Hardware Connection May/June 2013

Selling ACROSS Generations

STRENGTHENING THE TWO-STEP CHANNEL ALSO

Frager’s Hardware is a D.C. Institution

Regional Reports on Business Conditions

Product Trends in Electrical and Lighting

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

Beacon Awards Director: Tom Delph tdelph@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

Is Your Business Prepared for Disaster?

Seeing the images of destruction on TV after the deadly tornado in Oklahoma or after Hurricane Sandy last year in the Northeast, it’s hard to imagine the feelings of helplessness those affected must feel when subjected to the full wrath of Mother Nature.

Unfortunately, a number of hardware retailers know the feeling firsthand. In April 2011, the Walker family saw a tornado destroy their store, Discount Building Supply in Guntersville, Ala. Luckily, the twister struck an hour before the store opened so no employees or customers were injured. Parts of the store were found a half-mile away.

“I pulled up shortly after and found destruction everywhere. It was heartbreaking to see,” recalls second-generation owner Brian Walker. Undaunted by this unexpected catastrophe, the Walker family and staff started selling out of tractor trailers. After all, the storm had caused massive damage in the area and the community needed their help.

It took 14 months to recover and rebuild—with a lot of 18-hour days in between—but the Walkers opened a bigger and better store on June 8, 2012. “We had a real bad day when the storm

hit, but we’ve rebounded in a big way,” Walker says.

Their wholesaler, House-Hasson Hardware, sent 18 tractor trailers loaded with products, which enabled the Walkers to keep selling uninterrupted. But two other factors helped their business stay viable: they had an emergency plan that was quickly enacted and they were insured enough to continue operations.

Up to 40 percent of businesses fail after a natural or man-made disaster, reports the Insurance Information Institute. A contributing factor is the revelation that half of small businesses have no plan for continuing service after disaster strikes, according to a Small Business Preparedness study sponsored by FedEx.

The Red Cross has developed a free online Ready Rating™ program that is designed to help businesses become better prepared for natural disasters and emergencies. Go to www.readyrating.org to take a self-assessment of your readiness and then use the free tools and resources to step up your preparedness. Taking the proper steps today could prove to be a lifesaver… and a business saver. n

By Tom Chasteen

Two-Step Channel is Filled With Opportunity

Each year after the National Hardware Show I share with our readers my personal opinion of the state of our industry. This is a highly sophisticated process that entails talking with hardware retailers for the past 12 months, speaking with salespeople in the field, calling on independent hardware retailers, speaking with manufacturers and observing the number of new product launches.

Tom Smith, a good friend and the retired CFO for the North American Retail Hardware Association, once told me something I will never forget. He said, “Tom, in good times when you ask a salesperson a business question you get a business answer. In slow times you will get a social answer.”

Allow me to give you an example. In good times, if you ask a salesperson how sales are he or she might reply, “Very good. Through the first two quarters my sales are up 15 percent and my sales for the year are 5 percent ahead of plan.” In slow times when you ask the same question they will reply with something like, “Well, we’ve had a very cold winter and it looks like we won’t have much of a spring.”

So the final not so sophisticated piece of my industry analysis revolves around

whether I get a business answer or a social answer from those I’ve spoken with. It doesn’t make any difference if you ask a second-year salesperson or a senior wholesale executive—no one wants to talk about sluggish sales.

We as hardware retailers are no different. It is our nature to hold up a positive outward appearance even though we might be struggling with our cash flow. For me at least, there is a fine line between running around like Chicken Little screaming “the sky is falling” and trying to “spin” the facts in an effort to misrepresent what is really going on around us.

True leaders appraise a situation, develop a plan of action and are honest with themselves and others about their current situation. Those people, in my opinion, are the leaders that rise to the top in times of confusion and crisis and lead the rest of us, hopefully, to safety or more stable ground.

Over the past year we have seen several leadership changes in the two-step hardware channel. Ray Griffith retired from Ace Hardware Corp. and company veteran John Venhuizen stepped into the top leadership role. Lyle Heidemann just announced his retirement from

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the way i see it

True Value and his successor, John Hartmann, comes from a successful stint managing Mitre 10, a dealer coop in New Zealand. I will miss both Ray and Lyle and wish them and their families nothing but good health during their retirement years.

In addition, Bill Fondren retired as chairman of Orgill at the end of last year (although he remains on the board), replaced by Ron Beal, who had previously succeeded him as president. And I’d be remiss if I didn’t mention Steve Synnott, the longtime CEO of PRO Group, who ensured the perpetuation of the company by purchasing it from Gary Cosgrave.

Our industry has not been without its problems, as the slumping economy and stalled housing market caused margins to shrink up and down the channel. But thankfully, the two-step distribution channel was in good hands during this period of crisis, as experienced leaders were at the helm to navigate the rough seas. Senior management teams are well-informed and engaged in the issues that most concern independent dealers.

New leaders are emerging and they will undoubtedly be faced with new and different challenges. However, I have a great deal of confidence in our industry’s wholesale leaders to meet these challenges and keep their dealers on the path to prosperity.

The two-step hardware channel is strong and vibrant with great potential

and opportunity, which should only be more evident as the economy and housing market continue to improve. I have an unwavering faith in the American business spirit. As long as anyone on the planet has a building of any kind, it will need to be repaired. As long as people like to take care of their yards and have outdoor barbecues, there will be a need for hardware items and someone to sell them.

The vast majority of people seek out companionship and relationships with other people. We are a very social group and as such there will always be room for business people to be successful if they enjoy working and associating with other people.

As John Hammond (another dear friend) used to tell me, “It’s the man, not the plan, that makes most small businesses successful.” You could give someone their inventory for free and give them the best location with the very best business plan, but if they are not responsive to their customers’ needs or if they are rude to their customers, no one will want to come and do business with them and ultimately they will fail.

We as independent hardware retailers “get it.” We live in our communities, we sit on local boards, our kids go to the local schools and there is no one who knows more about what is going on in Main Street USA than the local hardware store owners across this country.

the way i see it

I’ve spoken with many hardware store owners over this past year, so there is no question in my mind that the entrepreneurial spirit is alive, well and growing in the hardware industry.

We as independent business owners are poised to make great strides going forward if we can be candid about the circumstances and conditions in our markets and successfully navigate around some of the industry obstacles each of us will face in the next five years.

Based on my conversations this year, I have no doubt our local economies are improving, our cash flows are getting better and we are beginning to build back our reserves, in spite of

the political gridlock in Washington. American business owners are not waiting for the politicians to sort this out—we are moving forward. Mark my words, there will be no shortage of windbag politicians who will be telling everyone they are responsible for the turnaround from the worst economic meltdown since the Great Depression— yeah, right!

From one retailer to another, feel free to contact me at tom@thehardwareconnection.com and give me a business or social answer to the age-old question: How’s business? n

Tom Chasteen, the publisher of The Hardware Connection, operates Tavernier Hardware in the Florida Keys.

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“Ineed another quart of paint like you sold me six months ago. You remember the color, right?”

Matt Mazzone

Mazzone’s Ace Hardware Brooklyn, N.Y.

HARDWARE STORIES Amazing but TRUE

WIe have given birth to the new fastener—the screwnail, which is applied with a drill bit. Then there is the ever popular new type of plumbing—PCV, so if you need a valve (PCV valve) you’ll wind up in the automotive department. While selecting copper fittings for a customer, I was asked for a sweat gland—you can’t make this stuff up. All of these are things we have been asked for repeatedly, not just once. One of my favorite sayings though, is when a customer asks “How do you sell it?” (instead of how much does it cost?) I tell them “I sell it easy. I take it from the shelf, hand it to you, you take it to the counter and pay for it and that’s it.”

’d like to design the training for new owners of hardware stores. They would need to know some important stuff that won’t be taught in business school. For example, in an average week they’d need to be able to provide the customer with:

1. A “regular” nail.

2. The same hammer like you sold my uncle.

3. A lawn mower blade that won’t hurt the flowers.

4. A universal shower stem.

5. The tool to make a nice 2-inch round hole in concrete, and no, I don’t own a drill.

6. A chain for an orange chain saw.

7. Acid to pour in the toilet.

8. Rat poison that won’t harm my cat.

9. A standard-size piece of glass for my garage door window.

10. Two male adapters, one for my sister’s house.

11. The kind of screws that go through glass.

12. A wheelbarrow that you don’t have to push so hard to go uphill.

13. A new aerator because the kitchen faucet is dripping. I’m sure my baker’s dozen is just the tip of the iceberg. The class would be long and arduous.

Anthony Adipietro Broadway Krown True Value Brooklyn, N.Y

Alan Talman Karp’s Hardware • East Northport, N.Y.

– Byron Bunnell, Rainbow Ace Hardware, Rice Lake, Wisconsin

How’s

Business?

MID-ATLANTIC

Sales and customer counts this spring?

Awesome. In March, we were 24 percent above last year. In April, 39 percent over the previous year. We’ve been open a year and a half, so I guess we’re getting more known. We’re way up on customer count, too. We’ve been really trying to figure out ways to move people through the line quickly. We use the Epicor system and they’re supposed to have an iPad application out soon and that would be great. Rather than having an entirely new register, we can just use an iPad. It would be great if garden center staff could ring up people out there. We’re a 6,500-square-foot store, and the front line looks like O’Hare on a Friday night. It’s a challenge right now dealing

with the customer count. A few weeks ago on a Saturday, we had 525 people through here.

New initiatives planned for 2013?

Most of what we’re planning would be what I’d call internal initiatives. We’re really focused on inventory control and education with the staff. It will ultimately benefit the customer by reducing out of stocks. We’ve made it fun for staff to learn with a little bit of a competition. We are going to participate with the Children’s Miracle Network and may have a mobile blood donation center from Washington Children’s Hospital come here.

Do you promote through social media?

We have a web page and Facebook page. We’re looking to develop the web

page next year. On Facebook, we introduce new products. For example, we just started renting rototillers and carrying the Waste Management Bagster®. When we get something new like those products, we put them up.

Annie Stom

Annie’s Ace Hardware • Washington, D.C.

MIDWEST

Sales and customer counts this spring?

It’s been pretty slow, but I attribute that to the weather. Things are already picking up.

New initiatives planned for 2013?

We’re making a big effort to use Facebook and project a positive image of the store. Our Next Generation Carpentry Club started this spring. Do you promote through social media?

We plan giveaways through Facebook. We see it as a direct connection to customers, and when they like you, they’re giving you an in. You have to use this free advertisement. We don’t make our Facebook page all about sales; we try to make it personal, more conversational. People seem to respond to that approach, where

we’re humanizing the store instead of making it seem like an institution.

Cassy Simon

Generation Do it Best Building Center

Lonsdale, Minn.

NORTHEAST

Sales and customer counts this spring?

Good. Sales are up 13 percent. Customer counts aren’t up as

much, close to flat. We made a lot of changes with new management and the next generation of ownership coming in. We implemented a new computer system, and we’re starting to see the results from that.

New initiatives planned for 2013?

Nothing really. We did a reset last year and brought in some new lines such as Stihl and Benjamin Moore, and we expanded our Weber grill line.

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How’s Business?

Is store doing anything in particular to sell across generations?

Nothing specific. We cater to all customers, but we do pay a lot of attention to younger parents with kids. We do little things such as provide helium balloons and carry garden toys for kids. We want parents to enjoy bringing their kids here because they are tomorrow’s customers. We’ve been in business for 150 years, and people who are 50 and 60 years old remember coming in here with their parents. We do stock some safety items for older customers. Do you promote through social media?

We do a little bit on Facebook and our website but not aggressively. Getting the pages up was a project for us.

John Wheatley III RW Shattuck Ace • Arlington, Mass.

SOUTH

Sales and customer counts this spring?

We’re up about 30 percent. We picked up some market share. Home sales in our area have picked up. It seems that national stores are so busy taking care of national

business they’re not taking care of the small guy.

New initiatives planned for 2013?

We just purchased another company, a door shop. We’re now in the business of trim and installing door. We were pulling our hair out in the beginning, but we’re getting our arms around it and we’re in the process of shaping it into how we do business.

Is store doing anything in particular to sell across generations?

No, not really. We do some local TV commercials. People who are replacing windows or decks know that we’re here. We don’t really stock products for the elderly. We’re strictly building materials. Do you promote through social media?

Kinda, sorta. We’re not the most tech-savvy group, but we do have a Facebook page.

Scott Barnett

Barnett & Cheeves • Newnan, Ga.

WEST

Sales and customer counts this spring?

Very good. Here in California the weather has cooperated and our economy is a little slower than the rest of country at getting rebooted, but it’s moving in the right direction. Spring started early and we’re up about 9.5 percent. It’s starting to slow down in May because of weather. Transactions are up slightly.

New initiatives planned for 2013?

Right now, we’re just kind of hanging on. We’re trying to keep up with this very busy time of year. We’re trying to utilize our inventory effi ciently and keep our inventory under control. By focusing more on employee training, we’re trying to keep up with price changes as they come through from wholesalers and manufacturers.

Do you promote through social media?

We have a website, Twitter account and Facebook page. We post to Facebook on a weekly basis. Our advertising manager is in charge of all those. We use

How’s Business?

social media to post about what’s going on in the store and occasionally will promote items, such as seasonal products.

Craig

Franklin Emigh Ace Hardware Sacramento, Calif.

Sales and customer counts this spring?

They have been stronger than last year. We’re up 16 percent over last year, with similar numbers for customer counts. A lot of it has to do with our warm, early spring.

New initiatives planned for 2013?

We don’t have anything particularly on the docket. We are looking for a sharper focus on inventory.

How’s Business?

Is store doing anything in particular to sell across generations?

No. We just follow the tried-and-true approach of excellent customer service and word of mouth. We do stock some items for older customers, such as non-slip mats, and they’re on our order a couple times a month. Do you promote through social media?

We do have a Facebook page. Most efforts are through local events. We

are pretty light on our Facebook page, but we do at least one touch a week. Mainly, we promote True Value offers. Cary Claar B&I True Value Hardware Junction City, Ore.

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From Tom’s Shop

HARDWARE PRODUCTS REVIEW

Other than seeing gross margins increase or having everyone show up for work on time, nothing gets an independent hardware retailer as excited as a great new product they can sell in their store. New products are what help us differentiate our product offerings from other stores. Our ability to evaluate and embrace new products is, without question, one of our greatest competitive strengths as independent hardware retailers. Take a minute to observe the new product area at your next wholesaler show. Watch how each of us quantifies and evaluates the sales potential of each product for our individual

PRODUCT #1: LOCKING BOX/COVER FOR HOSE BIBB ARROWHEAD BRASS PRODUCTS

Arrowhead Brass Products has come out with a stainless steel locking box/cover to secure a hose bibb. This product is extremely well made—the locking door fits so well it is virtually impossible to get the blade of a screwdriver under the

By Tom Chasteen

markets. The look on a dealer’s face when he takes out his pen to make a notation about a new product is the realization that he just found another opportunity to sell something else new in his store. Recently I had a retailer ask me why I don’t review any commercial/industrial products in From Tom’s Shop. His point was well made since commercial accounts are a big part of many hardware retailers’ businesses. Starting with this issue we will make an effort to review products that would appeal to commercial accounts doing business with us.

edge of the door to pry it open. The hinge is made like a piano hinge with one hinge pin to prevent corrosion. The finish of the stainless steel box is highly polished (see the picture) as though it were going on a yacht. The back of the box has four stainless ¼”

From Tom’s Shop HARDWARE

PRODUCTS REVIEW

machine screw studs welded to the back to make for an easy installation with four ¼” all-thread extensions in case the user would like to through bolt the box on a stud wall. In the back of the box is a 1-3/8” diameter hole for the hose bib to come through and it’s deep enough that you can mount a hose bib with a security handle or one with the standard round handle. This is definitely not your typical steel box that will start to rust and leave rust stains running down the side of the building.

Arrowhead has also developed a first-rate double check, anti siphon and frost proof hydrant (hose bibb) that comes in varying lengths for different wall thicknesses. To make installation even easier it comes with a ¾” brass female Sharkbite™ fitting to slip over the water supply pipe coming through the wall.

The Double–Arrow hydrant has ASSE Standard 1053 approval for “double check back flow prevention” and gives you more flow volume than other 1052 and 1053 devices. When you pick it up you know immediately from the weight that this is a commercial-grade back flow preventer. For more information about these two products and other Arrowhead products go to www.arrowheadbrass.com.

PRODUCT #2: MULTI-BIT SCREWDRIVER | MEGAPRO

Megapro is a company that makes professional-quality multi-bit screwdrivers. Before we go any further let’s just clarify that these aren’t your typical $9.99 multi-bit screwdrivers. Megapro has been manufacturing its multi-bit screwdriver in South Bend, Ind., since 1994 and it shows in the quality.

The multi-bit screwdriver we tested was the yellow and blue handled stainless steel driver and is without question one of the best screwdrivers I have ever used. The stainless steel shaft won’t rust and the nickel-plated ENP coated bits ensure they won’t rust either but yet have the strength to not snap or bend, which would make them useless. The driver bit cartridge slides easily in and out of the handle but holds each bit securely, so they don’t fall out on the

ground when you slide out the cartridge.

The other benefits become apparent as soon as you use the screwdriver. The handle fits the

is easy to grip and won’t slide in your palm. The “Palm Saver Cap” allows you to keep pressure on the fastener as you rotate hand and

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From Tom’s Shop

HARDWARE PRODUCTS REVIEW

your hand to make another twist of the driver, much like you would with a ratchet driver. It also has a collar around the shaft so the user can hold and control the driver in place with the bit still engaged with the fastener as you tighten or loosen the fastener. Finally, the bright yellow and blue handle makes it very easy to identify when the user asks his wife or kids to hand him the screwdriver.

Megapro is privately owned by Hermann Fruhm and the quality of the company’s products is a testament to his dedication to making professionalquality products. To see a short video of the Megapro line of screwdrivers click here.

PRODUCT #3: LENS RENEWAL SYSTEM | 3M

3M is truly one of the “Blue Bloods” of our industry and has been improving and creating new products in the hardware industry since 1902, when they started making sandpaper products. The scope and breadth of what 3M makes, not just in the hardware industry but across various industries, is simply mind-boggling and inspiring.

The product we tested for 3M was the Lens Renewal System, which is used to rejuvenate plastic lenses like automotive brake lights, head lights and marker light lenses. It can also be used on boat running light lenses and spot lights. The kit comes with everything the consumer needs except an electric or cordless drill (our testers used both).

As with all 3M products, the packaging and directions are outstanding. The

Renewal System is a three-step process that only takes five minutes or less to actually make your customers’ car lenses look like they did when they drove the car off the showroom floor. To see a short video of how the process works, click on this link: http://3mauto.com/howto-center/headlight-restoration/ . If you would like more information about this product go to http://3mauto.com/3mlens-renewal-kit-39014.html

If you have a strong automotive section in your store, I would definitely consider stocking 3M’s Lens Renewal Kits for your customers.

By Chris Jensen

Selling Across Generations

Chuck Nutter offers a handyman service and will do anything to repair or maintain a home, a service increasingly in demand by aging baby boomers and time-starved Gen X’ers.

The same merchandising, marketing and selling strategies that attract elderly customers will not necessarily be effective at attracting younger customers. Savvy retailers understand they need to act like a chameleon to ensure their store can sell across the generations.

ChuCk Nutter of Nutter hardware in Columbus, ohio, wanted to re-create the classic hardware store that marries the best of modern technology with oldfashioned customer service, hoping to attract shoppers of all ages. Customers are greeted by a fully restored 1948 ford f150 pickup truck on the salesfloor, while endcaps feature tVs playing product videos.

“we have candy by the checkout like an old-fashioned store and offer free popcorn

Mature shoppers are thrifty and prefer shopping at small, local retailers who offer strong service.

because we know we have to get kids involved,” Nutter says. “My greatest fear is that the next generation of customers doesn’t know what an old-fashioned hardware store looks like or what great customer service is really like.”

He adds, “There are real generation gaps where people aren’t teaching their kids how to do home projects. Customers of all ages will keep coming back if we treat them right.”

Targe T ing T he MaT ure Marke T

Affluent, mature consumers want their homes repaired and maintained by someone else and are willing to pay for a variety of home services. Less affluent matures want to exhaust all options to repair a product at little or no cost before they will consider buying a replacement. When planning assortments, Lex Stevens of Back Bay Hardware in Boston tries to remember that women of all ages like smaller sizes because they have smaller hands and that older

generaTions

people need things they can use easily with decreased dexterity and arthritic hands. “Flashlights are always popular with older people,” he adds.

John Glenn, general manager of Discount Dan’s Home Center in Sheffield, Ala., has discovered that electric scooter carts are greatly appreciated by older customers. “They are used every day. We designed wide aisles so that two carts can get down the aisle at the same time,” he says.

Frager’s Hardware in Washington, D.C., offers a 10 percent discount to seniors, according to GM Nick Kaplanis. “The customer has to request it; it’s not something we advertise. We look at these discounts as a reward for longevity, not as a loss of gross margin.” Kaplanis believes a sporadic 10 percent discount will have minimal impact on the bottom line but can lead to additional business over time.

TargeTing BaBy BooMers

Consumers between the ages of 55 and 64 spend the most on d-i-y projects, but only because they tend to invest in expensive projects such as kitchen and basement remodeling. These baby boomers are actually tackling fewer overall home projects than other generations and are increasingly looking to buy-it-yourself and have someone else do the work.

Certain conditions had to exist for big boxes to emerge, but Doug Stephens of

Retail Prophet Consulting notes that as the baby boomers age they will be less inclined to navigate through massive big-box stores in search of the products they need. The aging of the population

promises to bring renewed interest in small, local retailers who are intimately familiar with their customers’ needs.

Baby boomers are going to live longer, but people buy less stuff when they turn 50, although they do need more services. By 2031, Stephens points out that one in four people will be over 65. “No other force will have a more dramatic impact on the economy, public finances and policy making as the irreversible force at which the population is aging,” he says.

The United States has gone through historic change in the population makeup, and retailers profited as the baby boom generation moved through the economy. “If nothing changes, you will

have 11 percent fewer consumers,” Stephens points out.

With their customer base aging, retailers need to think about shelf height, navigation, weight of products, lighting, sound, type size on signs and store size. “That stuff also works for younger shoppers and is not just an accommodation for aging boomers,” Stephens notes.

TARGETING GEN X’ERS

GENERATIONS

Generation X consumers (born between 1965 and 1979) are independent and resourceful and comfortable using technology. They are more likely to go to the Internet first before planning a shopping trip and have learned to question and pick over the details of marketing offers.

Generation X shoppers have a notable fondness for presentation and are more willing to try products that feature cool graphics and ingenious packaging but also affordable, according to a recent study by DePaul University. Marketing to this group is all about downplaying the “X” and emphasizing the individual experience.

Karen McCullough, a generational management consultant, says Gen X’ers are very self-sufficient and want worklife balance. “They want honest communication and they are loyal to people, not organizations.”

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Cam Marston is a leading expert on the impact of generational characteristics on the marketplace. He says, “Use of their time for X-ers is more important than establishing a relationship with you.“

tarGetinG echo Boomers

The population may be aging, but retailers will find the next generation of shoppers a tougher nut to crack. Echo Boomers (born between 1980 and 1995) don’t care where they buy, which is partly why online sales are growing three times faster than sales for brickand-mortar retailers.

Echo Boomers, also known as Gen Y’ers or Millennials, have less predictable tastes and they are very connected to what’s happening in the marketplace, according to Stephens. They research products before they go to a store and they share their shopping experiences, good and bad, with all their friends through social media networks.

If your store does not have competitive prices, then you can forget about selling to Echo Boomers. They can be found walking up and down the aisles scanning bar codes to check prices.

Generations

Here are some facts about Echo Boomers from Y Generation Partners:

• Echo Boomers value time over money, and they prefer digital online media over television, radio, and print.

• Echo Boomers tend to buy products on the basis of peer suggestions, not advertising or public relations.

• Echo Boomers tend to buy smaller houses on smaller lots that are closer to work. Only 20% of Echo Boomers list owning a home as a major priority.

• Ninety percent of U.S. born Echo Boomers have less than $1,500 in assets, according to Forbes, so most cannot afford to buy a home even if they wanted to.

Generation Y is a generation that is highly impatient and wants control of their time, according to McCullough, who points out that 37 percent are unemployed or underemployed, but they’re not worried. “They are the first generation high on self-esteem and raised with technology. They are used to doing things faster and quicker. They live online and on their phones and have a mobile mindset,” she adds.

Marston says consumer shopping patterns across the generations are pretty easy to figure out. “People do business with people that they like. People do business with people they think are like them.”

What is your store doing to sell across generations?

We do a lot of community events. We sponsor free bike clinics, have Girl Scouts selling cookies and have a partnership with the Humane Society for pet adoption days. We also host car washes for local schools. We’re in an urban place, so the demographics are all over the map. We appeal to older folks because they’re excited to have a place to shop where they don’t have to drive. In our garden center, we have two retired people who are very knowledgeable, and it’s great to have that resource.

Annie Stom Annie’s Ace Hardware • Washington, D.C.

Our neighborhood was developed in the 1950s and some of the original residents are still around, so our store tends to skew older. We stock about 8 to 12 feet of personal safety products such as non-slip mats and grab bars. We try to encourage parents to bring their kids in by offering free popcorn. We also have a pumpkin carving contest and partner with local youth groups. We’ll have events where the local youth band plays.

Craig Franklin Emigh Ace Hardware • Sacramento, Calif.

We love having kids in the store. We conduct lots of contests for kids. We have a cardboard box decorating contest planned for later this summer. We also had a bird feeder contest for kids. Participants received a $10 store gift certificate and we partnered with a grocery store to also give a $5 grocery store coupon. We had 23 participants. We’re trying to promote ourselves as a family store, and we’re trying to encourage kids to get involved with a craft. As far as older customers, we have a diverse staff that can relate to a variety of people. We stock a few personal safety items. But whatever a customer wants, we can order. n

Cassy Simon Generation Do it Best Building Center • Lonsdale, Minn.

The winners of the Next Generation Carpentry Club contest at Generation Do it Best Building Center are learning d-i-y skills early.

Frager’s D.C.

Frager’s

Hardware is an old-fashioned hardware store that has been serving the needs of customers in the Capitol Hill district of Washington, D.C. since 1920. It sells a little bit of everything, with narrow aisles and shelves crammed with products that remind customers of other projects they need to tackle. President George W. Bush visited the store in 2006, and Frager’s survived an earthquake that shook the whole store in August 2011. General Manager Nick Kaplanis has been in the middle of all the activity for the past 18 years.

Nick Kaplanis

General Manager

Frager’s Hardware Washington, D.C. www.fragersdc.com

Key Categories: Benjamin Moore paint store, Garden Center, Just Ask Rental

General Manager Nick Kaplanis explains that Frager’s has become world-famous for its t-shirts, with customers posing in the shirt in exotic locations. Click to Watch

Dealer Profile

In what ways is Frager’s differentiated from the competition? We’re like a family. People come here as a gathering place; they come here to talk with each other. We have a very loyal following. Plus, we get our customers in and out of the store quickly.

How do you ensure your store delivers exceptional customer service? Everyone who works here knows that that’s Frager’s. We have meetings once a month and we talk about different things that could have been improved on over the period of the last month. So everybody is in the right frame of mind when they come to work.

Upper Left: Paint is one of the best-selling product categories.

Lower Left: Frager’s is known for its narrow aisles crammed with products and its exceptional customer service.

Upper Right: Frager’s Hardware has been serving the Capitol Hill district of Washington, D.C. since 1920.

Lower Right: The rental department features party supplies.

What are you doing to attract the next generation of customers?

We do things like on the weekends we give little toys away to the kids that are coming in off the street…tops and little Slinkys. We even have kids insist that their parents come here to see what we’re giving away.

Where did the Frager’s t-shirt idea come from? We’ve had t-shirts

ever since I’ve been here, which is 18 years. Ten years ago one of the people who works here as an office manager came up with the idea of promoting the t-shirts and having the customers go out of the country and take pictures of themselves in front of a neat place. We have a picture of a lady in front of The Great Wall of China, The Taj Mahal and a couple scuba diving in the Bahamas with our t-shirt on. Pretty creative stuff.

There are a lot of great hardware store tee’s out there. The key is to figure out how to capitalize on “your brand.” We give out many of our tee’s to visiting parents, from far away, who help their kids move into dorms or rehab their new home purchase. But we do attach strings to the gift. The main string is: if they go out of the country on vacation they have to wear our tee at least one day on that trip, and see how many people say they know Frager’s. The comebacks are amazing!

Click to View Slideshow of Frager’s T-Shirt Contest Photos an

We also have an annual contest called “Frager Rama.” Wear your Frager’s t-shirt in an exotic, unusual place and send us a picture of you wearing one of our tees for a chance to win a $100 gift certificate.

How has business been in 2013?

So far 2013 is off to an even start from last year. I think all the things going on with the Congress down the street and the uncertainty of the financial budget has got people a little on the nervous side. You can see it’s softer business, but it’s holding up. ■

FRAGER’S SUPPORTS TORNADO RELIEF EFFORTS

Frager’s is encouraging its customers to contribute to the Oklahoma tornado relief effort. On Memorial Weekend, rather than having a big sale the store donated 5 percent of its net cash and credit card sales to the Red Cross Oklahoma Tornado Relief effort. They also accepted individual donations to relief agencies. For more information and to learn how you can donate to the cause, click here.

PIVOT PRO™ PLIERS

Here are 10 unique and innovative new products we discovered at the National Hardware Show®, held May 7-9 in Las Vegas.

• Crescent® has introduced new pliers that feature a unique pivot point in the center of the body, allowing for additional leverage, delivering nearly double the force of standard pliers.

• Crescent Pivot Pro Pliers are easy to use with one hand and offer added grip, enhancing end user comfort. The Pivot Pro Pliers are an ideal tool, whether working on a simple at-home task or a large renovation project.

• Pivot Pro Pliers are ergonomically friendly and require less muscle strength when cutting, offering unprecedented cutting control for the DIY and professional user.

• The pliers are available in diagonal, long-nose and linesman variations.

TECH GEAR™ STEREO SPEAKER 18" TOOL BAG

• Quality stereo speaker system connects to digital music player or smartphone.

• See-through cover helps you easily identify selection and function of your music player. Power through AC wall plug transformer or 4 D-cell batteries.

• Features 18 multi-use pockets inside and 21 outside for storage of tools, parts and accessories. Integrated

cover helps keep audio components safe from dirt and debris.

• Padded shoulder strap for comfortable and convenient no-hands transport.

PATCH PLUS PRIMER

• Spackling and primer in one features nanotechnology to create professional-looking results in one step, eliminating the need to prime before painting

• The product was designed to address the challenges painters face when patching a wall such as cracking, shrinking and flashing.

3M Patch Plus Primer makes the prep process easier and reduces the skill level required to achieve professional results.

• It features all the benefits of a lightweight spackling with the strength

of a heavyweight spackling. It’s easy to use, won’t shrink or crack and dries quickly (ready to paint in 30 minutes).

• Advanced acrylic resins offer great paint anchoring compared to traditional patching compounds, and specially engineered fillers pack together to resist shrinking and provide strength. It’s ideal for use on surfaces such as drywall, plaster, wood, stucco and concrete.

• TacMate stapler is unique in its class: A smaller-sized, professional multi-use tool with power equivalent to large, professional staple guns. Plus, its smaller size makes it easy to squeeze and easy to hold without sacrificing power or precision.

• The advanced polymer housing construction is durable yet still lightweight. The shorter grip span makes it comfortable for hours of continued use. The non-marring tip is designed to help protect the

• The 18-volt MXH180 is the first oscillating tool with a brushless EC motor design. Part of the Bosch CORE system, the tool delivers up to three times longer life, 30 percent more power, 65 percent longer run time and integrated electronics for superior control and motor life.

• Thanks to the tool’s EC motor, the MXH180 boasts best-in-class run time. Users also benefit from lighter weight, reduced vibration, minimal maintenance and extended motor life. The MXH180

work surface from any scratches or dents.

• The easy-opening magazine latch and bottom loading make inserting staples easy — no pusher rod to lose or bend. The unique latch mechanism makes changing staples a breeze and the integrated color coding ensures you buy the right staples for the gun every time.

• It shoots the same standard T50 staples as other models. The release shoots up to a ½" staple.

is compatible with all generations of Bosch lithium-ion Fat and Slim Pack 18-volt batteries.

• With a variable speed ranging from 8,000 to 20,000 oscillations per minute, the tool can easily perform a wide range of applications, including cutting, sanding, grinding and scraping.

• It includes the convenient Bosch toolless oscillating accessory change lever, making it easier and faster than ever to attach or reposition the wide array of accessories.

• Dickies announced a licensing agreement with JS Products to manufacture Dickies-branded tool bags and related accessories as well as a broad assortment of licensed painting tool bags, aprons and tool storage items.

• The core pieces of Dickies-branded tool items will include utility pouches, rigs and aprons, belt systems, tool holsters, bucket organizers, general utility sheaths and accessories, work totes, tool bags and more.

rolls, belt

• The licensed painter line will offer work bags and totes, paint accessory pouches and aprons, paint brush and tool rolls, belt systems, bucket organizers and other soft-sided painting tool accessories.

• The HomeRight Deck Pro with Gap Wheel allows you to stain the surface of the deck boards and the gap between the boards in one pass. The spring-loaded wheel drops ¾"down in between the boards to stain board edges while the stain pad is staining the top of the deck boards.

• The non-sticking Gap Wheel easily moves with the applicator and climbs in and out of the board gaps without snagging or getting stuck. The Stain Applicator Pad is comprised of ¼"

bucket organizers

• Some of the key features include: rugged canvas and poly construction; web pocket reinforcement; pleated pockets for a clean look and extra storage; innovative designs; cargo-type pockets for increased storage capabilities; reinforced pocket and pouch corners using rivets and bar tacks; and reinforced wear points.

flocked neoprene material and can hold up to 3 ounces of stain—this is nearly 300% more than a brush or foam applicator.

• The flocked pad has approximately 18,000 fibers per square inch, which works stain thoroughly into the wood without streaking.

• The comfort grip pivoting handle can be attached to an extension pole for added reach while staining. The adjustable pivoting handle allows the handle to bend down and fit under railings.

BEVEL™ STEEL TOE BOOT

• Features tumbled full-grain leather upper for long-lasting wear and durability.

• Lightweight EVA molded midsole provides comfort and flexibility.

• All DeWalt-licensed safety toe footwear exceeds ASTM F2413-05 I/75 and C/75 standards, offering the highest available strength for impact and compression.

• Designed with slip-resistant outsole compounds and are Mark II tested to reduce the risk of slips and falls in the workplace.

• Is filled with 100% bamboo charcoal and naturally absorbs odors, bacteria, allergens and harmful pollutants and dehumidifies to prevent mold, mildew and excess moisture.

• It is fragrance-free, eco-friendly, nontoxic, rejuvenates in sunlight and lasts for two years.

• After a month odors such as smoke, pet and mildew will be completely neutralized.

• Comes in three sizes for every room in the home.

Moso Natural www.mosonatural.com 877-322-6911

• The new HL27 features a unique, easyto-use Light Output Control Wheel. Easily adjust the light for whatever task you’re doing. The wheel is located on the front of the light, behind the oversized power switch, making it easy to turn the light on and off, and adjust the brightness even in the dark.

• An expandable Z-Cord provides power from the battery pack. It’s

built into the adjustable headbands to provide comfort and reduce possibility of snagging.

• Patented Pure Beam™ Focusing Optic system lets user adjust light from a Bulls-Eye spot beam that projects a long distance or into Ultra View Flood mode, with the broadest, most consistent beam available in a headlamp.

The Hardware Conference Set to Celebrate MILESTONE

KEY

This year’s Hardware Conference, scheduled for September 6-8 in Marco Island, Fla., will be a landmark event, as the industry’s largest gathering of independent retailers will be celebrating its 25th anniversary. Tom and Dale Chasteen have been putting on The Hardware Conference since 1988, and they will be pulling out all the stops to ensure everyone has a memorable experience.

THE HARDWARE CONFERENCE IS open to any independent retailer, regardless of wholesaler affiliation.

Ace, Do it Best, Orgill and True Value all support the Conference, as do the

CLICK TO WATCH A SHORT VIDEO ABOUT THIS YEAR’S HARDWARE CONFERENCE.

Join your fellow dealers in beautiful Marco Island, Fla.

75 or so vendors who participate with tabletop exhibits.

This year’s event will feature a key enhancement. A new recognition program is being developed for

HARDWARE CONFERENCE

2013—the Beacon Awards, which will be co-sponsored by The Hardware Conference and The Hardware Connection with special sponsorship support from Apex Tool Group.

In addition to awards honoring community service and lifetime achievement, the Beacon Awards will recognize the industry’s best new stores. The Beacon Awards banquet will be held Friday evening, September 6, at the Marriott Marco Island.

Winners of the Lifetime Achievement and New Store awards will receive allexpense paid trips for two to the 2013 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.

Hurry—the nomination deadline for the Lifetime Achievement and Best New Store Awards is June 15. Nomination materials should be emailed to Tom Delph, Beacon Awards program director, at tdelph@thehardwareconnection.com.

“I’ve lost track of how many conferences I’ve attended, but I keep coming back because I learn something every year. The relationships that are built at the Hardware Conference are long lasting,”

This year’s banquet on Friday evening will feature an enhanced awards presentation with the development of the Beacon Awards program.

says Rick Heuser of Handyman Hardware in St. Cloud, Fla. “Markets are so rushed; I don’t have the time to study each booth thoroughly. The Hardware Conference gives me that time. I’ve already got the 2013 conference marked down on my calendar.”

For more information on attending the 2013 Hardware Conference, call Tom or Dale at (305) 853-0049 or go to www.thehardwareconference.com. ■

Key vendors participate in the event with tabletop exhibits.

Sponsored By:

Marquee Sponsors:

SCHEDULE OF EVENTS

Wednesday, September 4

» Vendor Only Meeting - 10:00 A.M. - 3:00 P.M.

Thursday, September 5

» Technology Forum - Dealers - 8:00 A.M. - 5:00 P.M.

» Vendor and Dealer Registration - 9:00 A.M. - 12:00 P.M.

» Vendor Set Up - 9:00 A.M. - 4:00 P.M.

» Vendor and Dealer Registration - 1:30 P.M. - 4:00 P.M.

» Hardlines Digest Meeting - 4:30 P.M. - 6:00 P.M.

» All Industry Cocktail Reception - 6:30 P.M. - 8:30 P.M.

Friday, September 6

» Vendor Set Up - 8:00 A.M. - 12:00 P.M.

» Vendor and Dealer Registration - 8:00 A.M. - 6:00 P.M.

» Fred Pryor & Associates Training - 8:30 A.M. - 11:00 A.M.

» Ace Hardware Dealer Meeting/Luncheon - 11:30 A.M. - 1:00 P.M.

» True Value Dealer Meeting/Luncheon - 11:30 A.M. - 1:30 P.M.

» Do it Best Dealer Meeting/Luncheon - 11:30 A.M. - 1:30 P.M.

» Fred Pryor & Associates Training - 2:00 P.M. - 4:15 P.M.

» Dealer Seminar - Vendors Welcome - 4:30 P.M - 5:30 P.M.

» Cocktail Party - 6:00 P.M. - 7:15 P.M.

» Beacon Awards Buffet Banquet - 7:15 PM - 9:30 PM

» Hospitality Suite Open - 9:30 P.M. - 11:30 P.M.

Saturday, September 7

» Breakfast - 7:00 A.M. - 8:00 A.M.

» Exhibit Areas Open - 8:15 A.M. - 10:00 A.M.

» Open Dialogue - 10:15 A.M. - 11:30 A.M.

» Krylon Golf Outing - 12:00 P.M. - 5:45 P.M.

» Wooster Brush - Day at the Beach - 12:30 P.M. - 4:30 P.M.

» Hospitality Suite Open - 1:00 P.M. - 5:30 P.M.

» Minwax Shelling Trip - 2:30 P.M. - 4:30 P.M.

» Cocktail Party - 6:15 P.M. - 7:15 P.M.

» Kids’ (ages 4-12) Night Out - 6:15 P.M. - 10:30 P.M.

» Dinner Party and Auction - 7:15 P.M. - 10:30 P.M.

» Hospitality Suite Open - 10:30 P.M. - 11:45 P.M.

Sunday, September 8

» Breakfast - 7:00 A.M. - 8:00 A.M.

» Exhibit Areas Open - 8:15 A.M. - 10:00 A.M.

» Open Dialogue - 10:15 A.M. - 11:30 A.M.

» Closing Remarks - 11:30 A.M. - 12:00 P.M.

HARDLINES DIGEST

Cole’s Home Solutions in Millington, Tenn., attracts impulse sales with candy and drinks.

HGood Items SEEKING OUTImpulse

opefully the spring season has finally arrived at your store.

If you haven’t had time to browse Hardlines Digest in the past few weeks, then what follows is one of the more active topics that circulated among the members of the list.

IMPULSE ITEMS

ONE DISCUSSION THAT ALWAYS elicits lots of great comments is dealer suggestions for impulse items to sell at the checkout.

Preston Bullock of Jay’s Hardware in Wrens, Ga., started the ball rolling with his thoughts. “Recently got in some caramels from L. Frances Caramels and have sold 180 in two weeks! Three for 99 cents. Stake

solar lights look like they will be a hit again this year. We already sold some animal ones in this cold weather. Anyone else care to share their home run impulse items?”

Barbara Mills from Faulkton Hardware

Hank & Vet Supply in South Dakota had a number of ideas. “These days we are not just hardware stores, we are general merchandise with an emphasis on hardware. We have done well with the little ERTL® tractors and farm machinery on a two-foot display. Thread and craft items have done OK—those are niches rather than impulse.”

Mills adds, “We are starting to get interest in the fairy garden stuff.

Zettler Do it Best Hardware in Powell, Ohio, displays ERTL® farm vehicles and Thomas train accessories near the front.

Gnomes have been good as we have a lady in town with a backyard full of gnomes. Pop and candy have done better since we got a glassfront fridge. Blank cattle ear tags have been a surprising mover—the local fuel distributor has been using them as markers for propane or fuel tanks.”

hardlines digest

Gavins’ Ace in Fort Myers, Fla., has a spinner rack displaying greeting cards from Oatmeal Studios.

Lex Stevens of Back Bay Hardware in Boston provided a list of his best impulse products.

“In my store, the women tend to be practical and the men indulgent. We do well with travel size spot removers—particularly Wine Out—as well as small sizes of Goo Gone® and GOOP® adhesives. Clorox® Bleach Pens and Tide-To-Go sell well when they are being advertised on TV. Mr. Clean Magic Erasers are very popular. Because the buildings in our area are old, we always have a jar of three-to-two grounding adapters next to our signature capture pads.”

Stevens adds, “We have a large selec tion of LED flashlights. Women buy the smaller and less expensive ones, though they seem to be more concerned about quality. Men buy the expensive ones with all the bells and whistles. A good selling point for the $5 LEDs is they are cheap enough to keep several around the house. Because it is small and expensive, I keep the Simichrome polish on the front counter. I am amazed at how often it is bought with a comment,

‘Oh, yeah, I need some of that.’ I just love those $15 impulse sales.”

Dan Johnson of Dunstan Ace Hardware in Maine offered a few suggested products. “We sell Annie B’s caramels in a little red wagon at the counter and I scratch my head about how many we sell. A few years ago we picked up Steven M. Lewers cards of birds, fish and wildlife and tri-fold laminated animal ID cards. When I first bought these I was ridiculed by everyone, but we sell quite a few. We also sell items made in Maine and a series of cards from New Hampshire. Rope mats have been a big hit. We got in $8-$12 sunglasses—it’s still early but we have had interest. The floor display of Diamond reading glasses are doing well.”

Johnson adds, “I looked at the scarves at the show and may need to get them—the staff will think I have lost it. Has anyone done the bulk penny type candy? I saw the display at the Ace

Bailey’s True Value in Sanibel Island, Fla., has an endcap devoted to Fresh Wave cleaning products.

show. We go to local trade shows in our region looking for items. I came across small decorative tins with seeds in them that the vendor had displayed on a pastelpainted wood 2’ step stool. My step stool is now repainted and repurposed ready to sell seeds in tins.”

Melissa Brett from Welden Hardware in Connecticut also does well with caramels, plus some other items. “L. Frances Caramels do great but we have had to put a sign on them that reads ‘THESE NOT FREE’ as our older customer thought they were. Star Tron® gas additive is always floating in different places at our counter, as we sell and service power equipment. We make it weather/seasonal as well. Working Hands from O’Keefe’s in the winter and flashlights before and after a storm are good impulse items.”

Brett adds, “Near our front counter we display Yankee Candle Mystic Harbor jars, which the ladies love, and the husbands secretly sneak a sniff. We’ve done counter displays of the WD-40 mini, Goof Off stain removal and JB Weld epoxy products—they all went faster than they did in their regular departments. Every six to eight weeks we rotate counter

offerings, but a customer inevitably comes in saying, ‘There was a product right here on the counter last year, but I don’t remember the name of it.’”

Grant Leavitt of Marcus Lumber Company in Iowa had an idea that might work for many dealers. “Stylish safety glasses are popular for us. We have them set up right by the counter,” he says.

Amy Earls from Page Hardware & Appliance in Connecticut added her ideas to the discussion. “We also bought the scarves from Diamond Vision and are selling them three and four at a time. Grandma’s Secret Spot Remover went in a lot of stockings last Christmas and continues to sell well by the register. NiteIze gear ties and S-binders do well.”

She adds, “Our best seller used to be a squeezable frog keychain, but after it was discontinued we have been experimenting with alternative squishy animals like farm critters, caterpillars and angry bird knock-offs. Along with candy bars, we carry individual candies like FireBalls, Tootsie Pops and HERSHEY’S® Miniatures. Contractors buy them by the handful and parents have a hard time saying no to a child asking for a 15-cent Tootsie Pop.” n

John Fix started the Hardlines Digest in January 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 the Hardlines Digest. To read more or subscribe, head to www.hardlinesdigest.com.

CATEGORY REPORT

ELECTRICAL/LIGHTING TRENDS

Sales of Dimmer Switches (Independent Hardware Channel) 12 Months % Change vs. Year Ago

Dimmer Switches:

Dimmer Switches: Dollars

Source: Vista Information Services, div. of Epicor Software Corp.

Unit Sales Breakdown for Dimmer Switches

Total of 490 Items with Sales

Source: Vista Information Services,

Manufacturers and retailers use Vista’s retail POS and Consumer Panel data to better sell to their customers. Go to Source: Vista Information Services, div. of Epicor Software Corp.

ELECTRICAL/LIGHTING BUYING UPDATE

The 2007 Energy Independence and Security Act mandated the gradual phaseout of traditional incandescent bulbs as well as halogen PARs and select linear fluorescents, which waste much of their energy through heat loss.

Here is the timeline for phasing out incandescent, select linear fluorescent bulbs and halogen PARs:

• Jan. 1, 2012—100W can no longer be manufactured.

• July 14, 2012—Halogen PARs and select linear fluorescent bulbs can no longer be manufactured.

• Jan. 1, 2013—75W can no longer be manufactured.

• Jan. 1, 2014—60W and 40W can no longer be manufactured.

The dates refer to when manufacturers have to stop making these bulbs. Retailers can sell the old bulbs as long as they have stock.

According to Terry McGowan of the American Lighting Association (ALA), dealers and consumers will need to become more familiar with lumens, which is how light output is measured worldwide. For example, a 100-watt incandescent is rated for 1600-1700 lumens of light output depending upon the manufacturer and the rated life of the bulb. To get the same light output in one of the new CFLs or LEDs, find one with the same 1600 rated lumens. The lumen ratings are always printed on the bulb package.

Place energy-saving bulbs on an endcap to start educating consumers about their options as a result of the new energy standards taking effect from 2012-14.

Central True Value in Moncks Corner, S.C., displays a competitive assortment of light bulbs.

“This changeover can be confusing, especially to our customers. The industry wants everyone to look at lumens to compare light output, not watts. For bulbs there is no conversion formula for watts to lumens. For example, lumens for 60W can vary from 750 to 1049 and differ between brands,” says Jim Ertzman of South Hills True Value Home Center in Pittsburgh.

He add, “Legislation required the halogen PAR bulbs to become 33 percent more efficient. In order to do that and maintain the lumen output the industry had to redesign the halogen capsule in the par to use more expensive HIR technology. This is the reason the replacement halogen PARs are now a lot more expensive.” ■

ELECTRICAL/LIGHTING PRODUCTS

MOTION SENSOR LED PORCH LIGHT

• Motion sensor LED light for automatic illumination; indoor or outdoor use.

• Equipped with 6 LED panel for bright blue light; rotates to point beam as desired.

• Photocell technology prevents daylight activation. Features 25-foot detection range at 100-degree detection angle.

• 6-volt light powered by 4 C batteries (not included).

CABLE WRAPTOR®

• Expanded to now include four sizes to accommodate cable organization needs.

• From the mini Wraptor that carries up to 25 lbs. up to the XL Wraptor that carries as much as 150 lbs., there are many practical uses for this versatile product.

• Use it to organize, carry and store cables, hoses, rope, cords, tools, sports equipment, wire and more.

• It features large hanghole, easy to release trigger, “T” carrying handle, large teeth design, cable tie looping hole and stainless steel hinge.

Universal Dimmers

• State-of-the-art Universal Dimmers are engineered to provide optimal control of current and emerging incandescent, dimmable CFL and dimmable LED bulbs without sacrificing performance.

• Available in two distinctive styles, they feature an ON/OFF preset function that preserves the selected dimmer setting, smooth start-up, gentle-touch control, fluid slide movement for precise dimming and modern aesthetics.

• Newly designed SureSlide® model sports clean lines, sculpted controls and contemporary rocker switch. IllumaTech® model features traditional push button switch and attractive slide bar.

• Available in a host of colors, both devices fill the need for a single device that effectively controls all types of bulbs while helping save energy.

Mfg. Co.

• Turn the sun’s rays into a warm romantic glow each night with Solar Tea Lantern.

• Each hand-blown glass lantern is embedded with white, colored or mercury glass for a unique yet charming look and is equipped with a warm candlelight LED light for a natural and inviting glow.

• Colors include white, purple, mint, saffron and silver honey pot.

SMOOTHLINE® FLUSH-MOUNT WALL PLATE SYSTEM

• Cost-effective way to mount outlets and switches flush with the wall for the ultimate in clean lines and modern sophistication.

• Installs easily during construction using common drywall finishing methods and standard outlets and switches.

• Available in gloss white for one-gang to four-gang installations.

• Patent pending and UL-approved system meets electrical testing standards.

• The Benchmark Series 18W PAR38 with E26 and GU24 bases boasts the highest light output available to date of 1500 Lumens.

• Designed for general illumination in recessed light applications in residential and commercial lighting.

• Additional features include: no mercury, dimmable, instant on, no flicker and long life up to 22.8 years.

a growing community of thousands of independent

“I created Hardlines Digest in 1996 as a way for my fellow retailers to swap tips about the nitty-gritty of running an independent hardware store. Today, it’s grown to a community of thousands of independent hardware store owners just like you. I hope you’ll join today and start sharing your own expertise.”

John Fix Owner, Cornell’s

Hardware Eastchester, NY

By Fred Fischer

Understand the Real Cost of a POS System

If you are considering a new pointof-sale system, the big question is: How much is it going to cost? It is amazing how many potential customers want a price for the new system before even giving information about their business. It is just like when your customer asks “How much paint do I need to paint my living room?” when you do not know the dimensions.

Even with the dimensions, there is still a lot of information needed to get to the real answer, such as how many windows and doors, archways and closets? Much like selling paint, what quality do you want? It takes the same labor to put on the cheap paint as it does the high quality. You know the difference in how the two will cover, stay clean, wash and wear.

This brings up the most important point: why consider a POS system an expense when you should look at it as an investment. Some would say a POS system is an expense because every month

I have to write a check. Consider a different viewpoint—that a POS system is an investment to protect all the money you have invested in inventory.

When you look at a financial statement for your business, there are only two big numbers you have much control over: inventory and labor. There is very little that you can do to change all the other numbers such as insurance, taxes, utilities and office expenses. Manage your inventory and work smart. You can only do those two things if you have a good point-of-sale system.

Knowing what is selling and how much gross profit you are making, not how much money you take to the bank, are but a few of the advantages. Others include current pricing, profit by customer, having no invoices to file away, emailing invoices to customers to reduce postage cost and the list goes on. You make the decision to upgrade or buy a POS system. After talking with various vendors, it is decision time. Many times it is all about the price on the proposal and the monthly payment. This is the totally wrong way to look at this process. These are some things to consider when investigating a POS system: Are all the proposals equal? When you are considering various

proposals and payment options are they all providing what is best for your store location? You need to consider your staff’s time (labor) to set up and learn to use the system. What kind of support is being provided for you? Do they answer the phone or do you get voice mail?

Does the company come on-site to install the system or do you do it yourself? There is a cost involved with on-site installation, so that proposal will be more expensive. The advantage is the installer knows how to get the equipment up and running. Your whole staff can learn as the trainer is there to teach them how to use the software package.

If you do the installation, you do save money. However, do you want to be a hardware or lumber retailer or an IT person? Look at what is going to work best for you and determine the best use of your time and money.

What kind of equipment are they providing? What are the warranties and how long are they? How detailed are the descriptions of the equipment on the proposal? Is it just “Economy Scanner or Printer” or do they list make and model? Are they providing touchscreen computers or just typical desktops? Is the server really a server with RAID 0, 1 or 5 (the same data being written to multiple drives), or is the server just a computer they are calling a server?

What kind of scanners: pistol grip or Omni? Omni is more expensive, but you don’t have to make sure the barcode is perpendicular to the scanner image so it is faster at checkout. Does the credit card equipment support the new chip and pin (EMV) technology?

Is the networking equipment on the proposal business quality or home versions of routers, switches and wireless devices? You are running a business, processing credit cards and all your data is on your network—is it secure? You don’t want to use a $79 home router/access point in your store.

As you know from experience, better quality products, even though more expensive upfront, can be the better deal in the long haul. The same is true when purchasing a POS system. The proposal cost is one line item. Other costs include staff time for installing and learning to use the system, changing customer habits from the old to the new system and implementing new procedures. If you make the wrong decision, many of these costs will reoccur when you attempt to correct the bad first choice.

Shop around, ask questions and make sure what you choose in a POS system is a good fit for your business. n

Fred Fischer is president of Ganymede Technologies Corp. He can be reached at fred@j3pos.biz.

IN THE NEWS

NEW STORES:

■ Pleasants Hardware is opening its eighth store in Richmond, Va., in August.

■ Russ and Susan Theuring opened their third Ace Hardware store in Loveland, Ky.

■ Town and Country Farm & Hardware opened in Natchez, Miss., as a new format for the Central Network Retail Group.

■ Mark Hoffman has opened Sahuarita Ace Hardware in Sahuarita, Ariz.

■ Levee Lumber has opened a third location in Westport, Wash.

■ Fred Nichandros is opening his fourth Workbench True Value Hardware in Pleasanton, Calif., in August.

■ Seiffert Lumber has opened a new showroom in Davenport, Iowa.

■ Todd Jones has opened a new True Value store in Spring Valley, Minn., to replace one destroyed by fire two years ago.

■ Andrea Ridout, Jennifer Stuart and Zach Montgomery have opened Gecko Hardware in Dallas.

■ Moore Lumber and Ace Hardware has opened a new location in Pine, Colo., that formerly operated as Hutchinson Lumber.

■ Randy Yager and Kevin

Vanderground have opened Hebron True Value in Hebron, Ind.

■ TJ and Kami Comstock have opened a new Billings Hardware store in Billings, Mont.

■ Danny Williams opened Discount Dan’s Home Center in Sheffield, Ala.

■ Mervin Miller has opened Hillside Hardware in Fredericksburg, Ohio.

KUDOS TO:

■ Brent Burger, who owns five stores in Maine, was elected chairman of the board for True Value Hardware Co.

■ The Reynolds family is celebrating the 60th anniversary of Neighborhood Pro Hardware in Birmingham, Mich.

■ Brantford Home Hardware in Brantford, Ontario, was honored with Home Hardware’s 2012 Walter J. Hachborn Store of the Year Award.

■ Nelson Ace Hardware, owned by Bob Nelson in Barre, Vt., was named “Vermont Family Owned Small Business of the Year.”

■ Parkrose Ace Hardware held a grand reopening for its 50,000-squarefoot store in Portland, Ore., after undergoing a $500,000 remodel.

Parkrose Ace Hardware

■ Jed Riddell is celebrating the 100th anniversary of his business, Ricklin’s, in Narbeth, Pa.

■ Do it Best Corp. received the Leadership Award from Dale Carnegie Training. CEO Bob Taylor accepted the award on behalf of the company’s 123 recent graduates.

Hardware in Marshfield, Wis.

■ Matt Richert held a grand reopening after remodeling and tripling the size of his store, Richert Ace Lumber in Pleasanton, Calif.

■ Mark and Joe Jaconski held a grand reopening for an expanded Stanley’s Hardware in Philadelphia.

■ Altadena True Value, owned by the Orlandini family in Altadena, Calif., was named “Business of the Year” by local Chamber of Commerce.

■ Heuser Hardware is marking 90 years in business in Jeffersonville, Ind.

■ Hahn’s Ace held a grand reopening after moving to a new location in Medina, N.Y.

■ Dawson’s True Value, owned by Jim Dawson in Beverly, Mass., held a grand reopening celebration after undergoing extensive remodeling.

PEOPLE ON THE MOVE:

Do it Best receives Dale Carnegie Leadership Award

■ Paul Isakson of Amery True Value in Amery, Wis., was named local “Business Person of the Year.”

■ Phil Hiller is celebrating the 50th anniversary of Hiller’s True Value

■ John Hartmann will take over as the new president and CEO of True Value Hardware when Lyle Heidemann’s retirement takes effect at the end of May. Heidemann, who has led the co-op since 2005, will stay on in an advisory capacity until the end of 2013. Hartmann is the former CEO of Mitre 10, a New Zealand hardware cooperative, and he also spent eight years at The Home Depot and HD Supply.

Prows

■ Corbin Prows has joined Do it Best Corp. as retail program manager.

■ Arrow Fastener Company has named Roberto Izaguirre vice president-sales.

■ John Venhuizen was appointed president and CEO of Ace Hardware Corp., effective April 1. He assumed the CEO title upon the retirement of Ray Griffith.

WHOLESALERS IN THE NEWS:

■ True Value Hardware reported gross billings of $1.88 billion in 2012, up 1.1 percent from the prior year. The co-op reported 2012 earnings of $74.9 million, up 24.2 percent from 2011 and driven primarily by a litigation settlement gain. The co-op’s first quarter gross billings were down 0.9 percent to $444.3 million, with net margin for the quarter decreasing $7.7 million to $0.4 million.

■ Ace Hardware Corp. reported first quarter revenues of $923.2 million, up 1.7 percent from the prior year. Net income declined from $10.2 million to $4.4 million for the quarter.

OTHER NEWS:

■ Sears Hometown and Outlet Stores is introducing a “mini-

showroom” franchise opportunity that allows hardware and related store owners to insert a small showroom with top appliance brands into their existing store.

■ Hayward Lumber purchased T&H Building Supply in Redwood City, Calif.

■ S.W. Collins Co. has acquired Haskell Lumber of Lincoln, Maine.

■ Epicor Software Corp. has introduced a mobile version of Epicor Payment Exchange, a free downloadable app that allows retail customers to accept credit card payments wherever their customer is located.

■ Fisher Lumber, based in Garden Plain, Kan., has purchased two locations from Andale Lumber in Andale and Andover, Kan.

IN MEMORY:

■ John Izenbaard, who spent 75 years working at Hoekstra’s True Value Hardware in Kalamazoo, Mich., passed away at the age of 91. He started working for the business at the age of 16 in 1938 and even came in to work on the day he died.

GET THE FULL STORY:

■ Crazed man tries to cut off his arms at Home Depot store. Click here

JUNE

House-Hasson Hardware Summer Dealer Market

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

National Lawn & Garden Show

June 11-13, Crowne Plaza Chicago O’Hare Hotel, Chicago

PRO Group Inc. Group Merchandising Conference

June 17-19, Embassy Suites Downtown, Atlanta

JULY

United Hardware Fall & Christmas Buying Market

July 12-14, Minneapolis Convention Center, Minneapolis

West Coast Lumber & Building

Material Association Annual Summer Conference

July 18-19, Rancho Las Palmas Resort & Spa, Rancho Mirage, Calif.

AUGUST

Florida Hardware Fall Market

August 17-18, Doubletree Hotel & Convention Center, Orlando, Fla.

Handy Hardware Fall Market

August 15-17, Henry B. Gonzalez Convention Center, San Antonio

Independent Garden Center Show

August 20-22, Navy Pier, Chicago

Orgill Fall Dealer Market

August 22-24, Boston Convention and Exhibit Center, Boston

SEPTEMBER

Ace Hardware Fall Convention

September 10-12, Orange County Convention Center, Orlando, Fla.

Blish-Mize Fall Buying Market

September 13-14, Overland Park Convention Center, Overland Park, Kan.

Bostwick-Braun and Southern Hardware Fall Market

September 26-28, SeaGate Convention Center, Toledo, Ohio

ECi Connect Conference 2013

September 24-26, Hyatt Regency Dallas, Dallas

HDW Fall Dealer Market

September 6-7, Shreveport Convention Center, Shreveport, La.

Jensen Distribution Marketplace 2013

September 11-13, Spokane Convention Center, Spokane, Wash.

Monroe Hardware Fall Dealer Market

September 21-22, Greensboro Coliseum, Greensboro, N.C.

The Hardware Conference

September 6-8, Marco Island Marriott, Marco Island, Fla.

True Value Fall Market

September 20-22, McCormick Place, Chicago

Send calendar dates to chris@thehardwareconnection.com

Creating an e xC iting Shopping e nvironment

Owner Don Hoff Jr. knows how to create excitement in his store, Harleysville Ace Hardware in Harleysville, Pa., by taking great care in setting up interior and exterior displays that drive sales. When the warm weather finally hit this spring, the store’s outdoor garden area was filled with brightly colored flowers set up to entice those customers with a green thumb.

The salesfloor at Harleysville Ace is merchandised to attract female customers.

Paying careful attention to exterior merchandising ensures customers know that Harleysville Ace is the place to go for lawn and garden and outdoor living products.

Don Hoff Jr. (second from right) and his staff know how to get fired up for the Fourth of July holiday.

Harleysville Ace places a patriotic-colored dropbox by the front entrance so customers can place their used flags there so they can be properly retired.

Sea S onal Di S play S Drive Sale S

Spring is a hardware store’s best friend, especially when a store leverages people’s emotional attachment to this time of year.

This is exactly what John and Tammy Lovin of Sweetwater Farm and Garden, a FARM MART store in Robbinsville, N.C., have done.

“A 1953 John Deere tractor has been a centerpiece of the store for a number of years,” John Lovin says. “By incorporating the tractor with the seasonal items we want to promote, we are able

to offer nostalgia and hopefully encourage impulse purchases.”

He added, “Special displays help us create a customer-friendly atmosphere.” Lovin said he creates seasonal displays year-round and that they truly help move merchandise.

An endcap is used to promote products for chickens, such as waterers, feeders and poultry supplies. Around holiday time, when the store promotes toys, Lovin features an endcap with John Deere toys. “We try to promote toy sales during Christmas time,” he says.

“We find that seasonal displays truly help promote sales,” he adds. “When you have endcaps with special items featured, it helps us move merchandise, including items that don’t usually move, or items we don’t sell regularly.”

Adopting A green initiAtive

L.A. Reynolds Garden Showcase in Winston-Salem, N.C., takes back plant pots and trays so they can be recycled and used by others, part of an extensive green initiative.

In addition to selling organic and green-friendly products, co-owners Ken and Mike Long water all plants using natural rainwater, reuse and recycle pallets and cardboard, recycle toner cartridges, send some plant trays back to vendors for reuse and minimize the use of synthetic chemicals.

L.A. Reynolds Garden Showcase encourages customers to recycle pots.

Behind theNumbers

48%

Percentage of employees who say cash bonuses motivate them to refer job candidates.

Source: Careerbuilder

$231 Billion

1,200

Annual online retail spending in the United States, a figure that has more than doubled since 2007.

9

Number of states Amazon now collects sales taxes in, despite online sales of $61 billion last year.

Number of people who turned out for the April 6 grand opening celebration at Hebron True Value in Hebron, Ind.

27 Million

Number of shoplifters in the U.S., or about one in every 11 people, according to the National Association for Shoplifting Prevention. Also, 73% of adult shoplifters don’t plan to steal in advance.

300

Number of communities that have turned down big-box retailers in the past few years, according to the Institute for Local Self-Reliance.