Great hardware stores are more than just profitable

Home Channel News, August 10, 1998 by Tom Shay

Most create unique promotions and endear themselves to their communities Torn Shay, a former independent retailer himself, provides business building ideas through his Profits Plus Seminars and books.

Tom Shay a former independent retailer himself, provides business building ideas through his Profits Plus Seminars and books.

NATIONAL REPORT -- While the definition of a great hardware store would have to include profitability, the stores entitled to this recognition earn that moniker by doing something unique to win the hearts of their customers.

Ask any customer why a particular store should be considered outstanding, and you will surely find one of the reasons is because the store has adapted itself to the community through the products, services, and customer service it offers. These great stores also distinguish themselves in the way they promote themselves to their community, whether through a unique twist to their advertising or an event designed to better their community. And more than any other arena of retailing, hardware dealers appear to be the most creative.

"Power promoting" is a phrase that can be used to describe dealers such as Uncle Joe's ServiStar American Hardware & Home Center in Dover, Tenn., where owner Bobby Dill is known for the unique newsletter he sends to his customers each month. Each issue of his newsletter has a calendar with a different special every Monday through Saturday and a short Biblical message on each of the Sundays. Being in a rural area, Uncle Joe's has found great success with its Internet site. One of its most popular sellers has been Hot Wheels model cars sold in case lots of 72.

H.J. Opdyke Golden Rule Hardware in Frenchtown, N.J., developed a unique way of working with its contractor customers by providing to them a housewarming gift to give to the residents at the completion of new construction or remodeling.

The gift -- a tool box with "Welcome Home" written on it -- includes light bulbs, flashlights, utility knives and other related products someone moving into a new residence would need.

Jack Opdyke, the store's owner, reports that while the reception from consumers and contractors has been very good, an added benefit has been the interest he has generated from contractors who have done less business with his store. These contractors want to know how they could receive the gifts to give to homeowners they've completed a job for. Opdyke has been glad to tell them how to become a part of the program, which has meant incremental business for him.

A special event can also win customers Howards True Value in Duluth, Ga., owned by Doug and John Howard, does the majority of its business with outdoor power equipment customers, and for that group, the Howards created a customer appreciation day in 1994.

There was a complimentary luncheon along with the traditional door prizes and demonstrations by manufacturers. Held in a 35,000-square-foot warehouse which they rent for the event, the Howards initially did not sell any merchandise. The no-sales idea changed after a couple of years; by 1998, as the event grew to 1,000 attendees, sales for the event surpassed $1.2 million.

The Howards also take good care of their commercial customers year-round with several unique ideas, one of which is training seminars for commercial customers to fix their own equipment. Knowing that some of the commercial customers have their own mechanics, this is the Howards' way of developing a closer relationship with their customers.

From philanthropy to adoption

Often, building business is best achieved through philanthropic means. Witness Kelly and Butch Magnetta, owners of Tarentum Trustworthy Hardware in Tarentum, Pa., who took up the cause of the Children's Hospital in nearby Pittsburgh. Remembering a friend of 20-plus years who always gave to the hospital, the Magnettas worked with local radio station KDKA to develop a fund raiser.

They spent only $600 to print posters, create collection jars and pay for other miscellaneous expenses, but were able to raise more than $32,000. Working with their wholesaler, Frederick Trading Co., the funds were raised between 5 a.m. and 9 a.m. last Dec. 11. In addition to registering for the many prizes, customers gave cash and checks to the cause while they were in the store as well as through collection canisters being manned by employees on the road in front of the store. Even in a town of less than 5,000 residents, there were two police officers provided by the town's mayor to direct traffic and patrol the crowds at the hardware store. Kelly and Butch are already planning their 1998 fund-raising drive.

Our second example of a generous hardware retailer is Elio Perez, who has three stores in the Miami area. Perez and his staff at the Union City True Value stores have distinguished themselves by taking care of their predominantly Cuban customers. Two situations that stand out:

Perez has assumed responsibility for the upbringing of several single-parent, parentless, and problematic youths. Each of these young people has become an employee of the stores, while the staff has become adoptive parents and assists with teaching life skills, such as attending high school and college and arranging for the older youth to manage money and apply for a car loan. The unofficial program is well known throughout the community. One of the current youths became involved in the program when his father asked Perez to "adopt" his son.