Hardware Retailing April 2021

Staying on Key

The 4 Retail Metrics You Should Be Tracking Page 30

How to Partner With Local Service Providers Page 42

Offi ce Supplies, Toys & TVs...Oh My! Page 48

Staying on Key

The 4 Retail Metrics You Should Be Tracking Page 30

How to Partner With Local Service Providers Page 42

Offi ce Supplies, Toys & TVs...Oh My! Page 48

A CUSTOMIZED APPROACH

STOCKED AND LOADED

FILL YOUR SHELVES WITH THE MOST RELIABLE PEST CONTROL IN RETAIL

The Antidote for Ants RESCUE!® Ant Baits

When customers come rushing this spring, make sure you have an arsenal of RESCUE!® products to offer. For insects of all kinds, offer the full line of USA-made baits, repellents and traps that are free of harsh chemicals. Visit Rescue.com/BookNow for more information.

CONNECTIONS Follow Us Online

HEADQUARTERS

136 N. Delaware St. #200 Indianapolis, Indiana 317-275-9400

NHPA@YourNHPA.org YourNHPA.org

OUR MISSION

The North American Hardware and Paint Association (NHPA) helps independent home improvement and paint and decorating retailers, regardless of affiliations, become better and more profitable retailers.

NHPA BOARD OF DIRECTORS

CHAIRMAN OF THE BOARD

Daniel Harris, Palos Ace Hardware, Palos Heights, Illinois; Lemont Ace Hardware, Lemont, Illinois

EXECUTIVE VICE CHAIRMAN

Jared Smith, Jared’s Ace Hardware, Bishopville, South Carolina

DIRECTORS

Craig Bond, Tommy’s Paint Pot, Eugene, Oregon

David Dishke, Grand River Home Hardware, Caledonia, Ontario

Scott Jerousek, Farm and Home Hardware, Wellington, Ohio

Ryan Ringer, Gold Beach Lumber Yard Inc., Gold Beach, Oregon

Jackie Sacks, Round Top Mercantile Co., Round Top, Texas

Matt Woods, Woods Hardware, Cincinnati, Ohio

SECRETARY-TREASURER

Bob Cutter, NHPA President and CEO

STATE & REGIONAL ASSOCIATIONS

MIDWEST HARDWARE ASSOCIATION

John Haka, 201 Frontenac Ave., P.O. Box 8033 Stevens Point, WI 54481-8033; 715-341-7100; 800-888-1817; Fax: 715-341-4080

NHPA CANADA

NHPA CANADA

Michael McLarney, +1 416-489-3396, mike@hardlines.ca 330 Bay Street, Suite 1400 Toronto, ON, Canada M5H 2S8

CIRCULATION, SUBSCRIPTION & LIST RENTAL INQUIRIES

CIRCULATION DIRECTOR

Richard Jarrett, 314-432-7511, Fax: 314-432-7665

COMING IN MAY

All-Star Products

Researching products and discovering the next big item or department for your operation is crucial to bringing in new business and creating returning customers. Getting inspiration from your high-performing peers is a great place to start that research. Next month in the magazine, celebrate retailers who have taken core categories to the next level in our Category All-Stars roundup. See how retailers are merchandising, selling and differentiating in key departments, like lawn and garden, paint, hand and power tools, impulse and more.

Join Us for a Webinar “2020 Retailers’ Choice Awards” Hosted by Dan Tratensek, NHPA Wednesday, May 19 Register at YourNHPA.org/webinars

OPERATIONS SERIES

NHPA

Hardware Retailing (ISSN0889-2989) is published monthly by the North American Paint and Hardware Association, 136 N. Delaware St. #200, Indianapolis, IN 46204. Subscription rates: Hardware Retailing (Payable in advance): U.S. & possessions $50/year. Canada $75/year. All other countries $100/year. (Air Mail $60/year additional). Single copy $7. The Annual Report issue can be purchased for $30. Periodical postage paid at Indianapolis, Indiana, and additional mailing offices.

POSTMASTER: Send address changes to Hardware Retailing P.O. Box 16709, St. Louis, MO 63105-1209.

All editorial contents © 2021 North American Paint and Hardware Association. No editorial may be reproduced without prior permission of the publisher.

REPRINTS: For price quotations, contact the Editorial Department at editorial@YourNHPA.org. Printed in the U.S.

EDITORIAL, DESIGN & PRODUCTION 317-275-9400, editorial@YourNHPA.org

MANAGING EDITOR

Melanie Moul, mmoul@YourNHPA.org

PROFILES EDITOR

Kate Klein, kklein@YourNHPA.org

TRENDS EDITOR

Todd Taber, ttaber@YourNHPA.org

PRODUCTS & DIGITAL EDITOR

Hans Cummings, hcummings@YourNHPA.org

ASSOCIATE EDITOR

Lindsey Thompson, lthompson@YourNHPA.org

SENIOR DESIGNER

Aubrey Smith

GRAPHIC DESIGNER

Autumn Ricketts

DIGITAL MEDIA SPECIALIST

Kevin Trehan

PRODUCTION MANAGER

Austin Vance

SALES & PRODUCTION ASSISTANT

Freda Creech

MARKETING & COMMUNICATIONS

EXECUTIVE DIRECTOR, MARKETING & COMMUNICATIONS

Whitney Daulton

CORPORATE COMMUNICATIONS MANAGER & EDITOR

Julie Leinwand

NHPA SALES

FIELD SALES MANAGER Scott Gilcrest, sgilcrest@YourNHPA.org, 317-508-7680

MIDWEST SALES DIRECTOR

David Brodowski, dbrodowski@YourNHPA.org, 440-520-9551

SOUTHERN SALES DIRECTOR Scott Gilcrest, sgilcrest@YourNHPA.org, 317-508-7680

NORTHEAST & NORTHWEST SALES DIRECTOR Jordan Rice, jrice@YourNHPA.org, 217-808-1641

CANADA SALES DIRECTOR Matt Caruso, mcaruso@YourNHPA.org, 224-456-3366

EXECUTIVE STAFF

PRESIDENT & CEO

Bob Cutter

CHIEF OPERATING OFFICER & PUBLISHER

Dan Tratensek

CHIEF FINANCIAL OFFICER & EXECUTIVE VICE PRESIDENT, BUSINESS SERVICES David Gowan

MEMBER SERVICES & TRAINING 800-772-4424, NHPA@YourNHPA.org

TRAINING MANAGER & EDITOR Jesse Carleton, jcarleton@YourNHPA.org

RETAIL ENGAGEMENT SPECIALIST

Renee Changnon, rchangnon@YourNHPA.org

EVENT MANAGER & RETAIL SUPPORT

Katie McHone-Jones, kmchone-jones@YourNHPA.org

DATA & INFORMATION COORDINATOR

Natalie Harris

EXECUTIVE DIRECTOR, PAINT & DECORATING PROGRAMS

LeAnn Day, lday@YourNHPA.org

EXECUTIVE DIRECTOR, ADVANCED RETAIL EDUCATION PROGRAMS

Scott Wright, swright@YourNHPA.org

Keys to Success

Understanding how key retail metrics influence your operation is crucial. Learn what insights Brett Thorne, operations officer of Thorne Lumber, has discovered from evaluating his business performance and what core figures other retailers are regularly reviewing.

38 CATEGORY SPOTLIGHT

Lights, Camera, Action

In North Hollywood, California, Mark’s Paint Store serves a unique niche market, supplying the motion picture industry with paint and sundries for television shows, movies and more.

Partnering With Providers

Many retailers offer in-house services like glass cutting and screen repair, but working with a local service provider can expand your reach, creating convenience for customers and developing connections in your community.

Hidden Heroes

Non-hardware categories may deserve a place in your store. Learn more about three niche categories two retailers say have brought more customers through the door and provided a big boost to their sales.

PORTABLE DEHUMIDIFIERS

Comfort-Aire dehumidifiers are designed to efficiently and quietly remove moisture from the air—and to look good doing it! Compact, sleek cabinets are stone white in color and roll easily from room to room on durable casters.

Comfort-Aire dehumidifiers come in sizes to effectively handle a variety of conditions and a wide range of space requirements, including new units with built-in pumps for fastest direct drain removal of condensation.

ON THE WEB

CONNECTIONS Stay Informed

There’s much more to discover from this month’s issue of Hardware Retailing. Visit hardwareretailing.com/april to read these articles and find new ways to drive your business.

High-Key Success

Regularly tracking your key retail metrics helps you uncover new potential within your business. After reviewing the metrics retailers are tracking, check out these resources to dig deeper into the numbers that power your business.

Financial Glossary

Help your team understand financial terms, formulas and their uses by downloading an easy-to-use glossary. Share with your administrative staff to strengthen the bottom line.

Metrics in Motion

Watch a quick video from Epicor to understand how your POS technology can help you uncover raw data to better understand key facts about your business.

Boost Your Metrics Handbook

Download a comprehensive guide detailing four key metrics to find and quick tips to help you motivate staff to boost each metric. Share with employees to help every staff member excel.

Find More Stories Online

OPERATIONS

Paint It Green

Learn more about PaintCare, the organization whose mission is to help painters safely dispose of their unused paint products. Plus, get tips on how you can increase foot traffic and help customers reduce paint waste.

OPERATIONS

Finding the Right Vendor

New products engage customers. If you’re looking for a vendor to supply the new niche you want to add to your business, consider these suggestions for finding the right match.

ASSOCIATION

3 Ways to Win

The Cost of Doing Business Study helps every retailer understand the independent home improvement industry. Get more insight into exactly how the annual study helps retailers find new ways to understand and streamline their businesses.

At the typical hardware store, total payroll accounts for 22.5% of sales.

Source: 2020 Cost of Doing Business Study

Head to hardwareretailing.com/subscribe to sign up for newsletters on industry headlines, new products and more.

EDITORIALLY SPEAKING

CONNECTIONS

Send Melanie a Message mmoul@YourNHPA.org

Melanie Moul

YourNHPA.org/es-pod

“Every year for more than a century, we’ve been collecting financial data from retailers to create a benchmarking tool unlike any other.”

Count on the Data

I’M NOT ONETO PUT TOO MUCHSTOCK in other people’s opinions. I’m not easily flustered or rattled, and my son singing “Rocketship Run” at the top of his lungs in the line at the grocery store barely brings a flush to my cheeks. However, while taking the general embarrassment of early parenthood in stride is something of a skill, this personality trait in other facets of my life could lead me to be called “stubborn.”

I rarely take anyone’s advice when they suggest I watch a new show or listen to a new song. I am more focused on comfort than fashion (also probably a symptom of early parenthood). I didn’t read the Harry Potter series until I was 30, and—gasp—it wasn’t my thing. There is something inherent in me that resists anything the general public finds joy in, and that is sometimes frustrating for me, and, in the case of Harry Potter, hurts some friendships. (Just kidding...I think.)

Luckily for you, what’s great about this publication and all the resources the North American Hardware and Paint Association provides is that we’re not relying on public opinion to develop our content. We’re relying on your peers to share how they have found solutions to challenges affecting retailers from coast to coast. We seek out expert advice from analysts who have been in the industry for decades and share those insights with you so you can determine how they may impact your operation.

And, every year for more than a century, we’ve been collecting financial data from retailers to create a benchmarking tool unlike any other in the industry. The annual Cost of Doing Business Study compiles operating metrics from typical and high-profit independent home improvement businesses to represent a baseline for the industry. Key data points like sales per employee and GMROI are necessary to understand and track in your own operation, but without that baseline, you can’t know the overall health of your organization.

The more people who participate in the initial survey, the stronger and more representative of the industry the final study is. All the data you submit is completely confidential, and you receive a personalized financial analysis in return. To contribute to this industry resource, visit YourNHPA.org/codb This is one of those situations where you really should take someone’s word for it. You’ll love it, I just know it.

Melanie Moul Managing Editor

GET EDGY

TAKING CARE OF BUSINESS

CONNECTIONS Send Dan a Message dant@YourNHPA.org

Dan Tratensek YourNHPA.org/tcb-pod

“Before you can be better, you have to know how you measure up right now. Next, you have to understand what better is.”

A Philosophical Approach

PROBABLY THE FIRST time I was ever really immersed in the concept of “critical thinking,” I was a freshman in college taking Professor Putman’s Intro to Philosophy class.

I was truly amazed at how we could take such simple concepts and then unravel them into smaller and smaller parts to gain a better understanding about the world around us. I thought of Professor Putman’s class recently when I was preparing a presentation about retail metrics. I know it doesn’t sound like a topic that would be particularly “philosophical” but bear with me for a minute.

The question I think we should all start with, before we dive into retail metrics is a pretty simple one. How do you get better at retailing? For that matter, how do you get better at anything you do?

Ah, now you might see what I am on to. (Or, maybe not.)

Improvement of any kind is a process. But before you can even start to improve on anything, you need to understand where you are right now. It’s true whether you are trying to improve your golf game, your waistline or your retail operation. Before you can be better, you have to know how you measure up right now. Next, you have to understand what better is.

With golf, it’s easy. A lower score at the end of the round = better golfer. But with retail, what are the metrics you measure by?

Some might say it is topline revenue. Well, I’ve seen a lot of businesses grow sales and spend themselves out of existence. What about net profits? I’ve also seen businesses drive so hard to produce profits that they fail to invest in the operation. Here’s where it is so important to start understanding how retail metrics work and why you should constantly be monitoring your operation’s performance against other known factors.

In this month’s cover story, we show how you can improve your operation by integrating retail data into your management and goal setting. By clearly understanding where your business stands now, you can then move on to where you want to take it and how you want to get there.

Once you have that worked out, you might have the time to start tackling other philosophical dilemmas, like does a bucket of paint make any sound falling off a shelf if no one is in the store to hear it?

Dan M. Tratensek Chief Operations Officer & Publisher

IT’S GROW TIME.

A REBATE LIKE NO OTHER PRESENTS OPPORTUNITIES LIKE NO OTHER.

Faced with the year’s many challenges, Do it Best member-owners still found ways to shatter existing sales records and earn a record rebate of $128 million. Now, you have exciting opportunities to invest in your business like never before.

“THE ABILITY TO DELIVER LARGE PRODUCTS AND MATERIALS BUILDS A STRONGER CONNECTION BETWEEN MY CUSTOMERS AND MY BUSINESS.”

Kelvin Zafke

Hackensack Lumber & Hardware, Hackensack, MN

Professional contractors and do-it-yourselfers alike rely on Hackensack Lumber & Hardware to meet their needs for building materials and hardware. This year’s exceptional rebate empowered Do it Best member Kelvin Zafke to make strategic moves in his business — enhancing the service his customers value. With a new flatbed truck to upgrade his delivery fleet and dynamic new product assortments, Kelvin’s rebate is being put to use as an investment in growth.

“MAJOR REBATES MEAN MAJOR CHANGES — THIS IS THE PERFECT OPPORTUNITY TO MOVE MY BUSINESS FORWARD IN A BIG WAY.”

Harlan, Kentucky, is about to have a new shopping experience at Southern Wholesale. Do it Best member Matthew Fox is using his rebate to launch an ambitious store improvement project, adding lawn & garden and sporting goods to his product offerings for the first time. He is also investing in several new flatbed trucks to bring his hardworking fleet up to date.

As a Do it Best member, you’re starting a new year with strong momentum and the resources to make a major difference in your business. Now is the time to fuel your growth — contact your Do it Best territory sales manager or call 888-DO-IT-BEST (888.364.8237) today.

doitbestonline.com

Discovering Metrics

Participation in the Cost of Doing Business Study is free, easy and confidential. To learn more or participate, visit YourNHPA.org/codb.

Gain Insights

2021 Cost of Doing Business Study

DO YOU KNOW HOW your operation stacks up compared to typical and high-profit operators in the industry?

The North American Hardware and Paint Association (NHPA) is now inviting hardware store, home center, lumberyard and paint and decorating outlet retailers to participate in the 2021 Cost of Doing Business Study. For more than 100 years, NHPA has collected information from independent retailers for the study. Each year, this financial benchmarking tool delivers data and insights that allow retailers to increase profits and strategize for their financial future and success.

The final day to submit your operation’s financial data is June 30. By participating in the study, you’ll receive a free copy of the study along with a personalized financial analysis of your operation with ratios and other financial tools.

“Participation in the Cost of Doing Business Study gives you access to data for typical and high-performing operations in the industry so you can benchmark your performance,” says David Gowan, NHPA chief financial officer and executive vice president of business services. “It allows you to make informed decisions to better position your operation for years to come.”

How You Can Participate

Participate in the 2021 Cost of Doing Business Study to receive free access to the study’s results, a personalized financial analysis and to help other retailers like you. The information you provide is confidential, and you can choose from four easy ways to share your information with NHPA.

OPTION

Upload it.

1

Complete the online Cost of Doing Business Study form and upload your 2020 year-end financial documents at YourNHPA.org/codb

OPTION

2

Email it.

Send your company information and 2020 year-end financial statements to NHPA CFO David Gowan at dgowan@yournhpa.org

OPTION 3

Fill out the survey and mail it. Print and complete the survey using your 2020 year-end financial data and mail it to NHPA.

OPTION 4

Attach your statements and mail it. Fill out the company information section of the survey, and attach a copy of your 2020 year-end financial statements and mail them to NHPA.

NHPA’s Mailing Address

Attn: CODB Coordinator NHPA 1025 E. 54th St. Indianapolis, IN 46220

ASSOCIATION

Check Your Email

Confirm your email preferences by visiting YourNHPA.org/subscribe.

Webinars to Watch

Reserve your seat for upcoming live webinars or view past webinars at YourNHPA.org/webinars

Featured Webinar

How to Lead Diverse Teams

APRIL 21 AT 2 P.M. Does your team reflect the diversity of the community you serve? This webinar covers hiring practices and the steps you can take in your business.

Past Webinar

Key Retail Metrics

MARCH

Key metrics are gaining prominence among high-performance retailers. Learn how to evaluate the success of your business with these insights.

Upcoming Webinar

Retailers’ Choice Products

WEDNESDAY, MAY 19 AT 2 P.M.

Celebrate the products that caught retailers’ eyes at the 2020 National Hardware Virtual Show in this presentation of the 2020 Retailers’ Choice Award winners.

Podcasts to Play

Subscribe or listen to podcasts at YourNHPA.org/podcasts

“While in-store has come back, online hasn’t gone away. These online behaviors look to be holding now that we are 12 months deep, and the data is supporting that.”

Taking Care of Business

EPISODE 36

Dan checks in with analyst Grant Farnsworth to learn about current and projected consumer attitudes toward home improvement.

“I felt on top of the world the day I took ownership. It’s the greatest feeling, besides meeting my wife or having our daughter. Having the business is No. 3 for me.”

Tell Me More...

EPISODE 28

Renee talks to Ben Honeycutt of Oak Knolls Hardware about shifting from the space industry to the hardware industry.

“Independents compete with big boxes on price, distribution and breadth of choice. The key way for them to win customers is by creating intangible brand value.”

Editorially Speaking

EPISODE 10

Melanie talks to branding expert Lara McCulloch about how small business operators can drive customers to their stores with key marketing tips.

EDUCATION

Academy for Retail Development

Visit YourNHPA.org/academy for more information on NHPA’s educational offerings.

EDUCATION

Enroll in a Management Course on Leading Your Team

The deadline to enroll is May 1. Visit YourNHPA.org/fol to learn more or apply.

ARE YOU LOOKING for ways to help new managers or supervisors find success in your operation? The Leading Your Team course, part of NHPA’s Foundations of Leadership program, can help give new leaders the confidence, knowledge and skills they need to succeed.

Foundations of Leadership is an online, college-level leadership development program designed to fit students’ busy schedules. Students will walk away from the nine-week Leading Your Team course with insights into the components of building and leading a team,

“I will use everything I've learned in this course to communicate with employees and be a leader they can trust.”

Madison Franklin Gold Country Ace Hardware CAMERON PARK, CA

including communication skills, conflict management, talent development and ongoing performance management.

Students will also complete a real-world capstone assignment for their business. The project will focus on solving a problem or capitalizing on a missed opportunity in the business.

“If you are new to leading and managing teams or have never been through a formal leadership development program before, this course will provide the building blocks for success,” says Scott Wright, executive director of advanced retail education programs for NHPA.

Brush Up on New Paint Training

This NHPA training is available to Premier members. Visit YourNHPA.org/membership to learn more.

EMPLOYEES WHO HAVE A reputation as product knowledge experts can help you build a loyal customer base. NHPA has added two new paint training courses to help you build that team of experts in your paint department. This training will take employees beyond the basics to more advanced levels of knowledge so they are ready to help any customer— from the weekend warrior to the professional.

Coatings Specialist

Get an in-depth look at all types of paints, stains and coatings typically sold in a paint department. Employees will learn about types of applicators, the color wheel, color theory and selling skills.

Paint Customer Service Specialist

Employees will learn about selling skills and helping customers in the paint department. Topics include the basic steps of retail paint sales, add-on selling, dealing with difficult customers and more.

2021 COLORS OF THE YEAR

Keep up to date on the latest color trends by reviewing the colors of the year from major paint manufacturers. Trainer’s Toolbox will make it easy to present this information to your staff. This free resource is available to all retailers at YourNHPA.org/product-knowledge.

RESEARCH

DIY Data

Get more DIY home improvement data at hardwareretailing.com/tracking-diy TRENDS

3 DIY Trends

SHAPING THE MARKET

MORE THAN ONE YEAR into the COVID-19 pandemic, homeowners have adopted new views and priorities for their living spaces. The Home Improvement Research Institute (HIRI) and market research firm the Caney Group recently interviewed 20 homeowners to learn specifically which home renovation trends are likely to endure after the pandemic.

For more information on HIRI’s array of pro and DIY research, visit the organization online at HIRI.org.

The pandemic forced the cancelation of many summertime favorites. Backyards have taken on new importance as areas of safety and comfort. As warm weather arrives, be sure you’re merchandising fire pits, patio pavers, furniture and grilling upgrades prominently in your store.

Data shows small DIY projects have been more common than extensive remodeling work during the pandemic. It’s important to help shoppers understand how quick and easy some of these projects are, including retiling backsplashes, painting cabinets or changing light fixtures.

For many homeowners, exterior upgrades were seen as the safest option when hiring contractors. As travel was limited, these projects jumped to the top of homeowners’ priority lists. Painting, roofing, gutter replacement and other outdoor renovation projects saw an increase in activity.

NEW PRODUCTS

PRODUCTS

Retailer Recommendations

Send a note to editorial@YourNHPA.org about products you can’t keep on the shelf. Include your name, your business name and reasons why you love them.

Infrared Thermometer

Ecboo™’s Non-Contact Infrared Thermometer features one-second detection, a fever alert and low-battery reminder. It is suitable for contactless measuring of forehead temperatures, can switch between Fahrenheit and Celsius with one button and is more hygienic than oral thermometers. It has a measure distance of 3-5 cm, and uses two AAA batteries.

ECBOO™ ecboo.com or sales@ecboo.com

Refrigerator Caddy

YouCopia’s RollOut™ Fridge Caddy includes two adjustable dividers to create custom-size compartments. It is BPA-free, has a sturdy handle for carrying and requires no assembly.

YOUCOPIA youcopia.com or 888-973-9288

Credit Card-Sized Multitool

The Tactica Camping Credit Card Tool features integrated sundial, bottle opener, can opener, rulers, rope cutter and ferro rod. Compact and lightweight, it is available in black, silver, orange or titanium finishes.

TACTICA tacticagear.com or sales@tacticagear.com

“

We have sold tens of thousands of stickers making this display the most profitable 2 square feet in our store by far.”

—Mark McKee, The General Store, Spokane, Washington

Vinyl Stickers

Stickers Northwest Inc.’s vinyl stickers are weatherproof and suitable for laptops, water bottles, automobiles and more. They are available in hundreds of designs and can be customized to your location. The stickers and displays are made in the U.S. STICKERS NORTHWEST INC. stickersnorthwest.com or 253-344-1236

Expanding Electrical Outlet

TheOUTlet - USB provides four receptacles and two USB ports in a single housing. It includes tamper-resistant features, a cover plate and fits existing receptacle boxes. It is tested to UL and CSA standards.

SECRET SOCKETS LLC opentheoutlet.com or info@opentheoutlet.com

In-Slab Conduit Support

The HOLDRITE™ 703 Series provides a protective recessed cavity in the upper portion of a concrete floor, providing space for the protection of one or two 1⁄2-inch PEX tubes or 3⁄4-inch electrical conduit.

HOLDRITE™ holdrite.com or 877-700-4242

Snapper Shears

Snapper Shear Pro adapts to any 18-volt or greater cordless drill. It will cut through fiber cement board up to ½-inch thick. The shear is designed to enable users to cut circles and curves into backer board as small as 3 inches in diameter, as well as straight and 90-degree cuts.

PACTOOL gti-brands.com or 800-697-8665

Mini Under Desk USB Charger

Mockett’s UCS3 provides two accessible USB ports to power mobile devices. The under desk mount leaves the work surface free. The unit features blue indicator lights that activate when the unit is powered and ready for use. It is available in black or white and includes an AC adapter with a 4-foot cord.

DOUG MOCKETT & CO. Mockett.com or 800-523-1269

Construction Adhesive

LIQUID NAILS® FUZE*IT® MAX™ is an interior and exterior all-purpose construction adhesive. It utilizes hybrid technology to bond almost everything in any weather condition and features instant initial grab.

LIQUID NAILS

liquidnails.com or 800-634-0015

At Mi-T-M, we pride ourselves on building mighty, damn good equipment. It’s what sets us apart from our competition. Our industrial line is built to withstand demanding work conditions. When you purchase equipment with the Mi-T-M name on it, you are buying dependable equipment that is designed, built, and tested by good people. Mighty. Damn. Good. www.mitm.com 800-553-9053

Silicone Lid With Straw

Made from 100 percent platinum silicone, this universal lid fits over a wide variety of cups and glasses. It is soft, nontoxic, eco-friendly and dishwasher safe.

GOSILI gosili.com

Outdoor Insect Trap

DynaTrap®’s Insect Trap attracts and kills mosquitoes and other nuisance flying insects including biting flies, wasps, stink bugs, moths and Asian beetles. It protects up to a 1⁄2 acre and features durable, all-weather construction.

DYNATRAP® dynatrap.com or 877-403-8727

Pneumatic Nail Gun

Despite its heavy-duty construction, SENCO’s JoistPro™ 250XMP weighs nearly two pounds less than its closest competitor. It fires 1 ½-inch to 2 ½-inch nails ranging from .131 to .162 inches in diameter. The 360-degree adjustable exhaust port directs blowback away from the user and the gun includes a lockout that prevents dry firing and a full-comfort grip to reduce fatigue and minimize slipping.

SENCO

senco.com or 800-543-4596

Hive Pest Repellent

Just Scentsational Hive Scentry protects bee hives from mice, skunks and other hive pests. It uses all-natural, humane and harmless predator scent which repels pests, but will not harm bees.

BARE GROUND bareground.com or 888-800-8356

Folding Aluminum Ramp

Link’s 42-inch wide spring-assisted folding ramp features a robust steel deck mounting plate and has a capacity of 1,250 pounds. It is suited for cargo vans, and when mounted to one side, will not block door access. When folded into its upright and closed position, the ramp takes up less than 12 inches of horizontal space in the area just inside the door.

LINK MFG. LTD.

linkmfg.com or 800-222-6283

Portable Sanitizing System Waist Pack

The ExtremeMist® PSS Waist-Pack provides easy access to gear and hydration bottles. It can be used as a standalone hydration pack or zips to the bottom of the Portable Sanitizing System backpack. It features a large zippered compartment with key clip, bungee attachment, two side zippered pockets, dual hydration bottle holders and a mesh back panel for comfort.

EXTREMEMIST PCS LLC portablesanitizingsystem.com or 602-368-9625

Beehive Plunger

Shaped to fit modern toilet bowls to achieve an effective seal, Korky Beehive Plungers fit all drain types, including new and old toilets, sinks, shower drains, bathroom and utility sinks. The T-handle allows for a comfortable and powerful plunge. Korky Beehive plungers are made in America.

LAVELLE INDUSTRIES korky.com or 262-763-2

262-763-2434

Magnet

Magnetic Lawn Tractor Key

Ignition Key by INTU-Keys is a master that fits over 1,500 power equipment models from major manufacturers, Craftsman, Cub Cadet, Husqvarna, John Deere,

The Magnetic aster ignition key tha models from ma , including Ariens, Craftsman, Cub Ca arna, John Deere, Murray, Troy-Bilt and more with no cutting required. The built-in magnetic allows for stealth concealment and it can be used as a spare or replacement key.

INTU-KEYS intukeys.com or 215-533-2581

CHECKOUTS

OUTREACH

Share Your Stories

Send your merchandising tips, event recaps, employee morale boosters and other stories to editorial@YourNHPA.org

RETAILER ORGANIZES FUNDRAISERS FOR LOCAL FOOD BANK COMMUNITY

Buckets of Kindness

Windsor Ace Hardware has made a tradition out of contributing to a local food bank that helps provide food, toiletries and grant money to pay utility bills for people in need in its Windsor, Connecticut, community. The store’s contributions in 2020 were especially meaningful.

OWNER SCOTT HOFFMAN organized two fundraisers at the store for the food bank. For one of the fundraisers, he ordered yard signs thanking frontline workers and sold them for $10 each. The other fundraiser was a bucket sale. Windsor Ace gave away plastic buckets for a suggested donation of $5 to the food bank and then gave donors 20 percent discounts on all the products they could fit in their buckets that day. The store sold 80 thank you signs and 100 buckets, but shoppers donated more than the suggested donation amounts.

“Being local means giving back locally. We could never have succeeded without our community support in 2020,” Hoffman says. “It was a rough year for everyone, so it was important for us to be able to step up when a lot of other people couldn’t.”

Pallets for Practice

Wooden pallets aren’t usually a hot commodity at McKeithen’s True Value Hardware in Statesboro, Georgia, until they pile up at the store. Then McKeithen’s donates them to the local fire department, which uses the wood during controlled burns for training.

Giving away piles of the pallets has been a simple but practical way for McKeithen’s to support local first responders.

“The goal is to give new officers experience with actual fire,” store co-owner Tom McKeithen says. “They have to do physical training and have real fire to work with.”

Honoring Mask Wearers

Evans Ace Hardware in Hamilton, Montana, has provided customers with more than 10,000 free disposable masks to help make shopping a safer experience during the COVID-19 pandemic. In honor of all the shoppers who have used the free masks instead of going maskless, store owner David Evans made a donation to a local hospice organization.

“These people have put temporary inconvenience aside to keep us safe.”

—David Evans Evans Ace Hardware

Sharing a Celebration

When L.A. True Value Hardware owner Art Eickhoff turned 80, his daughter Shelly Eickhoff invited customers near and far to celebrate him. Shelly manages the store in Kansas City, Kansas, and knew customers would want to honor her dad, even if the party had to be socially distant. She bought 80 cupcakes to give away and hung a banner outside the store asking drivers to honk to wish Art a happy birthday. Then she posted on the store’s Facebook page, inviting customers to stop by to see her dad on his big day. Art grew up working in his father’s grocery store and opened the hardware store in 1985, so he is a familiar and well-loved presence in the community. Customers enjoyed the cupcakes until they were gone and passersby honked all day. Some customers came from out of town just to wish Art well.

STRATEGIC SERIES

WEBINAR

Dig Deeper

Learn more about the value of key retail metrics by visiting YourNHPA.org/webinars

Winning the

Numbers

Game

KEY RETAIL METRICS UNLOCK STRATEGIES FOR SUCCESS

BY TODD TABER

Behind every facet of your business are constantly shifting numbers that offer insight and opportunity for running a more goal-focused, successful operation.

It’s not enough to simply identify these key retail metrics once. High-performance retailers are tracking these figures consistently, observing how small changes in one area can create ripple effects of opportunity in others.

On the following pages, discover how Brett Thorne, operations officer for family business Thorne Lumber’s three locations in Missouri, has unlocked the power of tracking key retail metrics over time and uses them to motivate his team and guide his business. Plus, explore the key metrics with insight from Jim Robisch, senior strategic adviser of The Farnsworth Group, to discover how a sharp focus on conversion rates, occupancy costs, employee productivity and marketing can bring your business new opportunities.

“The advantage of evaluating metrics is found by evaluating it more than once or twice,” says Robisch. “The value is finding a trendline that you can follow. It’s by observing change in any metric that helps you diagnose problems in your business and find ways to correct them.”

KEYED INTO SUCCESS

Brett Thorne, operations officer for Thorne Lumber, regularly reviews his business’s data to find ways to streamline the operation.

Find More Online

OPERATIONS

Financial Glossary

Help your team understand key financial terms with a handy reference guide at YourNHPA.org/financial-terms

OPERATIONS

POS Data

View a quick video from Epicor to derive helpful data at YourNHPA.org/epicor-data

OPERATIONS

Find Your Place

Learn how you can contribute to the Cost of Doing Business Study at YourNHPA.org/codb

OPERATIONS

Boost Your Metrics Handbook

Download a guide to each of the four key retail metrics and learn how your team can boost them at YourNHPA.org/boost-metrics

RETAIL RESEARCH

Brett Thorne (far left), operations officer for Thorne Lumber, reviews key retail metrics to find new potential for his business.

“With a resource like the Cost of Doing Business Study, you can see how you’re doing compared to the industry.”

—Brett Thorne, Thorne Lumber

A Constant Focus

Like many other home improvement retailers in North America, Brett Thorne saw sales rise throughout 2020, bolstered not only by the surge in DIY activity, but also Thorne’s sharp eye on the key retail metrics powering his business.

For more than 30 years, Thorne Lumber has served as a locally owned solution for hardware and building materials in northwestern Missouri. The business caters predominantly to professional customers purchasing materials, but also does a sizable business with DIYers. That mix of customers keeps every team member agile.

As operations officer for the family business, Thorne regularly evaluates core figures in his business, searching for small ways to uncover enormous advantages for the company.

“It’s one thing to look at your numbers—and that’s great, you have to know where you are—but if you don’t have anything to measure those facts against, are you really doing yourself justice? You may be getting better, but still be falling behind the curve,” he says.

One tool Thorne credits with helping him track success and opportunities for his business is the North American Hardware and Paint Association’s annual Cost of Doing Business Study .

Each year, Thorne submits his financial information to NHPA during the data collection period for the study. His information remains entirely confidential, and in return, NHPA provides him with a personalized report of not only his business’s key metrics, but also aggregate information on the independent home improvement marketplace as a whole.

Thorne says it’s important to track how his business performs beyond sales. He reviews each installment of the Cost of Doing Business Study and shares important findings with his managers, helping them learn more about Thorne Lumber and ways they can work together to reach new milestones.

“With a resource like the Cost of Doing Business Study , you can see how you’re doing compared to the industry,” he says. “Where do I need to improve? How can I make this figure rise while stabilizing another? Tracking your metrics without something like the Cost of Doing Business Study is like having a map without a compass—no true sense of direction.”

NUMBER OF TRANSACTIONS

NUMBER OF TRANSACTIONS

÷ NUMBER OF CUSTOMERS

÷ NUMBER OF CUSTOMERS

= CONVERSION RATE

= RATE

Conversion Rate

Conversion rate offers a direct view into customer engagement. A relatively simple metric, conversion rate can be analyzed daily, monthly, quarterly or annually to determine the success of short- and long-term projects and promotions.

CONVERSION RATE REPRESENTS

one of the quickest ways to evaluate how your business is performing. Choose a set period of time to evaluate this metric. Identify the total transactions in that period, then divide that figure by the total number of customers you served. That result is your business’s overall conversion rate, a transparent look into how well your business is engaging customers and making sales.

Robisch says conversion rate is a leading metric retailers should review regularly. He recommends taking a nuanced look at this simple metric by evaluating it in two ways.

First, identifying the absolute conversion rate, or the rate at which your store offered customers ‘the destination item,’ the single product that brought them through the doors, is valuable.

“That’s where a strong inventory comes into play,” Robisch says. “You have to be in stock to meet that initial demand a customer has for a product.”

Each conversion at your store comes with an opportunity to boost transaction size. Once your salespeople make a conversion, or a customer is at least strongly considering a purchase, try to upscale the item. Earnest recommendations about the quality or durability of slightly higher priced products can convince customers of your staff’s product knowledge, but also strengthen your bottom line sale by sale.

Secondly, Robisch recommends retailers look for a Plan B if a customer doesn’t purchase their destination item. Strong merchandising and savvy salespeople can help a customer purchase impulse or add-on items they didn’t initially plan on buying. While these sales may not offset a destination item, your team will still manage to salvage a sale and simultaneously boost this key retail metric.

Robisch says one pitfall of conversion rate is the potential to see it lowered by making strides with your marketing. As more people visit your store, your team will have to also boost conversion rate or risk seeing the figure slide. If you notice this imbalance, it could be wise to invest in greater sales training for your team.

“You have to be in stock to meet that initial demand a customer has for a product.”

—Jim Robisch, The Farnsworth Group

RENT OR MORTGAGE

+ UTILITIES

+ BUILDING INSURANCE

+ SECURITY

= OCCUPANCY COSTS

Occupancy Costs

Occupancy costs reflect the day-to-day reality of doing business out of your current location. This key retail metric represents a sliding scale: What you give up in one area of occupancy costs, you may have to repay elsewhere.

UNDERSTANDING THE FACTORS

influencing total occupancy costs helps you know where you could save money in other areas.

Thorne says occupancy costs, particularly the rent he pays, are a high-level metric, but he does share the figures with his managers.

“Occupancy costs change market by market,” Thorne says. “One business owner can have multiple locations and see vastly different occupancy costs store by store.”

To combat this discrepancy, Thorne says he takes a historical view of his occupancy costs and views it as a percentage of his total expense. Even though occupancy costs may fluctuate year to year or location by location, observing the percentage change can help you set a guiding standard for your operation.

Robisch says it’s important to view the figure alongside other expenditures. If a retailer invests heavily in securing a new, highly visible space, the cost of rent or a mortgage may impede them from staying flexible in other areas. Conversely, paying too little for a location in a less desirable area may appear more affordable, but a retailer may have to increase spending in advertising and security to get customers through the doors.

“Good locations can help you in many ways,” Robisch says. “Having a good location means you

“Having a good location means... you can focus primarily on strengthening your brand.”

—Jim Robisch, The Farnsworth Group

don’t have to do a lot of awareness communication; you can focus primarily on strengthening your brand.” Robisch says this metric could rise occasionally with unexpected repairs or equipment replacements. If retailers feel their occupancy costs are too high, investigating ways to reduce energy and utilities could be a solution. Talk to your utilities providers about opportunities for cost savings, like budget billing, find out if your wholesaler offers an LED lighting conversion program or consider alternative energy sources, such as solar power. Additionally, exploring low-cost advertising outlets could offset premium occupancy costs.

TOTAL SALES

÷ NUMBER OF EMPLOYEES

÷ NUMBER OF EMPLOYEES

= GROSS MARGIN

PER EMPLOYEE

= SALES PER EMPLOYEE GROSS MARGIN

Employee Productivity

There are many ways to measure employee productivity; each formula allows you to see how your staff is performing over a given period of time. Insight into this metric allows you to solidify your scheduling and ensure you meet customers’ needs seamlessly.

THORNE REGULARLY EVALUATES

sales per employee, gross margin per employee and gross margin per transaction to track overall staff productivity at his stores. However, he sees each metric as closely affiliated with other business rubrics, including total payroll, employee expenses and overall employee count.

He also uses the employee productivity results to establish and measure compensation.

“Earnings by performance is going to become increasingly important in the coming years,” Thorne says. “Home improvement is going to be seen not only as an essential business, but also an exciting one. We’re going to have to determine whether we’re paying workers appropriately and making home improvement a desirable industry for the long term.”

When sales per employee fall too low, it’s a clue to Thorne that he may be overstaffing his business. While high sales per employee can feel like a win, those figures may reveal your current staff is taking on too much and there is potential to hire additional workers for improved operational efficiency.

For Robisch, insights into employee productivity reinforce staffing decisions.

“The biggest issue with tracking employee productivity is to allocate sufficient staff to support your brand message and service objectives at particular hours of the day,” he says. “This metric

lets you see if you’re overstaffed or understaffed at any particular point.”

The Cost of Doing Business Study will help you pinpoint how independent hardware stores, lumberyards, home improvement centers and paint locations are doing in relation to employee productivity, helping you find a midpoint to determine your own performance.

“We’re going to have to determine whether we’re paying workers appropriately and making home improvement a desirable industry for the long term.”

—Brett Thorne, Thorne Lumber

Busting Myths

Discover five marketing myths to overcome in 2021 at hardwareretailing.com/marketing-myths

Marketing & Loyalty Program Engagement

Evaluating how effectively your marketing and loyalty programs engage your customer base is crucial for modern home improvement success. Beyond enticing customers to shop your store in person or online, these tools also deliver powerful customer data to guide your business.

THORNE SAYS HIS BUSINESS CATERS predominantly to pro customers, so his focus may not be as sharply aligned to retail loyalty programs as other retailers. Still, he serves a sizable DIY base and his locations feature product showrooms, which prompt him to consider marketing as a key retail metric.

“We do regularly review our advertising and marketing dollars,” Thorne says. “What kind of investment are we making on that end? Are we seeing true results?”

Investing in marketing or establishing a loyalty program can yield big results for your business. By advertising your brand, your inventory and your location, you can immediately draw more customers. Those actions can boost sales and help you solidify your brand. But beyond those benefits, strategic marketing and loyalty programs offer retailers valuable insight into exactly who their customers are and what home improvement products they need.

“The data from marketing and loyalty programs is the most valuable part,” Thorne says. “Seeing data of what your customers are buying is so important. By studying that data, you can gain repeat business. Targeting your future promotions based on that data can be an immediate strategic win.”

Robisch says data can offer concrete guidance on how to run your business.

“We need to have direct customer information to communicate with them instantly and take care of them as best we can.”

—Jim Robisch, The Farnsworth Group

“If you don’t have a loyalty program, you should,” says Robisch. “It’s an absolute necessity as the last year has shown us. We need to have direct customer information to communicate with them instantly, know what they need and take care of them as best we can.”

Robisch says some of these programs can serve as a way to maintain positive brand awareness, introduce special sales and simply remind customers you’re open for business.

“Loyalty programs can be the single differentiator, the deciding factor of where someone shops,” he says.

TRAINING

Painting Know-How

Encourage your employees to share painting tips and tricks with customers to sell the whole project and boost add-on sales. Read the tips at YourNHPA.org/training

Part of the North Hollywood scene for the last 40 years, Mark’s Paint Store has been supplying the motion picture industry with paint and sundries, working with some of the biggest names in the entertainment business.

CATEGORY SPOTLIGHT

MAKING MOVIE MAGIC

HOW A PAINT STORE BUILT ITS BUSINESS WITH THE MOTION PICTURE INDUSTRY

BY LINDSEY THOMPSON

A

fter 15 years working for another business that supplied paint and materials to the motion picture industry, Mark Umann faced a plot twist. That company was being sold, leaving him with a decision to make—stay on or move on. Umann choose to rewrite the script for his career, and in the process, created a successful family business, opening up Mark’s Paint Store in North Hollywood, California, in 1978.

Greg Umann, Mark’s son and co-owner at Mark’s Paint, says his dad jumped at the chance to open his own store and use the experience he amassed working for motion picture and television clients.

CATEGORY

Putting Paint First

See how two hardware retailers invested heavily in paint departments at hardwareretailing.com/prepare-paint-sundries

“When the owner of the company my dad worked for sold his business, my dad took a chance and opened up his own store to continue to serve motion picture clients,” Greg says.

From the store’s opening, Mark positioned himself as a go-to provider of paint and sundries to local studios, a niche the store has been catering to ever since, supplying some of the biggest names in entertainment with paint and supplies.

“We service most of the major studios within 30 miles, working with movie and TV companies like Universal Studios, Disney, Sony, CBS and Television City,” says Greg.

Along with working with the motion picture industry, Mark’s Paints supplies paints and sundries for theme parks, local events and outdoor concerts like Coachella. The business has many customers who are faux finishers, and it also works with contractors and the general public.

Casting the Characters

The family ties run deep at Mark’s Paint. As Mark grew the business, his wife, Barbara, was there working in the store alongside him. Greg has worked at Mark’s Paints for over 30 years, and his brother Mike is a longtime member of the staff and co-owner with Greg.

“My parents have both been here since the start,” Greg says. “They have mostly turned over running the store to me and my brother at this point, but they both still come in three to four days a week.”

Working at a paint store wasn’t part of Greg’s original storyline. He went to school to become a mechanical engineer, but says he didn’t like the unpredictability of government contracts.

“My dad took a chance and opened up his own store to continue to serve motion picture clients.”

—Greg Umann, Mark’s Paint Store

“I came to work at the store for one summer, and 30 years later, I’m still here,” he says. “After all this time, I couldn’t see myself working anywhere else.”

The rest of the family found their roles at the store too. Mike and his wife, Stacy, handle all of the office duties, with Mike running the website and keeping the point-of-sale system up to date.

Over the years, the company hired employees who have become like family, staying with the company for 20 years and more. Greg credits being understanding of their employees’ lives outside of work as one of the reasons they’ve stayed. Treating their employees fairly and like family has helped the business retain good workers.

“Our employees have been with us for years learning the business,” says Greg. “They understand what it takes to be successful with our entertainment clients, as well as our contractor and public customers.”

A Tale of Different Clients

Catering to this niche market means following a plan, but also being willing to ad lib at different times. Greg says selling to movie and TV production companies involves a high level of organization and the ability to be flexible and meet quick deadlines.

Each morning, the set painters call in their orders and it’s up to Mark’s Paint to get the supplies to each set location within one to two hours that same day.

Greg says the company prides itself on delivering to the customer, metaphorically and literally, with three trucks on the road every day dropping off supplies throughout Los Angeles.

Some of the aspects of the business carry over from the entertainment audience to the store’s other clients. Having the right products for the job is important for all the store’s clients, whether they’re painting a movie set or a master bedroom.

“The studios need a lot of the same paint and accessories that our public customers need,” Greg says. “They just need much larger quantities and need the product much quicker, sometimes as quick as 10 minutes after they place an order.”

MOVIE MEMENTOS

The walls at Mark’s Paint Store are filled with props, scripts, posters and show cards from some of the movies and TV shows the store has worked with over the years.

To keep all his customers happy, Greg keeps the store well-stocked with all the typical painting sundries. The store also stocks specialty items like poster and lettering enamels for sign-writing, metallic colors, crescent bronzing powders and faux finishing supplies and equipment.

The store even manufactures and sells its own brand of paint, Mark’s Studio Colors, a line of interior and exterior acrylic-latex paint made in the colors scenic artists use most often.

All the Extras

Nestled among the rows of paint cans, brushes and other supplies, you’ll find fun film and TV movie props, including Wilson the volleyball from the movie “Castaway” and a Welcome to Charming sign from the FX Network TV show “Sons of Anarchy.”

Movie posters and television and movie scripts fill nearly every wall space. The store also displays an impressive collection of show cards. Studio truck drivers place show cards in the windows of their trucks so they can get on and off the lot. Greg says they have been decorating with show cards since the 1970s when Mark’s Paint worked with a television movie called “Mark, I Love You.”

“The guy we worked with brought in the show card for that movie and my dad put it up on the wall,” Greg says. “Then another show client came in and said, ‘I want mine on the wall,’ and they kept coming and coming. It’s grown to hundreds today.”

The Rest of the Story

It’s been 43 years since Mark wrote the second act for his career, leading to a highly successful business. The staff’s dedication to stocking the items their clients need and their ability to deliver quickly contributes to that success. Since Mark’s Paints has been in business, Greg says they’ve never had to do any traditional advertising thanks to word-of-mouth recommendations from their satisfied clients.

While Greg says the business doesn’t have any significant growth plans for the next few years, they do plan to continue serving their customers with the same level of service that has made them successful.

“I don’t know what’s next,” Greg says. “But I do know we are going to keep doing what we have been doing and be here for another 43 years and more.”

Always on Time

Read about one retailer’s watch and clock repair business at hardwareretailing.com/time-center.

Creating Convenience

How Partnering With Local Service Providers Builds Customer Loyalty

BY LINDSEY THOMPSON

Whether it helps customers check off tasks on a household chore list or provides the means for them to enjoy favorite hobbies, a store that offers special services has many opportunities for building customer loyalty. Customers appreciate when retailers make their lives easier and they value being able to support local businesses.

Even as more customers turn to tackling projects themselves, there are still areas where they need a professional, which is a need retailers can fill by offering services in-house and with local providers. If retailers cannot hire employees with specialized skills to do the work in-house, they can link

customers to services by developing relationships with locals who do blade sharpening, specialty printing and other services.

Choosing the right outside service provider for your business includes doing your homework to discover what your customers need, finding what business can best fulfill those needs and considering how you can use cross-promotions and encourage add-on sales.

Hardware Retailing talked to three retailers who have partnered with local businesses and gathered helpful tips and best practices for finding local providers, establishing business relationships and promoting special services.

Keeping All Local

Learn how retailers who bank locally benefit their local communities at hardwareretailing.com/banking-local

Do Your Homework

When adding services to your store’s offerings, take into consideration what your customers need and want, and then do the research to find the right fit for your customers and your company.

Stace Heston, owner of Spokane Ace Hardware and Miller’s Hardware, purchased the Spokane Ace store in 2018. Soon after he took over, he started looking for a sharpener because he heard from customers that having access to sharpening services for knives, scissors, gardening tools and other implements was important to them.

It was also important to Heston that any service provider he chose could offer the same level of service he strived to offer customers in the store.

“When starting a relationship with a new provider, make sure whoever you choose does quality work,” says Heston. “Service providers are an extension of your business, so you want to be sure they are consistent and thinking about your customers first.”

Heston says he used his existing business relationships to search for a sharpening company for his new store. That initial networking led him to C&R Sharpening, a local company with a respected reputation in the area.

When Heston purchased Miller’s Hardware, also located in Spokane, Washington, in 2020, he was fortunate to inherit an established partnership and didn’t have to do as much legwork to find a quality service provider for that store. Another local sharpening business, Sharp Stuff, had been servicing Miller’s Hardware for decades before Heston bought the business.

“I reached out to Steve Schmauch, the owner of Sharp Stuff, and he was more than happy to continue the partnership with us,” he says. “He has a very long and strong reputation in Spokane, and it’s great he still brings customers to us.”

Sometimes, your homework may already be done for you, and it just takes looking at your current business relationships in a new way.

For nearly 20 years, Vince Christofora, owner of Woodstock Hardware in Woodstock, New York, had been using a local sign company for all his store’s window signs, sandwich boards and parking signs

“Service providers are an extension of your business, so be sure they are thinking of your customers first.”

—Stace Heston, Spokane Ace Hardware

but outsourcing customer’s custom sign orders to an out-of-state company. When that company closed, he immediately turned to the local sign company for all his customer’s sign needs.

“Having gone to this other signmaker enough times over the years for my store’s sign needs, I thought, ‘We should do this with him, he’s right down the street,’” Christofora says.

He says the partnership with the local signmaker has been beneficial for both parties, and he’s been able to continue to fulfill his customers’ needs for custom signage.

“When we moved to the local company, we were able to provide our customers with high-quality generic signs and still offer the customized services,” he says. “The signmaker received a boost in business with all the additional customers who use him now through Woodstock Hardware.”

Christofora says many of his customers are people who own second homes in the area and want custom signs that display house numbers, house names and instructions like “private driveway” or “no trespassing.” These busy customers appreciate the convenience of one-stop shopping and being able to customize signs for their homes.

“Our customers think it’s a great partnership because they don’t have to find a sign person on their own,” he says. “They give us their orders and know in a week or so they can come pick up their signs.”

Looking to Local Interests

One of the cardinal rules of marketing—knowing your audience— is another part of doing your homework. Managers at Great Lakes Ace Hardware, which has 57 stores in four states, took note of its customers’ outdoor interests and brought a highly successful local service to its stores.

Great Lakes Ace Hardware partners with the Michigan Department of Natural Resources to provide licensing services for hunting, fishing and all-terrain vehicles to customers in Michigan. The idea started five years ago at just a handful of the stores and quickly expanded to all of the Michigan locations.

Becky Killarney, director of marketing for Great Lakes Ace Hardware, says the company allows each store manager to choose what fits best for their market, and the managers at those first few stores did just that, adding licensing services to their stores.

“We saw the success of the licensing program with that first group of stores and thought it had potential to work chainwide,” Killarney says. “Michigan is a big outdoor sports state and we saw the opportunity to capitalize on the interests of our customers.”

Along with expanding the licensing service to all of its Michigan stores, Great Lakes Ace Hardware has used the service to boost sales. The company added fishing and hunting departments in several stores so customers can buy the hunting, fishing and outdoor gear they need when they purchase their licenses.

“Our everyday product line also has items that outdoor sports customers need like hand warmers, tarps and coolers and drinkware,” she says. “Customers are coming in for the licenses and buying other items. It’s a great sales boost.”

Outside-the-Box Offerings

3 MORE IDEAS FOR CREATIVE AND CONVENIENT SERVICES

01 Vending Machines and Kiosks.

Going outside the vending machine box, Ripon Ace Hardware in Ripon, Wisconsin, offers its customers the INKBOX vending machine so customers don’t have to make an extra stop for new printer ink. The self-service machines sell printer ink cartridges from all the major brands including HP, Canon, Epson and Brother.

02 Shipping Services.

Woodstock Hardware partners with Package Express Center Inc., a nationwide network of independent retailers that offers shipping services through UPS. The store accepts UPS returns and can mail packages via UPS for customers.

03 Clock Sales & Repairs.

Wolff Kubly Ace Hardware in Middleton, Wisconsin, operates the Wolff Kubly Time Center out of its hardware store. The time center repairs watches and clocks and customers can also purchase watches, wall and mantel clocks, pocket watches and watch bands.

Best Practices for Promoting Local Providers

Because most services don’t have an actual product to display, it can be challenging to make sure your customers know what special services your store offers. Check out these best practices for getting the word out.

Use digital and printed ads. Utilize your wholesaler’s marketing tools, including email campaigns and product circulars and include information about the service in your own advertising.

Feature them online. Highlight special services on your company’s website with a page dedicated to that service. Include all the details about how to utilize the service and provide information on the local company.

Share on social media. An easy and cost-effective choice, social media posts spread the word about your services. Tag the service provider’s profiles in your posts—and ask them to tag you to double your reach.

Getting the Message Out

Partnering with local service providers is also an excellent opportunity for cross-promotions. When you advertise the local service provider and that service provider returns the favor, you both extend your promotional reach.

Heston uses Facebook to advertise the sharpening services, and one of the service providers he partners with lists Miller’s Hardware and Spokane Ace as drop-off locations on his own business website.

Christofora doesn’t engage in specific cross-promotions with his local signmaker, but has dedicated a page on the store’s website to advertise the sign services.

You can leverage the services you offer and the partnerships you develop with providers to grow overall sales. Christafora says the signmaker he uses purchases all his paint from the store and refers customers to Woodstock Hardware if a customer needs additional paint or other items for their signs.

Services can consistently bring customers in the door. For Heston, using the services to attract more customers to the stores has resulted in more sales.

“Our sharpener has such a strong reputation for quality work that people seek him out and know that Miller’s is where they go for his services, which has helped increase customer transactions and overall customer flow,”

Heston says. “We see more people visiting both of the stores because we offer the sharpening services.”

Selecting Your Hero Vendor

If you’re exploring a new category, you’ll need a vendor that fits your needs. For tips on selecting the right specialty supplier, go to hardwareretailing.com/vendor-hero

Unsung Category Heroes

Winning Strategies for 3 Niches

BY JESSE CARLETON

In most any home improvement store, core categories do the heavy work. They pull in a steady stream of customers and prompt project sales that fill up the shopping cart. But many retailers have found success outside standard hardware fare, too. Handled correctly, these categories can pull their weight in attracting additional customers and generating impulse purchases.

Hardware Retailing spoke with two retailers about how they sell a few of their bestperforming niche categories. If you’re looking to create your next hero category or improve what you already have, use their tips to guide your own steps forward. Some of these strategies apply regardless of the size of your operation. Some of their advice even transcends a particular category; apply it to the unique hero at your business.

IMPULSE IN ACTION

The checkout queue at the General Store gives toy displays exposure to the highest number of shoppers, especially the younger ones.

Welcome to Toy Town

At the General Store in Spokane, Washington, hardware might be the main course, but there are plenty of other options for shoppers. Included on the 40,000-square-foot salesfloor is a full clothing department, fishing and sporting goods, auto parts, and most recently, toys. Mark McKee, general manager, says they’ve always had a small selection of toys, but they expanded the department significantly last year after a local toy store closed. Now, toys cover 3,000 square feet of the store’s second floor.

“Christmas is when you’ll be making the money, but summer toys can boost your sales too.”

—Mark McKee, General Store

Toys have been a category hero because they’ve helped the General Store become a destination for families and have boosted impulse sales. McKee displays toys near the checkout counter and in prominent areas at the front of the store. Impulse merchandisers may prompt some customers to make the trek upstairs to the full toy department, or at the very least, create powerful incentives to put one more item in the shopping cart and raise McKee’s average transaction size.

How can you be successful selling toys when general merchandise stores like Target and online retailers seem to have cornered the market?

“We are the largest local toy store in the Inland Northwest, and I think people want to buy local,” McKee says. “We have the mainstream vendors with the popular toys, but we also carry a lot of unique toys customers won’t find elsewhere.”

For example, the store has a large selection of puzzles and playing cards, along with toys from local vendors that Amazon doesn’t carry.

Even if you only have limited space for toys, you can still create a draw with this category. Being successful hinges on being selective with your inventory and creating a seasonal selection.

“Pick the 10 to 30 items your vendor tells you are the top sellers. Keep your selection narrow and be seasonal,” says McKee. “Christmas is when you’ll be making the money, but summer toys can boost your sales too.”

Toys

What’s hot and what’s not can frequently change in the toy department. McKee suggests relying on your vendors’ recommendations to keep your selection up to date.

You should also find someone on staff who loves toys and is passionate about selling them. That employee can help you find new products, keep a relevant assortment and keep customers excited about buying them.

Even being the largest toy dealer in his area, McKee still finds that driving traffic is a challenge. He works with an advertising company to build awareness around the category. He places a lot of pictures of the toy department on the store’s social media platforms and has boosted his SEO (search engine optimization) so he’s near the top of the list when local shoppers search for toys online.

More Best Practices

Dig into the archives with this article on three retailers selling successful niches. Go to hardwareretailing.com/unique-categories

CONVENIENT SELECTION

Both consumers and local small businesses can save themselves a trip out of town with Red Oak Hardware’s office supply category.

Outfitting the Office

Even if hardware isn’t on your shopping list, Red Oak Hardware may be your destination.

Owner Mark Jackson has created a 20,000-square-foot emporium anchored with a full home improvement store, supplemented with gifts and greeting cards, large appliances, local spirit wear, automotive, RV maintenance, sporting goods, a pro tennis shop and more.

For the past 20 years, an office supply store has been one of Jackson’s category heroes, especially as he’s filled it out with add-on services. Recently, he partnered with a shipping vendor that allowed him to become a pickup and delivery point for UPS packages. Customers can ship packages from the store or have them delivered there for pickup at no extra charge. In addition to using the shipping service, customers can make copies, send faxes and purchase any shipping supplies they need.

“Office supplies have always been a stable category for us, but last year, sales in that area went up significantly as a lot of folks didn’t want to go into the city to shop. They felt safer staying in their own community and using our curbside pickup and free delivery options,” he says. “Because we offer the shipping service, we’ve had a lot of people coming in the store who might not normally come in.”

Office Supplies

3 Solutions for Selling

Seek Advertising Assistance

Jackson recommends getting help to maintain a consistent and effective advertising program.

“We get help from our loyalty program vendor and our wholesaler in posting promotions on social media. They’re even helping us manage our website,” he says.

Don’t assume customers know about every category you carry. Use frequent advertising to remind them what you offer.

Monitor Stock Closely

If you want customers to take you seriously in this category, key items must be in stock.

“There are not many special orders in office supplies,” he says. “If I tell a customer I don’t have, for example, a ream of white paper or a printer cartridge, they’ll think I’m crazy. You really have to stay on top of your in-stock positions to make this category work.”

Update Assortments Often

Printer cartridges drive repeat customers but require frequent assortment updates.

“Watch to see when the new printers are coming out and don’t get stuck with a bunch of old cartridges,” he says. “If older cartridges aren’t selling, clear them out quickly to make room for new SKUs.”

Wade Into Sporting Goods

To learn about a fourth category hero, read how Mark McKee sells sporting goods impulse items at the General Store at hardwareretailing.com/general-store

ADD THE ACCESSORIES

Amp Up Your Electronics

It’s not unusual for a home improvement business to stock a few electronics accessories, such as plugs and cables, as part of its electrical category. Jackson takes it a step further by offering TVs and stereos, along with all the necessary accessories for hookup. What makes this category a hero is his free delivery and installation. The service is particularly important with the newer ultra highdefinition TVs, which can be complicated to set up for some customers.

“If you’re selling electronics, it needs to be obvious. Put them close the entrance or main aisle.”

—Mark Jackson, Red Oak Hardware

“Our installers can properly set up the TV, including connecting to the cable signal and programming it so that by the time they’re done, the customer is ready to hit play,” he says. “This past year, we’ve done really well with TV sales.”

Competing with big-ticket, sometimes price-sensitive items like TVs requires Jackson to be savvy when he buys. He focuses on a broader selection and not going too deep into any SKU, usually three to four of his most popular TVs. He says his initial investment of about $4,000 into the entire electronics department was enough to let him see if it would be viable.

He also expects customers will price shop, so he highlights the add-on value he brings to the category, including the fact that the nearest box electronics retailer is an hour away and that competitors don’t offer free delivery and installation. If customers still insist on waging a price war, he’s empowered employees to try and keep the customer.

“If a customer is concerned about price, employees are allowed to work with them, and often we’ll match the competitor’s price,” he says.

Electronics

Another unlikely but important player in the Red Oak Hardware electronics department are home telephones. Most electronics retailers have stopped selling landline phones. As that has happened, Jackson has seen an increase in customers who come in specifically for that item. Carrying a few hard-to-find items can boost your reputation in any category, and for what you don’t carry, make sure you are promoting special-order services.

Keeping your electronic accessories assortments updated can be like trying to hit a moving target, Jackson says. When a new phone or TV requires a new cable or cord, you need to have it in stock.

“Make sure you understand all of the cords and connectors you need for all of the TVs and equipment you sell,” he says. “You have to have all of those accessories in stock and know which ones to recommend.”

Most customers won’t expect to buy their next TV at a home improvement store, so strategically plan your merchandising so customers can’t miss them. Utilize endcaps and power aisle displays. Borrow a trick from the big-box retailers and turn on a TV, as the moving picture alone will naturally catch shoppers’ attention.

“If you’re selling electronics, it needs to be obvious,” Jackson says. “Put them close to the entrance or main aisle.”

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Headwinds for Housing

U.S. HOUSING TRENDS SHAPING THE CONSTRUCTION INDUSTRY

UNDERSTANDING THE MAJOR INFLUENCES on residential construction in the U.S. can help your business anticipate pro and DIY needs. As housing starts across the country remain strong, take a look at new research compiled from the National Association of Home Builders (NAHB) to see where home construction is headed in the coming months. For more information on any of the trends below, visit nahb.org.

Lumber prices have skyrocketed 180%. Since last April, lumber costs have added an additional $24,386 to the average new single-family home. The price is affecting existing homes, too, adding roughly $9,000 to market values of multifamily homes. NAHB estimates the price of framing lumber hit $975 per thousand board feet compared to $350 in April 2020.

An affordability crisis is stalling potential sales. More than 75 million U.S. households are currently unable to afford a new median priced home at $346,757. Builders cite several factors contributing to unaffordability, including shortages and delays in getting building materials, higher product costs and a continuing skilled labor shortage.

Builder confidence remains strong. Strong buyer demand offset supply chain obstacles and rising materials prices to help raise overall builder confidence levels. The figure stood at 84 in February, gaining one basis point from January, as determined by the NAHB/Wells Fargo Housing Market Index. NAHB chief economist Robert Dietz says demand remains strong due to low mortgage rates and a shift to lower-cost markets.

ANALYSIS

Tools for Your Business

Learn how these metrics guide your business at hardwareretailing.com/industry-trends

Monitoring the Market

ANTICIPATE EMERGING OPPORTUNITIES IN THE CHANNEL

MONTHLY RETAIL SALES

Building material and garden centers; in millions

Sources: The Conference Board; U.S. Department of Commerce, NAICS 444; National Association of Realtors; U.S. Census Bureau Data is not seasonally adjusted, meaning these graphs represent real-time shifts in the market.

NEWS Subscribe for More

Visit YourNHPA.org/subscribe to get industry news delivered to your inbox every week.

Canadian Headlines

TO DATE WITH CANADIAN BUSINESS AND

Home Hardware Acquires Patric Morin Inc.

Home Hardware Stores Ltd. and Groupe Turcotte have acquired Quebec-based home improvement retailer Patric Morin Inc. Group Turcotte and Home Hardware will purchase 21 stores and a distribution centre in Quebec. Patric Morin will continue to operate under its existing banner.

CFIB Urges Small Business Relief in Ontario

Groupe BMR Appoints New CEO

In 2019, BMR reached a deal to acquire a stake in Lefebvre & Benoît and has remained the company’s main shareholder. Lefebvre & Benoît was established almost 60 years ago and is a major supplier of building materials in and around Quebec, employing more than 600 people. Both BMR and Sollio Cooperative are members of the Independent Lumber Dealers Cooperative buying group. STAY

Alexandre Lefebvre, president of Lefebvre & Benoît, has been named Groupe BMR’s new CEO, replacing Pascal Houle. In addition to serving as CEO, Lefebvre will also be executive vice president of BMR’s parent company Sollio Cooperative Group.

The Canadian Federation of Independent Business (CFIB) is asking for the Ontario provincial government to ease public health measures in the province’s most restricted zones. As of early March, small businesses in Toronto and Peel had been closed for 100 consecutive days.

AD INDEX

Benjamin Moore .....................................................................................................................BC benjaminmoore.com; 855-724-6802

Bring It On Cleaner...............................................................................................................47 bringitoncleaner.com; 800-867-2643

Desperate Enterprises ........................................................................................................22 desperate.com; 800-732-4859

Do it Best Corp. ......................................................................................................................12 doitbestonline.com; 888-364-8237

Dripless Inc. ...............................................................................................................................16 dripless.com; 707-568-5081

Eco Wood Treatment ........................................................................................................53 ecowoodtreatment.com; 888-738-5516

Fiskars Brands Inc. ...............................................................................................................3 fiskarspro.com; 866-348-5661

Franmar Chemical Inc. .....................................................................................................51 franmar.com; 800-538-5069

Generac Corp. ..........................................................................................................................17 generac.com; 888-436-3722

The Hillman Group................................................................................................................11 hillmangroup.com; 360-600-0760

Howard Products, Inc. .......................................................................................................44 howardproducts.com; 800-266-9545

Lumax ............................................................................................................................................24 lumax.com; 844.660.6876

MARS ..............................................................................................................................................5 comfort-aire.com

Mayhew Tools ...........................................................................................................................45 mayhew.com; 800-872-0037

Mi-T-M Corp. .............................................................................................................................23 mitm.com; 800-553-9053

Midwest Fastener Corp. . ..................................................................................................56-57 constructionscrews.com; 800-444-7313

NHPA Cost of Doing Business Study .......................................................................61 YourNHPA.org/codb

NHPA Foundations of Leadership Program .......................................................19 YourNHPA.org/fol

NHPA Retail Management Certification Program .........................................55 YourNHPA.org/rmcp

OLFA ...............................................................................................................................................9 olfahandtools.com

Orgill Inc. .....................................................................................................................................64-IBC orgill.com; 800-347-2860

Primo Water Corp. ...............................................................................................................46 primowater.com; 844-237-7466

Rescue! Sterling International ......................................................................................IFC-1 rescue.com/booknow; 800-666-6766

S. M. Arnold.................................................................................................................................44 smarnold.com; 314-544-4103

Shurtape Technologies ......................................................................................................7 frogtape.com/prograde; 800-321-1733

Toysmith.......................................................................................................................................26 toysmith.com; 800-356-0474

ULINE..............................................................................................................................................26 uline.com; 800-295-5510

Wingate Sale Solutions......................................................................................................25 wingatesalesinc.com; 888-480-7253

Woodland ....................................................................................................................................52 pinecar.com; 573-346-5555

Compare. Assess. Improve.

When you participate in the Cost of Doing Business Study, it can help you to identify future financial opportunities and set goals for your business. It’s free, easy and confidential.

Cost of Doing Business Study

“With the Cost o f D o i ng B us i ness S tu d y , you can see how well you’re doing compared to the industry. Tracking your metrics without the Cost of Doing Business Study is like having a map without a compass, no true sense of direction.”

Brett Thorne | Thorne Lumber

See Page 14

LAST WORD

CATEGORY

Hear From the Expert

Learn more about selling and merchandising cleaning products from cleaning expert Melissa Maker at hardwareretaling.com/cleaning-expert

CLEAN TIME

Capture the Spring Cleaning Audience

SPRING BRINGS FEELINGS OF excitement for warmer weather, longer days and for many of us, cleaner homes. According to the 2020 ACI National Cleaning Survey, 78 percent of households in the U.S. engage in spring cleaning each year, giving retailers an opportunity to capitalize on our need

to clean. That same survey asked respondents to share what rooms are a priority during spring cleaning with closets, kitchens, family rooms and bathrooms coming out on top. Get in the cleaning spirit and learn how you can set up your store to help customers accomplish their spring to-do lists.

DIRTIEST SPACES IN THE HOME

KITCHENS

Spring cleaning in the kitchen requires a variety of products. Stock all-purpose cleaners for customers who want an easy option and specialty products for granite and stainless steel for those looking for a deep clean that won’t harm surfaces. Merchandise seasonal add-ons like hand towels and kitchen decor with cleaning products to give customers ideas for giving their kitchen a fresh look.

CLOSETS

While people were trying to find quiet spaces to work and learn over the last year, some may have even turned closets into home offices. With all that extra time in those spaces, many people realized their closets needed a makeover. Merchandise organization products like storage bins and wall hooks together with clothing items and shoes to show customers how to create closets that are clean and functional.

FAMILY ROOMS

The family room is often a home’s central gathering spot, which means more spills and foot traffic stains on the carpet. If you rent carpet cleaning machines or sell vacuums and other floor cleaners, now is the time to draw attention to them. Put together a display next to the machines that includes any cleaning products that work with the machines, as well as other items for cleaning the family room.

BATHROOMS

Along with deep cleaning, bathrooms need regular maintenance. Spring is the perfect time to air out these spaces, repair caulk and grout and replace old shower curtains. Display maintenance and cleaning products together so customers can get everything in one spot.

CLEANING

FUN FACTS

The average American spends 90 percent of their time indoors.

78 percent of households feel their homes aren’t as clean as they would like on any given day.

Cleaning for 30 minutes can burn up to 100 calories.

Sources: 2020 ACI National Cleaning Survey, Wakefield Research; Report to Congress on Indoor Air Quality, U.S. Environmental Protection Agency; Exercise Calculator, WebMD

A CUSTOMIZED APPROACH

“Orgill recognizes that no two businesses are alike. They help us tailor our programs and product selection to best serve the needs of our customers.”

Pete Meichtry Ganahl Lumber California