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Hardware Connection December 2017

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

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

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

Associate Publisher: Craig Cope craig@thehardwareconnection.com 804-690-0666

Saluting the Best of the Best

What I enjoy about my job is that I get to travel around the country and visit hardware and home improvement stores. Every family-owned retail business has an interesting story. It might be the family dynamics, the owner’s previous background, the long tradition of service to a community or the unique niches the store offers.

Some owners are engaging storytellers, while I have learned that most are quick to share credit with their team of associates and slow to brag about their accomplishments. If you’ve been reading our Amazing But True Hardware Stories section, then you know that there are a lot of funny and wacky things that occur in stores on a daily basis.

In this issue you will find a complete report of The Hardware Conference, which took place December 8-10 in Ponte Vedra Beach, Florida. It was nice to see the industry’s largest gathering of independent retailers still gather after Hurricane Irma decided to hit Marco Island the week the Conference was originally scheduled for in September.

One of the highlights of The Hardware Conference was the fifth

annual Beacon Awards banquet. Six impressive independent retailers were honored as the “Best of the Best,” and you can find Beacon Awards coverage beginning on page 50. They were all profiled in our September/October issue.

See our profiles of two successful women hardware retailers beginning on page 24, our fourth consecutive year paying special tribute to Women in Hardware in our December issue. What resonated most with me was when Malinda Milam, owner of M Kay Supply in Missouri, said she was opening a hardware store so that her twin daughters—born the year the store opened in 2014— could run it someday. Let’s hope that is the start of many generations of family ownership.

However, most successful hardware retailers would say the key ingredient to their success is a willingness to listen to their customers and then act on that feedback. Give the customers what they want, when they want it and how they want it. Sometimes a simple formula can lead to the best recipe, but it is up to each individual retailer to find that success formula for his or her business. n

Things My Father Told Me

As we close out 2017 and with the Christmas holiday right around the corner, I tend to reflect back on the year. I’m told the older I get the more reflecting on the past I will do. As I talk with other people my age we all tend to have the same type of experiences.

One memory that keeps coming up is how fathers tend to share things with their sons and daughters that didn’t seem to have a lot of relevance at the time. However, as we get older those things our fathers shared with us take on a whole new sense of importance.

I would like to share some of those things my father shared with me and I’m willing to bet many of our readers’ fathers shared similar bits of advice with them as well. First, allow me to tell you that my father was so conservative I used to tell him he made the John Birch Society look like “flaming liberals.”

He would always reply “Son, I’ve never seen a conservative business person go broke, but I’ve seen more business people who take

unnecessary risks lose everything more times than I can count in my life.” I have to admit that the older I get the more conservative I become, probably because I have more to lose financially and less time and energy to make up lost ground.

My father’s other favorite saying was when I was critical of how conservative he was with his investments. He would reply, “After you make your first million then come talk to me about risk.” The older I get the more I understand what he was trying to tell me.

My father passed away over 21 years ago, but I honestly have not made any significant decisions since his death without asking myself “What would dad do in this situation?”

That doesn’t mean I always do what he would have done, but it forces me to think over the issue from a different perspective. I will also share with you that the simple process of asking myself what my father would do has prevented me from making some really huge mistakes over the years.

THE WAY I SEE IT

Managing your net worth. Dad used to tell me that as hardware store owners we spend 99 percent of our time working to make a profit. Deciding what kind of merchandise to buy for our store and the right price to charge for the merchandise. All of this while keeping an eye on our expenses.

We would attend one of two hardware shows a year just to stay abreast of what was going on in our industry. However, rarely would we spend more than an afternoon with our accountants and financial advisors to figure out the best way to manage our profits after they had been made.

As a result, my father would encourage me each December to spend some time to learn the best way to manage the profits we made each year. He would always say “Making it is one thing, but keeping it is something altogether different.”

You will only make real money two or three times in your lifetime. Dad would always advise me that when those two or three times came my way to be ready for them. If you are in debt, pay it off. If you are not in debt, invest the money so it will work for you going forward. “Whatever you do, don’t fritter it away and don’t spend it on depreciating assets,” he would advise.

As I reflect back on my career I’m thankful I have heeded his advice in this area. Don’t misunderstand what

WILL ONLY MAKE REAL MONEY TWO OR THREE TIMES IN YOUR LIFETIME. DAD WOULD ALWAYS ADVISE ME THAT WHEN THOSE TWO OR THREE TIMES CAME MY WAY TO BE READY FOR THEM.

I’m saying: there is more to life than a savings account. I have six boats and an airplane, so I have more than my share of depreciating assets. However, I didn’t buy any of them when I had a financial windfall come my way. Trust your judgment. Dad used to tell me to seek advice, listen and learn as much as you can, but in the end if you are going to make a mistake make it on your own. “Don’t blame others for your poor judgment,” he would say.

As a result, I have taken some risks that others didn’t think were wise and they turned out to be the right thing to do. However, if they had gone the other way, I would not have blamed anyone but myself.

I would encourage everyone, and not just hardware store owners, to spend a little time this month reflecting back on the year. Enjoy your victories and learn from your defeats. Listen to the voice in the back of your YOU

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THE WAY I SEE IT

mind that was your father’s or mother’s advice when you were younger and didn’t understand what it really meant. Plan your financial future by meeting with your accountant and financial advisors, and for more than just an hour or two to review your income taxes. Trust your judgment and remember that not every decision you make will be correct. The trick is to minimize the risks so you have a greater chance of success.

Thank you for all of your support this past year. The Hardware Connection magazine was one of those risks I took nearly 10 years ago with two dear friends: Chris Jensen and Harry Holmbraker. I have never regretted it and we have never looked back.

Today, we are the most widely distributed and read trade magazine in the hardware industry, thanks to you our loyal readers. I often wonder what my dad would think—at the time of his death the internet was still more of a concept that a reality.

I hope you and your family have a wonderful Christmas holiday season and a healthy start to the New Year. From one retailer to another, feel free to contact me at tom@thehardwarestore.com. n

HARDWARE STORIES Amazing but TRUE HARDWARE HUMOR

Ganahl Lumber’s headquarters store in Anaheim, Calif., has been amusing and inspiring passing motorists for nearly 20 years with a sign board that is changed every two weeks. Here are some of the fun signs that have been used.

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Work Smarter and Safer now featuring touchscreen compatible fingertips on high performance gloves

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

s we begin the last month of the year I have a few more products we’ve had the opportunity to review that you may want to take a close look at during the spring wholesaler shows. Looking for new innovative products is one of the things I’ve always enjoyed the most about attending the fall and spring shows.

PRODUCT #1: QUICK-FLOW SPOUT

MIDWEST CAN

Midwest Can has developed a new line of gas cans that is fully compliant with the new regulations that require a shut-off spout and a smaller footprint for storage. The Quick-Flow Spout—for use with the new line of #4240 cans— seems to pour as quickly as the spouts that didn’t require the shut-off option.

This new spout pours 2.5 times faster and, unlike other shut-off spouts, only requires you to click the childproof safety lock (on the spout) once and you are ready to pour.

The whole process of storing the spout in the gas can is still the same, but all of our testers commented on how quickly the gasoline came out

of the can, how easy it was to engage and disen gage the shut off and the new style dust cap that seals the can when the spout is not in use.

This new line of Midwest gas cans comes in red (for gas), yellow (for diesel) and blue (for water) in sizes from one gallon to five gallons.

Check out this video, and you will see why our testers liked this product so much.

PRODUCT #2: GOLD EDGE™ PAINT BRUSH | WOOSTER BRUSH COMPANY

Wooster Brush Company, which was started in 1851, is one of the premier manufacturers in the hardware industry. That’s right, the company has been around 166 years and it is still one of the market leaders in the paint applicator industry.

100% Pro.

From Tom’s Shop HARDWARE PRODUCTS REVIEW

Following the Silver Tip series of paint brushes Wooster developed the new Gold Edge™ paint brush line that comes in several styles: the angle sash with a solid handle, the thin angle sash that has a much thinner handle and is easy to control, a short handle angle sash for those really tight areas that are hard to get to, the flat sash, a varnish brush and a large 4” wall brush. What sets this brush line immediately apart when our testers took it out of the sleeve was the soft but firm texture of the polyester bristles. Each of our testers commented on how easy it was to control the brush loaded with paint. All of the Gold Edge series brushes have solid hardwood handles and stainless steel banding or ferrule to hold the polyester bristles in place, making this paint brush line durable and easy to clean. Another nice feature of all of the Wooster Gold Edge paint brushes is they are made in the USA.

Any other family members involved in the business? My brother, Darin Piekarski, works seven days a week. He takes care of rental, service and outdoor power equipment, while I’m more of a marketing, advertising, computer and numbers person. We have such different talents. My Aunt Lorraine is 85 and in charge of accounts receivable, so she’s calling up contractors asking for money.

What is your retail philosophy?

Whether it’s right or wrong, we try to be everything to everybody. We’re problem solvers. Not only do we have the right products at the right time, we have creative options.

What are your top categories?

Building materials and lumber, followed by outdoor power equipment, lawn and garden, and paint. We’re known for having the best-quality lumber—we are sticklers for quality. Rental and STIHL power equipment are big niches for us. It’s important to carry premium brands you can’t find at the boxes.

Outdoor power equipment sales and service is a major part of the business.

Proudest accomplishment as a hardware store owner? Last year when my brother and I opened a standalone rental center. It encompassed our perseverance in dealing with competition. If my dad were still alive I know he’d be very proud of us.

How do you deal with customers who are dismayed to have a woman helping them? I work in the Leechburg store on the weekends, which has a very male-dominated customer base. Most customers don’t second-guess my advice or answers. If they do, I win them over by being pleasant. People also appreciate honesty. I’ll say that I don’t know the answer to that but I’ll find out for them.

We have such a good team here, and there are a lot of women who have worked here for a long time. Ginger is our head of computers, and she’s getting ready to retire after 35 years. We wouldn’t be a success without her knowledge. The office staff is eight women.

What advice do you have for other women who might be considering a career in hardware retailing?

Every day is different. Product knowledge is not difficult to learn, but retail uses so many other areas like sales, marketing and technology. It takes creativity and organizational skills, but retail is an exciting field to be in.

company legacy going forward?

Middle:

Right: Stanford Home Center’s main store is all decorated for the holidays.

The company name Stanford comes from my grandfather Stanley and the words “go forward,” so that was the focus early on. The third generation has more challenges than the second generation, but family is important and the community has been so supportive for nearly 65 years.

What new initiatives are planned?

Continue growing the rental center and expanding more into paint while installing Do it Best’s new Color Bar. Our expanded offering of paint will enable us to go after more paint contractors.

What percentage of your sales come from female customers?

Probably 30-40 percent. We have a huge event twice a year called Ladies Day, which is an all-day event. We broke a record with $90,000 in sales for Ladies Day on November 3, when we would typically do about $15,000 in a day. Ladies love it and it creates excitement in the community.

As a third-generation owner how important is it to preserve the

How have you grown sales by marketing exclusive deals to your best shoppers? I’m a huge proponent of the Do it Best Rewards program. When I was working on my MBA I did an entire class on loyalty programs, and I guess it stuck with me. I understand the need to advertise in busy months, but I also understand the beauty of target marketing. You can specifically target customers who have a greater propensity to buy from you. I’ll run a paint campaign with a bounce-back coupon targeted to those who have bought paint, and we’ll see more traffic, sales and bang for our buck. Advertising to existing customers through the Rewards program is easier than trying to attract new customers. n

Left: Ladies Day is held twice a year as a daylong event.
Susie’s mom Fran has been instrumental in turning lawn and garden into a top-selling department.

WOMEN IN HARDWARE

Malinda and Jarrett Milam opened M Kay Supply in Benton, Mo., in late 2014.

One-Stop Shop Creating a

Malinda and Jarrett Milam are high school sweethearts turned business partners. They opened M Kay Supply in Benton, Mo., in December 2014. The store name comes from Malinda’s first initial and middle name.

How did you get your start in the hardware business? In January 2014 we had identical twin girls. Shortly after that my dad approached us and said, ‘For three or four years you’ve been saying that someone needs to open a hardware

M Kay Supply Benton, Mo.

Wholesaler: Orgill Sales floor: 18,000 sq. ft. # Employees: 16

Shortly after having identical twin girls in 2014, Malinda and Jarrett Milam began working to open a much-needed hardware store for their community. STIHL power equipment is one of the topselling categories.

store in town. I think it should be you.’ He had a building that needed to be filled with a business, and we agreed to open a hardware store.

I have a bachelor’s degree in occupational therapy and a master’s in business, and spent 14 years working at a hospital. I grew up in a family with two parents who were entrepreneurs. It was important to provide a place for my daughters to work when they get older. This is their store.

Left: M Kay Outfitters stocks more than 400 guns with a wide variety of ammunition, hunting apparel and accessories.

Right: The Southern Sass Boutique upstairs helps attract female shoppers.

We started working on the idea in March, but the store kept growing in size.

Originally we thought that a 3,600-squarefoot building would work, but we ended up with an 18,000-square-foot sales floor. We started pouring concrete in July and opened before Christmas.

Upper: Carrying toys means families don’t have to travel to another town to buy gifts for their kids.

Lower: The deli counter serves as a gathering place for the community.

We talked to farmers and contractors in the local area and asked what they wanted in a store. Then the local grocery store closed, so we added meat and a deli counter. We wanted to provide a good source of supply for outdoor recreation, so there’s a strong hunting and fishing department with kayaks. More than anything, I wanted to offer something for women and children, so we added the Southern Sass Boutique and toys. It’s truly a one-stop shop for the community.

What is your retail philosophy? Every day is a new day. I’m here to provide a service. If we don’t have it, Orgill has a large warehouse 15 miles away

and we can get it quickly. We do our best to get customers the unique gift they are looking for.

On a daily basis we’re asking customers what they have to drive to get elsewhere, so that we can add it. There are a lot of pecan trees around here, so we had to figure out the best pecan picker uppers to stock. My customers want to shop local. If they give me a day I can get anything for them. We built this store on being able to be a one-stop shop, so people can find what they need for the whole family. I’m down on the floor helping where needed.

We wanted a place that was warm, cozy and inviting. We offer free coffee and a fireplace in the deli. Benton is the county seat, so people will come here and hang out. There is a lot of stone and brick in the decor throughout, which helps make our store unique.

With the deli we have a lot of upperclass ladies come in that wouldn’t otherwise come to a hardware store. We offer homemade cake and cinnamon rolls— one lady called it the best-kept secret in the county. I want customers to have more of an upscale experience and only serve high-quality ingredients. I won’t sell something I haven’t tried or tasted first.

How difficult is it to work with your spouse?

My husband Jarrett is a masonry contractor and he’s still doing that. I help him with paperwork, and he’s in and out of the store. He’s great at merchandising and knows how to

WOMEN IN HARDWARE

display things. I’m the one who’s in the store every day, but he is very supportive.

How do you deal with customers who are dismayed to have a woman helping them? We don’t have many customers balk at being helped by a woman. If someone is looking for plumbing I might say ‘What is it and how is it used?’ We’ll figure it out together or I’ll get someone else to help. I use Google a lot to find out what else a product might be called. If you approach a customer with a smile and a willingness to help, then that goes a long way. Have an open mind and listen to your customers. Honesty is always the best policy.

Get Connected for Growth

Upper: Kayaks are a top seller in the spring and summer.

Lower: Pet supplies and animal feed are categories that bring in foot traffic.

Jessica Bettencourt, President | Klem’s

cater to every demographic and make sure we have what everyone needs.

Boots are sold along with scarves, purses, rain gear, children’s clothing and men’s workwear.

What advice do you have for other women who might be considering a career in hardware retailing? Know that no two days are alike. It’s a struggle, but it’s worth it and rewarding. I came from a hospital background of helping people, and it’s important to maintain a positive attitude. Show others how to make lemonade out of lemons.

What new initiatives are planned? We’re adding a drive-through window. We have a large beer, wine and liquor department. Some customers are handicapped, and some people just want to grab a sandwich quickly. It’s a nice convenience to offer, and it’s something our customers asked for. We’ll have that open by the end of the year.

We’re looking at cutting down on slow sellers and expanding farm and outdoor power equipment categories. STIHL is a big department for us. STIHL battery-powered units are a great thing. It’s a lot easier for women to use outdoor power equipment now, so we’re looking to increase those sales to women. We hold events that target women to get them more comfortable using outdoor power equipment. We try to

What are your top-selling categories? It varies so much by season. In spring and summer kayaks are the topselling category. Right now it’s heavy hunting season. In the spring and fall we sell a lot of sprayer parts and STIHL power equipment. Toy sales and the women’s boutique are way up now. The deli also has busy times.

What is key to your success in outdoor power equipment? We carry STIHL because we love the brand and there was a need in the community. There’s a long history of STIHL in our family. Everywhere you go, you see someone using STIHL. We wanted to provide the service of selling the units, repairing the units and selling their accessories.

What’s it like to have two little girls while running a hardware store?

I’m looking forward to having the girls grow up in the store. This is their store, not mine. We feature them in our commercials. They are the reason I do this store. Since they were little, they would be at home pretending that they have a cash register and asking imaginary customers what else they can help them with or to thank them for shopping M Kay Supply. That warms my heart to see that. n

SUNNYSIDE CORPORATION IS A PROUD SPONSOR OF THE 2017 BEACON AWARDS

INNOVATIVE PRODUCTS FOR TODAY AND TOMORROW

From its humble beginnings in 1893, to the present, Sunnyside remains family-owned and operated for 124 years. Through four generations, Sunnyside’s core values have not changed. Always offer customers innovative, high-quality products coupled with unparalleled customer service.

Henry Lueders founded H. Lueders & Company in 1893 on the north side of Chicago distributing kerosene and other oils from a horse-drawn wagon.

By 1920, the company expanded to a new location on the northwest side of Chicago, and changed the company name to Sunnyside Corporation.

In 1928 Sunnyside pioneered the packaging of solvents and chemicals into consumer-oriented containers.

Those early containers reflected the yellow and black graphics theme that has evolved into the highly recognized Sunnyside packaging of today.

Now, under the leadership of Robert Lueders, the great-grandson of the company founder, Sunnyside continues to aggressively move into new markets, expand its customer base and introduce new products.

Sunnyside products are available for sale in every state, and are formulated

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

to meet or exceed all current environmental regulations.

Sunnyside continues to improve and expand its manufacturing facility, with significant on-going capital investment in automated equipment and high-speed filling lines.

Sunnyside’s manufacturing and distribution facility is centrally located in Wheeling, Illinois. Sunnyside also has a distribution center in Southern California, facilitating timely shipments throughout the Western United States, Canada and Mexico. Quick turnaround, timely shipping, high levels of product quality, flexibility and urgency in addressing the needs of its customers are important to Sunnyside.

Sunnyside’s main manufacturing and distribution facility is centrally located in Wheeling, Illinois. Sunnyside also has a distribution center in Southern California, facilitating timely shipments throughout the Western United States, Canada and Mexico.

Sunnyside carries a full line of retail thinners, solvents, paint removers, cleaners and mildew treatments marketed under several brands including Sunnyside, ProSolutions, Green Envy, Back to Nature, M-1 and 2-Minute Remover. Sunnyside’s product lines, which are available for sale in every state, are positioned to meet or exceed environmental regulations across the country and customer needs.

Sunnyside carries a full line of retail thinners, solvents, paint removers, cleaners and mildew treatments marketed under several brands including Sunnyside, ProSolutions, Green Envy, Back to Nature, M-1 and 2-Minute Remover.

Sunnyside made in America, and proudly serving the paint and hardware industry for over 124 years. n

“Innovative Products for Today and Tomorrow,” Sunnyside’s hallmark for over 120 years.

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The company was founded by Henry Lueders in 1893.

The Hardware Conference Helps Strengthen

RetailIndependent Channel

The Hardware Conference is the only industry event that brings the independent twostep channel together to share ideas and discuss business issues. This year’s event was originally scheduled for September in Marco Island, but the untimely arrival of Hurricane Irma forced the event to be postponed and rescheduled.

The Beacon Awards banquet is a first-class event honoring the “Best of the Best” retailers.
Beacon Award honoree Willis Qualheim of Qualheim True Value is joined by daughters Casey Qualheim (right) and Karissa Magee.
Fred Fischer of J3 Pointof-Sale with his daughter Jennifer.
Dan Boudreaux of Dan Boudreaux’s Ace Hardware in Louisiana contributed to the fundraising for the Miami Children’s Health Foundation.
Darci Kunard of Sashco meets with Andrea Spencer of Elliott’s Hardware and Phillip Helms of Town & Country Hardware.
Walter Toole of Toole’s Ace Hardware made a plaque of life donation.
Conference directors Shanti and Craig Cope along with their son Tyler are looking forward to growing and improving The Hardware Conference for the future.

The 29th edition of The Hardware Conference took place December 8-10 at the Sawgrass Marriott Resort in Ponte Vedra Beach, Fla.

Craig Cope, who directs the Conference with his wife Shanti, said they were determined to do everything possible to host the event in 2017. “When a major hurricane hits, manufacturers don’t stop making products, wholesalers don’t stop shipping products and retailers don’t stop selling products,” he told attendees. “So we finally decided the heck with you Irma, we’re having The Hardware Conference anyway.”

A spirited mix of long-time and firsttime attendees turned this year’s event into a success. “I always enjoy attending the Hardware Conference each year in Marco Island,” said Greg Galen of Fluidmaster. “When it had to be moved

to a later date and a new location, I wanted to come and show my support.”

An all-day Technology Forum was held on Thursday, the day before the Conference officially opened. Epicor and ECi RockSolid held training sessions with their retail customers, helping them discover ways to operate more efficiently. Also on Thursday was a roundtable discussion on selling your business.

Women in Hardware, a group launched by The Hardware Connection three years ago with founding sponsorship support from ECi, held a meeting on Friday sponsored by ECi and Ettore Products. Tom Chasteen led a discussion of timely topics such as how retailers can communicate with employees, customers and suppliers once a natural disaster strikes.

The highlight of this year’s Conference was the Friday evening banquet, where

John Hammond of The Hardware Connection was master of ceremonies for the Beacon Awards banquet.
Taylor Thompson (right) discusses the Kaba Ilco product line with Evan Bedford of Tavernier Ace Hardware.
Beacon Award honorees Bill Pastermack (right) and wife Yesenia (second from left) of Ace Handiman North had a large contingent of family, associates and Ace corporate staff on hand to see them recognized for Best New Store.
Beacon Award honoree Phillip Helms of Town & Country Hardware (right) is joined by John Sieggreen of Central Network Retail Group (left) and Juan Pachecho of Orgill Inc.
Beacon Award winner Doug Lacoe of Dalton Do it Center thanks Do it Best Corp. for their help in getting his major store remodel completed.

six of the industry’s best retailers were honored during the fifth annual Beacon Awards program. See more on the Beacon Awards beginning on page 50.

Leading vendors participate with tabletop booths displaying their latest product innovations during exhibit hours on Saturday and Sunday mornings. Since the Conference is not a buying show dealers can learn more about the suppliers and their products without enduring high-pressure sales tactics.

Saturday afternoon was left free so attendees could enjoy fun activities. Minwax sponsored a St. Augustine trolley tour, Propane Ninja sponsored private tours of the TPC Sawgrass clubhouse and Krylon hosted its 29th golf outing.

“We greatly enjoyed attending the Conference this year. It is definitely a unique and fun event,” said Doug Lacoe

of Dalton Do it Center in Dalton, Pa., one of this year’s Beacon Award honorees. “We hope to come back next year to Marco Island.”

OPEN DIALOGUE SESSIONS

The open dialogue sessions on Saturday and Sunday mornings gave retailers a chance to let vendors know what’s on their minds while giving vendors equal opportunity to explain business issues from their perspective.

Saturday’s session added a new twist with a roundtable discussion among the six Beacon honorees on the topic of preparing for and coping with natural disasters.

Joe DeRoest of Joe’s Hardware in Fallbrook, Calif., shared how his store was currently being affected by the wildfires. “It’s hard to get up-to-date news on conditions,” he said. “A road near our store was closed. My daughter was forced to evacuate and may have lost her home.”

DeRoest added, “It happens so quickly. At least with hurricanes you have time to prepare. Our internet is down and we’re trying to work on a band-aid fix to keep operating.”

Don Hoff Jr. of Harleysville Ace Hardware said winning the Beacon Award inspires him to continue to improve his business.
Leading vendors, wholesalers and retailers were in attendance for the Beacon Awards reception and banquet.
Craig and Shanti Cope, along with Dale and Tom Chasteen, welcomed attendees to the 2017 Hardware Conference and kicked off the plaque of life donations.
John Zettler and wife Jean were joined by their children and grandchildren, who represent the fourth and fifth generation of the family to be involved in Zettler Hardware.

Sponsors:

Co-Sponsors:

Thank You to the Beacon Awards Sponsors

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

This year’s Beacon Awards were sponsored by Apex Tool Group, Epicor, Rust-Oleum, Sashco, Sunnyside Corporation, The Hardware Conference and The Hardware Connection magazine. They were also co-sponsored by Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Company.

He recalled when wildfires hit their area a decade ago and destroyed 40 homes. “FEMA came in and we set up a table for them in our store to offer aid to residents. We offered discounts to contractors who were rebuilding homes,” he said.”

Bill Pastermack, a Beacon honoree with two Ace stores in Titusville, Fla., offered three key things he’s learned from past experience with hurricanes: Make sure you have some way to run credit cards—they ran $50,000 through Square.

It’s probably a good idea to have a backup generator—it’s tough to run the store if you’re out of power.

Keep an updated list of hurricane supplies—they were last hit by a hurricane 10 years ago and some of the items on their list were no longer available.

John Zettler, a Beacon honoree with five Do it Best stores in Columbus, Ohio, said they experience the occasional storm but not really any natural disasters. “We put a backup generator on the roof of our two new stores,” he said.

“We did have an ice storm 10 years ago and we ended up opening our home to an older couple. We’ve had flooding with our Pickerington store, and we bought an 18-month supply of sump pumps to meet demand.”

Willis Qualheim, a Beacon honoree with a True Value store in Wisconsin, said cell service backup for merchant services has come in handy.

“We have a new cellular provider that goes right into the sonicwall and costs $500 to $600,”he said.

Walter Toole, who owns 10 Ace stores in the Orlando area, said he has a main merchant service provider and a backup. “Irma wiped out everything. You have to make a judgment on how much you lose by running backup. We ran everything like normal and lost almost nothing. It was a decision on how to best serve customers,” Toole said.

Craig Cope leads the discussion during the open dialogue session.
Manufacturers used tabletop displays to showcase their latest product innovations.
Joe DeRoest of Joe’s Hardware in Fallbrook, Calif., tells how his store is currently being affected by the wildfires.

Beacon honoree Phillip Helms of Town & Country Hardware in North Carolina, said they are in the sweet spot for natural disasters. “We get snow, sleet, tornadoes and hurricanes. It’s important to have a plan for pre- and post-storm,” he said. “Consumers are making a big purchase with a generator, and we find most don’t want to pre-buy because they don’t want to get stuck with it. Our stores are so technology-driven that it’s important to have technology solutions thought out in advance.”

Lacoe of Dalton Do it Center said they once experienced an ice storm that lasted two weeks. “We’re 90 miles from the Do it Best warehouse. I drove every morning at 6 to the warehouse and got as much ice melt as I could and then

started selling it to the people on the top of our list,” he said.

Evan Bedford of Tavernier Ace Hardware in the Florida Keys recounted his experience with Hurricane Irma. “It was tough having to balance evacuating with two small children and serving the community. I did evacuate during the storm but got back right after. Social media was the best way to reach my customers,” said Bedford, who had a Wi-Fi hotspot in his store so customers could come in and communicate with family members.

Pastermack added, “It was total chaos with Irma. People were scared to death. I’m taking care of my house last-minute because I’m busy at the store. We’re slammed and understaffed. Ninety percent of our clients understand but some get upset. We paid time and a half to those who were able to work,” he said.

Toole said his stores were closed two days for Irma, but he paid everyone to not work those days and then gave everyone a bonus later on. “I’ve always done that. Long-term employees know we take care of them. You make extra money, so you should share it,” he pointed out.

Saturday’s open dialogue session focused on how dealers can prepare for natural disasters and deal with the aftermath.
The Beacon Award honorees participated in a roundtable discussion on natural disaster preparation.
Bill Pastermack (right) of Ace Handiman North makes a point during the roundtable discussion.

From Our Family Business to Yours

1960s

1950s

1936

Our story begins… The Colorado Steel Sash Co. is officially registered with the City and County of Denver.

Airborne Sales & Inventions — Salesmen took to the air to visit distributors efficiently and Don Burch invented a Navigational Plotter and Slide Rule, plus weather strips for casement windows.

1940s

Innovation through Foresight — ingenious products invented and perfected by founder, Don Burch, propel the company to the front of the market. The perfect window putty that won’t separate, window installers everywhere rejoice.

Innovation is Revived — Alice, takes over management and restores the company’s role as an industry leader. Alice’s innovations included pink putty pails and acrylic sealant, the company’s first water-based sealant.

1954

Innovation Stood Still Don Burch dies in an airplane accident while visiting Sashco’s Seattle branch.

From Our Family Business to Yours

1980s

Innovation Continued — The Alyster stop-flow plunger was designed to stop caulking from flowing after pressure had been released from the caulking gun. And, Lexel ® , the first clear sealant in a clear tube, a co-polymer rubber that outperforms silicone in adhesion, clarity, and paintability.

1970s

New President & CEO Les Burch is named president one year after the company’s name is changed to Sashco®

2000s

Sashco® Thrives — continuing to introduce high-performance products such as Through the Roof!®, Mor-Flexx®, and eXact color®: a tintable caulk that users can mix themselves.

1990s

Innovation Defined by Opportunity — Big Stretch® introduced to the market, and Sashco® eliminates “me too” retail products, concentrating on high-performance.

Toole added that when a tornado leveled one of his stores in 1998 he was able to rebuild in four months because he a plan in place beforehand. He recommended reviewing your insurance coverage annually and making sure you have business interruption coverage and know the actual value of inventory along with replacement value.

Helms advised to make sure managers have multiple contacts for each employee and know which ones are close by and can be relied on.

Joe Proctor of Proctor’s Ace in Jacksonville said they closed for two days after Irma. “We still stayed open later and reopened earlier than the boxes, which gained us respect. If employees felt like they needed to leave, we let them. We got extra trucks from Ace and pre-sold two truckloads of generators. We were going in at 1:30 and 3:30 in the morning to get shipments of generators— we’ll be there whenever to accept something like that,” he said.

THANKS TO SPONSORS

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

The wholesale community also lends important support to the Conference each year, with representatives from Ace Hardware, Orgill, True Value and Do it Best in attendance and conducting meetings with their members.

At the end of the Conference the vendors auction off their display merchandise and the money raised is donated to the Miami Children’s Health Foundation. Over the years the auction has raised over $1.2 million for the cause.

Start making plans to attend next year’s Hardware Conference, scheduled for September 7-9, 2018, at the JW Marriott in Marco Island, Fla. For more information, call Craig or Shanti Cope at (305) 853-0049 or go to www.thehardwareconference.com. n

The Hardware Conference has long been billed as an event “Where Relationships Are Formed.”
Megan Nieto (left) has joined Craig and Shanti Cope on The Hardware Conference team.
Dan Akers of The Hardware Connection and Traci Johnson of ECi Software Solutions.

YOU SPRAY. IT STAYS.

12x

HARDWARE CONFERENCE

The honorees and sponsors of the 2017 Beacon Awards.

Click to Check Out the Highlights of the 2017 Beacon Awards Program

Beacon Awards Program Honors ‘The Best of the

Six independent hardware retailers were honored with Beacon Awards during a special awards banquet held during The Hardware Conference in Ponte Vedra Beach, Fla., on Friday, December 8.

Phillip Helms of Town & Country Hardware accepted the Beacon Award on behalf of so many people at the stores and at CNRG who work hard every day to ensure Town & Country Hardware is successful.

Do it Best Corp. Congratulates its Two Beacon Award Winners

Dalton Do it Center, Dalton, Pa.—Best New Store Under 20,000 sq. ft.

Owner: Doug Lacoe

John Zettler, Zettler Do it Best Hardware & Garden—Retail Beacon Award

Owner: John Zettler

BEACON AWARDS: The Industry’s Awards Program

(Left to right): Nick Beneke, Do it Best Corp.; Doug and Diane Lacoe, Dalton Do it Center; John Zettler, Zettler Do it Best Hardware & Garden; and Jason Hipskind, Do it Best Corp.

Bill Pastermack of Ace Handiman North credited his success to the dedicated efforts of his team.

(L to r): Jim Burkholder, John Kittell and Dave Atkins, Ace Hardware Corp.; Ruth and Don Hoff Jr., Harleysville Ace Hardware; Yesenia and Bill Pastermack, Ace Handiman North; and Scott Strausser, Ace Hardware Corp.

Tim Hanna of True Value Company, Willis Qualheim of Qualheim True Value and Chris Jensen of The Hardware Connection.

HARDWARE CONFERENCE

John Zettler of Zettler Do it Best Hardware & Garden proudly noted that fourth- and fifth-generation family members were in attendance to support him.

The Beacon Awards, now in their fifth year, are a premier national industry awards program developed by The Hardware Connection magazine and The Hardware Conference to recognize the “best of the best” independent hardware/ home improvement retailers.

The 2017 Beacon Awards were sponsored by Apex Tool Group, Epicor Software Corporation, Sunnyside Corporation, Rust-Oleum and Sashco, with wholesaler sponsorship support from Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Company.

The Beacon Awards honored the Retail Beacon Award

Ace Hardware Corp. Congratulates its Two Beacon Award Winners

Ace Handiman North—Best New

Store Over 20,000 sq. ft.

Owners: Bill and Yesenia Pastermack

Harleysville Ace Hardware—Retail Beacon Award

Owner: Don Hoff Jr.

(L to r): Jim Burkholder, John Kittell and Dave Atkins, Ace Hardware Corp.; Ruth and Don Hoff Jr., Harleysville Ace Hardware; Yesenia and Bill Pastermack, Ace Handiman North; and Scott Strausser, Ace Hardware Corp.

BEACON AWARDS: The Industry’s Awards Program

Honoring the Best Retailers

HARDWARE CONFERENCE

winners for each of the four participating wholesalers, plus the Best New Stores in two categories: under 20,000 square feet and over 20,000 square feet.

The 2017 Beacon Award honorees include:

• Retail Beacon Award: Phillip Helms, Town & Country Hardware, Raleigh, N.C.

• Retail Beacon Award: John Zettler, Zettler Do it Best Hardware & Garden, Columbus, Ohio

• Retail Beacon Award: Don Hoff Jr., Harleysville Ace Hardware, Harleysville, Pa.

• Retail Beacon Award: Willis Qualheim, Qualheim True Value, Shawano, Wis.

• Best New Store, Under 20,000 square feet: Doug Lacoe, Dalton Do it Center, Dalton, Pa.

• Best New Store, Over 20,000 square feet: Bill and Yesenia Pastermack, Ace Handiman North, Titusville, Fla.

“We have an outstanding group of Beacon Award winners this year. They all share similar characteristics of operating well-merchandised stores with unique niches and strong tradition of community involvement,” stated Chris Jensen, editor/principal of The Hardware Connection .

Juan Pacheco of Orgill, Phillip Helms of Town & Country Hardware and Chris Jensen of The Hardware Connection.
Jason Hipskind of Do it Best Corp., John Zettler of Zettler Do it Best Hardware & Garden and Chris Jensen.
Tom Chasteen (left) accepted the Beacon sponsor trophy on behalf of Sunnyside Corporation with Chris Jensen.
Royce Christopher of Epicor with Chris Jensen.

Town & Country Hardware, Raleigh, N.C.—Retail Beacon Award

Area Vice President: Phillip Helms; part of Central Network Retail Group Chad Murray, Orgill Inc.; John Sieggreen and Andrea Spencer of Central Network Retail Group; Phillip Helms, Town & Country Hardware; and Juan Pacheco, Orgill Inc.

John Hammond of The Hardware Connection , who joined Jensen onstage as a presenter, said the Beacon Award winners demonstrate that well-run independent retail operations can thrive in the midst of heavy competition. n

HARDWARE CONFERENCE

Upper Left: Darci Kunard of Sashco with Chris Jensen.

Upper Right: Jeff Kistler of Rust-Oleum with Chris Jensen.

Middle Left: Ryan Walker of Apex Tool Group with Chris Jensen.

Lower Right: Jason Hipskind of Do it Best Corp., Doug Lacoe of Dalton Do it Center and Chris Jensen of The Hardware Connection.

Lower Left: John Hammond of The Hardware Connection served as master of ceremonies along with Chris Jensen.

Value’s Tim Hanna (right) with Willis Qualheim and his daughters Karissa (left) and Casey.

THE HARDWARE CONNECTION WINS A MAJOR AWARD!

The Hardware Connection has been honored with the 2017 Eddie Digital Award from FOLIO magazine for Best Standalone Digital Magazine in the B2B Category.

For more than 20 years, the Eddie & Ozzie Awards have recognized excellence in magazine editorial and design across all sectors of the industry. FOLIO’s cornerstone awards program involved

more than 300 magazine professionals serving as judges to narrow 2,800 entries down to the winners across all digital and print sectors.

The 2017 winners were honored during the FOLIO awards luncheon in New York City on October 11. The Hardware Connection, which was founded in 2009, was one of the youngest publications cited for excellence.

Just Another Reason Why We Are the Industry’s Digital Leader!

IN THE NEWS

NEW STORES:

• Bucyrus True Value in Bucyrus, Ohio, has been acquired by E&H Hardware Group and will be renamed E&H Ace Hardware.

• Dazey’s Supply is acquiring Hubbards Hardware & Home Center in Medford, Ore., and Willow Creek Ace Hardware in Willow Creek, Calif.

• Kurt and Danelle Nelson have opened Masters True Value in Kearney, Neb.

• Great Lakes Ace Hardware has acquired McKay’s Do it Center in Holly, Mich.

• Houchens Industries has opened its 10th Ace Hardware store in Bowling Green, Ky.

• Larry Perry is selling Woodstock Home and Hardware in Woodstock, Vt., to Rick Bibens of Biben’s Ace Hardware.

• Revell Ace Hardware has opened its 7th store in Jackson, Miss.

• Brothers Market in Tonganoxie, Kan., has opened a 3,500-squarefoot Ace Hardware store within the grocery store.

• Sabrina O’Connell and Yvonne and Victor Vargas have acquired Brewster Drug and True Value Hardware in Brewster, Wash.

• Iowa Outdoors Hardware and Rental has opened in Fort Dodge, Iowa.

• Aubuchon Hardware has opened a new store in Williamstown, Mass.

• Quality Farm and Ranch Center is opening its fourth Ace Hardware store in McCook, Neb.

• Scott Jerousek, owner of Wellington’s Farm and Home Hardware, has acquired Home Hardware in Ashland, Ohio, from the Miller family.

• Sunshine Ace Hardware in Naples, Fla., has acquired Hammerhead’s Ace Hardware in Largo, Fla.

KUDOS TO:

• David Helfenberger is retiring as vice president-marketing at House-Hasson Hardware on January 8, 2018, after 34 years with the company. Helfenberger is credited with spearheading enhancements to the company’s circular, core assortment, store signage and store reset programs.

• Jamie Gentner of Center Hardware in San Francisco was honored as Businesswoman of the Year by the San Francisco Chamber of Commerce.

• Wendell and Allen Speller of Spellers True Value Hardware in Waterloo, Iowa, were honored as Businessman of the Year by KBBG public radio.

• Vashon Ace Hardware, owned by Doug Snyder and John Yates

David Helfenberger

IN THE NEWS

in Vashon, Wash., is celebrating its 40th anniversary.

• Five hardware stores were among 25 quarterfinalists for the 2017 Independent Small Business of the Year from Independent We Stand: Carr Hardware in Pittsfield, Mass.; Cornell’s True Value Hardware in Eastchester, N.Y.; Hardware Hank in East Grand Forks, Minn., Petersburg Hardware in Petersburg, Ind., and T&M Do it Best Hardware & Rental in Bellevue, Pa.

PEOPLE ON THE MOVE:

• Lowe’s Cos. has named Richard Maltsbarger COO.

• McCoy’s Building Supply has promoted Waylon Walker to senior vice president of operations and merchandising.

• Do it Best Corp. has promoted David McDonald to divisional merchandise manager and Christian Parra to international new business manager.

WHOLESALER IN THE NEWS:

• Ace Hardware Corp. was named a 2017 Top Workplace by the Chicago Tribune . The co-op also reported record 3Q revenue of $1.34 billion, up 9.1% from 2016. Net income of $53.8 million for the third quarter was up $3.6 million from last year.

• True Value Company reported

revenue of $364.4 million in the third quarter, up 0.3% from last year. Retail comparable sales were up 3.3% for the quarter, while net margin was flat.

• Distribution America and PRO Group held their annual Executive Planning Conference in Marco Island, Fla., in November. More than 2,600 face-to-face distributor and supplier meetings were held during the three-day event.

OTHER NEWS:

• The Ames Companies, a subsidiary of Griffon Corp., has acquired Harper Brush Works, a manufacturer of cleaning products.

IN MEMORY:

• Steve Johnson, former executive with the National Retail Hardware Association and American Hardware Manufacturers Association, died December 9 at the age of 66 after battling pancreatic cancer. He is survived by wife Beverly, three kids and seven grandchildren.

• C. Jay Buikema , former CEO of Buikema’s Ace Hardware in Naperville, Ill., passed away December 5 at the age of 78. A past president of the National Retail Hardware Association, he is survived by wife Dot, sons Kyle and Kerry, six grandchildren and two great-grandchildren.

JANUARY

Do it Best Corp. Winter Conference

January 18-19, Hilton La Jolla Torrey Pines, La Jolla, Calif.

Hardware Distribution

Warehouses Inc. Spring Market

January 19-21, Kay Bailey Hutchinson Convention Center, Dallas

International Builders’ Show

January 9-11, Orange County Convention Center, Orlando, Fla.

Northwestern Building Products Expo

January 22-23, Rivers Edge Convention Center, St. Cloud, Minn.

United Hardware Spring & Summer Buying Market

January 5-7, Minneapolis Convention Center, Minneapolis

FEBRUARY

House-Hasson Hardware Dealer Market

February 1-3, Opryland Convention Center, Nashville, Tenn.

LBM Advantage Annual Meeting & Trade Show

February 19-21, Gaylord Palms Resort & Convention Center, Kissimmee, Fla.

UPCOMING EVENTS

Northeastern Retail Lumber

Association LBM Expo ’18

February 14-16, Rhode Island Convention Center, Providence, R.I.

Orgill Spring Market

February 22-24, Orange County Convention Center, Orlando, Fla.

True Value Spring Reunion

February 10-12, Walter E. Washington Convention Center, Washington, D.C.

MARCH

Ace Hardware Corp. Spring Convention

March 15-17, Kay Bailey Hutchinson Convention Center, Dallas

Blish-Mize Spring Buying Market

March 23-24, Overland Park Convention Center, Overland Park, Kan.

Hearth, Patio & Barbecue Expo

March 8-10, Music City Center, Nashville, Tenn.

Home & Housewares Show

March 10-13, McCormick Place, Chicago

International Hardware Fair 2018

March 4-7, Koelnmesse, Cologne, Germany

For a complete listing of calendar dates, click here.

LADIES NIGHT EVENTS

REVOLVE AROUND FUN

It is hard to find a hardware retailer who has had an unsuccessful Ladies Night event. These events draw a crowd, they help attract new female customers and everyone ends up having a fun time.

Rod Pooler of Gray True Value in Gray, Maine, says, “We had fun with a pair of dice at each register. Whatever number the customer ‘rolled’ was the discount on their purchase. So 12 percent was as high a discount as anyone could get.”

On this page are scenes from Ladies Night events held by retailers around the country.

True Value

Ferdinand, Ind.

Upper: Caldwell Do it Best Lumber in Caldwell, Ohio.

Upper Middle: Caldwell Do it Best Lumber in Caldwell, Ohio.

Lower Middle: Miner’s Ace Hardware in Grover Beach, Calif.

Lower: Ambridge Do it Best Home Center in Ambridge, Pa.

Muller
in
Brandywine Ace Pet & Farm in West Chester, Pa.
Mapleton Farm & Home in Mapleton, Minn.

BEHIND THE NUMBERS

112 million

Number of people who went out to shop small on Small Business Saturday in 2016, according to American Express.

$15.4 billion Sales for Small Business Saturday in 2016, according to American Express.

24%

Percentage of holiday shopping consumers who plan to spend more this year, according to the National Retail Federation.

29%

Percentage of Thanksgiving holiday shoppers who used their mobile devices to make purchases, according to the National Retail Federation.

9.1%

Third quarter revenue increase to a record $1.34 billion for Ace Hardware Corp.

$200 million

Hurricane-related sales for Lowe’s Cos. in the third quarter.

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