The answer is simple… Outservice Your Competition!
Gain a real competitive advantage and better serve your customers with the Epicor Eagle N Series ™ retail software solution. From POS, built-in, real-time analytics and reporting to best-in-class inventory management and the convenience of mobile apps, Eagle N Series will help you Outservice Your Competition every time.
every
things that other people cannot, we do things other people aren’t willing to do and we rarely give up, even at times when we probably should. That doesn’t leave us a lot of time for planning. I encourage you to take a little time with a legal pad and pencil to plan where you want to go with both your business and personal life so you will hopefully get there.
In closing, I would also like to personally thank you and all of our 60,000+ readers for making our dream of building a successful hardware magazine written from a hardware retailer’s perspective a reality. The past seven years, with the help of my business partners Chris
Jensen and Dan Akers, have been really special building something from nothing and we are even more excited about the next seven years and beyond.
Thank you for all of your support, emails and suggestions. Keep them coming—it’s what has helped establish The Hardware Connection as the industry’s leading digital publication. The world is going digital and we’re helping lead the charge.
From our families to yours, each of us wishes you success and good health in 2016. Share your feedback with me or your plans for 2016, from one retailer to another, at tom@thehardwarestore.com . ■
e’re in a tough area and have to deal with shoplifters quite a bit. We have a code over the PA system for shoplifting. I heard that code and went through the store and saw my daughter having a problem with a customer. He was a big, 6-foot, 8-inch tall man, and I started escorting him to the front door. My daughter started to say something, but I just told her I’d take care of it. Finally, right before the front door, my daughter got my attention, stopped me and said: “Wrong guy!”
Kendall Crosby Kendall’s Ace | St. Paul, Minn.
WIe’re near a large retirement community. An older gentleman comes in looking for the old incandes- cent bulbs. Our salesman tries to explain the advantages of the LED bulbs, but then the old guy says, “Doesn’t matter, I’m not going to be alive longer than the bulb is going to last anyway.”
Chris Wolf Ace Hardware of Woodbury Woodbury, Conn.
added a store account for when we use stuff in the store. I went to one of my better guys and said, “Hey, we have a new process when you guys take things for store use.” He replied that he has a list that he keeps of products used in the past to fix things in the store. So he comes back with a list that he has been keeping…since 2012. We can’t account for it if he doesn’t turn it in.
Dean Impey Tri-B Hardware and Supply Rockford, Ill.
We’re near the old Nevada gold mines, and some people scratch around in the dirt as a hobby. In the rental department one evening, a gentleman comes in and wants to pay for a rental with gold dust. He got a little upset that we wouldn’t take gold dust as payment.
Matt Louie Louie’s Ace Home Center Fallon, Nev.
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Sales and customer counts in 2015?
Up, considerably. It’s kind of hard to say exactly because we moved into a new, bigger store. We just moved two blocks, but it was a big difference. We’re up at least 20 percent. We increased parking considerably. Before, we had angle-in parking. Now we have three acres of parking. We’re also on a state route instead of a downtown street, so that’s better for traffic, too.
Best niche categories?
We do really well with the Big Green Egg grill. We also have gift and sporting goods sections that have done well. We just started expanding the gift section. We sell a lot of wind chimes and candles. Women spend half or more of the money, and the traditional hardware store doesn’t have much to draw them in besides paint. The gift area seems to have worked, and a lot of customers are coming in just to buy gifts.
How do you combat theft?
We just did an inventory and had very little. More of our missing products may be just getting keyed in wrong than anything else. We do have a security system at night and high-definition security cameras on all aisles. What new items have been strong sellers?
We have just expanded more into housewares and that’s been strong. Our specialty keys have really taken off, with a whole line of key shapes that customers have been drawn to. Our best new item is QMT Windchimes, with Corinthian Bells® being the best seller in that line. They are made in Virginia.
Brad Plotner Plotner PRO Hardware | Richwood,
Ohio
Sales and customer counts in 2015?
Both were up about 3 percent. During the summer weather was good, and the snowy winter from last January and February helped. Because we had an extended fall, people were able to do outdoor projects.
Best niche categories?
Wood pellet stoves and drivethrough lumber business. Wood stoves, pellet stoves and gas stoves have been very strong for us for many years. From August through December, our stove business drives
a lot of sales. Other stores sell these stoves, but we have a big advantage because of our employees. Of the four guys selling stoves here, the one with the least experience has
10 years of selling and installing stoves. Our stove business brings in customers from as far as 50 miles away. How do you combat theft?
We have an up-to-date camera system, dedicated cashiers and long-term managers who look out for business. Our employees look after the store’s money as if it’s their own. Employees will be sure to circle around people, ask questions if they need help. That seems to curb some of it. This past summer we added a
new camera and server. Our old system was 10 years old and some of the cameras weren’t color. We also upgraded the alarm system at the same time.
What new items have been strong sellers?
We added a lumberyard last year. Craftsman tools and Ames snowmobile oil bring people from all around. Ace’s big push for LED has really helped us, too. In one month, we moved about 500 to 600 units of 60-watt bulbs.
Dan Diskin Crocker’s Ace Hardware
Le Roy, N.Y.
Sales and customer counts in 2015?
For sales, we’re up 16 percent, and we’re up 5 percent in customer counts. Part of the increase is that our stores are relatively new—five years and three years. Another part is that the economy is improving. People have more money to spend on higher-end grills, for instance. Ace has also had some good promotions recently, such as the Weber promotion this past summer.
Best niche categories?
Bird supplies and grilling. We bring attention to these categories by doing demos in the store and promote through social media. We also have an employee who’s very experienced at grilling and shares his expertise with customers.
There have been a series of breakins in this area. We do have an alarm system. Theft is difficult because you have to catch someone red-handed. We’ll follow people around the store who we think may be suspicious. Fortunately, our shrinkage is relatively small.
What new items have been strong sellers?
Kamado Joe grills have done well and we’ve also sold a lot of Clark + Kensington paint.
Eric Jensen
Cleveland Ace Hardware
Garner and Holly Springs, N.C.
Sales and customer counts in 2015?
Very good. We just moved into a new location.
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I would say we’re up 10 percent over last year and it’s mainly because of our new location.
Best niche categories?
We do well in housewares. When we opened 30 years ago, we always stocked housewares and have always done well. My mom and sister buy the housewares, and they have a really good eye for that.
How do you combat theft?
We try to watch people all the time, but it’s frustrating because you can’t watch everybody. The other day we found a padlock package where someone had taken it out. Right now,
we don’t have cameras. We just tell employees to keep an eye out.
What new items have been strong sellers?
Traeger pellets for wood stoves. They sell so fast it seems like we can’t keep those in stock.
Bob Bevans Littleton Ace Hardware |
Littleton, Colo.
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Sales and customer counts in 2015?
We’re doing a lot better, about 40 percent better. We moved to a new location, increasing our size from 5,000 square feet to 22,000 square feet. In our old store, we were all packed with products all over the floor. We couldn’t order efficiently. We’d outgrown the old place five years ago. The community is growing and there’s no big boxes coming in.
Along with lawn and garden, we do well with farm and ranch. Now we’re into feeders and fencing materials. The customers have responded well to those.
How do you combat theft?
Theft hasn’t been bad and we have the same percentage at our new store as at our old, smaller store. We installed cameras and sensor poles at the door. We’ll announce code words over the
Every so often a product comes along that creates what I refer to as an “aha” moment, where I suddenly realize how the concept can transfer into reality.
I have a close friend, Randy Kwist, who has been involved in the two-step hardware industry for over 30 years.
Randy recently joined a company called 2020 Technologies and he gave me a demonstration of one of 2020’s products called 2020 Design. I was immediately wowed. The 2020 Design product enables a home center or lumber dealer who has a kitchen and bath showroom to allow their customers to actually see their newly designed kitchen or bathroom in a panoramic format on a computer screen or a tablet as if they are in the room.
By Tom Chasteen
by using Google Cardboard and their smart phone they can now see their newly designed kitchen or bathroom in 3D.
If you are retailer who offers kitchen and bath design services you may already use 2020 Design or have heard about it. The latest version (the one I previewed) will be launched a couple of days after this magazine issue comes out. The new version not only allows the customer to see the design of their new kitchen or bathroom in a panoramic format, but
If you are a retailer with a kitchen and bath showroom and are not familiar with 2020 Design, I recommend you click on the links below and look at what is available to help your customers visualize what their new kitchen or bathroom will look like. Even if you don’t currently have a showroom or a design service take a look at the links below and visualize how retailers might handle special orders in the future, design a new house, or order a new car, truck or boat.
The possibilities are truly limitless and the ability to allow our customers
to see something in three dimensions without even holding the product is pretty cool. The only thing I can think of that would be better is to actually have a hologram where the customer can interact with the image much like the holodeck in the Star Trek series. Talk about science fiction helping to create reality—the technology is closer than you might think.
As this technology continues to evolve, home improvement retailers could significantly increase the number of products they offer at a fraction of the cost compared to actually stocking the merchandise. Allowing customers to
interact with the finished product before they actually buy it certainly reduces the customer’s reluctance to special ordering a product.
A tip of the hat goes to 2020 Technologies for having the vision and the commitment to develop the new 2020 Design. Those of us who have a difficult time envisioning what something will look like or how it will work without actually seeing it can now understand it better.
For more information on 2020 Design click here.
To see a video demonstration click here.
By Chris Jensen
After discovering his former bookkeeper embezzled about $66,000 from him over an 18-month period between 2004 and 2006, Marc Gillson now handles the bookkeeping himself. “We had procedures in place, but we didn’t follow them,” says the third-generation owner of Mount Pleasant True Value Hardware in Providence, R.I., in a cautionary tale for other retailers.
Some early warning signs were overlooked: checks that did not appear in bank statements and cash sums listed on bank deposit slips that did not match amounts deposited. “When you have an employee that goes beyond what you normally expect and always volunteers to stay late, then you should be guarded—maybe they are disguising something else,” says Gillson, whose grandfather started the business in 1923.
This bookkeeper had been with them for a long time, working first on the sales floor and
as a cashier. “Who knows what she took from us there,” Gillson comments. “Then when our old bookkeeper retired she volunteered to take classes and learn how to do the books for us.”
Gillson noticed that when she handled payments for U-Haul truck rentals that the cash didn’t seem sufficient for the transaction. “It should have sent off warning signs, but we did change some procedures. It just made her change the way she stole from us, so the next round was different,” he adds.
As Gillson explains, “Things kept coming up and we’d say, ‘I can’t believe it.’ We went back through all the paperwork and discovered her patterns of deceit, then took it to the police. They said we had to do our own investigation, so we took it to our accountant. Again, we didn’t want to believe it to be true. Did she really do this to us?”
Luckily Gillson was not overextended in the business, but he had struggled to figure out why their numbers were worse off those years. “For the first time we weren’t able to hand out Christmas bonuses to the staff. Then we saw that in the second week of February she stole $2,800 from us, so we knew we had a thief working for us.”
The first time they went to court the trial ended with a hung jury. “Even the judge was flabbergasted. The bookkeeper’s main defense was that it had to be the owner who was stealing money from the business,” says Gillson, unable to disguise his disgust
Over the years I have found several ways employees can embezzle money from a store. The first and most prevalent way is bogus cash returns. It is pretty easy for an employee to return a few items, keeping the return ticket amount under $100 and probably not raising a whole lot of suspicion. Depending on how your point-of-sale system is set up, you can implement steps to reduce this type of theft. Require that your employees who are doing returns capture the customer’s name, address and telephone number. If possible, have a member of your management team verify all returns. Spot check anything that looks suspicious. Calling a customer about a return is a service to them as much as it is a form of loss prevention for you. Another way employees embezzle money is pulling bills out of money bundles. I periodically count all the money in my safe. I verify every drawer that is preloaded to go into a register has the right amount of money in it. I also check all my cash bundles, ensuring that they all have in them what they are supposed to.
Mike Davies
Bloedorn Lumber Co. Cheyenne, Wyo.
Watch out for pieces of paper with numbers or letters near the register or loose coins near the register or in the non-used part of the cash drawer insert, as this could
at something that happened nearly a decade ago.
So he went back and looked at all the credit card receipts. He pulled the records from when he took the entire family on a cruise and had all the books done before they left. “We left on a Monday and this bookkeeper rewrote all the deposit slips that very day and stole a bunch of money, and we were able to prove that it couldn’t have been a family member because we were all away on a cruise,” Gillson says.
She was found guilty in the second trial. “At her sentencing we were prepared to recommend no jail time, believing that everyone had suffered enough
After seeing his bookkeeper steal about $66,000 from him over an 18-month period, Marc Gillson, owner of Mt. Pleasant True Value in Providence, R.I., now handles his own books.
and that we just wanted restitution,” Gillson explains. “But the woman and her lawyer got up and started accusing us again of being the real thieves. Since she showed no remorse, we changed our mind and told the judge we wanted her to do some time in jail.”
and Hardware
be a code for storing up cash. Then at the right time, their code will tell them how much money is waiting for them in the drawer. If there is a dime somewhere out of place, it could mean that they were able to take care of a $10 sale without giving a receipt and now have a $10 bill waiting for them.
Lou Bastone Chappaqua Paint and Hardware
Chappaqua, N.Y.
Pay special attention to defective returns, since they will not throw off your inventory counts. Another scam is to have an account where the employee buys things and then puts in “fake” back-office payments or writes off balances. Stay on guard all the time. Have cameras and make sure you cover the registers, the safe and back door. Drop the over cash from the drawers regularly, never leaving too much money up there. Review returns regularly. If you do suspect such activity, hire an outside firm that specializes in this type of activity. Computerize and look for discrepancies in inventory. Mango is a good source for assistance in inventory values.
Rick Schwartz Schwartz Ace Hardware
Fall
River, Mass
The former bookkeeper was sentenced to six months in jail and given six months home confinement, followed by 14 years of probation. She was ordered to pay back nearly $66,000 in restitution to the Gillsons, which she is slowly
Installing surveillance cameras is a good way to deter employee and customer thefts.
doing with a minimal amount each month.
Since True Value has a system that makes it easy to do the books yourself, Gillson no longer has to worry about who’s watching over his money. “After what happened to us, it’s just too hard to trust someone,” he says.
After news of the embezzlement came out Gillson had several local business people come up to him and say they had a similar experience. “It’s very disturbing to think that you can’t really trust anyone. If you can’t pay bills, you can’t get inventory and without inventory you can’t make sales, so it starts a vicious death spiral for your business if you don’t stop it. Luckily we’ve recovered and our business is solid now,” he says.
Using a cash drop box at the checkout station removes some of the temptation from cashiers.
The biggest embezzlement stories I’ve heard involve a trusted person in the office producing dummy invoices from a fake vendor and then paying himself or herself. Stories range from $30K or $40K up to $500K. The solution is to have two parties sign checks. It wouldn’t hurt the owner to know a little something about his vendors and even if a person is “trusted,” a good policy is trust but verify. To allow a trusted person into your checkbook with no oversight is insane. Another oldie but frequently done: cashier temporarily running under training mode and pocketing the cash, then reverting to normal operation.
Cash drop safes are a good idea. Cashiers log their drops into a common safe under the counter with a cash slot in the door. Rather than let money accumulate in the drawer always dropped in $100 increments with cashiers having no access to the cash safe. Also limits the amount a potential thief can grab and run.
Dick Beal
Retired retailer
Merritt Island, Fla.
There is a bit or an option to stop employees from going into training mode. I cut that off years ago and the only one that can do it is management. Watch for change sitting on or around
charbroil.com
Gary Calvin, owner of Cedarville Ace in Cedarville, Mich., knows how Gillson feels. He had an employee who was charged with stealing between $20,000 and $50,000 in 2010 and 2011 via phony returns and pocketing cash, although Calvin says the actual amount was about $65,000.
Cedarville Ace has been around for more than 65 years. Calvin’s parents used to run it, but he came back eight years ago when they were elderly and took over the business. Shortly after that, he unwittingly hired a thief.
“I kept wondering why we didn’t have as much sales and income in 2011. In talking with other retailers, we felt we should have been up but we weren’t,” he explains.
Calvin recalls one night when this employee was left in the store by himself (it’s a small store). “The next day I asked him how things went and he said it was real slow. I looked at our POS and discovered the last hour there was a deficit—there were more returns than sales,” he says.
“If someone is out to deceive you, then they are going to find a way.”
—Gary Calvin, Cedarville Ace
the register. They will leave coins out to keep track of how much to take from the register later.
John Kidd
We have our store charge account with several jobs set up for anything from defective merchandise and stolen, to donation account and shop use. Every invoice gets emailed to several people including myself, my parents and the bookkeeper. I review 98% of them—only takes a second. Started doing this because I couldn’t figure out why one of our part-timers kept charging out bike parts to the store. Of course, I didn’t come across it until after he’d quit.
I go over our price exception sheet every day. It lists returns as well. I go over our weekly order pretty closely. Only a select few of us have the ability to change Quantity on Hand or pricing. The others don’t know that I have ways of seeing when this happens. Myself or my parents are the only ones that sign checks.
I don’t check Quickbooks as much as I should, but dad is in there and in our bank accounts a minimum of three times a week. I offer $100 to any employee that catches a thief and $500 to any employee that catches another employee stealing. I am constantly asking questions as to why someone does something. Even if
What was even more unusual was the fact that someone had returned a $250 roll of Romex wire. “We don’t sell a lot of that, so I looked at our sales history and found multiple returns of that item. In fact, there were more returns than sales,” Calvin points out.
Determined to get to the bottom of the situation, the first person Calvin questioned was the bookkeeper, who didn’t notice anything amiss. “If someone is out to deceive you, then they are going to find a way,” he says.
Calvin went to the local police and prosecutor and they started investigating. “They didn’t want us to confront
The bookkeeper of this Vermont store was charged with four felony counts of felony grand larceny, for allegedly writing store checks totaling $11,600 to pay personal credit card debt.
this employee yet, but they installed microscopic cameras by the checkout. It took a while to get proof, but we got clear video of him stealing from us,” he says.
This employee started off taking small amounts here and there, and then it started adding up to hundreds
of dollars each day. That level of deception can be a death sentence to a small business.
Faced with the video evidence, the employee still denied he had been stealing. Although he pled not guilty with his first lawyer, he later switched lawyers and eventually pled guilty. He was ordered to make restitution over time, which Calvin says he really has not been doing.
“The whole situation was upsetting, but what can you do? It was mostly by chance that I caught it. You have to be aware of what’s going on in your business and pay attention to your POS software,” Calvin advises.
When Calvin comes across articles about embezzlement it’s a jarring reminder of what he endured. “The unfortunate thing is that this employee was good with customers and always showed up for work. I guess he was pretty eager to show up and steal from us,” he says. n
what they did isn’t out of the ordinary, they know I’m looking at things.
Brandon Buckalew
We have cameras in the store. Every now and again I send out a vague message saying, “I see you texting.” I never address who I see or when or where. This keeps them on their toes as to me watching them. I point out that when we lose money or something gets stolen, it’s so much harder for me to give raises.
Brandon Buckalew
East Grand Forks Hardware Hank East Grand Forks, Minn.
A couple things that have happened to us over the years:
• Voids—cashier was voiding transaction at the end of sale and pocketing cash when customers paid cash.
• Gift card activation—we had a manager activating gift cards for an employee rewards program who was using those gift cards for personal purchases. • Cash returns on items that were never returned, so our counts were off.
All of these issues now have a double-check and triple-check procedure in place.
If you do your accounting on the Epicor system I was given these suggestions at a seminar on embezzlement, but it’s probably good practice for any other system:
1. Don’t allow accounts payable clerk access to void checks.
2. The person writing checks cannot balance the bank statement.
3. The person writing checks cannot set up new vendors.
Mo.
Bart Raser is proud to carry on the family tradition started by his father, Marshall, who bought the business in 1962.
OClick to Learn the Secret to Carr Hardware’s Success in the Berkshires
riginally founded by Sam Carr in 1928, Carr Hardware was purchased by the Raser family in 1962 and day-to-day operations are still handled by Marshall and his son, Bart.
Carr True Value Hardware Pittsfield, North Adams, Lee and Gt. Barrington, Mass.
Over the years Carr True Value Hardware has diversified its revenue stream by expanding to four stores and going after contractors, commercial customers, institutions and government agencies throughout Berkshire County, the entire state of Massachusetts and the surrounding areas of New York, Vermont and Connecticut. Carr Hardware is a supplier for the Massachusetts Higher Education
Wholesaler: True Value
Number of stores: 4
Salesfloor square footage: 4,000, 10,000, 14,000, 17,000 sq. ft.
Sales % Pro vs. DIY: 51% pro and 49% retail if you add institutional and industrial with large contractor.
2015 sales: 4.5% increase.
Number of employees: 85
Top core categories: Paint, electrical and plumbing. Most successful niches: MRO and rental.
Consortium and one of the select vendors holding a statewide industrial and builder’s contract with the Commonwealth of Massachusetts for Maintenance, Repair and Operations (MRO).
Carr True Value Hardware was featured on the TV show “Undercover Boss” in late 2014, as True Value President and CEO John Hartmann went undercover to pose as a customer service associate at the store.
Middle Right: Carr Hardware was featured on the TV show “Undercover Boss” when True Value CEO John Hartmann went undercover.
Lower Right: Carr Hardware’s stores range from 4,000 to 17,000 square feet.
What was the experience like having your store featured on the TV show “Undercover Boss?”
“Undercover Boss” was an amazing experience and although I can’t speak to the specifics, I can say that (manager) Chris Juras represented Carr Hardware well and we’re very proud of him. Sadly, shortly after the show aired the job offers started pouring in
Right Upper: Carr Hardware’s store in Lee, Mass., has a strong niche in STIHL power equipment.
Right Lower: Party rental, along with tool and equipment rental, is a strong trafficbuilding niche at three of the Carr Hardware locations.
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• Easy to use – simply wipe on the stain & nish and wipe o excess with a clean rag
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• Comes in 5 beautiful wood tone colors
and Chris pursued newer opportunities. Obviously, the exposure has been great for our business and we think the Undercover Boss’ experience is consistent with our customers’ shopping experiences when they come into Carr Hardware.
Biggest challenges facing business? Demographics in our market are challenging. Our population continues to age and shrink. Jobs are leaving the area as well. This not only affects our customer base but also our ability to find good young talent to hire for our stores.
How do you keep customers buying local? We strongly support and encourage shopping local. In fact, we were recently named a top 10 finalist for the “Indie award” from Independent We Stand.
What are the most effective methods you use to find new employees? Our most effective methods for recruiting people include: asking our customers and vendors for recommendations, an incentivized internal recruiter who is paid per hire and an employee incentive here also.
What kind of employee incentive programs do you offer? Our outside sales force is fully incentivized and our store managers have specific key performance indicators that they are measured on. When they meet or exceed these goals they earn bonus pay.
What are your most effective methods for combating customer theft? We have camera systems and in-depth shrink training. At the end of the day great customer service and awareness are still the best deterrent.
What lessons have you learned about retailing over the years? Lesson one: We must constantly
Upper: Plumbing is one of the top-selling departments.
Lower: Commercial/industrial and MRO sales comprise about half of the revenue.
evolve our business as the retail model changes. Customers today know more. They come into our stores and have often already done the research, where historically they have relied much more on our staff’s expertise. This means the shopping experience has to be that much more spectacular. Knowledge and expertise is not enough by itself anymore, customers have many choices, and we must truly excel at executing a top-level service experience for every customer who walks through our doors.
What is the smartest thing you did in the past year? Surround myself with people smarter than me.
What is the secret to success in commercial/industrial sales? Relationships.
What other family members are involved in the business? My 87-year-old father, Marshall, is my boss, my mentor and still my hardware idol. n
By John Fix III
All hardware retailers know the hassle of trying to prevent shoplifters. Unfortunately, too many of our customers think nothing of helping themselves to our hard-earned profits. Retailers recently shared their strategies for combating customer theft on Hardlines Digest.
Eric Jensen with Cleveland and Holly Springs Ace in North Carolina reported they have had a series of break-ins in their area with two guys exclusively taking STIHL product. He posted, “Between a half-dozen dealers and a few dozen thefts they’ve gotten probably $30,000 of product and growing as they get more product as they learn. We have alarms in both our stores, but unless an officer is near the store the crooks are in and out too quickly. It’s ugly but I’ve put DOT chain around everything.”
Jensen wondered what’s the best way to secure the front and back doors, whether he should invest in the rollup steel cages for glass doors and whether steel back doors are secure enough without reinforcements.
Kenny Rowland of Young’s True Value Hardware in Columbia, S.C., replied,
Make sure you have a sign that lets customers know they are under surveillance.
“After being victimized several times ourselves by smash and dash at night and snatch and dash during business hours we resorted to cabling our units to the display day and night. We use a 3/16” coated cable and keyed alike padlocks to slow down the pros. Our front door has an additional bar that padlocks to the handles to further slow the door crashers.”
Rowland added, “One common thing I noticed from some of the worst losses is the location of the equipment being grabbed. Most of the quick thefts were units near the front of the store with easy access. At night we bring in displays from out front and place them between the front door and the power equipment to further slow the thieves. Handheld equipment displays were moved further back in the store.”
Pat Maahs of Beisswenger’s Do it Best in New Brighton, Minn., noted that they have a steel back door with a guard that overlapped the frame by the lockset and thieves still used a crow bar to open it. “We now have modified 2x4 brackets that we carriage bolted through the door and put a bar, a 1-½ x1-½ perforated steel square tube, in the brackets every night. The fire department needed to know we did this as they would not be able to use this door for access during a fire at night.”
John Keely with Re-Source in Kansas posted, “You really don’t want a confrontation. Eventually these guys do something stupid and get caught or one of their friends rats them out. Install high-quality cameras and good lighting inside and outside, especially from many angles of valuable merchandise desirable to a thief. And don’t forget to check your business neighbors’ camera systems to see if they pick up anything.”
Retired retailer Dick Beal responded, “Faced with a similar situation I felt the alarm was too wimpy to scare off any robbers. I decided that rather than try to catch them I’d take a different route and invest in the loudest alarm possible. Hooked up the alarm to an amplifier and speakers, front and back. When the alarm sounded you could hear that thing for miles. After that had some attempts, the alarm tripped but nobody ever stayed around long enough to get inside.”
To protect his STIHL inventory, Matt Fabian of Turner, Pierce & Fultz Ace Hardware in Navasota, Texas, installed single saw locks and wire shelf locks.
Beal added, “A number of stores have experienced thieves breaking in through an exterior wall or coming down by rope through a hole in the roof. My alarm company thought like thieves by installing motion detectors near power tools and aimed at the office safe. Also, glass break detectors should trigger with a strong vibration of the glass. 3M markets a clear security film that substantially strengthens plate-glass windows. I put it on mine and was called in for an alarm and found somebody had bounced a concrete block off one of my front windows, which did not break but sounded the alarm.”
Keely added, “Always make sure that you never lose sight of their hands and pockets once they have concealed something, not even for an instant. Wait until they have cleared the registers and are just outside the doors so they have every
Designed for professional women and men in the two-step hardware industry to exchange ideas, educate, network and provide support and access to opportunities to further careers and help grow the independent channel.
• Independent Hardware Store Owners and Managers
• Vendors Involved in the Two Step Hardware Industry
• Service Providers Involved in the Two Step Hardware Industry
• Wholesalers/Distributors
• Industry Professionals
• Membership benefits include up to six networking events per year held in conjunction with other industry events.
• Each event will have a business focus offering direct and immediate benefits.
• Vendor and Service Providers will have the ability to interact with business owners and others in management positions sharing experience, concerns and solutions.
• While focus is on women and their opportunities, men are welcome and encouraged to participate to better understand and lend their perspective of the industry.
opportunity to stop and pay. Never accuse them of stealing. Some people try to set up shop owners for lawsuits. You could have somebody bird dog them though the store and let them know they are under suspicion, so you avoid a direct confrontation. Once they get the idea they’ll move on to greener pastures. Not so subtly take their picture with your phone. One time I was following a guy who had taken screwdrivers, but I had lost sight of him around a corner. I went up to him as he left the store and told him I was with store security and asked whether he saw anyone shoplift screwdrivers. He went white as a ghost and bailed. I still remember the look on his face. Never saw him again.”
Gary Hanson of Cardinal Hardware in Kalispell, Mont., posted, “Without saying I saw you put something in your pocket, you can do like the police and ask ‘Can I see what is in your pockets?’ When they pull you over a police officer will always ask ‘Do you know how fast you were going?’ If you answer anything above the speed limit, you have admitted guilt and that can be used in court. So practice using openended questions and think of what their response may be and how you can ask the next open-ended question. It does take some practice. Also, your courthouse should have a form that you can have people sign that notifies them they are not welcome and if they come back it will be considered criminal trespass.”
Ed Tisdale, retired hardware store owner from Southwest Florida, used to have a 16 camera DVR system. “Were we to do this again we would buy the best possible quality, high-resolution camera to capture the customer face at the register counter, leaving the counter heading to the front door and at the front door pointing toward where customers stand in the register line. All customer thieves enter the store at the front near the registers, so you’ll have high-quality photos/video of everyone. I told my employees if they suspected someone of stealing to note the day/ time of day/department area in which they were observed. The in-store cams, at much lower resolution, would let you see if someone was stealing, but it was always too late to catch them in the act and not good enough clarity to prove in court,” he posted.
Tisdale added, “With a high-quality, close-up camera at the register/front door, I can always capture a photo for our ‘be on the lookout board’ posted for employees. Several times a register operator or floor manager alerted me by saying one of our ‘photo people’ was in the store. One resulted in an arrest (tried to steal again and was caught), several were good enough to show them to the customer so they would understand why they were invited to begin shopping our competitor since they were no longer welcome in our store. We also kept a monitor of all 16 cameras going
24/7 so customers and employees knew they were on camera. ”
Matt Fabian of Turner, Pierce & Fultz
Ace Hardware in Navasota, Texas, shared the following post: “The front of our store is all glass. For 80 years we had no issues, but in January 2015, we had two break-ins. They busted the glass and grabbed about eight STIHL chainsaws each time. Around $4,000 in merchandise and damages.”
After going through that experience, here are Fabian’s thoughts on burglary prevention:
Cameras: We have HD cameras that I installed. Cameras are great; they help in so many situations. But having the whole break-in on camera did not deter the theft or help catch the thieves. They were completely covered up head to toe. There is only one frame where we can see what race they are. I think cameras are wonderful and every store should have them, but they only record what has already occurred, thieves and merchandise are long gone.
Locks: STIHL makes a lock for chainsaws. Costs about $40 each. It clamps to the wire shelf and uses a special tool for the bolts. Even has a lock for the shelf itself so it cannot be taken out of the uprights. We did this and I’m very happy with it. Looks nice, keeps chainsaw in place and saws cannot be stolen during day or night.
Alarm system: For the first break-in, I had forgotten to arm the system when I closed up that day—oops. Second
Surveillance cameras are a good deterrent even if they are not operational.
break-in, it was on but never went off. The alarm system was installed by a company that does residential and the alarm only comes on when a door opens. One motion sensor in the back where thieves didn’t go. No doors opened so no alarm. We have since had a commercial company beef up the system with lasers and motion detectors across the front. Also have strobe lights and loud alarm added to front of building.
Fabian thinks the best way to prevent theft is with physical barriers, like metal doors or locks and cables. “Cameras and alarm systems are great, but they cannot physically prevent an item from being taken. Yes, you can use the pictures. I’ve put a lot of time into installing a very good camera system over the past few years, but nothing beats having an item under lock and key.” n
John Fix started the Hardlines Digest in 1996. The list was run for many years using servers in John’s hardware store, but recently the list migrated to Google Groups. There are currently more than 1,500 subscribers reading Hardlines Digest. To read more or subscribe, go to www.hardlinesdigest.com .
a growing community of thousands of
“I created Hardlines Digest in 1996 as a way for my fellow retailers to swap tips about the nitty-gritty of running an independent hardware store. Today, it’s grown to a community of thousands of independent hardware store owners just like you. I hope you’ll join today and start sharing your own expertise.”
John Fix Owner, Cornell’s
Hardware Eastchester, NY
By the time September rolls around, don’t you think you’ll be ready for a break? The 2016 Hardware Conference, set for September 9-11 at the Marco Island Marriott in Marco Island, Fla., offers the perfect opportunity to find ways to improve your business while having lots of fun at a five-star resort right on the Gulf of Mexico, with miles of pristine white beaches.
Craig and Shanti Cope, along with Tom and Dale Chasteen, will be marking the 28th anniversary of hosting the Conference. The Hardware Conference is a family-friendly, affordable event that brings independent dealers together, regardless of wholesaler affiliation.
The industry’s premier event for the independent retail hardware channel offers an awards program that was
Left: The Hardware Conference is held each September at the beautiful Marco Island Marriott right on the water in Marco Island, Fla.
Right: The Hardware Conference is truly a venue where long-lasting relationships are formed.
developed three years ago to recognize the “best of the best” retailers. The Beacon Awards are co-sponsored by The Hardware Conference and The Hardware Connection. Additional sponsorship support comes from Apex Tool Group, Sunnyside Corporation, Epicor, Sherwin-Williams Diversified Brands Division, 3M, Ace Hardware, Do it Best Corp., Orgill and True Value.
In addition to Retail Beacon Awards for each of the participating
Kelly Rodarmel of Woodland Do it Best Hardware is shown making his acceptance speech for the 2015 Beacon Award, which honors the industry’s most outstanding retailers.
wholesalers, the awards banquet honors the industry’s best new stores. The 2015 winners for Best New Store were Woodland Do it Best Hardware in Woodland Park, Colo. (over 20,000 square feet) and Brady and Cavany Ace in Tunkhannock, Pa. (under 20,000 square feet). Whether it is an existing retailer opening a branch store or a newcomer opening a ground-up business, these new stores represent the future of the industry.
The 2016 Beacon Awards banquet will be held Friday evening, September 9, at the Marriott Marco Island. Winners will receive all-expense paid trips for two to the 2016 Hardware Conference including conference registration, airfare, hotel and meals. They will also receive a special Beacon Award plaque and be featured in an article in The Hardware Connection.
Get your nominations in now for the Best New Store category—the entry deadline is June 1, 2016. For more information on the nomination process,
contact Tom Delph, Beacon Awards program director, at tdelph@thehardwareconnection.com.
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.
“I always appreciate the variety of opportunities offered to us not only to educate but to enlighten us relative to what is going on with our fellow ‘hardware people.’ I love the roundtable discussions and all the valuable input from the group. I just always have such a pleasant time and love being able to visit with all of our ‘hardware families’ and friends,” says Alan Baro of Baro Hardware in Miami, Fla.
The Conference is designed for the whole family, with plenty of free time for fun activities such as golf, sailing, shelling and walking on the beautiful sandy beach. For more information, go to www.thehardwareconference.com.
Sales of Spray Paint (Independent Hardware Channel)
12 Months % Change vs. Year Ago
Source: Vista Information Services, div. of Epicor Software Corp.
Unit Sales Breakdown for Spray Paint Total of 1,215 Items with Sales
Sherwin-Williams announced Alabaster (SW 7008), a hue symbolic of new beginnings, as the 2016 Color of the Year.
“Alabaster represents a straightforward and necessary shift to mindfulness, well-being and an atmosphere that is pure,” said Jackie Jordan, director of color marketing for Sherwin-Williams. “It provides an oasis of calmness, spirituality and ‘less is more’ visual relief. Alabaster is neither stark nor overly warm, but rather an understated and alluring hue of white.”
Hotly debated as to whether it is a color at all, white has a strong connection with pureness and light across many cultures. At a time when homeowners are faced with excess and clutter, and may be overwhelmed by the commotion of technology, Alabaster encourages a time to relax and re-examine.
A recent homeowner study stated that nearly 3 out of 4 (73%) prefer Alabaster’s naturally flattering, barely-there
Left: Paint products are displayed on an endcap at McLendon Hardware in Renton, Wash.
Right: Paint is one of the top categories at Shuman-Owens Supply in West Columbia, S.C.
undertones to a plain white when selecting neutral colors for their homes.
Alabaster can be used as a monochromatic statement, or it can be paired with any other hue as the ultimate complementary color.
Drawn from Pura Vida, one of the four palettes in Sherwin-Williams Color Forecast 2016, Alabaster represents the prominent use of light. Alabaster also pairs nicely with Scandinavian décor influences including sleek lines, copper metallic finishes, marble and wood grain materials.
Alabaster stands alone in a chic entryway or home office, or forms a harmony with contrasting dark colors, such as Urbane Bronze (SW 7048) or Gray Area (SW 7052) in a spa-like bathroom.
Alabaster is the true neutral to set the tone for 2016.
Warmer grays turning to khaki and blushed neutrals will also be in style, as will shimmering pewter, dashing greens, sophisticated plums and icy blues, according to the Sherwin-Williams Color Forecast 2016. For more info, click here: http://www.sherwin-williams.com/architects-specifiers-designers/inspiration/ color-forecast/2016-color-forecast/
• First EPA-registered microbicidal paint that kills greater than 99.9% of Staph, MRSA, E.coli and VRE bacteria after two hours of exposure on a painted surface.
• Lasts up to four years as long as the integrity of the surface is maintained.
• Can be applied on interior hard, nonporous ceilings, walls, doors and trim. It is ideal for a variety of settings such as healthcare facilities, athletic facilities, schools, day care centers, senior care communities, residential housing, hospitality settings and cruise ships.
• Featuring quality coating performance, great hide and durability, Paint Shield is available in 590 colors and comes in the popular eggshell finish. Sherwin-Williams www.swpaintshield.com 800-474-3794
• The PDA363 Type 1 Aluminum Podium Ladder offers the same reach as a 5’ stepladder and is ideal for painting and projects that require working in any direction at fixed heights.
• Podium deck size is 14.5” x 16.5” with wraparound guardrail for security.
• HolsterTop® with Lock-in System secures tools to increase productivity.
• Features 250 lbs. load capacity, EDGE® bracing system, slip-resistant TRACTION-TRED® steps and sturdy paint can holder on back side of top. Werner Company www.wernerpodium.com 888-523-3370
• Able to cover large areas and reach into corners with complete control, achieves 30% faster results and has improved clog-resistance.
• Has extra fine grains for sanding between coats or final surface sanding prior to painting.
• All AeroSander items utilize a strong, VELCRO® hook-and-loop fastener system, which prevents the paper from tearing and curling and allows for quick changes.
• Its stable 360-degree pivot joint enables the AeroSander to maintain full surface contact without catching, gouging or rolling over. The sturdy, fiberglass-reinforced nylon base weighs less than metal sanding tools, reducing fatigue.
The Wooster Brush Company www.woosterbrush.com 800-392-7246
• Made in the USA, Chalky Finish aerosol paint creates an ultra matte, nonreflective finish with slight texture and can be used on most indoor and outdoor surfaces.
• Features strong adhesion in a durable finish that resists fading and moisture.
• Chalky Finish aerosol paint is fast drying, easy to clean up and sandable, needing no primer.
• Comes in a variety of colors and conforms to ASTM D 4236.
• Stefan Benson opened his second Ace Hardware store in Frederic, Wis.
• Skip King is opening his fifth store, Lockwood Ace Hardware, in Lockwood, Mont.
• Harvest Ace Hardware opened in Bedford, Mass.
• Ace Hardware is opening in Hastings, Minn.
• Frattallone’s Ace Hardware is opening its 21st store in St. Anthony Park in St. Paul, Minn.
• Dennis and Liz Driscoll opened Driscoll’s Home Center in West Pittston, Pa.
Driscoll’s Home Center
• Robinson Ace Hardware in Guilderland, N.Y., is acquiring Olsen’s Ace Hardware and Garden Center in Slingerlands, N.Y.
• Ace Hardware of Central Illinois has acquired its 12th store in Dwight, Ill.
• Gina Schaefer and Marc Friedman are opening their 11th store, Adams Morgan Ace
Hardware in Washington, D.C.
• Kopetsky’s Ace Hardware is opening a new store in Orange City, Iowa.
• Tom Felker is opening an Ace Hardware store within Snyders Pharmacy in Oregon, Ill.
• Northwest True Value
Hardware is opening its ninth store in Christiansburg, Va.
• Riverhead Building Supply has opened three new locations after acquiring Nassau Suffolk Lumber and Thurber Lumber in N.Y.
• Frontier Building Supply has opened a new store in Coupeville, Wash.
• Star Hardware has acquired Manchester Hardware in Manchester, Conn.
• Rocky’s Ace Hardware has acquired Rogers Ace Hardware in Bath, Maine.
• Central True Value in Moncks Corner, S.C., is celebrating its 40th anniversary.
• John W. Putz Hardware in Bay City, Mich., is celebrating its 100th anniversary.
• Kabelin’s Hardware in Granger, Ind., which was destroyed by a fire last August, is reopening in March.
• Ottawa True Value moved to a new location in Ottawa, Ohio.
• This year The Wooster Brush Company is celebrating 165 years of being a leading manufacturer
The Hardware Ambassador ProgramTM was created to bring the hardware industry together to promote the independent hardware retail channel as the most efficient and profitable channel to distribute hardware and home improvement products and services.
• View Vendor Product Listings by Wholesaler
• Ability to Download Product Listings by Wholesaler Directly into Retailers’ Point-of-Sale Computer Systems
• Check Out Vendor Profiles, Informational Videos & Product Reviews
Click Here to Learn More and View Vendor Product Listings by Wholesaler
in the paint applicator industry. Established in 1851, Wooster Brush founder Adam Foss started business by hand-making brushes and selling them doorto-door in Wooster, Ohio, where the company’s headquarters are still located. Today Wooster Brush encompasses over 888,000 square feet of manufacturing, shipping, administrative and warehousing facilities.
• Iron City Hardware in Ironton, Ohio, is celebrating its 90th anniversary, led by third-generation owner Jim Hacker.
• Fiest True Value Hardware in Canton, Ohio, is celebrating its 70th anniversary.
• Sherwin-Williams is celebrating its 150th anniversary this year. It started in 1866 with the first can of paint packaged in Henry Sherwin’s patented resealable tin can.
• STIHL Inc. has promoted Mark Scavillo to vice president of finance and information services.
• Home Depot has promoted AnnMarie Campbell to executive vice president of U.S. stores.
• Do it Best Corp. announces the promotion of Cindy Hixson to merchandise manager for home and hardware and Jenna Post to merchandise manager for store/ offi ce supplies, food/ snacks and toys/ games.
• House-Hasson Hardware is going to a paperless system to make all payments electronically to vendors and eliminate paper invoices and payments to dealers. President Don Hasson hopes to have 50 percent of their more than 2,000 dealers on the paperless program by the end of 2016.
• Taylor’s Do it Centers, with 11 stores based in Virginia Beach, Va., is acquiring seven-store Pleasants Hardware, which is based in Richmond, Va., and celebrated
its 100th anniversary last year. Pleasants Hardware, which has been owned by food manufacturer Sauer since 1989 and is expected to retain its name, earlier announced plans to close its flagship store in Richmond to make room for new development.
• Mills Fleet Farm with 35 stores in Wisconsin, Minnesota, Iowa and North Dakota, is being acquired by New York investment firm KKR, which plans to expand the chain beyond the Midwest.
• ENAP and Progressive Affiliated Lumbermen (PAL) have merged to form LBM Advantage, with combined purchasing power of $1.5 billion through 450 companies operating 820 locations in 33 states. They will be serviced by traders with offices in New Windsor, N.Y., Grand Rapids, Mich., and Monroe, La., with Stephen Sallah as president/CEO.
• California Sears Hometown Store has opened inside Nelson Ace Hardware in Selma, Calif.
“We saw a distinct need in the Selma community for an appliance outlet,” said Owner Mike Nelson.
Customers will also be able to order and pick up any product available through Sears including apparel, jewelry, electronics and fitness equipment.
• Lowe’s is spending $2.3 billion to acquire RONA Inc., which operates about 500 corporate and independently affiliated stores and nine distribution centers throughout Canada. Lowe’s Canada President Sylvain Prud’homme will serve as president of the combined business, but headquarters will move from Toronto to Boucherville, Quebec, where RONA was headquartered. The combined company, which will be Canada’s largest home improvement retailer, has combined revenue of $5.6 billion in Canadian dollars.
FULL STORY:
• Manhattan hardware store welcomes refugees. Click here: http://www.nytimes. com/2015/11/18/nyregion/amanhattan-hardware-storewelcomes-refugees-as-governorsseek-to-shut-them-out.html?_r=0
• Watch 7.1 earthquake strike Anchorage True Value. Click here: http://www.ktuu.com/news/ news/watch-what-happens-whena-71-quake-slams-true-valuehardware/37618076
It’s not easy recovering from a natural disaster such as a fire, flood or tornado, especially when your community is in dire need of the products you sell. But retailers in need discover the industry is quick to lend a hand.
This is what Dickey Bub Farm & Home in Union, Mo., looked like after the Bourbeuse River crested at 34.3 feet on December 29.
In late December, Dickey Bub Farm & Home in Union, Mo., flooded due to record flooding from the Bourbeuse River and record levels of rain across Missouri. “We have over six inches of water in our 48,000-square-foot store,” reported General Manager Carrie Dickey, who was looking for advice on the clean-up process.
“We have been contacted by several restoration companies but will have to do most of the work ourselves, because we are dealing with limits on insurance regulated by FEMA,” she added. The store was forced to temporarily close.
Retailers from around the country quickly passed on advice to Dickey on how to recover from a flood, tips that might come in handy to other retailers when spring floods hit.
“Having lost our store in Hurricane Charley I understand your plight. I would assume you have insurance,
business interruption and flood. You need to get your insurance company involved immediately,” said Bill Zeithammer of Tarpon True Value in Punta Gorda, Fla. “Charley happened on Friday and we had our insurance company actively involved by Tuesday and checks in hand by Thursday. Normally business interruption is for 12 months. Your insurance company should be working with you to determine what inventory can be saved and get rid of damaged merchandise. Several vendors came in and restocked
Dickey
their products including National and Hy-Ko Products.”
Brandon Buckalew of East Grand Forks
Hardware Hank in Minnesota, whose community suffered a major flood in 1997, suggested getting industrial fans going right away to get everything dried up. “Get muck/water boots, rubber gloves and respiratory masks—get twice as many as you think you’ll need. Find a camper ASAP. Rent one if you have to. FEMA will often help supply them. We learned that FEMA and Red Cross are going to supply a lot of the cleaning products for the community. It’s a good time to call in favors from friends and family. Keep help fed and keep the beer cold. Figure out how to open up early and stay open late—it makes a world of difference to people,” he said.
Several retailers emphasized the importance of off-site data backups and of making sure your prices don’t go up with demand. “A good 20 years later our community still remembers the price gougers and refuses to do business with them,” Buckalew points out.
“Get the product you can, but avoid fly-by-night vendors that offer to
The entire store had to be stripped down including removing the tile and resealing the floor.
sell you goods at inflated wholesale costs. Better to break even or lose a bit and be the savior for your customers rather than be the guy that raised prices. Put up signs that flood/disasterrelated items are not returnable,” said John Fix III of Cornell’s True Value in Eastchester, N.Y.
“I know how devastating this is—we went through the same thing in the thousand-year flood here in Colorado in 2013,” said Bev Vernon of Budget Home Center & Supply in Longmont, Colo. “We did the cleanup work ourselves. We were able to reopen in five days, but it took a whole year to get all the remodeling done.”
On January 27, Dickie Bub Farm & Home posted the following on its Facebook page:
“One month ago from today, we were working hard to move product out of the Union store before the flood. We loaded merchandise into trailers and moved product to higher shelves in the store. It’s amazing what we’ve accomplished in one month, but we’ve still got a lot to do. Soon, we will be announcing when and where the flood sale will be.” n
1.6
38%
Percent of retail inventory shrinkage in the U.S. caused by shoplifting, according to the National Retail Federation.
Times per week the habitual shoplifter steals something, according to the National Association of Shoplifting Prevention.
$10.16
Average wage per hour for retail sales employees in the U.S., according to the Bureau of Labor Statistics.
$3,400
Cost to retail employer every time they have to replace an employee earning less than $30,000, or about 16% of their annual wage, accord ing to the Center for American Progress.
$12.40
Average amount spent per order at a food truck in 2015, with revenue increasing 12.4% annually over the past five years, according to MobileCuisine.com.
50%
Percentage of U.S. consumers who reported experiencing a problem on their last shopping trip, according to LoyaltyOne. Of those customers, 81% decided not to contact the
