Hardware Connection September/October 2016

3M | www.3m.com

Inc. | www.channellock.com

| www.ECiSolutions.com

Inc. | www.elmers.com

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

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

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

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

Contributing Writers: John Franklin, John Fix III, Doug Donaldson 91900 Overseas Highway | Tavernier, FL 33070 | www.thehardwareconnection.com

Senior Business Advisor: John Hammond jhammond@thehardwareconnection.com

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

National Account Manager: Cathy Karabag cathy@thehardwareconnection.com 408-772-7961

Beacon Awards Director: Tom Delph tdelph@thehardwareconnection.com

By Chris Jensen

Saying Good-Bye to Trusted Friends

Two key contributors for The Hardware Connection are retiring from the hardware industry at the end of this year: Diane Allen and Tom Delph. They will be sorely missed.

Diane joined The Hardware Connection as director of vendor programs in the fall of 2013. She previously spent 16 years at NRHA, where she was director of the vendor partner program. Many retailers and vendors know her and to know Diane is to like her. She is respected throughout the industry for her ability to connect with people on a personal level. On a number of occasions I have jokingly referred to Diane as the vice president of caring, because that’s the type of person she is.

Diane immediately helped us get two key programs up and running: the Hardware Ambassador Program™ (HAP) and the Women in Hardware™ group. Both programs are designed to strengthen the two-step channel of distribution and bring people and companies closer together. It’s been a job well-done. She also did a great job representing us with advertising sales for the magazine.

Tom Delph has seen it all during his 58 years in the hardware industry. He started his career at NRHA in 1958, rising to associate publisher during his 26

years there. He later directed the Young Retailer of the Year program for NRHA for 17 years and served as executive secretary for the Worldwide DIY Council for 11 years. Tom also spent nine years at Chilton Publishing as group publisher overseeing Hardware Age and three other trade publications.

Tom joined The Hardware Connection in fall 2012 to help us get the Beacon Awards program up and running as program director. He helped ensure we put on a first-class national awards program honoring “The Best of the Best” retailers each year. We benefitted greatly from Tom’s advice and experience to not only develop the Beacon Awards program, but also to grow our overall business. He is a true gentleman.

Tom recently moved back home to Indiana with his wife Judy, making it easier to root for his beloved alma mater, Indiana University. Diane plans to spend more time traveling with her husband, Steve. We are deeply appreciative of their key contributions to our organization and wish them both good health and happiness. ■

Our 2016 Beacon Award winners are outstanding examples of premier retailers pursuing their defi nition of success. For the McCoy family of Orme Do it Best ® Hardware in Ohio, it’s continuing to grow their 60-year, multi-generational, seven-store family business with a commitment to the future. For Brian Buswell of All American Do it Center ® in Richland Center, Wisconsin, success means expanding his business and utilizing the strengths of Do it Best Corp. to help realize his vision for a new premier retail location. All of our independent member-owners are supported by affordable, menu-based programs, unmatched distribution efficiency and the financial strength of no long-term debt, low operating costs and industry-leading member rebates. We congratulate our winners and look forward to helping them succeed for many years to come.

Athe way i see it

By Tom Chasteen

Reflections on What I Could Have Done Better

s I enter into the final phase of my hardware career I have begun looking back to evaluate some of the things I have done, things I wish I had done or things I wish I had done better. After speaking with quite a few people who have retired or are getting ready to retire, reflecting back over their careers seems to be a common practice. It’s an exercise that I have found to be quite humbling when reflecting on the areas in which I could have done better.

The one thing that makes owners of independent hardware stores unique is that many of us have worked for and with our parents, siblings or other family members. In many cases, our mentors and teachers are much more than just someone with whom we have a professional relationship. As most people who are reading this column know, not all family-owned businesses have a happy ending. And like parenting, very few store owners I’ve known can say they did everything right.

One thing that I have become painfully aware of and, unfortunately, I

the one thing that makes owners of independent hardware stores unique is that many of us have worked for and with our parents, siblings or other family members.

cannot go back and change or even apologize for (as both of my parents passed away many years ago) was my overwhelming desire and exuberance to prove to my parents that I was ready to take over the family business.

Like most young people who graduate from college, I was energetic, brash, cocky and filled to the brim with a lot of “theory” from my college professors. I had very little practical business knowledge or experience. In short, I wasn’t smart enough to know what I didn’t know. Combine that with my strong desire to prove “I was worthy” to take over the family business, and I didn’t

the way i see it

realize what I missed until now as I am the one starting to relinquish the reins of the family business. What I realize now is that there is absolutely no replacement for experience and practical knowledge. College and graduate school were a great petri dish to nurture concepts and theories in business. However, as most pilots will tell you, I can explain how to fly an airplane all day long but until you actually sit in the left seat with the yoke in your hands and take full responsibility for what happens, you will never know how to fly an airplane.

What I realize now is that I was so determined to show my parents that I was capable of taking over the business that I inadvertently alienated my father from the very business he built. I don’t mean to imply we didn’t have a smooth transition—we did. But after I took over the business, I didn’t include him in many of the decisions I was making. I wasn’t sensitive to the fact that I was taking over “his” business. I didn’t understand that one day all of the decisions were his and the next day they were mine. As it is my turn to relinquish the family businesses to the next generation, I’m beginning to better understand what my father went through and the frustrations he must have had.

what i realize now is that i was so determined to show my parents that i was capable of taking over the business that i inadvertently alienated my father from the very business he built.

As I shared recently with one of our adopted sons, “You don’t have to prove anything to me—you’ve already done that and I’m very proud of who you have become. I don’t want to take back the business, I just want to help you make it a better business. I have more practical knowledge and experience than anyone in this building, so don’t hesitate to use that to your advantage and please don’t confuse my desire to work with you as me wanting to take the business back or as a lack of confidence in you.”

I related the analogy to our adopted son as if we were building a hot rod car together. I have no desire to drive around town in a hot rod car (that ship sailed many years ago) but I would like to help you build it as a father and son team. And make no mistake about it when we are done, it’s your car and so are all the expenses.

Every son or daughter who is taking over the family business should

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the way i see it

heed this next piece of advice. The one thing I wish I could have done better is to not miss out on letting your parents who have built the business over the years help you build the business even better. Make no mistake about it, it’s your business and like an airplane there is no way you will understand what it’s like to fly until you actually sit in the left seat and do it.

As my father would always say when we would have a strong disagreement (heated argument) on how to resolve an issue: “It’s your ship. If you want to drive it up on the rocks, then have at it.” Then he would walk away. Disagreements are inevitable in any business setting, but they can become more intensifi ed in a family business. How we resolve these disagreements is critical to the future success of the family business.

In closing, the one thing that my father did very well and that I hope to emulate during our succession plan is when he relinquished the responsibilities of day-to-day operations of the family business, he never overrode my decisions even when he thought I was making an obvious mistake. And he never said to me, “I told you so.”

From one retailer to another, contact me with your feedback at tom@thehardwarestore.com . ■

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Ijust got yelled at by a customer because we did not have enough of the necessary bolts for his spaceship. I kid you not! My first call on Monday morning will be to the fastener buyer at Do it Best to insist on a broader and deeper spaceship bolt inventory.

Ken Walchak

Clark-Devon Hardware

Chicago, Ill.

THARDWARE STORIES Amazing but TRUE

Ihe cashier called me to the front because a customer said he had his credit card on his iPhone and wanted to use it. We are set up for iPay and other contact- less payment methods, but I thought perhaps the cashier or customer was having difficulty using it. The customer had his iPhone out, and he had a photo of an American Express card on the phone and he wanted to use that card by manually entering the bankcard number into our system. I explained that the card must be present, and he said “It is, it’s right here on the phone.” I explained that the physical card must be present. He wasn’t hap- py and left his $11 purchase on the counter.

John Fix III

Cornell’s True Value Eastchester, N.Y.

was working in the warehouse on Saturday. It seems that upper manage- ment always has to dig merchandise out of the warehouse despite staff assurances that “everything is downstairs,” “the place is empty” or “I didn’t see it up there.” I sat at my desk afterwards and noticed that my wedding ring was not on my finger. I thought it might turn up in the paint boxes or one of the totes. No luck. I finally had to tell my wife. Her reply: “That makes it offi- cial; you’re married to the business.”

Bill Round Round’s True Value Hardware Stoneham, Mass.

Our store is on two levels, so to help customers get assistance we have buttons that will call employees. One time a customer presses the button in the Hillman nuts and bolts aisle. The employee shows up and sees about eight or nine bolt drawers pulled open. The customer then asks the employee to put one or two bolts from each drawer in a bag. I guess we’re now a nuts and bolts concierge.

Tom Mortell Jr. Timberline Ace Hardware Telluride,

Colo.

From Tom’s Shop hardware

products review

This year we have seen some really well-built, innovative products launched in the hardware industry. The timeline for a new product to be made available in the hardware channel has been dramatically reduced by technology. An example of this is the 3D printer

product #1: electronic Flare

weeMs & plath

Weems & Plath is a neat company. They are known for making quality nautical and weather instruments, such as ship clocks and nautical barometers, as well as many other high-quality products. However, the product that really caught my eye at the National Hardware Show® this year was their Electronic Flare. Our hardware store is located in the Florida Keys and as you might imagine, we have a fairly large salt water marine and fishing department. What most hardware retailers may not know is the largest concentration of people in the U.S. is around navigable waterways.

In fact, Michigan has one of the largest number of registered boats in the U.S. Most states offer retailers

By Tom Chasteen

technology where manufacturers can produce a strong, plastic prototype literally in hours. If you have the opportunity, stop by the Dremel booth at the next show and you can watch a 3D printer make something from scratch.

access to the number of boat registrations and type and style of boats registered. So if you are thinking that an Electronic Flare is not for your market, then you may want to rethink that.

Marine safety flares have long been treated as a consumable item that required proper disposal, since

Our testers all came back with glowing remarks about the Weems & Plath Electronic Flare, but what was even more interesting is that they mentioned this product would be equally effective in other markets that cater to outdoor activities such as cross country skiing, hiking, camping, mountain climbing and hunting. As one tester pointed out, this would be an excellent product for any activity that could cause someone to get lost or need help.

The Weems & Plath Electronic Flare is not flammable like traditional flares. The light strobe will emit an SOS (three short, three long, three short) distress signal for 60 hours and it is visible for 10 miles. A traditional flare shot from a flare pistol will only be visible for less than 10 seconds. Additionally, traditional flares cannot be put down just

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Epicor Scheduling+™ after they exceed the expiration date they must be replaced. With Weems & Plath’s new Electronic Flare that is not the case. All you need to do is replace the three standard C cell batteries once a year if the Electronic Flare isn’t used.

“A significant feature that led us to choose Epicor Scheduling+™ software is the fact that it’s a cloud-based application. Our employees have instant access to their schedules on any mobile device or in the online portal. It keeps our employees and entire business accountable.”

Johil Parbtani, General Manager | Miami Home Centers

anywhere once they have been set off, as they could cause a fire or, worse yet, burn a person who is not familiar with how to handle them.

product #2: hand tool product line | oX tools

OX Tools has been manufacturing tools for 40 years and the company has some interesting products that offer unique features. All of the OX Pro Series levels have silicone-cushioned handles that make it natural to hold in your hand. They also have shock-proof end caps to help protect the ends of the level. They also have another really unique feature in that each level has a dual-view bubble on each end of the level, so you can see the vial in either a vertical or horizontal position, which our testers all really liked.

Fifteen years ago I was on a private boat that caught fire in a very remote and uninhabited part of the Bahamas and we were stranded for several days. What I would have given for an Electronic Flare that would transmit for 60 hours. Like all of our testers I give the Weems & Plath Electronic Flare a huge thumbs up. Click on this link to see a short video on the Electronic Flare. Two Old Goats products are ying o shelves at more than 2,000 retailers across the U.S., including ACE Hardware stores! Join the movement which has inspired tens of thousands of Americans to loyally use the Two Old Goats products to soothe aches and pains. Made with therapeuticgrade essential oils and goat’s milk, Two Old Goats lotions, balms and body wash products are sure to perform well in the alternative medicinal market.

The Art of Brushmaking

Purdy brushes are handcrafted from the finest materials by experienced Purdy brushmakers who undergo two years of training before they can craft their own brushes. Like every true artist, every Purdy brush is “signed” by the person who made it – a mark of pride in a job well done, offering peace of mind to professional painters that the tool in their hand was made with the highest level of quality. Purdy.com

OX Tools also makes a pro torpedo level they claim is “the toughest torpedo level in the world.” Once you have one in your hands I think you will agree it is the toughest torpedo level in the world. However, there are several other features that make this torpedo level worth mentioning. The bubble vials are unbreakable, it has a grove notched into the level surface so it is easy to use on square or round corners, and it also has two magnets inset so you can use it handsfree on metal surfaces. The feature

I personally liked the most was the adjustable “angle finder” bubble vial on one end. This helps make sure you maintain the right angle when welding metals together.

In addition to levels we also previewed OX Tools’ offering of masonry tools, which we found to be very well made as well. All of the handles of the masonry line of tools have a

soft-grip handle and are extremely well balanced and easy to grip. Each trowel we reviewed was well made with riveted shanks and blades with ground edges to help prevent lines and ripples when finishing concrete. The one comment that all of our testers came back with was

trowels were to work with and handle.

OX Tools also makes an excellent 24 oz. brick hammer. The hammer has the same type softgrip handle as the trowels and also

offers the user an excellent grip on the hammer. OX’s brick hammer is made from a single forged piece of steel and has a well ground chisel. Click on this link to see a video of OX Masonry Tools.

COMPANY PROFILE

APEX TOOL GROUP IS A PROUD SPONSOR OF THE 2016 BEACON AWARDS

In early1907, an inventive young Swedish immigrant named Karl Peterson founded the Crescent Tool Company, a small firm in Jamestown, N.Y.

Less than a year later, Peterson would create, perfect and patent a way to manufacture the first adjustable wrench, and the Crescent name would become synonymous with the tool containing a movable jaw with a cylindrical screw adjuster.

In the following years, the Crescent® brand adjustable wrench would become an indispensable component of every toolbox in the country. It would be an

essential tool for the repair of early automobiles, make the first trans-Atlantic flight with Charles Lindbergh, go into orbit with the Gemini missions in the 1960s and become a hand tool icon, valued and trusted by generations of tool users.

Now, nearly 110 years later, Crescent is still one of the most recognizable brands of hand tools in the world, known for far more than its famous adjustable wrench. Crescent is continually developing innovative new tools to satisfy the ever-changing demands of today’s tool users. Building on its tradition of providing superior quality products, Crescent continually identifies opportunities for product improvement through consistent innovation, offering additional tool capabilities that cultivate an ever-growing following of loyal customers. The Crescent brand is positioned well for the future, anticipating changing customer needs and developing products that improve productivity so both professionals and do it yourselfers can do their best work.

Current examples of Crescent innovation include its Pass-Thru™ Adjustable Wrench Set, Self Adjusting Pipe Wrench, Quick Convert™ Nut Drivers, 2-in-1 Combo Plier, Tongue and Groove Pliers with Nonmarring Grip Zone, and most recently, its 7-in-1 Quick-Convert™ Multi-Bit Driver with Universal Socket. Many of these products combine multiple capabilities into a single tool, saving users space, time and money compared to single purpose tools.

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.

of a T-handle. They easily change from straight handle for high-speed turning to T handle for maximum torque.

Wrench Set is

The Crescent 2-in-1 Combo Plier combines two essential wiring functions in a single tool. Flip the handles and the heavyduty Lineman’s Plier becomes a Wire Stripper/ Narrow Nose Plier.

ing tool that combines angled grips without slipping. Its ratcheting action, comhelp jobs

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.

Crescent Tongue and Groove Pliers with Grip Zone allow work on plated fixtures without damage. Handles have exposed steel tips that prevent grip pull-off and can be used for tightening tub drains, reaming and prying.

Driver

seven dedicated that turns over 40 SAE and Crescent QuickConvert Nut Drivers provide the speed of a straight handle driver with the torque

The QuickConvert MultiBit Driver has seven dedicated drivers and universal socket that turns over 40 SAE and metric fasteners. The QuickConvert feature allows switching from straight to T-handle for maximum torque. ■

The Hardware Conference

Retailersindependent

Brings Together

Health

Shanti and Craig

are looking forward to growing and improving The Hardware Conference for the

Now in its 28th year, The Hardware Conference in Marco Island, Fla., is the only industry event that brings the independent two-step channel together. This year’s event took place September 9-11 at the Marco Island Marriott, with retailers in attendance generally expressing optimism about business conditions.

Event founders Tom and Dale Chasteen were busy catching up with old industry friends, but they have passed on the mantle of leadership to Craig and Shanti Cope, who bring an infusion of fresh ideas and enthusiasm to an event whose motto remains “Where Relationships are Formed.”

Craig told attendees that he and Shanti are committed to doing whatever it takes to ensure the event stays viable and grows. “We will bring the same passion and drive to host a first-class, informative, interactive, entertaining and family-friendly event for everyone who supports the independent twostep hardware channel,” he said. “We are always open to suggestions on ways we can improve the Conference.”

An all-day Technology Forum was again held on Thursday, the day before the Conference officially opened. Epicor,

ECi Software Solutions and J-3 POS all held in-depth training sessions with their retail customers, helping them discover ways to operate more efficiently.

The highlight of this year’s Conference was the Friday evening banquet, where six of the industry’s best retailers were honored during the fourth annual Beacon Awards program.

Leading vendors participate with tabletop booths displaying their latest product innovations. Since the Conference is not a buying show dealers can learn more about the suppliers and their products without enduring high-pressure sales tactics.

Bob Resch of Bomberger’s Store in Lititz, Pa., a Beacon Award winner and first-time attendee with his wife, Dori, came away with a very favorable impression of the Conference. “Everything was first class and we

Left: During the Women in Hardware luncheon, Tom Chasteen presented Diane Allen, who is retiring from the industry, with a gift of appreciation for her important contribution in getting the Women in Hardware group up and running as well as her many other contributions to The Hardware Connection.

really appreciated the interaction we had with other dealers. It was an experience we won’t soon forget,” he said.

Saturday afternoon was left free so attendees could enjoy fun outdoor activities. Wooster Brush sponsored “A Day at the Beach” with free beach activities for Conference attendees. Minwax sponsored the shelling excursion and Krylon hosted its 28th golf outing.

“We had so much fun last year attending the Conference for the first time that we couldn’t wait to come back again this year. It’s a fantastic learning experience and I leave re-energized to improve my business,” said Mallia Evans of Brady and Cavany Ace Hardware in Tunkhannock, Pa., a 2015 Beacon Award honoree.

WOMen

in HaRDWaRe gROup

MeeTS

Women in Hardware, a group launched by The Hardware

Connection two years ago with founding sponsorship support from ECi, held a luncheon meeting on Saturday sponsored by ECi and Ettore Products.

Cathy Karabag, who serves as director of the group, encouraged attendees to provide ideas and feedback on what they would like to see the Women in Hardware group do. “Our goal is to build relationships and share successes,” she said.

During the luncheon, Althea Harris, assistant district director for marketing and outreach for the Small Business Administration (SBA), gave a presentation on the many programs and resources the SBA has available to help small businesses.

“SBA’s mission is to help entrepreneurs start, grow and succeed in business, serve as their advocates and help restore communities after disasters,” said Harris, who pointed out that 99 percent of businesses are classified as small. “When we say small businesses are the backbone of the economy, that’s no exaggeration,” she added.

When a natural disaster hits an area, SBA gets in right when FEMA

COMPANY PROFILE

3M IS A PROUD SPONSOR OF THE 2016 BEACON AWARDS

Innovation is a way of life at 3M™, and ideas are constantly in motion. Every day, we work to solve problems by applying creativity and ingenuity to make life easier. Take a closer look at the world that is around you, and you’ll soon discover that 3M innovation is just about everywhere.

3M™ is a global innovation company that never stops inventing. Over the years, our innovations have improved daily life for hundreds of millions of people all over the world. We have made driving at night easier, made buildings safer, and made consumer electronics lighter, less energy-intensive and less harmful to the environment. We even helped put a man on the moon. Every day at 3M, one idea always leads to the next, igniting momentum to make progress possible around the world.

The 3M Construction & Home Improvement Markets Division offers products for painting, decorating, repair, safety, and home environment for both DIYers and professionals.

ScotchBlue™ Painter’s Tape has introduced a revolutionary new interior tape this year, called PLATINUM, delivering a unique kind of durability that sets it apart

from paper tapes in the market. With our 3M advanced poly material, you can tear PLATINUM painter’s tape at a 90 degree angle for fast cornering and removal from the paint job in one piece, without tearing or slivering. Pull off a better paint job with just one pull and reveal great results with ultra-sharp paint lines.

Since 1996, Command™ Brand Products have been available for damagefree decorating and organizing. New to the line are metal bath and decorative picture hanging products. Command™ Metal Bath products are rust-free, hold strong in wet and humid conditions, and the classic satin nickel finish adds easy style to the bathroom. Command™ Picture ledges are a new addition, and help create a stylish gallery wall, without the need for nails and screws, damage-free.

Wall repair products include 3M™ Patch plus primer, a spackling compound

and primer in one, which eliminates the need to prime before painting. It creates a quick-drying patch. The repair will be virtually invisible under dried paint, giving you professional-looking results. The most recent addition to the product line is the 3M™ Patch plus primer 4-in-1 Applicator. It is a putty knife, a sanding pad, spackling, and primer all in one tool.

The newest thing in sanding is 3M™ SandBlaster™ Ultra Flexible Sanding Sponges. They channel dust away from the sanding surface. The sanding sponges are a 2-in-1 solution. The patterned side can be used for detail/ contour sanding, such as spindles, trim, and curved surfaces, and the regular side is for flat sanding. Made from premium aluminum oxide material, the Ultra Flexible Sanding Sponges last 5X longer than 3M conventional sanding sheets, and work for interior and exterior surfaces.

3M offers a variety of safety products for the professional and the DIYer, and recently added 3M™ Worktunes™ Wireless Hearing Protector with Bluetooth® technology that seamlessly streams music from mobile phones,

tablets, iPods® or any other Bluetooth® wireless technology enabled device. Safe volume control technology allows for increased volume, yet corrects to maintain safe levels over an 8-hour workday. Audio assist technology provides setup and operational guidance without having to remove the headset. The AM/FM digital radio has enhanced radio performance for clearer sound quality and it saves up to 50 stations. And, it has a vented headband design with removable padding for use with hats.

For 25 years, Filtrete™ Brand has delivered cleaner air to millions of homes, becoming a leader in residential air filtration. The newest innovation is Filtrete™ Dual-Action Micro Allergen Plus 2X Dust Defense Filter, which provides all the benefits of allergen defense plus the best dust holding power of any Filtrete™ Filter. This air filter holds two times more dust compared to other Filtrete™ Filters—that’s as much dust as 50 dusting wipes! It is designed with exclusive Filtrete™ Brand 3-in-1 technology from 3M to pull in and trap unwanted particles while letting cleaner air flow through. Make every breath count with Filtrete™ Filters.

3M is a proud sponsor of the 2016 Beacon Awards. n

The World’s Best & Cleanest Home Renovation Tools

No matter how big the job, Oneida Air Systems has a unique, patented product to help keep work environments operating safe, clean, & e ciently.

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three years to bring a new product to market, not counting the time it takes for product development. “Wholesale buyers are using the internet to check reviews and price points and as a proving point, otherwise we’re waiting for the next line review,” he said. “It costs us roughly $250,000 to bring a new item to market and we haven’t sold anything yet.”

Walter Toole of Toole’s Ace Hardware said he has handed out vendor samples to each of his nine managers so they can test the product before a buying decision is made.

Bill Pasternack of Ace Hardware in Titusville, Fla., said, “I get free samples in the store every day. I have boxes of product samples I’ve never opened. I’m a sucker for a 50 percent off deal for a new item.”

John Hammond of The Hardware Connection kicked off the discussion Sunday with a presentation on “Creating a Competitive Brand Advantage Amidst Rising Consumer Expectations.”

“Consumers today want it all— value, pricing, convenience and

selection,” Hammond said. “Your unique branding opportunity as independents is to manage your brand to demanding consumers and take advantage of the weaknesses of the big boxes.”

He added, “You don’t need to promise everything to everyone, but you have to deliver on what you promise.”

The service disconnect in the industry is glaring, Hammond pointed out. “Although 80 percent of companies believe they offer superior service, only 8 percent of the customers of those companies believe they offer superior service. It’s what the customer believes that determines your brand, not what you think,” he said.

Chasteen moderated the discussion by going around the room and having retailers share what their brand promise is to stand out with customers. Bobby Fuller of Fuller and Son Hardware in Arkansas said their goal is to be the best hardware store in Arkansas.

“We came up with the Triple Guarantee for price, selection and

Click Here to View Our Profile

service,” said Fuller. “The first component is we will match anyone else’s price for every item in the store. The second element is if we are out of stock on any item we will have it for the customer the next day with a 10 percent discount. The third component is if a customer walks in the store and is not greeted and asked if they need assistance within 60 seconds they get a 5 percent discount.”

Amy Pitkin of Pitkin’s Ace Hardware in Virginia said her family has sponsored a lot of youth sports teams over the past 30 years. “We have a wall with 30 years of sports team pictures, and we have a lot of people who come in to see their team picture from years ago,” she said.

Evan Bedford of Tavernier Ace Hardware in the Florida Keys said he took their bait freezer and placed on it a bunch of customer pictures with the fish they caught, which serves as inspiration to their fishing customers.

John Fix III of Cornell’s True Value in Eastchester, N.Y., said their mission is to provide outstanding service to friends and neighbors. “On our wall we have a picture of the store from the 1920s, which reminds customers our store has been around for over 100 years,” he said.

Resch of Bomberger’s said they want to be the best retailer in their market. “Our outside sign says ‘Dedicated to the things that last,’ and we have a plaque that shows the names of over 70 employees who have been with us for at least 10 years,” he said.

Perry Hahn of Hahn Ace in Wisconsin said they position a customer friendly coordinator at the front of the store every hour they’re open, who has a headset to communicate with other team members. “We also use pictures of us in our ads to show we’re family-owned,” he added.

Chasteen concluded, “You can’t win the brand battle on price along, because someone will always have a better price.”

THanKS TO SpOnSORS

Special thanks go to the marquee sponsors: The Hardware Connection magazine, The Hillman Group, Krylon, Minwax, Miami Children’s Health Foundation and The Wooster Brush Company.

The wholesale community also lends important support to the Conference each year, with representatives from Ace Hardware, Orgill, True Value and Do it Best in attendance and conducting meetings with their members.

At the end of the Conference the vendors auction off their display merchandise and the money raised is donated to the Miami Children’s Health Foundation. This year’s auction raised $26,370, bringing the total fundraising amount through the years to over $1.1 million.

Start making plans to attend next year’s Hardware Conference, scheduled for September 8-10, 2017, at the Marco Island Marriott. For more information, call Craig or Shanti Cope at (305) 853-0049 or go to www.thehardwareconference.com. ■

The honorees and sponsors of the 2016 Beacon Awards.

Beacon Awards Program Honors

‘The Best of the

Click to Check Out the Highlights of the 2016 Beacon Awards Program

Bobby Fuller of Fuller and Son Hardware said he is fortunate to be able to work every day with his two sons.

ix independent hardware retailers were honored with Beacon Awards during a special awards banquet held during The Hardware Conference in Marco Island, Fla., on Friday, September 9.

our business

At Do it Best Corp., we are fully committed to helping our independent member-owners achieve success that is meaningful to them. For Dennis and Sherry Bishop, it was taking the big step of relocating to a larger building to better position their company for growth. They used the Do it Best Corp. Retail Performance Loan Program and RetailSTART!® to help acquire the location and design and merchandise the store. Along with their daughter and son-in-law, they transformed Petersburg Hardware into a beautiful new 28,000-square-foot shopping destination, adding thousands of new items and many new categories. Sales are strong, solidly beating projections, and the Bishops hope their success inspires others to invest in their community to make it stronger for generations to come. Tell us how YOU defi ne success. Call us today at 888-DO IT BEST (364-8237).

Karen and Emily McCoy of Orme Do it Best Hardware; Rob Schmiedel of Do it Best Corp.; Debra and Brian Buswell of All American Do it Center.

hardware conference

The 2016 Beacon Awards were sponsored by Apex Tool Group, Epicor Software Corporation, Sunnyside Corporation and 3M, with wholesaler sponsorship support from Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Company.

The Beacon Awards honored the Retail Beacon Award winners for each of the four participating wholesalers, plus the Best New Stores in two categories: under 20,000 square feet and over 20,000 square feet.

The 2016 Beacon Award honorees include:

• Retail Beacon Award: Fuller and Son Hardware, Little Rock, Ark.; owned by Bobby, Jeff and JR Fuller.

• Retail Beacon Award: Murdale True Value, Carbondale, Ill.; owned by George and Diane Sheffer.

• Retail Beacon Award: Bomberger’s Store, Lititz, Pa.; owned by the Bomberger family.

Left: Paul Dupont of Orgill, Bobby Fuller of Fuller and Son Hardware and Chris Jensen of The Hardware Connection.

Right: Tim Hanna of True Value Co.; George Sheffer, Morris Arnold and Diane Sheffer of Murdale True Value; and Chris Jensen of The Hardware Connection.

• Retail Beacon Award; Orme Do it Best Hardware, Cambridge, Ohio; owned by Karen McCoy.

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• Best New Store, Under 20,000 square feet: Heuser Ace Hardware, Bluffton, S.C.; owned by Bobby, Bob and Renee Heuser.

• Best New Store, Over 20,000 square feet: All American Do it Center, Richland Center, Wis.; owned by Brian Buswell.

“We have an outstanding group of Beacon Award winners this year. They all share similar stories of being family-owned businesses marked by innovation, creativity, passion and

strong community involvement,” stated Chris Jensen, editor/principal of The Hardware Connection, who joined John Hammond as a presenter.

Hammond said the Beacon Award winners demonstrate that independent retailers are alive and thriving despite years of doom and gloom predictions.

“There’s no substitute for a well-run, independently operated hardware business, and our Beacon winners have all shown how to develop great stores that form a strong connection with their communities,” he said. ■

“I have a high opinion of the Epicor team. To a person they have my best interest at the core of what they do. They are knowledgeable, dedicated and professional. I’ve been impressed with every interaction I’ve had from initial sales calls and demos, to installation and now with continued phone and online training. They are the kind of organization that you want to work with or for.”

Russell Hornung, Co-owner | Hornung’s True Value

American Do it Center

Richland Center, Wis.

help

IN LATE 2014

BRIAN BUSWELL

opened his third ground-up store in Richland Center, Wis., striving to offer a modern shopping experience for a diverse customer mix. It features a 32,000-square-foot showroom and 25,000-square-foot warehouse with drive-through lumberyard.

Click to Watch All American Do it Center’s Beacon Award Presentation Video

SALES FOR 2015 CAME IN 23 PERCENT higher than expected and have continued to increase in 2016. The diverse customer base averages 60 percent d-i-y and 40 percent contractor.

The store features dominant niches in rental and outdoor power equipment, a 2,600-square-foot indoor lawn and garden/outdoor living area backed by an outdoor nursery, a complete

kitchen design department and a home decor department showcasing flooring, lighting, doors and windows.

High ceilings, wide aisles and visible signage give the store an inviting feel for pro and d-i-y customers. All American Do it Center utilizes a unique exterior design featuring two prominent entrances, including one facing an adjacent Walmart.

While the seed that would grow to become the new All American Do it Center was planted back in 2010, Buswell’s long-term vision for the company started humbly in the early 1980s. At the time, the business consisted of a tiny lumberyard and even tinier showroom, which measured all of 600 square feet. From that small start, however, his entrepreneurial vision and strong work ethic grew the company into something much larger and more successful.

By 2010, he was recognizing the need—and the opportunity—for a brand-new, ground-up location. Buswell began by reaching out to his co-op partners at Do it Best Corp. He worked closely with his Do it Best territory manager, as well as the co-op’s retail performance

Right: The 32,000-square-foot store features a racetrack pattern and clear sight lines to maximize traffic flow and visibility.

Above: The paint department’s color selection complements the 2,800-square-foot home décor area.

and store design teams, to conduct extensive market and site analysis, and also paid visits to fellow Do it Best member locations across the country.

This considerable prep work also examined market demographics and potential competition in six different communities. After all of this, Buswell zeroed in on Richland Center as the ideal location for his new home center. His other stores are located in Tomah and Sparta, Wis.

“We try to go into markets that are underserved by home centers,” Buswell explains. “There is no home center within an hour of us, so we try to be a one-stop shop for hardware, LBM and rental.”

With a location secured, Buswell turned to the development of the

Upper: Brian Buswell and his son, Jake, are proud that the store’s interior highlights the company’s history and long involvement in the community.

Lower: The drive-through lumberyard uses autostack technology that enables staff to locate, pick and load orders efficiently.

location itself, which took nearly two years. He took his time, again working closely with his co-op to arrive at an ideal layout and floorplan for the store’s interior. Overall, the building’s racetrack design and layout, which features a continuous loop around the store’s perimeter, optimizes traffic flow and customer visibility.

“We incorporated what was successful in our two other home centers and then found new niches that would draw traffic such as adding the farm and home category,” Buswell says.

Buswell also wanted to make sure the store felt local and independent inside. He and his design team incorporated a number of local- and community-themed images through the store’s interior, highlighting the company’s history and key place in the community.

Several departments stand out for their design, innovation and efficiency:

• Rental. The high-profile and sizable rental department offers both d-i-y and pro customers a wide range of products available to rent. The department covers about 2,000 square feet inside and several more thousand square feet through its connected outdoor section. No detail was overlooked— products are displayed on hand-made

An outdoor nursery is connected to a 2,600-square-foot indoor lawn and garden/ outdoor living area, giving customers a seamless, integrated shopping experience.

pallets that are painted and glazed to provide a high-quality look, and each product is both power-washed and

Do it Best Corp. Congratulates its Two Beacon Award Winners

All American Do it Center, Richland Center, Wis.—Best

New Store Over 20,000 sq. ft.

Owner: Brian Buswell

Orme Do it Best Hardware, Cambridge, Ohio—Retail Beacon Award

Owner: Karen McCoy

(Left to right): Karen and Emily McCoy of Orme Do it Best Hardware in Cambridge, Ohio; Rob Schmiedel of Do it Best Corp.; and Debra and Brian Buswell of All American Do it Center in Richland Center, Wis.

BEACON AWARDS: The Industry’s Awards Program

Left: Installation service is offered for the expansive selection of carpet and flooring.

Middle: Rental products are displayed on hand-made pallets and each product is power-washed and hot-waxed in a cleaning bay just like you would find at a car wash.

Right: Knowledgeable employees are focused on delivering personal service to pro and d-i-y customers.

lumberyard not only mitigates the potential impact weather can have, it makes the entire LBM purchasing and pick-up process much easier and more efficient. The yard features auto-stack technology that enables staff to locate, pick and load lumber and other materials without difficulty.

• Home decor. This 2,800-square-foot department rivals anything you would find at a big-box retailer. An expansive display showcases a breadth and depth of product selection, including carpeting and flooring, lighting, doors and windows. They offer installation on flooring.

• Lawn and garden nursery. This department benefits from the second exterior and faces the highway. Bulk landscape materials are available and

bulk bird feeders have proven to be a popular draw for bird enthusiasts.

bulk bird feeders have proven to be a popular draw for bird

Buswell’s son, Jake, is the manager of the new Richland Center location, and he is proud of the hard work put in by his entire team of 25 associates in getting the new store up and running successfully.

A detailed training program has been developed to train cashiers, back counter associates and yard staff. “The goal is to identify all situations that could happen to make sure they’re prepared,” Buswell explains. “Whether it’s an unruly customer, returning a product without a receipt, answering the phone properly, covering for someone who’s ill or a weather-related problem, I want to make sure they know what to do. And most of all, are we making a good first impression?”

He is humbled by the recognition of winning a national award like the Beacon Award for Best New Store. “There are so many outstanding retailers out there, so to be singled out for an award like this is just amazing. We are very appreciative and humbled,” Buswell says. ■

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Best New Store

Under 20,000

Heuser Ace Hardware Bluffton, S.C.

a hardware store together. Click to Watch

After successful careers as a chemical engineer, a schoolteacher and a bank vice president, Bob and Renee Heuser and their son Bobby decided to open an Ace Hardware store together along the coast of South Carolina. The store, which opened in March 2015, was designed to complement regional architecture with arched windows while having a Main Street feel.

It features a 10,500-square-foot sales floor with an attached garden center. Major niches include bicycles, STIHL power equipment, grills, pet toys and food, fishing, live goods and bird supplies.

The store has been a smashing success, as sales for the first full year were almost double the pro forma projections. In addition to winning the Beacon Award for Best New Store, Heuser Ace was named “Best New Business” in Bluffton and honored as one of Ace Hardware’s “Coolest Hardware Stores” for 2016.

A retired imagineer from Disney, one of only 38 people in the world certified to officially draw Mickey Mouse, was enlisted to design a unique exterior sign for the store. It features a mid-century steampunk design to evoke a World War II era feel for the store.

Top Right: Heuser Ace offers free grill assembly and delivers grills with a whiteglove service that wows customers.

Lower Right: A retired imagineer from Disney designed their unique exterior sign, which evokes a mid-century steampunk design.

Bluffton has a large retirement community that draws people from all over the country. The Heusers used an innovative way to screen applicants and allow them to focus on the top tier of potential employees.

Bobby set up a website and printed that on a business card. Whenever

someone came in asking for employment he handed them a card and said once he received their email, he would schedule an interview. For him to receive an email, the applicant had to go online, find the website, download the application, fill it out and then email it back.

Through thorough interviewing and this initial screening process their staff includes two PhDs in horticulture, a former European oil company president, a master electrician and a master plumber. New hires go on a scavenger hunt to learn where everything is and no associate gets to wear the Ace vest until they are Helpful Certified.

Customers now ask for Mike the bike technician by name, as well as Matt the STIHL guy. And they wait to buy their plants from Curt, who has a PhD in horticulture and was curator of the national botanic garden but now oversees the plants at Heuser Ace.

Tapping into Bobby’s previous employment as a consumer strategist with U.S. Bank, he researched the demographics of potential customers within the Bluffton area. He used his research to complete a 22-page business plan that included segmenting demographics so

Left: YETI® coolers and tumblers are prominently displayed by the front entrance.

Middle: As a result of carrying STIHL power equipment they have been able to grow their small engine repair business.

Right: Craftsman brand recognition helps draw traffic to the tool department.

he could determine products that would most likely appeal to the customers they would be servicing.

“We had a pretty clear vision of what we wanted to have in our store,” says Renee. “We looked around at other stores to see what sold, what looked nice and we brought it into our store.”

Bob and Bobby both have MBA degrees, so they brought a lot of ideas to the table even if they didn’t come from a retail background. “We followed the core competencies of our careers,” Bobby explains. “I followed my demographic background with a mix of quantitative analysis and marketing. Dad’s background was as a chemical plant manager, so he’s played more of a COO role in nailing down policies.”

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Renee ensures the merchandising and product assortment has a softer side that appeals to women and to families. The popcorn popper is going every weekend and old-fashioned candy is displayed by the checkout. “We designed the store to funnel customers in and then we change it up so they’ll want to browse,” she says.

A major emphasis was placed on grills, which has reinforced their image as a high-service company. “We deliver 95 percent of our grills with white-glove service that tells customers down to the minute when our truck will arrive,” says Bobby. “We’ll hook up the grill and even put the meat on so they don’t have to do anything.”

Within the community, they are a title sponsor for a local event called the Tiger Bass Race, which raises money for the Bluffton Self Help charity. They also attend the local home and garden show to gain exposure for the store and help embed themselves in the community.

“Service, convenience and quality are three things we hang our hat on. We know young active retirees desire service above everything, and they are a big demographic segment in this area,” says Bobby.

He adds, “We worked on this store for two and a half years to understand the market and what customers were looking for. We designed, built and stocked what we thought the right store was. Winning an award like this is validation

No associate gets to wear the Ace vest until they are Helpful Certified, which helps ensure the store delivers a high level of customer service.

Heuser Ace Hardware, which opened in March 2015, features a 10,500-square-foot sales floor plus an attached garden center.

that those ideas and vision we had really worked.”

“To pour your heart and soul, resources and time into a project like this and then get recognized for that is truly fantastic,” says Bob. ■

Retail Beacon Award

Orme Do it Best Hardware

Cambridge, Ohio

Jack McCoy (left) bought Orme Hardware’s original location in Cambridge in 1957. His son Dick (right) began working in the store in fifth grade and later purchased the business from his father in 1996.

FClick to Watch Orme Do it Best Hardware’s Beacon Award Presentation Video

or almost 60 years the McCoy family has owned and operated Orme Hardware, a retail institution in eastern Ohio dating back to the 1860s. Jack McCoy bought Orme Hardware’s original location in Cambridge in 1957. His son Dick, began working in the store in fifth grade and continued working there through college and beyond.

DICK PURCHASED THE BUSINESS from his father in 1996 and began buying and remodeling distressed stores, growing the business to seven Orme Do it Best Hardware stores by 2014. Sadly, Dick passed away this past March, a profound loss for his family and the communities in which they operate.

Dick’s wife, Karen, worked as a schoolteacher while he operated the

company and although they discussed aspects of the business, “It was his baby,” as Karen puts it. Thrust unexpectedly into a leadership role, Karen has relied on a strong support system and help from Do it Best Corp. to keep the business strong.

Her sister and brother-in-law, Beth and Mark Wharton, are managing two of the stores. Her daughter Emily is helping

Right: Karen McCoy (right) was unexpectedly thrust into a leadership role after the death of her husband, Dick, this past March.

Left: They are working on building up a strong team within the company and at each store to ensure future stability.

run a store while finishing college. In addition, her father and father-in-law are helping her make decisions about how to move forward.

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The Newark location was acquired and remodeled in 2011.

They are working on building up a strong team within the company and at each store to work through this difficult transition. Karen appreciates the extra attention she has received from Do it Best in her time of need. As she puts it, “Do it Best Corp. is truly a family. They value their members and do their best to help them succeed.”

Karen adds, “Dick always valued the many programs that were offered through Do it Best, and he was extremely proud and humbled to be offered the position on Do it Best’s board of directors in 2015. Although his time on the board was short, he was impressed with the level of commitment and knowledge of the industry from the other retailers on the board.

“Aside from being an astute business person and setting a great example for others, Dick was one of the kindest individuals I’ve ever met,” noted Do it Best Corp. President Emeritus Bob Taylor.

The McCoy family acquired a second store in 2001 in New Concord, 15 miles from the home store. It has a big birdwatcher following and even its own

Facebook page for it. “Dick liked a challenge and saw distressed businesses as an opportunity to bring life back not only into that store, but the buildings and communities as well,” explains Karen. “For him it was more than just a business deal.”

In 2003 they added a third store in Cadiz, which hit it big meeting the needs of the oil and gas companies in the area. A fourth store was added in Newcomerstown in 2007. It carries beekeeping supplies, which they have been slowly adding to other locations. The Berlin store, which was acquired and remodeled in 2009, caters to an Amish and tourist community.

The Newark location was taken over in 2011 while the seventh store was added in Arcanum in 2014. It is by far the largest location with 19,000 square feet of retail space. The original store in Cambridge features a 10,000-square-foot sales floor. Instead of growing more through acquisition, Karen plans to focus on individual store improvement. All stores will be switching to a new POS system by the end of the year. The Cambridge store will be undergoing a Signature Store redesign through Do it Best. The Newcomerstown location will be getting

Left: As Karen McCoy explains, “Without customers coming in the door every day, we are all out of a job. Our employees don’t just point you in the direction of the product, they take you directly to it and answer any questions you might have.”

Right: Beer and wine making supplies have emerged as top sellers in the Berlin store.

a small facelift with a new coat of paint on the exterior. The Cadiz store is rearranging signage to better present the store to passing traffic.

According to Karen, Dick’s impact will be felt for generations to come in the communities in which they operate stores. “He made it a point to be involved in every one of the communities, whether it be through 4-H, Boy Scouts and Girl Scouts, Habitat for Humanity, school programs or Rotary Club. But the best things were what he did quietly, while no one was paying attention,” she says.

“The Beacon Award means a lot not just to our company, but myself as well,” Karen adds. “It is a tribute to my husband and all the many years of hard work that he put in to make this company all that it is today. He truly loved what he did, and I think that is evident through this award. He would be very honored and surprised to receive this award.” n

Ace Hardware Corp. Congratulates its Two Beacon Award Winners

Heuser Ace Hardware, Bluffton, S.C.—Best New Store Under 20,000 sq. ft.

Owners: Bob, Renee and Bobby Heuser

Bombergerʼs Store, Lititz, Pa.—

Retail Beacon Award

Owner: Bomberger family

(L to r): Bob Sheldon and Phil McClellan of Ace Hardware Corp.; Dori and Bob Resch of Bomberger’s Store; Bobby, Renee and Bob Heuser of Heuser Ace Hardware; and Ben Battaglia, Dave Atkins and Stephen Holly of Ace Hardware Corp.

BEACON AWARDS: The Industry’s Awards Program

Honoring the Best Retailers

Retail Beacon Award

Bomberger’s Store Lititz, Pa.

of

including the

and café. Her

BClick to Watch Bomberger’s Store Beacon Award Presentation Video

omberger’s Store dates back to 1887, when Phares Bomberger bought out a small trading post in Elm, Pa., and renamed it Bomberger’s General Store. Over the years, the family-owned store grew by continuing to offer new and exciting niches to meet the needs of a growing populace. A new store was built in 1972 that doubled both space and sales and featured further expansion into hardware.

In 1994, Bomberger’s opened a new 64,000-square-foot store two miles away in the town of Lititz. In addition to a 20,000-square-foot Ace Hardware store,

the expanded space contained a full kitchen and bath design center, flooring showroom, John Deere dealership, gift department and rental shop.

Bomberger’s is like a modern country store, offering all the items modern shoppers want. It also retains its roots as a grocery store, operating a wholesale division that imports 2,200 pound bags of sugar and 100 pound bags of salt and then sells them wholesale to bakeries around Baltimore and Washington, D.C.

Bomberger’s remains a family owned and operated store, with 12 members of the family currently involved in some aspect of the business. Fifth-generation

Left: The lawn and garden and outdoor power equipment division is the largest in the company, with seven full-time technicians for the repair shop.

family member Dori Resch oversees the front end of the store including the gift shop and café. Her husband, Bob Resch, is president of the company, while their son, Andrew, works in the lawn and garden department.

Right: In 1994, Bomberger’s opened a new 64,000-square-foot store that features a 20,000-square-foot Ace Hardware store.

Their daughter, Nicole, along with husband Will Rothenberger, represent the sixth generation. Will oversees the online John Deere parts business, which has far exceeded their initial expectations.

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Roy Bomberger is the sole representative of the fourth generation of the family, and he helps oversee the full kitchen and bath design center, which ensures the store is a destination for homeowners and remodelers. The complete flooring department offers everything from tile, hardwood, laminate and carpet to area rugs.

Roy’s daughter, Emily, along with husband DJ Weaver, are part of the fifth generation of the family that has been setting the standard for customer service for 129 years. A detailed succession plan is in place to ensure the business continues to be family owned and operated for many more years.

A full kitchen and bath design center ensures the store is a destination for homeowners and remodelers.

Todd and Beth Bomberger also represent the fifth generation of the family, along with Rich Bomberger and his wife Jenny.

The company’s mission statement stresses that Bomberger’s is family owned and intends to stay that way; will try to serve all with integrity, honesty

as long as they were trying to improve the business,” says Bob. “We never turn down an opportunity to encourage ideas.”

The large gift department in the front of the store helps attract female customers.

and truthfulness; values every individual; and strives to be good stewards with the blessings God has given them.

Another key to their success has been a successful partnership with Ace Hardware. “Ace has been a big partner for us,” explains Bob. “They push us to improve with their programs like Pinnacle and 20-20.”

Being in the rental business helps diversify their revenue stream and reinforces their reputation as a one-stop shop. “In 2007 our design center took a hit when new home building stopped, but we were bailed out by other areas of the company,” Bob explains.

In addition to the design center, the large gift department in the front of the store helps attract female customers, as well as events such as the annual Ladies Night.

Another traffic builder near the front entrance is The Elm Tree Café. It used to be operated as leased space, but the management team kept hearing complaints and it wasn’t being run to Bomberger standards, so three years ago they decided to get into the café business and have turned that area around.

Bomberger’s 150 employees are empowered to think outside the box and suggest ideas. “One of the biggest reasons for our success is we allow managers and employees to make mistakes,

Last year proved to be a milestone year for Bomberger’s, as the retailer exceeded $25 million in sales for the first time, up 8.9 percent from the prior year. They plan to launch an updated website by next year that will integrate e-commerce capability.

Just as it has for 129 years, Bomberger’s remains engaged with the community, holding events like John Deere Days, supporting the Children’s Miracle Network hospitals and hosting Kids Club activities.

Winning the Retail Beacon Award is something to be very proud of, explains Bob. “It’s a reflection on the work ethic of the family and all the employees in the business. It’s nice to be recognized for our accomplishments, but we’ll keep looking for areas to improve,” he says. ■

Award Retail Beacon

Fuller and Son Hardware

Little Rock, Ark.

Fuller and Son Hardware started out in 1921 when Walter

“Pop” Fuller opened a feed and plow store in Little Rock, Ark. Still family owned after 95 years, the business today features six high-performance hardware stores that are closely connected to the neighborhoods they serve.

Click to Watch Fuller and Son Hardware Beacon Award Presentation Video

Fuller and Son Hardware is still family owned and operated after 95 years.

In 1985 Bobby Fuller was a musician with his own successful band when he got a phone call that changed his life. His father, Walter, wanted to know if he would be interested in taking over the family hardware business. Bobby’s three other brothers had already turned down the opportunity.

As Bobby recalls, “I said I was very interested and it ended up being one of the smartest things I ever did. There are

In 1985 Bobby Fuller gave up a promising music career to take over the family hardware business, a move he calls the smartest decision he ever made.

Hardware’s prices are competitive with the big boxes. JR designed and built the Price Match Center kiosks and implemented them in all six stores about a year ago. According to Bobby, “It’s the best thing we ever did. Orgill’s variable pricing program is so good it allows us to do this. If you’re going to be price competitive you might as well take advantage of it.”

Fuller and Son’s sixth and newest store opened in December 2014 in an affluent neighborhood called The Heights.

never any guarantees in music, but in retail and hardware, the harder you work, the better you do.”

Bobby’s sons, Jeff and JR, are active in the business as co-owners. Jeff, the oldest, is the creative inspiration behind the company’s award-winning TV commercials, while JR oversees day-to-day operations.

Bobby appreciates being able to work with his sons every day and says it’s unusual to have all your family in the same city. “The worst part and best part of having them involved in the business is that they are smarter, quicker and have better ideas than me,” he jokes.

Jeff came up with the idea to have a Price Match Center to demonstrate to customers that Fuller and Son

Five years ago the Fullers came up with the Triple Guarantee for price, selection and service. The first component is they will match anyone else’s price for every item in the store. The second element is if they are out of stock on any item they will have it for the customer the next day with a 10 percent discount. The third component of the Triple Guarantee is if a customer walks in the store and is not greeted and asked if they need assistance within 60 seconds they get a 5 percent discount.

By the time a second Little Rock store was opened on West Markham in 1970, Fuller and Son Hardware had begun buying from Orgill, a successful partnership that has been going on for over 50 years. “I’ve never asked them to do anything that they haven’t been willing to do for me,” he says. “They’ll even add items to inventory for us.”

After buying the business from his father in 1985, Bobby opened a third

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Middle: Price Match Center kiosks have been installed in all six stores to demonstrate to customers that Fuller and Son Hardware’s prices are competitive with the big boxes.

Little Rock store in 1988. A fourth store was opened in North Little Rock in 1993 featuring an 8,000-square-foot sales floor. In 2003 a new downtown location was opened as their fifth store, featuring a 6,500-square-foot sales floor.

The main store on Baseline Road is the largest at 20,000 square feet and features a full lumberyard in back that serves as a restocking center for the lumber and building materials sold in the other locations.

Fuller and Son’s newest store opened in December 2014 in an affluent neighborhood called The Heights. They were able to stock 7,000 square feet of merchandise in 4,500 square feet of space by using innovative sliding racks. Each of the six stores carries the same inventory, although managers have the flexibility to request specific items for their locations.

Rental is one of the biggest niches at Fuller and Son Hardware. To complement their outdoor power equipment business, they began offering small engine repair a few years ago and that has been very successful. The fastener center features a deep selection to appeal to both pros and consumers.

Right: Five years ago the Fullers came up with the Triple Guarantee for price, selection and service.

Left: Bobby Fuller’s sons Jeff and JR are active in the business as co-owners. Jeff (left) is the creative inspiration behind the company’s award-winning TV commercials, while JR (right) oversees day-to-day operations.

Fuller and Son Hardware was recently named “Best Hardware Store” in the area by a local publication, reaffirming their 95-year tradition of focusing on service. They set aside a certain percentage of profits for charity and support organizations like Habitat for Humanity.

Sales continue to grow and future expansion is likely, with the business positioned in good hands with the fourth generation of the Fuller family.

While Bobby Fuller is honored and flattered for his family business to be named a Retail Beacon Award winner, he knows future success is not guaranteed unless they continue to innovate. As he puts it, “If you’re not moving forward, then you’re backing up.” n

Winner

Fuller and Son Hardware, Little Rock, Ark.—Retail Beacon Award

Owners: Jeff, Bobby and JR Fuller

Orgill’s Paul Dupont (left) and Juan Pacheco (right) with Bobby and Carolyn Fuller of Fuller and Son Hardware in Little Rock, Ark.

BEACON AWARDS: The Industry’s Awards Program

Honoring the Best Retailers

Retail Beacon Award

Murdale True Value started out with a 10,000-square-foot sales floor, but Owner George Sheffer kept expanding until it now features 28,000 square feet of indoor and outdoor space.

Murdale True Value Hardware

Carbondale, Ill.

George Sheffer has been in the retail hardware business since 1979, when he worked in partnership to operate hardware stores in Harrisburg and Carbondale, Ill. He eventually became sole owner of the Carbondale store, Murdale True Value, and later sold the Harrisburg location so he could concentrate on the greater potential of the Carbondale store.

His wife, Diane, has been involved the entire time as bookkeeper for the business, which was named “Best Hardware Store in Town” by True Value for 2015.

Murdale True Value started out with a 10,000-square-foot sales floor, but Sheffer kept expanding until it now features 28,000 square feet of indoor and outdoor space. The store features four distinct businesses: hardware, rental, appliance, and lock and locksmith. Sheffer employs five full-time Click to Watch

George Sheffer has been in the retail hardware business since 1979.

locksmiths and can handle anything from safes and master keys to auto chip keys.

The Just Ask Rental department offers tools and construction equipment but is also big in party supplies and inflatables. They do lots of weddings and are the main supplier of tents for tailgating and other events at Southern Illinois University in town.

Sheffer belongs to the BrandSource buying group for major appliances, which allows him to remain competitive in the category against the big boxes in his trade area. Since his town is not growing he has to look closely at the appliance brands he carries. He recently dropped one appliance brand to bring in another more recognizable brand.

The staff of 30 is dedicated to giving friendly “customer delight,” not just customer satisfaction, and associates are paid to take ongoing training courses. Store meetings are held every Friday morning at 6:30 to keep everyone informed of upcoming events and promotions. Department heads are on commission and go outside the business to call on commercial customers.

Murdale True Value adopted the Destination True Value format and underwent a complete remodel in 2012 and 2013. New gondolas and new lighting were installed, making the store brighter and easier to shop as well as

Top: Murdale True Value adopted the Destination True Value format and underwent a complete remodel in 2012 and 2013.

Middle: Murdale True Value was recognized as one of True Value’s “Best Hardware Stores in Town” for 2015.

Bottom: The Just Ask Rental department offers tools and construction equipment but is also big in party supplies and inflatables.

The store features four distinct businesses: hardware, rental, appliance and lock and locksmith.

more female friendly. The entire assortment was scrutinized and tweaked to ensure dominance in core categories.

“For an independent retailer to be successful, you need to have items that make you a destination,” says Sheffer. Murdale True Value is known to have the largest selection of nuts and bolts in southern Illinois. The knife selection is huge and the furnace filter selection is so large it is the store of choice for HVAC contractors. About 2,000 square feet is devoted to grills and barbecue accessories. A grill is set up outside the store every Saturday to cook food and wow customers.

Sheffer believes there are four legs to a successful business: customers, employees, financial backing and a good supplier. True Value has been his partner in the business since the beginning and he credits them with showing him how to get into the rental business, training his staff, attracting customers with monthly promotional flyers,

modernizing his store and coming to his aid when 100 mile-per-hour winds knocked power out for a week.

Murdale True Value puts on big events such as Safe Halloween, which attracts thousands of kids, and holds fundraisers for the local pet shelter and other charities. Product and project demonstrations are held in the store every Saturday from 10 to 2. “We’re very involved in the community. It’s another way to distinguish ourselves from other stores,” Sheffer says.

While the business continues to grow sales, Sheffer is more concerned with growing profits. He looks closely at his POS data and evaluates turns and gross margin return on inventory. Although he was selling a lot of riding mowers, it wasn’t profitable so he dropped the category. Sheffer constantly looks for ways to make incremental improvements in each of his four businesses.

Sheffer is fond of the saying: “You’re only as good as the people you surround yourself with.” He views his job as taking good care of his employees and credits his success to them. His manager, Morris Arnold, who is retiring in December, has been with him for more than 30 years, and Sheffer brought him along to The Hardware Conference in Marco Island as a thank you for his years of service.

“It’s always nice to have your store picked out for recognition,” Sheffer says, “but I’ve had a lot of help along the way.” n

sUnnYside COrPOrAtiOn is A PrOUd sPOnsOr OF tHe 2016 BeACOn

AWArds

innOvAtive PrOdUCts FOr tOdAY And tOmOrrOW

From its humble beginnings in 1893, to the present, Sunnyside remains family-owned and operated for 123 years. Through four generations, Sunnyside’s core values have not changed. Always offer customers innovative, high-quality products coupled with unparalleled customer service.

Henry Lueders founded H. Lueders & Company in 1893 on the north side of Chicago distributing kerosene and other oils from a horse-drawn wagon.

By 1920, the company expanded to a new location on the northwest side of Chicago, and changed the company name to Sunnyside Corporation.

In 1928 Sunnyside pioneered the packaging of solvents and chemicals into consumer-oriented containers.

Those early containers reflected the yellow and black graphics theme that has evolved into the highly recognized Sunnyside packaging of today.

Now, under the leadership of Robert Lueders, the great-grandson of the company founder, Sunnyside continues to aggressively move into new markets, expand its customer base and introduce new products.

Sunnyside products are available for sale in every state, and are formulated

Sunnyside Corporation’s main manufacturing facility is in Wheeling, Ill.

to meet or exceed all current environmental regulations.

Sunnyside continues to improve and expand its manufacturing facility, with significant on-going capital investment in automated equipment and high-speed filling lines.

Sunnyside’s manufacturing and distribution facility is centrally located in Wheeling, Illinois. Sunnyside also has a distribution center in Southern California, facilitating timely shipments throughout the Western United States, Canada and Mexico. Quick turnaround, timely shipping, high levels of product quality, flexibility and urgency in addressing the needs of its customers are important to Sunnyside.

Sunnyside’s main manufacturing and distribution facility is centrally located in Wheeling Illinois. Sunnyside also has a distribution center in Southern California, facilitating timely shipments throughout the Western United States, Canada and Mexico.

Sunnyside carries a full line of retail thinners, solvents, paint removers, cleaners and mildew treatments marketed under several brands including Sunnyside, ProSolutions, Green Envy, Back to Nature, M-1 and 2-Minute Remover. Sunnyside’s product lines, which are available for sale in every state, are positioned to meet or exceed environmental regulations across the country and customer needs.

Sunnyside carries a full line of retail thinners, solvents, paint removers, cleaners and mildew treatments marketed under several brands including Sunnyside, ProSolutions, Green Envy, Back to Nature, M-1 and 2-Minute Remover.

Sunnyside made in America, and proudly serving the paint and hardware industry for over 123 years. n

“Innovative Products for Today and Tomorrow,” Sunnyside’s hallmark for over 120 years.

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Key Points to Consider During

Succession Planning

By Gary Pittsford, CFP®

One way or another it always happens. Changing your lifestyle and letting go of your business is hard to do, but it is always part of every business owner’s career. After spending decades building your company, letting go can be intimidating. Your business is probably the single most valuable asset you own, but developing a plan that gives you liquidity and retirement income security is important for the next phase of your life.

What will you do? Who will manage the business and continue your legacy? How do you transition the business? When? And to whom? These are questions you may be thinking about, and if you are not, then you should be. Don’t feel like you are alone; most business owners have the same questions.

Working With your Family

Developing a succession plan involving some of your family members is one option. Otherwise, you may be forced to look for someone outside the family to buy the business.

If you have a strong family candidate who can take over the business, then you need to develop a three- to five-year plan to train that person in every facet of the company. Basically, over the next three to five years you should change your position from strictly president of the company to being the “family coach.”

I am sure that over the last 30 to 40 years you have trained a lot of people in the company, and some of those people have stayed with the company and some have left. Now your biggest coaching job is training one or two of your children to handle every facet of the business.

It’s important that you let go a little bit and let the children come up with new ideas and run the different parts of the business. As a coach, you have to let your players get knocked down once in a while, and your job is to point out what they did wrong and help them to not make the same mistake twice. You are not just the president or parent now, you are the coach, so act like one.

At the end of the three- to five-year “coaching period,” one of your children should be promoted to president of the company, and perhaps other children should be vice presidents of different divisions. Once the training is complete, you should step down as president and at that point possibly become chairman of the board, a consultant, a special project manager or completely retire.

Cleaning uP the ComPany

It’s important to clean up your income statement and balance sheet. The old adage “putting your best foot forward” applies here too. You want the company to be financially strong and over the next few years look as good as possible. Whether you are selling to a family member or a stranger, the company needs to be at its peak performance.

Valuing the ComPany

Have you considered getting a valuation for the business? A valuation will definitely be needed if you plan to gift any stock in the company to family members or key managers. It will also be helpful if you negotiate with someone outside the family for selling the business. It will also give you important cash flow and profitability information that will be needed by a potential buyer and your children.

QueStionS you Should aSk yourSelF

1. What Next?

When it is time to retire and stop being the coach, you do not have to

necessarily go fishing or play golf every day. You could remain on the payroll and be helpful to the company in many ways. As the retiring president, you could become chairman of the board and be paid for that position over the next five to 10 years. Also, you could be paid to be the key contact for several important customers.

One or two times per year, you could be the company ambassador, responsible for entertaining customers at lunch or at a golf game. You may agree to a consulting contract, allowing you to negotiate with vendors and for real estate leases with larger real estate landlords.

The company could also continue to pay you to manage all of the maintenance for the properties that the company occupies. Your retirement security may also include income for several years from different compensation agreements or non-compete agreements.

It is usually helpful to stay involved for a short time after retirement. Your knowledge of the company and your experience can be vital to the new leaders. They may need you as a “company coach.” During this three- to five-year transition period, you also want to think about what you want to do during the next phase of your life.

Some people improve their golf or tennis game, and others spend time traveling. Many retired business owners start new hobbies. There is an excellent chance, if you are 60 years old, after you transition the business to the next owner,

Family buSineSS iSSueS

you could live for 30 more years. What will you do with those years of freedom?

2. When to Start?

As I implied earlier, you should start this transition/succession plan at least three to five years before you want to leave the company. Starting the process 10 years ahead of time is even better. Give yourself as much time as possible to become a good coach in order to teach your children, or key managers, all of the facets of running a closely held business.

If you are going to sell the company to someone outside the family, then I would suggest that you spend three to five years thinking about what you want to do for the next 30 years. If you spend 100 percent of your time running the company and you don’t think about the next 30 years, it becomes a huge shock to your system when all of a sudden you have sold the company and the new owner says next Monday you are no longer needed.

If you are between 50 and 60 years old, now is the time to start drafting a blueprint for the future of the company. Make the company as profitable as possible, train your children to run the company or start looking for a buyer.

What you do for the company and yourself over the next three to five years will have a huge impact on the following:

• How much you sell the company for.

• How prepared you are to become a good family coach.

• What you plan to do for the next 30 years.

• How successful the next business owner will be.

• Reducing the income taxes when you sell the business.

3. Why Start Now?

Why should you start thinking about a succession plan at this time? Because it is important for your next 30 years, and it is also important to your children, all of your employees and to the value you receive from selling the business.

This plan for the future is like a blueprint. When someone remodels their home, a blueprint is always prepared by an architect or contractor. It is only logical that a blueprint is needed when developing a succession plan for your company, so start developing that blueprint and making it a reality.

You want to protect the company and the employees. And you want to maximize your retirement income and security for all of your family members inside and outside of the business. In order to protect everyone, you need to start designing that blueprint now.

4. Where Do I Start?

You have two primary areas to focus on to start designing a new succession plan. As I implied before, step one is to

decide who will be the next owner of the company. Will it be one or more of your children, or will it be someone outside the family?

If you decide to involve your children, then you should become a coach over the next three to five years. If the new owner will be someone outside the family, then you should start looking for potential buyers. You do not need to contact them today, but you need to make a list so you know who the potential buyers might be later.

While you are thinking about the new owner and who will own all of the corporate stock in the future, start concentrating on your business. Make it more profitable. Increase the gross margins. Reduce corporate debt by refinancing it at the lowest interest rates. Make sure your supervisors and managers are well trained.

Soon you should have a meeting with your accountant or financial advisor to discuss the corporation and how to minimize taxes when the company is sold. Is your company a “C” corporation, “S” corporation, or limited liability company? Taxes will affect each of these differently.

For example, for a “C” corporation you need to know how much tax it will pay and how much tax you personally will pay if the company assets are sold. You want to know what the depreciation recapture will be if the company assets are sold.

You are going to be selling one of your largest assets in a few years and you should have an estimate of what

the taxes could be and you need to know all the different ways you can minimize that tax.

Having a tax discussion on the possible sale of the company is something most business owners don’t do until the week of the sale or the week after the sale is made. If you wait until the last minute to think about tax planning it may be too late to reduce that large tax bill.

When you start thinking about selling the company or transition it to the next generation you need to start giving a lot of thought to each of your children, your employees and the financial strength of the company. That is usually the best place to start. Take a hard look at the company and a hard look at the family and try to pick who would be the best individual to run this company for the next 30 years.

If you can answer these questions, then you will be maximizing the future success of the company and also maximizing your income security and your total family wealth. n

Gary Pittsford, CFP®, is

president

and

CEO of Castle Wealth Advisors.

Castle specializes in helping families and closely-held business owners with valuations, succession planning, estate and income tax analysis and retirement income projections. Gary is the author of “Your Family Business, Your Family Net Worth.” For more information visit www.castle3.com , call 1-888-849-9559 or email Gary@Castle3.com .

Sponsors:

Presented by:

Co-Sponsors:

Thank You to the Beacon

Awards Sponsors

The Beacon Awards program is an annual event honoring the best retailers in the industry. They are made possible by the generous support of sponsors who recognize the importance of honoring those retailers who represent the future of the two-step channel.

This year’s Beacon Awards were sponsored by Apex Tool Group, Epicor, Sunnyside Corporation, 3M, The Hardware Conference and The Hardware Connection magazine. They were also co-sponsored by Ace Hardware Corp., Do it Best Corp., Orgill Inc. and True Value Company.

STORE LIGHTING Upgrading Your

By John Fix III

As stores ramp up sales of LED lights, many retailers are discovering the energy-saving advantages of upgrading their store lighting. Bruce Phillips of Crowder Bros. Ace Hardware in Lakeland, Fla., remarked that they are going to relamp their store with LED bulbs this year. “My question to those that have done the same is if you converted from 8’ T12 fluorescent bulbs, did you go with 2-4’ LED bulbs or the 8’ LED bulb? I understand there might be a slight savings by lighting with 4’ bulbs over using 8’ bulbs and now I’m seeing these new 4’ and 8’ LED lighting strips that don’t use an actual bulb, it’s just the LED diodes contained within the fixture. They’re rather pricey,” he posted.

Kelly Voss of Farm City Supply in Breckenridge, Minn., responded, “You may want to check with your utility company regarding rebates. We converted from 8’ T12s to 4’ T8s several years ago. Now we are looking at switching to 4’ LEDs, but as I was looking through our utility’s rebate form I don’t see 8’ LEDs as an option for a rebate. We have a couple of 8’ T12s that were never converted, so it looks like I may need to switch them to 4’ LEDs to get the rebate

hardlines digest

When Mike Zettler opened his family’s fourth store in Powell, Ohio, in 2009, he made sure the 26,000-square-foot building incorporated a number of sustainable green initiatives. Zettler Do it Best Hardware features a white roof outfitted with high-tech solar tubes that reflect the sun and operate as daylight harvesters, keeping energy costs down since the air conditioner and heat don’t need to run as frequently.

on everything. Have you looked at the new 4’ Westinghouse ballast bypass bulbs through Ace? I think that’s what we’re going to use. It’s still a chunk of change, but with the rebate it gets down fairly reasonable.”

Randy Patzer of Garden City Ace Hardware in Michigan added, “You have to watch the tombstones (the ends) if you go with the Westinghouse Ballast Bypass. All the newer fixtures

Left: In addition to bright lighting throughout, Woodland Do it Best Hardware and Home in Woodland Park, Colo., incorporated a large window into the front of the store to allow natural light to shine through.

Right: Zettler Do it Best Hardware features interior lights that brighten and dim automatically depending on the amount of sunlight that day, while motion detectors in all offices and the break room ensure no light is wasted. Light reflective floors add to the energy savings.

have shunted ends (both contacts connected internally). To use the Westinghouse you need the ends that are not shunted so you can have both hot and neutral on the same tombstone. Of course, if you are putting in the 4 bulb conversion kit, you can get them with non-shunted ends. Converting to new fixtures will last the longest but give you the longest payback time period as well.”

Patzer added, “Another thing to consider is what is involved in replacing the fixtures. If it is one for one, then replacement might not complicate things too much. But 15 years ago when we replaced all the 8’/2 bulb fixtures with 8’/4 bulb fixtures it was a huge project. Nothing was able to drop in place of the old. We spent months

reworking and rewiring the entire store. So when we did the LED conversion we went with the Feit Ballast Bypass. It would take anywhere from 20 to 45 minutes to convert a fixture. The time depended on moving ladders and the scaffold. If your lights run with the aisle it is much easier. If the lights run perpendicular to the aisles then everything takes much longer.”

Tim Pruitt of Avilla Hardware in Arkansas posted, “I relamped our small (4,000-square-foot) store this past spring. Over the years, many prior to my ownership, we had wound up with a mix of 8’ surface-mounted fluorescents and 4x2 troffer fluorescents, which looked bad. I went with all 4x2 LED troffers with the strips of LED diodes, installing 49 new fixtures. I have been very pleased with the conversion.”

Rick,Schwartz of Schwartz Ace Hardware in Fall River, Mass., pointed out six factors to consider.

1. Age of your ballasts—many old ballasts need to be recycled and a determination of what type of ballast to use next.

2. There are only 4’ LED bulbs to work with but with different lumens.

3. Can your present fixture be retrofitted with shiny shields?

4. Most important, see if your utility company has an auditor and program to refixture your place at a nice savings versus doing it yourself. The overall cost saved me 75% by using their sources and recommendations.

5. The savings on electricity was great.

6. Will probably make your store brighter and the program usually includes outside fixtures as well.

Steve Beeson of Beemun’s Variety & True Value in Soldotna, Alaska, added, “I refixtured the store in 2008 from T12 to T8. That involved 155 troffers and 40 8’ (4, 4’ bulbs) fixtures. I bought through Cooper Lighting and the new 8’ fit in just fine with existing conduit, we just had to take apart a whole run at a time. In 2015 I bought Philips Instafit LED lamps. I was really glad to not have a mixture of lamp lengths and the newer fixtures meant I didn’t have to mess with new ballasts or tombstones. I personally would put in new fixtures as the time involved will be similar and I would go with 4’ bulbs.”

John Morrell of Morrells Hardware in Greenville, Maine, commented, “We relamped with Feit ballast bypass bulbs last fall and could not be happier. The bulbs cost $6,400 with us doing the installation. It was a big bite of money at first with $140 a month less on the power bill. The big payoff is

hardlines digest

customer reaction. After you are done many customers will ask ‘What’s different?’ It’s actually a great way to remodel your entire store without that much effort. We thought it was a big deal getting rid of the 96” big tubes (some were over 20 years old) and going to T8. Going LED is light years ahead of anything else.”

Susan Miller of Bob’s True Value in Whiting, N.J., posted that changing store lighting can have unintended consequences. “My youngest son is an engineer. When his office changed to LED lighting the frequency of his migraines increased tremendously. He explained to me that LED lights actually flash on and off though you are unaware of it. Flashing light is a common trigger for migraines. We relamped our store through the NJ Clean Energy Program four years ago, going from 8’ to 4’ fluorescents. Another son who works with me had a marked increase in his migraines, which continues to this day because the new lights are so much brighter than the old ones. He wears sunglasses in the store when the lights bother him.” n

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 .

categorY report

PLUMBING TRENDS

Sales of Toilet Repair Parts (Independent Hardware Channel) 12 Months % Change vs. Year Ago Toilet Repair Parts:

Toilet Repair Parts:

Unit Sales Breakdown for Toilet Repair Parts

plumbing buYing update

• Millennials outspend other age groups when remodeling their bathrooms, according to research conducted by The Farnsworth Group for the National Kitchen & Bath Association. Millennials spend 42.3% more than the $11,364 normally allocated to remodel a bathroom.

• When purchasing bathroom products, younger generations value internet searches and information from friends and family members more than other age groups.

• In the bathroom, the cost of a product is paramount for millennial buyers when compared to other generational groups.

• Paula Kennedy, a certified bath designer from Seattle, notes several trends: brass and brighter tones; polished metal and matte black finishes on faucets; and one-person, smaller freestanding soaking tubs.

• Mike Hetherman, a certified designer from Ontario-based Willis, notes the resurgence of matte finishes as well as atypical shapes for fixtures,

Left: Bomberger’s Store in Lititz, Pa., features a complete Design Center that can go from initial concept to design and installation of a major bath project.

Right: All American Do it Center in Richland Center, Wis., stocks a wide variety of options for remodeling a bath.

innovative use of materials and domeshaped and rounded sinks.

• Global demand for plumbing fixtures and fittings was estimated to rise 6.2% in 2016, according to research by The Freedonia Group.

• For those remodeling a bath, Sherwin-Williams announces that Poised Taupe (SW 6039) is the 2017 Color of the Year. Poised Taupe is a weathered, woodsy neutral that brings a sense of coziness and harmony, according to Sue Wadden, director of color marketing for Sherwin-Williams.

• Neutrals are beginning a transition from the monochrome gray of the past five years to a more complex taupe and brown. In a recent homeowner survey by Sherwin-Williams, nearly 40% of respondents agree that they would like to incorporate warmer neutrals, such as warm grays, taupes or beiges, into their home décor. ■

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

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

Who’s Eligible to Join?

• Independent Hardware Store Owners and Managers

• Vendors Involved in the Two Step Hardware Industry

• Service Providers Involved in the Two Step Hardware Industry

• Wholesalers/Distributors

• Industry Professionals

For more information:

Cathy Karabag

Activities

• Membership benefi ts 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.

cathy@thehardwareconnection.com • (408) 772-7961

400cars perFormaX® toilet Fill valve and specialtY seal kit

• Takes the guesswork out of repairing toilets with specialty flush valves, providing optimal performance while saving water and money.

• Fixes problems such as noisy toilet, toilet turns on by itself, constant running or leaky toilet, slow-filling toilet, not enough water in toilet bowl, toilet makes high-pitch sound after flushing and more.

• Seal combination covers most specialty flush valves.

• Silicone seal lasts up to 10 times longer than standard flappers, while antisiphon operation is code approved.

magnetiX™ handheld showers

Feature an innovative magnetic docking system. The showerhead detaches effortlessly, then returns with a telltale snap that lets you know it’s securely docked

• Six unique spray functions provide a customized experience and optimized spray force on every setting.

• With no cradle or clip on the shower arm, Magnetix is perfect for any size shower.

• Magnetix features either a push-button or dial control for effortless spraysetting changes, and is available in two elegant finishes.

• A generous metal hose resists tangles, with an extended reach that takes the stress out of tasks involving kids, pets or cleaning.

“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

Frameless shower doors

• Include new oil rubbed bronze finish and frosted glass line extensions of completely frameless shower doors, enclosures and tub doors portfolio.

• Models are now available that will fit any size bath layout from 22” to 76” in width.

• All models feature completely frameless modern styling, stainless steel constructed hardware and ANSIcertified tempered glass.

• Many models are also available with a matching 2.5” low profile fiberglassenforced acrylic base.

oval stainless steel hammered bath sink

• Made from high-gauge stainless steel and hand hammered to add visual interest.

• The stainless bath sink brings a different look and feel to bathrooms: slightly rustic, yet still elegant.

• The sinks are made from 16-gauge stainless steel with a hand-hammered interior.

• The undermount sink is available as either brushed or polished. Dimensions are 6.25” by 19.25” by 16.25”.

IN THE NEWS

NEW STORES:

• Erika and Giovanni Grasso have acquired Pfeil Hardware & Paint in Troy, N.Y., from Deane and Jeffrey Pfeil and renamed it Ace Hardware of Troy.

• West Ashley True Value is opening in Charleston, S.C.

• Al and Jeff Bunge have opened Crown Point True Value Hardware in Crown Point, Ind.

• Westlake Ace Hardware opened in Carrollton, Texas.

• Jay and Cindy Moore opened Homer’s Ace Hardware in Beebe, Ark.

• Mitch Willis is opening New Buffalo True Value Hardware in New Buffalo, Minn.

• The Dawson family has sold Dawson’s True Value in Beverly, Mass., to Aubuchon Hardware.

• Woods Hardware has purchased four stores from Small’s Hardware in the Cincinnati area.

• Kevin and Lisa Vincent renovated what had been a shuttered retail store when they opened D&S Hardware in Winchester, Ky.

• Brendan Riley opened Andrew’s Hilltop Hardware in Pleasantville, Pa.

• Dave Sheets is opening an Ace Hardware store in Paulden, Ariz.

• Dale Winters has purchased Trustworthy Hardware in Le Sueur, Minn., from Judy Williams.

• Mark and Adam Southern have opened Ace Hardware in Shinnston, W. Va.

• Chase Ace Hardware, Garden & Gift Emporium has opened in San Rafael, Calif.

• Graham Young has purchased McNaughton Home Hardware Building Centre in Newbury, Ontario, from McNaughton family.

• Sloan Mitchell has purchased the Tool Box Hardware Store in Fairview, Tenn., from Deborah Lovett.

KUDOS TO:

• Jim Lehrer of Brownsboro Hardware & Paint in Louisville raised $20,000 for two local charities.

• Matt Mazzone of Mazzone’s Ace Hardware in Brooklyn, N.Y., was honored as the 2016 Ace All-Star Retailer by the Ace Hardware Foundation.

Matt Mazzone (right) with Kane Calamari of Ace Hardware Corp.

• Gary and Paul Staashelm are marking the 80th anniversary of Ace Hardware in New Albany, Ind.

• Jon and Brad George are marking the 50th anniversary of Marv’s True Value in Princeton, Minn.

• Debbie Supply PRO Hardware in East Rochester, N.Y., was honored by PRO Group with the Paul L.

IN THE NEWS

Cosgrave Memorial Award and by Bostwick-Braun as 2015 Pro Retailer of the Year.

Debbie Supply PRO Hardware.

• Fayetteville PRO Lumber & Supply in Fayetteville, Tenn., was named a finalist for the Paul L. Cosgrave Award and as 2015 PRO Retailer of the Year by Wallace Hardware.

• Zillah PRO Hardware in Zillah, Wash., was named 2015 PRO Retailer of the Year by Horizon Distribution.

• The Weeks family is celebrating the 100th anniversary of Weeks Hardware in Brooksville, Fla.

• Moe’s Hardware Hank & Sporting Goods in Black River Falls, Wis., is marking 120 years of ownership by the Moe family.

• Wilson McLeod is celebrating the 100th anniversary of McLeod Home Building Centre in Spruce Grove, Alberta.

• Dave Warren is celebrating the 25th anniversary of his ownership of Dave’s Ace Hardware in Milton, Wis.

• Don Norman is marking the 70th anniversary of Norman Building

Materials in Belton, Texas.

• Homer and Sandy Mills are marking the 25th anniversary of Carrollton Ace Hardware in Carrollton, Ohio.

• Jim White, owner of Boyne City Ace Hardware, received a Golden Hammer award from Estwing Mfg. and Ace Hardware Corp. to celebrate his 51 years in the hardware industry.

PEOPLE ON THE MOVE:

• Pacsoft has hired Matt Trickey as territory sales manager.

• Kathy Crusco is taking on the additional duties of chief operating officer of Epicor Software Corp. while retaining her responsibilities as cfo and executive vice president.

WHOLESALERS IN THE NEWS:

• True Value Co. reported revenue of $438.7 million in the second quarter, up 1.6%. Net margin rose 40.5% to $13.0 million.

• Ace Hardware Corp. reported revenues increased 0.6% to $1.4 billion for the second quarter, while net income rose $3.5 million to $63.4 million. Retail revenues for Ace Retail Holdings (Westlake Ace) increased 2.3% to $87.4 million. Total store count increased 59 stores year-overyear to 4,315.

• Orgill set an attendance record at its Fall Dealer Market in Las Vegas, Nev., with attendees from all 50 states, 10 Canadian provinces and

Maple Ridge Home Centre concept store at Orgill show.

50 countries. This year’s event featured three fully merchandised stores: Continental Hardware & Building Supply, which focused on a 50-50 DIY-pro customer mix; Maple Ridge Home Centre, which focused on a 50-50 DIY-pro customer mix and carried Canadian-compliant products; and Vista Home & Garden Supply, which focused on the lawn and garden and farm and ranch categories.

OTHER NEWS:

• Epicor Software Corp. announced the completion of its acquisition by global investment firm KKR. Joe Cowan continues as president and CEO with a clear focus on accelerating growth internationally, expanding the channel business and further development of shared services capabilities through centers of excellence. Epicor has also introduced Epicor Scheduling+™, a cloud-based workforce management platform that helps retailers streamline labor management and improve operating efficiencies.

• Clark Lumber & True Value Hardware in Tualatin, Ore., was destroyed by fire on July 31.

GET THE FULL STORY:

• Bosch sells SKIL brand to Chevron. Click here.

• Amazon now delivering packages to secure locker. Click here.

• Lowe’s to debut customer service robots in 11 Bay area stores. Click here.

• Amazon to open up to 100 pop-up stores in malls. Click here.

• Barrows Hardware expanding in the face of big-box competition. Click here.

• Hardware store employee accused of stealing thousands in merchandise. Click here.

• Monopoly power and the decline of small business. The case for restoring America’s antitrust policies. Click here.

• Bray Ace Hardware in Winter Garden, Fla., celebrating 110th anniversary. Click here.

DO IT BEST VICE PRESIDENT SET TO RETIRE

Do it Best Corp. has announced that Jay Brown, vice president of sales and business development, will be retiring at the end of the year after more than 30 years in the industry. Brown joined Do it Best in 2004 as vice president-merchandising and moved over to the sales and business development area three years later. He oversaw the Retail Performance and INCOM Distributor Supply teams as well as the international division and member services department, helping the co-op surpass $3 billion in sales for

IN THE NEWS

the fiscal year ending June 25, 2016 while maintaining consistently high member rebates.

Prior to joining Do it Best, Brown spent 20 years at the Valspar Corp. in numerous leadership roles, including national sales and marketing manager and senior general manager. Earlier in his career, he worked for a three-store chain affiliated with Our Own Hardware.

“I am so honored to have been able to spend my whole career supporting the independent home improvement industry. From my very first job at a local hardware store, I caught the bug and knew this was where I belonged,” Brown said.

“Jay has truly embodied what it means to be a servant leader each and every day, and our members and staff are better as a result of it,” added Do it Best Corp. President and CEO Dan Starr.

RETAILERS HARD HIT BY HISTORIC FLOODING IN LOUISIANA

When residents of Louisiana found themselves under heavy flood waters in August, suffering three times as much rain as they got from Hurricane Katrina, unfortunately some were not able to turn to their local home improvement store for help.

Naylor’s Hardware and Garden Center, which has been serving Baton Rouge for 63 years, found its store overrun by five feet of water. Without flood insurance, Owner Johnny Naylor was forced to close the store permanently.

Naylor’s Hardware and Garden Center in Baton Rouge, La., was forced to close after suffering massive flood damage.

“At my age, even without an SBA loan, I couldn’t do it. I don’t want to be paying off loans when I’m 90,” Naylor told a local newspaper.

Naylor made the best of a bad situation by partnering with Clegg’s Nursery, who will now start carrying more hardware products through True Value, while giving jobs to Naylor and two other employees.

At State Lumber and Hardware, water rose 8 inches into the store. Zachary Lumber & Hardware, Baker Hardware, Holmes Building Materials, St. Gabriel Hardware and Delaune’s Do it Center were among the Do it Best retailers in Louisiana affected by the flooding.

When the first calls came into Do it Best’s Waco, Texas, distribution center, most staff had already left for the day, so remaining team members volunteered to send much-needed supplies to members.

Kenny Beauvais, president and CEO of Hardware Distribution Warehouses Inc. (HDW), said “Being a Louisianabased distributor, our hearts and prayers go out to all those affected by this event. The effects of this flood could carry on for the next three to four years in the Baton Rouge area with a massive repair and rebuilding project. HDW looks forward to assisting with the renewal of the area with the help of our dealers, friends and customers.”

For more details click here.

UPCOMING EVENTS

OCTOBER

Do it Best Corp. October Market

October 7-10, Indiana Convention Center, Indianapolis

House-Hasson Hardware Fall Dealer Market

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

North American Wholesale Lumber Association Traders Market

October 26-28, The Mirage, Las Vegas, Nev.

Northeastern Retail Lumber Association Annual Meeting

October 21-22, High Peaks Resort, Lake Placid, N.Y.

The Green Industry and Equipment (GIE) Expo

October 19-21, Kentucky Exposition Center, Louisville, Ky.

Wallace Hardware Fall Dealer Market

October 12-14, LeConte Center, Pigeon Forge, Tenn.

JANUARY

2017

Do it Best Corp. Winter Conference

January 15-16, Hyatt Regency, Orlando, Fla.

House-Hasson Hardware Dealer Market

January 26-28, Opryland Convention Center, Nashville, Tenn.

International Builders’ Show

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

United Hardware Spring & Summer Buying Market

January 6-8, Minneapolis Convention Center, Minneapolis

World and Main Spring Market

January 5-7, George R. Brown Convention Center, Houston

FEBRUARY 2017

Florida Hardware Spring Dealer Market

February 11-12, Double Tree Hotel, Orlando, Fla.

This calendar of events has expired. For a current list of upcoming hardware industry events, CLICK HERE.

NOVEMBER

Distribution America/PRO Group

Executive Planning Conference

November 14-16, JW Marriott Starr Pass Resort and Spa, Tucson, Ariz.

STAFDA Annual Convention & Trade Show

November 6-8, Georgia World Congress Center, Atlanta

Northeastern Retail Lumber Association LBM Expo ’17

February 15-17, Rhode Island Convention Center, Providence, R.I.

Orgill Spring Market

February 16-18, Ernest N. Morial Convention Center, New Orleans

True Value Spring Reunion

February 17-19, Anaheim Convention Center, Anaheim, Calif.

For a complete listing of calendar dates, click here.

Numbers Behind the

$1.89 billion

Amount spent on Halloween decorations in 2015, according to the National Retail Federation, with total Halloween spending topping $6.9 billion.

63%

Percentage of small employers who experienced an increase in their per employee insurance premium cost between mid-2014 and mid-2015, according to the NFIB.

52%

Percentage of small business owners who view health insurance costs as the most severe issue they face, according to the National Federation of Independent Business (NFIB).

41%

Percentage of small employers who are personally covered by an individual market health insurance plan, up 11 points since 2013, according to the NFIB.

29%

Percentage of small business owners who believe federal taxes on business income is a critical problem, unchanged from four years ago, according to the NFIB.

59%

Percentage of independent retailers who reported being worried about the rising cost of rent, with one in four describing it as a top challenge, according to the Institute for Local Self-Reliance.