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Hardware Connection July/August 2016

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

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

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

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

editor’s note Is Your Staff Trained for Every Situation?

Earlier this month I was visiting a store that will be featured in our next issue as one of our Beacon Award winners. It was a beautiful store, featuring great merchandising and lots of niche categories. However, what impressed me the most was watching the store’s employees deliver exceptional customer service.

I asked the owner about his approach to employee training, and he replied that he strives to make sure that his associates are prepared for every situation they might face. Whether it is dealing with unruly customers, answering the phone properly or handling a return without a receipt, no stone is left unturned during the staff’s training. Even cashiers have a checkoff list containing tasks like key cutting and cutting chain, and they don’t perform those services for a customer until they have mastered those tasks.

It sounds simple, but it takes discipline and commitment to execute such an ambitious training program. After all, great customer service does not happen by accident. If employees have to run to the owner or manager every time they face a new situation, then customers are probably left with a bad impression of the store’s customer service.

I view myself as a mystery shopper every time I enter an independent hardware store or home center, even if I rarely share my insights with the owner. I look at everything with a critical eye and make note of how I was or wasn’t greeted, whether employees could answer my questions or help me find what I needed. Were the shelves well-stocked and neat and the aisles uncluttered? Were the employees friendly or surly?

I recently walked into a hardware store just in time to hear a young male employee tell an off-color joke to the young female cashier. They both giggled, while ignoring the fact that a customer—me—had entered the store to possibly spend money. Luckily my kids weren’t with me to hear the vulgarity and no one else was around, but I couldn’t help but shake my head at that bad behavior.

Those types of experiences happen all the time at some stores, but never happen at others. I’d venture a guess that it comes down to whether the owners and managers take the time to train associates for every situation, and spell out everything they should and should not do while representing the business. The details of retail really do matter. n

ATHE

WAY I

SEE

IT Retailing is About Taking Calculated Risks

s I have shared with you in previous columns, my family has always been extremely conservative. To this day I can hear my father say, “I work too hard for my money to simply gamble it away,” and he passed away more than 20 years ago.

The ironic thing about my father was he did gamble his whole life. He gambled when he joined the Navy that he would make it through flight school. He gambled each time he made a carrier landing at sea. He gambled when he left the relative safety of an established community in Kansas City, Mo., in 1956 (when I was three months old) to follow his father to the Florida Keys and purchase a hardware store he had never seen. In 1956 the Florida Keys were considered a less than desirable place to live with limited community resources. If you can believe it, they used to mail their cash deposits each week to a bank on the mainland through the U.S. Post Office.

My point in sharing this with you is while most of us don’t think we gamble as much as we do in business, the reality is we gamble everything we own

every day. We gamble we have the right merchandise, in the right quantities and at the right price. We gamble our store locations are in the right place and the community we do business in doesn’t trend away from our store’s location. We gamble we have the right number of employees and that we can afford to give them a raise.

Most of us have been in the hardware business so long we don’t really think of it as much of a gamble. Those that are successful often make it look easy, but most people don’t realize how many hours of planning, merchandising and research it takes to be successful. I know a lot of successful hardware retailers who make it look easy, but not one of them has become successful without putting in a lot of work and taking calculated risks.

There are four distinct characteristics that successful hardware store owners seem to have in varying degrees:

1. They must have a strong work ethic. They do not look at the hours they put into their business and divide it by their pay, to arrive at an hourly rate. If they do they wouldn’t last.

THE WAY I SEE IT

2. They must be stubborn, sometimes to a fault, because there will never be any shortage of people around them telling them all the reasons why they will fail.

3. They must be almost possessed with a vision and the unwavering determination to see their vision become a reality.

4. And finally, they must not be afraid to fail.

Obviously, there are other things that all successful hardware retailers must have, such as access to capital, good judgment, insight into the market and a good location. All of that can be overcome in most cases. However, you cannot teach work ethic, stubbornness, determination and the ability to overcome the fear of failure.

As for me (as most people who know me will agree), I was born with the work ethic and stubbornness. The vision is sometimes more difficult for me to see or understand, but typically when I do see and embrace the vision the work ethic and stubbornness kick in and I’m like a dog with a bone—I simply won’t let go.

Overcoming fear or doubt is something I have to work on and I usually do this by preparation and research. For me the more I understand something the less of a risk it becomes. Perhaps it was the way I was raised, but I still avoid taking on projects that face overwhelming odds against

success. I’m never going to be able to walk into a casino and put $10,000 on red number 25 at the roulette table. However, I wouldn’t think twice about adding $10,000 of plumbing inventory or adding $10,000 in sporting goods if I thought the market would support it.

As independent business owners we must constantly be looking for ways to improve our businesses and part of that process is evaluating the opportunities and evaluating the risks. If we are unwilling to do that, then our businesses will become stale and outdated and will eventually become unprofitable. So either we accept (calculated) risk and reinvest in our businesses or we literally risk losing everything we have worked for.

For most hardware store owners I know one of the toughest things to embrace is change and as we get older (closer to retirement) we become less inclined to take financial risks and we become much more conservative because we have a lot more at stake. I think in my personal situation when I become so conservative that I am unwilling to take calculated risks I need to seriously consider retiring, but right now I’m too busy to think about it.

If you have some thoughts on this subject and would like to share with me from one retailer to another, then email me at tom@thehardwarestore.com. ■

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HARDWARE STORIES Amazing but TRUE

Alittle while back, I had a guy who tried to steal 37 circular saw blades by putting them down his pants—out of the package.

Bill Murff

Cypress Ace Hardware Houston, Texas

Whenever we get a new employee, we’ll ask them to go fetch a bucket of steam as a sort of initiation.

One lady came in and I could tell she was getting exas- perated with an employee. So I decided to break in and help. She was trying to buy a door, so I asked her, “Is this an interior or exterior door?” She takes a couple moments, then says, “Depends on which side you’re standing on.”

Scott Campbell

M&M True Value

Steubenville, Ohio

Joe DiPietro

Chubby’s Hardware

Pound Ridge, N.Y.

Alady asked for mineral water. I replied, “We have bottled water and also distilled water in gallons.” She then asked if that’s what she should use to clean oil-based paint. I then realized she wanted mineral spirits. After getting her a gallon, I thought it would be prudent to tell her that she should not drink this.

Dan Vogel

Lee’s Home Center

Millstadt, IL

Here in the heartland of Ohio, we don’t have skyscrapers or subways—we have barns, farmland, homes that have been in families for generations, and manufacturers who care about their products and reputation in equal amounts. Yes, “made in America” means jobs stay in this country, and that’s a wonderful thing...but at Wooster Brush it also means high quality, time-saving performance, and innovation built on 165 years of experience in making painting tools.

How’s

Business?

hands-on help. Our customers like to come down and talk and hang out, like a local bar. We actually can stop and sit and talk to customers for five or 10 minutes.

What new items have been strong sellers?

MIDWEST

Sales and customer counts in 2016?

We’re doing average, about same as last year.

Best niche categories?

Small engine repair, window and screen repair, and we have a propane filling station. To promote those niches, we run some coupons with local magazines. With that minimal advertising, we’re very busy with those niches. Biggest challenge facing your business?

Competition. There’s a ton of competition nearby, including other independent hardware stores and big-box stores. We’re a small, neighborhood store of about 4,000 square feet, and people love us. That keeps us in business. We provide excellent service and keep customers happy through informative,

We survived with no paint department for years and just brought in paint. That’s really our only new item. We’ve been around for 50 years, and we’re pretty set with core categories like plumbing. We also don’t have the space to try new products.

Joe Dorr

Wright’s Do it Best Hardware | Livonia, Mich.

NORTHEAST

Sales and customer counts in 2016?

We’re down about 3 percent. I attribute it to the presidential election year.

Hanover True Value

How’s Business?

We went back through our records and looked at every four years, and consumer confidence is really hurt during election years. In New Hampshire politics affects the economy, particularly this year because of the negative nature of the race. I don’t think customers are really feeling it in their wallets, but customer confidence is the issue. If people feel uncertain, it closes up the wallet. But after the race is over, people will spend like drunken sailors.

Best niche categories?

We run an in-store UPS shipping business. We are the number two Package Express Center affiliate in the nation and the number one drop-off center in the nation. We’ve been doing

this for 20 years. The package center is about 200 square feet of the store and accounts for more than 20 percent of gross sales. And because of the center, we’ve seen an awesome increase in foot traffic—per quarter about 1,500 to 2,000 people come in the store for the shipping. We do a coupon program, too. Per month, about 40 to 50 of those who come in for shipping use the coupons in the store. As far as other niches, Weber grills have been good for us, too.

Biggest challenge facing your business?

The biggest challenge would be the changing expectations of retail customers, who have a constant stream of information. They can look up product

information from their phones and can compare your price to other places. More than that, customers have an expectation of immediate gratification for everything. It’s not necessarily a price-driven nation, but an expectation of wanting to be constantly entertained, which raises expectations of a retail store that’s more and more difficult to achieve. Also, providing online shopping is a double-edged sword. Sometimes corporate True Value’s site offers products for less than our store. We’ve had to cut a price sometimes. But we try to personalize service and special order hard-to-find items. What new items have been strong sellers?

The Weber Genesis EP-330. It’s our top-selling grill, but not the cheapest. It has a nice price point, and we go above and beyond. Our store will assemble and deliver the grills we sell.

True Value | Hanover, N.H.

SOUTH

Sales and customer counts in 2016?

We had a really great spring, and summer is looking good. We thrive on extremes—heat, rain and drought. We had a very productive spring,

How’s Business?

particularly in April, when we were up 8 percent. We’ve been running about 4 percent up in other months.

Best niche categories?

We have more nuts and bolts than anybody in town; people know us for that selection. We also carry durable goods such as washers, dryers and refrigerators. Those are also doing well for us. Several builders are now buying durable goods from us, and that’s been picking up.

Biggest challenge facing your business?

Keeping up the awareness in the community. Our business has been around since 1974, and making

customers aware that we have a selection of durable goods and offer quick delivery has been the biggest challenge. What has helped has been True Value national promotions. That helps keep our name out there. I also use flyers outside our downtown location, up to 10 or 15 miles out, and we’re starting to see new faces because of that.

What new items have been strong sellers?

Slip’N Slides and volleyball sets have been hot. Also recently, insect supplies, specifically mosquito repellents, have been big. I put up a whole endcap of mosquito products, and I’ve

seen a big resurgence of those sales.

Det Haislip

True Value Hardware and Appliances | Aiken, S.C.

SOUTHWEST

Sales and customer counts in 2016?

Sales and customer counts are up in our two stores. In our new store, they are up over 10 percent. Gross margin dollars are up, too. The new store opened in February 2015, and our other store has been here since 1968. We’ve seen customer count increases every

year. It seems like shopping habits are changing back to the old hardware store. Plus, we try to mix up the assortment, provide customers something new to look at.

Best niche categories?

In our new store, we added STIHL power tools and they have become a huge category for us. Because we’re a resort community and there are a lot of festivals in town, another big niche is lawn chairs.

Biggest challenge facing your business?

The looming presidential election and what it may bring. That’s going to

Built in America. Believing in America.*

Tanisha Hyman – Assembly/Trimmers

be scary. Everyone is waiting to see what’s going to happen. This summer, there was a lot of construction and our parking lot was blocked. What new items have been strong sellers?

YETI® coolers have sold strong and really picked up recently. Last summer, I brought some Think Outside products—they make yard art and coolers out of recycled oil drums—and that has been strong for us. It’s unique and a little high-end, but customers have really liked that line.

Tom Mortell Jr.

Timberline Ace Hardware/Norwood Ace Hardware | Telluride and Norwood, Colo.

WEST

Sales and customer counts in 2016?

Great so far. We’re in northern California and last year we went through a significant drought. This year, our sales were record-setting through the first quarter. Sales were up and down until May, which was record setting, and June has been good so far.

Best niche categories?

We have a full-line hobby department, which accounts for about 12 percent of sales. The hobby area is about 1,300 square feet of the store, and we even sold off our rental department to carry more. We carry a lot of RC Hobbies,

pinewood derby and model rockets. Just like any niche, it would be impossible without trained staff members who have an interest in it. Hobby isn’t an industry that you can just get into. It can be very technical and requires an incredible amount of knowledge. The biggest downside to this niche is finding qualified employees. However, margins are typically a little better than some other niches, such as outdoor furniture.

Biggest challenge facing your business?

Finding enough time to do everything and stay on top of product knowledge. Having time for everything is an incredible challenge. For my store, what’s so time consuming is dealing with bureaucracy. In California, the level of bureaucracy is mind-numbing. We have an entire pegboard devoted to different permits, each costing $20 to $300. Staying ahead of those takes a lot of time. When something comes across my desk, I deal with it immediately. That keeps me out of a lot of trouble.

What new items have been strong sellers?

Patio umbrellas have been selling very well.

Gold Country Ace Hardware | Cameron Park, Calif.

Tom Mortell, Jr.

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

Writing about a really good product is truly a joy, especially when the product exceeds our testers’ expectations. This month we are reviewing two of Bosch’s self-leveling laser levels, one laser measuring tool and Dremel’s

PRODUCT #1:DREMEL VELOCITY™ OSCILLATING TOOL | DREMEL,

SUBSIDIARY

OF ROBERT BOSCH TOOL CORP.

Dremel Velocity™ is a combination of Dremel’s top-rated Multi-Max™ and Saw-Max™ tools. The Bosch engineers took all of the features of the Multi-Max tools like the quick lock blade changing system, powerful 4 amp motor and the wide angle of the blade oscillation and combined them with the best features of the Saw-Max tool line like the stability of making straight cuts, an adjustable foot and recessed cuts.

Dremel Velocity takes all of the great features and improves upon them in one easy-to-use tool. The Velocity has a 7 amp motor that combined with an increased oscillation angle allows it to cut materials as much as nine times faster.

This tool easily takes on much bigger tasks like cutting 2x4’s, PVC pipe

new Velocity™ tool. All four of these products exceeded our testers’ expectations in the field and all of our testers agreed that they would recommend these tools to other end users.

and conduit that traditionally required reciprocating saws. It also allows the user to make and control a more finished cut in materials such as plywood and laminate materials that are much harder and dense than drywall material. I used it to make a glove box cutout in 3/16” thick fiberglass. The cut was very clean and straight, because the foot allowed me to control the tool much better.

Each of our testers was impressed with the weight of the tool and strength of the motor. Obviously this tool would fit almost all d-i-y jobs and even serious trim and cabinet

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

jobs. One other nice feature is the Velocity comes backed with a heavyduty storage bag so all of the accessories stay together.

Click on this link to see a demonstration video.

PRODUCT #2: LASER MEASURE GLM 50 C

ROBERT BOSCH TOOL CORP.

Bosch is really making huge strides in the laser and measurement tools categories as they continue to improve their product offering in this category.

The first item we tested was the Laser Measure GLM 50 C. This tool will make a laser measurement up to 165 feet and be within 1/16 of an inch in accuracy. It was so accurate our testers set the GLM 50 C on a stationary surface to get the most accurate reading, because they could hold their hands stationary enough.

The GLM 50 C also computed all of the mathematical calculations such as square footage, volume and angles and also has the ability to measure multiple surface areas, making it great for painting and drywall projects.

For people who need to make accurate measurements to figure installation quotes this is a fantastic tool and it easily fits in the front pocket of your pants. Check out this video to see how easy and useful this tool can be.

We also tested two of Bosch’s self-leveling exterior 360° line lasers. The GLL 150 ECK and the GRL 245 HVCK are both serious pieces of equipment. The GLL 150 ECK is a 360° self-leveling laser that reaches out 530 feet within 3/16” accuracy. This tool is easy to use right out of the box. It is light weight, only requires one switch and will self-level itself almost immediately. None of our testers

had any problem using the GLL 150 ECK. All of the components break down easily and store in a heavyduty plastic case for easy transport. To learn more about the GLL 150 ECK click on this video link.

PRODUCT #3: DUAL-ACTION POLISHER SHURHOLD

PRODUCT #4: GRL 245 HVCK SELFLEVELING LASER ROBERT BOSCH TOOL CORP.

The GRL 245 HVCK is the professional model of Bosch’s line laser lineup. The range of the GRL 245 HVCK is an amazing 800 feet within 1/8” accuracy. However, this self-leveling laser does a lot more than just general leveling jobs. This laser lever also projects a 90° plumb line, which all of our testers really liked. The GRL 245 HVCK laser kit also comes with a laser receiver that makes leveling jobs a one-man operation. Like the GLL 150 ECK it will selflevel almost instantly and it has multiple laser speeds to make it easier to see the

laser in the daylight. To see the GRL 245 HVCK in action click on this video link.

At the next wholesaler show you attend stop by the Robert Bosch Tool Corp. booth and check out the many

Growing with

IndustrialCommercial/ SaLeS

Clark-Devon Hardware has been supplying commercial and industrial hardware on the north side of Chicago since 1924. Since the 1980s the business has operated out of a brick storefront and warehouse that used to be a movie theater but now is filled to the brim with hardware products.

The upstairs office area is like an air traffic controller booth, with desks crammed side by side and shelves lined with catalogs and bins filled with keys. There is a steady procession of employees up and down the stairs, fetching answers to unusual customer requests. In their business, there really are no unusual requests.

“MRO (Maintenance, repair and operations) is the name of the game for us. We’ve been doing MRO sales for three generations. We take care of property management firms and building maintenance people,” says President Ken Walchak, a co-owner whose grandfather

founded the business. “We’ve essentially outgrown selling to the state of Illinois and to industrial accounts. We like to call ourselves ‘Janitors ‘R Us,’” he adds.

The secret to success in the commercial arena is having what customers need, when they need it, according to Walchak. “If we’re going to sell them cases of product, then we can’t be out of it. It’s also about having the specific brand that each customer wants. We stock five different cleaner degreasers

Ken Walchak is the third generation of his family to pursue commercial sales at Clark-Devon Hardware in Chicago.

“Our

Clark-Devon Hardware holds monthly workshops that target building maintenance people and property managers.

including one with our label on it,” he points out. “When you put in a new item you can’t just drop old items, because you still need parts for 25-yearold toilets.”

Competition has gotten fierce, as the internet has dramatically impacted the commercial/industrial sales process. “It’s much more difficult for us. There’s almost nothing that’s special anymore,” Walchak says. “There are no secrets— everyone knows the prices of every product. You have to keep your eye on the ball.”

Clark-Devon Hardware’s website is mainly informational, but there is a link to the online selling site of their wholesaler, Do it Best Corp. “We’re dipping our toes into e-tailing a little, selling things like apartment building intercom systems,” Walchak says.

The company uses three outside salespersons who call on commercial customers, each focusing on specific areas. One of them is a specialist in heating systems.

To emphasize their specialized knowledge, Clark-Devon Hardware offers Wednesday afternoon workshops once a month, in addition to the occasional Saturday workshop for homeowners. Topics include maintaining a boiler

feature

system, plumbing repairs, electrical installation and balancing a steam heating system. “We have a few regular attendees and attendance varies from 10 to 40 people,” Walchak says.

He notes that there is less seasonality to commercial/industrial sales compared to regular hardware sales. Their prime season is spring and fall, when people move in and out of apartments.

The lock and security business is a big part of their commercial sales, which is why there are so many bins filled with keys. “We keep the master keys for hundreds of buildings. Our customers place a great deal of trust in us,” Walchak says.

DIVerSIfYING tHe BuSINeSS

Lisa Williams has been in the hardware business her whole life—her father, R.J. Leeper, founded Leeper Hardware in Jefferson City, Tenn., in 1949. Her son, Brian, also grew up in the business, but he went away to college undecided about his future plans. He came back after college, re-entered the business full time and has not looked back since.

Rather than shadowing his mom around the business, Brian has spent the past four years carving out a new, lucrative niche by calling on commercial/industrial customers. “I’ve been calling on any customer that had a charge account, checking in on what they are buying from other companies. We

FEATURE

were missing a large opportunity,” he explains.

“We’ve been doing a great job of meeting the needs of customers in the store, but we’ve done a poor job of oneon-one interaction with customers in the commercial/industrial area,” Brian says. “We’re focused on increasing value to our existing customers and our goal is to keep sales local in the county, one customer at a time.”

Brian’s efforts have led to phenomenal growth in commercial/industrial sales, which now account for one-third of the store’s business.

“Having Brian focus on the commercial/industrial side gave him an opportunity to become more familiar

with products and vendors, so he’s now more knowledgeable with other customers,” Lisa points out.

KNOWING YOUR MARKET

Porter Do it Best Hardware and Rental in Des Moines, Iowa, is celebrating two important milestones this year: the store’s 80th anniversary and the 20th anniversary of their entrance into the commercial/industrial sales arena.

“It’s an important part of our business, representing about 15 percent of sales,” says Tim Allen, industrial and commercial manager, who adds that their C/I growth has slowed somewhat the past few years due to competition being more aggressive.

Allen points to HD Supply as the online thorn in their side. “We have customers who ask us to match prices they find online from HD Supply. Some would buy solely from us but they’re under pressure from headquarters to find the lowest cost,” Allen says. “Generally, we have to drop our retail price 15 to 20 percent to be competitive for commercial/industrial accounts. That gets me in the neighborhood.”

Allen says it’s important to identify your customer and be familiar with their specific needs. “In the apartment industry you have to keep up on trends and know that everyone wants white doors and brushed nickel hardware,” he points out.

Porter Do it Best offers vendormanaged inventory for a number of

apartment complexes around the Des Moines area. “Normally we will have what they need in stock. Our computer keeps track of our sales history, so we seldom run out of something,” says Allen.

One advantage they have is that their store name is known throughout town, since they have been around since 1936. “You can’t get in the door without

Porter Do it Best Hardware and Rental captures 15 percent of its sales from C/I business.

TO LANDSCAPING MASTER THE BACKYARD

price, but then service becomes the important issue,” Allen says.

He says participating in the INCOM Supply program through Do it Best Corp. has been very helpful. “They offer good training and we take advantage of that,” Allen says.

David Nally of D.C. Curry

Lumber in Ohio started aggressively going after C/I sales a year ago.

Training for C/I sales doesn’t differ much from the hardware side. “Being a polite, good listener is more important than knowledge,” Allen points out. Normally their employees work inside on the hardware or rental side before being switched to the commercial side.

fIGurING Out tHe

One of the hardest parts of entering the C/I sales side is figuring out the right compensation package for your outside salespersons. Most retailers find the right balance between salary, commission and bonuses.

Brandon Buckalew of East Grand Forks

Hardware Hank in Minnesota pays his outside salespeople well and offers a bonus structure based on gross margin dollars. “This way I figure they fight for margin and don’t just sell everything as low as they can,” he explains.

“The rental business helps bring in quite a few contractors so we can keep expanding our construction business,” says Allen. With sales coming in from hardware, rental, construction and commercial business, Porter Do it Best is better positioned to withstand an economic downturn.

For other retailers who are looking to get into commercial/industrial sales, Allen says the key is to know your market and know whether it’s multi-family like them or manufacturing. “Identify which direction you want to focus on. Manufacturing is welding and grinding tools and you better know what you’re doing,” he says.

If the gross margin dollars hit a certain amount they get a 2 percent bonus. If it’s a bit higher they get 2.5 percent, and so on. “Whatever you do, make sure that you have some sort of bonus/ commission. Salespeople are driven by that incentive that they can get more for working harder,” Buckalew says.

He suggests paying above the wage for the overtime exemption. “Give them breathing room to take clients out to lunch once a week or to buy a box of doughnuts,” he advises. “Get them to join a community service organization like Rotary or Lions Club or join a golf or bowling league. Pay the dues and ask that they wear a company shirt.”

MaKING a LONG-terM COMMItMeNt

Even old dogs can learn new tricks. D.C. Curry Lumber has operated in Wooster, Ohio, since 1853, but it just started going after commercial/industrial sales in a big way last year.

“Diversity is important. When looking at our local geography we realized we sit in a significant industrial hub,” explains President David Nally. “We’re looking to take some plane out of our curves so there are less seasonal ups and downs. Lumber will flow rain or shine, but it’s nice to broaden the base of products you sell as an LBM dealer.”

Nally quickly realized it is not easy to pierce the C/I market, with many

Lisa and Brian Williams have been seeing strong growth at Leeper Hardware in Tennessee since branching out into commercial/industrial sales four years ago.

hurdles to overcome. “Our biggest challenge is getting an audience with a customer and getting set up in their system,” he says. “A builder will send you blueprints so you know what they need, but that doesn’t work on the commercial side. There are a few more hoops to jump through.”

In addition to offering an enhanced level of service, Nally looks to provide

products that cannot just be quick shipped by anyone.

“A new customer is going to try you out. You have to provide an item that is generally difficult to source, then you’ve got to get established as a vendor in their system,” Nally points out. Margins are slim for C/I sales, he adds, particularly when you factor in the initial effort to get the sale.

For now D.C. Curry Lumber has one outside salesperson and two inside employees who work on estimating. Nally says the ideal candidate for such positions is a person who is diligent, particular and attuned to minute details.

Do it Best Corp. provides a great program, INCOM Supply, that is like

a boot camp to get you acclimated to what commercial/industrial sales is like, according to Nally. His advice to other retailers looking to branch out into C/I sales: don’t be afraid to call another retailer and shadow other stores. “We sent our people out of state to learn. It’s always better to learn from someone else’s mistakes,” he says.

Be prepared to invest in the long haul, because it’s not an easy road to navigate, Nally points out. “Easy come is often easy go. Long-term steadiness and stability is hard to duplicate,” he says, “but what excites me is the commercial/industrial sales potential is 10 times that of the lumber business.” n

Munson’s True Value added 3,500 square feet of space and expanded all categories while adopting the Destination True Value format.

Rolling Out a

New Look

Munson

who founded the store with his wife in 1964, gives a lot of the credit for the business’ success to his son-in-law, Bob Goble

Fred Munson opened a roller skating rink with his wife Audrey in Oneonta, N.Y., in 1955 that they later converted to a lumberyard in 1964. Munson’s Building Supplies joined True Value in 1975 and rebuilt with the community’s loyal support after a fire destroyed the business in 1979. Audrey worked as bookkeeper and strong partner for the business until retiring in 1988, but Fred still comes to work every day at age 94. Fred and Audrey sold the business to their sons, Steve and Mike Munson, and son-in-law

Bob Goble. Munson’s True Value recently underwent an expansion and remodel project to adopt the Destination True Value format.

Fred
(left),
(right).

Bob Goble

Munson’s True Value

Hardware & Building Supplies

Oneonta, N.Y.

Wholesaler: True Value Co.

Year Founded: 1964

Sales floor: 19,000 sq. ft.

Sales Mix: 60% pro, 40% d-i-y

# Employees: 25

Top-selling categories: Building supplies and windows.

Niche categories: We’re just getting into chicken supplies. It’s amazing how many people want to have a few chickens in their backyard. Rental is also a big business for us.

What was plan for remodel? It was definitely time for our store to be refreshed. It is the second major expansion in the business’ history, and the first in over 30 years. Everything was changed. We expanded to add 3,500 square feet of space and expanded assortments in all categories. The entryway was changed and we switched the racking so all the shelves are going in the same direction. The remodel started last November and we were finished in time for a grand reopening in May.

How have customers responded? We’ve gotten a lot of compliments from customers about the new

Middle: The remodel project involved moving all the racking so shelves face the same direction.

Bottom: The two-day grand reopening event attracted nearly 500 people.

look. People like to see changes and improvements. We’ve definitely seeing more walk-in trade and some new customers. Customer counts and sales are both up a little.

How do you compete with two big boxes in a small town? We make sure we offer the best customer service. We know our customers by name. Our

Company founder Fred Munson (left) still comes to work every day.

2 IN 1 LADDER

Upper:The ribbon-cutting ceremony for the Munson family included a plaque presentation from the store’s True Value rep, Ralph Canu (far right).

Lower: The store now features an expanded selection of Benjamin Moore paint to attract female customers.

prices are very competitive with the big boxes. The remodel has helped by making our store more appealing to customers. What role does Fred Munson play in the business? Fred just turned 94 and he still comes into the store every day and he really works, too. That sets a great example to the rest of us, continuing the work ethic that helped Munson’s survive 52 years and a devastating fire in 1979. I’m 70, but I don’t feel like I can complain about anything if Fred can keep working. Fred likes talking to all the customers. He goes in the back and takes the lumber we can’t sell and cuts it up into small pieces and finds people who want a small amount of convenience lumber. ■

The hospitality suite is on the penthouse level overlooking the beach and Gulf, giving attendees a beautiful setting for casual talk.

Hardware conFerence

Join the Fun at the Industry’s

largest dealer gathering

It’s time to start making plans to attend an event that can change how you think about your business. The 2016 Hardware Conference will take place September 9-11 at the Marco Island Marriott in Marco Island, Fla. It is the perfect opportunity to bring your whole family to a five-star resort located right on the Gulf of Mexico with miles of beautiful white beaches.

Key vendors participate in the event with tabletop exhibits.

The Hardware Conference, which is now in its 28th year and has always been held in Marco Island, provides a neutral forum for retailers from

Meet our BIGGEST Fan!

different wholesaler programs to network and discuss business strategies. Retailers who have been coming with their families for years say they come away re-energized and filled with new ideas to take back to their stores.

Tom and Dale Chasteen began putting on the Conference in 1988, and now they have passed on the torch to Craig and Shanti Cope while staying intimately involved. “The Hardware Conference has been the place ‘where relationships are formed’ and it is my intention to remain dedicated to this concept,” says Craig. “We are merely stewards ensuring everyone has the best possible experience.”

The Hardware Conference is the largest annual dealer event in the industry and it is the only industry event held exclusively for independent retailers regardless of wholesaler affiliation. Ace, Do it Best, Orgill and True Value all support the Conference.

Come and share ideas with fellow independent hardware retailers and

Upper: The Hardware Conference is held at the beautiful Marco Island Marriott right on the beach.

Lower: There are plenty of opportunities to network with other retailers as well as vendors to discuss industry issues.

wholesalers on how to grow your business and interact with key vendors on how to increase sales in your store. In addition to two open dialogue sessions where no topics are off limits, dealers will have many formal and informal opportunities to network with other attendees.

Leading vendors participate in the Conference with tabletop booths showcasing their product lines, and dealers

get a chance to have informal conversations with vendors without the pressure of buying. Another highlight of the event is the open dialogue sessions,

Hardware conFerence

where dealers from around the country join vendors and wholesaler representatives in a spirited discussion of topics of concern to all.

“I think this will be our 25th year of attending. My wife is not in the business with me, but the conference is the first item on our calendar each year. You have the opportunity to see new products, talk to other dealers and learn from both dealers and vendors in a very relaxed setting,” says Rick Heuser of Handyman Hardware in St. Cloud, Fla.

Dealer registration for The Hardware Conference is one of the best bargains in the hardware industry—$149 per person. The fee covers:

• Three cocktail receptions, two dinners and two breakfasts plus access to the hospitality suite all weekend.

• Your choice of golf, shelling or beach activities Saturday afternoon.

• Access to vendor booths Saturday and Sunday.

• Open dialogue sessions on Saturday and Sunday.

• Wholesaler luncheon on Friday.

Hardware TecHnology ForUM

Kicking off the event is a Hardware Technology Forum that starts the day before the Conference officially opens on Thursday, September 8. For the fourth straight year, Epicor, ECi Advantage/ ECi RockSolid and J-3 POS will offer a

Sponsors:

Co-Sponsors:

Technology Forum Sponsors

full-day, hands-on training session for their retailers. Bring your tablet or laptop so you can log right into your store as you learn new tips and tricks to make your POS software more productive in your store.

To attend the Technology Forum and the Conference the cost is only $299 per person and includes all training programs for two days plus breakfast, lunch and cocktail reception on Thursday in addition to the other Conference meal functions and activities the rest of the weekend. The registration fee for attending just The Hardware Conference is $149 per person.

Beacon award winners revealed

One of the highlights of the event promises to be The Beacon Awards, which will recognize the industry’s Best New Stores, as well as Retail Beacon Award winners from participating wholesalers Ace Hardware, Do it Best Corp., True Value and Orgill.

The Beacon Awards are co-sponsored by The Hardware Conference and The Hardware Connection with special sponsorship support from Apex Tool Group, Sunnyside Corporation,

This year’s banquet on Friday evening will showcase a first-class awards ceremony featuring the winners of the Beacon Awards program.

Epicor and 3M. The Beacon Awards banquet will be held Friday evening, September 9, at the Marriott Marco Island.

Beacon Award winners will receive all-expense paid trips for two to the 2016 Hardware Conference including conference registration, airfare, hotel and meals. They will also receive a special Beacon Award plaque and be featured in The Hardware Connection.

sign Up Today

Vendor booths will be auctioned off Saturday night with the proceeds benefiting the Miami Children’s Health Foundation.

The Conference is designed to include the whole family, with plenty of free time for fun activities such as golf, sailing, shelling and walking on the beautiful, sandy beach.

Attendees enjoy special room rates of $171 per night—a significant savings from regular rates of $250+. To make your room reservations, call the Marriott at 239-394-2511 and be sure to mention you are a part of The Hardware Conference.

To see a photo gallery of the Marco Island Marriott resort click here.

For more information on attending the 2016 Hardware Conference, call Craig or Shanti Cope at (305) 853-0049 or go to www.thehardwareconference.com.

Hardware conFerence

CONFERENCE SCHEDULE OF EVENTS Marquee

Wednesday, September 7:

Vendor Only Meeting

10:00 AM – 3:00 PM

Technology Forum, Vendor and Dealer Registration 2:00 PM – 4:00 PM

Thursday, September 8:

ECi RockSolid, Epicor & J-3 POS Breakfast 8:00 AM – 9:00 AM

ECi RockSolid, Epicor & J-3 POS Technology Forums – Dealers 9:00 AM – 5:00 PM

Technology Forum, Vendor and Dealer Registration

8:00 AM – 12:00 PM

Vendor Set Up 9:00 AM – 4:00 PM

Vendor and Dealer Registration 2:00 PM – 4:00 PM

Hardlines Digest Meeting 4:30 PM – 6:00 PM

All-Industry Cocktail Reception 6:30 PM – 8:30 PM

Friday, September 9:

Vendor Set Up 8:00 AM – 12:00 PM

Vendor and Dealer Registration 8:00 AM – 4:00 PM

Ace Hardware Dealer Meeting/Luncheon 10:30 AM – 2:00 PM

Do it Best Corp. Dealer Meeting/Luncheon .

10:30 AM – 2:00 PM

True Value Dealer Meeting/Luncheon 10:30 AM – 2:00 PM

Cocktail Reception 6:00 PM – 7:15 PM

Beacon Awards Banquet Dinner 7:15 PM – 9:30 PM

Hospitality Suite Open 9:30 PM – 11:30 PM

Saturday, September 10:

Breakfast 7:00 AM – 8:00 AM

Exhibit Areas Open 8:15 AM – 10:00 AM

Open Dialogue Session 10:15 AM – 11:30 AM

Krylon Golf Outing (The Rookery Golf Course) 12:00 PM – 5:45 PM

Women in Hardware Private Luncheon 12:30 – 2:00 PM

Wooster Brush – Day at the Beach 12:30 PM – 4:30 PM

Hospitality Suite Open . .

. . 1:30 PM – 5:00 PM

Minwax Shelling Excursion 2:30 PM – 4:30 PM

Cocktail Reception 6:15 PM – 7:15 PM

Kids’ (ages 5-12) Night Out 6:15 PM – 10:30 PM

Key West Buffet Dinner Party and Auction 7:15 PM – 10:30 PM

Hospitality Suite Open 10:30 PM – 1:00 AM

Sunday, September 11:

Breakfast 7:00 AM – 8:00 AM

Exhibit Areas Open 8:15 AM – 10:00 AM

Open Dialogue Session 10:15 AM – 11:30 AM

Closing Remarks 11:30 AM – 12:00 PM

Sponsors

The Hardware Conference would like to thank and recognize its Marquee Sponsors for their support over the years. It is with their cooperation and that of all of our sponsors, vendors and retailer attendees that The Hardware Conference has become the largest annual dealer event in the hardware industry. The following companies are Marquee Sponsors of this year’s event:

“Where Relationships Are Formed”

SEPTEMBER 9-11

3 Days of Networking, Relaxing and Learning

Meet colleagues and new friends at the industry’s largest conference for independent hardware retailers. Share ideas with top retailers on how to grow your business, interact with key vendors on how to increase sales in your store and attend educational seminars, all-industry cocktail receptions and dinners in an exclusive 5-star resort setting.

Learn More About Your POS System at the Hardware Technology Forum

Epicor, ECi Advantage/ECi RockSolid and J-3 POS will offer full-day, hands-on training sessions for their retailers. Bring your tablet or laptop so you can log right into your store as you learn new “tips and tricks” to make your POS software more productive in your store.

Sponsors:

Honor the Industry’s Best Retailers at the 2016 Beacon Awards

The Beacon Awards are an important recognition program that honors the best of the best dealers who represent the future of the

PRICE-SENSITIVE Identifying

Items

As summer heats up, the discussions have been heating up on Hardlines Digest. Read on to learn what other retailers are saying about price-sensitive items and store hours.

PrICe-SeNSItIVe IteMS

Brandon Buckalew of East Grand Forks Hardware Hank in Minnesota wondered how to identify price-sensitive items. He posted, “I’m talking apples to apples right down to the size, shape and color. Power tools and grills defi nitely are price-sensitive and I’ve found spray foam insulation, laundry detergent and batteries are very sensitive. If someone is price checking pipe, they never check the price on the fi ttings.”

He continued, “Maybe another question is: what do you carry that you don’t think is price sensitive at all? I’ve never had anyone hesitate when I’m cutting hose/tubing or rope, cable or chain and tell them the price.”

Light bulbs are a fast-turning, price-sensitive item.

Ken Walchak of Clark-Devon Hardware in Chicago responded, “It’s the internet. Everything everywhere is price sensitive. Customers can check Ben Moore paint and see what my competitors are selling it at in one minute. They believe that we should be no more than Amazon, Costco or Home Depot on any item any time. In addition, we should have as deep a selection as a supply house in every department in which we compete.”

Walchak added, “I waited on a guy last week who walked out because we were priced too high on 2x4 egg crate louvers. Egg crate louvers—really? The only way someone can possibly know that price is if they stood in the aisle on their phone checking out Home Depot’s website. The

internet has greatly reduced the number of blind items we have, consequently making the effort to keep margins up much more difficult. The squeeze is on from both directions compounded by the difficulty keeping traffic counts up.”

Mitch Haase of Mitch’s Incredible Ace in Plainfield, Ind., replied, “Everything in your store is price sensitive to someone. Different plumbers know what the price is for the items that they use. If you have enough plumbers shopping your store, then every item will be price sensitive and those plumbers will then make an assumption about your store’s pricing based on the items they buy. I believe it works this way in every department.”

Buckalew responded, “I get that people are going to know the prices of things that they use, but there are a lot of things that you can be $0.50 over and they aren’t going to go nuts on you or label you as ‘the overpriced store.’ You can’t grab an extra $4 on a roll of plumber tape, but could you get an extra $0.25 without them batting an eye? Can you grab an extra buck or two for a garbage disposal? How about an extra $5 on a water heater? When someone needs a replacement 5/8 socket, do they even look at the price tag as long as the bill isn’t through the roof when they check out? One or two might, but most won’t.”

He added, “We are a convenience location and are a regional destination for some items. Some people are going to flat out lie to you about being overpriced so that you’ll give them a better deal.”

Some retailers extend their hours for the holiday season.

Store HourS

Preston Bullock of Jay’s Ace Hardware in Wrens, Ga., has been debating the merits of staying open until 8 p.m. “We are located in a rural community of 2,000 people, but alongside Highway 1 that sees 9,000 vehicles a day. We are the only hardware store south of Augusta where many people commute to for work. Currently we close at 6:30 p.m. Monday through Friday and 6 p.m. on Saturday. We are concerned that we are missing potential customers headed home from work,” he posted.

Buckalew at East Grand Forks

Hardware Hank replied, “We are open 8-8. We have our day-time staff and a shift manager who work 11-8 and then I have two part-timers from 5-8. They are great for cleaning and stocking. You might be able to trim up some of your day-time labor costs if you go this route. The one thing I’ve found is that every single person that I’ve hired tells me in the interview that 11-8 isn’t an issue, but after about a year they come in the office and ask if there is any way they can get 8-5 hours.”

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

Designed for professional women and men in the two-step hardware industry to exchange ideas, educate, network and provide support and access to opportunities to further careers and help grow the independent channel.

Who’s Eligible to Join?

• Independent Hardware Store Owners and Managers

• Vendors Involved in the Two Step Hardware Industry

• Service Providers Involved in the Two Step Hardware Industry

• Wholesalers/Distributors

• Industry Professionals

Activities

• Membership benefits include up to six networking events per year held in conjunction with other industry events.

• Each event will have a business focus offering direct and immediate benefits.

• Vendor and Service Providers will have the ability to interact with business owners and others in management positions sharing experience, concerns and solutions.

• While focus is on women and their opportunities, men are welcome and encouraged to participate to better understand and lend their perspective of the industry.

Marquee Sponsors

Preston Bullock of Jay’s Ace Hardware was seeking advice on whether to extend his store hours.

Doug Brown of Ramsey Hardware in Front Royal, Va., commented, “We scale hours by season. I look at it as hours to clean, front, floor cleaning and work on projects when it’s slow. It seems to take a year plus for customers to realize the changes to hours or days.”

Dan Schiffman of Pasadena True Value Hardware and Paint in Pasadena, Calif., replied, “Adding an extra 1.5 hours of open time is a big increase. It will take time for customers to learn about your new schedule. The labor costs are the toughest part of the equation. Do you add staff or spread out your existing team? If you spread existing staff, will sales suffer at the expense of longer operational hours? Will you continue the extended hours in winter when it’s getting dark at 5 p.m. or have seasonally longer hours?”

Schiffman added, “When we moved to 7 a.m. to 7 p.m. years ago, my first move was to have all employees take a full onehour lunch, instead of the half hour I previously mandated. This let us painlessly add a half hour at the end of the day. My staff actually appreciated the increased

HArDLINeS DIGeSt

time, as it was impossible to go pick up lunch or run an errand in a half hour.”

Schiffman capped the work day at 7 p.m., because he felt his staff should be home for dinner at a reasonable hour. “I feel that if parents are home for dinner, then their children get into less trouble and the parents then do not miss as much work. We have found MondayFriday 7-7, Saturday 7-6 and Sunday 8-5 works. Sales during the last 90 minutes of the day are less than our mid-day power hours, but definitely worth being open. The number of times we have been heroes to a customer is large,” he added.

Pasadena True Value essentially has three shifts: 7 a.m.-4 p.m.; 9 a.m.-6 p.m.; and 10:30 a.m.-7:30 p.m. A key-carrying manager is always on duty along with the requisite staff of cashiers, clerks, paint department experts and maintenance, according to Schiffman.

He continues, “Maybe you should sit in your parking lot and count how many customers try the door in the first hour after your regular closing. If the number is substantial, then an expansion of schedule should work. I’d watch over several days.” ■

John Fix started the Hardlines Digest in 1996. The list was run for many years using servers in John’s hardware store, but recently the list migrated to Google Groups. There are currently more than 1,500 subscribers reading Hardlines Digest. To read more or subscribe, go to www.hardlinesdigest.com .

LAWN & GARDEN/OUTDOOR LIVING TRENDS

Sales of Garden Stakes (Independent Hardware Channel)

Lawn & Garden/ oUtdoor

LiVinG BUyinG

UPdate

• Homeowners and gardeners all over the country are placing an emphasis on native plants when developing landscape designs.

• “Backyard boldness” is one of the consumer trends identified by the Garden Media Group in its 2016 Garden Trends Report. Consumers are looking to customize their outdoor living space with whimsy and bold style, using lighting, yard art, statuary and multi-colored fl owering bulbs to make their backyard stand out.

• “Layered landscapes” is another consumer trend noted by the Garden Trends Report. Many consumers are looking to create a natural habitat in their backyard, a process that starts by selecting trees, shrubs, fl owers, ground covers and native grasses that blend together and then displaying them at different heights.

• There continues to be increased demand for organic lawn products that are pet safe.

• With drought conditions continuing to plague the West, gardeners are learning to garden with less water, choosing to plant cacti and succulents and making use of rain barrels.

• Lawn and garden spending reached an estimated $36.1 billion in 2015, according

Left: Dan’s Ace Hardware opened in Idaho Falls, Idaho, in March 2016 with an emphasis on lawn and garden products and a niche in grills and barbecue accessories.

Right: Northern Lakes Do it Best Hardware in Hayward, Wis., attracts female customers with brightly colored hanging baskets.

to the National Gardening Survey. The average amount spent on the backyard or balcony was $401 per household in 2015, up from $317 in 2014.

• An estimated 90 million households participated in do-it-yourself lawn and gardening activities last year, representing about 75-percent of all U.S. households. According to the National Gardening Survey, the highest spending was among baby boomers, married households, those with annual incomes of over $75,000 and college graduates. Five million of the six million ‘new’ gardening households were millennials.

• Food gardening and fl ower gardening were the most popular gardening activities last year. About one out of three households participated in food gardening (36%) or fl ower gardening (34%). Households spent an estimated $3.6 billion growing vegetables, fruit, berries and herbs and $2.7 billion on fl ower gardening, according to the National Gardening Survey. ■

Hand & Power tooLS

eZ LeaF HaULer

• Designed specifi cally to make moving large piles of leaves easier. Because of this specifi c design the EZ Leaf Hauler is far better than any other method or device, allowing you to get out of the yard faster.

Gardener GLoVe

• Giant dustpan for leaves holds 4 times more than a wheelbarrow—35 square feet of surface area.

• Robust stakes secure tarp on windy days and 6 built-in handles for easy transport.

• Folds compactly for storage, with reinforced tent constructed sides for increased capacity. EZ Lawn and Garden www.ezlawnandgarden.com 781-413-3079

• The Digz® Gardener glove for women is perfect for all landscaping and garden tasks. The 4-way spandex provides comfort while palm and knuckle padding provides protection.

• Features touchscreen fingertips and adjustable wrist strap. Comes in large, medium and small sizes.

• Absorbent terry cloth is ergonomically placed to absorb sweat.

• Synthetic leather construction is washable and durable.

Big Time Products www.bigtimeproducts.net 877-929-7837

Battery-Powered Lawn Mower

MetrotoP Fire Pit

• RMA 410 C battery-powered lawn mower featuring 36-volt lithium-ion battery technology is perfect for homeowners looking for lightweight, no-mess, no-hassle mowing.

• At only 44 pounds, this lightweight powerhouse can cut up to a quarter of an acre on one charge. Optional mulching kit available.

• Features instant starting, lightweight design, 6 height settings, adjustable folding handlebar, 16.1” cutting deck, 14.5 gallon grass catcher and a brushless, commercial-grade 900-watt electric motor that provides 50 percent more power than the previous model.

• The blade and fan wheel work together to generate a strong current that lifts grass up for a cleaner and more precise cut.

• The new Metrotop aluminum fire pit has clean, slim lines and comes in 26”x45” and 26”x75” sizes.

• Offers beautiful fireside ambiance using propane and also comes with a natural gas converter.

• Features a custom-built rectangle stainless steel burner and an adjustable flame.

• Available in 13 maintenance-free porcelain tile options, in any OW Lee frame finish and with any fire media option.

IN THE NEWS

NEW STORES:

• Brian Mercer has acquired Lee’s Ace Hardware in Van Wert, Ohio, from Lee Krendl.

• Bill Millikin has opened Mascoutah Ace Hardware & Gifts in Mascoutah, Ill.

• Westlake Ace Hardware has acquired Seagoville Ace in Seagoville, Texas, and is opening a new store in Overland Park, Kan.

• Dave Sheets, owner of Arizona General Ace Hardware, is opening a new Ace Hardware store in Paulden, Ariz.

• Marv Stone has acquired Tom’s Hardware in Oxford, Mich., from Tom Toteff and plans to reopen it this fall as his fifth Stones Ace Hardware.

Southern Pines Ace Hardware

• Jill and Randy Saunders partnered with Randy West and Kathy Hooper in opening Southern Pines Ace Hardware in Whispering Pines, N.C.

KUDOS TO:

• Kristin Grunder, owner of Rome Ace Hardware in Rome, N.Y.,

was elected to her first term on the board of directors of Ace Hardware Corp. Re-elected to the board were Amy Kaplanis of Country Ace Hardware in Granby, Colo., and Stewart Elliott Jr. of Elliott Ace Hardware in Milwaukee.

• Burney True Value Hardware in Aberdeen, N.C.., is marking its 95th anniversary. Jim Ransdell is the second-generation owner.

• Kerry and Al Hayes are celebrating the 50th anniversary of Hayes True Value in Bridgton, Maine, which was started by their parents, Al and Betty Hayes.

• The J.D. Power 2016 U.S. Home Improvement Retailer Store Satisfaction StudySM ranked Ace Hardware “Highest in Customer Satisfaction among Home Improvement Retail Stores” for the 10th year in a row.

• The Leopoldi family is celebrating the 50th anniversary of Leopoldi’s Hardware in Brooklyn, N.Y.

• Charlies Ace Hardware, owned by Charlie and Chuck Vandini in Plymouth, Mass., is celebrating its 50th anniversary.

• Alexander Do it Best Lumber, with 20 locations based in Aurora, Ill., is celebrating its 125th anniversary.

• Epicor Software Corp.’s FFL Compliance Manager™ solution has been honored by Network Products Guide as a winner in the 2016 IT World Awards as Best New Product or Service.

IN THE NEWS

ON THE MOVE:

• Do it Best Corp. has promoted Jason Hipskind to regional sales and business development manager for a 12-state region in the Southeast.

WHOLESALERS IN THE NEWS:

• Ace Hardware Corp. reported first quarter revenue of $1.2 billion, up 4.3% from last year. Net income declined $3.8 million to $26.1 million for the quarter. Retail revenues from Ace Retail Holdings rose 9.3% to $50.6 million, while the co-op’s Ace Wholesale Holdings subsidiary increased 12.8% with $10.0 million of incremental revenue.

• Do it Best Corp. surpassed $3 billion in total sales for its recently ended fiscal year. Sales for the coop’s 2016 fiscal year, which ended June 25, totaled $3.02 billion, up from $2.99 billion for FY2015. “While we are certainly excited to reach this sales milestone, what continues to be our top priority is providing the right products, programs and services to help our members grow and achieve their dreams,” said Do it Best Corp. President and CEO Dan Starr. Exceeding $3 billion in annual sales also moved the co-op to the top of a recently published list of leading Indiana businesses. The Indianapolis Business Journal recognized Do it Best Corp. as the largest privately held company in Indiana and the only one in the state to surpass $3 billion.

Do it Best President Dan Starr receives the President’s Award from BBBSA President Pam Iorio.

• More than 30 years of support and partnership has earned Do it Best Corp. the highest national honor for 2016 from Big Brothers Big Sisters of America (BBBSA). BBBSA bestowed its annual President’s Award on Do it Best Corp. at its 2016 National Conference Awards Gala in Orlando, Fla. Do it Best President and CEO Dan Starr and President Emeritus Bob Taylor were on hand to receive the award from BBBSA.

OTHER NEWS:

• ECi Software Solutions has been recognized as one of the Achievers 50 Most Engaged Workplaces™ in North America. “It is such an honor to receive this recognition from Achievers,” said Ron Books, president and CEO of ECi. “In the past year we’ve had a significant focus on our culture, including rebranding our core values. The recognition from Achievers has validated that we are continuing to move in the right direction.”

• Sashco, a manufacturer of highperformance caulks, sealants, log home stains and finishing products, is celebrating its 80th anniversary this year. President Les Burch is the son of founder Donald Burch, who started in 1936 making non-messy window putty one bucket at a time.

• Westlake Ace Hardware is

“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.”

Hardware Eastchester, NY

IN THE NEWS

opening its first stores east of the Mississippi with the acquisition of two-store Ace Hardware of Raleigh in North Carolina from Howie and Brug Jung. The deal is expected to serve as a launching pad for Ace’s wholly owned subsidiary to expand further up and down the East Coast.

• Epicor Software Corp. has agreed to be acquired by the global investment firm KKR from funds advised by Apax Partners. “Our top priority continues to be delivering cloud-ready, marketleading solutions paired with a world-class customer experience,” said Joe Cowan, president and CEO of Epicor. “KKR shares our vision of providing innovative technology with a clear focus on helping customers grow business, not software. This is an exciting time for Epicor, and I am extremely appreciative of Apax’s support during the last five years.”

• STIHL celebrated its 90th anniversary with a family fete for current and former staff at the founding company in WaiblingenNeustadt, Germany. The founder’s grandson and current chairman of the supervisory and advisory boards, Dr. Nikolas Stihl, said, “The STIHL success story has been built

STIHL Advisory Board

Chairman Dr. Nikolas Stihl welcomed staff and their families to the company’s 90th anniversary celebration in Germany.

on the skill and high commitment of our workforce. Those of you who have worked with, and for STIHL in the past, and those of you who are still actively involved are the basis of our success.”

IN MEMORY:

• Butch Vernon, owner of Budget Home Supply in Longmont, Colo., passed away May 20 at the age of 66. He is survived by his wife Beverly; son Buck, daughter Vernetta, stepson David; six grandchildren and one great grandchild. He and Beverly opened Budget Home Supply in 1984, expanding the business many times through the years.

• Vincent “Vinnie” Costello, who developed a chain of 25 Costello’s Ace Hardware stores on Long Island, passed away June 4 at the age of 76 after a long battle with cancer. A veteran of the U.S. Navy, he is survived by his wife Margaret, six sons, four daughters and 25 grandchildren.

FULL STORY:

• Ex-bookkeeper pleads guilty to embezzling $83,000 from two New York hardware stores. Click here.

• Home Depot sues Visa and MasterCard over chip card technology. Click here.

• Cole Hardware store in San Francisco destroyed by fire. Click here.

• Historic hardware store returns to its roots in Michigan. Click here.

JULY

World and Main Fall Dealer Market

July 28-30, George R. Brown Convention Center, Houston

AUGUST

Ace Hardware Fall Convention

August 18-20, McCormick Place, Chicago

Florida Hardware Company Fall Dealer Market

August 12-14, Double Tree Hotel and Convention Center, Orlando, Fla.

HDW Fall Dealer Market

August 19-21, State House Convention Center, Little Rock, Ark.

Independent Garden Center

Chicago

August 16-18, Navy Pier, Chicago

Orgill Fall Dealer Market

August 25-27, Sands Expo & Convention Center, Las Vegas

The Eastern Show for Independent Garden Centers

August 2-4, Valley Forge Casino Resort, Philadelphia

World Pet Association SuperZoo

August 2-4, Mandalay Bay Convention Center, Las Vegas

SEPTEMBER

Blish-Mize Fall Dealer Market

September 16-17, Overland Park Convention Center, Overland Park, Kan.

Bostwick-Braun Company Fall Dealer Market

September 22-24, Seagate Convention Center, Toledo, Ohio

Home Hardware Fall Dealer Market

September 18-20, Henry Sittler Buiding, St. Jacobs, Ontario

Monroe Hardware Fall Dealer Market

September 17-18, Myrtle Beach Convention Center, Myrtle Beach, S.C.

PACOA Fall Market

September 10-11, Queen’s College, Flushing, N.Y.

The Hardware Conference

September 9-11, Marco Island Marriott, Marco Island, Fla. www.thehardwareconference.com

True Value Fall Reunion

September 16-18, Colorado Convention Center, Denver

OCTOBER

Do it Best Corp. October Market

October 13-16, Indiana Convention Center, Indianapolis

House-Hasson Hardware Fall Dealer Market

October 20-22, Sevierville Events Center, Sevierville, Tenn.

For a complete listing of calendar dates, click here.

THE INDUSTRY RESPONDS TO RECENT TRAGIC EVENTS

The United States has been rocked by a series of mass shootings, from the nightclub attack in Orlando on June 12 that killed 49 to the senseless shootings of five police officers in Dallas and three more in Baton Rouge, La., in July.

While these shootings attracted worldwide attention and an outpouring of sympathy, they also left these communities scrambling to put the pieces back together. Not surprisingly, local hardware retailers are among the many businesses that have sprung into action to show support, restore faith and help begin the healing process.

Stine Home + Yard, with 12 stores in Louisiana and Mississippi, got involved last August after Trooper Steven Vincent was shot and killed by a drunken driver he had pulled over. The company donated all proceeds of the sale of blue light bulbs to Vincent’s family.

Stine adopted the same approach when three law enforcement officers were fatally ambushed on July 17. The retailer posted the following on its Facebook page: Blue lights to shine for fallen officers: Stine to donate proceeds of blue bulbs to funds for Garafola, Gerald and Jackson.

Westlake Ace Hardware’s store in Farmers Branch, Texas, organized a fundraiser that raised more than $30,000 to support the

interviewed by a TV reporter after his store led a local effort to offer food and drink to first responders.

With roads blocked off near Toole’s Ace Hardware in Orlando, the store set up a tent and started passing out hot dogs and water to media and first responders.

Walter Toole, owner of nine Ace Hardware stores in the Orlando area, is
Stine Home + Yard, with 12 stores in Louisiana and Mississippi, is donating proceeds from sale of blue bulbs to the families of three fallen officers.

family of Michael Smith, one of the fallen Dallas officers who had been a customer of the store. For more on that, click here.

Andrea Ridout of Gecko True Value in Dallas put up a large display of blue lights that she was giving away to encourage customers to show their support for local law enforcement officers.

A man in Maple Valley, Wash., organized a movement to place a blue stripe across the back of car windows to show support for local law enforcement. The local hardware store, Johnson’s Do it Best Home & Garden, quickly stocked up on blue painter’s

Upper Left & Upper Right: Toole’s Ace Hardware in Orlando shows its patriotic and community spirit in the aftermath of the tragic shooting.

Middle Right: Gecko True Value in Dallas posted this picture on Facebook to show how local residents are showing their support for police officers in the wake of the recent shootings.

Lower Right: Gecko True Value in Dallas was giving away blue light bulbs to encourage customers to show their support for law enforcement officers.

Lower Left: Johnson’s Do it Best Home & Garden in Maple Valley, Wash., has been selling a lot of blue painter’s tape after a local citizen urged people to place a blue stripe on their car windshields to support the police.

tape. See how the idea went viral by clicking here.

The Orlando shootings hit close to home for Walter Toole, who operates nine Ace stores in the area. One of his stores is located just four blocks from the Pulse nightclub, where the worst mass shooting in U.S. history took place.

Toole’s staff set up a tent and began handing out water and food to first responders, with other local restaurants and businesses jumping in to assist. It’s what independent retailers do when a senseless tragedy invades their communities. n

BEHIND THE NUMBERS

34.9%

Percentage of hardware store employees who were women in 2015, up from 26.5% in 2013, according to the U.S. Department of Labor’s Bureau of Labor Statistics. For building material and supplies dealers, 30.1% of employees were women in 2015.

13.3%

Percentage of hardware store employees who were Hispanic or Latino in 2015, according to the U.S. Department of Labor’s Bureau of Labor Statistics. This compares to 13.9% of building material and supplies dealers’ employees who were Hispanic or Latino in 2015.

37%

Percentage of U.S. adults who plan to purchase a new grill or smoker in 2016, according to a survey by the Hearth, Patio & Barbecue Association, which notes that 75% of U.S. adults currently own a grill or smoker.

62%

Percentage of U.S. household grill owners that own a gas grill, followed by charcoal (53%) and electric (12%), according to the Hearth, Patio & Barbecue Association.

10%

Percentage of grill owners who have an outdoor kitchen. Of these outdoor kitchen owners, 67% plan to purchase new outdoor furniture in the next three years and 43% plan to improve their garden/ landscaping, according to the Hearth, Patio & Barbecue Association.

$7.6 billion

Size of U.S. outdoor furniture and grill industry, which is forecast to rise 3.7% annually to $9.1 billion in 2019, according to research by Freedonia.

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Hardware Connection July/August 2016 by NHPA - Issuu