Hardware Connection May/June 2015

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

Beacon Awards Director: Tom Delph tdelph@thehardwareconnection.com Contributing Writers: John Franklin, John Fix III, Doug Donaldson 91900 Overseas Highway | Tavernier, FL 33070 | www.thehardwareconnection.com

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

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com

Director of Vendor Programs: Diane Allen diane@thehardwareconnection.com 317-432-9177

By Chris Jensen

Expressing Appreciation to My Local Stores

My friends and family are used to me strongly urging them to buy their hardware products from local hardware stores. They know if they end up buying from a big box they best hide their purchase from me. It seems appropriate to show appreciation to the two local stores where I shop regularly, since both were in the news for good reasons. Six months ago I moved to a new house in Zionsville, Ind., and I’m fortunate to be one mile from Akard True Value. I had to be their best ice melt customer this past winter and let’s just say I know exactly where they keep the mouse traps, drain cleaner and ant spray.

Akard True Value is celebrating its 60th anniversary throughout the month of May. Steve Akard and his daughter, Leigh Ann, represent the second and third generations of the family to run the business, which underwent a complete remerchandising in 2012. What amazes me about Akard’s is how involved the store is in the community, sponsoring or supporting fundraisers for children’s leukemia, Humane Society, Lions Club, Special

Olympics, Boys & Girls Club, homeless veterans and many more on a near weekly basis. I’m proud to call Akard True Value my local hardware store.

My other favorite local store is Sullivan Do it Best Hardware & Garden on Keystone Avenue in Indianapolis. Even though it’s 13 miles away, I find myself shopping there regularly for plants, garden supplies and of course, free popcorn. I always do my Mother’s Day shopping at Wildflowers, which is an old house next door that Pat and Beth Sullivan converted to a gift shop.

Pat has been busy buying nine houses adjacent to his store so that he can double the size of his garden center to 60,000 square feet and expand his parking lot, with a total investment of $1.6 million. Here is one of the finest hardware stores I’ve ever visited saying it needs to get bigger and better if it wants to continue growing, which is a lesson for all to learn. Click here for more details.

Congratulations to Pat and Beth and their son, Eric, on raising the bar yet again. n

By Tom Chasteen

Are You Ready for Mayhem If or When It Strikes?

Most people in North America have been subjected to the Allstate Insurance television commercials depicting various scenarios when mayhem strikes. Most of these scenarios seem a little exaggerated, but I’m equally certain that Allstate’s claim department has been besieged with far more bizarre situations.

The mayhem I am referring to is far less dramatic but can have equally farreaching ramifications.

In my 40-year career I have been fortunate to have only had to deal with a few of these issues, such as burglaries after hours, one heart attack in the store, an ADA lawsuit, a couple of slip and falls, several hurricanes and a few shoplifters.

In each case I was completely unprepared to deal with the mayhem that followed. In two cases I had to hire my own attorney.

What follows are a few things I have learned over the years from personal experience and from the experiences of other retailers I know.

1. Have a plan/procedure—Mayhem rarely schedules an appointment and it has been my experience that calamity always occurs at the worst

possible time. So if you don’t have a plan or procedure, develop one.

2. Don’t file it away in a file cabinet someplace—Put it in a threering binder in a place that everyone knows where it is. Have a separate section for each type of problem, such as slip and falls, hazmat spills, shoplifters, store injuries and fire.

3. Make it easy to read with stepby-step instructions of what the staff is supposed to do—Do not assume anything. Common sense is not always so easy to rely upon when under pressure. The objective is to mitigate the damage, isolate the problem and make the best possible choices under the circumstances. Remember whatever you do or don’t do will probably be critiqued at some point later either by yourself, your employees or someone else like an attorney or government official.

4. The most important step is documentation—Make absolutely certain that you or your staff document everything you or they did. This should be a part of your procedure manual, which should include an incident report

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that allows space for step-by-step information to be added at the time of the incident. If you are involved in a lawsuit down the road you will be glad you took the time to document what you did because in six months you won’t remember things as clearly.

If you think I am being paranoid just ask another retailer who has had a problem. Better yet, allow me to share a story a retailer related to me that happened in his store.

A man and his five- or six-year old son comes into Z’s Hardware Store. As the father gets involved in his honey-do list for the weekend his son decides to entertain himself by climbing on a homemade gondola in the store. A store employee removes the child from the gondola and takes him over to his father and mentions he needs to watch his son. The father apologizes and scolds his son.

A few minutes later the little boy is climbing the same gondola again, and again an employee removes the boy and takes him to his father and asks the father a second time to watch his son. Again, the boy slips away from his father and is climbing on the same gondola a third time, only this time the employee is with another customer and doesn’t catch it.

The gondola falls over on the boy, who screams when he hits the floor.

The father rushes over and says, “It’s my fault. I only took my eyes off of him for a minute.” They lift the gondola off the boy, who is scared but seems unhurt. The father says, “This is my fault. I’m not suing anyone. I just want to take him to the hospital to make sure he is OK.” No one hears anything after that for six months.

Thankfully the store has a procedure manual and all of this is documented on their incident report and subsequently verified in the depositions that follow six months later when Z’s Hardware is being sued for negligence. Z’s Hardware has liability insurance with a 10 percent deductible.

After several rounds of depositions the insurance company decides against Z’s Hardware’s objection to settle the claim for a little over $100,000, costing Z’s Hardware $10,000 for the 10 percent insurance deductible.

To add insult to injury the insurance company doesn’t renew Z’s Hardware’s insurance policy. For Z’s Hardware this is personal—they have tried to run a very clean and honest hardware business for the past 45 years.

For the insurance company this is simply business. They felt the most expeditious and inexpensive thing to do was settle the claim and they also concluded Z’s Hardware was no longer a good risk and refused to continue to insure them.

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THE WAY I SEE IT

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There are several things to keep in mind here. Z’s Hardware paid out $10,000 for the insurance deductible and if the claim had exceeded the insurance limits Z’s Hardware would have been on the hook for everything above the insurance policy limits. The insurance company was well within their rights to settle the claim regardless of Z’s Hardware’s objections. The lessons I took away from this story were to make sure:

a. You understand the insurance policy terms, limits and conditions.

b. Make sure you do your best to keep a clean and orderly store.

c. Document everything you can when it comes to a situation that could become a potential lawsuit.

d. Make sure you communicate through one person, not several different people.

e. Eliminate as much conjecture and interpretation as possible with documentation.

f. When in doubt do the right thing. You will sleep better, regardless of the outcome.

I encourage you to not wait for mayhem to visit your business. Prepare for its arrival now because if or when it arrives, you won’t have any time to prepare.

Let me know what you think about this topic, from one retailer to another, at tom@thehardwarestore.com. ■

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And he’d do it again today. Because while many businesses were bracing for tougher times, Taylor’s bold move brought in new customers and increased business. “The STIHL customer is our type of customer, because they want quality and that’s what we sell,” says Taylor, who also appreciates STIHL’s support in differentiating his business from the competition, “The fact that STIHL is sold through independent servicing dealers is great, and the fact that STIHL products are not sold by mass merchants is even better.”

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Umber’s Do it Best Hardware in Fort Wayne, Ind., asked its Facebook followers to try and top this funny quote on their roadside sign. They offer a $5 gift card for all suggestions used.

Afrequent customer comes in to shop. While here he asks if we have any openings as his son needs a job. We tell him to send him in for an application and to do a math test here. The son comes a few days later, does the math test and takes the application home. He returns with it and hands it to one of my guys and says give this to the boss. My employee says “Hold on, you have to take a math test.” The son replies that he already took the test. My guy asks him who he gave it to, and the son says “Either the gimpy lady (my wife who was healing from ACL surgery) or the old guy in the back with the white hair (meaning me).” Then as he was leaving, he turns to my employee and says “Oh, tell them not to call before noon. I like to sleep in.” Wanna bet his son still doesn’t have a job?

Jim Ertzman

South Hills True Value Home Center Pittsburgh, Pa.

We had an employee go up on the roof to take a measurement. He took his boots off and put on sneakers. When he climbed back down, his boots were gone. We caught a customer on video stealing boots from right in front of the building. We put the vid- eo on Facebook and about 30 hours later, we had 17,000 to 18,000 views, which is pretty much the whole county. We caught the person who stole the boots and they were returned the next day.

Clark Porter

Junction Building Supply Dekalb Junction, N.Y.

Once a cashier got offended when a customer came in and asked for a bastard file.

Tom Meredith

Deer Park Ace Deer Park, Wash.

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How’s

Business?

MIDWEST

Sales and customer counts so far in 2015?

We’re up at least 10 percent ahead of last year. Oddly enough, I think it has to do with fuel prices dropping. People seem to have considerably more spending cash to do things around the house.

Best niche categories?

As odd as it might sound, model railroads. We’ve had that niche for 15 years. A hobby shop across the street closed, so we saw an opportunity to sell these products.

How do you attract female and mature shoppers?

We make sure to provide them high-quality service. A lot of females come to the store because of our large

housewares selection. We have a whole range of housewares merchandise, which makes up 10 to 15 percent of our business. Some of the best-selling housewares products are coffeemakers, toasters and mixers.

New initiatives planned for 2015?

There’s nothing new planned, just to keep going strong on customer service.

Jeff Hall

John Hall’s True Value Goshen, Ind.

NORTHEAST

Sales and customer counts so far in 2015?

We started slow this year and now are doing very well. We’re looking

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How’s Business?

at a modest 3 to 5 percent increase by year’s end. When nice weather finally broke, everyone started showing up. The sales trend was definitely weather related.

Best niche categories?

We have a couple of niches that are doing well: birding and clothing. We also have a café in the store that’s about 1,000 square feet in our 60,000-square-foot store. The café has tables and we serve coffee, soups and sandwiches. We also have a successful John Deere franchise.

How do you attract female and mature shoppers?

We have a gift area, which features decorative pieces, lighting, frames and candles. We also provide services that cater toward those groups. We offer floor assistance and carry items to the car and help assemble, too. We also have a Ladies Night coming up in November. That will draw close to 1,000 ladies and kick off the holiday season. We invite 30 to 40 vendors to display their products.

How’s Business?

responded really well. We’re in a good spot, between a Lowe’s and a Home Depot. A lot of people don’t want to get on the busy roads to go to those stores. There’s also a large island nearby and we’re the first stop, so we get business from there, too. We have 7,500 retail square feet, 2,000 square feet for lawn and garden and another 750 square feet under a porch outside.

How do you attract female and mature shoppers?

A section of the store is dedicated to selling local goods. We also put local artists up on the wall. Women do seem to like that section of the store. Also, we have a condo association just across the street, so we have a lot of older customers, too. They really appreciate having knowledgeable employees.

New initiatives planned for 2015?

Everything we do right now is new. We’re doing the recommended Ace advertising. We’re planning some

events such as pet adoptions. And because we’re next to a military base, we’ll do a military discount day. There’s an art and design college nearby, so we’ll also do a paint sale just for students. We’re testing the waters with different events to see what works and what doesn’t.

David Bowles

Southside Ace Hardware of Savannah Savannah, Ga.

SOUTHWEST

Sales and customer counts so far in 2015?

The fi rst quarter was slow, but we’re picking up in the second quarter. I attribute weather to the slowness. The winter this year lasted longer. We’re still down for the year a little bit, but we anticipate that we will be even or ahead of last year in the end.

Best niche categories?

Whole

F

and pers

Lumber and building materials, which is probably about 40 to 50 percent of our business. We do well in plumbing. We have about 55 percent contractor business. We did a remodel in 2013 and that has helped.

How do you attract female and mature shoppers?

We have a loyalty program, and a lot of our staff is female. Our paint promotions also bring in women customers. Every month, we have some sort of paint sale, such as buy one, get five bucks off. We also have demos of paint products and applications. Just a couple of weeks ago we had a pancake breakfast for our pro contractors.

New initiatives planned for 2015?

We want to continue to grow the business and reach out to customers. We do 10 circulars a year, along with Facebook and radio. Our loyalty program has nearly 3,800 people in it, so we want to keep expanding that.

How’s Business?

WEST

Sales and customer counts so far in 2015?

Amazing. The most recent report shows we are up 9 to 11 percent. We’ve gone crazy selling soils.

Best niche categories?

Paint is our number one category. Soils and plants are also big. We promote those niches with advertising in local newspapers every other week.

New initiatives planned for 2015?

Just two weeks ago we started using a new app that gives customers a $5

coupon as they drive by an Ace. The app also alerts you to Ace sales. We are also bringing in LED lights and had a massive reset throughout store.

From Tom’s Shop

HARDWARE PRODUCTS REVIEW

Spring is a great time to establish ourselves as the place to go when people need help with their projects. Part of that process is making our customers aware of new products that will help them do their jobs better,

PRODUCT #1: TOUCH ‘N FOAM

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By Tom Chasteen

quicker and easier.

In my column, From Tom’s Shop, we highlight new products that we have tried firsthand and that have real sales potential in a retail hardware store, home center or lumberyard.

Touch ‘n Foam® has been a solid seller in our stores for some time. The adhesive qualities of their Heavy Duty Construction Adhesive and Subfloor Construction Adhesive in the “Builders Series” is without question one of the best I have ever tried.

Several of our testers wanted to see what it would take to separate two pieces of lumber glued together with both products. After the first 10 minutes of trying to break the lumber apart it became a test of wills for our testers to do whatever was necessary to break the lumber apart. They were using ¾ CDX plywood and what they found is the wood came apart before the adhesive did.

But that is only one part of the story. Touch ‘n Foam has also developed a reusable 46” long metal barrel applicator that eliminates the need to bend over to apply the adhesive to floor joists or get a ladder to apply a bead to framing eight feet in the air. The metal applicator also comes with a guide so the user doesn’t wander all over the place trying to apply the foam adhesive to the edge of the framing.

If your contractors are looking to save both time and money, then they can do both with the Builders Series Touch ’n Foam products. One can of the Heavy Duty Construction Adhesive will cover the same area as ten adhesive caulking tubes and the Subfloor Construction Adhesive will cover the same area as ten adhesive caulking tubes. The additional time savings of using the 46” long metal barrel applicator makes the Touch ‘n Foam Builders Series of adhesives a no brainer for wood-frame construction.

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The Heavy Duty Construction Adhesive also bonds to pressuretreated lumber, concrete, steel, aluminum and PVC. The Subfloor Construction Adhesive bonds to treated lumber, wet plywood and even frozen lumber.

For more information click on this video link.

Shop-Vac has come out with a line of stainless steel waste cans for home, commercial kitchens and garages. They range from the smallest, an 11” diameter fourgallon unit perfect for a home office, to a 16” diameter 20-gallon waste can for more commercial uses such as kitchens, food preparation and garages.

Each size comes with the ability to have an open lid configuration, solid lid, spring lid or flipper lid configuration as well as bottom base rings to prevent scratching or castor bottom bases to allow for easy movement.

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PRODUCT #3: SAVAGE GRIPLINE TAPE SWANSON TOOL

on this link to see how you can extend the lineup of Shop-Vac products in your store for your loyal Shop-Vac customers.

Swanson Tool has come out with a unique measuring tape called the Savage™ GripLine and it is the first measuring tape any of our testers have ever used that could be used to measure from a round surface. The unique tip at the end of the measuring tape allows it to hold on to 2” diameter pipe or conduit and the measurement can be read from the top or the back of the blade.

The Savage GripLine also comes with a magnetic tip as well, which our testers all agreed was a nice feature. The 1-1/8” heavy-duty blade easily allows the tape to be extended over eight feet. However, the ability for the tip of the tape to hold onto a 2” round pipe really sets the Swanson tape apart from the others on the market and will make it a favorite of electricians and plumbers for sure. Check it out on video here.

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Consumer Trends

Understanding

Do you know who your best customers are? Better yet, do you know who your best customers are under the age of 32? Chances are they approach shopping in your store differently than your best customers over the age of 65.

The internet is rapidly changing how consumers shop for hardware and home improvement products, so it is important to stay on top of consumer trends. Read on to gain insights into understanding today’s consumer.

defining The generaTions

Millennials, those born between 1982 and 2004, represent 80 million consumers with annual spending power approaching $1 trillion. Ignore them at your peril.

This year the millennial generation is projected to surpass the baby boom generation as the nation’s largest living generation, according to the population projections from the U.S. Census Bureau. Millennials are projected to number 75.3

By Chris Jensen

Today’s Consumer

Understanding the generational differences among your customers can go a long way toward success.

million, surpassing the projected 74.9 million boomers (ages 54-71). The Gen X population (ages 33-53) is projected to outnumber the boomers by 2028.

“While it is important to identify and understand the differences across generations, it is equally, if not more important, to understand their similarities,” said Jim Robisch, senior partner at The Farnsworth Group, who delivered a presentation at the recent National Hardware Show on “Generational Buying Patterns in the Home Improvement Industry.”

Robisch shared research data from The Farnsworth Group that outlined those similarities and differences across the generations.

Price/cost is driving store selection across all generations, Robisch pointed out, but boomers are

slightly less price driven. Millennials are very price conscious, seeking the lowest price, while Gen-Xers are motivated by competitive prices.

Millennials are more influenced by service than Gen X or boomers and more interested in seeking out quality products, while convenience is slightly more important to Gen Xers, according to Robisch.

Robisch shared how the different generations determine whether a store has good prices. For millennials the top factors are shelf prices (50%) and check online (46), while Gen Xers prefer to check online (46%) and look at advertising (36%) and boomers rely almost equally on previous shopping (38%), advertising (36%) and check online (35%).

So how do you reach the different generations? Millennials look at direct mail (51%), circulars (47%) and email (42%), while boomers are much more inclined to use circulars (61%) followed by newspaper ads (26%), according to Farnsworth Group data. Gen-Xers, on the other hand, use circulars (56%), direct mail (30%) and email (30%).

Sixteen percent of millennials are using social media sites as a form of advertising, compared to 10 percent of Gen-Xers and 7 percent of boomers. “You have to make sure you’re still balancing the media you use,” Robisch advised.

All generations are doing a lot of online research and shopping for hardware and home improvement products, with millennials much more likely to

shop or research for hardware products at least once a week, Robisch said. “All generations are purchasing hardware online, yet 40 percent of independent retailers still don’t understand that this is an emerging phenomenon,” he said.

Two other factors are impacting the hardware purchasing patterns of millennials: many are broke due to high student loan and credit card debt, and they are getting married and buying houses later in life. Those who live in apartments definitely have less need for hardware products.

Four in 10 millennials say they are “overwhelmed” by their debt, which is nearly double the number of baby boomers who feel that way, according to a Wells Fargo survey. They would also say that their parents’ generation messed up the housing market for them and made it harder and less attractive to own a home, but attitudes have a way of changing as one ages.

It is hard to separate millennials from the technology devices they are

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Consumer Trends

seemingly on 24/7, but hardware retailers are well-advised to make sure their websites are mobile-optimized (easy to read on a smartphone). Also be aware that friend recommendations (garnered via social media) go a long way in influencing shopping decisions.

Robisch summarized the defining characteristics of the three generations in this manner:

Millennials—Price conscious, value seekers, hardware store shoppers, most frequent online shoppers and purchasers, most active with social media.

Gen-X—Price driven (competitive prices), value convenience, need project information, strong online shoppers and purchasers, looking for “sale” prices, active with social media.

Boomers—Least price driven, seek out available and knowledgeable employees, want wide selection of products, need project information, heavy ad users.

Marketing consultant and small business owner Caron Beesley notes, “Seniors and baby boomers generally buy what everyone else buys. But they tend to take more time to research and plan what and how they spend their money. As a business owner, this means earning their trust. And one of the best tools in your marketing toolkit for achieving this is to perfect your customer service—satisfaction comes first, but loyalty is earned and in the long term counts for much more.”

Retail experts Rich Kizer and Georganne Bender offer the following

tips on how to more effectively sell to aging baby boomers:

• Place product at more easily reachable heights.

• Pump up the type size used on signing, brochures, newsletters and other POP materials.

• Install brighter lighting.

• Merchandise your store so product adjacencies make sense.

• Look for spots on the sales floor to add a few benches.

• Offer lots of free product testing and demonstrations.

reaChing The affLuenT femaLe markeT

Marketing to women makes sense, as they initiate 80 percent of all d-i-y projects. What makes even more sense is to market to affluent, older women.

One huge, affluent segment that wields more spending clout than any other is baby-boomer women. These women represent a portion of the buying public no marketer can afford to ignore. With successful careers, investments made during the “boom” years, and inheritances from parents or husbands, they are

Source: The Farnsworth Group

Consumer Trends

more financially empowered than any previous generation of women, according to Mary Brown and Carol Orsborn in “Marketing to the Ultimate Power Consumer—The Baby-Boomer Woman.”

American women over the age of 50 are the healthiest, wealthiest and most active generation of women in history. Senior women age 50 and older control net worth of $19 trillion and own more than three-fourths of the nation’s financial wealth, according to MassMutual Financial Group.

The 55- to 75-year-old female has seen her role change from homemaker to purchaser of security, convenience and luxury items, notes Barbara Kleger, president of 55+ Consulting.

Affluent female boomers are very particular about their houses, but they are not much on heavy DIY activity. They are willing and able to pay a retailer or a trusted service provider to repair, maintain, deliver and install products. Above all, they are seeking high-quality products that will last and items that are easy to use and maintain.

Wealthy boomer women are the marquee players in our country’s culture and commerce. They are educated, have a high income and make 95 percent of the purchase decisions for their households, according to Karen Vogel, co-founder of The Women’s Congress.

Lutz Ace Hardware in Lutz, Fla., has discovered how lucrative this demographic can be. The store features a

Bath vignettes at Park Supply in Huntsville, Ala., illustrate how to accommodate the needs of elderly and handicapped customers.

1,500-square-foot E.L.L.A. Boutique, a trendy gift shop operated by Tina and Andrea Andrews, whose husbands Scott and Tim oversee the hardware side of the business.

The boutique store-within-a-store is a true labor of love and it has generated stronger than expected sales due to community involvement, savvy social media and dedication to proper product selection for their market.

“Everyone that walks in (the boutique) for the first time says ‘I never knew this was here. This is beautiful. I’m going to need a gift,’” says Andrea. “People come into the gift shop just to waste time because it’s so pretty.”

“The more you can get the women in the gift shop the more you can get them to see the other stuff we have in the hardware store,” adds Scott.

Sheldon Ace Hardware in Elk Grove, Calif., features a nice housewares department, including canning supplies. “We stock some bric-a-brac type products that bring in women. Also, we have greeting cards that the older ladies enjoy,” says Manager Claudette Shade.

Lutz Ace Hardware in Lutz, Fla., features a large gift shop boutique that targets women.

markeTing To hispaniCs

Hispanics are projected to represent 53 percent of the U.S. population by the year 2020, and 70 percent of Hispanics are under the age of 40, according to MediaPost, as Hispanics comprise 21 percent of the millennial generation in the United States.

Hispanic and Latino customers appreciate retailers who have bilingual employees and bilingual signage. However, an even better way to reach them is to provide online content in both Spanish and English. Fifty-six percent of Hispanics that are not online cite a lack of Spanish content as the main reason why they are not using the internet, according to Google.

The State of the Hispanic Consumer: The Hispanic Market Imperative, a study by Nielsen, estimates that Latinos currently have buying power of $1.5 trillion.

“The Hispanic community in the United States is large and growing, and businesses must make strides to understand and engage these consumers,” said Susan Whiting, vice chair of Nielsen. “Due to the general youth of this segment, family focus, strong culture and prevalent

Spanish-language use, Hispanic consumers are impacting all areas of work and play and helping to redefine American culture in the 21st century.”

Looking more closely at Hispanics’ purchasing behaviors, The Hispanic Market Imperative reveals that:

• Technology and media use do not mirror the general market, but have distinct patterns due to language, culture and ownership dynamics. For example, Hispanics spend 68 percent more time watching videos on the internet and 20 percent more time watching videos on their mobile phones compared to non-Hispanic whites.

• Hispanics are the largest immigrant group to exhibit significant culture sustainability, with 90 percent of Hispanic parents wanting their children to speak Spanish but also be fluent in English.

• Latinos make fewer shopping trips per household than non-Hispanics, and spend more per trip.

When Hispanics go shopping they often bring the whole family, so when planning special events be sure to include activities to engage all age groups. Hispanic women are the driving force behind many purchases, but they are often torn between two cultures and it takes skill to craft a marketing message that resonates with them.

Getting to know your customers, one by one, remains the best strategy for marketing success. n

TheWalker family

spent 38 years building a successful business, Discount Building Supply in Guntersville, Ala. It took about 38 seconds for a tornado to destroy it.

A major tornado tore through Guntersville on April 27, 2011, leaving behind a devastating path of destruction in its wake. Luckily it hit an hour before the store opened, or there might have been serious injuries to customers or employees.

“We had four or five employees across the street when it struck at 6 a.m., but no one was in the store yet,” explains President Brian Walker. “I pulled up shortly after and found destruction everywhere. It was heart-breaking to see.”

Disasterstrikes Rebuilding After

The flooring shed was completely gone. Parts of the store were found a half-mile away.

“It tore the roof off the main building and then we got heavy rain, so we had some flooding in the salesfloor,” recalls Brian. “Whole pallets of merchandise were flooded and not a lot was salvageable.”

It was time to spring into action. “We put an emergency plan into place and we all started working seven days a week,” Brian says. Their wholesaler, HouseHasson Hardware, sent generators, water and lots of supplies—18 tractor trailers loaded with products, which enabled

Upper: Dominant assortments are displayed in core categories such as lawn and garden.

Lower: Discount Building Supply gets an even split of sales from homeowners and contractors.

them to keep selling uninterrupted. Fifteen trailers filled with debris were hauled off to the salvage yard.

“We weren’t insured enough to cover everything, but were insured enough to continue,” Brian admits. “We had been wanting to do something different with the store, but the tornado made sure we had to do something just to stay in business.”

He definitely pays more attention to his insurance coverage these days, making sure the loss of income component covers them for a year instead of two months. “We have a generator installed now and have a detailed contingency plan in place if something else

Dealer Profile

A tornado left a path of destruction across Discount Building Supply’s four-acre location in April 2011.

happens,” Brian says. “We’re much more prepared.”

rebuilDing a business

Discount Building Supply was started in 1973 by Robert and Caroline Walker. Both are still involved in the business, but they have turned over the day-today operations to son Brian. Brian’s wife, Wendy, and their son, Mitchell, also work in the business.

“We have a lot of loyal customers who have supported us through the years, so we knew we had to keep things going for them and for our 20 employees,” says Robert.

The Walkers held a grand reopening for the new store on June 8, 2012, less than 10 months after the tornado tested their faith and their resolve.

“House-Hasson really stepped up with the planning to help us rebuild. They helped us with endcaps, signage and planograms,” says Brian. Together

they came up with a detailed merchandising plan for the new store that would turn Discount Building Supply into a true destination for hardware and LBM products.

The new store now features a 25,500-square-foot sales floor, a big jump from 6,000 square feet before. Outdoor living, sporting goods and pool supplies were added as new categories and tailgating items and paint were expanded. The store is now stronger in electrical and plumbing and offers custom design with kitchen cabinets. They expanded into dominant fasteners in the marine/boat category.

“We went from a contractor yard to a full home center. We used to get 70 percent of sales from pros, but now it’s an even 50-50 split and we’re attracting a lot more women and families,” says Brian, who adds that sales are up nearly 15 percent year to date.

“We’re getting new customers that never shopped us before because they thought we were just a mom and pop lumberyard. Our store has much better curb appeal now,” Brian says.

Two large drive-thru lumber sheds are all under roof, plus 20,000 square feet of warehouse space. New energy-efficient

Dealer Profile

Left: Robert and Caroline Walker, who started the business in 1973, have turned over operational control to son Brian, who gets help from wife Wendy and son Mitchell.

Right Upper: The 25,500-square-foot salesfloor is designed to appeal to pros and d-i-yers.

Right Lower: When customers first walk in they see a large selection of clothing.

lighting was installed, so the entire store pulls 100 amps but at great savings.

Brian, who is active in prison ministry, finds there is a silver lining in the cloud that threatened to overwhelm them in the storm’s aftermath. “We had a real bad day when the storm hit, but we’ve rebounded in a big way. We sure don’t take anything for granted,” he says. n

By Chris Jensen

Belle Hardware

Baltimore Heal Helps

WSecond graders from a local elementary school brought over a banner showing their support for the store.

hen your business is in imminent danger and 38 years of hard work threatens to vanish before your eyes, do you know how you would react? Is there a contingency plan for that? Luckily for Janice McCulley, her customers had her back.

McCulley, who has owned and operated Belle Hardware in the Bolton Hill neighborhood of Baltimore for the past 38 years, found herself and her business in the flash point of a national news event. Crowds that were protesting the death of a black man, Freddie Gray, who died while in police custody, soon turned into roving bands of looters looking for opportunity.

Six blocks away, they found Belle Hardware, a 1,700-square-foot Do it Best hardware store located in a strip center with a small grocery, laundromat and drug store. McCulley had taken care of her neighbors for 38 years, and now it was time for them to repay the favor.

It was Monday, April 30, the start of a long week where emotions bounced like a teeter-toter, back and forth between tears of anger and of joy. McCulley saw the full range of human possibilities, from despicable destructive actions to heartwarming selflessness.

McCulley was in the store around 4 p.m. that Monday when the police came through the area and ordered everyone to get out for their own safety. She reluctantly did so, locking up as she took one last look at the business she had spent a lifetime building.

The store’s alarm company called McCulley at 6 p.m. to say the perimeter had been breached. She called her son, Mickey Fried, but he was in North Carolina and not able to offer immediate help. She rushed to the store, afraid of what she would see.

Standing in front of Belle Hardware were a dozen neighbors, long-time customers, who had started boarding up the store’s windows. The glass front door and

Belle Hardware

window were smashed, but the looters were scared off before they could do any other damage. The drug store was not so lucky—it was completely ransacked.

Later that night, vandals were able to poke a hole through the laundromat and enter Belle Hardware, where they cleaned out the power tool section and stole a handful of other items. McCulley saw that when she arrived the next morning, but she also saw more neighbors who had arrived to help clean up.

“I was angry at first. Now I’m disgusted,” McCulley said the next day in an interview with a local TV station. What kept her going was knowing her neighbors needed her store as much as she needed them, as together they needed to sweep away the remnants of a disturbing event that threatened to destroy their community.

Belle Hardware opened up Tuesday morning, as customers dodged broken glass to buy the gloves, brooms and trash bags they needed to clean up the neighborhood. McCulley insisted on selling these items at cost, telling her customers, “If it wasn’t for you guys our business wouldn’t be here.”

Fried returned to help out and he said Tuesday was a tough day because they knew people from the other shops were hurting from their losses. Wednesday brought a surprise visitor: the principal of a local elementary school, who was showing a group of fifth graders that order was being

Janice McCulley (right) and her son Mickey Fried (second from left), are shown with their Do it Best rep after getting $500 of products from Baltimore-based DAP Products.

Coverage of Belle Hardware:

• Esquire: Inside the Baltimore Hardware Store That’s Helping Residents Rebuild

• WBAL-TV:

• NPR

restored to the neighborhood after school was forced to close the previous day.

“He was surprised to see our store was open, because everything else was boarded up. I talked to the kids for a bit and then the principal asked if we minded if he brought his second, third and fourth graders over to calm them down and show them that we’re making the neighborhood good again,” Fried says. “One of my messages to them was: ‘Remember you live here, so don’t litter.’”

A second grade class from EutawMashburn Elementary School returned that Friday with a banner showing their love for Belle Hardware, which was proudly displayed above the boarded up window. It tops the awards the business has won for Best Hardware Store in Baltimore in 2004, 2009, 2010 and 2013.

“It was a week where everyone was trying to make us cry,” recalls Fried. “It’s hard seeing your store hit, but our customers came through for us. We’re here to stay.” n

The Women in Hardware™ group is off to a good start, after a strong turnout of more than 60 people attended the first meeting, a luncheon program held on Friday, May 15, during the Do it Best Market in Indianapolis.

WOMEN IN HARDWARE

Strong Turnout for First Meeting of Women in Hardware

Click to Learn More About the Women in Hardware Group’s First Meeting program

The Women in Hardware™ program was developed by The Hardware Connection to facilitate networking and information sharing, as well as promote leadership roles for women in the hardware industry.

ECi Software Solutions is a marquee founding sponsor of Women in Hardware™, while Ettore Products Company stepped up to sponsor the inaugural luncheon program.

Diane Allen, who directs the program for The Hardware Connection, outlined the benefits of joining the group and asked those in attendance to

Upper: More than 60 women and men were in attendance for the first meeting of Women in Hardware™, held during the Do it Best May Market.

Middle: Diane Allen introduced the benefits of the Women in Hardware™ program to attendees.

Lower: Roberta VanRossen of Duckback Products was among the attendees who enjoyed the chance to network.

WOMEN IN HARDWARE

share how they would like Women in Hardware to evolve.

In addition to networking, attendees said they would like to share ideas and information on merchandising, human resource issues, product knowledge and education, store presence, mentoring, succession planning and industry statistics.

Among the specific benefits women can share and mentor with other members of the group are how to sell to other women and unique perspectives on leadership and training. Attendees felt social media is a great way to extend the benefits of idea sharing and networking.

As one retail attendee pointed out, male (and occasionally female) customers sometimes assume women lack industry knowledge, which means they must work twice as hard to gain respect. Male owners and managers were encouraged to reinforce the capabilities of their female staff to instill confidence.

“I really enjoyed the opportunity to be part of Women in Hardware,” said Alison Korell of AL&M Do it Best Building Supplies in Texas. “I look forward to seeing where we can go with this group.”

The next meeting of Women in Hardware™ will take place beginning at 12:30 p.m. on Saturday, September 12, during The Hardware Conference in Marco Island, Fla.

Annual membership in Women in Hardware™ costs $149, but for a short time you can sign up and receive a charter member discount of $119. Your

Jeanne Claire of and! Sales Inc. offered feedback on how members can benefit from the group.

Steve Hildebrandt and Steve Constantine represented Ettore Products, which sponsored the well-attended Women in Hardware™ luncheon program during the Do it Best May Market.

ECi Software Solutions, which is a marquee founding sponsor of Women in Hardware™, was represented by five attendees at the luncheon.

membership includes an online profile on the Women in Hardware website, access to one professional networking event held in conjunction with a wholesaler market and one during The Hardware Conference, invitation to participate in education webinars and access to the Women in Hardware’s private Facebook group.

For more information on the Women in Hardware™ program, contact Diane Allen at 317-432-9177 or diane@thehardwareconnection.com or go to http://thehardwareconnection.com/ women-hardware/ ■

Be Part of the Hardware Industry’s Exclusive and Professional Women in HardwareTM 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.

Product Spotlight NHS NHS Sp

This year’s National Hardware Show in Las Vegas was again filled with hot new products. The following pages profile 10 innovative products spotted at the Hardware Show that offer sales potential. Click

WET N STICK® WATER ACTIVATED JOINT TAPE

• Contains a proprietary adhesive compound ingrained within a premium, high-tensile-strength paper with the same properties as gypsum drywall face paper.

• WET n STICK® is formulated to bond permanently to the drywall, eliminating the process of embedding tape into a first coat of drywall compound. Consequently the process is faster, easier and more effective than applying other types of tape.

• Tracing the joint span with your finger and spreading the tape into the drywall face ensures full contact. The tape then sets in minutes and dries within an hour, completing the joint seal a full day faster than with

on the links to the vendors’ web sites and discover if these new items are the right fit for your business.

standard methods. It dries as a paperthin joint seal. The result is a transition area requiring less compound, quick drying and expedited finishing.

• With full contact to the joint surface, WET n STICK® eliminates errors due to wrinkling, bubbling or delamination common with standard methods and pressure-sensitive adhesive tapes.

GORILLA® HEAVY DUTY CONSTRUCTION ADHESIVE

• A tough, versatile, all-weather adhesive, Gorilla® Heavy Duty Construction Adhesive is the “Swiss Army Knife” of construction adhesives.

• Unlike other construction adhesives, its 100% adhesive formula provides a long-lasting, heavy-duty bond, making it truly “All Surface, All Purpose.”

• The durable, 100% waterproof formula holds up both indoors and outdoors, and bonds virtually anything in just 30 seconds including subfloor, mirrors, trim, drywall, landscaping, bath surrounds, foam board, marble and more.

• It is paintable, dries white, is gap filling, VOC compliant and has low odor. The Gorilla Glue Company www.gorillatough.com 800-276-0771

THE HIVE USB CORDLESS SCREWDRIVER

• Pocket-sized cordless screwdriver can be charged by USB in about 90 minutes.

• Compatible with desktop, laptop, mobile charger and USB port in car.

• Comes with USB connector cable, micro 5-pin adaptor and 10-piece bit set including extension bit.

• No-load speed of 280 rpm and comes in white/pink and black/ yellow.

Hive www.thehive.co.kr +82 51 329-7051

NHS PRODUCT SPOTLIGHT

ULTRA SECURITY PLUS KEYLESS DEADBOLT LOCKING SYSTEM

• Homeowner can choose to enter their home with a traditional key, a programed fob or an alpha or numeric selected key pad code. Remote key fob, with a 90’ operational range, provides for a hands-free option.

• Simple-to-program alphanumeric keypad allows the user to select and share a password or number code with family members, plus ability to create a temporary access code for service people.

• Designed to fit a standard 2-1/8” bore hole, it comes with two-way adjustable backset and only requires a Phillips screwdriver for easy installation. Powered by 4 AA alkaline or lithium batteries.

• Available in polished brass, oil rubbed bronze and satin nickel finishes. The illuminated key pad adds a contemporary flair as well as a visual aid for the user’s code access.

HBC Home & Hardware Products www.hberger.com 800-523-1268

T50AC™ CORDED ELECTRIC STAPLER AND BRAD NAILER

• Designed for the pro customer, the T50AC™ offers Spiral Drive™ technology for consistent, powerful driving power.

• The tool fires T50™ staples up to 9/16” and 5/8” brad nails.

• It features a low indicator light that blinks when it’s time to reload your tool, an LED working light to illuminate your workspace and an easy access magazine for quick reloading.

• Ideal for professional applications when a high-performance stapler and brad nailer is required, it will be available in the fall.

BUGGYBEDS®

• Sleep with ease with the new BuggyBeds® detection glue trap, which was featured on “Shark Tank” TV show.

• Home Pack includes 4 custom formulated, ready-to-use BuggyBeds® monitors that can be placed anywhere in the home. Specialized non-toxic, pesticidefree formula and design is intended to lure bedbugs and other insects into the trap for detection.

• Place BuggyBeds® monitors at each corner between mattress and box spring or in between sofa cushions. A simple visual check periodically of monitors will allow you to detect bedbugs early.

• BuggyBeds® monitors are small (2” X 3”) and discreet and can detect up to six months.

VCM Products

COVERMAXX™ AEROSOL PAINT

• Introducing the first general-purpose aerosol paint offering rust protection.

• Provides ultimate coverage and durable adhesion for use on a range of indoor and outdoor surfaces including plastics, metal and wood. Features fast dry time of less than 10 minutes.

• Exclusive EZ Push Spray Tip® conical spray tip requires the lowest force to spray on the market, with 2X less finger fatigue.

• Available in 95 different colors including matte colors, primers and metallics.

Krylon www.krylon.com 216-556-2000

PORTACOOL CYCLONE® 1000

• Mobile, all-natural evaporative cooling unit perfect for spot cooling spaces (up to 300 sq. ft.) where air conditioning is impractical such as patios, garages and hobby spaces.

• Provides cooling effects as much as 30°F using the natural process of evaporation.

• Features quiet centrifugal, 2-speed fan, adjustable louvers, 8-gal water capacity, dual water fill (manual or hose) and water flow control valve for more efficient cooling.

• Recessed casters provide easy portability.

HEAVY-DUTY PODIUM LADDER

• The Podium, a new style of ladder that allows the user to work facing any direction, is now available with factoryinstalled casters, offering increased mobility for professional customers.

• Casters, which are available on the 375 lb IAA and 300 lb IA ladders in heights from 9’ to 16’, are spring loaded to deactivate automatically when the ladder is in use.

• Features extra-large platform for all-day comfort and less repositioning. The 36” extended guardrail securely wraps around the work zone and the LOCKTOP™ helps secure tools where they are needed at the top of the ladder.

• Edge 360™ bracing provides improved durability with an integrated rail shield and oversized foot pad that offers extra stability once casters are deactivated. Werner Company

NAIL BOSS™ DECONSTRUCTION TOOL

• Makes safe work of removing, driving and straightening nails, screws or staples up to 1/4” in diameter while minimizing damage to the wood.

• Lightweight, powerful and easy to use. Just slide the nose piece of the Nail Boss™ over the pointed end of a nail.

• Available in pneumatic and handheld versions and is Made in the USA. Mayhew Tools www.mayhew.com 800-872-0037

hardlines digest

By John Fix III

Pricing Facebook&Promotion Strategies

Spring has arrived, and with it comes customers shopping for home and garden needs. If the busy selling season has kept you from browsing Hardlines Digest, then here are two topics to keep you up to date.

Pricing

Setting retail prices can be a challenge in the connected world of today. Bill Round of Round’s Hardware in Stoneham, Mass., wondered about how to determine the right pricing strategy for blind items.

“I just sold an odd item. It is in the True Value warehouse for $4.99. I have to have it. As of this morning it was an ‘X’ item. Today it is a ‘D’ item. I sold one last year. I sold one this year. I sold the one I have for $5.39, but it should be $5.99 minimum and perhaps $6.99 to justify having this item. The item is so obscure that most people under the age of 50 will not know what it is and will have no context for price comparison.”

Round continued, “Variable pricing based on movement, product value

Retailers know they need to stay sharp on price-sensitive items, but they sometimes run into problems with pricing blind items.

perception, product life cycle and competitive pricing can run into issues when people take my True Value item number and look at the True Value website to see the True Value national retail price. It’s a price that’s profitable, but in my market the item is a slow mover that demands a higher price.”

He added, “When I’ve run into these situations, and there are not many, I tell people that it’s a function of the local market. I need to justify having the item for them to pick up on demand by charging a higher price. It doesn’t sound good. Is there a better answer? A better way to express this to the customer so they don’t feel like they are being gouged? It can reflect negatively on the store’s price perception.”

Bruce Phillips of Crowder Bros. Ace Hardware in Florida had a suggestion on

how to explain it. “Tell the customer that it is a very low demand item that only certain True Value warehouses stock, and that you have to pay extra freight to get it shipped to you.”

Lex Stevens of Back Bay Hardware in Boston offered his thoughts on pricing in the Internet age. “It’s like the old joke: Your competitor’s price is a dollar cheaper, but they don’t have any. Yes, ours are a dollar cheaper when we don’t have any as well. Home Depot’s website is pretty sophisticated now. I often check what the store closest to me actually stocks, as opposed to what they have on their website as ship-to-store or ship-to-customer. I encounter the most trouble with more expensive items. They eat my lunch on smoke detectors and carbon monoxide detectors, which I sell a lot of.

Stevens is very careful to do appleto-apple comparisons, since the pickiest customers are often looking for a very specific model. “Home Depot can’t be cheaper than I am on an item they don’t sell at all. We often just leave a web browser open on the POS to Depot’s website, so that we can quickly check prices,” he posted.

Stevens continued, “A now retired merchant in my selling area advised me to just explain the facts to people. My prices are based on what I pay for an item and on my expenses for doing business in this location. Home Depot does not greet you at the door, take you to the merchandise, explain to you how to use the merchandise and get you out the door

and on with your life as quickly as you choose. Nor can you have a discussion like this with the CEO of Home Depot. If the sticker price of an item is more important to you than your time and any customer service you might need, then Home Depot is the store for you.”

Facebook Promotion

Ken Walchak from Clark-Devon Hardware in Chicago wondered about Facebook promotions. “Have all these likes, fans and views led to increased sales of grills, or any product, for that matter? If so, then I congratulate you, and we have to get ourselves into gear. If not, are you banking on sales down the road? And if the sales are not down the road, then why is everyone doing this? To know that 5,000 people have seen an ad is fantastic. It’s what happens after that that leaves me scratching my head.”

Brandon Buckalew from Hardware Hank in East Grand Forks, Minn., chimed in with his thoughts. “That is the $64,000 question, isn’t it? How do you know if any of your advertising works? I ran the boost last night and haven’t sold any grills today. If I do sell a grill in the next day or two, is it because of Facebook? Who knows? I didn’t expect those kinds of numbers, or I would have included some sort of call to action or promo.”

Buckalew continued, “My goal is to be top of mind when someone is thinking about grilling. I run a couple of TV commercials and we run radio pretty heavy on grilling in May and June. Will it all

hardlines digest

be in vain? I sure hope not. A couple of years ago we didn’t sell any grills until December 23, when one went for a Christmas gift. I told myself that I would give it 100 percent for the next three years and see if I can turn it around and if not, drop grills. Right now (since midMarch) I’m selling a grill a week, and hope to pick that up as soon as warm weather shows up.”

Bryan at San Diego Hardware posted a cautionary perspective about paying for likes. “While Facebook can be an excellent advertising platform, I’m always a bit wary with those numbers after watching this video: https://www. youtube.com/watch?v=oVfHeWTKjag

While this is simply related to ads and not post boosting, I’m curious how much this crosses over. I’m sure it does to some degree. Either way, the fact is at least some portion of those views will be real customers, and in that sense this tool does its job.”

Dusty Lee from Stormer’s True Value in Knoxville, Tenn., shared some thoughts. “From someone who has done zero research but feels like our Facebook effort is somewhat successful, I would like to chime in. Rule number one is that whoever is conducting the Facebook business page needs to have a strong personal Facebook following. Right away, that probably eliminates over half of you busy store owners. I, being a store owner and an avid personal Facebook user, have been able

Upper: Page Hardware used social media to promote an appearance by a local American Idol contestant.

Lower: The roof of Page Hardware was an excellent vantage point to see the large crowd that gathered for a local celebrity’s appearance, which garnered the store a lot of attention on Facebook.

to grow our page with people, actual people, who live in my area and who shop with us. By engaging the same people, it gets shared to other actual people who live in our same area. Once again, whoever runs the page should be a strong Facebook user. This sets the

Sponsors:

Co-Sponsors:

Join us for this important recognition program that honors the best of the best dealers who represent the future of the industry. The Beacon Awards are held annually at The Hardware Conference in beautiful Marco Island, FL, and is Co-sponsored by The Hardware Conference and The Hardware Connection magazine. The Hardware Conference will be held Sept. 11-13, 2015 For more information about attending this event along with all other educational seminars, open floor discussions and social activites at the 2015 Hardware Conference, visit www.TheHardwareConference.com

hardlines digest

‘roots’ for the page to grow by inviting their actual friends, and getting a base number of likes for the page.”

Amy Earls from Page Hardware in Connecticut had some success on Facebook when a hometown celebrity returned to town on May 1. “According to Connecticut state police, 12,000 people visited our little town to see Nick Fradiani, one of the top four contestants on American Idol. Nick went to high school in Guilford and his parents live in town, so he spent the day driving around and hosting a rally at the high school. In the afternoon, he and his band mates were in a parade that passed our store, then performed in a concert on the town green, opposite our store. We took advantage of our prime, flat roof space and this season’s colorful Adirondack chairs to spell out ‘You have Page’s vote,’ letter by letter, on the roof. Some residents complained about closing schools early and effectively shutting the downtown streets to car traffic for the afternoon (We had paid to advertise our annual spring sale and could have drawn crowds without spending a penny). I, for one, think exposing our town and store to thousands of new faces was worth every lost penny of regular, local revenue that day. If you watch American Idol this upcoming Wednesday, you can see Guilford and might even catch a glimpse of Page Hardware.”

Earls continued, “As a Chamber of Commerce member, I have a contact

Dusty Lee of Stormer’s True Value offered insights into gaining a Facebook following.

at the town hall who gave me specifics about the concert before anyone else had them posted. Over 18,000 people viewed our post. All week we added details and pictures as they became available. Fifty new people liked our page and thousands viewed, liked and shared each post. Now I know what viral means. See the store’s page by clicking here: https://www.facebook.com/ pagehardware?ref=hl “

Finally, Lee from Stormer’s Hardware noticed some unusual activity on their Facebook page. “It was highly entertaining last year when I got a sudden wave of ‘likes’ from folks in South Africa. They were intending on liking the DHL ‘Stormers’ rugby/soccer teams from Cape Town, South Africa, as opposed to Stormer’s True Value Hardware in Knoxville, Tenn. The minute I posted anything hardware related, I lost all likes from South Africa. However, it turned out to be a fairly successful marketing tool when I made light of it publicly.”

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.

Beacon Awards CENTER STAGE

Program Takes

This year’s Hardware Conference, scheduled for September 11-13 at the Marriott in Marco Island, Fla., will continue building on tradition, as the industry’s largest gathering of independent retailers will be celebrating its 27th year.

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

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

Tom and Dale Chasteen have been putting on The Hardware Conference every year since 1988, but this year they will receive major assistance from Craig and Shanti Cope. Tom and Dale are transitioning The Hardware Conference to Craig and Shanti, with the goal to ensure the event continues to grow into the future.

Craig and Shanti are co-owners of Island Décor, a premium retailer in the Florida Keys. Craig, who also serves as associate publisher of The Hardware Connection magazine, was most recently executive director of the Key Largo Chamber of Commerce and spent 13 years with Altria Group (formerly Phillip Morris USA) in a variety of sales and marketing positions.

“Dale and I wanted to make sure that The Hardware Conference continued for many years in the future, and we could not be happier that Craig and Shanti have agreed to come on board and help us take the event to another level,” Tom said. “We have no doubt that Craig and Shanti have the right combination of skills and commitment to ensure The Hardware Conference grows and remains relevant.”

HARDWARE CONFERENCE

Tom added, “Dale and I will still be very involved during the next three years as we transition over to Craig and Shanti and we will continue to participate and help out wherever we can, hopefully for another 20 years.”

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 75 or so vendors who participate with tabletop exhibits.

One of the highlights promises to be the Friday night banquet featuring the Beacon Awards, which are co-sponsored by The Hardware Conference and The Hardware Connection with special

sponsorship support from Apex Tool Group, Sunnyside Corporation, Epicor, 3M and Sherwin-Williams Diversified Brands Division.

The Beacon Awards will recognize the industry’s Best New Stores, as well as Retail Beacon Award winners from the four participating wholesalers. Beacon Award winners will receive allexpense paid trips for two to this year’s 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.

Judging for Best New Store will be based on any or all of the following

Patented technology detects when a cord overheats and alerts you before a dangerous issue becomes critical. Improperly used and overloaded extension cords account for more than 3300 fires per year!*

criteria: financial performance (sales, profits, margins, etc.); community involvement; store design; merchandising displays; promotion activities; specialized product areas/ niches; employee training/ recognition programs; and innovative retailing concepts. Store must have been open at least one year, to a maximum of four years.

Hurry—the nomination deadline for the Best New Store Awards is June 1. Nomination materials should be emailed to Tom Delph, Beacon Awards program director, at tdelph@thehardwareconnection.com.

Marquee sponsors for this year’s Hardware Conference include The Hardware Connection, Wooster Brush, Krylon, The Hillman Group, Gilmour and the Miami Children’s Hospital Foundation. Vendor booths are auctioned off Saturday night with the proceeds benefiting the Miami Children’s Hospital Foundation.

For more information on attending the 2015 Hardware Conference or to register, call (305) 853-0049 or go to www. thehardwareconference.com. n

Schedule of Events

Wednesday, September 9

10:00 AM - 3:00 PM

2:00 PM - 4:00 PM

Thursday, September 10

8:00 AM - 9:00 AM .

Vendor Only Meeting, sponsored by The Hardware Connection

.Technology Forum, Vendor and Dealer Registration

. . .ECi RockSolid, Epicor, & J-3 POS Breakfast

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

8:00 AM - 12:00 PM

9:00 AM - 4:00 PM

2:00 PM - 4:00 PM

6:30 PM - 8:30 PM

Friday, September 11

8:00 AM - 12:00 PM . .

8:00 AM - 5:00 PM

10:30 AM - 2:00 PM

10:30 AM - 2:00 PM

10:30 AM - 2:00 PM

Technology Forum, Vendor and Dealer Registration

. . .Vendor Set Up

Vendor and Dealer Registration

All Industry Cocktail Reception, sponsored by ECi RockSolid, Epicor & J-3 POS

. . .Vendor Set Up

Dealer and Vendor Registration

Ace Hardware Meeting & Luncheon – Dealers only

. .True Value Meeting & Luncheon – Dealers only

. . .Do it Best Meeting & Luncheon – Dealers only

10:30 AM - 2:00 PM Orgill Meeting & Luncheon – Dealers only

4:00 PM - 5:30 PM

6:00 PM - 7:15 PM

7:15 PM - 9:30 PM

.Dealer/Owner Seminar - Vendors Welcome

. Cocktail Reception, Palms Foyer, sponsored by Hyde Tools

Beacon Awards Banquet Dinner

At conclusion of dinner, Hospitality Suite is open, sponsored by Duracell

Saturday, September 12

7:00 AM - 8:00 AM

8:15 AM - 10:00 AM

10:15 AM - 11:30 AM

12 PM

12:30 PM - 2:00 PM

. .Breakfast, sponsored by Hillman Group

. .Exhibit Areas Open

First Day of Open Dialogue

Trolleys leave for the Krylon Golf Outing, The Rookery Golf Course

Women in Hardware, Private Luncheon

12:30 PM - 4:30 PM Day at the Beach, sponsored by Wooster Brush

1:00 PM - 5:00 PM

2:30 PM - 4:30 PM

6:15 PM

6:15 PM - 7:15 PM

7:15 PM

10:30 PM

10:30 PM - 1:00 AM

Sunday, September 13

7:00 AM - 8:00 AM

8:15 AM - 10:00 AM

10:15 AM - 11:30 AM

11:30 AM - 12:00 PM .

.Hospitality Suite is open, sponsored by Duracell

Shelling Excursion, sponsored by Minwax

“Kids Night Out”, sponsored by Miami Children’s Health Foundation, (Ages 5-12)

Cocktail Reception, sponsored by 3M

Key West Buffet Dinner Party and Auction

.“Kids Night Out” concludes .

Hospitality Suite is open, sponsored by Duracell

.Breakfast

Exhibit Areas Open

. . .Final day of Open Dialogue, sponsored by WM Barr

. .Closing Remarks of The 2015 Hardware Conference

Apex Tool Group

Focus On Innovation: Apex Tool Group

If you’ve been paying attention to the recent product offerings from Apex Tool Group, you’ve noticed a new commitment to developing and introducing a steady stream of new tools that answer market needs and exceed customer demands.

Apex Tool Group hAs creATed A powerhouse research and development team that actively seeks out input from tool users. Apex combines that knowledge with engineering creativity to fill their product pipeline with innovative new products from trusted brands like crescent®, lufkin® and Wiss®, enabling dIYers and professional tradespeople alike to tackle tough projects with tools that make jobs go faster and easier.

Today’s hardware customers demand tools that are more effective, lighter, easier to use and can accomplish multiple

tasks… and that is where the innovative tools from Apex Tool Group brands really deliver. The crescent Bull Bar™, for example, improves on traditional pry bars with an indexing head that adjusts to give users the best position for maximum leverage and power. Another example is crescent’s pass-Thru™ Adjustable Wrench set, a fastening tool that combines an adjustable wrench, a pipe wrench, and a pass-thru ratchet all in one tool.

Building on its tradition of providing superior quality products, Apex Tool Group continually identifies opportunities

for product improvement through consistent innovation, offering additional tool capabilities that cultivate an ever-growing following of loyal customers. Apex Tool Group has positioned itself well for the future, anticipating changing customer needs and developing products that improve productivity, so pros, serious dIYers and general consumers can do their best work.

r

180° indexing head that adjusts he best angle for access and lverage. The double fork design s the edge of the board and ovides a balanced lift.

The X6 Series Pass-Thru™ atchet and Socket System eliminates the need for duplicate andard and deep sockets and orks on 12-point, hex, rounded h x, square, e-Torx and spline f steners.

Ratchet eliminates the need for duplicate

The Crescent Bull Ba has a Bar a 180° head that head that to the l verage. grips provides he standard works hex, fasteners.

The Crescent Pass-Thru™ Adjustable Wrench Set is a versatile fastening tool that combines an adjustable wrench, pipe wrench and pass-thru ratchet all in one tool.

The Crescent Self-Adjusting Pipe Wrench features an angled tooth design that grips without slipping. Its ratcheting action, compact size and light weight help get jobs done quickly and easily. ■

IN THE NEWS

NEW STORES:

• Hart Askew IV is opening Askew’s Ace Hardware in New Bern, N.C.

• Shawn O’Brien purchased three Ace Hardware stores in Traverse City and Acme, Mich., from Joan Boyd and Don Maxbauer.

• Zoltan Dobsinai opened Home Hardware in London, Ont.

• Gillman Do it Best Home Center opened a new store in New Castle, Ind.

• Adam Hayes opened Mobridge Ace Hardware in Mobridge, S.D.

• Farmers Co-op True Value is opening in Decatur, Ark.

• Steve White opened Panhandle Creek Ace Hardware in Red Feather Lakes, Colo.

• Ace Hardware opened inside Sullivan’s Foods in Rochelle, Ill.

• Tim Gibson is the new owner of the reopened Ace Hardware of Sun City Center, Fla.

• Fred Larsen Sr. and Fred Larsen Jr. have purchased Pfau’s Hardware in West Hartford, Conn., and renamed it Larsen Ace Hardware.

KUDOS TO:

• Mike, Rose and Dale Drew are celebrating the 35th anniversary of

Merrilees Trustworthy Supply, with stores in Cleves, Ohio; and Milan and Bright, Ind.

• Attica Auto and Hardware in Attica, N.Y. was named Large Business of the Year by the Wyoming County Chamber of Commerce.

• InformationWeek placed Do it Best Corp. in 59th place in its Elite 100 annual rankings, recognizing the co-op for its deployment of new technology to enhance its operational excellence.

• Members of the sales and business development team at Do it Best Corp. joined forces to assemble and donate two dozen new children’s bicycles to Hawthorne Community Center in Indianapolis, just prior to the co-op’s May Market.

Do it Best donates bikes.

ON THE MOVE

• Deborah O’Connor has joined True Value Company as senior vice president/chief financial officer.

HARDWARE PROGRAM Ambassador

The Hardware Ambassador ProgramTM was created to bring the hardware industry together to promote the independent hardware retail channel as the most efficient and profitable channel to distribute hardware and home improvement products and services.

• View Vendor Product Listings by Wholesaler

• Ability to Download Product Listings by Wholesaler Directly into Retailers’ Point-of-Sale Computer Systems

• Check Out Vendor Profiles, Informational Videos & Product Reviews

Click Here to Learn More and View Vendor Product Listings by Wholesaler

WHOLESALERS IN THE NEWS:

• Ace Hardware was named “Nation’s Most Favorite Home Improvement Chain” in a new study conducted by Market Force and based on 1,992 consumers’ satisfaction levels.

• True Value Company reported revenue of $353.8 million for the quarter ended April 4, a 6.7% increase from the prior year. Gross billings rose 7.4% to $494.0 million but the co-op experienced a net loss of $1.7 million for the quarter.

• Ace Hardware Corp. is seeking $3.2 million in tax breaks to secure a $27.5 million expansion of its retail distribution center in Wilton, N.Y.

• Do it Best Corp. announced an agreement with its newest overseas affiliate to develop its first locations in Saudi Arabia, the 55th country in which the co-op operates. The agreement provides Saudi Arabiabased Albawardi Group exclusive development rights in the country and will lead to Attken Do it Center locations throughout the nation.

• Ace Hardware Corp. reported record Q1 revenues of $1.2 billion, up 10.0% from the prior year. Net income rose 22.5% to $29.9 million while retail same-store sales increased 9.2%.

OTHER NEWS:

• Kodiak Building Partners

acquired 10-unit Zarsky Lumber in Texas.

• Colbert Ace Hardware in Colbert, Ga., was completely destroyed by fire on May 9.

IN MEMORY:

• Carl Bicking, former executive vice president-sales at Ace Hardware Corp., passed away May 12 at age 94. When the World War II veteran and Hungarian immigrant was hired by Ace founder Richard Hesse as office manager in 1947, the co-op had 119 member stores. He was quickly given responsibility for sales, and when Bicking retired in 1983 Ace had 4,300 stores.

• Vernon Soukup, who owned Soukop’s Hardware Store in Wheaton, Ill., for more than 30 years, died April 15 at the age of 89.

FOR THE FULL STORY:

• How Washington Punishes Small Business. Click here.

• Epicor Spinning Off Retail Solutions Business. Click here.

• Amazon and Google are Drawn to Home Services Market. Click here.

• Fire Destroys Ace Hardware in Tunnel Hill, Ga. Click here.

a growing community of thousands of

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

John Fix Owner, Cornell’s

Hardware Eastchester, NY

IN THE NEWS

DO IT BEST CORP. CELEBRATES 70TH ANNIVERSARY WITH LAUNCH OF NEW MEMBER PROGRAMS

Strong member attendance, an expanded Sneak Peek sales event and new program launches combined to help Do it Best Corp. celebrate its 70th anniversary at the co-op’s May market, held May 15-18 in Indianapolis.

“Even by our own high standards, we are particularly excited about this market and the many growth opportunities it presents our members,” said Do it Best Corp. President and CEO Bob Taylor.

In conjunction with the co-op’s 70th anniversary, vendors teamed up to offer 70 Buy One Get One offers at the Sneak Peek buying event, bringing total sales for the event to $6 million.

Programs launched or enhanced by Do it Best at the May market include: Store expansion—The Retail Performance program introduces enhanced incentives to drive store growth, with customizable solutions for existing members looking to expand into new locations. The coop now offers a below-prime loan program that can be tailored to fit the needs of a member who is looking to expand or improve their business, which can be combined with extended dating and product discounts up to 50 percent. “We are making a significant

investment to help our members grow,” said Jay Brown, VP-sales and business development.

E-commerce—Following on the successful re-launch of doitbest. com, the Do it Best Corp. consumerfocused e-commerce website, the coop is expanding access to this new e-commerce platform to its entire membership. Member-owners can now boost their online presence with a uniquely branded shopping website, tailored to their store’s identity and powered by the enhanced doitbest. com.

Since the relaunch of doitbest. com in November 2014, the coop has been converting existing members in the program to the new platform. The May Market marks the first time members who have not yet participated in the co-op’s e-commerce program can sign up to convert their existing website—or create a new one—while taking advantage of the platform’s optimization for smartphones and tablets.

The new doitbest.com brings with it a number of innovative new features and tools including faster product searches, a streamlined checkout process, social media integration and a mobile-friendly design.

Additional key features of the new doitbest.com shopping website

include: improved store locator function; a new comparison tool that shows up to four products at once across a number of attributes; a faster, streamlined checkout process for shoppers; and updated website security and fraud protection.

Industrial/commercial—The INCOM Distributor SupplySM division launched its new Do it Best INCOM Supply™ program, which focuses on offering an expanded product selection and market expertise to drive greater industrial/commercial sales opportunities for hardware and home improvement stores that were traditionally retail-focused.

Overall, the industrial/commercial market has averaged double-digit increases over the past several years, now reaching more than $500 billion annually. The INCOM Distributor Supply division of Do it Best Corp. has seen an 80 percent increase in business in the past three years.

“As the industrial/commercial marketplace continues to show impressive year-over-year growth, we have committed even more of our resources to help our members expand their sales by attracting new customers to their businesses,” said Taylor.

With the new Do it Best INCOM Supply, a dedicated program team will work with participating members to navigate a variety of product mix

Do it Best Corp. President and CEO Bob Taylor announces new and enhanced programs at the co-op’s May Market in Indianapolis.

options and the 5,000-plus vendordirect programs they can access.

“We’ve grown our INCOM team to provide the best industry advice and training,” added Brown. “With a team of devoted specialists, robust warehouse offering, top-of-the-line marketing tools and an expansive vendor network, Do it Best INCOM Supply will put our members on a path to successfully capture new customers and profit in the industrial/ commercial market.”

This fall, the co-op will begin offering a comprehensive training program to equip attendees with everything they need to operate a successful industrial/ commercial program. The training program will feature dedicated sessions on a number of business building topics, including selling strategies, expanded vendor programs, strategic e-commerce implementation, and advertising and marketing expertise. ■

UPCOMING EVENTS

JUNE

House-Hasson Hardware Summer Dealer Market

June 18-20, Sevierville Events Center, Sevierville, Tenn.

The National Lawn & Garden Show

June 9-11, Embassy Suites, Dallas-Frisco, Texas

United Hardware Fall and Winter Buying Market

June 12-14, Minneapolis Convention Center, Minneapolis

JULY

World Pet Association SuperZoo

July 21-23, Mandalay Bay Convention Center, Las Vegas, Nev.

AUGUST

Ace Hardware Corp. Fall Convention

August 20-22, McCormick Place Convention Center, Chicago

Florida Hardware Fall Market

August 8-9, Double Tree Hotel and Convention Center, Orlando, Fla.

Handy Hardware Fall Market

August 6-8, Henry B. Gonzalez Convention Center, San Antonio

HDW Fall Market

August 7-9, Shreveport Convention Center, Shreveport, La.

Independent Garden Center Show-IGC Chicago

August 18-20, Navy Pier, Chicago

Independent Garden Center Show-IGC East

August 4-6, Baltimore Convention Center, Baltimore, Md.

Orgill Fall Dealer Market

August 27-29, Ernest N. Morial Convention Center, New Orleans

spoga+gafa 2015: Garden Trade Fair

August 30-September 1, Koelnmesse, Cologne, Germany

SEPTEMBER

Blish-Mize Fall Dealer Market

September 18-19, Overland Park Convention Center, Overland Park, Kan.

Home Hardware Fall Dealer Market

September 19-22, Henry Sittler Building, St. Jacobs, Ontario

Monroe Hardware Fall Dealer Market

September 19-20, Myrtle Beach Convention Center, Myrtle Beach, S.C.

PACOA Fall Market

September 19-20, Queen’s College-Fitzgerald Gymnasium, Flushing, N.Y.

The Hardware Conference

September 11-13, Marco Island Marriott, Marco Island, Fla. www.thehardwareconference.com

True Value Fall Reunion

September 18-20, McCormick Place Convention Center, Chicago

Send calendar dates to chris@thehardwareconnection.com

MOORE’S EMBRACES

CONCEPT OF ONESTOP SHOP

Carrying stylish clothing will help the store appeal to female shoppers.

The new Moore’s Feed Store that opened in late 2013 in Pontotoc, Miss., features dominant assortments in core categories but also some welldefined niches. At the front of the 137,000-square-foot store is a large service counter for auto parts.

Additional niche categories include animal health, clothing, footwear, fencing, horse tack, cleaning, poultry, pet supplies, sporting goods, trailer parts and welding. “This is a true one-stop shop. If we find there’s something missing, we’ll add it,” says Owner John Moore.

Moore’s daughter, Liz Russell, serves as assistant manager and she has overseen the selection and merchandising of the clothing and footwear categories, which take up prime space in the front of the store.

Russell came up with the idea of attracting sponsorship support from

Upper: Moore’s will quickly become known as a destination store for boots for men and women.

Middle: Equestrian and tack supplies are prominently merchandised in the back area of the store.

Bottom: Purses and handbags are merchandised near the checkout stations as a way to attract add-on sales from female shoppers.

companies such as Nutrena, whose logo is prominently featured in the signage. Moore’s is the largest dealer of Nutrena products in the state of Mississippi.

MUSIC HISTORY COMES

ALIVE IN MUSCLE SHOALS

Discount Dan’s location in Sheffield, Ala., is near the hotbed of music, Muscle Shoals, where local recording studios began producing hit songs in the 1960s for artists such as Bob Dylan, The Rolling Stones, Willie Nelson, Elvis Presley, Lynyrd Skynyrd and George Jones. Since the area is so steeped in music history, Discount Dan’s created a “Shoals wall of music” in the front of the store that displays music memorabilia from famous artists.

Discount Dan’s recently hosted “The Muscle Shoals Music Factory,” a weekly TV show. Shown above (left to right) are: co-host Kenny Gilbert, Discount Dan’s General Manager John Glenn, guest artist and American Idol contestant Garrett Miles and co-host Hugh Banks.

NEW LOOK AT DIDIER HOME & HARDWARE

To celebrate the complete renovation of Didier Do it Best Home & Hardware in Union City, Ind., owners Mark and Adam Didier hosted a grand reopening event April 11 complete with a chain-cutting ceremony, a magician and plenty of food and prizes such as an iPad Mini. In addition to a store design makeover, the Didiers also updated their product selection after analyzing customer survey results and changed their name to Didier Home & Hardware to reflect their new merchandise assortments such as the addition of a Guns and Ammo shop and expanded farm and ranch department.

Didier Home & Hardware held a grand reopening for their remerchandised store in Union City, Ind.

CAMPING HEADQUARTERS

Basic American Supply in Colorado City, Ariz., promotes camping supplies with this special display.

Behind the Numbers

83%

Percentage of respondents who said they would buy “Made in America” products as their first choice if given the option between goods made in the U.S. and those made abroad, according to an online survey of 1,000 adult consumers by FIND/SVP.

72%

Percentage of Americans who are paying more attention to the country of origin of products they buy, according to a Gallup Poll survey.

86%

Percentage of consumers who were more likely to buy from a company

that manufactures its products in the United States if given a choice, according to a survey for BBMG Conscious Consumer Report.

85%

Percentage of Americans who believe that products made in the U.S. are highquality items, according to Industry Week study.

76%

Percentage of shoppers who are more likely to purchase a product after noticing the “Made in USA” claims on packaging, according to Perception Research Services.

12 million

Number of Americans employed in manufacturing, which represents 9 percent of the workforce, according to the National Association of Manufacturing.