Hardware Connection February 2017

Social Media

A cloud-based business management system for hardware and home centers.

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By Chris Jensen

Unleashing the Power of Social Media

As we now live in a world where the President of the United States tweets about anything and everything, it’s easier to see how powerful social media can be when used properly. For hardware retailers, social media activity comes down to finding ways to engage their customer base to position their business as the store of first choice, without becoming a nuisance due to marketing spam.

Facebook and Twitter have distinct advantages over traditional advertising methods like fliers and newspapers, because posting on Facebook and Twitter allows you to communicate immediately with your customers, or followers.

For example, when bad weather hits an area, Facebook and Twitter are a great way to let your customers know you have the snow shovels, ice melt or generators they need.

In this issue (see page 37) we share the story of Rathdrum Trading Post Hardware, a Do it Best member in Rathdrum, Idaho. The owner and management team were planning to build a new, bigger store when they got a surprise eviction notice from their new landlord at their existing location. They had less than 60 days to move

out, but they hadn’t even started construction yet on the new store.

Closing the business seemed like the only solution to their problem, but then something amazing happened. They shared their story on Facebook and the community voiced overwhelming support for the business, urging them to find a way to stay open. A temporary site was found to keep the business open until the new store was ready.

As manager Matt Smith explains, “It was a very stressful and exhausting situation for our 10 employees, who first had to worry about losing their jobs and then had to dive in and help the store move twice within five months. They worked a lot of extra time and it was hard work.”

Smith and the ownership team wanted to let the employees know that they are appreciated, so in March they gave each employee two free airline tickets to anywhere in the U.S. It was a thank you for past work and a thank you in advance for what was ahead.

The employees were very appreciative of the gesture, and Smith has been sharing on Facebook where everyone has been traveling with their free tickets. The era of social media has arrived. n

By Tom Chasteen

Where Do We Go From Here?

This is our first issue of 2017 and I would like to personally wish every one of our readers a healthy and happy New Year filled with personal and business opportunities.

As we come into a new year, many of us begin thinking about our succession plans and/or our retirement plans. Some of us have family members who are ready and able to take over the family business—I’m a thirdgeneration hardware store owner— and others are waiting for the next generation to become more seasoned so they will be ready to take over the family business.

Some of us don’t have any immediate family members who are interested (or qualified) to take over the family-owned business, so they begin looking at current store managers who might be interested in continuing the business or they begin looking at outside investors to come in and buy the business.

Today, the average hardware store owner is estimated to be about 58 years old, so it is a safe bet to say that over the next five to seven years we will see more hardware stores

changing hands than any time in our industry. I am excited for the next five years. All of those sayings like “fresh blood” and a “new broom” will play themselves out and all of the past owners my age (I’ll be 61 in March) and older will have a front-row seat to watch the transformation of our industry to a younger generation.

Just think what we could have done with the technical advancements that this new generation has at their fingertips. When I first started full time in the family hardware store business we had just made the change from using a marking pen to a Monarch pricing gun. The only inventory control/ordering system was the “squat and squint” method.

For those younger readers that may be unfamiliar with the “squat and squint” method of inventory control it was just as the name implies. You would squat down and squint to count the items on the shelf. Then you would make your best guess of how many you should order, taking into account what time of year it was, how many you guess you had sold and for items like canning was it a

the way i see it

good year for peaches and was Mrs. Williams feeling good enough to put up four cases of canned peaches?

If you think I’m wrong, then just ask an older store owner. Back then we didn’t have computers and algorithms that helped take the guesswork out of ordering. It was imperative that you knew your customers and the marketplace. If you guessed wrong the result is the same as today—you were stuck with non-moving inventory. It just got a little dustier back then as it would sit on the shelf.

Oh, and as for the bookkeeping part of the business there is just no comparison. It used to take my father’s brother and my mother two full days to balance the ledger books for just over 500 accounts, hand write the balance due and include a copy of each invoice every month.

Today, in less than two hours the statements are printed with copies of the invoices, the balances are completely updated and interest is computed on all of the outstanding balances. Today, most of that two hours is spent having a cup of coffee and putting everything in envelopes.

Just think, the time we used to spend on reoccurring mundane tasks can now be completed in minutes, leaving the store owners today with more time to spend on the sales floor or finding new and innovative items

to stock in their stores. It gives them more time to think of new and creative ways to enhance their businesses and theoretically, could give them more time with their families.

Inventory is now much more accurate and inventory dollars are much better allocated both in terms of day-to-day sales and seasonal sales. Just think how many times we have thought “Boy, it is really slow this month” only to go back and look at the same month last year and the year before to realize it was just as slow back then. Computers don’t make emotional buys and they don’t take vacations.

The new generation of retailers will have their own unique challenges. It will be imperative that they maintain current and valid data in their computer systems. Decisions and issues will come at them much faster, because not only will they have the opportunity to make better, more informed decisions due to technology, but so will their customers and suppliers.

Just-in-time inventory will be in days, not weeks or months. Seasonal buying decisions will be added with weather forecasts and Mrs. Williams, she won’t need to buy as many canning jars because she knows how quickly her local hardware store can replenish their stock. Oh, and if her

•

the way i see it

local hardware store is out of stock or their supplier is out of stock, then Mrs. Williams can always order additional canning jars form Amazon.

At the end of the day, the one thing that I don’t foresee ever changing is the relationships between hardware store owners and their customers. Human beings are social creatures and for the most part we crave and seek out social interaction. We enjoy the banter and friendly advice when we go to our local hardware store, and I don’t believe that will ever change.

If you haven’t started thinking about the succession plan for your family business, then I would encourage you to start this year. Seek out advice from

those who are in the process or have completed the process.

During the coming year, I will be sharing with you my experience as our “adopted” son, Evan, with wife, Stacey, take over our family business. So far, my wife Dale and I could not be more proud of the changes he is making and how he is engaging our customers. From our perspective, the old saying of “fresh blood” and a “new broom” are absolutely true and Dale and I truly enjoy watching the process take place.

Feel free to share your thoughts with me on this subject, from one retailer to another, at tom@thehardwarestore.com. ■

HARDWARE HUMOR

HARDWARE STORIES Amazing but TRUE

Iguess the thing that continues to amaze me is our customers who are more elderly tend to show up on the worst weather day of the year, when there’s a blizzard.

John Brown

Ace Hardware Barrington Barrington, Ill.

lived in the area just relocated to Africa, and he bought a Big Green Egg and asked us to ship it to him. We’ve located a box to package it and found a shipping company, so we’ll be sending it to him.

Sean Curry

Curry Ace Hardware Quincy, Mass.

12-inch nails. Of course, she had to

We started providing child-size shopping carts because we have a lot of families and our niches include toys and craft supplies. One mom came in with three little girls in tow. They were in the store 45 minutes pushing carts around with baby dolls in their carts. A lot of employees would go up and ask if they could help her find anything. Turns out, she just promised her girls that they could push their babies around in carts if they behaved.

Doug Mingle

Roaring Spring True Value Roaring Spring, Pa.

How’s

Business?

MIDWEST

Sales and customer counts in 2016?

We’re holding our own. We didn’t improve; we did the same as 2015. We’re in southern, rural Illinois and it’s been tough for us. We had a lot of business from our lumberyard, but there’s no longer new homes being built, so we’re trying to adapt and change. We’re leaning more into hardware and looking to add more lines of do-it-yourself products.

Best niche categories?

We’ve done well with grills and YETI® coolers. We had a two-year run on the coolers, and we’re looking for the next big thing. I’ll go to hardware shows to look. Also, we’re looking to piggyback onto what’s going on in other larger communities around us. If something starts to hit and customers are talking about it, we try to follow the buzz. How active are you on social media?

Very little. We’re just now starting that. It’s in the very

early stages. I have a couple of employees who are going to concentrate on creating social media posts.

Best new items?

With the decrease in gluing and sweating piping, we’re now seeing a spike in push fittings. We’re in the process of revamping our plumbing to include more PEX tubing. Again, the sales of the YETI® coolers have been unreal.

Russell Flamm

Rusty’s Home Center Anna, Ill.

NORTHEAST

Sales and customer counts in 2016?

Not bad, but we could have been better. We deal primarily with industry, home and agriculture customers, and that business is down this year because of corn and milk

Guaranteed forever.

prices. We had some departments, such as lawn and garden, which were the exception and performed well. The 30 inches of snow last January really helped. I sold three tractor trailers of snow blowers in three days.

Best niche categories?

We’re known for lawn and garden equipment. We also do a lot of our own service work on lawn and garden equipment. We’ll fix anything with a gas engine. We also sell a lot of parts for lawn and garden equipment along with parts via special orders. If we don’t have it, we’ll get it. And customers come to us for YETI® coolers.

How active are you on social media?

We don’t post a lot on social media. We post on our website and some on Facebook. Customers are taking advantage of our online ordering through Ace. That’s starting to take hold.

Best new items?

Outdoor patio accessories and outdoor grills, such as Weber. We were really surprised at the sales for YETI® coolers, but their quality is excellent. People know the brand now.

Dennis Herr

E.M. Herr Ace Hardware

Columbia and Willow Street, Pa.

SOUTH

Sales and customer counts in 2016?

Very good. We’re up probably about 9 percent net sales and customer counts over last year. We also had a higher ticket sale in 2016, by about $3 per ticket. We’ve been here for three years and are a mile from the Great Smokey Mountains National Park. We’re really dependent on tourism, and we try to cater to those customers.

Best niche categories?

Because we cater to tourists, we have big camping, fishing and RV sections. For camping, we have 32 linear feet; fishing, 16 linear feet; and RV we have 16 and are looking to expand up to 40 linear feet because there are 10 campgrounds within five miles of us.

How active are you on social media?

We don’t do much with traditional advertising, but we try to make a daily post on Facebook about a product or

Kenny Myers

sale. Sometimes we’ll promote deals, such as 10 percent off camping supplies. I don’t think we’re doing a good enough job yet, as we’re just trying to figure it out.

Best new items?

We are kind of a mix between a rural and upscale hardware store. We’ve brought in several upper-scale products. We carry YETI® coolers and we’re a SodaStream™ vendor. We also do well with GoSun stoves, which are solar ovens.

Kenny Myers

Ace Hardware of Townsend Townsend, Tenn.

How’s Business?

SOUTHWEST

Sales and customer counts in 2016?

Not good. We’re about 12 percent down. It’s because of Amazon. A lot of customers will pick up an item, exclaim that they really want it, then pull out their phone and order it to be delivered to their house.

Best niche categories?

We’re probably one of the most unique hardware stores around. We’re sort of like a Crate & Barrel, WilliamsSonoma and a True Value all rolled into one. We carry everything from bath & body and gourmet cooking utensils to furniture.

How active are you on social media?

A lot. We have our own blog, and we manage Facebook, Pinterest and LinkedIn pages along with producing an e-newsletter. We have a pretty decent response and open rate all the way across the board. Our loyalty program allows us to text and email customers on a weekly basis. For

Pros & Cons

In the battle between cost and quality, family-owned Hyde takes a stand.

Bob Clemence has fewer and fewer products in big box stores these days. But he’s not complaining. Because today, winning “line reviews” means you’re probably the lowest bidder — with a compromised product.

“It’s been a price war for a very long time, but now we’re at the point where even a casual shopper can visually see the difference in product quality,” says Clemence, who is Vice President of Sales and a fourth-generation family owner. “When you force manufacturers to go cheap, many have to take out quality to do it.”

Does anyone care?

“We care, and so do the independent hardware and paint store owners we’re supplying,” says Corey Talbot, Hyde’s Vice President of Marketing and Product Development. “That’s because they know what pros want them to carry.

“Contractors don’t buy putty knives that break, or joint knives you can bend with your bare hands. But that’s the stuff we’re seeing on shelves.”

Has the stand on quality cost Hyde business?

“Sure,” says CEO Rick Clemence, also a Hyde family owner. “But some of that is business we don’t want. We’re not looking to make the cheapest product, we’re looking to make durable tools and innovative accessories that customers want — tools that have value beyond the sticker price.” That commitment, he says, gets a thumb’s up from pro painters, drywallers, remodelers, and serious homeowners who know what the HYDE® brand stands for and trust Hyde’s products to last.

“Putty knives may seem like cheap commodities,” said Talbot, “but a lot of expertise, investment and exacting standards go into making them correctly. We get pro input

up front. We use the right grade of steel to make them. We temper, grind, and polish the blades. And we test them when we’re done.”

As a result, he says, Hyde guarantees its Black & Silver® tools forever.

“This is a family-run business that was founded on craftsmanship,” notes Bob Clemence, “and we continue to stand behind the process that distinguishes our products. Basically, when you have a HYDE® tool in your hand, you’re holding more than 140 years of experience.”

Facebook and Pinterest, we try to post three times a week. On our blog, we’ll discuss projects. For example, recently we had a series about how to deal with rat infestations as well as how to handle lice, mice and ticks. Sometimes we do subjects that are wild, off-the-chart and fun. The blog is absolutely informative but an indirect ad. Social media has been absolutely beneficial but hard to measure. We’ll look at the response

How’s Business?

Upper: Zinger Hardware

Lower: Zinger Hardware carries bath and body products.

rate, and we’ll talk to people who come in and ask them about what they’ve read online. We have seen certain categories get bumps after social media posts. Last summer, the four-foot mosquito control set saw a lot of sales after a blog post about mosquitoes.

Best new items?

Through our store, we support over 100 independent artisans and manufacturers. That doesn’t represent a huge portion of our store, but it constantly gives us unique and different products. Those products are huge during Christmas and other gift-giving times of the year. Right now, we’re seeing strong sales with bird feeders.

Michael Ferweda

Zinger Hardware

Austin, Texas

WEST

Sales and customer counts in 2016?

Both were up about 4 or 5 percent. We’re known as a go-to store and have fairly good promotions.

Best niche categories?

Outdoor living has been excellent and continues to grow. Lumber and building materials along with outdoor power equipment is also strong.

How active are you on social media?

I have an employee who does some miscellaneous jobs and advertising. We’re on Facebook and Twitter. We also link to our circular and to events that we’re doing. Social media is becoming more beneficial, and when we look to hire people, we’re looking for that experience. Also, when we hire, we look for people who follow us on Facebook, so they are already familiar with the store.

Best new items?

We like to look for new items, but 90 percent of sales are core items. We stick to taking care of core business. Something we’ve done recently, though, is decorative outdoor yard art—small, colorful sheet-metal decorations. They are eye-catching and different than anything at a Home Depot or Lowe’s.

Greg Fowler

B & C True Value Home Center | Grass Valley, Calif.

“We

Dan Henderson, Owner | Lakeview True Value Hardware

Trend WaTch

By Craig Cope

Trying to Guess Technology’s Future Impact on Retail

Irecently had the opportunity to speak with Mike Altendorf, vice president of information technology for Do it Best Corp., to discuss current trends in technology and how new technologies in the future may impact retail.

Our conversation began with the topic of cloud computing. We are constantly hearing about “the cloud,” but do we really understand “what is the cloud?” Mike began by explaining that cloud computing can be broken down into three service models.

The first and most basic is called Infrastructure as a Service, abbreviated as IaaS. In IaaS, you are essentially purchasing the computing resources. The user must manage the operating system, software, etc. This enables the user the flexibility of not having to purchase the computer hardware and the cloud provider manages the hardware in a safe and secure data center.

Mike pointed out that when retailers host their own server onsite it normally is not located in the most optimal physical location and is exposed

to other environmental factors such as dust, heat and office clutter. In fact, data centers have complex environmental controls maintaining the optimal temperature, humidity and other air qualities that enable the server to perform at its optimal performance.

The second service model is Platform as a Service, abbreviated PaaS. PaaS offers the same benefits as IaaS, but also includes the operating system. Users are responsible for the software application they choose to operate. Some providers offer preconfigured options that enable users to pick and choose which application features they want to use and which ones they do not need. This set-up can allow users the ability to develop their own customized software with little expertise.

The third and final service model is Software as a Service, abbreviated SaaS. The user is “renting” the software they choose to utilize. If Facebook charged a fee for its service this would be an example of SaaS. The user simply uses the software

and computer resources of the cloud provider. SaaS offers customers no hardware cost or set-up cost and it’s often a pay for what you use price model.

With all the benefits of cloud computing I asked Mike whether all retailers should move to the cloud. Mike’s response was simple, “It depends.” His advice: “Determine your business strategy and then choose the technology that best supports your strategy.” He also provided a few points to remember if you think the cloud is right for your business.

First, do not expect to save money. Just because you are not investing in the upfront hardware and software cost there are monthly subscription fees to consider. These fees will vary depending on the service model selected, complexity of the system and utilization. One of the advantages a retailer can gain from moving to the cloud is speed of implementation, since there is no hardware to purchase or set up.

Cloud computing can speed up disaster recovery efforts. When a retailer experiences a natural disaster such as a fire, flood or hurricane, getting their computer infrastructure back up and running can be a daunting task, if not impossible. How often is your data backed up, where are backups stored and are you confident they are usable? Mike shared a story about a retailer who consistently backed up

his data to the same tape and when he needed to recover from a disaster the tape was so deteriorated it was unusable. Cloud computing handles this for the user and data is often stored in a redundant manner.

Another item to take into account with cloud computing is your internet connection. With everything housed in an off-site environment you will need to connect via the internet. How reliable is your service provider? How fast is your connection? How many concurrent users do you have in your store? All these factors will impact your decision if cloud computing is the best solution for your business.

Mike and I also discussed what future technologies may impact retail.

At the 2017 Consumer Electronic Show (CES) robots stole the show. The robots’ abilities ranged from simple tasks such as making coffee to complex tasks such as reading and responding to human facial expressions.

I asked Mike if he felt robots might one day work as greeters in hardware stores or assist customers in finding their products. He responded, “From a technology standpoint yes, but how does that fit your business strategy?” It could serve as a point of differentiation from competitors, but maybe the store prefers more of a personal approach greeting the customer by name. “Again, determine your business strategy and then choose the

technology that best supports your strategy,” Mike added.

We also discussed what technologies might be on the horizon that could be a game changer in retail. While it’s anyone’s guess, he felt interactive voice technology similar to Amazon’s Echo could have a big impact. The use of interactive voice may eliminate the need for manual computer inputs such as a keyboard. Smartphones now have the ability to perform certain tasks like dialing a contact or completing and sending a text message all by voice command.

Another technology is the use of Artificial Intelligence. Mike pointed

to the extraordinary abilities of IBM’s Watson. In 2011 IBM showcased the abilities of Watson by competing in a game of Jeopardy! with the two top-ranked players of all-time, Ken Jennings and Brad Rutter. Watson easily won the three-day contest.

I left my conversation with Mike with a key takeaway. Technology is a tool and just like no tool can perform all tasks, no technology solution is the best one for everyone’s business needs. n

Craig Cope is the associate publisher of The Hardware Connection. He and his wife, Shanti, are the directors of The Hardware Conference in Marco Island, Fla.

How to Put to Best Use Social Media

By Chris Jensen

David Strano of Ambridge Do it Best Home Center finds creative ways to engage with customers on social media.

Retailers wear a lot of different hats, and one of them is deciding how much time to spend attempting to engage customers on social media sites like Facebook and Twitter. Does posting everyday make a difference in your bottom line? Does social media activity help build customer loyalty? Should you handle posting yourself or delegate to an associate?

Dave Warren operates Dave’s Ace Hardware in Milton and Evansville, Wis., and he has nearly 5,500 people following his stores on Facebook. He has figured out a social media strategy that works for his business.

“When I made posts that asked questions or gave advice, the comments were abundant. Little did I know, but I was starting to learn the concepts of viral marketing,” Warren says. “The more I could get people to engage with posts

on my page and with each other, the more they would keep my stores at the top of their minds.”

Social Media attractS cuStoMerS

David Strano of Ambridge Do it

Best Home Center in Ambridge, Pa., started with Facebook in 2010. “I got on Instagram last year because I like to take a lot of pictures, but that hits a different crowd,” he says.

Strano says they get great response on Facebook and Instagram. “I have all the power in my hands and can do it at any time. Facebook and Instagram can be done easily on the fly. We just got a great new item in, and here it is immediately,” he says.

Sending circulars reaches a finite number of people, say 10,000, but with social media the sky’s the limit, according to Strano. “I’ve had calls from North Carolina about a post before,” he points out.

He does about 90 percent of the posts himself and has a young employee who does some on the Instagram posting. “You have to keep it very broad and not just about selling an item,” he explains. “I like to post employee anniversaries and birthdays. I shared a picture of our staff around Christmas with a Happy Holidays message and that got a good response.”

Every month he creates three coupon specials that are only promoted with an

Every month David Strano of Ambridge Do it Best Home Center creates three coupon specials that are only promoted with an email blast and on Facebook.

email blast and on Facebook. “It usually brings in 30 to 40 customers that wouldn’t have come in otherwise. We save the coupons that are redeemed so we know the results,” he says.

Strano comes up with creative ways to engage customers. He will post “Like and Share this picture and you’ll get a $30 YETI gift card.” He will encourage customers to post a picture of their pet and the one that gets the most “Likes” will get a Do it Best gift card.

This past June when the Pittsburgh Penguins were facing the San Jose Sharks for the Stanley Cup title Strano posted a picture of an inflatable shark being dangled by an excavator with the text “Sharks are going down!” That post attracted 26 comments, was shared 665 times and viewed by 80,000 people. “It’s all about keeping it fun,” he says.

Although Facebook is free, Strano will pay to boost a post on occasion. “You can reach out to 1,000 or 100,000 people if you want for $10 to $20,” he points

Meet our BIGGEST Fan!

out. He evaluates analytics once a week to see what’s working.

In Strano’s opinion, social media works. “You see sales pick up as a result of what you’re doing. It’s a great way to keep local customers engaged with your business. I love the interaction, such as when customers are asking us questions,” he says.

It has also helped them attract a younger demographic of customer. “We’re located in an older area, but my push is to the younger generation. We still don’t see enough young people in here, but Facebook helps. We have a great store, but the younger generation doesn’t always know that,” he says.

Strano trains employees to talk up the exclusive deals that are only on Facebook and he places signage promoting their Facebook page on doors, windows, by the checkout, on all business cards and on ads.

The biggest complaint about social media is that Strano has a lot of demands on his time and this is one more thing. “I always try to get back to people who ask a question or comment about something,” he says. “I also try to follow good businesses even outside the hardware industry and try to improve on what they do.”

Social Media Should be Fun

Jessica Bettencourt, president of Klem’s in Spencer, Mass., knows

Ambridge Do it Best places signs around the store to promote their Facebook page.

it’s like to have a post go viral. One February she posted a picture of adorable chocolate Labrador puppies inside a heart-shaped box and titled it “This is the only kind of chocolates I want for Valentine’s Day.” She points out, “That brought us 6,000 fans and a lot of exposure in a couple of weeks.”

Klem’s has been doing a Fan of the Week contest on Facebook for three years. They get vendor-supplied prizes that are featured on their page. “Every Friday we unveil the new prize package and unveil the previous week’s winner,” says Bettencourt, who says the level of engagement depends on the prize. Another benefit is getting customer names and email addresses from entries.

About 30-40 percent of what they post is fun stuff that fits the store or community personality, she says. Another 30 percent of posts are information such as how to keep a dog safe in the winter or how to unclog a pipe. The remaining posts are about products or new items. “You need to keep a balance. We use it for events to help build attendance. You

have to stick with it or people will lose interest in you,” Bettencourt explains.

Four people share the posting duties at Klem’s including Bettencourt. One is a back office person who handles the weekly contest. A marketing person does graphics for events and another staffer in her mid-20s focuses on new products or craft projects.

Bettencourt has learned that people don’t want to be sold on Facebook. “Even if we share a post on a product, we’ll just say ‘Here’s a great idea,’ then wait for the customer to say ‘Do you have it?’ Posts about our new fliers have turned people off. We don’t use Facebook to drive sales,” she says.

They had a situation this past fall where they decided to close out a large category, fabric, and replace with a Hallmark card section. They had a short time (4-5 weeks) and more than a year’s worth of inventory to unload. Facebook to the rescue.

“We started using Facebook ads, which allows you to target by location or by interest like sewing up to 25 miles away,” she explains. “These people then share it for you. You can reach 500 to 600 people for $100. Our post had about 100 shares, exactly the people we wanted to reach. We had people driving here to buy fabric and had lines up to 45 minutes for a week to buy fabric.”

Bettencourt will boost posts for events such as tent sales. “We had a beekeeping event that attracted

100 people. You can see good results spending little or no money. You can target specific people for these events,” she says.

She looks at page views and tries to determine what posts turn people off. They recently did a minor store renovation and posted video of it. If a customer comes in with a cute dog they take a picture and post.

“We absolutely try to respond to comments good or bad and will only take it down if there’s foul language,” she says. “Sometimes people are a little unreasonable with a comment, but as long as you handle it professionally and with respect your other customers won’t hold it against you.”

Social Media helpS attract Younger deMographic

Gentry Hipp of Hipp Modern Builders Supply, a Do it Best member in Mountain View, Ark., points out that social media helped the store make the top 25 of the Independent Small Business of the Year award contest, which is done through online voting.

The store has been on social media since 2010 and Hipp definitely sees it as something that is here to stay. He maintains a blog, HippsHelp.com, that helps the business attract pet lovers, craft hobbyists and cooking enthusiasts. “Our page is a sounding board for building connections with customers

This cute post on Facebook went viral for Klem’s.

who view us as the authority on these subjects,” Hipp says.

New blog articles are posted on the store Facebook page and website such as “How to Update Kitchen Cabinet Storage” and “How to Make Wine Bottle Planters.”

He posts specials with a mix of products and promotions and will do a giveaway to boost interactions and keep people connected. “We try to have fun with it,” Hipp says.

Hipp used to do all the posting himself, but now delegates it to an employee. “Don’t pay someone outside your business to do social media,” he advises. “It’s so simple, especially if it’s the owner or manager doing it. Make them an administrator on the account and they have access on their own device.”

Hipp, who is 34, believes social media helps attract a younger demographic, although it also attracts older customers. “I watch traffic results regularly, but I can’t tell the value of metrics. We just want to keep the interaction going,” he says.

Gentry Hipp of Hipp Do it Best Modern Builders Supply uses social media to attract a younger demographic.

He will boost posts on occasion, paying from 5 cents up to $1. “You set a budget and target a specific demographic. It’s so much more efficient targeting who you want to reach than traditional advertising methods,” he says, adding that fun things or real images get the most “Likes.”

Twitter is a different area and different audience. “We struggle to get interaction there. Characters and images are limited,” Hipp says.

Although he would like to post on Facebook every day, it ends up being three to four times a week. “I don’t like sites that post too much, so we take the same approach,” Hipp says.

Social Media enableS inStant acceSS

Dusty Lee, owner of Stormer’s True Value in Knoxville, Tenn., has been on Facebook nearly four years and the store has 1,595 Followers. “I do it mainly to promote new, interesting items,” he says.

Facebook is especially effective during weather emergencies, Lee points out. “In extreme weather we let people know we have snow shovels and ice melt. We had a major ice storm two years ago and I was able to secure truckloads of space heaters. As soon as we posted that on Facebook we had calls from 100 miles away,” he says.

Lee uses Facebook all the time, with a lot of interaction with people both personally and for the business. “That’s how you get it off the ground. I’m personally friends with so many people, so it’s easy to get them to ‘Like’ your business page and then it takes off from there,” he says.

When he is coming up on a threshold like “1,500 Likes” he will pay $15 for a three-day targeted blast to specific zip codes. Then he posts a thank you graphic for helping them reach that level.

Lee has never done a contest on Facebook but occasionally posts funny pictures. He has also found it counterproductive to post circulars. “Our strongest post is wishing everyone a Merry Christmas, congratulating my dad on 55 years in the hardware business or anything promoting the local high school. People love that stuff,” he says. ■

Star Performers on Social Media

Ambridge Do it Best Home Center

David Strano

Ambridge, Pa.

4,620 Likes and 4,483 Followers on Facebook: Click Here

247 Followers on Instagram: Click Here

Hipp Do it Best Modern Builders

Supply

Gentry Hipp

Mountain View, Ark.

3,488 Likes and 3,360 Followers on Facebook: Click Here

361 Followers on Pinterest: Click Here

574 Followers on Twitter: Click Here

Klem’s

Jessica Bettencourt

Spencer, Mass.

14,566 Likes and 13,790 Followers on Facebook: Click Here

Stormer’s True Value Hardware

Dusty Lee

Knoxville, Tenn.

1,626 Likes and 1,595 Followers on Facebook: Click Here

Marcus Lumber Company

Grant Leavitt

Marcus, Iowa

1,322 Likes and 1,308 Followers on Facebook: Click Here

123 Followers on Pinterest: Click Here

Dave’s Ace Hardware

Dave Warren

Milton and Evansville, Wis.

5,494 Likes on Facebook: Click Here

247 Followers on Twitter: Click Here

Cadiz Ace Hardware

Bob Brame

Cadiz, Ky.

966 Likes and 933 Followers on Facebook: Click Here

JBK Ace Hardware

John Price

Chestertown, Md.

1,550 Likes and 1,513 Followers on Facebook: Click Here

Leeper Hardware

Lisa and Brian Williams

Jefferson City, Tenn.

1,641 Likes on Facebook: Click Here

East Grand Forks Hardware Hank

Brandon Buckalew

East Grand Forks, Minn.

2,458 Likes and 2,307 Followers on Facebook: Click Here

160 Followers on Twitter: Click Here

Randy’s Do it Best Hardware

Christian Herrick

Timberville and Bridgewater, Va.

4,217 Likes and 4,145 Followers on Facebook: Click Here

1,757 Followers on Twitter: Click Here

90 Followers on Pinterest: Click Here

Clark-Devon Hardware

Ken Walchak

Chicago, Ill.

478 Likes and 453 Followers on Facebook: Click Here

528 Followers on Twitter: Click Here

66 Subscribers on YouTube: Click Here

The Community Saved our Store from Closing

ROverwhelming community support enabled Rathdrum Trading Post Hardware to overcome a surprise eviction so a move to a new store could happen.

athdrum Trading Post Hardware, a Do it Best member in Rathdrum, Idaho, has been open since 2013. While busy planning to build a new store in Rathdrum in early 2016, the store’s leaders received a surprise eviction notice from the new owners of their existing location. They had less than two months to be out, but their new store was at least six months from opening. They made the difficult decision to close, but an overwhelming response from the community, which spread on social media, caused them to find a way to stay open. Matt Smith, the store’s manager, shared this first-person account of their tumultuous and heartwarming experience.

Rathdrum Trading Post Hardware opened in 2013 in leased space. We started looking for a new, bigger location that we would own and found one. We wanted to start building in late 2015, but it’s hard and costly to build in the winter in Idaho. So we decided to hold off until the next spring. We talked to the landlord about extending our lease on a short-term basis, but they were dragging their feet.

On February 1, 2016, we found out why. We discovered the property had been sold, we were not welcome to sign an extended lease and we had to vacate the building by March 31.

For the first 36 hours we didn’t see a way forward. We had to wait until spring arrived to even begin building and we couldn’t make it if we had to be out of operation for five or six months. We also had to contend with a new

18,000-square-foot hardware store opening down the street.

What’s frustrating is that we were good tenants and had made improvements to the location. The new landlords didn’t think they could ethically be in contact with us before they

officially took over and they knew we were planning to leave. However, they thought our new building would be ready by the spring, so they went out and found a new tenant, Dollar Tree, to take our place.

I called the staff together to let them know what we were facing. They all wanted us to find a way to stay open, but we didn’t see a way forward. After getting the news about the eviction, that night we posted our situation on Facebook and it exploded. We started

getting calls from the local press and TV stations. The new owners of the building called us back, because they were getting savaged on social media and in the press. Normally we might get a couple of hundred views when we post on Facebook, but overnight we had over 8,000 views with lots of comments in support of us.

We were able to throw a plan together pretty quickly to save the store, because the community got behind us. They were begging us to stay and offering trucks

The new store features a 9,000-squarefoot sales floor with room for expanded assortments.

and manpower to move. The next day we identified a much smaller vacant location in the same shopping center to operate out of. It was a very chaotic time. By February 4 we had an agreement in place to move to the new temporary place and by that weekend we were knocking down walls and prepping it with phone lines while starting to pack up and organize merchandise. Our old store was a little under 10,000 square feet including backroom space. The temporary location was about 5,000 square feet but all broken up. There were lots of people volunteering to help us, but it didn’t feel right accepting free labor. So

we more than doubled our workforce temporarily and paid everyone.

We packed up the entire store. It’s not easy to fit a 10,000-square-foot store into a 5,000-square-foot space with virtually no backroom space. We also used two storage sheds and three storage pods plus a fenced in outside area to protect from the weather. We had to tear down the store section by section and reassemble in a completely new way, which was a monumental undertaking. It took three weeks to make the space operational and we finished moving in right before the March 31 deadline.

Dealer Profile

We ended up with about two-thirds of our usual inventory. Sales dropped some, but I couldn’t be happier with the support we received from the community and our employees. Meanwhile, we were also moving forward with building our new store location.

Even once we moved to the temporary site we were still under the gun, because we only had a short-term lease there. It was a very harrowing experience moving to the new location, even though the move was just 1/4 of a mile. We had two 40’ x 80’ shipping containers full of merchandise that had to be moved, but they couldn’t be moved in place so we had to shuttle a truck load at a time.

A soft opening was held on August 12. The grand opening celebration was held Labor Day weekend, which was a nice celebration for the community. We now have a 12,200-square-foot store with a 9,000-square-foot sales floor, about 1,000 more square feet than the old store. It’s at the busiest intersection of town and more importantly, we own the land. No more worries over a land-

lord controlling the fate of our business.

The community response to our new store has been amazing. Folks love the new location and the convenience it offers and have expressed how happy they are that we found a way to stay. It’s incredibly gratifying to experience the overwhelming support of the community. We wouldn’t still be in business without it. ■

Dealing with

By John Fix III

As winter weather hit or didn’t hit retailers around the country, they turned to Hardlines Digest to weigh in on issues such as cycle counts and service charges.

cYcle cOUntS

CYCLE COUNTS & SERVICE CHARGES

J.C. Warren of Stars Ferry Building Supplies in Burley, Idaho, was looking to come up with a plan to do cycle counts and get away from the dreaded end-ofyear inventory madness and he was struggling with two main issues. He posted, “The first is overstock items. We have a fair amount of items that are in overstock and are on our sales floor. The items in overstock can change depending on shelf space and ordered quantity. My preference to handle this is to eliminate all items in overstock and put them on the sales floor. However, this would be a big challenge for us due to the limited sales space we have. I am looking for advice on the best way to handle the overstock and multi-location items.”

Mark’s Ace in Tucson, Ariz., uses a table behind the service counter to do service work and assemble products.

only ones who still sell nails and screws by the bulk, but I’ll ask anyway. We currently have the 50-pound boxes and sell by the pound under the same SKU. I am debating whether to change this so that the bulk boxes and the loose are under separate SKUs. I see pros and cons both ways, but to me, one of the biggest reasons I am considering changing is because it’s a pain to keep accurate inventory on these items and not very friendly for cycle counting.”

Warren added, “The other issue is somewhat related. We are probably the

Steve Oberholtzer of eight-store Stauffers of Kissel in Pennsylvania responded that they do not do cycle

HARDLINES DIGEST

counts. “For something like your loose nails, I would think those are the items you want to cycle count. You don’t currently have an accurate inventory on those items. If you cycle count them weekly, you now have a reasonably accurate count. It should not matter whether you sell as one SKU or individual SKUs, you just need to make the cycle on those items frequently enough to give yourself the accuracy that you need. That should be more accurate than what you have now,” he posted.

Whitney McKellar of M&M Lumber in Tulsa, Okla., responded, “We sell all our nails by the pound. If someone buys a 50-pound box, you sell 50 but get a quantity break price. If someone buys

under 50, the price is higher for the lessthan-box quantity. When we count our nails, we count the full boxes (x50) and estimate what is in the bin.”

McKellar added, “We will cycle count our inside vendors twice a year before we go to hardware shows. Most items are entered in by vendor so we can run an RIS report by the manufacturer to count. Back stock is just part of it. The person counting should know where the back stock is for each manufacturer. When we are way off, we all go on a scavenger hunt to find the missing item and most of the time we find it.

Start small and don’t set your goals so high that you can’t achieve them. It may involve some computer set-up work

designed to get it done

before you start to make it go smooth. Decide if you’re going to count by location, vendor, dollar value, etc., and just jump in. You can change and adjust as you go along.”

Doug Johnson of Johnson True Value Hardware and Garden in Mt. Pulaski, Ill., posted,“We are a small store so back stock isn’t too big an issue, but whoever is counting a department will usually check the backroom before counting an area. Our mobile scanner indicates the current QOH and last date counted, so if there is more inventory somewhere the clerk has some indication to go look for it.”

Orchard Supply Hardware showcases its services on the show floor in an area named “Workbench.”

discussion going on service charges. He posted, “We put our saw cut SKU up to $2 per cut; it was $1. We use a band saw to chop things off. We don’t

Johnson added, “I am a believer in cycle counting. We have a store map with every four-foot section location identified and we date the map as each four-foot section is completed and our goal is to count every section at least twice a year. It is not perfect, but it is definitely better than trying to count every last thing all at once. Also, track your negatives daily and count empty bins all the time to make sure something isn’t in the wrong spot or miscounted.”

Service chargeS

Bill Round of Round’s True Value Hardware in Stoneham, Mass., got a

have a SKU for car key fob battery replacement. I found myself looking at a Youtube video for the secret notch to open up the unit. I charged $3.99 for the battery. I’m told that the locksmith shop charges $6 or more for installation. I think we give away too much labor that our big-box and online competitors can’t provide. How are people working to make their service desk a profit center?”

Randy Patzer at Garden City Ace in Michigan responded, “Thirty years ago my district manager mentioned how great it would be if we could charge for service. At the time I thought it was ludicrous, but times change. We currently charge $4.99 for the same battery and install for no charge.

Matthew Abramsky of Tony’s Ace in Michigan shared, “The expectation of free services forced me to move my screen repair and glass cutting off my sales floor. Customers see a large 4x8 table and their reaction is ‘free work space and a helper.’”

Be Part of the Hardware Industry’s Exclusive and Professional Women in Hardware Program!

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.

Who’s Eligible to Join?

• 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

Activities

• 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.

Dan Vogel of Lee’s Home Center in Millstadt, Ill., posted, “We’ve thought about creating a ‘Service Corral Area’ on the sales floor, outfitted with large screens overhead with short looping videos of different services that are offered, another with the most common services displayed on the screen with pricing. This pricing might be an hourly rate for some things and a flat rate for other services. If you have quality employees and structure the set-up with high enough rates to cover expenses, it might just work.”

Vogel added, “We are not charging near enough (when we do charge) and it’s usually always done in the backroom out of site with no exposure. We hope the customer continues to patronize our business for ‘doing them the favor,’ but we all know sometimes that doesn’t work and we just gave away our labor for nothing.”

Pat Maahs of Beisswenger’s Do it

Best in New Brighton, Minn., added, “Our screen and widow repair has always been off the floor. Window repair can be a little dangerous to customers. They see that big table when it isn’t totally covered and think they can lean, lounge and sit on it. On those easier aluminum-framed screens, if they see it only takes five minutes to do they might think ‘Why should I pay for labor? It only took a couple of minutes.’”

Ken Walchak of Clark-Devon Hardware in Chicago responded, “I love those restaurants where you can watch

hardlineS digeSt

the chef cook. I am happy to sit at a counter and watch them prepare and cook. I’m sure the work area could be roped off from the store, to keep customers out but still engaged. You would have room to merchandise a ton of stuff around the shop area. The problem I can’t solve is the one brought up by Pat. Some of the jobs we do are done so quickly, that to do them in front of the customer would remove all the value from them. Screens being a classic example. Lock work is another. That’s why customers complain about a saw cut. $2 for 10 seconds of labor. In their eyes, it’s not worth anything.”

Shep Hayes of Hayes True Value in Maine posted, “Orchard Supply is basically doing this. They’ve organized a bunch of their services into an area of the store called the ‘Workbench.’ They’ve got all the services you could think of clustered there: key cutting, glass cutting, screen repair, rope cutting, pipe cutting, sharpening, threading, etc. I have absolutely no idea if it makes money for them, but I think it’s a great idea. Here’s where we do things and here’s how we do them.” 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 .

Come to Adventure

MARCO ISLAND for a Family

As you deal with the cold winter weather, it’s nice to dream about warm, sandy beaches. You can do more than dream about it by attending the 2017 Hardware Conference, set for September 8-10 at the JW Marriott Marco Island Beach Resort in Marco Island, Fla. The event offers the perfect opportunity to find ways to improve your business while having fun at a world-class resort right on the Gulf of Mexico, with miles of gleaming white beaches.

Following a $320 million renovation and upgrade to JW Marriott status, the resort offers an oasis of luxurious comfort with activities designed for the whole family. You can check out the latest vendor product innovations

Left: The Hardware Conference is held each September at the newly remodeled JW Marriott right on the water in Marco Island, Fla.

Right: Brian Buswell of All American Home Center is shown making his acceptance speech for the 2016 Beacon Award for Best New Store.

in the brand-new JW Marriott ballroom during open exhibit hours. That still leaves plenty of time for you and your family to enjoy three swimming pools, a wide variety of water activities, spa services at the newly remodeled Spa by JW®, a children’s Tiki Tribe camp or a relaxing walk along the private white sand beach.

Craig and Shanti Cope, along with Tom and Dale Chasteen, will be marking

the 29th 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 developed four 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, 3M, Ace Hardware, Do it Best Corp., Orgill and True Value.

In addition to Retail Beacon Awards for each of the participating wholesalers, the awards banquet honors the industry’s best new stores. The 2016 winners for Best New Store were All American Do it Center in Richland Center, Wis. (over 20,000 square feet) and Heuser Ace Hardware in Bluffton, S.C. (under 20,000 square feet).

The 2017 Beacon Awards banquet will be held Friday evening, September 8, at the JW Marriott Marco Island. Winners will receive all-expense paid trips for two to the 2017 Hardware Conference including conference registration, airfare, hotel and meals. They will also receive a special Beacon Award trophy and be featured in an article in The Hardware Connection.

Get your nominations in now for the Best New Store category—the entry

The Hardware Conference is organized as an event where relationships are formed.

deadline is May 15, 2017. For more information on the nomination process, contact Chris Jensen at chris@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, both during exhibit hours and at meal functions and receptions.

“It’s so different from the co-op markets—you have the opportunity to see new products, talk to other dealers and learn from both dealers and vendors in a very relaxed setting,” says Rick Heuser of Handyman Hardware in St. Cloud, Fla.

The Conference is designed for the whole family, with Saturday afternoon set aside with vendor-sponsored golf, beach activities and a shelling excursion. For more information, go to www.thehardwareconference.com. n

•

•

By Jim Holden

New Technologies Aspire to Take Retail to the Next Level

The National Retail Federation’s 106th Annual Convention & EXPO was bustling this year. Nearly 35,000 of the retail industry elite gathered January 15-17 in New York City to sit in on hundreds of educational sessions and scan miles of the latest and greatest retail technology solutions from 4,600 vendors on the show floor.

The NRF Show is often seen as a barometer of retailer confidence and optimism. Industry influencers say the high attendance at this year’s show is indicative of the need for retailers to seek out new technologies to help them succeed in being seen as relevant to today’s new digitally empowered consumers and operate more efficiently.

I had a chance to walk the show floor. What follows are my key takeaways for the most promising technologies that are helping retailers establish relevancy and optimize their physical store footprints to drive greater revenues.

Analytics Take to Store Shelves—

The Shelfie Retail Shelf Analytics Platform uses computer vision to optimize store shelves and can incorporate fixed cameras, robotics and drone technology. Shelfie knows what the “perfect

shelf” looks like and sends alerts to store staff when adjustments are needed for real-time management across stores in a region, or across product segments, and even down to an individual product level.

Innovating Inventory

Management—Inventory is a significant investment for any retailer, so pricing it and positioning it to sell is essential. Business Intelligence (BI) can crunch lots of data and factor in lots of parameters to provide insights on exactly how best to accomplish this. I saw a few powerful examples of BI solutions in this area—showing inventory aging and recommendations on redistribution, promotion, closeout and seasonal hold. While most of this was for clothing, there are great examples for hardlines retail products where your data can be pushed to make better decisions faster.

Electronic Bin Tags Come of Age—Many notable retailers such

as Kohl’s have successfully deployed electronic shelf labels, which can be dynamically updated quickly and efficiently, without the need to print paper tags or to deploy multiple employees to change them out manually. There were many providers at NRF showcasing the next generation of electronic shelf labels, which are becoming more cost effective and more durable.

Eclipsing the Credit Card—

Millennials have very different attitudes toward credit cards than prior

generations. In fact, a majority don’t have them. The AcceptanceNow solution enables shoppers to purchase items without credit with reasonable payment plans. This seems like a win-win; the solution allows individuals to build credit. For retailers, this requires no investment and opens up new revenue opportunities—especially key to support the sale of higher price-point items in retail stores — to bring on the impulse buys.

Power to the Point of Sale—There are a dizzying array of options when it comes to POS devices, offering retailers tremendous flexibility and giving sales associates exceptional information access and mobility so they never have to leave the customers’ side.

Ingenico was demoing its new all-inone device that is lightweight with support for EMV (Europay, MasterCard and Visa) and 2D scanning in a mini tablet footprint, and it is also convertible to mount as a fixed POS device.

Google was showcasing a new POS hardware provider in its booth from Unique Secure, an international company that offers a new space-saving POS device that has five different modes— from fixed POS to a mobile POS device— and features an integrated payment security and integrated scanner.

Counting and Cultivating Customer Satisfaction—

You can’t manage what you can’t measure. A number of interesting solutions on the show floor focused on capturing key store metrics, giving physical

stores the same rich analytics regarding conversions that digital retailers have leveraged for many years.

One of these is CountWise. The company’s solution incorporates a camera that counts people as they enter the store but does not do facial recognition due to privacy laws and regulations. Analytics reveal the total number of people who entered the store and the number that went down each aisle. When tied to a retailer’s transaction statistics this provides conversion rates and “dwell” statistics, providing key insights to affect inventory and merchandising strategies.

Another player in this space is ClickIt, which measures frequency and duration of store visits, distinguishes between the behavior of customers and employees, alerts upon the arrival of repeat customers and reports on which locations customers have visited locally and nationally. This is done through an anonymous tracking ID on shoppers’ wireless phones (assuming phones are Wi-Fi-enabled with Wi-Fi access turned on).

The solution provides near real-time customer satisfaction ratings with Happy or Not, depicted by a green smiling face or a red frowning face. This can provide the ability to track and monitor customer satisfaction ratings by 15-minute intervals and by checkout lanes or a specific area in the store. n

Jim Holden is VP-Sales, Retail and LBM for Epicor Software.

HARDWARE PROGRAM Ambassador

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

CATEGORY REPORT

PAINT AND DECORATING TRENDS

Sales of Interior Paint (Independent Hardware Channel) 12 Months % Change vs. Year Ago

Source:

Unit Sales Breakdown for Interior Paint Total of 3,310 Items with Sales

PAINT AND DECORATING BUYING UPDATE

• The Sherwin-Williams National Painting Week survey conducted by Nielsen revealed that 56 percent of homeowners (and 74 percent of millennial homeowners) are planning to paint an area in their home in the next 12 months.

• Most homeowners (59 percent) are confident when considering a painting project, while 59 percent said they would be willing to spend more than $100 on a DIY painting project.

• When asked how best to make a room stand out, 44 percent of respondents chose painting an accent color on one wall.

• The 2017 Krylon color trends identify copper as an all-around natural metal that is multi-dimensional in both color and sheen, making it perfect for home decor projects both indoors and outdoors.

• Sherwin-Williams named Poised Taupe (SW 6039) as the 2017 Color of the Year. A modern take on a timeless classic, Poised Taupe signals a new direction in society’s ever-growing thirst for beautiful neutrals that bring warm and cool tones together to create one versatile color.

• “Poised Taupe celebrates everything people love about cool gray

Left: D&H Hardware and Outdoors in Mims, Fla., stocks a wide assortment of spray paint.

Right: Heuser Ace Hardware in Bluffton, S.C., keeps the shelves fronted with paint cans.

as a neutral, and also brings in the warmth of brown, taking a color to an entirely new level. Not cool or warm, nor gray or brown, Poised Taupe is a weathered, woodsy neutral bringing a sense of coziness and harmony that people are seeking,” says Sue Wadden, director of color marketing for Sherwin-Williams.

• As the Sherwin-Williams team traveled the world to identify the latest trends and make this year’s selection, it became clear that neutrals are beginning a transition from the monochrome gray of the past five years to a more complex taupe and brown.

• In a recent homeowner survey conducted by Sherwin-Williams, nearly 40 percent of the respondents agree that they would like to incorporate warmer neutrals, such as warm grays, taupes or beiges, into their home decor. Additionally, more than two in five people identified taupe as a timeless neutral they would choose. ■

GOLD EDGE™ PAINTBRUSH LINE

• Utilizing a filament blend of 100% CT™ (chemically tipped) polyester means that Gold Edge™ paintbrushes are able to offer super-smooth finishing capabilities.

• They are built with added firmness, which allows Gold Edge brushes to push paint farther, increasing production.

• Gold Edge enters the paint applicator market as one of Wooster’s largest lines—22 SKUs, which includes angle sash, thin angle sash, semi-oval angle sash, flat sash, varnish and wall styles as well as a variety 3-pack.

• This is the first Wooster professional paintbrush line to include the new semi-oval angle sash style in its launch. Semi-oval angle sash brushes are quickly gaining popularity with painters across the United States and in Europe.

The Wooster Brush Company www.woosterbrush.com 800-392-7246

WATERTITE® MOLD AND MILDEW PROOF WATERPROOFING PAINT

• Zinsser WaterTite® Clear Mold and Mildew Proof Waterproofing Paint resists water pressure and protects against mold and mildew.

• This water resistant and low-odor paint forms an impermeable, smooth, nonpigmented barrier to water on bare masonry wall and floor surfaces, stopping 4 PSI of water pressure.

• It can be used on interior or exterior, vertical or horizontal, concrete block and cast-in-place concrete.

• Backed by a five-year guarantee, the low-VOC clear coating stops moisture from entering and exiting concrete surfaces.

Rust-Oleum www.rustoleum.com 847-367-7700

SWITCHBACK™ LADDER

• Designed for homeowners and contractors, the Switchback™ two-in-one ladder provides users with versatility and ease of use, serving as both an extension ladder and a stepladder in one lightweight design.

• The Switchback™ makes it easy to go from one mode to the other with a simple flip-and-click that changes the height and style of the ladder. This multi-position design provides a maximum reach of 15 feet while in extension mode, the same as a 16’ extension ladder, and a maximum reach of 11 feet in stepladder mode, equivalent to that of a 7’ stepladder—making it the ideal solution for a variety of tasks.

• The overlapping rungs create a double-step platform when configured as an extension ladder, providing the user with a larger surface to stand on while working.

• The TRACTION-TRED® extra-wide steps help to stabilize the user and ensure safety while climbing.

TOUCH UP™ CUP

• Designed to make it easy to store paint for quick, easy, accessible touch-up work.

• Touch Up™ Cup contains an internal stainless steel “blending sphere” to rapidly remix paint.

• Label can be marked for at-a-glance identification of stored paint.

• No-mess touchup. Store paint for years. Saves time. Just shake and paint.

IN THE NEWS

NEW STORES:

• Bomberger’s is opening a second store in Annville, Pa.

• Westlake Ace Hardware has finalized the purchase of Williams Ace Hardware stores in Wichita and Andover, Kan.

• Ace Hardware Suwanee at Shakerag has opened in Suwanee, Ga.

• Glen and Nikki Tomlinson have opened Socorro True Value Hardware in Socorro, N.M.

Socorro True Value

• E&H Hardware Group is purchasing Millersburg True Value Hardware in Millersburg, Ohio, which will be renamed E&H Ace Hardware.

• Ace Home Hardware broke ground on its second location in Columbus, Ga.

• Stone’s Ace Hardware opened in Oxford, Mich.

• Carrie Cheek and Robert Calloway have opened Proctorville Hardware & Feed in Proctorville, Ohio.

• Glenda and Brian Booy have opened Oskaloosa True Value Hardware in Oskaloosa, Iowa.

• Bob Homeier has opened Bob’s True Value in Lexington, Neb.

• Bill and Holly Chandler , owners of Coastal Hardware in Yarmouth, Maine; are the new owners of the former Cook’s Hardware in Gorham, Maine, now called Gorham Ace Hardware.

• The Woods family has moved the site of its Acme Lock & Hardware store and headquarters to a new, larger location in downtown Cincinnati and renamed it Woods Hardware.

• The Myers Group is opening an IGA grocery store in Edmonds, Wash., that will include an Ace Hardware store.

• C&R Supermarkets is opening an Ace Hardware store inside its Fayette, Mo., location.

• Burggraf’s Ace Hardware opened its sixth store in Cottage Grove, Minn.

• Keith Williams has opened Ace Hardware of Newport in Newport, Tenn.

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

IN THE NEWS

KUDOS TO:

• McCoy’s Building Supply in San Marcos, Texas, is celebrating its 90th anniversary in 2017.

• Brothers John, Chip and Mike Frentz are celebrating the 85th anniversary of Frentz & Sons Hardware in Royal Oak, Mich.

• America’s Small Business Development Centers Iowa honored Steve Fogle, owner of Fogle True Value Hardware in Centerville, Iowa, as the 2017 Neal Smith Entrepreneur of the Year.

• William, Carrie and David Tell have reopened William Tell True Value Hardware in Hopewell Junction, N.Y., after a fire destroyed the original store in May 2015.

PEOPLE ON THE MOVE:

Heritage Ace Hardware is now selling appliances as Sears Hometown Store outlet.

OTHER NEWS:

• Sears Hometown Store outlets are opening inside Heritage Ace Hardware in Santa Paula, Calif.; Kief Do it Best Hardware in Cut Off, La.; and Madison County Ace Hardware in Danielsville, Ga.

• Six months after acquiring Canadian retailer Rona, Lowe’s says it plans to convert 40 Rona stores outside Quebec to the Lowe’s name.

• Newell Brands Inc. has entered into an agreement to sell its Rubbermaid brand consumer storage totes business to United Solutions, a plastic products company.

• Lowe’s Cos. has appointed Marshall Croom as chief financial officer, succeeding Robert Hull Jr., who is retiring.

• Holmes Building Materials has acquired Ed Price Building Materials in Baton Rouge, La. Owner John Holmes plans to consolidate their Baton Rouge retail store, Sherwood Forest showroom and door manufacturing facility into the current Ed Price building over the next year.

WHOLESALER IN THE NEWS:

• Safety Works has hired Bill Verzole as sales manager and promoted John Quinn to vice presidentmarketing.

• Ace Hardware Corp. has been ranked 7th in Entrepreneur magazine’s Franchise 500 report.

• Hyde Group has hired Gerry Overstreet as category manager for drywall and masonry products.

• House-Hasson Hardware enjoyed record attendance at its spring dealer market, held January 26-28 in Nashville, Tenn.

SEARS TO SELL CRAFTSMAN BRAND TO STANLEY BLACK & DECKER

Stanley Black & Decker and Sears Holdings Corp. have entered into a definitive agreement under which Stanley Black & Decker will purchase the Craftsman brand from Sears Holdings.

The transaction provides Stanley Black & Decker with the rights to develop, manufacture and sell Craftsman-branded products in non-Sears Holdings retail, industrial and online sales channels across the United States and in other countries.

As part of the agreement, Sears Holdings will continue to offer Craftsmanbranded products, sourced from existing suppliers, through its current retail channels via a perpetual license from Stanley Black & Decker, which will be royalty-free for the first 15 years after closing and royalty-bearing thereafter.

Only about 10 percent of Craftsmanbranded products are sold outside of Sears Holdings and the agreement will enable Stanley Black & Decker to significantly increase Craftsman sales in these untapped channels.

“Craftsman is a legendary, American brand with tremendous consumer awareness built on a legacy of producing quality products at a great value,” said Stanley Black & Decker President and CEO James Loree. “This agreement

Craftsman branded products have been sold in Ace Hardware stores since 2010.

represents a significant opportunity to grow in underpenetrated markets.”

Stanley Black & Decker will pay Sears Holdings $525 million at closing, $250 million at end of year three, and annual payments on new Stanley Black & Decker Craftsman sales through year 15 (2.5 percent through 2020, 3 percent through January 2023 and 3.5 percent thereafter). The net present value of all these cash payments is approximately $900 million. The license granted to Sears Holdings will be royalty-free for 15 years, then 3 percent thereafter.

Existing sales of Craftsman products outside the Sears Holdings and Sears Hometown distribution channels, which will be assumed immediately upon closing by Stanley Black & Decker, were approximately $200 million over the last 12 months. The company expects the sale of Craftsman branded products to contribute approximately $100 million of average annual revenue growth for approximately the next 10 years.

Craftsman branded products have been sold in select Ace Hardware stores since 2010, and now other non-Sears hardware channels will have access to the iconic tool brand. ■

UPCOMING EVENTS

FEBRUARY 2017

Florida Hardware Spring Dealer Market

February 11-12, Double Tree Hotel, Orlando, Fla.

Monroe Hardware Spring Dealer Market

February 10-12, Cabarrus Arena, Concord, N.C.

Mountain States Lumber & Building Material Dealers Association 2017 Products Expo

February 16, Denver Mart, Denver

Northeastern Retail Lumber Association LBM Expo ’17

February 15-17, Rhode Island Convention Center, Providence, R.I.

Orgill Spring Market

February 16-18, Ernest N. Morial Convention Center, New Orleans

True Value Spring Reunion

February 17-19, Anaheim Convention Center, Anaheim, Calif.

MARCH

2017

Ace Hardware Spring Convention

March 16-18, Georgia World Congress Center, Atlanta

Asia Pacific Sourcing

March 7-9, Koelnmesse, Cologne, Germany

Blish-Mize Spring Buying Market

March 17-18, Overland Park Convention Center, Overland Park, Kan.

Hearth, Patio & Barbecue Expo

March 1-4, Georgia World Congress Center, Atlanta

International Home + Housewares Show

March 18-21, McCormick Place, Chicago

LMC Annual Meeting

March 8-10, Ernest N. Morial Convention Center, New Orleans

NLBMDA Spring Meeting & Legislative Conference

March 27-29, Renaissance Dupont Hotel, Washington, D.C.

APRIL 2017

Ace Canada Spring Buying Show

April 22-24, RBC Convention Centre, Winnipeg, Manitoba

Home Hardware Spring Dealer Market

April 2-4, St. Jacobs, Ontario

Lumbermen’s Association of Texas and Louisiana Annual Convention & Buying Show

April 5-7, Gaylord Texas Resort, Grapevine, Texas

MAY

2017

Do it Best Corp. Spring Market

May 19-22, Indiana Convention Center, Indianapolis

National Hardware Show

May 9-11, Las Vegas Convention Center, Las Vegas, Nev.

For a complete listing of calendar dates, click here.

Mapleton FarM & HoMe Finds nicHe in

organic and Holistic pet Food

Mapleton Farm & Home in Mapleton, Minn., has carved out a successful niche by carrying organic and holistic food for animals.

Situated in a heavy farming community and owned by experienced farmers, the Do it Best member has consistently grown its selection of food, supplements and treats for a variety of animals, primarily horses, dogs and cats.

The store has focused on this niche over the past 12 months, which has resulted in 25-30 percent growth in the category, according to Ramona Morgan, COO and operations manager.

“It now accounts for about 2-1/2 percent of our sales, and it’s trending in the right direction,” she says.

The store currently stocks 16 feet of dog and

cat nutrition and 12 feet of equine. “With equine feed we’re the only distributor in Minnesota, so we’re attracting customers from up to 60 miles away,” Morgan says. Morgan says there are basically four levels of pet food and holistic and organic is at the top as the most premium choice. Although it costs about 50 percent more than non-premium animal food, its nutrition content results in feeding the animals a lot less each time. A 30-pound bag will last six to eight weeks, she points out.

Upper: The Raw Bar section features freezedried products offering high nutrition with minimal processing.

Lower: Mapleton Farm & Home has established a niche with organic and holistic food for animals.

They held an event in August to introduce the holistic food and educate customers about it. “We don’t sell products, we educate customers. There are plenty of other places where they can buy the other types of animal food,” Morgan says. “Animals are a part of their family. Once you explain the differences, people are hooked. The main driver is we’re the guardians of these companion animals. They don’t have a choice like we do on what to eat, so there’s a responsibility to make informed decisions on what’s best for them.”

center Hardware Marks

135tH anniversary by Moving to bigger location

After nearly 30 years at its current location, Center Hardware & Supply Co., one of San Francisco’s oldest familyowned hardware stores, moved to a new building in the Dogpatch neighborhood that offers more parking, more space, an expanded inventory and easy access to the freeways.

The store celebrated with a grand opening to the public and ribbon cutting on January 27. The celebration featured food trucks, discounts, vendor demonstrations and product giveaways.

Lower: Center Hardware has been busy since moving to a new location in San Francisco’s Dogpatch neighborhood.

Keith Gentner and his daughter, Jamie, have operated Center Hardware since 1980 after Keith merged Ocean View Hardware into Center Hardware. Keith and Jamie are committed to continuing Center Hardware’s reputation and extensive product lines that have served the Bay Area since 1880. Center Hardware offers more than 60,000 unique items and specialized concierge-level service.

“We like to say we are woven into the fabric of this city,” said Jamie Gentner.

“Whether you are a homeowner who needs a single light bulb or a city contractor who needs bulbs for the entire Bay Bridge, we can supply what you need and our sales staff will treat you like a king.”

She adds, “Our new location will make it even easier to shop with us and we have expanded our inventory to offer our wide range of customers even more products that are available immediately.”

The store expanded its selection of paints and has added paint-mixing services. Employees pride themselves on taking time with each customer and being able to supply hard-to-find items or source things for special orders.

In the new 20,000-square-foot retail location, Center Hardware carries 30 percent more products and offers free delivery in the Bay Area on orders over $75. The store specializes in commercial and industrial tools and materials, with decades of experience working with San Francisco City departments, building engineers, hotels, airports and contractors.

Noteworthy architect and 20-year customer Olle Lundberg with Jamie Gentner.

With several owners, name changes and relocations throughout its 135 years in business, the store has supplied many of the tools that built San Francisco. Center Hardware opened in 1880 as PA Smith Hardware & Glass.

When the 1906 earthquake and fire destroyed the shop, Owner Peter Smith moved to a ramshackle building on Bluxome Street. In the 1930s the shop was sold to Heinz Zolbach and the store name was changed to Center Hardware. Zolbach operated Center Hardware until the Blanz family bought the store in the 1970s.

When Ernie Gentner returned from WWII in the 1940s he took over the operation of Ocean View Hardware from his uncle in San Francisco’s Ocean View neighborhood. Ernie and his son, Keith Gentner, turned Ocean View Hardware into a robust neighborhood business.

In 1980, Keith Gentner bought into Center Hardware. Ocean View Hardware was no more, but business at Center Hardware was booming. Within a few years, Gentner expanded Center Hardware’s business and inventory to the point that the little store on 4th Street was bursting at the seams. In 1987, Center Hardware moved to a larger location on Mariposa Street.

Now in its latest historic move, Center Hardware is extending its reach to the Dogpatch neighborhood. n

Behind the Numbers

500,000

Number of new users added to Facebook each day.

72%

Percentage of U.S. adults who visit Facebook at least once a month.

32%

Percentage of Facebook users who engage with brands regularly, according to Brandwatch.

50 million

Number of businesses that use Facebook pages.

310 million

Number of monthly active users of Twitter, according to Brandwatch.

85%

Percentage of the 100 million users of Pinterest who are female, while 67% are millennials, according to DMR.