Dealers share growth strategies

In Anaheim and New Orleans, HBSDealer editors posed a simple question to a variety of independent dealers in attendance, respectively, at the True Value Spring Reunion and Orgill Dealer Market.

We asked about new developments in the store and growth plans in 2017. Here’s what we heard, slightly edited:

Brian Fogel, Alpers True Value, Port Washington, N.Y.

“I'm always excited for growth in paint, and that's what I'm hoping for. The Benjamin Moore Store of the Future has new fixturing, new paint, a refresh, new colors on the wall, new lighting, it all helps. Any way you can invigorate a store, it leads to new sales, and we're doing that right now.”

Chase Rickord, Farm and City Supply, Indianola, Iowa

“We’re looking at 2017 as probably our biggest year. We're looking to open up three more locations in Iowa and get to hopefully a million SKUs for e-commerce. We're looking at other retail locations, either buying others out or opening our own. It took us a couple years to figure out exactly what we were doing with the first location, and from there, we're really expanding.”

Brent Supernault, Adirondack Hardware Inc, Malone, N.Y.

“I'm purchasing a hardware store for the first time. I'm currently managing a store, and the owner offered to sell it, so that's where my growth is in 2017 -- is to do it for me, instead of somebody else. We're going to completely revamp the paint department and put somebody new in charge of it, and hopefully expand the social media aspect.”

Tristan Long, Ackerman True Value, Beloit, Kan.

"Something new that we're doing a lot more is giftware in a couple of our stores. We’re in an agriculture-based area, and a lot of the toys and a lot of the giftware are going over well. We've had success with core products for years and years. That's what our business is built on. But when things are changing and the Internet is taking over families left and right, you gotta figure out a way in a little town of 1,500 people to get them to come into your store. They always say, the men come in with the to-do list and the women come back with the check book."

Steve Bierman, B&S True Value, Pittsburgh, Texas

"We're expanding one of our stores, adding about 1,200 sq. ft. And expanding our plumbing department. It's about 10,000 sq. ft. The reason is it's just business. We gotta get more product in the store to sell."

Kely Johnson, Cape Electrical Supply, Cape Girardeau, Mo.

“E-commerce. Not that it's a new feature, but we've employed the correct software. Nobody's going to beat Amazon, and we've decided to join them. We first rolled it out in 2016. Orgill expanded it in 2017 big time. We were able to take Orgill's product offering and throw it onto our e-commerce site, which is 80,000 SKUs. It just blew up. A quarter million in one month.”

James Barber, Barbers Hardware, Bogalusa, La.

“We're going to expand in nuts and bolts, and in the wood stove department."

Steve Fusek, Fusek True Value, Indianapolis, Ind.

“Updates on plannograms, lower costs, lower shipping rates. Everything is in place to make more money."

Andrew Boden, C S Brown Co Inc., Bronx, N.Y.

"Our growth game plan? Find more customers. But we have a very unique business. We sell to apartment building owners in New York City. We're based in the Bronx, we sell to property owners and managers for affordable housing. We have a real niche, so that's where we're focused. We sell to a lot of people with very specific needs. We've been there since 1927, third-generation, family owned business. One of the things we're doing differently is we're pretty much automating everything. Paperwork, emailing, the website, that's really changed our business a tremendous amount. Before, it was all phone and fax. Now I would say 50% of our business is email and text. Just making it easier for our customers to do business with us. These people always have too much to do, and they're always stressed out, and they always need it yesterday. Whether it's a violation from the Housing Department or whatever it is. These are not people who can waste a lot of time, so the faster you can get them whatever they need, [the better.]"

Lee Bowen, Berryville True Value Hardware, Berryville, Va.

"The most exciting thing right now is putting in Benjamin Moore paint, and the reaction has been good. And we've had a lot of people come in. And the other exciting thing is I might be getting a new building for a store in 9 months. Move out of 5,000 sq. ft. Into a 7,000 sq. ft. I bought some aluminum paint that's a non slip plate, takes the place of sand paper type material to stop slipping. I think it will do well. I hope so."

Tony Steinman, Thomas Building Center, Sequim, Wash.

“We're an independent lumberyard, so our biggest growth will come from price increase on the lumber commodities side. The Canadian softwood agreement (or lack thereof) is going to precipitate some of that. Additional areas for growth: last year we opened a Stihl chainsaw dealership, and we are augmenting that with purchases here at the show, bringing in some different product lines, some wood splitters -- just adding to the mix. That's going to increase more traffic, therefore more growth.



"Overall price increases, even at 1% or 2%, that's going to put another quarter million dollars on the bottom line without having to do anything. Gross profit dollars. Margin increases, we're finding right now that there's an opportunity to increase or margins on many different product lines. When it gets busy, people don't check quite as closely, but you also find the big boxes get a little greedier. With their game plan, they're still going to give away 40 items. I don't want to compete on those 40 items. The other 4,000 that go into a building project, yeah.



"We have Home Depot four blocks down the street from us, and everyone says 'oh, Home Depot's really going to hurt you.' In some areas, yes, but one thing they do very well is advertise. And in our community, most people are not do it yourselfers. They're going to hire a contractor, and the contractor is going to come to us. I don't necessarily mind Home Depot. They generate a lot of business for us, and they make us look good without really trying. Because we have a lot more knowledge, we offer free delivery, and often same-day. So we have a lot of advantage over them. They do have some buying power, but we can compete on just about every level with them if we so desire."

Rich Biddinger, Topps Home Center, Greensburg, Ind.

"I'm looking to have a better year this year. Better economy. It's getting easier to sell, but it's getting harder to buy. With the united states and Canadians going back and forth. That's going to affect the price of spruce, particularly."

Steve Spradlin, Lake Isabella True Value, Lake Isabella, Calif.

"In our particular store, we have improved on the niche categories, and that's what's grown our stores, not the core categories. Though we have had an upbeat in housing replacement. That basic core business is OK, but it's the niches that we've found is where the growth is. Pet food, for instance. We expanded our pet department, and we've doubled sales -- from $10,000 to $12,000 per month, to $25,000 a month and that's just in the last two years.



"We've also taken the new growth niche in California, cannabis growers, Hydroponics is going to be a huge business whether you agree with it or don't agree with it.



"The key to a success independent hardware store is to stay away from those big boxes. If you're in a location and you've got boxes everywhere, get the hell out. There are so many places when you're an independent, you own the market, because you have such a breadth of categories. If we were next to Big Five sporting goods, maybe sporting goods would not be the best thing to try to compete in. And if your next to a dollar store, don't try to beat them on trying to sell the cheapest paper towels. But when you're in an area that doesn't have those, you have the opportunity for a dominant category or department in your store.”