Hardware Connection January/February 2013

STRENGTHENING THE TWO-STEP CHANNEL

Special Events That Drive Sales

ALSO INSIDE: Putting Hardware Products to the Test Amazing But True Hardware Stories

Paint & Decorating Product Trends

WD-40 Specialist products are proven more e ective than the leading competitors in ASTM and other industry accepted test methods.

WD-40 COMPANY PROUDLY INTRODUCES WD-40® SPECIALIST®

A new line of best-in-class specialty products formulated to help you get specific tasks done with ease. And of course, when you have jobs that aren’t so specifi c, you can always trust the product that’s been ge ing stu done since 1953: the one and only WD-40 Multi-Use Product.

The big boxes are spending millions to lure away your customers. And, empowered by the Internet, smartphones, and a wider range of shopping choices, your customers are expecting even better service, selection, and price.

Today’s independent retailers must adopt new technologies to…

• Manage inventory more effectively to be price competitive and profitable.

• Empower staff with tools that make them more efficient and knowledgeable.

• Reward customers with an overall shopping experience that will bring them in and keep them coming back

As we have done for nearly four decades, Epicor leads the way for retail excellence. To learn how Epicor can help you build a smarter retail business visit www.epicor.com or call 1.888.463.4700 today. Epicor–Smart Solutions for Retail

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

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

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

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com

Sales: Paula Pasquale paula@thehardwareconnection.com 630-258-5666

Contributing Writer: John Franklin john@thehardwareconnection.com

Contributing Writer: John Fix III

Contributing Writer: Doug Donaldson

By Chris Jensen

What is Your Sales Growth Strategy?

New Year’s resolutions are made to be broken. Every retailer starts the year with the same resolution: find a way to grow sales. The smart ones know you cannot keep trying the same thing and expect different results.

There are basically five ways to grow sales: attract new customers, get existing customers to visit more often, raise transaction size, expand into new areas and raise prices. You might as well scratch that last one, since any customer with a smartphone instantly knows whether you are price competitive on every item in your store.

Our main feature in this issue covers the topic of special events, which can go a long way toward attracting new customers and getting existing customers to visit more often. If you want to raise transaction size, then focus on add-on sales with suggestive selling, pay more attention to endcaps, stock up on bigticket promotional items, surround your checkout with high-margin impulse items like snack foods and be sure to stay in stock with project starters.

The most promising way to grow sales is to expand into new areas. Your options are plentiful if you do your

homework and figure out what fits your market. You can expand into commercial/industrial sales by targeting schools, factories, apartments and local government. You can set up a system for special orders to meet the needs of customers looking for hard-to-find items and replacement parts. You can expand into online selling with the advantage of offering ship-to-store service.

High-performance retailers always have at least two or three successful niches. Think outside the box and determine if your trade area will support a niche in gourmet housewares, pet supplies, office products, custom picture framing, wild bird, patio furniture, highend grills, rental, work clothing, toys, closet systems, giftware, pool supplies, tailgating, sporting goods or appliances. Keep experimenting until you find the right niches and then make sure you spread the word through advertising, marketing and social media.

Finally, ask your employees for suggestions on how to grow sales. You just might be surprised at how many good ideas they come up with. Sell more hardware and have more fun— now there’s a good New Year’s resolution for you. ■

the way i see it

By Tom Chasteen

It’s Time to Make Something Happen in Our Business

Here we are with another year behind us and a new year of challenges ahead. I’ve decided to take an aggressive, proactive approach on several levels this year that I believe will position us to be more productive and profitable for years to come.

The first project is to totally refinish our floors using a two-part epoxy product. Our store is more than 50 years old and the last time we completely refinished the floors was six years ago and I’m remembering now why we waited six years to do it again. As most of you know, it’s a time-consuming project that can completely disrupt your business.

We have been moving merchandise and displays in the afternoons and then applying the epoxy after the store closes, which allows ample time for the coating to cure and the fumes to mostly dissipate before we open the next morning. We are averaging almost one department per day, skipping our busiest days of Saturday and Sunday.

In an attempt to get the pain over with as soon as possible as well as increase the level of difficulty we are also completely remodeling our office area to streamline back-office

work flow. We are also switching over our internet provider, which requires changes in our routers, sonic wall and desktop computers. This project is only one-third finished and the pain is just getting ready to start as we get closer to the end of the month and the need to get out monthly customer statements, do our accounts payable and compile our end-of-month reports and financial statements. I purchased the quart-size bottle of aspirin and it’s already half empty.

Our biggest project will take a little longer to complete and will require some painful personal decisions. Our objective is to be completely debt-free by the end of the year and by the end of 2014 we want to maintain a minimum of 12 months of operating capital in reserves. I have decided to forgo all ownership distributions or dividends for 2013, although I will continue to take my salary.

Throughout this poor economy we have not had to lay off anyone and we don’t see that as a viable solution going forward. We are fortunate to have been in business for 55 years and we own our properties. We pay market-rate rent to our real estate

the way i see it

company that is separate from the hardware business, and we will continue that policy as well. We feel it is imperative to keep financial statements as clean as possible so we can accurately evaluate what our family hardware business is actually doing, and we cannot do that if we manipulate the financial statements.

We typically keep six months of operating capital in reserves, but in light of our local economy we have decided to increase that to 12 months. I’m sure a finance expert would probably think this a foolish move, especially with the current interest levels being paid on 6- and 12-month CDs.

My father used to tell me, “I’ve never seen a conservative businessman go broke, but I’ve seen a lot of risk takers go broke.” When I was younger, long before the current banking meltdown, I would point out that we were missing some real growth opportunities.

Now older and wiser, I have seen a lot of business people (not just hardware store owners) with minimal reserves who leveraged their successful businesses for “growth opportunities” go out of business, losing everything they had worked for. Some of these business people were really sharp and totally understood the risks involved and, in some cases, they just had poor timing or miscalculated the level of risk they had taken on.

Clearly, their financial problems were compounded by lack of sufficient cash flow and reserves. I’m willing to risk some margin on my money to sleep a little better at night. I’ve also realized the older I get the smarter my father was!

The final project we are going to pursue in 2013 and the easiest one of all is to identify all of our “X” items on the store shelf (so no one reorders them by mistake), mark down the price and, hopefully, over the next 12 months reduce them by 25-35 percent.

At the same time we are committed to bringing in 200 new items over the next 12 months by taking advantage of show discounts, opening order discounts and new product promotions that we think we can sell in our business.

For me the most critical piece of this process is the mindset that we are not going to sit around waiting for something to happen. We are going to make something happen in our business! However, we are going to be very methodical and conservative in our approach to making something happen. Will we lose some growth opportunities? Possibly, but I intend to be in business at least for a few more years.

From one retailer to another, let me know how you plan to “paddle your canoe” in 2013. Contact me at tom@thehardwareconnection.com. n

Publisher Tom Chasteen is a third-generation hardware retailer in the Florida Keys.

We had a gal who wanted to return a length of flexible dryer ducting. She couldn’t figure out how to cut it and kept following the wire. By the time she was done with it, it looked like a Slinky.

Ken Thoreson

Solon Springs

Mercantile

HARDWARE STORIES Amazing but TRUE

BSolon Springs, Wis.

eing in a senior citizen development we get a huge number of canes left here. We used to have a man drive a huge motorized cart into our store the size of a Harley, park it at the register totally blocking everyone else, and demand all kinds of special treatment because he was handicapped. One day the battery on this monster died. We asked if we should call the police to give him a ride home. He stood up and proceeded to push it all the way home about six blocks. Another miraculous healing. Thereafter we nicknamed him “Rise up and walk.”

Susan Miller

Bob’s Hardware

Whiting, N.J.

My son sold a guy a 5000 BTU air conditioner. The guy then tells him there are no available outlets in the room and he wanted a 16/3 orange extension cord for it. My son is big on add-on sales, but he missed this one. I said I would have handed him a gas can and told him it would be easier and faster.

Jim Ertzman

South Hills True Value Home Center Pittsburgh, Pa.

Alady just left with some foam insulation tubes. She was going to insulate the PVC vent pipe coming out of her roof. What a way to close out 2012.

Dusty Lee

Stormer’s True Value Knoxville, Tenn.

“I listed used fixtures and equipment I didn’t need on www.wingateclassified.com and found a buyer right away! “

“I found the perfect fixtures for my store and saved a lot of time and money using www.wingateclassified.com”

You may have store fixtures, equipment and furniture that you need to get rid of. You’re tired of storing stuff and it all has to go! List it on wingateclassified.com and turn your unused items into spendable cash.

In addition to fixtures and equipment, you can also list your entire store for sale. If you’re retiring or just ready to close, Wingate Nationwide Classified is the best way to find a buyer for your store.

As a Store Owner As a Buyer

You need to expand while keeping costs low. You may not have the budget for brand new items and you can’t find quality used equipment on other classified websites.

Wingate Nationwide Classified is your first stop every time you need equipment or are in the market for a whole store. We bring buyers and sellers together who are looking to make a deal. Growing your business has never been this easy.

The Hardware Connection readers are eligible for an immediate FREE 60 day Classified Ad if posted prior to February 15, 2013! Just use their name and Access Code - THC2012.

Howʼs

Business?

SOUTHWEST

Sales in 2012 and for the holiday season? It was great, the best since the store opened in 2009. We had an excellent year. We’re a new business in rural, northern New Mexico and our business has been growing 20 to 30 percent every year. This past year, we were up about 30 percent. I attribute that success to being embraced by the community and how we expanded our inventory. We honed the inventory to really meet the needs of the community. We added building supplies such as insulation, roofing material and galvanized tin. We also brought in a broader range of plumbing. The holiday season was about the same as last year. We brought in a few gift items, such as John Deere toys, but the holidays didn’t give us a boost.

2013 initiatives? This is going to be a big year. We are currently in a rented

space, but we’re confident enough to buy and build our own 4,000-square-foot building. We are increasing our retail space by 25 percent and plan to move by this summer. We’re looking to further expand plumbing supplies and display and market products better. We will also expand hand and power tools, and I’d like to get into workwear. Our lawn and garden will expand tremendously, too. Plants and vegetables are huge for us. We have an employee who is a master gardener and he will help guide that growth.

John Bloch

Mora Valley Ranch Supply • Mora, N.M.

Sales in 2012 and for the holiday season? It’s a little hard to say because we’ve only been open for a year, so we have nothing to compare it to. We beat our projections by 8 percent, but we were very conservative.

We also had a weird year here, with forest fires within eyesight of the city all June. Then, it was inordinately hot. Outdoor living products didn’t sell well. We did well the week of Thanksgiving, but we could tell that we didn’t put enough gift items on the floor.

2013 initiatives? We started teaching classes to bring in customers. We learned a lot from last year. For example, during the holiday season we will bring in live trees, garland and wreaths. We’re also looking to offer more raisedbed gardening supplies.

What have you learned about consumer behavior? The funniest thing is trying to figure out what influences people’s behavior to shop. There

are temperature thresholds, where if it’s above a certain temperature, people don’t come in and if it’s below a certain temperature, they won’t come in either. There are other influences, too. We keep a sharp eye on when beer festivals and major cycling events are in town, because that draws customers away.

Matt

Chavez Joseph’s Do it Best Hardware • Fort Collins, Colo.

Howʼs Business?

NORTHEAST

Sales

in 2012 and for the holiday season? Very good, we were up about 20 to 25 percent over last year. We’ve seen a general economic recovery. People seem to be willing to remodel and fear seems to be out of the general mood. Because we’re a retail lumberyard, the holiday was a flat time for us.

2013 initiatives? We’re looking at a lot of in-house system improvements. We’re going to reset our back warehouse and redo how things are stored. We have to be efficient, because our lumberyard is only threequarters of an acre.

David Mosher Mosher Lumber Clarence Center, N.Y.

Sales in 2012 and for the holiday season?

Excellent. We were up about 23 percent. We recently changed all upper-level management and brought in new talent. We also revamped the store with a new deli cooler and brought in new clothing product lines. For the holidays, we were up about 15

percent over last year. Our clothing and toy section did well.

2013 initiatives? We are redoing the light bulb selection and reworking the paint department. We will also expand organic seed and farming materials.

What is your most successful special event? This past July, we conducted our first annual lantern launch on Caspian Lake. We sold more than 400 Chinese lanterns. We coordinated it through our store’s web and Facebook pages. We announced it about three months in advance and continued to promote it.

Robert

Willey Hurst Willey’s Store Greensboro, Vt.

Store

Howʼs Business?

MIDWEST

Sales

in 2012 and for the holiday season?

We were down by about 2 percent on the year. It’s definitely because of the economy. Much of our business is based on remodeling contractors’ work. It seems like with a lack of ability to get home equity loans, people aren’t doing projects such as room additions. We really don’t have holiday sales, but our December was better by about 37 percent, and I attribute that to fairly decent weather.

Jeff Palay Commonwealth Lumber • Willoughby, Ohio

Sales in 2012 and for the holiday season? We just opened this store in February, and we built this one to slow the traffic at our other store seven miles away in Adair. We have nothing to compare sales to, but between both stores we have increased market share. We did so well in November and early December that we took the holidays off. Ammunition sold like crazy.

2013 initiatives? We plan on expanding the product line. We’re still finding out what the community wants and needs. Last year, we added boots and would like to add coveralls and outwear this year. Electrical seems a little short, so we’ll add more fittings. Plumbing can also be boosted.

Brian Wendt Anita Supply Center • Anita, Iowa

MID-ATLANTIC

Sales

in 2012 and for the holiday season? Holding steady. We recently had new ownership and have undergone some changes and updating. We’re in the process of regaining what we have lost over the past few years and branching out a little bit. Over the holidays, we normally slow down some and don’t carry a lot of gift items. We did do a little better than the previous year during the holidays, though.

2013 initiatives? We are trying to increase sales with new offerings, such as custom millwork and concrete from Kentucky Log Home. No one else in the area is going to be carrying that, and it looks really nice. We’re also going to try to sell some residential fencing and outbuildings. We want to find some niches because we are within 10 minutes of three different big-box stores. We have redone the inside of the store with new shelving, paint, lighting and a new computer system.

Scott Adams

Duncan Box and Lumber • Huntington, W.Va.

Howʼs Business?

SOUTH

Sales in 2012 and for the holiday season? Sales have been very strong and despite the economy, we have never stopped growing, expanding, hiring and giving overtime. We are up 18 percent over last year. A big part of that increase is our store culture and staff expertise. I hear time and time again a contractor or resident will bypass four or five big-box stores for our personalized attention. We’re also constantly checking pricing and competition. Holiday season usually slows down for us at about December 15 and kicks back up in the second week in January. We are already seeing sales numbers back up.

What makes your store unique?

One of the things that makes this place unique is that if a customer asks for something we don’t stock, we’ll get it. A guy asked for a football for his son, so we put up a football and other sport ball display and ended up selling out everything.

Jesus Guzman

Shell Lumber and Hardware • Miami, Fla.

WEST

Sales

in 2012 and for the holiday season? We’re up about 7 percent. We went through a remodel, freshening up the store and that made an impact in the community. We’re on an island, so we’re more of a destination. During the holidays we sold more lights, trees and gift wrap. And overall sales seemed up during the season.

2013 initiatives? We are focusing more on a green theme, stocking more environmentally friendly products such as LED and fluorescent lights. We also plan to expand the rental department and capture that market better.

Advertising strategy? We really haven’t had any special events, more sales and business as usual. We do use newspaper ads and circulars along with some radio and cable television. The cable TV ads help us zone into the region.

Dave Sem Sebo’s Do it Best Hardware • Anacortes, Wash.

Spout extension.

More than 6 inches of extra flexibility for those hard-to-reach places.

new 3-IN-ONE ® Telescoping Marksman Spout. Goes where other oilS don’t.

is the classic drip oil that’s been essential for workers of all kinds since 1894. And now our new bottle gives your customers even more reasons to reach for the 3-IN-ONE telescoping Marksman Spout.

THE Marksman Spout. Delivers oil precisely where it’s needed—and nowhere else. A simple twist of the spout allows for easy ON and OFF closure control.

PRODUCTS REVIEW

From Tom’s Shop HARDWARE

By Tom Chasteen

PRODUCT #1: SPECIALIST™ LINE | WD-40 COMPANY

WD-40, which is one of the most recognizable brands that any of us stock in our stores, continues to expand its Specialist™ line of products. The line currently consists of a Contact Cleaner, Dry Lube, Silicone Lubricant, White Lithium Grease, Rust Release Penetrant Spray, Corrosion Inhibitor, Rust Remover Soak and Degreaser Foaming Spray.

All of these products have the same color label and great graphics, which really makes them easy to merchandise and they have the WD-40 logo prominently displayed on the front of the label to take advantage of the brand awareness.

When a customer is deciding which product is right for their project, they definitely see one of the most recognized and trusted brands in our industry.

WD-40 does not plan to stop with these eight products—they are developing several more that complement the existing product line. If you haven’t seen the Specialist line up close then stop by the WD-40 booth at one of the wholesaler shows and you will see why I think the Specialist line of products will be a slam dunk in our stores.

For more information on the product line, click here: www.WD40specialist.com.

PRODUCT #2: SLAB® | SASHCO SEALANTS

Sashco Sealants is a family-owned business that has brought us great caulking products such as Lexel® and Big Stretch®. Now they have come out with Slab®, a concrete crack repair that doesn’t just fill the crack but also has a textured finish that allows it to actually blend into the concrete finish.

There are several products on the market that claim to be a concrete repair but none of them we have ever tried work as well or blend in as well as Slab. In addition, when you use Slab it stays put. It doesn’t break loose and start to come out and best of all it’s a soap and water clean-up product and will accept foot and vehicle traffic after 24 hours.

There is not one concrete driveway or brick home that doesn’t have crack repair issues and this product really does the job once and it’s finished. If you’ve met the owner of Sashco, Les Birch, or currently stock Lexel or Big Stretch caulk, then you know Les will not release a product until it is tried and tested. Slab is no exception—it’s a first-rate product.

To understand why I like this product so much click here.

PRODUCT #3: CODE RED™ LINE | APEX TOOL GROUP

Apex Tool Group has some of the most trusted brands in our industry and now they have released the Code Red™ series of demolition tools under the Crescent® brand. The two products we tested were the Indexing Flat Pry Bar (#DB18X) and the Adjustable Pry Bar (DB16).

Just when you thought you knew all about crow bars, Crescent has totally redefined the idea.

The Indexing Flat Pry Bar is a great idea—the head of the pry bar

can actually pivot (indexing) so it will fit just about any application I can think of with more leverage than other pry bars on the market. The head is much wider than traditional crow bars, which allows the user to gain a much larger purchase area. It also has a nail puller feature that is much more effective, because the user can adjust the head to the maximum leverage point and also get into tight spaces. The Code Red Indexing Flat Pry

WHERE will you Beadle™ ? Beadle

Wrap • Lock • Release • Reuse

GET PDF SPEC SHEET WATCH VIDEO

Innovative Beadle Wraps are easier than a twist tie, more versatile than a cable tie, and strong enough to hold up to 140lbs. Wrap, lock, hang, and store everything - the uses are endless!

FREE SAMPLE at the following Spring Events: Ace Booth #2157

True Value Booth #4331

Orgill Booth #5818 Do It Best

Bar comes in two different sizes: 18" and 30".

The Adjustable Pry Bar doesn’t have an indexing head, but it has an adjustable jaw that allows the user to adjust the jaw to the width of the truss or floor joist that they are trying to straighten much like you would a Crescent Wrench to a bolt head. The 16" Adjustable Pry Bar jaw

opens to 3.5" so it will fit most applications. This tool can also be used as a pry bar and also comes in 24" size.

You only need to pick up one of these tools to know they are serious tools built to take a beating and take on the toughest demolition and construction projects. Stop by the Apex booth and check it out. To see more go to this video link or this video link.

By Chris Jensen

Special Events That Drive Sales

Emigh Ace Hardware in Sacramento, Calif., holds sale events every month such as an anniversary sale in June. The fourth-generation family business will mark 105 years of service to the community this year.

If you want to keep customers coming back, then you’ve got to make your store the headquarters for fun in your community by holding regular special events. Special events drive sales by increasing customer counts and exposing new customers to what your store has to offer.

HIGH-PERFORMANCE RETAILERS TYPICALLY host a special event or sale at least once a month, because they know it makes more sense to be proactive than sit around and hope customers decide to visit. It might be a bag sale, bucket sale, tent sale, anniversary sale, customer appreciation day, kid’s workshop, d-i-y clinic, contractor luncheon or Ladies Night.

SPECIAL EVENTS

Carr True Value Hardware and Rental in Pittsfield, Mass., puts on a free carnival for kids that showcases everything that can be rented from the retailer such as a bounce house, inflatable obstacle course and popcorn machine.

McGuckin Hardware in Boulder, Colo., has a harpist come in and entertain customers during the holiday season.

Keim Lumber in Charm, Ohio, has conducted a very successful Ladies Night event for the past four years. About 800 female customers showed up this past September and 900 the year before, according to Marion Miller, store manager.

“We use the internet, Facebook and in-store signage two months in advance to promote the event, then a week or two before we run a newspaper ad,” he says. “We encourage customers to

Hartville Hardware in Hartville, Ohio, attracts an estimated 10,000 people from five states for its semiannual, two-day tool sale.

register in advance, because we serve a sit-down meal and would like to know a rough head count. However, they can still register at the event,” Miller adds.

The Do it Best retailer gives each attendee a little bag with information on products, special promotions and local businesses that offered door prizes. The grand prize drawing features a $100 store gift card and a free night at a local bed and breakfast, with the top prize being a $300 gift card to a local

SPECIAL EVENTS

Carolers add to the festive holiday atmosphere during Keim Lumber’s annual inventory sale in December.

gift shop. It makes sense to get other local businesses involved, since they will then help promote the event.

“The women in attendance like the interaction with the other women as well as the ability to do hands-on tasks like custom pen turning on a lathe or learning different painting techniques,” Miller says.

Most of the d-i-y clinics are done by vendors, but some are conducted by employees. Every employee is assigned a task such as interacting with customers, working the registration desk or clearing tables.

So how does Keim Lumber gauge whether Ladies Night is a success? “It’s a success if we have good attendance and if people are enjoying themselves— it’s not just about making sales,” Miller says. “We’re not sure of exact sales as a result of our Ladies Night, but we know it builds future sales.”

Their newest twist was to add a scavenger hunt, which proved to be a lot of fun for the ladies. “It got them into areas of the store they don’t normally see. That was the goal, so it was successful,” Miller says. They all had a sheet with riddles—it gave them an answer to a question with a hint to the next area to visit. For example, they had to go to the landscape lighting room and write down the number of a particular light.

Miller got the idea to have a living statue perform for customers from a home and garden show. “We hired him for the Ladies Night event and had him hand out fliers and move around the store. He also helped distract people who were standing in long lines. Customers thought it was neat and it brought a festive atmosphere to the event,” he says.

The ladies get their night in September, so Keim Lumber caters to the guys in January. They alternate between a contractor’s night and a woodworker’s night every January, both by invitation.

They close the store early and offer a sit-down meal and product specials. This year’s contractor’s night event, which attracted 900 attendees, featured seminars on strategic planning and steward leadership.

“We’ve been doing those two events for about 15 years and they are designed to show appreciation, education and fellowship,” Miller says.

WHAT MAKES IT SPECIAL?

Not only are special events fun for customers, they are fun for employees as well. It’s get them out of their normal routine with the opportunity to interact with customers who are enjoying themselves. Get them involved at all stages from pre-event planning and promotion to getting the store decorated, securing food and door prizes, greeting customers and putting on how-to clinics.

K&B True Value in Annapolis, Md., gives away a $250 shopping spree during its Ladies Night, while conducting nearly a dozen how-to clinics and offering free food, gift bags and a 15 percent discount on purchases. After all, the idea is to drive sales that night and in the future.

Solon Springs Mercantile in Solon Springs, Wis., hosts a wine tasting and beer tasting event.

Simpson Hardware & Sports in Sumter, S.C., conducts a Men’s Night Out event with live music in the aisles.

Runnings held a Ladies Night bag sale at 17 of its stores in the upper Midwest with some of the proceeds used to raise money for breast cancer research. Runnings gave away three $500 shopping sprees, a vacation trip for two and Kindle Fires to lucky customers. The best special events are ones that have people talking about it for weeks or months afterwards. When Malone Do it Best Lumber in Greenville, Ky., puts on a Ladies Night event, it goes all out. Employees get dressed up with black pants and white shirts, and customers are treated to free valet parking, massages and manicures. After all, it’s not truly a special event unless your customers leave with a feeling that they have been treated extra special. And that’s a feeling that keeps them coming back again and again.

LADIES NIGHT PROMOTIONS AROUND THE INDUSTRY

Assistant Manager Richard David shows how to replace a faucet at K&B True Value Hardware in Annapolis, Md., which attracted about 230 female customers to its Ladies Night.

Keim Lumber serves a sitdown meal with dessert.

Malone Do it Best Lumber in Greenville, Ky., provides free manicures and massages for Ladies Night.

McLendon Hardware in Renton, Wash., uses in-store signage to promote its Ladies Night.

Vendor reps were on hand to demonstrate products at Old Takoma Ace in Takoma Park, Md.

McLendon Hardware hands out goodie bags to each lady who attends.

SPECIAL EVENTS

A cooking demonstration draws a crowd at

Customers got to try their hand at custom pen turning at Keim Lumber’s Ladies Night.

Everyone has a fun time at Keim Lumber’s Ladies Night.

A scavenger hunt got female shoppers at Keim Lumber’s Ladies Night event to check out new areas of the store.

Keim Lumber uses a living statue to entertain customers at events.

Keim Lumber attracts as many as 900 ladies to its annual Ladies Night event.

WHAT HAVE BEEN YOUR MOST SUCCESSFUL SPECIAL EVENTS?

“We have contractor breakfasts twice a year. About 30 to 40 contractors show up. We have it at a local restaurant and send out invitations and postcard reminders. We buy the contractors breakfast and they have to sit through a couple of presentations. We show what new products manufacturers are offering and change the topics from year to year.”

David Mosher

Mosher Lumber • Clarence Center, N.Y.

“Three times a year we have a tent sale to get rid of slow-moving items. We close the parking lot, have a band play and drop prices. We hold these tent sales on Sundays, and they nearly double our normal foot traffic. We get the word out about the tent sales through Twitter. Everybody loves it.”

Jesus Guzman

Shell Lumber and Hardware • Miami, Fla.

“We had a grand opening on March 1 last year. We gave away free hamburgers. It was huge. In a town of 1,200, we had 400 people show up. Some couldn’t find a place to park. Free food is always good, and folks in the area were anxious for the store to open.”

Brian Wendt

Anita Supply Center • Anita, Iowa

“We do an annual customer appreciation day, usually the first weekend in May. We will have lots of live plants with a lot of color in the yard. We’ll grill hot dogs and hamburgers and bring in hay bales for people to sit on like a big picnic. Last year, we had about 200 people.”

John Bloch

Mora Valley Ranch Supply • Mora, N.M.

“So far we’ve had two classes for customers. We set up six stations and each presentation lasts about 10 minutes. We’ve done projects such as faucet and toilet repair and rewiring an outlet. We also have a members only day where we invite customers who are in our database to shop. We are also looking to have shopping center-wide events in the spring and fall with other retailers.” ■

Matt Chavez

Joseph’s Do it Best Hardware • Fort Collins, Colo.

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

How to Get Pounds in a 10

Pound Sack5

How would you like a way to add 10, 20, 30 or more linear feet of empty gondola to your store for new product without eliminating existing product, moving a wall or adding on to the building? If you are one of the many retailers with dreams of a larger store, then you have probably already pushed the retail store space right to the very walls that hold up your roof.

ThIs busIness Is all abouT sales per square foot, so if you can increase your salesfloor you should hopefully increase your sales. What happens if you cannot make your store bigger? The logical response is that you work to increase the inventory density on your current salesfloor.

I remember 30 years ago when the normal height of a gondola in a typical hardware store was only four to five feet.

In hindsight, it was clearly a waste of the sky, yet we all did it. If there is one thing that the big boxes have taught us is that the higher you pile it the more you can sell. Most hardware stores don’t have ceilings that will allow a 14-foot fixture like the big boxes, so if you can’t pile it higher or wider, then how do you get more items stocked in the same space?

I once worked for a retailer who had 60" high fixtures and aisles that were

By John Franklin

six and 11 feet wide. Over the next two years I raised all the fixtures to seven and eight feet and decreased the aisles to four to six feet. To further increase inventory density, we tried book-like panels, waterfall racks and a variety of spinning displays that had multiple sides.

All of these ideas were basically the same—trying to get more product in a smaller space. Using what we could, we doubled the product assortment, greatly increased the total inventory per square foot and over the next five years we doubled the store sales. There is no doubt that providing more choices to our customers leads to additional sales.

We continued to work to increase product density by experimenting with sliding panels. All of the systems then available had many problems that made them unsuitable in most circumstances. One vendor in particular, Hy-ko Products (330-467-7446), came up with a very usable slider unit to address the fact it had a lot of product to display in a small amount of space.

The only problem with the vendor’s slider system was that the units were naturally designed for their products, which were very lightweight carded materials. They were also installed directly on the base deck and had a very large top shelf at a six-foot height. This large, overhanging top shelf blocked a lot of light, and you could not use the

bottom lIne

space above very effectively. It was relatively dark inside the display and on an eight-foot gondola you could only effectively use about six feet of height.

InspIratIon Comes

One day I got the idea of raising the whole sliding display 18-20" off the base deck. This simple move made a huge difference. It allowed a great deal more ambient light to the back wall, and allowed full and easy access to the space underneath the rack and made it possible to effectively use the full seven- to eight-foot height of the actual gondola. Over the next few years I ordered a lot of the vendor’s empty display racks and we

bottom line

set up about 40 individual 4-foot sections in various stores, mostly for power tool accessories and electrical sundries.

At first we used the complete system, top and bottom racks and the sliders. They were somewhat clumsy and dark. Later on we came up with some very good improvements. Rather than using the big upper track assembly, we started attaching just the track itself directly on the bottom of an existing upper gondola shelf and therefore saved a huge amount of space. You can see a set-up at right.

Saw blades and hole saws are a perfect fit for a set of double sliders because they all fit well on short 2" or 4" peg hooks. The photo on page 37 shows a typical set-up of saw blades and accessories. The plan requires a 14" shelf at the top to support the track assembly and a 14" shelf at the bottom to hold the bottom track. With 4" peg hooks on the back wall and 2" peg hooks on both sliders, this unit gives a 100 percent increase in actual pegable space.

This is truly 10 pounds in a 5 pound sack, because you can actually put 24 feet of product into just 12 feet of gondola. Every blade is fully visible on the panels. The top shelf was very useful for overstocks, yet was easily reachable. The 18" base deck here provided ample space below the sliders for additional stock of large specialty blades.

Panels can be organized to hold Sawzall blades, jigsaw blades, hole saws and saw blades. This display was lighted

with GE light sticks every four feet. For safety, all shelves were locked into place with #14 screws and the panels were held in place with the #8 stop screws.

The photo to the left shows that drill bits are another ideal choice for sliding panels. A 2" hook can hold almost every type of carded drill bit and each panel holds a full set of one type of bit. The 4" hooks on the back wall are long enough to hold forstner bits and sets of bits that take up a little more space. Use separate panels for HSS, cobalt, masonry, numbered bits, etc.

Even taps and dies can fill a panel or two. Screwdriver tips and bits are also organized on a pair of panels. The bottom of the first four feet of this eight feet of display was left open for two large display cases of industrial bits. The last four feet had shelves added for additional bit sets. The only bits we did not fit into this space were the SDS and spline masonry bits, which are displayed separately with the hammer drills.

This set-up used 14" top and bottom shelves over an 18" base deck. As with the saw blade display, a GE fluorescent

light stick was installed on the top shelf of each four-foot section and the shelves were anchored with #14 sheet metal screws with #8 stop screws set in the track ends to keep the panels from sliding out.

The biggest problem to overcome is making the track assembly run smoothly. To make track line up easier and allow a panel to flow from one four-foot section to another, bolt the top shelves tight together and install a 2"x2"x47" wood spacer above each upper slider track. This will bring the track down below the front and the sides of the shelves so they can be lined up in pairs. Drill a ½" hole through the upper shelf but use 5/16" bolts to bolt the track and wood spacer to the upper shelf. This slight slope allows room for good alignment of the track.

Sockets and wrenches as well as pliers, screwdrivers and most other hand tools also work well on a double set of panels. This display (top right) uses 14" top and bottom shelves on an 18" base deck. To improve visibility on the lower shelf, an 18" shelf with a wire front rail was angled down to actually rest on the front of the base deck to make product gravity feed to the front all the time. This was a great space for tool sets and other large items.

All the top and bottom shelves in this 32-foot run were locked into the standards with #14 screws and bolted together with ¼-20 bolts. To keep someone from pushing all the sliders to one end of the 32-foot run and making it

hard to keep stuff in the correct category, we limited the movement of each panel to between 8 and 12 feet with #8 stop screws in the track. This display with double sets of panels provides close to a 100 percent increase in product density. Another sliding track system I have used with pleasure is a manufactured unit I came across about 10 years ago while on a summer vacation in Ontario.

I went shopping in a small but nicely packed Home Hardware store in Parry Sound, Ontario, that had recently been joined by a Home Depot in the market. They had wisely responded by adding substantial inventory to the store with these neat slider racks.

Their racks were nice looking in a silver/black finish with open wire grid racks that allowed light to pass through. This progressive store had placed one of the 23" wide by 61" high sliders on many of the four-foot sections in the store, adding almost 10 square feet

bottom line

to each four-foot section. Assuming seven-foot fixture, this is a 35.7 percent increase in retail space. There were more than 30 of them installed throughout the store, which is roughly equivalent to creating about 40 feet of empty gondola in the store.

What I liked about this system was that it had an open top rail support that did not block light and it had two bottom options. Rather than a bottom track, it had a simple straight rail that the panel would slide along. You could use the rail with peg hooks behind, or simply let the panel slide along the front of a proper width shelf. The wire grid racks allowed full visibility to the back except where blocked by product.

What I initially did not like about this system was that I could only use one panel for every four feet and their upper track support arm wasted about 6" of gondola height if you also wanted a top shelf. We overcame this issue later when we figured out how to install the track directly on the underside of the top shelf on the gondola.

At a maximum of one every four feet, I could not achieve the 50-100 percent increase in space like I could with the Hy-ko panels, but these were a great option for other areas that were not suited to the double sets of Hy-ko panels. They also can be installed in a lot more places than the Hy-ko panels, because with these single panels you

could still use 12" peg hooks or 12-18" shelving behind them. This option greatly expanded the possible uses.

This photo above shows a normal installation of the slider system available from Quality Wire. It is a simple set-up with a top bracket and rail, the wire grid slider and the bottom runner rail. In this installation I did not use the supplied bottom rail and simply elected to let the panels run along the face of a 10" shelf.

The rows of 10" shelves behind the panels were very adequate to display almost all of the standard kitchen appliances. With the panels set on an 18" deck, you can use up to 4" hooks on the slider panel and still have them set back from the edge of the base deck. I was able to merchandise the 8 feet of carded kitchen accessories directly over the rest of the small appliances and therefore save 8 linear feet of gondola.

The panels slide easily and customers can see behind to get to product they want on the shelves. In this installation

we chose not to place a top shelf above the slider rack to allow more light to pass through the display to reach the merchandise. The shelves behind the panels definitely block more light than peg hooks of merchandise. We used these sliders in housewares (as shown here), carded plumbing, hardware and automotive. They did an excellent job of holding product.

The photo below shows a modified installation of a standard wire grid slider panel and top rail supplied by Quality Wire. In this installation I did not use the normal upper track support and instead bolted the loose rail directly through the upper shelf that supported the canopy and recessed lighting.

This system works amazingly well. There is no loss of space created by using the normal track brackets. The existing light in the canopy provided ample light to the back panel. As with all of these systems, lock all shelves with #14 screws. Set on a 24" base deck, this panel system allowed use of 12" peg hooks and 18" shelves behind the slider. It looks good and worked great for automotive products.

These panels from Quality Wire are ready to go packaged product available in three sizes: all 23" wide in a choice of

51", 61" or 71" lengths. Even if you elect to bolt the track to a bottom of the top shelf, you can still use them very easily. If you like the idea of using these, contact Quality Wire at 905-760-1371.

If you do decide to try some sliding panel displays, please consider the following: Pay close attention to shelf weight ratings. Use a top shelf capable of holding all the product that will be hanging on the sliders below. A shelf may be rated at 200 lbs, but that does not mean it should be all 200 pounds on the front edge.

The weight ratings are based on fairly even weight distribution over the whole shelf. The full weight of each sliding panel is supported at the top of the shelf only. No weight rests on the base, it is only a guide. If the weight is excessive or the top shelf fails, then the weight is distributed to the bottom shelf. The Hy-ko panels are not appropriate for heavy things like plumbing fittings. You should get other heavy-duty metal racks that can handle the weight of plumbing items in plastic bins.

Always drive a #14 screw into the standard above the shelf to keep the shelf from ever coming out and use a #8 stop screw on each end of the track to stop the wheel carriage from exiting the track and causing serious problems.

For best results mount the top of the slider unit as high as possible, up to about 90". This leaves a shelf at the top at 7.5 to 8 feet and still allows the best

bottom line

use of space under the sliders. Light will enter deeper to the back panel than if you mount the sliders on the base deck. You also get much better use of both the bottom space and the top overstock shelf. Use additional fluorescent lighting if necessary.

Do not allow any peg hooks on the outermost panel to extend out past the base deck or you will catch customers’ clothing and have problems. I recommend using only 2" peg hooks with just one exception. At the very top of the panel, usually at about seven feet off the floor, I use a row of 4" peg hooks over the rest of the 2" peg hooks. This makes it easier for a customer to pull product off the top row over the next row of product.

Take a good look at your store layout. See if you can utilize any of these slider panel systems and create some extra space in your store for new product.

Once you have created additional space in your store, use it for something different. If you simply expand existing areas and put more of the same stock on the floor, then you may do little if anything to increase sales or customer traffic. Think long and hard about what you put in your store in the newly created space.

I would strongly recommend that you take a trip to all of your local competitors and see what they have. Remember the bottom line in retail—do not do poorly what they do well. If you can take

business from another competitor your increases will be far greater than just waiting for the economy to grow. If you want single-digit increases you can wait for inflation. If you want double-digit increases you need to take some business from someone else.

Sliders are not the answer for everything. Some things are too heavy or too bulky to work on sliders. Sliders are not better than a bigger store. On sliders, some things are in fact hidden from view. It is important that you show some of each product out on the front panel so that customers know what is behind. They need to be installed properly, safely secured to the gondola and maintained. Keep the lights on and the tracks smooth and your customers will tolerate them. Leave them dark, empty and poorly functioning, and your customers will hate them.

There will be a learning curve with your customers. However, after having used them for more than 10 years, I am completely convinced they are the right thing to do in many cases. Sales increased in every instance, and you can’t beat that. n

John Franklin has 40 years of experience in hardware retailing, most recently as merchandise manager at Williams Lumber & Home Centers in upstate New York. Contact him at john@thehardwareconnection.com.

By John Fix III

What’s the Latest on Hardlines Digest? Buzz

Some retailers find it’s necessary to set credit card minimums to offset rising fees.

Credit Card MiniMuMs

Steve Lipshutz of Tenenbaum True Value Hardware in Chicago commented about the costs of handling small bankcard transactions. “Because more and more customers want to use their credit cards for purchases under or around $1.00, we have set up a minimum to use a card for payment at point of sale. Unfortunately, we cannot figure out a way to make our computer system enforce it. Many times our customers swipe before we can ask them for another form of payment. Wonder if anyone has a workaround for this situation. By the way, our minimum is $3.00.”

It’s the middle of the winter, which means it’s quiet in many of our stores. That leaves more time to chat on Hardlines Digest, and here are some topics that generated lots of discussion recently.

Rather than solutions to enforcing the minimum, other dealers suggested setting a credit card minimum. John Wheatley of RW Shattuck Co. in Arlington, Mass., suggested a different approach. “Steve, don’t get me wrong, but why do you want to impose that three dollar rule on your customers? Take that same training and get your cashiers to smile and say thank you very much for your business, we really appreciate it at the end of every sale. It will make you more money.”

Brian Berta of Berta Hardware in Dwight, Ill., weighed in. “I’m with Steve on this one. Our costs of doing business are constantly on the rise, and those minor sales are costly to us. We also have a three dollar minimum. We have

hardlines digest

yet to lose a sale because of it—just add a soda and a candy to it if nothing else. Most carry change in their cars for sales under a buck.”

JC Warren of Stars Ferry Building Supplies in Burley, Idaho, does not enforce a minimum. “It does not happen enough to us to worry about. It isn’t worth losing a customer over three dollars, even if you don’t lose that sale. I worry they just won’t say anything, pay for the item and won’t come back because that policy upset them.”

Mary Beth Wellington of Cornell’s Hardware offered some personal observations on credit card use. “I watch my 19-year-old son use his debit card for everything from soda to video games and I don’t think he could handle carrying cash regularly. He often charges less than $2. It’s the way of the future and if you get his age as customers now, you should have them still when they need that power tool or grill 10 years from now. Also, when I am at the grocery store I sometimes charge less than $5. It is often faster than digging for buried change and certainly easier for me the consumer.”

threading imported pipe

Matthew Burch from A&G Hardware had issues with imported pipe. “Has any hardliner been able to find a way to successfully thread import pipe without having torn/missing threads?

Dealers discussed how to handle problems associated with threading imported pipe.

I use a Ridgid model 300 power drive and enclosed ratchet threaders to thread pipe sizes 1/4” to 2”. Also have a quick opening die head that I installed the universal gold dies to thread pipe sizes 1” to 2”. I have historically used the dark oil that Ridgid sells. There is no automatic oiler on this machine. I am now thinking I will change the oil to a new oil, Ridgid High Performance.

So now the questions are spinning in my head:

1. Will the new oil fix the problem?

2. Are there better dies I should buy?

3. Should the speed of the machine be slower so as not to tear the threads?

4. Would an automatic oiler fix the problem of torn threads?

5. Should I just drop import pipe and go back to domestic pipe?

6. If I go back to domestic pipe how will I be able to compete with Home Depot?

7. Furthermore, how does Home Depot thread import pipe successfully?”

One Ace dealer had some success and offered a suggestion. “We have

found that threading in stages works. Set the die so it is not as deep the first cut, remove maybe half the normal amount or half the depth of cut. Then finish at normal depth. Takes double the time but works for us. Automatic oiler makes no difference.”

Ken Sculley of Tom Horne Supply Company in Thomasville, Ga., suggested some adjustments to the machine. “We had trouble with ours a while back and replaced several parts, which didn’t help much. We then discovered that the socket head screws that hold the two halves of the die head together had slightly loosened. Tightened these screws and it made a world of difference. There is also a difference in import pipe as well. Had some that was impossible to thread and some no problem, but it’s difficult to find sources that were consistent on where the pipe was coming from.”

Chris Rubeo of Berger True Value in Hawthorne, N.Y., heard that the quality of the pipe can vary. “I spoke with a buyer about this and he said the method they use to manufacture the import pipe will make it hit or miss as far as threading goes. He knows when a not-so-perfect batch comes through, because he will get calls. Then when that stock is exhausted the calls stop and he won’t hear anything for a while. It has to do with the hardness and manufacturing process, if I remember correctly. That is also part of the reason domestic is so much

more expensive. The process we use is better, but costs more.”

Michael Bruns of Kingsford True Value in Michigan found that the new oil has helped with the problem. “I asked Rigid about this problem at the last market and they recommended we switch over to the Rigid Edura-Clear cutting oil and that’s made a huge difference for us. We also always cut anything larger than 1/2” on slow. And lastly, I know the cutting dies do not last nearly as long as when cutting domestic pipe, so we found changing the dies more often helps as well.”

Finally, several dealers including Tom Memmer from Memmer’s True Value in Princeton, Ind., have stopped threading imported pipe altogether. “We stopped threading import a couple years ago, for the same reasons as everyone else has mentioned. We only stock U.S. made pipe, and only thread what we sell. It costs more, and we try to explain that to our customers, but we do not have problems,” he said.

These are just two of the topics discussed during the past few months on Hardlines Digest. To read more or subscribe, head to www.hardlinesdigest. com. Hope to see you on the list! n

John Fix started Hardlines Digest in 1996. The list was run for many years using servers in John’s hardware store in Eastchester, N.Y., but recently the list migrated to Google Groups. There are currently more than 1,500 subscribers reading Hardlines Digest.

PAINT / DECORATING TRENDS

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

Source:

Unit Sales Breakdown for Spray Paint

Total of 2,680 Items with Sales

Make sure employees are trained to sell the advantage of high-quality paint applicators.

PAINT / DECORATING BUYING UPDATE

■ Metallic finishes with a contemporary style are the leading trend in the faux finish category, spurred on by the fact that there are endless color and style combinations and they are easy to apply.

■ Textured finishes such as suede and slate remain popular with decorators, while the hammered/distressed look has spread from walls to ceilings, moulding, furniture and accent pieces.

■ Lead-based paint removers that render lead paint non-hazardous for safe removal and inexpensive disposal are expected to gain in popularity with contractors and homeowners.

The EPA’s 2010 Renovation, Repair and Painting (RRP) rule requires that contractors that work on pre-1978 dwellings and child-occupied facilities be trained and certified to use lead-safe work practices. The EPA is expected to extend the RRP rule to cover the exterior of commercial and public buildings by 2014.

■ Mini rollers are the hot trend in the paint category, due to their ability to

Use clip strips to crossmerchandise dust masks with spray paint.

paint small areas quickly and the fact they can be rolled right into a onegallon can using a grid.

■ Rather than making a large investment to replace cabinets, countertops, tile or flooring, more homeowners are opting for do-it-yourself coating products that allow them to refinish these materials with a new look. Laminate countertops can be transformed to look like granite and outdated cabinets can be made to look like hand-crafted cabinetry with no stripping, sanding or priming required.

■ Now on the market is exterior paint that reflects the sun’s radiant heat, making exterior walls cooler and lowering energy costs.

■ Sherwin-Williams’ color forecast for 2013 features 4 trends: Midnight Mystery with dark shadows and masculine colors like rustic red and plum brown; Honed Vitality and its layered hues of gray, topaz and silver strand; Vintage Moxie with retro glamour and bolder pastels of lilac and violet; and a High Voltage blast of black, white, gray and clear acrylics. To see more click here. ■

POUR & ROLL

PAINT & DECORATING

• Two-piece set that allows you to pour paint safely with no spills or simply paint right from the can with a roller.

• The set includes a paint-pouring spout that snaps into the inner edge of your paint can. It also functions as a brush rest while you paint.

• Packaged with the pour spout is a roller grid for use with a 4” roller. The grid attaches to the pour spout in either of two positions—one for use with full paint cans and a second for use with partially empty cans. The grid removes excess paint from the roller and prepares it for smooth, clean rolling.

• There are two versions of this product: one for metal cans and one for plastic cans.

HYDE TOOLS • www.hydetools.com • 800-872-4933

JUMBO-KOTER SHERGRIP® FRAME

• With its smooth-spinning cage and matching fabric choices, the Jumbo-Koter® miniroller program is a hit with professional and DIY painters alike.

• Slim and ergonomic, this new grip fits a wider variety of hand sizes. The green polypropylene and black Shergrip insets provide a painting experience that’s easier on the hand. Shergrip is a soft elastomeric material with a rubber-like feel. It may be soft, but it’s also solvent-resistant, cleans quickly and won’t crack or peel.

• It easily attaches to standard threaded or Sherlock GT® extension poles. Every frame in this miniroller line works with all 4½” and 6½” JumboKoter covers. Painters can choose any JumboKoter frame and use it with 14 different fabrics.

THE WOOSTER BRUSH COMPANY www.woosterbrush.com • 800-392-7246

TILE

• It is designed to help d-i-yers refresh existing ceramic and porcelain tile without the expense, mess or downtime required for replacement.

• Tile Transformations provides a durable, natural stone effect that is ideal

D-LEAD® PAINT TEST KIT

• The KleanStrip® D-Lead® Paint Test Kit is ETV tested to detect lead and lead chromate in all layers of paint with a color change in 13 minutes or less.

• Simply compare the solution to the color swatch on the bottle for easy-to-read results. It will also determine if EPA regulated leadbased paint is not present.

• Each contains six tests and is EPA recognized for use on drywall, plaster, wood and ferrous metal surfaces.

W.M. BARR

www.wmbarr.com/kleanstrip 800-238-2672

• Fast-drying Rust Protector is available in both sprays and brush-on formulas to meet any painting need. Offers dry time in as little as 8 minutes. The longer paint takes to dry, the more chance there is for foreign particles to stick to the surface.

• While the Rust Protector line offers a complete array of primers, the paint can be used direct to metal with superior results. It can also be used on a variety of other substrates, offering superior corrosion protection, adhesion and durability.

• Additionally, the Rust Protector line offers a wide range of color and special finishes to meet most any outdoor project need, including: gloss, semi-gloss, satin, flat, metallic, hammered and textured.

KRYLON www.krylon.com • 800-247-3268 for use on wall tile in and around the shower or bathtub space, kitchen backsplashes and ceramic tile countertops.

• It uses a durable epoxy coating designed to last for years, making it ideal for areas with prolonged water exposure. The applied coating will not peel and has a subtle texture that helps hide any surface imperfections.

• The low-odor coating dries within 24 hours and can be tinted at the paint counter to a broad range of 14 colors to match existing fixtures.

hardware conference

The hardware conference Combines Business

By the time September rolls around, don’t you think you will be ready for a break? The 2013 Hardware Conference, set for September 6-8 at the Marco Island Marriott in Marco Island, Florida, offers the perfect opportunity to find ways to improve your business while having tons of fun.

Start making plans to attend an uplifting event that can have a positive impact on your business. It’s the perfect opportunity to bring your whole family to a five-star resort right on the Gulf of Mexico with three miles of pristine white beaches.

Tom and Dale Chasteen, who operate Tavernier Hardware in the Florida Keys,

The Dealer Seminar addresses real issues of concern to independent retailers.

will be celebrating the 25th anniversary of putting on the Conference. They have grown it into the industry’s largest gathering of independent retailers. With a personal touch, they have developed a family-friendly, affordable event that brings independent dealers together, regardless of wholesaler affiliation.

“We just feel it’s important to get out of your store, talk with fellow dealers and learn what’s going on in the industry,” Tom says. “To be able to do that in a beautiful place and have a lot of fun at the same time is hard to beat.”

The industry’s premier event for the independent retail hardware channel is taking its awards program to another level. A new recognition program is being developed for 2013—the Beacon Awards, which will be co-sponsored by The Hardware Conference and The Hardware Connection.

In addition to awards honoring community service and lifetime achievement, the highlight of the awards banquet will be honoring the industry’s best new stores. Whether it’s an existing retailer opening a branch store or a newcomer opening a ground-up

business, these new stores represent the future of the industry.

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

“It is always a great time. There are lots of great people to interact with, lots of great info to be exchanged and lots of fun family time to be had,” says long-time attendee Bruce Phillips of Crowder Brothers Ace Hardware in Lakeland, Fla.

The Conference is designed for the whole family, with plenty of free time for fun activities such as golf, sailing, shelling and walking on the beautiful sandy beach. For more information, go to www.thehardwareconference.com . n

By

Are You Ready for the TechnologyComing Changes?

With the start of a new year, where do you stand with a point-ofsale (POS) system? Do you have a POS system? If not, are you thinking about a POS system? Do you view a POS system as an expense or an investment?

If you do not have a POS system, have you thought about why? The better question is can you be successful without one? In today’s world a POS system is the key to profitability. With a cash register all you know is that at the end of the day you take some money to the bank. How much profit you are making on those sales is anyone’s guess. A POS system not only manages money, it manages inventory count and profit results in real time.

We have been fortunate that for the past several years, inflation has been minimal and fairly consistent in the range of 2-3 percent per year. That could change.

Do you do price changes every week? If you don’t, then that could represent a loss of thousands of dollars per $100,000 in sales that is coming out of your pocket. Sell low and buy high. Do you spend extra hours every week walking your store to manually create your orders? Ordering can be done automatically with a POS system in a few minutes.

Consider there are only two areas you have any control over while managing your business: inventory and labor. Most other items are fixed expenses such as utilities, insurance, taxes, etc. A POS system gives you the tools to manage your inventory and profits and helps you to work smarter.

Wouldn’t it be nice to know what is going on with your inventory? To know how much profit you are making? What is selling and not selling? Who are your most profitable customers? What employees are “sweethearting” their friends (selling product at lower prices)? What items are being stolen from your business? There are numerous opportunities for money to be falling right out of your pockets. One viewpoint is that a POS system is an expense. You spend

a lot of money and pay a monthly fee. You just have more bills to pay.

Think of a POS system as an investment to protect all the money you have tied up in your inventory. You would not go without locking your doors at night, having an alarm system or not paying for insurance, as the potential loss would be too great.

If you have a POS system, what shape is it in? How old are the computers? Does it meet your needs? Is the monthly fee reasonable? When you make a support call, do they answer the phone or is it voice mail?

How many computers are you using that are operating on Microsoft Windows XP? Windows XP is a 12-year-old product and is at the end of life. Did you know that on April 8, 2014, which is 14 short months from now, that Microsoft is no longer supporting Windows XP?

What that means to you is no more security updates. With the .net world (software in Windows operating systems that are used by other software programs) and credit card processing taking place on your network and computers, without security updates your computer network will be at risk. Do you have a plan to update your computer equipment?

You also should consider the credit card side of your business. Over the next two to three years all credit cards are being replaced with “Chip and Pin”

(EMV). This is a technology that has been used in Europe and the rest of the world for several years. The credit card has a chip embedded in the card. When customers make a purchase, they will slide the credit card into a slot on a new credit card reader (you will have to buy new credit card devices) and then the customer enters a pin number.

This technology is not to be confused with current “pin debit.” This new process is supposed to reduce fraud by 75 percent. It has been announced that in July 2015, if you do not have these new credit card readers, the merchant will bear the loss of fraudulent credit cards. Yes, you will be charged back for bad cards not processed using chip and pin.

Since the days of Windows XP, many technological changes have taken place. Most computer processors and other hardware in Windows XP computers will not run Window 7 very efficiently. Research the new technologies. Inventory your computer hardware. Have a plan to protect your inventory. Think of it not as an expense, but an investment to protect your inventory and increase your future profits. Plan ahead and be ready for the upcoming changes. n

Fred Fischer is president of Ganymede Technologies Corp. in Bucyrus, Ohio, which markets the J3 Point-of-Sale retail inventory management system. Send comments or questions to fred@j3pos.biz.

IN THE NEWS

NEW STORES:

■ John Brown has opened Ace Hardware Barrington in Barrington, Ill.

■ Mark and Keith Bassett have acquired Village Hardware in Galveston, Texas.

■ H&H Lumber in Superior, Wis., has been acquired by US LBM Holdings.

■ Bob and Sue Kulbeik have reopened Mohagen’s Hardware in Elbow Lake, Minn.

■ Tad Hoefs has purchased Tom’s Hardware Hank in Motley, Minn.

■ Levee Lumber is opening its third store in Westport, Wash.

■ Steve, Carl and Faith Herrgesell have opened Carl’s Ace Hardware in Peoria, Ariz.

■ Portsmouth Ace Hardware has opened in Portsmouth, R.I.

■ Mapes toy store in Ardmore, Pa., has been converted into Mapes True Value Hardware.

■ Dunn Lumber has purchased Parker Lumber in Bothell, Wash.

■ Alexander Lumber has opened a new store in Grayslake, Ill.

■ Sutherlands Hardware and Mercantile is opening this summer in Louisville, Ky.

■ Larry and Norma Dagley, the new owners of Circle Do it Best

Hardware and Lumber in Waco, Texas, have embarked on an extensive remodel of the store.

■ Ramon Ramirez has purchased 103-year-old Yancey Lumber in Patterson, Calif., and renamed it Patterson Lumber.

KUDOS TO:

■ Greg Schlecht, owner of Greg’s True Value in St. Francis, Wis., was named “Citizen of the Year” by the local chamber of commerce.

Rosalee Hermens

■ Rosalee Hermens, chief information officer for True Value Company, has been selected by ExecRank as a “Top CIO” and one of the “Top 50 Female CIOs” for 2012.

More than 50 retailers in the Chicago area participated in Ace Hardware’s Icon Campaign. Several attended the check presentation at Lurie Children’s on Dec. 14 including owners and team members from Laskowski’s Ace, Olson’s Ace, Gordon’s Ace, Park Ace Hardware, Harlem Foster and Norwood Park Ace.

PEOPLE ON THE MOVE:

■ Former Husqvarna executive Michael Jones has joined Lowe’s Cos. as chief merchandising officer while Stephen Szilagyi has been named supply chain executive in charge of logistics and distribution.

■ Jensen Distribution Services has announced the retirement of President and COO Doug Miller, who had been with the company for more than 45 years. Micah Jensen Dunlap has been named president and COO. She represents the fifth generation of the Jensen family that has owned and operated the business since its inception in 1883, joined by her brother Chris Jensen, who is chief business development officer. Also, Bill Keith has been promoted to senior vice president-national accounts, John Wade to senior vice president-dealer sales, Kerri Jones to senior vice presidentmerchandising and advertising, and Pete Broschet to vice presidenthuman resources.

Post to merchandise manager in the home décor category.

WHOLESALERS IN THE NEWS:

■ Ace Hardware Corp. announced plans to build a new distribution center in Wilmer, Texas to replace an existing DC in Arlington in the third quarter of 2013.

■ Houston-based Handy Hardware Wholesale has filed for Chapter 11 bankruptcy protection from creditors, listing assets and debts between $50 and $100 million. Handy has received debtor-inpossession financing from Wells Fargo Credit to continue operations while it reorganizes. The dealerowned company, which has members in 14 states, found itself in debt after being forced to close a two-year-old distribution center in Meridian, Miss., in December.

Don Randolph Mike Post

■ Do it Best Corp. has promoted Don Randolph to retail performance manager and Mike

■ True Value Company has announced that Advertising Checking Bureau (ACB) will handle all co-op advertising and Market Development Fund claims beginning with the 2013 program. The new coop program will feature an easy-touse website to file claims online.

■ The Bostwick-Braun Co. has purchased Columbus Fastener Corp.

■ Distributors from Distribution America and PRO Group expressed optimism about the economy and future business opportunities at the Executive Planning Conference, held Nov. 12-14 in Tucson, Ariz. More than 400 industry leaders met in 2,795 private, scheduled meetings to discuss new product lines and business opportunities. Don Hasson , president of HouseHasson Hardware , said the conference is one of the only events in the industry where manufacturer executives and distributor executives can network with each other. “Our attitude regarding the hardware industry is always positive, regardless of the economy,” he said. “It is important to us to have a personto-person relationship with our key vendors.”

pendent retailers in today’s competitive market.”

Synnott, a 20-year veteran of the company, said independent retailers that are served by PRO’s 26 member distributors have a bright and prosperous future. “We aim to be a key factor in their growth with an unwavering commitment to the fundamental services that are the foundation of PRO,” he said.

OTHER NEWS:

■ Habersham Hardware and Home Center, with two stores in Georgia, has been purchased by the Central Network Retail Group.

Steve Synnott

■ President and CEO Steve Synnott has purchased PRO Group Inc. from Gary Cosgrave, whose parents founded the merchandising and marketing organization in 1953. “The sale ensures perpetuation of the company my family started,” Cosgrave said. “I look forward to continuing my responsibility to support the success of inde-

■ Ace Hardware Corp. has completed the purchase of its largest member, Westlake Ace Hardware, for $88 million. Westlake Ace, based in Lenexa, Kan., operates 85 stores in 33 markets in the Midwest and Southwest. It had been owned by a Minnesota-based private equity group since 2006. Going forward, Westlake Ace will be overseen by a separate board of directors.

■ Danco has acquired MJSI Inc., which manufactures toilet repair products.

■ The International Builders’ Show has agreed to co-locate with

the Kitchen & Bath Industry Show beginning in February 2014 in Las Vegas. The two events will remain separate and distinct in what is being billed as Construction and Design Week, but one pass will allow entry to both shows.

■ Valspar Corp. announced a longterm strategic supply relationship with Ace Hardware Corp. under which Valspar will manufacture Ace-branded paint products as well as make a comprehensive line of Valspar-branded paints available to Ace retailers in the United States. Valspar has also acquired Ace’s paint manufacturing assets, including two manufacturing facilities near Chicago. Introduction of Valspar paint products is expected to begin in the fall of 2013. Ace will retain ownership of its existing paint brand trademarks, including Clark+Kensington ® , but Valspar will manufacture Ace’s product lines exclusively for the retailer.

“Ace Hardware is pleased to enter into a long-term supply relationship with Valspar,” said Ace CEO Ray Griffith. “Our relationship with Valspar will allow Ace to create an enhanced customer experience that generates more paint sales for our valued owners.”

IN MEMORY:

■ Cassity Jones, who founded The Cassity Jones Companies in 1950, passed away Jan. 21 at the age of 94. He was honored as “Lumberman of the Year” by the Texas Lumbermen’s Association in 2000. Jones remained as chairman after selling the business to his children in 1988.

GET THE FULL STORY:

■ California lumber dealers now have to comply with a new 1% state tax on lumber products. For details click here and here for additional information.

■ Employee ties the knot with customer at Boland’s True Value in Chapin, S.C. Click here.

■ Owners of Handy Ace Hardware in Tucker, Ga., plan to rebuild after fire. Click here.

■ Home Depot using customer credit cards to build e-mail database. Click here.

■ Home Depot has acquired pricing data firm Black Locust. See how retailers are embracing data tools for rapid-fire price changes. Click here.

■ Store owner allegedly submits fraudulent rebate claims. Click here.

FEBRUARY

2013

Ace Hardware Spring Convention & Exhibit

February 21-23, Ernest Morial Convention Center, New Orleans

Florida Hardware Spring 2013 Market

February 15-17, DoubleTree Hotel & Convention Center, Orlando, Fla.

Iowa Lumber Convention

February 20-21, Prairie Meadows Events & Conference Center, Altoona, Iowa

Northeast Retail Lumber Association’s LBM Expo ‘13

February 6-8, Hynes Convention Center, Boston

Orgill Spring Dealer Market

February 21-23, Orange County Convention Center, Orlando, Fla.

True Value Spring/Rental Market

February 23-25, Georgia World Congress Center, Atlanta

Wisconsin Lumber Dealers Convention

February 5-6, Chula Vista Resort and Conference Center, Wisconsin Dells, Wis.

MARCH

2013

Blish-Mize Spring 2013 Dealer Market

March 22-23, Overland Park Convention Center, Overland Park, Kan.

Emery-Waterhouse Marketplace 2013

March 15-16, Rhode Island Convention Center, Providence, R.I.

ENAP Meeting & Trade Show

March 25-27, Gaylord Palms, Orlando, Fla.

HDW Spring Dealer Market

March 1-3, Jackson Convention Center, Jackson, Miss.

Hearth, Patio & Barbecue Expo

March 13-16, Orange County Convention Center, Orlando, Fla.

International Home & Housewares Show

March 2-5, McCormick Place, Chicago

LMC 2013 Annual Meeting

March 13-15, Anaheim Convention Center, Anaheim, Calif.

Nebraska Lumber Dealers Convention

March 12-13, Younes Convention Center, Kearney, Neb.

MAY

Do it Best May Market

May 18-20, Indiana Convention Center, Indianapolis

National Hardware Show

May 7-9, Las Vegas Convention Center, Las Vegas

retail ideaS

Shell lumber and hardware FocuSeS on employee development

Shell Lumber and Hardware in Miami makes a year-round commitment to training and employee development to make sure its customer service stands out, according to Jesus Guzman, president and COO. “I’m looking to hire retired plumbers, electricians and millwork guys to get their product knowledge. We’re looking for masters in all trades,” he says.

Comprehensive training starts during orientation. “We go over basic salesmanship, then have what we call Show University. It’s two weeks of training where employees tackle different area in the store. For example, we train everyone in the store to cut keys,” Guzman says.

He notes that it takes about 10 to 14 days to cycle through all the roles in the organization. “At the end, we have a written test to make sure the employees understand not just how to do something but the reasoning behind it,” he says.

The company is also looking to make sure anyone who is involved in training is OSHA certified. “Then about every three weeks, we have a manufacturer’s rep in to show customers various products. The staff will also meet with the rep so they

fully understand the products they’re selling,” Guzman says.

What other initiatives are on tap at Shell Lumber in 2013? “This year, we will also physically touch every single item we stock and make sure item by item that the pricing is aligned where it should be. We’ve already started and have been adjusting some items that haven’t been changed in seven years,” Guzman says.

an eaSy way to Go mobile

This year more people will use their phones than PCs to go online. Mobile searches have grown by four times since 2010. If you have not already made your website mobile-friendly, then here’s a chance to do so at no cost. Go to www.howtogomo.com and get a free mobile presence for a full year ($108 value).

The GoMo site also features mobile best practices including: make it local, make it easy to convert, be thumb friendly and use mobile site redirects.

GoMo is a Google-led initiative to help businesses “go mobile.” Just enter your web address and GoMo will automatically create your mobile site with professional templates. You can further customize your new site if you like and then go live with a single click. Also, you can promote your business and create mobile-only campaigns with AdWords.

Matt Mazzone at Mazzone’s True Value in Brooklyn recently completed his mobile site. If you go to www.mazzonetruevalue.com from your mobile device, it will direct you to his mobile site.

“There is an option there that allows the viewer to see our full site as well. We hired someone on Odesk.com to create the mobile site for us for a few hundred bucks,” he says.

3 Hot Consumer trends for 2013

How will you deliver on consumer expectations for the next 12 months?

To understand and cater to changing consumer needs, retailers first must understand where things are headed. Trendwatching.com shares the following consumer trends for 2013:

Mobile moments—A survey of U.S. adult smartphone owners found that 63 percent of female respondents and 73 percent of male respondents don’t go an hour without checking their phone. In 2013, consumers will look to their mobile devices to maximize absolutely every moment,

multi-if-not-hypertasking their experiences, purchases and communications

Data My-ning—To date, the ‘big data’ discussion has focused on the value of customer data to businesses.

In 2013 expect savvy shoppers to start reversing the flow, as consumers seek to own and make the most of their lifestyle data, and turn to brands that use this data to proactively offer customers help and advice on how to improve their behavior and/or save money.

Again Made Here—Four out of five U.S. shoppers (76 percent) notice “Made in the USA” claims and labels, and are more likely to purchase that product, according to Perception Research. The perfect storm of consumers’ ever-greater lust for newism and niches, the expectation of (instantly!) getting just the right product, ongoing eco-concerns and the desire for more interesting stories will all combine with the spread of new local manufacturing technologies such as 3D-printing and make-on-demand, to trigger a resurgence in domestic manufacturing in established markets in 2013.

Behind the

Numbers

56%

Percentage of small business owners who say most of their retirement nest eggs are tied to their businesses, according to The Wall Street Journal and Vistage International.

69%

Percentage of respondents who thought in-store purchases were “most reliable,” according to a 2012 Nielsen poll. Also, 68 percent said that it was the “easiest” and “most convenient” way to shop, compared to online shopping.

647,000

Number of singlefamily home starts projected by the National Association of Home Builders in 2013, up 21 percent from 2012.

$88 Million

Amount Ace Hardware Corp. paid to purchase the 85-store Westlake Ace Hardware chain.

33%

Online market share captured by Amazon with $48.07 billion in sales in 2011, according to the Institute for Local Self-Reliance. Amazon is growing four times faster than overall e-commerce.

88

Reading of the National Federation of Independent Business’ Small Business Optimism Index in December, up 0.5 points from November but still the second-lowest since March 2010.