware store to a cobbler and a tailor. Three years later, the arrangement is still working out great for everyone and the latest addition is a leather goods maker. Hometown Paint and Hardware also operates a food stand with hot dogs, popcorn and ice cream and sells toys and games, greeting cards, school supplies, gift wrap and craft supplies. Now that’s a one-stop shop.

Once a dealer establishes his store as a destination for one niche, he often finds it’s not difficult to identify other strong niches to give customers even more reasons to shop there. The trick is to make sure you

don’t sacrifice space for the core categories that define a hardware store such as plumbing, electrical and paint.

Taking a Shot

Matt Fonte, who operates Crystal Park Hardware & Firearms in Canton, Ohio, has discovered the traffic-building advantages of selling firearms and ammunition. “We’re glad we got into this, because these days we’re selling more firearms than hardware,” he says.

The store specializes in personal protection for the home and job, which entails not only handguns, holsters and gun-cleaning products but also an expanded selection of hard hats, respirators and door locks. Crystal Park Hardware was accepted into the Glock Blue Label program, so it can offer discounts to military and law enforcement personnel.

Margins are not great in firearms — just 10-20 percent — but the average transaction size ranges from $500 to $600 compared to $15 for hardware, plus Fonte points out that gun sales are steady throughout the year. He continues

Crystal Park Hardware and Firearms in Canton, Ohio, has found a niche selling personal protection products for the home and job.

to expand his customer base, attracting customers from as far away as Cincinnati (200 miles away).

Fonte turned his backroom into a 500square-foot gun showroom with secure doors and video surveillance and has not had any problems with break-ins. A bigger issue is the fact the government maintains a lot more oversight over gun sales compared to hardware sales. “It’s important to stay on top of all the paperwork for when you get audited,” he says. “We’re just looking to outfit as many law-abiding citizens as possible.”

Tapping a Lucrative Niche

Chris Hamblett is president of Pick & Shovel in Newport, Vt., which features a pet store, major appliances, clothing, laundromat and seasonal ice cream stand. However, the store’s biggest niche is maple sugaring supplies, which is big business in that part of the country. They cater to the backyard hobbyists who are tapping just a few trees on up to the large commercial operations with equipment worth a quarter of a million

Locals and tourists use the laundromat at Pick & Shovel and then go next door to shop for hardware.

dollars. It’s all on display in a separate building that used to store doors and pet food. “People will drive 100 miles to get what they need,” says Hamblett, who adds that they do on-site consultations.

Maple sugaring supplies account for 12-13 percent of their annual gross sales, according to Hamblett, who says the only slow months for that business are June and July, which is when seasonal sales pick up from tourists. The laundromat, which attracts locals and tourists, has its own entrance. Folks put their clothes in the washer and then walk next door to shop

Pick & Shovel in Newport, Vt., captures 12-13 percent of store sales from maple sugaring supplies.

The 2,500-square-foot pet shop at Pick & Shovel features fish, lizards, spiders, cats and other small pets.

the hardware store. “Anything you can do to build traffic pays off,” he says.

With the nearest shopping center more than an hour away in any direction, Pick & Shovel has evolved into more of a department store to keep people buying local. The recent addition of Carhartt clothing and Chippewa boots provided a sales boost to help offset decreases in core hardware categories.

Pick & Shovel’s 2,500-square-foot pet shop, which has been in business since the early 1980s, has a dedicated staff of five and sells fish, lizards, cats, spiders and other small pets. Selling a pet leads to all kinds of return trips to purchase food, tanks and related accessories, which is the sign of a good niche.

Something for the Ladies

Godwin Hardware in Grand Rapids, Mich., stumbled onto something that

brings in the ladies and generates a lot of buzz. The store held a workshop in November that showed how to make jewelry out of common hardware items like nuts, washers and cotter pins. They got 200 ladies to RSVP and had about 150 show up for the workshop.

Irene Wierenga, whose husband Pete operates the store, had seen an online video about hardware jewelry and mentioned it to Juliette Cowall, marketing director. Cowall took a stab at creating a piece of hardware jewelry and surprised Irene with it, and that got the ball rolling.

Here is an example of the type of hardware jewelry customers were making at Godwin Hardware.

Since they were expecting a large turnout, the store held four demonstrations throughout the day and made sure every employee was on hand to help out. Some were cutting cable for the necklaces’ chain while others were helping customers find just the right hardware pieces from the “80-foot Wall of Wonder,” which showcases the store’s massive assortment of nuts, washers, chrome spacers and other oddball fasteners.

“We had a lot of crafters show up and they’ll keep coming back for product but won’t need to take the workshop again,” says Cowall, who adds they have hosted three or four smaller groups since the initial workshop.

A full-page article in the newspaper provided free publicity, which will help attract new customers to workshops planned for Valentine’s Day and Mother’s Day. Godwin Hardware promotes the classes on its website and has posted photos on its Facebook page.

“I wear my hardware jewelry all the time and I’m always getting comments about it. I did one with washers chained together with embroidery thread,” Cowall says. “Most things are under $5 and take less than five minutes to make. People

Yarn and craft supplies comprise another niche department at Old Forge Hardware.

have so much fun with it and it’s fun for the employees too.”

Boosting Sales in Slow Period

Winters are long and cold in Wyoming, which does not do wonders for hardware sales. Steve Olson, who operates BuildRite Do it Center in Rawlins, Wyo., says sales from October to February are 25-30 percent of the volume he does in the summer months. “We’re always looking for ways to strengthen sales during our slow period,” he says.

Olson has been fortunate to discover two niches that keep customers coming in during the long winter. He has been selling Carhartt clothing since 2002 and has been a Radio Shack franchise since 2003, helping provide products that were not otherwise available in the community.

It makes sense for dealers to offer categories such as toys if the products are not available elsewhere locally.

The book department at Old Forge Hardware in Old Forge, N.Y., contains best-sellers and books of regional interest.

Radio Shack has proved to be the ideal niche category for his situation, because the best sales period for that department is the fourth quarter. Not only does it account for 30-40 percent of winter sales, it enables Olson to maintain staffing during the winter months.

His Radio Shack sales continue to grow and the 1,200-square-foot department is now generating 15 times what he used to get from rental. “There is a bit of

Hartville Hardware is one of many retailers who have found success selling Carhartt clothing.

a learning curve with electronics, particularly since technology changes so rapidly,” says Olson,who says margins average 22-24 percent. A good chunk of the business comes from selling cell phones and activating the service.

Selling electronics requires having employees who know what they are talking about, but is also a category where younger employees can excel. Models change every year, Olson points out, so dealers need to make sure they sell through their inventory before Radio Shack starts dropping the price on discontinued models.

Carhartt normally produces a gross margin of 33-35 percent, but Olson generates a 29-30 percent margin to stay competitive. About 800 square feet are devoted to the category.

A nice feature of Carhartt is the company’s new industrial line, Olson points out, because there is a fire rating requirement for fire-resistant clothing in an industrial setting. “The flame suit is a big deal if you’re in the right area. It sells for $55-58 and we have industrial sites nearby where workers have to wear it,” he says.

Style and color choices make clothing challenging, but Olson handles a lot of special orders. He tried selling women’s clothing, but that didn’t pan out. Since taking on the two niches, sales have grown 400 percent in Carhartt and Radio Shack has done even better with twice the gross. The two categories account for 15 percent of Olson’stotal sales for the year. “It brings in customers, so that makes me happy,” he says.

Since the store is located in the Adirondacks, Old Forge Hardware offers a wide selection of camping gear.

Other Niches to Consider

RK Miles, Manchester Center, Vt. — Art supplies.

Bill’s Ace Hardware, Martinez, Calif. — Operates a standalone store called Ace Truckbox Center that sells job-site and truck boxes, truck accessories, hitches, liquid transfer tanks and truck racks. • www.acetruckbox.com

Essex Home Hardware, Essex, Ontario — Scrapbooking supplies, toys, floral shop, bottled water distillery.

Backlin Hardware, Mokena, Ill. — Yarn and needlecraft supplies.

Brewster Drug True Value, Brewster, Wash. — Full pharmacy.

Kortendick Ace Hardware, Racine, Wis. — Bait and tackle, underground sprinkler systems and dog fencing systems.

Mitchell Hardware, New Bern, N.C. — Pottery, enamel ware, cast-iron cookware, pecans and accessories for bird watching.

Graafschap Hardware, Holland, Mich. — Rifles, handguns and ammunition.

Guse Hardware, Minneapolis, Minn. — Also operates the adjacent Guse Green Grocer, which specializes in locally sourced and organic foods.

Gust Ace Hardware, Longmont, Colo. — Postal station including rental of post office boxes.

Wilke-Donovan’s True Value, Kearney, Neb. — Batteries Plus.

Quality Ace Hardware, Durand, Mich. — Inkjet cartridge refilling.

Walker Home Center, Walker, Minn. — Docks, Radio Shack, wild bird, appliances and greenhouse.

Davis Ace Hardware, Davis, Calif. — Sells and installs solar photovoltaic systems.

Douglas Hardware Hank, Douglas, Wy. — Hunting and fishing licenses, Interstate Battery Power Center, giftware, clothing, ranch and pet.

Yoder’s Shipshewana Hardware, Shipshewana, Ind. — Glassware, hand-made furniture, graniteware, crockery and kitchen gadgets.

John Austin & Sons Ltd., Kinmount, Ontario — Custom-built docks and kayaks.

Backlin’s Hardware, Mokena, Ill. — Needlecraft supplies and hand-knitted items.

Old Forge Hardware, Old Forge, N.Y. — Books, toys, clothing, camping and fishing gear, yarn, gourmet food and hand-crafted furniture.

Brown’s Do it Center, Goodrich, Mich. — Archery shop with shooting range, paintball supplies and Goodrich Storage Facility.

Dunsmuir Hardware, Dunsmuir, Calif. — Gold prospecting supplies, model trains, music CDs, blue jeans, giftware, stationery and fishing gear.

Mac’s Hardware, Minot, N.D. — Sells 250 varieties of nostalgic soda pop.

American Eagle Superstore, Lansing, Mich. — Fireworks.

Kraus Department Store PRO Hardware, Erie, Pa. — Lamp shades, baby bonnets, Catholic communion dresses and post office.

Crile Road Hardware, Painesville, Ohio — ATV sales and service.

Hardman Supply Company, Spencer, W.Va. — Beekeeping supplies.

Fatica Hardware, Richmond Heights, Ohio — Sells and installs in-ground sprinkler and micro-irrigation systems.

Hartville Hardware, Hartville, Ohio — Christmas shop, clothing and footwear, John Deere shop, Hartville MarketPlace (110 vendors inside plus 20-acre flea market outside), salad dressing manufacturing, Hartville Collectibles (giftware, home decor, ladies apparel, art, jewelry), Hartville Kitchen (restaurant, bakery, candy shop, banquet facility). www.hartvillehardware.com

Karp’s Hardware, East Northport, N.Y. — Truck rental, homebrew and winemaking supplies.

Kelseyville Lumber, Kelseyville, Calif. — Paintball supplies.

Cornell’s True Value, Eastchester, N.Y. — Homebrew and winemaking supplies, Horseman’s Corner equestrian shop.

Ace Hardware and Snake River Outdoor Sports, Pocatello, Idaho — Apparel, camping, hunting, fishing, footwear, sporting goods, beer and wine.

Joiner’s Discount Building Supply, Carthage, Mo. — Jewelry and school uniforms.

Keck Do it Best Hardware, Trenton, Mich. — Hobby trains, planes and cars.

Taylor Do it Best Building Supply, Eastpoint, Fla. — Saltwater sporting, marine and beach products; hurricane shutter installation.

Slanesville Store, Slanesville, W. Va. — Appliances, grocery, deli and pizza, beauty shop, gas station and video rental.

Southaven Supply, Southaven, Miss. — Operates Jewelry For Your Home (furniture, lamps, handbags and jewelry), The Outhouse (home décor and 100 different sinks and vanities), The Patio (patio sets, fountains and water features) and offers 1,200 different cabinet knobs in the hardware store.

Backstage Hardware & Theatre Supply, Boston, Mass. — Theatre and stage supplies; marine and fishing equipment and supplies. • www.backstagehardware.com

The Henry Bierce Company, Tallmadge, Ohio — Outdoor kitchens; brick, cultured stone and mortar samples on display in The Brick Room.

Wise Do it Best Hardware, St. Clair, Mich. — Tropical and freshwater fish and supplies.

Hudson Do it Best Hardware, Hudson, Mich. — Marine products, grocery store, pizza franchise, pharmacy, bakery, tanning salon and catering business.

Kelton’s Hardware and Pet, Murfreesboro, Tenn. — High-end pet products, horse feed, commercial mowers, self-storage and self-serve dog wash.

Spring Glen Hardware, Hamden, Conn. — Shoe repair, fishing line, pie servers and poultry lacers.

Carvel Hardware, De Kalb Junction, N.Y. — Custom-engraved plaques and trophies.

PROFILE Dealer

Bart and Diana Tyler

Kelloggs & Lawrence

Unearthing

the Right Niches

Bart and Diana Tyler have found success selling green products in their small, old-fashioned hardware store, Kelloggs & Lawrence in Katonah, N.Y.

Bart and Diana Tyler bought Kelloggs & Lawrence in 1996, but the business dates back to at least 1887. Jeff Kellogg, the great grandson of founder Henry Kellogg, heads up purchasing and receiving as the fourth generation of the family to work in the business. Bart Tyler shared insights into how an old-fashioned hardware store can succeed by focusing on strong niches and exceptional customer service.

Wholesaler: Do it Best Corp.

Salesfloor square footage Under 6,000.

Number of employees: 10, with 3 full time.

Top core categories: We run our biggest numbers in housewares, electrical, plumbing and lawn and garden.

Most successful niches: Outdoor recreation, fireplace accessories, mailbox systems and workwear.

Katonah, N.Y.

What’s the key to your success with fireplaces? That’s been growing for us since we started it 14 years ago. We’ve become a regional destination by carrying mid to high-end accessories. Most stores have a rudimentary, lowend assortment, but we don’t sell anything low end. My wife and I have an affinity for fireplaces. When we bought the store we thought having a decorative cast-iron stove on the salesfloor would be nice for ambiance, playing up a theme of 19th century antiquities. We got so many inquiries about it we decided to start selling the category. We continue to grow the fireplace accessories and doors business — we only install custom fireplace doors.

Haven’t you taken a similar approach with mailboxes? We’ve veered into lifestyle mailboxes, going away from the $39 cedar post and $15 steel mailbox. We sell more premium mailbox systems, from $400-600. No one carries this stuff, either at retail or among the wholesalers, but the need is there in certain communities. If you

drive around an upscale market you’ll only find highend mailboxes put in by builders.

How did you develop such a strong niche in outdoor recreation? My wife and I are avid outdoorsmen. We travel and hike and do volunteer trips with a sense of adventure, and we were always looking for apparel products that were safe and comfortable. When a nearby outdoor store sold we thought there could be an opportunity. We contacted the former owners and they were so thrilled they took us around to shows to help us get started. The husband now works for us part time. Our outdoor department occupies 50% of the main floor and 25% of the overall space in the store, and we’ve become known as the only store in town selling these products.

How does the outdoor business differ from hardware sales? Outdoor products offer much higher average sale, higher margin and a high propensity for impulse purchase. We have staff members who are dedicated to the outdoor department on key

days, but customers often don’t require much service to make their purchases. So many products have become commoditized that customers’ perceptions of the value of hard goods have come down. That’s not been the case with apparel. People have a different way of looking at value in categories like apparel. I had a woman who balked at spending $20 for a lock but she ended up spending $80 on apparel.

The outdoor recreation department features tents, backpacks and other gear related to hiking and camping.

What are some of the off-beat products that you sell? We do a strong fourth quarter business in giftware by specializing in stocking stuffers and practical/novelty gifts in the $1040 range. We sell everything from remote-control helicopters and head

scratchers to microwavable neck wraps. We’re not looking to peddle cheap stuff but fill a need for people.

How do you merchandise and sell green products? Green is mostly people making choices to buy products that promote a better alternative. We found green product displays don’t do as good as having green choices displayed next to traditional products. It’s hard for people to make lifestyle choices no matter their intentions, but we’ve had success with composters, rain barrels, push mowers and laundry-drying apparatus. There continue to be all kinds of opportunity in green lighting.

How much does price affect customers’ purchasing decisions when shopping for green products? In cleaning and gardening chemicals they won’t spend much more, maybe 10-15%. They’ll pay a little more in lighting if they see the payback spelled out on the package. How do you ensure your store’s customer service stands out? My wife and I set the tone for that. When we get new hires we have

to indoctrinate them to how we do customer service. It’s our goal to meet or exceed our customers’ expectations at all times. It’s far better to keep customers happy even if it costs us money, so we have a very liberal return policy. My model on service has always been L.L. Bean — we’ll take it back with no questions asked. If I give people a hard time then I’m no different than the big stores.

Are there formal ways of developing that customer service mentality? We brought home an idea from a seminar and started having employees carry around a pad with Lost Sale Tickets. Anytime they got a product suggestion from a customer they would jot it down. If you see a number of requests for something you know it has a chance to succeed. Assortments tend to be vendor-driven, but customers may not agree. My customers have been my most reliable source for new products. When you find ways to listen to your customers the benefits are phenomenal. We held a customer panel

with some of our customers for 90 minutes and let them know we were open to all their suggestions. We gave them a $50 gift certificate and got some priceless feedback. How do you get customers to buy local? Even when you see customers committed to buying local, their idea of shopping local is about being frugal. The average customer shops here when it’s relatively inexpensive and convenient for them. They are willing to go outside the community to save on bigger tickets. Walmart and the big boxes have changed shopping habits so that people do local on the low end. That’s why it’s so important to offer unique products and betterquality products. We have engendered a lot of customer relationships with our community involvement and by staying visible in the community, carrying on the tradition started by the Kellogg family. We started a community service center in town and a tsunami relief project and so on.

Where Relationships Are Formed Hardware Conference Brings Dealers Together

The long, hard winter may have been good for business, but it’s got many dealers thinking of some fun in the sun. Here is a chance to bring your whole family to a five-star resort right on the Gulf of Mexico with three miles of pristine white beaches. The 2011 Hardware Conference is set for September 9-11 at the Marco Island Marriott in Marco Island, Fla. Start making plans to attend an uplifting event that can have a positive impact on your business.

Two cocktail party receptions are held to give dealers plenty of time to socialize with fellow attendees.

Dealer seminars address real issues of concern to independent retailers.

For the past 23 years, The Hardware Conference has provided an opportunity for independent dealers to get together and share ideas in a relaxing environment. Whether you buy from Ace, True Value, Do it Best, Orgill or another wholesaler, this is an event that is not to be missed. Not only are lasting friendships made, but attendees come away re-energized and filled with new ideas to take back to their stores.

Tom and Dale Chasteen, who operate Tavernier Hardware in the Florida Keys, have been putting on the Conference since 1988. “Our theme has always been an industry event ‘Where Relationships are Formed,’ because that’s the most important part of it for us. It’s an opportunity to see all the industry friends we’ve made through the years,” Tom says.

Leading vendors participate in the Conference with tabletop booths

showcasing their latest new products. Dealers also have the opportunity to engage in informal conversations with manufacturers without the pressure of buying. Another popular feature of the event is the open dialogue sessions, where dealers join vendors and wholesaler representatives in a frank discussion of industry topics of concern to all.

“We always look forward to the Conference,” said Bob Silverman of KLI Supply in Key Largo, Fla., who has attended the past nine years with his wife, Jacqueline. “We’ve definitely developed some relationships with vendors and other dealers over the years. It’s always a lot of fun.”

Paul Dupont of Orgill said, “This event truly lives up to its billing as a place ‘Where Relationships are Formed.’ I always come away with a better understanding of the challenges that hardlines retailers face by attending

The Hardware Conference schedule includes plenty of time to enjoy water sports, beach activities and golfing.

the Open Dialogue sessions. It is truly a one-of-a-kind, can’t miss event.”

The Conference includes two breakfasts, two cocktail party receptions and two sit-down dinners, giving dealers plenty of opportunity to mingle casually with fellow dealers. Ace, True Value and Do it Best all hold luncheons for their members, and Orgill also participates in the event. It is designed for the whole family, with plenty of free time for fun activities such as tennis, golf, sailing and shelling.

The Activant-Eagle Users Group Conference is again slated to be a two-day session preceding the 2011 Hardware Conference, beginning at 1 p.m. on September 7.

For more information, call Tom or Dale at (305) 853-0049 or go to www.thehardwareconference.com.

Nestled on three miles of pristine Southwest Florida beaches, the Marco Island Marriott Beach Resort Golf Club and Spa is the perfect destination to take the family for the annual Hardware Conference.

BUYER OF THE YEAR

Nominate Your Favorite Wholesale Buyer

Houston Bowlin received his 2010 Buyer of the Year Award during HouseHasson’s February Dealer Market in Nashville.

MAKE YOUR 2011 NOMINATION...

2010 Buyer of the Year Charlie Crittenden (center), merchandise managerelectrical for Ace Hardware Corp., is joined by Pete Principe (right), Ace merchandise manager; and Tom Chasteen, sales director of The Hardware Connection.

The Hardware Connection started a new tradition in 2010 by honoring three buyers — Houston Bowlin of HouseHasson Hardware, Charlie Crittenden of Ace Hardware Corp. and Jeff Kammer of True Value Co. — as Buyers of the Year. Each honoree received a personalized trophy to commemorate their achievement.

Sales Director Tom Chasteen noted the three honorees were very appreciative and humbled by the award. “This was an overdue honor for such an indispensable part of the supply chain.

2010 Buyer of the Year Jeff Kammer (center), global product merchant-hardware and automotive for True Value Co., is joined by Bob Young (right), True Value division vice president of merchandising; and Tom Chasteen, sales director of The Hardware Connection.

I’m glad that we are able to give buyers the recognition they deserve,” he says.

The magazine is now accepting nominations for the 2011 Buyer of the Year Award. The winners will be announced during the 2011 Hardware Conference in Marco Island, Fla., in September. Any independent hardware retailer can nominate a buyer from any wholesaler from whom they purchase products.

To make your nominations, simply e-mail your nominee’s name and the wholesaler they work for to tom@thehardwareconnection.com.

Bottom Line

Are Your Retails TOO HIGH?

By John Franklin

When you set retail prices in your store your goal is to get as much as you can without customer resistance. As you raise retails, how do you know when you get too high? Here is a neat trick to locate excessive retails.

Every item in your store is subject to repeated buying decisions by your customers as they shop your store. If sales appear sporadic it may be the item is not needed by your customer, but often it may just be that your price is high.

How do you know? Your customers will actually tell you. If an item sells as poorly at a reduced sale price as it does at regular price, it indicates the customers don’t want the item. However, if an item sells poorly at a regular retail price but sells very well when promoted at a much lower price, you have a clear

indication that customers do want the item, just not at your regular price.

How do you find high-priced items in your store? You compare the system expected margin at regular price with the actual YTD margin. If the actual margin is more than 5 percent lower than the expected margin, your price is possibly too high.

Why does this work? It works because the system sales history can show a desire for a product based on price. If all sales are sold at close to or at the regular price, your YTD margin will be very close to the system

expected or desired margin. This shows that your customers have a high comfort level at that price. However, if there is a big difference between the expected margin and the actual margin, you have a price image problem that needs to be addressed.

Here is an actual example of what can happen because of an excessive retail price. This is a real-world example with actual sales data for a corn broom that sold poorly in our store for several years at a retail that was just excessive. In the table below we see the item costs $3.15 and started at $8.99 regular retail. It was promoted in a special sale at a low retail of $4.00 in October for several years running.

The graph clearly shows how our customers felt about the $8.99 retail. You can see there was a high resistance to the regular price of $8.99 all year long, but monthly unit sales jumped from 0 to 122 when the retail was dropped to the $4.00 level.

The expected or desired margin for this item is 64.3%, based on the regular retail of $8.99. Selling 12 at the regular price and 122 at the promotional price resulted in a YTD margin of 29.16%. The actual margin is a whopping 35.13% lower than the expected or desired margin, so we took a good look at the price. We found we screwed up. This corn broom is a commodity item that wears out and eventually needs to be replaced and therefore was purchased frequently by our customers. Because they shopped it often, they knew what the reasonable price was.

We had incorrectly allowed this item to be treated as blind rather than competitive. We did a competitive shop and reset it to $5.19 retail. Was this the right thing to do?

The graph below is an actual history of this same item the following year after we reduced the retail to $5.19. At this new lower retail the customers made many more purchases at the regular price and because they now owned the broom, did not need to buy it again when it went on sale.

Second Year –MTD sales showing more regular price and less promotional price

regular retail to a comfortable level, the customers will make normal purchases at the higher normal margin and then, coincidently, when the item goes on sale, you will not sell as many because they already have one. In simple terms, a high retail makes customers wait for a sale or just not make the purchase. A reasonable retail will promote a steady sales level that is more profitable for the store.

How do you use this idea to determine if your retails are too high? Run a report for all items in the system with sales >0 for the year and compare the desired or expected margin to the actual YTD margin. If there is more than a 5 percent difference between the two numbers, you should investigate. You may find the items that make you look expensive without any benefit. Happy hunting.

We subsequently sold 144 the following year: 79 at the new regular price of $5.19 and 62 at the sale price of $4.00. The first year we made $173.78 in gross margin dollars. The second year we made $213.86 in gross margin dollars, a 23 percent increase. It is true that sometimes you can make more money if you lower the retail. And the added benefit was that this item was no longer adding to our customer’s perception that we were overpriced.

In conclusion, if your customers choose to make high-volume purchases only when an item is heavily reduced for a promotion, it is a clear sign that the regular retail is too high. If you reduce your

John Franklin has nearly 40 years experience in hardware retailing, most recently as merchandise manager at Williams Lumber & Home Centers in upstate New York. He is available for retail consulting or you can contact him with questions or feedback at john@thehardwareconnection.com.

What’s the Latest Buzz on Hardlines Digest?

By John Fix III

Winter has taken hold of much of the country and the busy holiday season is behind us, so that means more time for dealers to spend posting messages on the Hardlines Digest. As usual, the topics have been far ranging, covering many aspects of hardware and home center retailing.

Flooring

With the snow, ice and salt being tracked into many stores, dealers exchanged ideas about the best flooring materials for hardware stores.

Bob Brame of Cadiz Hardware weighed in with his thoughts: “We put in the vinyl hardwood look 2 ½" strips on a 45-degree angle in our paint area about 5-6 years ago. It is so hard to keep looking good, I’m looking at it right now and am ashamed of how it looks. We can run the machine over our tile and keep it looking OK, but for some reason the same process on the hardwood-looking product is poor. It doesn’t take a shine like I would like to see and shows dirt bad. I would not do it again. Was in a factory the other day that had the stainedconcrete and it was fantastic and easy to take care of. You could virtually see yourself in the floor and it wasn’t slick.”

Steve Sayers of Sayers Ace Hardware uses Alloc laminate in his store. “Four years ago we bought 2,500

Industry ISSUES

square feet of Alloc laminate at an Ace show and installed it in our front end and gift department. It looks as good as the day it was installed and we only use a dust mop or a damp mop on spills, mud, etc. I would not use an inexpensive laminate, however. The rest of the store is old vinyl tile.”

Karla Robson from Slaven’s True Value uses both carpet and wood laminate in her store. “We did a combination of floating ‘wood’ laminate and carpet. The wood laminate looks pretty good but takes some work to keep that way, so we have a cleaning service come in each night. Our floor was too old to do tile. We have the laminate in all the high-traffic aisles and carpet everywhere else. You have to be careful of rocks on the laminate, as it will scratch. And we are noticing after 3 years of having it down that it is wearing where people stand at our front desk for checking out. It is a far improvement from the old carpet we used to have everywhere.”

Made In the USA

Selling and promoting Americanmade products is a recurring discussion at trade shows and on Hardlines as well. Joe from Karman Hardware suggested Ivy Classic. “The majority of Ivy Classic tool accessories are over 50% American made, with good pricing.” Casey Mathews from Wooster

Brush chimed in by pointing out, “In 2011, The Wooster Brush Company celebrates 160 years of manufacturing paint applicators and accessories in Wooster, Ohio, USA!”

Pat from Kaba/Ilco added that “over 99% of the key blanks we sell are manufactured in our plant in Rocky Mount, N.C. Ilco is very proud to say ‘Made in the USA’ with over 550 people in our facility there.”

Aaron Hagen from M&D Supply suggested, “Bully Tools has been a good line for us, and they supplied us with banners to hang in the store stressing the Made in USA point for our customers.”

Donna at Waters True Value shared this: “Another good company, especially for snow shovels and gardening tools, is Yeoman & Company located in Monticello, Iowa.”

Chris Henkle of Henkle Ace had some ideas about promoting Americanmade products on his website and wishes he had some in-store merchandising aids. “So glad you brought this subject up. We have been working on this for some time. Supposedly Walmart tried a Buy USA promotion and it didn't go over very well — probably because they don't have many made in USA products. We have started a page on our website listing the companies and would love to have some shelf talkers made to identify the companies. I think this is another area where (independent) stores could differentiate — and subsequently advertise the fact — that we purchase American-made where possible. There is a group of customers that do care.”

To raise consumer awareness Amy Earls of Page Hardware in Guilford, Conn., found a creative way to identify American-made products in her store. “We had so many requests in our housewares department for products not made in China that we made little flags for the Connecticut, American and European-made products. We downloaded flags from the Internet, sized them to fit on a bin label backer and stuck them right on the shelves next to the bin labels. Then we posted several laminated signs around the department with all the different country flags, to increase awareness and to translate for customers who are not familiar with the flags of Hungary or Sweden (or even the state). Posting small American flags and/or state flags for locally sourced products is a simple way for customers to identify products that are made in the USA and to show that carrying them is important to you.”

From The Archives

I decided to dig back into Hardlines a bit for an older discussion. One of the great things about Hardlines Digest is you can search prior message postings for the answer to your question. There are 10 years of messages archived on the Hardlines server, and this discussion from 2004 is as relevant today as it was back then.

Andy from Cameron's Hardware and Supply asked, “Anyone out there doing order point calculation? Any suggestions before letting the system calculate them?” Bob Brame (one of our most active members…thanks Bob!) posted the following detailed response.

“First, you must have good data. This is the most important step. Is your system functioning properly and is everything being rung up properly? All SKUs linked properly? Good sales data is the key to good order points and good order points and weeks of stock on hand is the keys to good orders.

Set popularity in manners that you deem as important and sound in business practices.

We set three factors: Popularity, Sales Dollars and GP$$. Then we rank on all three factors.

We then run order points based on popularity before each order and set different order points based on weeks of stock for A, B, C and D items. We keep 6 weeks of product on hand for A, 4 weeks of B, 2.5 weeks of C and 2 weeks of D. At different times of the year, we may change slightly, but this is the majority.

When we run the RSO, we look at items and check the other factors that cause seasonal variations. Everyone sets their % different; some use all 13 periods, some use from 3 to 6 periods. We utilize four months: prior month, this month, this month last year and next month last year. We base this month on the % of the month x 25%, and then we split the balance up between the other three months in a similar relationship.”

J. Johnson from Johnson’s Home & Garden had a different method of

setting the order points. “I have yet to find two people who can agree on one method of order point calculation. You have to do what works for you. This is what has worked for me for many years. I rank the store by department by unit sales at the beginning of every month. I run order point calculations on the 7th, 14th, 21st and 28th of every month. I use these dates so I can have these reports in a queue. My weighting strategy is to both look forward 1-2 months (prior year), look back 1-1.5 months (current year) and give minimal weight to all other months as a leveling factor.

Stocking strategy:

A: 4 weeks

C: 8 weeks

B: 5 weeks

D: 12 weeks

This may seem counterintuitive, but because of the volatility of the slower sellers, they need a greater number of weeks in order to get an order point >0. This strategy gets me 3 turns a year, which suits me just fine. I have plenty of stock. I don't lose many sales, and my sales keep growing even with new boxes moving into the area.”

There were 28 messages posted to this particular discussion about order points, and although I’d like to include them all I thought this sample would be a teaser to encourage you to search the archives when you have time. The link to this particular discussion is http://lists.cornells.com/read/messages?id=20979 (login required). There is a wealth of information in those older message postings, so take a peek!

John Fix started the Hardlines Digest in 1996. There are currently more than 2,400 subscribers to Hardlines Digest.

Paint & Decorating Trends

Sales Breakdown in Paint Applicators

Paint & Decorating Buying Update

■ Purple is shaping up to be the color most in demand in 2011, from deep smoky wine to wild fuchsia, according to the color experts at Benjamin Moore.

■ Benjamin Moore’s color team has forecast a color palette for 2011 that revolves around the central theme of “balance” and the related style movements of Soulful, Spirited and Dreamy.

■ The Soulful style can be found in pattern-on-pattern, map motifs and hand-worked decoration such as beading and embroidery.

■ The Spirited style is reflected in spirited designs featuring geometrics, stripes and cubes, dots and curlicues, studded or stitched outlines of shapes and silhouettes. These decorating trends will be juxtaposed with lots of gray, black and white.

More consumers are using spray paint to repurpose old household goods and furniture as an affordable alternative to buying new.

■ The Dreamy style is executed through transparent and sheer materials, blurred decorative details and softened textures. The color palette suggests pale, frosted and opalescent hues.

■ Environmental decorating will be a big trend in 2011. Colors “of the earth” such as brown, green and blue will be in vogue, while wallcovering and fabric patterns will feature florals, fruit and vegetables.

■ Natural wood flooring and wood blinds will see increased demand as well as faux textures that emulate stone, marble and granite, according to the Paint and Decorating Retailers Association.

Consumers are looking for solvent-free or low-VOC wood finishes.

■ Individual style mixed with budget-conscious decorating will drive 2011 paint hue trends, according to the Paint Quality Institute. Consumers won’t be diving into large-scale renovation projects, but instead will search for inexpensive ways to freshen and update their home. Warm whites, understated tans and soft coral will be used in kitchens, bedrooms and baths.

8 Questions 8 Questions for Ron Beal

How was Orgill’s performance in 2010 and how pleased are you in light of the slow economy?

Beal: We’re very pleased. Our overall sales were up 9.3% over 2009. Warehouse sales through four of our five regional distribution centers were up by double digits, and the fifth had a high single-digit increase. Total warehouse sales were up by 10.3%. These increases are especially gratifying since they were not from depressed levels. We’ve been able to show sales gains every year but one during the current downturn; the exception being 2009, which was almost even. Our cumulative gain since 2005, the last strong year for the industry, has been 23%.

Orgill Inc., based in Memphis,Tenn., is the largest independent wholesaler in the United States.The company has been busy opening new distribution centers and expanding into Canada, soThe Hardware Connection interviewed Ron Beal, president/CEO, about these initiatives.

What are some of the new initiatives you have planned for 2011?

Beal: We have enhanced our product offering and presentation in nearly every merchandise category. At our Dealer Market in Orlando, we introduced a new very aggressively priced series of monthly specials designed to keep our retailers competitive in their local advertising and promotional efforts. From a geographic expansion standpoint, we are excited about adding Canada as part of our core distribution business, and the opportunities that brings.

What are the biggest challenges facing Orgill and its retail customers over the next few years?

Beal: The biggest challenge is still the economy in general, and the housing market in particular. While there are some positive signs, most independent observers would agree that we’re not out of the woods yet. We’re also concerned about rising fuel prices, which we believe are largely due to the falling dollar and speculation. This is, in effect, an insidious tax on the average American citizen, and a tremendous burden for the small business owner in our industry. A return to fuel surcharges like we saw a few years ago would make it very difficult to determine actual landed costs, and a fiercely competitive environment often makes it impossible for the individual retailer to pass these costs on.

You recently announced expansion into Canada through a partnership with Castle Building Centers. How much potential does that market hold for you and what steps have you taken to integrate Canada into your core operations?

Beal: Canada has tremendous potential, and we believe that the OrgillCastle working partnership is uniquely positioned to bring the complete range of products and retail services we offer to independent hardlines dealers in that vast and prosperous country.

We have redefined our use of the term “domestic” to represent Canada and the United States. We will be providing Canadian retailers with Canadian compliant products, priced in local currency, delivered on Orgill trucks with industryleading pricing; as we currently do in all 50 states. Over 35,000 products in our facilities servicing Canadian customers are already fully compliant. We have focused on the core hardware store and building supply center cate-

gories that are an integral part of the Castle customer base. Departments such as hand tools, power tools and accessories, builder’s hardware, plumbing, kitchen and bath, and electrical are virtually complete. Our Worldwide Sourcing lines are also largely compliant. We will work to bring the remaining categories online as the year progresses.

Orgill has developed the Home Basix program to help entrepreneurs open hardware stores in China — how pleased are you with early results and what are your expectations for future growth of that program?

Beal: We’re pleased. Every day is a learning experience, and we’ve learned a great deal. Our joint venture company will soon have five retail stores operational in the Tianjin area, and we already have a small distribution facility in place to support them. We’re experimenting with different footprints and formats, and will soon have a commercially oriented operation in one of China’s leading international high-tech

manufacturing areas near Tianjin. We have also started wholesaling several U.S. made products to Chinese retailers. Being in the hardware business for 164 years has helped give us a long-term focus and a degree of patience that are proving to be definite assets as we grow in China.

You opened a new 800,000-square-foot DC in Missouri in 2009 that allows you to operate more efficiently and handle more growth — what’s the status of the new distribution facility you have been planning for the Pacific Northwest?

Beal: Our “Mid-America Supercenter” has been a success from every aspect. It allowed us to close two outdated distribution centers in Memphis and Vandalia, Ill. We’ve already realized improved efficiency and increased quality levels from the new operation. One example is a new 200,000-square-foot cross-dock area that helps us to efficiently handle full-container inbound shipments direct to our other distribution

centers or direct to our customers without duplicate handling.

We have the basic layout and general location of a new distribution center in place, as well as approval from our board of directors to make the necessary investment. Our current service to the area is actually very good, as we’re providing second and third day delivery to the Northwest from our existing Utah facility, and have been hesitant to pull this volume in the current economic environment. Our overall business in the Northwest, as well as California and Arizona, has grown to the point that we will reevaluate our position during 2011. Generally, we’ve been able to build and occupy a new facility within a year once we’ve given the go-ahead to do so. Are you seeing more consumers interested in “Buying Local” and how can you help your retail customers capitalize on this growing movement?

Beal: I think there has always been a preference

by many consumers, especially local professional consumers, to support local businesses so long as they don’t have to sacrifice product selection and price to do so. We believe we’re helping local entrepreneurs all over the globe compete on selection and price as well as convenience. “Help our customers be successful” is our mission statement, and we take it very seriously.

What has dealer reaction been to the farm and hardware model store you unveiled at the Fall Market and how much potential does the farm market hold for you?

Beal: It has exceeded our expectations. A primary objective of the farm and hardware model store was actually to show the many strong farm and ranch-oriented retailers we service how extensive our assortments are, and how much they have evolved in being able to support this very important and very viable industry segment.

Last year, we commissioned an extensive independent research project that showed we

were perceived by these often very large dealers as primarily being a source for traditional hardware products, which is certainly a strength. Ironically, many of the departments in which we weren’t considered to be a primary supplier were those lacking strong distribution sources, and in fact, were strengths for us. Laying everything out in an integrated retail format focused on the Farm & Hardware dealer very graphically showed that except for the specialized areas of bulk feed, bulk chemicals and certain veterinary pharmaceuticals, we are a complete distribution source for this type of retailer.

Ron Beal is president/CEO of Orgill Inc.

New Stores:

● Ken and Yvonne Gurney opened Lake Norman Hardware & Home in Denver, N.C.

● Les and Kathy Orchekowsky opened their third store, Bisbee Ace Hardware, in Bisbee, Ariz.

● Modern Builders Supply opened in Muncie, Ind.

● Larry Loftin has opened Quitman Building Supply in Quitman, Miss.

● Home Hardware dealer Steve Gynane has purchased Millbrook Pro Hardware in Millbrook, Ont.

● Judith Moratti has opened Ace Hardware Evergreen Way in Everett, Wash.

● Ransom Brothers Lumber and Supply opened a Destination True Value branch store Dec. 10 in Ramona, Calif.

● Peter and Karen Marsing are opening Winneshiek True Value in Decorah, Iowa, in March.

● Randy Best opened Best Ace Hardware in Millsboro, Del.

In the News...

● Ed and Annie Hawkins have taken ownership of Convenient True Value in Wheeling, W. Va.

● Joe Giomi is celebrating the 40th anniversary of Ace Hardware in Yerington, Nev.

● Michael and Cindy Dickson have moved Geneva Hardware to a new, larger location in St. Charles, Ill.

● Walter and Patti Toole opened their sixth store, Conway Ace Hardware in Orlando, Fla. The Feb. 5 grand opening featured former Orlando Magic player Bo Outlaw, a gardening pro

demonstration, live alligators, the STIHL powerboat, a radio remote and giveaways.

People on the Move:

● True Value Co. named Robert Young divisional vice president for the paint, hardware and tool departments and promoted Eric Lane to vice president-specialty businesses.

● Hyde Tools has promoted Bob Clemence and Louis Oleksy Jr. to vice president of sales.

Walter Toole

● W.E. Aubuchon Co. has promoted M. Marcus Moran Jr. to CEO and named Bernard Aubuchon Jr. senior vice presidentpurchasing, Daniel Aubuchon senior vice president-operations/human resources, Gregory Moran senior vice president-real estate, Jeffrey Aubuchon

Oleksy Jr. Clemence

vice president-finance/treasurer, Scott Aubuchon vice president-information technology and William Aubuchon IV vice president-sales.

● Lowe’s Cos. has promoted Robert Gfeller Jr. to executive vice presidentmerchandising and Troy Dally to senior vice president and general merchandising manager of hardlines and building products.

● Home Depot has named Trish Mueller chief marketing officer.

Kudos to:

● O’Hara True Value Hardware in Ottumwa, Iowa, owned by Mike and Terri O’Hara, was honored as “Outstanding Business of the Year” by the town’s Convention and Visitors Bureau.

● Frager’s Hardware in Washington, D.C., received the CHAMPS Legacy Award from the Capitol Hill’s Chamber of Commerce.

● Doug Burnie, owner of Fowlerville True Value Hardware in Fowlerville, Mich., was honored with the 2011 Clara Barton

Humanitarian of the Year Award by the Livingston County chapter of the American Red Cross. His most recent volunteer project was building a house for a family of seven in San Carlos, Mexico.

● Foothills Ace Hardware in Ahwatukee, Ariz., owned by Kevin and Linda Cash, was named 2011 Business of the Year by the Ahwatukee Foothills Chamber of Commerce.

● True Value Co. named the 2010 “Best Hardware Store in Town” winners: Appomattox True Value, Appomattox, Va.; Big Jo True Value, Santa Fe, N.M.; Conyers True Value, Manchester, Conn.; Handy True Value, Rock Island, Ill.; Hometown True Value, Minneapolis, Kan.; Hyde Brothers True Value, Clarksdale, Miss.; Junction True Value, Seattle; Morrison True Value, Alpine, Texas; Mound True Value Hardware & Paint, Mound, Minn.; Pollock Pines True Value, Pollock Pines, Calif.; Ritters Hardware Co., Mechanicsburg, Pa.; Roaring Spring True Value, Roaring Spring, Pa.; and Vermont Outlet True Value, Los Angeles.

● Handyman Hardware in St. Cloud, Fla., operated by Bill, Doris and Rick Heuser, will be hosting a 25th anniversary special event on March 12 with a bag sale, prizes, raffles, product demos and a “garage sale” of discontinued and unclaimed items.

● Dennis and Janet Jones are marking the 35th anniversary of Greenhaven Ace Hardware in Sacramento, Calif.

● Hangtown Ace Hardware in Placerville, Calif., is celebrating its 50th anniversary.

● Troy and Lisa Daniels are marking the 25th anniversary of Red Wing Ace Hardware in Red Wing, Minn.

● Patrick Bowman is celebrating the 100th anniversary of his business, R.W. Hine in Cheshire, Conn.

● Gilson Hardware in Blissfield, Mich., is celebrating its 100th anniversary.

● Mathew Hall Lumber has been named Minnesota 2011 Lumber and Building Materials Retailer of the Year by Northwestern Lumber Association.

● Bill Shull’s store, Clarence T. Summer in Newberry, S.C., will be featured in an upcoming episode of the History Channel series “American Pickers.”

● Schauer Hardware, a Do it Best store in Franklin Park, Ill., was recently used to film a scene for a new television show, “The Chicago Code.”

Wholesalers in the News:

● Blish-Mize Co. is celebrating its 140th anniversary this year.

● Chris Jensen has been promoted to executive vice president-business development for Jensen Distribution Services.

● Thomas Schifanella Jr. was named CFO of Handy Hardware Wholesale.

● Orgill Inc. has partnered with Castle Building Centres Group to expand into Canada.

● After a 38-year industry career, the last 19 at True Value Co., Fred Kirst retired Feb. 11. Kirst held

senior leadership positions in merchandising, marketing, international and retail development with the co-op and most recently oversaw the development of True Value’s corporate store in Mount Prospect, Ill.

● True Value Co. reported comp-store sales increased 0.3 percent in 2010. The co-op will be unveiling a new and improved True Value Rewards program on March 15 to go with redesigned consumer and retailer websites.

Other News:

● The Wooster Brush Company in Wooster, Ohio, is celebrating its 160th anniversary this year.

● Hillman Cos. Inc. has purchased Servalite, an Illinois-based distributor of hardware and fasteners.

● Home Depot is closing underperforming stores in Rocky Mount and Greenville, N.C., and Holland, Mich., as well as its last store in Beijing, China.

In Memory:

● Ray Durfee, long-time owner of Durfee Hardware in Cranston, R.I., worked six days a week until shortly before his death at age 88 on Feb. 2. A graduate of Brown University, Durfee was in the Navy in World War II and served eight years as a state representative and eight years as a state senator.

● Todd Rabin, who owned Ridgefield Hardware in Ridgefield, Conn., with his father, Gerald, lost his battle with cancer on Feb. 5. He was 40. Rabin was a past recipient of NRHA’s Young Retailer of the Year award.

● Richard Mueller, former owner of Mueller True Value in Hudson, Wis., passed away at the age of 82.

● Murray Armstrong, who served as president and general manager of Ace International, died Dec. 14 at the age of 63.

Get the Full Story:

● Debit card transaction fees could be cut by as much as 84 percent if a proposed rule gets passed. Find out more here: http://tinyurl.com/26gvf4h.

● Make sure you’re familiar with new tax credits for small businesses. Go to http://tinyurl.com/65qpohp.

● Read how a community is banding together to aid a hardware retailer suffering from Lou Gehrig’s disease:

http://tinyurl.com/4dv6hvz.

● Employees of Jerry’s Home Center in Eugene, Ore., take control of company with Employee Stock Ownership Plan. Read more: http://tinyurl.com/4bxphdz.

● 85-year-old Helen Slack is retiring after working 66 years at New Market Hardware in St. Louis.

Listen to her story here: http://tinyurl.com/4rpyg3c.

● New study ranks metro areas on the vitality of their independent retail: http://tinyurl.com/46bvor9.

Propst and Cole Join THC Sales Team

The Hardware Connection is pleased to announce the addition of two industry veterans to its sales team: Craig Propst and Greg Cole.

Propst (thepropstteam@aol.com) is the owner of The Propst Team, an independent sales and marketing firm based in North Carolina. He represents SawHorse Apparel in the hardware market and has developed a client base of several hundred retail stores. Drawing on 13 years in sales at Hardware Retailing and seven years at Hardware Age, Propst is excited about the opportunity to represent The Hardware Connection with special accounts, principally along the East Coast. “Working with retailers directly the past two years as a manufacturer’s rep has not only been fun, but very eye-opening,” Propst said. “I hope to share some of that experience with my advertising accounts for The Hardware Connection to help them do an even better job of communicating with the market.”

Cole (greg@thehardwareconnection.com) has a long history of experience as a sales rep, most recently spending five years as a regional sales manager for Hardware Retailing. Based in Indianapolis, he will be representing The Hardware Connection primarily in the Great Lakes and Northeast. “I’m excited about the opportunity to join a growing, cutting-edge publication like The Hardware Connection,” Cole said.

Craig Propst

Greg Cole

Upcoming Events

MARCH

Blish-Mize Spring Dealer Market ■ March 18-19, Overland Park Convention Center, Overland Park, Kan.

Emery-Waterhouse Spring Market ■ March 18-19, Rhode Island Convention Center, Providence, R.I.

ENAP Annual Meeting & Show ■ March 24-25, Disney’s Coronado Springs Resort, Orlando, Fla.

HDW Inc. Spring Market ■ March 5-6, Jackson Convention Center, Jackson, Miss.

Illinois Lumber & Material Dealers Association Convention & Expo ■ March 21-23, Peoria Civic Center, Peoria, Ill.

International Home & Housewares Show ■ March 6-8, McCormick Place, Chicago, www.housewares.org

Mountain States Lumber and Building Material Dealers’ Association Products Expo ■ March 11-12, Denver Merchandise Mart, Denver

Nebraska Lumber Dealers Convention ■ March 9-10, Embassy Suites Hotel & Conference Center, La Vista, Neb.

Reliable Distributors Annual Management & Marketing Conference ■ March 9-12, Embassy Suites North, Phoenix

APRIL

Ace Hardware Corp. Spring Convention ■ April 1-3, McCormick Place, Chicago

Home Hardware Spring Dealer Market ■ April 10, St. Jacobs, Ontario

Kitchen/Bath Industry Show ■ April 26-28, Las Vegas Convention Center, Las Vegas, www.kbis.com

Lumbermen’s Association of Texas Annual Convention ■ April 7-9, Worthington Hotel, Fort Worth, Texas

MAY

Do it Best May Dealer Market ■ May 21-23, Indiana Convention Center, Indianapolis

National Hardware Show ■ May 10-12, Las Vegas Convention Center, Las Vegas, www.nationalhardwareshow.com

Wallace Hardware Spring Market ■ May 2-5, Gatlinburg Convention Center, Gatlinburg, Tenn.

JUNE

House-Hasson Hardware Summer Dealer Market ■ June 23-25, Cobb Galleria Center, Atlanta

United Hardware Fall & Christmas Buying Market ■ June 16-19, Minneapolis Convention Center, Minneapolis

Submit show information to chris@thehardwareconnection.com.

RETAIL IDEAS

More Than 1,400 Attend

Kuiken Brothers Product Expo

Kuiken Brothers, with eight locations throughout northern New Jersey and one in southern New York, hosted one of the largest trade events in the tri-state area. More than 1,400 builders, remodelers, architects and designers attended Product Expo 2010 in Mahwah, N.J., on November 4. It was one of the largest Expos in the company’s history.

“The Product Expo is designed to educate our core customers, primarily professional builders, remodelers, architects and designers. It is a great

venue where they can all come together and learn about the latest products and building techniques from the industry leaders, fellow tradespeople and product manufacturers,” said Douglas Kuiken, president of Kuiken Brothers. With sponsorship support from Andersen Windows & Doors and BlueLinx, the free expo featured educational events and hundreds of products on display from nationally recognized brands. One of the highlights was a special series of Designing with Classical Moulding Seminars presented by nationally recognized historic expert Brent Hull. Complimentary food and beverages were

Kuiken Brothers’ annual Product Expo gives them a chance to develop closer relationships with builders, remodelers, architects and designers.

served throughout the day to all attendees.

“I thought the whole event was incredible! I was there for the time it started until it concluded. I brought my whole crew. They were also impressed. The facility, food, events and the seminars were very professionally done,” said Mike Venezia of Bergen Westchester Construction.

Check Out These Videos

● K&B True Value in Annapolis, Md., has earned the prestigious “Annapolis Environmental Steward” award for excellent environmental practices, thanks to the diligence of co-owner Jared Littman, a former environmental lawyer. He sells about 1,000 environmentally friendly products in his store. The following video demonstrates some of K&B’s green cleaning solutions: http://vimeo. com/16678185.

● Mark and Eddie Anderson of McDonald Garden Center in eastern Virginia tout the advantages of independents over big boxes in the

following video: http://tiny url.com/67ydoef.

● When he’s not running his hardware store and vet clinic in Beaver Island, Mich., Jeff Powers of Powers Do it Best is a member of a comedy group. Here is a link to some of their skits: http:// tinyurl.com/62pnp6p.

Technology Tools to Adopt

● Google Base is a way to upload a database of your products so they appear in Google product searches. If you have an online store then you definitely want to take a look at Google Base, as it's a guaranteed way to get your products into the Google Shopping search results. Go to www.google.com/base/

● Foursquare is an application for GPS-enabled smart phones. By “checking in” via a smartphone app, users share their location with friends while collecting points and virtual badges. Retailers can use a wide set of tools to engage and retain customers. Foursquare has recently introduced the Fixer Upper Badge, which is great thing to

offer customers who come into their local hardware store while working on a project. Go to http://foursquare.com/

Maximize Your Web Presence

While thousands of small to mid-size retailers already have web sites, many of those sites are not as effective as they should be. Too many retail sites seem to function as “electronic calling cards.” Today, there are many tools that must be a part of your overall marketing strategy. Bob Vereen and Dennis Stillwell have written a book, Successful Web Retailing, that leads you through the maze of new technology and teaches you how to use the technology to better market your business to the world. Successful Web Retailing offers practical advice to help retailers improve

their web sites and to make more sales from their web presence — in their stores or from the web site. Here are some tips from the book:

● Independent retailers possess an advantage often not fully exploited. They can — and indeed should — emphasize the unusual items and departments they offer. Regardless of the type of store one operates, it will contain many products that customers don’t know about or maybe haven’t discovered as they walked your aisles.

● You’ve got products that will solve problems or make life more enjoyable for the site visitor, so tell them about them. You need to portray yourself as a problem-solver, for example, if you are operating hardware stores or home centers, or portray yourself as an expert in certain merchandise categories if you are selling sporting goods, toys or hobby items.

● A Web site is great for showcasing products that are unique or difficult to display in one’s store. Your Web site is a oneon-one communication medium between you and the site visitor.

To order a copy of the book, go to www.successfulwebretailing.com.

5.7 %

BEHIND THE NUMBERS

Increase in holiday sales to $462 billion, the largest gain since 2004, according to the National Retail Federation. Unadjusted December sales rose 5.3%.

5 million

Number of people now using Foursquare, a mobileapplication that helps businesses connect with customers by rewarding them for checking in to a location.

92.6

The NFIB Index of Small Business Optimism fell 0.6 points in December to finish at 92.6, marking 36 months of recessionary levels.

1.2 million

People who joined the Small Business Saturday movement by “liking” it on Facebook. According to event sponsor American Express OPEN, 100,000 small business owners downloaded POP and promotional materials.

575,000

Single-family housing starts forecast by the National Association of Home Builders for 2011, up 21% from 2010. New homes are predicted to rise from 320,000 to 405,000.

47,000

Number of building industry professionals who attended the 2011 NAHB International Builders’ Show in Orlando, which featured 1,137 exhibiting companies.