Hardware Store

[mwagoner]

Let me get some opinions on this.
My father has owned a small hardware for about 13 years and has always done an okay business. However the last few years have been difficult and he has tried to sell the store with no luck.
He is thinking of putting more money into the store in hopes to attract more/better business. He provides great service and has several niche markets such as small engine repair, screen/window repair and Kerosene heater repair.
I thought I would post a few questions if you all don't mind answering.
Why do you go to your neighborhood hardware store?
What do wish they sold that they don't?
He is thinking about a rental center, How often do you all rent smaller tools, etc ? (no tractors unfortunately)

He has some competition from a Home Depot and Lowe's and will soon receive a Harbor Freight across the shopping center.
How do you all think he can continue to compete?

Thanks for all the info, I know that you all visit all types of stores and just wanted some input.

 

[gws]

First, what is the market area like? Is it older homes or newer subdivisions? If its newer then lowes is going to be the market for those people.

Has he looked at adding home electronics? Maybe a radio shack franchise in the store?

I love our little hardware,auto parts, auto repair store. Prices are ok, but I spend more money are home centers and lumber yards than the little store.

 

[hazmat]

What do I like about my local hardware store?
Close by, open Sunday

What don't I like?
Small, hard to find stuff, useless salespeople

Depot has more stuff, but more useless salespeople

I've found a nice building supply / hardware store best of all worlds, open Sunday, lots of stuff, helpfull people. Problem, 30 minutes away.

CYR Lumber

 

[BB_TX]

I love roaming around a well stocked home owned hardware store. That is where I head if I need something maybe a little out of the ordinary.
Unfortunately, most everything I buy is fairly generic. I end up heading to HD because I like to browse around thru the extensive lumber, building materials, fasteners, tools, welding, gardening equipment, plants, etc. even though I don't need any of it right then. And most of that is less expensive than the hardware store, if the hardware store even carries it. I don't mind paying more for something I need and know it may be hard to find elsewhere. I hope all small independent businesses succeed. But if I know I can buy something at a better price, that is where I will normally go.

 

[RichZ]

My wife and I ALWAYS use the local hardware store instead of the box stores. First, we strongly believe in supporting the local small businesses. Secondly, the staff at our hardware store know what they're talking about, and always are helpful with our projects. If they don't carry something, they're always ready to order it. But they're used to special orders in a farm community. Our local hardware store even has a lumber yard.

I can't say anything negative about our local hardware store. They don't sell any tractor or farm supplies, but we have a local feed store and tractor supply store that take care of that. /forums/images/graemlins/grin.gif

 

[RobS]

I have a decent True Value about three miles away and a Menards about five miles. Lowes another couple down from Menards.

I haven't been to the True Value in months. Menards tends to have just about everything they do (certainly everything I need) plus it's just more fun looking at all the other stuff I am interested in. I guess it's shopping as entertainment for me.

I'm fortunate to be pretty handy and knowledgable. I pity the people who walk into Lowe's/Menards needing much help /forums/images/graemlins/smile.gif

 

[Stonewall]

I think the Sunday hours thing is top on my list. Can he stay open an hour after dark on Sundays (says a lot about my projects). Other things to consider are other services like an intake or service center for waranty repairs on power tools and small appliances ala Black -n-Decker or others. Is the area in need of a good hardwoods supplier? People who need those will find YOU if you can keep a stock. I would take a long hard look at the area you're in and identifiy holes in the market. Do not try to go head to head with a box store on general hardware. The only way to beat them is with specialty items and better service.

 

[RanchMan]

Sounds like an uphill battle.

Answers to your questions:

1) Rare/hard to find items
2) More rare/hard to find items, additional specialized services
3) Rarely/never
4) see below....

Price Point:
Price point is not the #1 thing to all folks, but it is darn near the top of the list for most. Ignoring the few loyalists, if he wishes to increase his customer base, he has to be competitive on this aspect. This will be hard due to volume discounts the big boys get, but he’ll have to at least get close to them in price. People drive across the street to save a nickel on gas, and that's what, 3% or so....?

Service:
Some of the employees are pretty ignorant when it comes to products they carry or methods in general. The big stores have training programs in place and despite opinions to the contrary, I’ve found the employees there relatively helpful (when I needed it.) Establishing a training program and requiring people to continually educate themselves on new products and methods is an option. Again, if you're expecting not to compete on price point, you have to give people something for that extra money they are putting in your pocket when they could get the same item down the street for less.

Know thy competitor:
A bit of recon is in order. Everyone in the store (salesmen) should know what the competitors in town have. Kindof along the lines of training, a weekly evaluation of what is going on in other stores - what is hot/what is not will help guide as to what he should carry, what he should not, and how to effectively market it.

Marketing:
Similar to the aspect outlined above, he should make sure he examines the adds/sales/layout/organization of the competitors in the area. A lot of small hardware stores are pretty unorganized and lack the advertising of the big stores. Direct mailers, large color adds in the local paper, radio/tv commercials, etc. are all ways to increase customer base. Perhaps he should consider putting a presence on the web as well and do mail order for some items. No, “Farmer Joe” may not go to him, but you never know, and on top of that, if he is wanting to expand his base, a lot of the younger folks out there will purchase stuff over the web without hesitation.

Rare items:
Although these things don’t constitute large volume sales, they can certainly draw in a lot of folks. This is where he can get the upper hand on the other stores out there - e.g. it’s the “bait” to draw new customers in.

Services/Advise:
Services like delivery could be a big help (I HATE having to go out for an item when I'm in the middle of something) and mechanics? Seen an awful lot of NAPA trucks show up at the garage with a $20 part. He could also create some/get some pamphlet (complete with "recommended part #'s") for various "typical" projects that contain advise and suggestions. Remember - a lot of folks today would rather guess than ask and this gives them a "low visibility" way out.

Hope you/he find this stuff useful. It all costs money, but like the old saying goes, “It costs money to make money.” Basically it all boils down to having to distinguish himself from the competition where the consumer believes the value is higher to purchase from him - unless he does that, he simply won't be able to compete.

 

[mwagoner]

Thanks to all who have responded so far.
He had Sunday hours for many years and finally dropped it after it wasn't worth being open. He is also open until 7:00 in the evening. Finding folks who want to work has been difficult so most of the hours limitations stem from that.
He is in an area of mostly older homes with some new ones mixed in. Most of his customers usually want to fix what is broken instead of replacing items. It's hard to make a lot of money selling nuts and bolts.

 

[TWINKLE_TOES]

<font color="blue"> Why do you go to your neighborhood hardware store? </font>

One stop shop, their inventory has built up over the last 50 years based on what people want not on what some salesman gives them a good price on (Eagle 50,000 items, that I don't want, 50% of what I do)

<font color="blue"> What do wish they sold that they don't? </font>

Groceries and gas/diesel, then it would be truly one stop shop.

<font color="blue"> He is thinking about a rental center, How often do you all rent smaller tools, etc ? (no tractors unfortunately)</font>

Never. I make do and rarely pass an opportunity to by a new tool. This may be viable though.


<font color="blue"> How do you all think he can continue to compete? </font>


I don't think he can. Customer loyality ends at a dime difference in price. He simply dosen't have the buying power to compete. I pay a higher price at my local harware store because they have served me well for 40 years and I would like them to stick around. I think I see signs of them headed for the rocks also, to bad.

Probably dosen't fit his curcumstances but, one store in this area is a combined feed and hardware store with just bare essentials in hardware. Seems to have it's head above water.

 

[Wingnut]

We had a similar situation here. The guy mixed hardware, repair (pumps, small engines), as well as feed and some small amount of farm supplies.
They had a big sell-out sale some months ago ... I think he still has his pump repair business going but they sold out the hardware business.
As much as you might WANT to shop locally ... it's pretty difficult for a small business to survive when the big boxes are so close, have such a large inventory, and have such cut-throat pricing.
The local rental shpo also closed down.
It's pretty hard to have a small business unless you have a good niche market / product. We've become accustomed to low prices and throwaway products.

pete

 

[PhilNH5]

Hazmat,
Cyr's is about 4 minutes from my house. Great place. Especially with the recent remodeling.

My all time favorite hardware store is Bensons in Londonderry and Derry. A giant HD just opened across the street from the Londonderry location. Don't know how long Benson's can survive that. Haven't been in the HD and probably won't. I may have to make Cyr's my new favorite place.

Phil

 

[JerryG]

We live in a small town, but we have two stores that sounds a lot like your dads. One of them is a farm and home store, they sell feed and hardware. To help out, they have added Stihl equipment and do small engine repair. That has seemed to help out their business alot. The other is a old time type hardware store. They have added the sale and installation of well pumps and the associated parts. That has also helped to increase their business. The stores that went under that these two replaced, would not add anything or any services, I think that that is one of the reasons that they went under.

 

[NY_Yankees_Fan]

In laws owned a stationary store in a downtown area, outside Harrisburg, Pa., for 20 years. They did well, put the 4 kids through college, etc etc., they had a great customer base. Staples moved to town, they saw a 50% drop in business. They could not buy product at a wholesale level and sell it at enough profit and compete against the buying power of Staples. When Office Max moved in they put the For Sale sign up, no takers, closed the store and retired! Both stores were a few miles outside of town built on previous farmland. Then they wonder why downtowns are dying /forums/images/graemlins/mad.gif

Good luck in what ever you decide.

Tom

 

[Anonymous Poster]

Our Tractor Supply Store has a nice hardware section.... /forums/images/graemlins/tongue.gif,I was suprised what all they had. A nice store....

 

[bgott]

My first stop for hardware is my local Ace store. I have ran up to a grand a month on my account there. I can get in and get out and everybody there knows where everything is. I would rather take an a$$ whippin' than go to the HD that's less than a quarter mile away. My Ace is open to 8 PM every night except sunday and then it's open to 6 or 7. They have some women working there that have been there for years. The rest are high school or college kids. Your dad ought to try to get some college kids to work for him if there is a school nearby. The owner of my Ace has a reputation of working around school scheduling so he seems to have no problem finding applicants. He and his kid just bought another hardware store across town and he has plans to expand this store so I suppose there is still money in it.

 

[Mosey]

I buy most of my hardware at Lowes. The hardware stores here in Columbus, IN are poor. I like Lowes because they are easy to return things to (never any hassle) and they have lower prices then Ace or True Value. I went into the hardware store last week looking for a couple things Lowes didn't have. I thought maybe I just needed to go to a "real" hardware store. They didn't have it either and the employee was less knowledgeable than the Lowes employees. I do know of a good hardware store in Demotte, IN (where my wife's parents live). They have knowledgeable people and are very well stocked and do a lot of business. It helps that the nearest Lowes, Menards, or Home Depot is 30 miles away. I pay much lower prices at Lowes though.