the anvil spring 2015

DISTRIBUTING CUSTOMER SATISFACTION

THE ANVILIncrease Margins With Paint Sundries p. 21

A ATTRACT MORE CUSTOMERS7 Tips for Improving Your Store Exterior

HOW YOUR

LAWN & GARDENGROWSMAKE YOUR STORE A MUST-STOP THIS SPRING

VOL. 2 NO. 1 SPRING 2015

+ ADD A NEW NICHE—EASY!

TONI SHARPCo-owner, Hi-Way 3

PRO Hardware, Muncie, Indiana

BOOST YOUR

BOTTOM LINEPAGE 26

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2 MARKETING MINUTEMake a Spring Statement Retailers share tips for how to spread the word about spring sales, events and new products.

3 FOCUS ONStore ExteriorBring more customers inside your store by making its outside more attractive.

4 NICHE-PERTISE Commercial Sales Develop a new revenue stream by connecting with area businesses and local government.

5 SPOTLIGHT Bostwick-Braun’s Retailer of the Year and Salesperson of Year receive awards, and other news.

6 TREND WATCH What’s new in home design and popular paint colors this year.

8 HOT LIST Your profits will bloom this spring with these high-demand, fast-selling products.

28 CHECKOUTCombine lower-margin items with high-margin products to boost your bottom line.

THE BOSTWICK-BRAUN COMPANY

THEANVILD I S T R I B U T I N G C U S TO M E R S AT I S FA C T I O N S P R I N G 2 0 1 5

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FEATURES

10 COVER STORYHow Your Lawn and Garden Grows Toni Sharp and Dave Smith, co-owners of Hi-Way 3 PRO in Muncie, Indiana, share their pointers for making your store a lawn-and-garden destination.

17 SMART BUSINESSAdd a Niche — Easy! Increasing your foot traffic (and your revenue) with new services and product lines: It’s simpler than you might think.

21 PAINT YOUR BOTTOM LINE GREENHigh-margin paint sundries can increase your profits. Here’s how successful Bostwick-Braun retailers have expanded their sales in the category.

26 PROVEN PROFITS Proven Brands enables Bostwick-Braun retailers to earn excellent returns with a high-quality line of products.

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2 | The Anvil SPRING 2015

MARKETING MINUTE

Make a Spring StatementAlong with a robust assortment of lawn-and-garden products, here’s how to pump up marketing for spring sales. Chances are your marketing could use a good spring cleaning. This season, refreshing your tactics is a good way to broaden your consumer base. Not only can you provide longtime custom-ers with good deals, but innovative promotions and marketing will help you draw in those who haven’t been to your store before, according to Bob Phibbs, a marketing expert, retail-sales consultant and author of The Retail Doctor.

“If you’re seeing the same faces, you know you need to do something different with your mar-keting,” Phibbs says. “Spring is a good time to get those new people in. With targeted promotions, you can show these new customers why they should choose your store over a big box.”

To spread the word about spring promotions, Joe Hanselman, owner of Taconic Valley Lawn & Garden in Hillsdale, New York, recommends relying on the PRO flyer. Hanselman schedules his store’s first lawn-and-garden promotion flyer for April 1. “Once spring hits, we don’t have a lot of time, and the flyer is a quick way to reach our customers,” he says. “The business from the flyers keeps us busy all season, and 75 percent of our business is lawn-and-garden.”

Hanselman recommends using the flyers to promote items that other stores don’t carry. For example, Taconic Valley Lawn & Garden is known for organic vegetable starts and for the quality of its plants. Other stores in the area simply can’t compete, and Hanselman’s organic-vegetable sales have increased every year.

Cultivate In-Store Promos, TooIn-store sprucing-up should accompany your spring marketing; merchandising can help convey that your store is a destination for spring sup-plies. Campbell PRO Hardware in Youngstown, Ohio, has seen an uptick in purchases of vegeta-ble-garden supplies. To capitalize on that trend, owner Tony Tsikouris creates an endcap of seeds, gardening gloves and short-handle tools.

“We sell through a lot more of our seed than ever,” Tsikouris says. “We also see a lot of customers coming in looking to do spring repairs.”

One way to beat big-box competition is to target customers’ specific needs. “Spring mar-keting gives you a chance to be more relevant,” Phibbs says. “Maybe after a horrible winter, cus-tomers need lots of gutter repair. Promote those products. Show that you know and care about customers’ troubles.”

Hanselman’s store also runs in-store promo-tions. During the spring of 2014, the store had a baby-chick promotion. Within three months, it had sold more than 700 chicks and many ancillary products.

Reboot your marketing this spring to increase traffic and expand your customer base.


FOCUS ON STORE EXTERIOR

Your store’s exterior says a lot about your business. Be more inviting and put forth a customer- friendly image with these seven smart tips from retailers.

Sign Up An attractive exterior starts with prominent signage, according to Michael Songer, owner of L&M PRO Lumber in Empori-um, Pennsylvania. “Good signage lets customers know who you are,” he says. “We’re a small town and local people know us, but without signs, anyone not from our town will bypass us without knowing

we’re a hardware store.” L&M has a large, illuminated, two-sided PRO sign near the road, signs over the doorway and another on the side of the building.

Bring the Inside Out Uniting his store’s interior and exterior is one way David Moore, owner of Wiley Bros. PRO in Schaghticoke, New York, draws in customers. During warm weather, he opens overhead doors to display seasonal products such as fertilizer, hand tools and gardening supplies. This setup saves

Moore money, too, as his employees don’t need to spend time moving products in and out.

Upgrade Lighting Songer frequently upgrades his exterior lighting and has installed energy-efficient fluorescents. “It’s a lower cost for energy and easy to

maintain,” he says.

Constantly Scan Everyone on staff at Wiley Bros. PRO keeps an eye on the store’s exterior. Lumber, which is visible from the road, is always straight and leveled

off, and any trash or untidy outside displays are quickly cleaned up. “A neat and welcoming appearance con-veys to the cus-tomers that we pay attention to detail,”

Moore says.

Post Frequently Wiley Bros. PRO has a lighted sign by the road that can include a mes-sage, and every two weeks or so, the store changes it. The message will often remind customers about seasonal products and offer support for community activities, such as the local basketball

team.

Repaint and Replant In addition to painting every few years, Moore constantly looks to upgrade his store’s exterior to draw customers’ attention. He also regularly changes the plants out front to give the store a fresh look.

Be Accessible Can your store accommodate customers in wheelchairs? L&M PRO Lumber makes sure that all doors are at least 32 inches wide; it also has a porch at which anyone in a wheelchair can pull up and enter the store under a roof.

Attract More Customers7 ways to spruce up the outside of your store and make it more enticing.

Curb appeal helps bring in business to Wiley Bros. PRO in Schaghticoke, New York.

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NICHE-PERTISE COMMERCIAL SALES

Commercial Sales Connection Local businesses and governments are a big source of untapped income. Here’s how to connect. Maybe you think the commercial-sales niche is something your small store can’t handle. Per-haps you believe companies and municipalities use only big stores for their commercial busi-ness. Or maybe you just don’t know where to start. Creating a commercial-sales niche, though, is likely simpler than you imagine. Three Bostwick-Braun retailers provide insights.

Skip Cold Calls Just showing up at a business’s doorstep to solic-it a commercial account hasn’t paid off for Ned Green, owner of Weiders Paint & Hardware in Rochester, New York. “For cold calling to work, you’d have to have a dedicated salesperson,” Green says. “Your best salespeople are your em-ployees who keep their eyes open for commercial possibilities when customers are in the store. Commercial sales are about having a conversation with your customers and getting very targeted about what they use.”

Offer Delivery Follow the NAPA Auto Parts Store model, Green suggests: Providing even a modest delivery ser-vice will encourage commercial accounts. Some-times, delivery can be as simple as an employee making drop-offs on the way home.

Clean Up Cleaning products can be a lucrative part of commercial sales, but companies often hire cleaning services. To break into this segment of commercial sales, connect with cleaning compa-nies. “Cleaning services all shop price,” says Jeff Chamberlain, owner of General PRO Hardware

in Whitehouse, Ohio. About a third of his busi-ness is commercial sales. The store has roughly 300 customers with accounts, including compa-nies and local farms.

Go to Town Hall Municipalities need hardware, too. Green got in touch with his local government and now sells the town 10 to 15 mailboxes at a time.

Streamline Payments Hemly Tool Supply & PRO Hardware in Mont-ville, Ohio, established an account for the local township that enables employees to pick up high-visibility jackets, pants and boots and have the items charged to an account. “This makes it easier on everyone,” says store manager Erik Artim. “Employees don’t have to worry about collecting receipts, and the township doesn’t have the paperwork of reimbursing employees.”

As a thank you to commercial sales accounts, Weiders Paint & Hardware in Rochester, New York, occasionally hosts breakfasts. Along with a free meal, clients can take advantage of special savings on items such as these outlets. In addition, the store sets up displays where clients can use and learn more about other products.


SPOTLIGHT

A RETAILER OF THE YEARAt the Fall Market this past September in Toledo, Ohio, Applegate’s PRO Hardware was presented with the Paul L. Cosgrave Memorial Hardware Retailer of the Year honor. The store was recognized for its outstanding customer service and commitment to the Georgetown, Ohio, community. Named after PRO Hardware’s founder, the Cosgrave award is presented annually to a retailer who has shown superior commitment to the principles and ideals of effective hardware merchandising. From left: Chris Beach, CEO and President of Bostwick-Braun; Joni and Tony Applegate, owners of Applegate’s PRO Hardware; Shari Kalbach, Managing Director of ProGroup; Branch Springer, CFO and COO of Bostwick-Braun.

Salesman of the Year Named This February, the Bostwick- Braun Company selected and awarded its Dealer Salesman of the Year, Mark Villa. Mark is a well-respected and highly regarded Dealer Sales Rep-resentative, covering stores throughout his territory in New York. “Villa is on top of it — I am very pleased with the service I receive from him,” says Jim Plumley of Carpenter’s PRO Hardware in Camden, New York. Such sentiments are repeated time and again for one of Bost-wick-Braun’s best, and his col-leagues and customers alike agree that the honor is fitting.

Employee of the YearEach year, one employee-owner is selected by his or her peers to receive the H.L. Thompson Jr. Memorial Award, recognizing the compa-

ny’s Employee of the Year. Chosen from an outstanding group of individuals who were nominated by their coworkers, the 2014 recip-ient was Jenifer Strater, Open Stock Supervisor at the Ashley, Indiana, Distri-bution Center. She plays an important role in caring for our customers’ needs and getting orders fulfilled and shipped to stores. Jenifer takes great pride in her

work, in the company and in helping others suc-ceed, and retail owners can take comfort know-ing that their goods are in the hands of such a dedicated person.

Jenifer Strater, 2014 Employee of the Year

SUPER SALES: The Bostwick-Braun Salesman of the Year presentation, from left: Jerry Clasey, President, Hardware Business Unit; Mark Villa, 2014 Salesman of the Year; Kirk Komendat, East Regional Sales Manager.

TREND WATCH

Innovative Ideas, GoodNews for Retail SalesA Sympathize With Your Customers, Earn Their Trust Companies that understand cus-tomer hardships and respond ac-cordingly can earn trust and repeat business. Studies show that only about 30 per-

from Toronto Lowe’s stores.

A Retail Sales Continue Heading Up U.S. retail sales will increase 4.1 percent in 2015, the Nation-al Retail Federation projects — the largest annual growth since the 5.1 percent increase in

2011. (This measure does not include automobile deal-ers, gas stations or restaurants.) The trade group also predicts that U.S. gross domes-tic product will increase 3.2 per-cent over last year. Employment is forecast to grow by between 220,000 and 230,000 jobs a month in 2015, and the national unemployment rate will likely dip to 5 percent.

cent of customers believe companies are committed to them, but by em-ploying a strategy called “sympathetic pricing” — special deals and discounts that acknowledge customers’ chal-lenges — you can show them you care and generate trust. One example

from the world of hardware retailing: After a December 2013 storm wreaked havoc on many of Toronto’s trees, Lowe’s Canada donated 1,000 red maples to the city. Each tree cost the company about $24; residents could pick them up first come, first served,

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✔ Cash In on Hot Design Trends Boost your bottom line by tapping into popular designs: This year brings a more sophisticated look, with gold tones and midcentury-modern ele-ments dominating home design, according to the 2015 Zillow Digs Home Trend Forecast. Zillow Digs’ top five design trends for the year:

A Gold fixtures

A Cowhide

A Wallpaper

A Blue accent colors

A Midcentury modern

� Plugging Energy Efficiency Into Sales One of homeowners’ perennial top concerns is energy efficiency, particularly when it comes to their lighting. Especially after phas-ing out incandescent bulbs, customers are becoming more aware of smart energy-man-agement systems and lighting that uses less power with no reduc-tion in light quality. Shoppers in search of lighting systems are looking for features such

as dimming and color changing. Increasingly, lighting systems also offer smartphone con-trol, along with motion detectors and automatic timers.

Sorting Out Popular Colors for 2015 Color palettes are one of the most fickle con-sumer trends. Stay on top of what will be in demand, and you can make better purchas-ing decisions and stay ahead of the curve. In general, this year’s most

popular hues are more muted than last year’s. Pantone’s color of the year is Marsala — a muted, dusky maroon that exudes a feeling of warmth. In addition, metallic colors such as gold and platinum will be popular among urban commercial consumers, according to Paint & Decorating Retailer magazine.

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HOT LIST

6 Sizzling New Products For Spring Jump into spring sales with these fast-turning seasonal products.

Clean Up, Quick and Easy Scotts Outdoor Cleaner Plus OxiClean quickly lifts dirt and wipes away stains from mold, mildew and algae. It’s ideal for cleaning just about any outdoor surface: cement, stone, wood, wood composite, vinyl, brick and many more. This product can also clean patio furniture and be used in power washers for larger jobs. With no chlorine bleach or phosphates, it’s safe to use around plants, lawns and fabrics. The one-gallon concentrate makes up to 10 gallons and contains hydrogen peroxide.

Scotts EDP: 609927

Flex With Strength In addition to being tough for long-term use, the 5/8-inch, 50-foot-long Flexogen Pro Industrial hose offers best-in-class kink resistance and a durable cover. High-strength steel couplings are made for long life, and the hose can

handle up to 550 psi.

Gilmour EDP: 632449

Spray With Power

This Gilmour Rear Trigger Industrial hose

nozzle is a smart choice for heavy use. The die-cast metal body has Thermo-guard insulation, and the handle is crush-resistant. Sturdily constructed with reinforced brass stem, nut and stem retainer, the nozzle can handle water up to 160 degrees and pressure up to 100 psi.

Gilmour EDP: 934488

Rev Up Car Colors With Rust-Oleum’s Automotive Peel Coat, drivers can add temporary racing stripes, color blocks and other customizations to cars. This temporary coating easily applies and peels off. Great for wheels, rims, hoods and more, Automotive Peel Coat adheres to bare or painted metal, plastic and glass. It has a high-build, smooth matte finish and is washable. Removal is recommended within three months.

Rust-Oleum EDPs: 950130, 950122, 950114, 950106, 950092, 950084, 950076

Bostwick-Braun Ad.indd 1 6/24/13 2:08 PM

Protect Decks With StyleSuitable for application on most exterior wood, Restore 12X Clear Coat Sealer provides protec-tion that lasts longer than typical sealers. One gallon covers up to 250 square feet, depending on surface porosity. The crystal-clear finish allows the wood’s natural look to show through the thick film atop it for ultimate protection against the ele-ments. The low-VOC formula has almost no odor, allows for one-coat application and can be ready to use within 48 hours. The surface then easily cleans with soap and water.

Rust-Oleum EDP: 950041

Flow With Strength Made with aircraft-grade aluminum, the octagonal crush-resistant coupling and Hose Armor II connect directly to a spigot. The kink-resistant PVC hose is reinforced for 400-plus psi burst strength. Made in America, the hose offers a limited lifetime warranty.

Swan Products EDP: 613452


MAGIC OF SPRING Hi-Way 3 PRO in Muncie, Indiana, has a loyal customer base. Find out more about how the store manages its assortment to appeal to a broad range of customers and become a lawn-and-garden destination.


HOW DOES YOUR LAWN &GARDENGROW?THROUGH A ROBUST COMMITMENT TO THE CATEGORY, HI-WAY 3 PRO HARDWARE IN MUNCIE, INDIANA, HAS BECOME A MUST-STOP FOR LOCAL HOME OWNERS AND GARDENERS. CO-OWNERS TONI SHARP AND DAVE SMITH SHARE THEIR TIPS FOR MAKING YOUR STORE A LAWN-AND-GARDEN DESTINATION. »

STORY BY BOB VITALE PHOTOGRAPHS BY EMMA PARKER

COVER STORY


Supposedly, there’s a scientific reason why the snow starts melting, the sun starts shining, the temperatures rise and the flowers bloom at the same time every year

in East Central Indiana.Or it could be because Toni Sharp has stocked

up the greenhouse again. It’s a 30-year-plus spring ritual for people

not just in Muncie, Indiana, but for miles and miles around as well: When it’s time to labor on the lawn, freshen the flower beds and gussy up the garden, it’s time to head to Hi-Way 3 PRO Hardware.

The store that started in a 12-by-12-foot cinder-block building 60 years ago — with founder John Sharp having just $50 in his pocket — has grown into a large local institution. There are now three stores in Muncie and nearby Hartford City, and

the original building has been expanded over the years into more of a complex than a store.

A lot of that growth has been fueled by fertil-izer, plants, seed, equipment and other products in a lawn-and-garden department that takes up a good 40 percent of floor space.

“I can’t do anything small,” says Sharp, the gardening whiz who built the department. A 1982 expansion added a 20-by-40-foot greenhouse to Hi-Way 3, and it has since grown into a local seasonal behemoth.

In spring and summer, the greenhouse and a temporary space outside house hundreds of varieties of flowers, grasses, tropical plants and perennials. “You can’t just have a yellow mum,” Sharp says. “You have to have 15 kinds of mums. It’s like that for every type of plant.” In winter, the greenhouse becomes a seasonal shop for holiday

Hi-Way 3 PRO co-owners Toni Sharp and Dave Smith believe a key to a successful lawn-and-garden department is constantly expanding and adjusting their goods. For example, they recently added fairy gardening accessories.


SPROUT SALES WITH THESE 6 SPRING PROMOTION IDEAS Paint the colors of spring. Bring in a local art-ist and give him some paint for a large canvas or an outside wall of your build-ing. Customers will linger watching him work, and his presence can entice new shoppers as well.

Sponsor spring cleaning. Winter’s end brings forth all the de-bris left from snow and slush. Sponsor a town-wide spring-cleaning day. Donate garbage bags and give a prize for most trash collected.

Spring garden photo contest. Ask customers to post photos of their garden on your store’s Facebook page. Give every customer who participates a discount coupon, and a small prize to the one with the most “likes.”

Go wild. Chicks are the symbol of spring, and selling these adorable little fowl can give you a bump in customer traffic. You could even section off an area of your parking lot for a small petting zoo.

Mother’s/Father’s Day specials. Set up a table where children can select a decorative pot and choose plants for Mom or Dad. Store employees can help the kids — and make suggestions about other products.

Tidy up trails. Sponsor a post-winter trail-maintenance day. Donate a few tools to a local conservancy group to help clean a local trail. Nature gets some mainte-nance, and volunteers get a chance to test-drive tools from your store.

plants and decorations. (“I have to heat it any-way,” she notes.)

A more recent addition to the inventory are the plants and accessories that cater to the whimsical hobby of fairy gardening. “You have to find some-thing to sell, and then something else to sell,” Sharp says.

Build a Loyal Customer Base This emphasis on lawn-and-garden supplies has been good for business, according to Nate Lan-ghals, the Bostwick-Braun sales representative who serves Hi-Way 3 PRO Hardware as part of a territory that stretches from the Indiana-Mich-igan state line to the Muncie area northwest of Indianapolis.

“They have a very loyal customer base,” says Langhals, whose springtime visits to the store sometimes mean parking in a far corner of a full lot.

Hi-Way 3 has developed into a lawn-and-gar-den destination because it stocks products that appeal to a broad range of customers. “Every hardware store carries lawn-and-garden products — fertilizers, mulches,” Langhals says. “But the amount of plants they bring in, it not only drives people to the store, it also increases the types of customers they draw. You see husbands and wives come in together.”

“You have to branch out in other areas — try to get as much

of the business out there as you can. You can always come here and

there’s someone to help you figure out your problem. We ask questions,

ask what they’re trying to do.”

DAVE SMITH


Hi-Way 3 PRO’s 20-by-40-foot greenhouse provides space for hundreds of varieties of flowers, grasses, tropical plants and perennials. Such live plants can boost spring sales, but before committing to selling plants, Sharp suggests allowing for enough employee time to care for them.

Among those husbands and wives: John and Toni Sharp, who came to the hardware store together for decades. John started the business in 1955, and Toni answered a want ad for a job there when she moved to Muncie more than a decade later. They met, fell in love, married and built the business together.

John passed away in January 2013. Toni now owns the trio of stores with longtime manager Dave Smith, who started working part-time for John 46 years ago when he was a student at Ball State University in Muncie.

Grow a Diverse Lawn-and-Garden Assortment The business partners say a diverse inventory is one key to success for independently owned stores, but so is expertise. Hi-Way 3 PRO Hard-ware carries everything from crockpots to chick-en wire, but Sharp and Smith point out employ-ees who are experts in remodeling, electrical work, plumbing and other fields.


“You have to branch out in other areas — try to get as much of the business out there as you can,” Smith says. “You can always come here and there’s someone to help you figure out your prob-lem. We ask questions, ask what they’re trying to do.”

That’s what separates Hi-Way 3’s lawn-and-garden department from bigger box stores, too. “We just don’t sell them a flat of flowers,” Sharp says. “If someone wants to know what goes in an area with shade, we help them. Everyone I have out there needs to be a gardener.”

Everything she has out there, too, needs to grow once it’s planted. Adding a greenhouse and selling plants is more than just finding the space in your store, Sharp says. It takes serious effort and commitment, and she advises that store own-ers make sure they can devote the time before they commit the resources to fortifying their garden offerings.

Flowers, hanging baskets and seedlings must be cared for constantly until they’re toted away from the cash register. If something starts to look bad, it needs to be pulled. If someone buys a plant that dies right away, you’ll hear about it, and so will your customers’ fellow gardeners.

“Don’t throw it up and expect the flowers to grow by themselves,” Sharp says. “It’s not like something on a shelf. You can’t sell dead flowers.” To help her gauge the current state of the mar-ket and interact with potential customers, she makes the rounds to garden clubs in Muncie and surrounding counties, talking about the latest trends and topics with the most ardent gardening enthusiasts.

Sharp keeps a close eye on gardening trends and listens to customer requests. By paying attention to customer demands, she added the fairy garden assortment of products that have sold well.

BE READY WITH DROP-SHIP FROM BOSTWICK-BRAUNDon’t be caught without the fastest-selling items this spring. By taking advantage of Bostwick-Braun’s drop-ship services, you can quickly restock, keeping your customers happy and your cash flowing.

“The drop-ship really helps us,” says Jeff Chamberlain, owner of General PRO Hardware in White-house, Ohio. “We’re looking for a good year. This year, we bought our soil at the Fall Market, because it was priced better than anywhere

else. With Bostwick-Braun, the price was good and they work with us really well.”

For more information about Bostwick-Braun drop-ship capabilities, contact your sales representative.


Cash In on Gardening Trends Lately, Hi-Way 3 has put more emphasis on perennials, custom baskets and plants that are ready to go into the ground. Grasses are big now, as are tropical-looking plants.

“When I first started, everyone was planting their own. Now they don’t want to wait for it to grow,” Sharp says. “But you know, we have such a short season here, people want instant gratification.”

Sharp has to keep a keen eye on gardening trends. One of the latest trends is fairy gardens: tiny landscaped dioramas of live plants, minia-ture figures, small buildings and outdoor fur-niture. Sharp learned about the hobby during a trip to Phoenix two years ago. Then she started getting calls about it from the garden clubs. Sharp believes other retailers could cash in

on this trend, too. Customers putting together a fairy garden often buy pots or containers, potting soil, moss and decorative accesso-ries such as garden gnomes or glass watering bulbs. In addition to adapting to such new trends, she makes her lawn-and-garden niche family-friendly.

Gardening, she observes, is a family activity: Grandmothers, moms, daughters and grand-daughters will come in to shop together for addi-tions to their gardens. More elaborate items can run upward of $50 each. “They don’t buy $20 to $30,” Sharp says. “It’s $80, $100.”

A Furrow’s store opened across the road from Hi-Way 3 a while back. Sharp says she thinks it actually brought more people into her store, and the chain outpost is gone now. “I can’t worry about that,” Sharp says of competition. Nor does she have to, much: Fittingly, given her specialty, her business continues to grow and grow. n

Hi-Way 3 PRO’s commitment to a large variety of lawn-and-garden products drives customers to the store, which began as a 12-by-12-foot store about 60 years ago and has grown into a large local institution with three stores in Muncie and nearby Hartford City.


NEW SERVICES AND PRODUCTS CAN BE A PATH TO MORE PROFITS.

BUT HOW MUCH MONEY AND TIME DO YOU NEED TO INVEST?

BOSTWICK-BRAUN DEALERS SHARE THEIR TOP WAYS TO ADD A NEW NICHE.

Stand still and the world will pass you by. Stick with the same niches and you’ll miss opport unities for new revenue streams.

The good news: Adding a new niche can be easier than you might think. To help you deter-mine which niches are right for your store, your Bostwick-Braun team can conduct demographic and marketplace research to develop suggestions for product-line expansions.

“I’ve seen a trend in the last couple of years of retailers adding space-saving niches,” says Gary Cadwallader, part of GC Merchandising for Bostwick-Braun. “It can make financial sense to add a new line or service. However much — or little — a dealer wants to change, we can help.”

To do just that, Bostwick-Braun dealers share their experiences with four niches and show you how best to incorporate them into your store. »

ADD AN I C H EEASY!

SMART BUSINESS STORY BY DOUG DONALDSON


NEW NICHE #1

UPS SHIPPING

About 15 years ago, a business that handled UPS

in Sodus, New York, closed, so The Country PRO

Hardware began offering the service. It’s become

an easy revenue stream for the store, responsible

for about $25 to $100 per week, store owner

Philip Tinklepaugh says.

• Floor space

About 32 square feet

• Initial investment

From $0 to $500 or more, depending on whether

you opt for a UPS computer setup

• Typical margin:

$5 per package

• Supplies

Postage scale, optional computer

• Time to recoup investment

Two months or less

• Employee time

About 10 minutes per package

• Trends

Christmastime is the busiest season; through-

out those weeks, The Country PRO Hardware

averages about five shipments a day.

• How to market

“Offering UPS brings people into the store,”

Tinklepaugh says. “While they’re here shipping a

package, they’ll also pick up something.”

• Tips

Be prepared for the busy season. Double-check

the prices you charge; you’ll be billed for any

mistakes. Tinklepaugh uses a book to check costs,

but UPS also offers a computer setup. It makes

things easier but will cost about $500 to install.

NEW NICHE #2

PIPE THREADING

Ever since McClain PRO Hardware in Hanover,

Michigan, first opened its doors, it has offered

pipe-threading services. It’s a rural store, so much

of its pipe-threading business stems from add-on

stoves, animal-watering systems and furnace re-

pair. Well repair, too; owner Brian McClain says he

does about three or four threading jobs a week.

• Floor space

About 100 square feet


$4,000

• Typical margin

35 to 40 percent

SMART BUSINESS ADDING A NEW NICHE

Kris Tinklepaugh weighs a package at The Country PRO Hardware, which relies on UPS shipping as a steady revenue stream.


• Supplies

Pipe-threading machine, cutting oil, stand, thread

dyes, pipe


About a year and a half

• Employee time

It’ll take about two hours to train an employee;

McClain estimates that he or she will spend about

two hours a week threading pipe.

• Trends

Customers coming in for pipe-threading ser-

vices often need other plumbing goods. McClain

estimates each customer who comes in for pipe

threading spends between $15 and $30 on addi-

tional items.

• How to market

McClain mentions his pipe-threading services in

his store’s PRO circular.

• Tips

Opt for a higher-quality cutting machine; cheap-

er ones won’t hold up over time and are more

difficult to use. Create a system of racks near the

threading machine to store pipe.

NEW NICHE #3

KEY CUTTING

For a (literal) turnkey business, few niches can

contribute as much to your bottom line as key

cutting.

“There isn’t a day that goes by that we don’t

have someone who needs a key cut,” McClain

says. “On average, we cut 50 keys a week or

more.”

• Floor space

6 square feet


About $2,300

• Typical margin

Per key, you can earn triple or more.

• Supplies

Key-cutting machine, display tower and key

blanks


About a year

• Employee time

About two hours to train; over the course of a

week, an employee might spend about two hours

cutting keys.

• Trends

Transponder keys for cars are a new, expanding

market for key cutting.

• How to market

Place the key machine by the checkout. McClain

PRO Hardware also mentions its key-cutting ser-

vices in its PRO circular.

• Tips

“Key cutting can be rushed,” McClain says. “But if

you take time and do a good job, your customers

will keep coming back.”

Within about a year, you can recoup your initial investment in a key-cutting niche.


NEW NICHE #4

SCREEN AND WINDOW REPAIR

The Country PRO Hardware in Sodus, New York,

has been offering screen and window repair for

nearly four decades. This niche has been a steady

moneymaker for the store in northwestern New

York state. “There are a lot of older houses in the

area,” says owner Philip Tinklepaugh. “Screen and

window repair is a good side business to keep us

busy. We do about 10 to 15 a month.”

• Floor space

About 100 square feet. Tinklepaugh suggests

setting up your screen-repair area in a part of

your store that’s not currently being used; The

Country PRO Hardware’s repair shop is in the

cellar.


Less than $500

• Typical margin

50 percent

• Supplies

Bulk screen, roller, utility knife, gray and black

splining, flat 4-by-8-foot workbench, aluminum

and fiberglass framing, tin snips, glass


About six months

• Employee time

About two hours of training; about 30 to 45

minutes per screen or window, depending on

complexity

• Trends

Expect more screen repairs in the spring and

after storms. Winter is generally the slowest time

of the year.

• How to market

Run an ad in the local Pennysaver newspaper.

Advertise the service as well on in-store

information boards.

• Tips

To make repairs faster, Tinklepaugh drilled a hole

through the repair workbench and runs a spool

of spline through it for easier access. n

SMART BUSINESS ADDING A NEW NICHE

For John Avery, an employee at The Country PRO Hardware, spring is the busy season for screen repair.

Paint The Bottom Line Green

WithAdd-ons TAKE ADVANTAGE OF HIGH-MARGIN PAINT

SUNDRIES WITH THESE POINTERS ON DISPLAYS,

EMPLOYEE TRAINING AND PROMOTIONS.

On a typical can of paint, margins can be as thin as a layer of, well, paint. While the col-

orful stuff is a core category that drives customer traffic, it can also drive profits if your sales of paint sundries are strong. You might see only a 20 per-cent margin on some paint, but accessories really enable you to layer on an extra coat of profits.

Margins on paint accessories can range from 25 to 50 percent or more, according to Paul Des-Rosiers, Bostwick-Braun Product Manager for the paint category. To make the most from your paint department, you need robust add-on sales. Here, DesRosiers, along with two retailers who have ro-bust paint departments, share tips for add-on sales.



REMERCHANDISE = PROFITSMake your paint department work harder for you without spending a dime. By remerchandising products in a best-better-good order from left to right, like paint thinner at Weiders Paint & Hardware, you can highlight higher-margin products.

Your store’s color center and paint-mixing

counter are where your employees should be

asking customers about their paint projects.

Make sure staffers know that customers

buying high-end paint will also pay for

higher-level paint sundries.

Go with the high-end flow. Customers who insist on top-quality paint are good candidates to be stepped up to higher-end add-ons. “If a customer is buying good paint, a cheap brush isn’t going to get the results they want,” DesRosiers says. “Look to sell them better-quality brushes and rollers.”

Know your margin leaders. Some of the highest-margin products in paint sundries include drop cloths and plastic coverings. Margins might not as be as high, by contrast, on some name-brand products such as brushes, for which customers may have brand recognition and be more price-aware.

Switch your displays to best-better-good. Turn the conventional good-better-best display tactic on its head. A seemingly small change in paint add-on merchandising has made a big difference in profits for Weiders Paint & Hard-ware in Rochester, New York. Owner Ned Green displays the highest-quality products on the left, medium-quality in the center and lowest-quality on the right. “Just the way we place things on the shelf can make a difference,” Green says. “We did it first with glue to see how it would work. Soon, the highest-quality glue was outselling all the others. We’re doing this switch throughout the store now.”

Prepare employees for add-on sales. For a smooth, long-lasting job, the surface to be painted must be prepped. For strong add-on paint-department sales, employees need to be prepped, too. The time when a customer’s paint is being mixed is the perfect occasion for employees to ask questions and promote sundries.



Splash some color at the front of your store. To increase awareness of his paint department, Mark Barbero, owner of Debbie PRO Supply in East Rochester, New York, moved the color display near the front of the store. With assistance from Bostwick-Braun’s store-reset team, his paint department was completely reset within three days. “Now, in our paint department, customers can turn and see all our paint add-ons: sandpaper, thinners, brushes, rollers,” Barbero says. “More customers check out our paint department because of the new layout.”

Carry a large selection . . . Although customers might need only one or two brush sizes, having a large number of them makes it clear that you can provide whatever they want. “When homeowners come in, they like to have a big selection,” Barbero says. “You can’t get away with having two or even four sizes of brushes.”

. . . But selectively manage the assortment. While carrying a large assortment of some paint sundries is beneficial, fewer is better for other products. At Weiders Paint & Hardware, Green offers a variety of prices on white and clear caulk. However, he usually stocks just higher-end versions of colored caulk. “Customers looking for colored caulk have an investment in their project and want the best,” he says.

Add deck supplies. An expanding area of paint-department sales is deck repair and resto-ration. Customers are looking for products to preserve their wood decks,

such as Rust-Oleum’s Restore 12X Clear Coat Sealer. Spring is a smart time to promote these goods, because it’s when homeowners first step back onto their deck and assess their need for post-winter repairs and sealant.

Evaluate displays. Green continually reviews how paint sundries are displayed; these evaluations can lead to more-effective and better-selling displays. This past year, he remerchandised his spray-paint section, changing from a horizontal to a more vertical display. After the swap, customers were better able to see the paints and find the colors they were looking for.

Evaluate your

paint depart-

ment to be

sure sundries

are visible

from the

paint-mixing

area. Custom-

ers have time

to browse and

make impulse

buys while

their paint is

being mixed.


Market your paint department to your customer base. One Weiders Paint & Hardware is in an urban market; the other is more rural. In the former, Green promotes paint in a “new movers” program. At the rural location, direct-mail coupons for $5 off have been successful.

Aid your paint department with promotions.After Debbie PRO Supply’s paint department was reset, Barbero produced radio and TV ads to tout it. He also relied on his PRO circulars to promote paint and paint add-ons.

Shake out sales next to the counter. The area around your shaking machine shouldn’t be bare. Place impulse- buy items on the nearby counter or within reach of your shaking machine. Even if you don’t have room on your counter for a tape display, position an endcap nearby.

Continually educate your employees. Because the paint department is such an essential part of Weiders Paint & Hardware, Green makes an effort to keep employees up to date about trends. He’ll often have paint sales representatives speak with his employees, espe-cially if a new product is about to be introduced. “I like to get new products in employees’ hands and have demonstrations,” Green says. “That way, they can better explain features and focus on what customers need.” n

Customers

often expect a

wide selection

of products

in some cat-

egories, such

as rollers and

brushes. But

in other paint

sundries cate-

gories, such

as high-end

colored caulk,

you can better

manage your

assortment

with fewer

products.


Proven Profits ADDITIONAL LINES

OF PROVEN BRANDS

PRODUCTS GIVE

BOSTWICK-BRAUN

DEALERS A

COMPETITIVE

ADVANTAGE.

Like a seed that has taken root and is flourishing, the Prov-en Brands line of products

has grown and is helping Bost-wick-Braun dealers reap higher margins and better compete with big-box stores.

During the 2014 Fall Market, Bostwick-Braun unveiled its ex-panded Proven Brands line. Along with previous Proven Brands prod-ucts such as tarps and faucets, deal-ers at the Market could order other new items including toilet seats and door-lock sets. This past fall, Bostwick-Braun expanded the Proven Brands line

to include products such as door-lock sets.

Mike Lisac, owner of Warehouse Sales PRO Hardware, says Proven Brands outsell other name brands.


Top-quality Proven Brands goods enable dealers to save money through supply-chain efficiencies, and Bostwick-Braun fully supports Proven Brands’ items because it’s involved in their production at every stage of the process. The company offers manufacturers precise specifications and input, then monitors how the goods are developed and completed, accepting only the high-quality work-manship that Bostwick-Braun dealers and their customers expect.

Proven Brands, in turn, enables Bostwick-Braun retailers to differentiate themselves from the com-petition while saving money. “By cutting out all the middlemen and going factory-direct, we’re buying as good as anyone can buy,” says Russ Parish, Bost-wick-Braun product manager. “From a profitability standpoint, Proven Brands allow dealers to be com-petitive with any other store.”

Beat the Big Boxes For Jeff Chamberlain, owner of General PRO

Hardware in Whitehouse, Ohio, Proven Brands provides product recognition. His store carries a wide assortment of Proven goods, including plung-ers, toilet wax rings, tarps and faucets.

“Big-box stores are in any direction from me within 11 miles,” Chamberlain says. “I need to have products priced right, but not give the products away. With Proven, my margins are up and I can thrive. I get 35 to 40 percent margin while still beating the box. It’s really strategic in the market-place and has increased my bottom line.”

Mike Lisac, owner of Warehouse Sales PRO Hardware in Sharon, Pennsylvania, has carried Proven Brands tarps and faucets for a couple of years and recently added entry locks and plungers. “Proven Brands faucets outsell other name brands,” he says. “The lower price with reliable quality fits the right niche for our customers.”

Chamberlain, whose store has carried Proven Brands since it first opened, has also seen quick turns with Proven Brands faucets. “They sell about five-to-one better than brands like Moen and Del-ta,” he says.

“Proven Brands are something the big boxes don’t have,” Lisac says. “It’s something customers can seek out, and only we have it.”

Easy to Add To add Proven Brands products to your store,

simply contact your sales representative, who can help you integrate Proven Brands displays with ease.

“The door locks and tarps went right into our store,” Lisac says. “It’s simple to incorporate, and the margins are higher, so I’d say it works really well. I’d tell other dealers Proven has worked well for us and is worth a try.”

Chamberlain’s one question for other dealers: “Why are you taking so long to add Proven? It’s a no-brainer.” n

Proven Brands allow dealers to compete on price but still maintain highly profitable margins.


CHECKOUT

A HIGH MARGIN

Sprayer

25–30%

D HOW TO SELL MORETrain employees to ask how

much chemical a customer

needs and explain that for

larger jobs, concentrate and

sprayers save money.

B LOW MARGIN

Lawn and garden chemicals

15–20%

A HIGH MARGIN

Trimmer line

30–45% D HOW TO SELL MOREGauge customer use

and, for bigger yards,

suggest larger rolls

(such as 1,000 feet)

of trimmer line.

B LOW MARGIN

String trimmer

15–20%

A HIGH MARGIN

Mower replacement parts

30–40%

D HOW TO SELL MOREEspecially if parts aren’t displayed

near mowers, create a display

featuring one or two types of

replacement parts: blades,

fuel lines, tune-up kits,

spark plugs and filters.

B LOW MARGIN

Lawn mower

10–15%

A HIGH MARGIN

Work gloves

30–45%

D HOW TO SELL MOREPlace endcaps including work

gloves at the end of the

garden tool aisle. This

spring, put gloves near

the checkout counter to

encourage impulse buys.

B LOW MARGIN

Long-handle garden tools

20–25%

Margin CombosBOOST YOUR BOTTOM LINE BY SELLING LOW-MARGIN ITEMS WITH HIGHER-MARGIN

ADD-ONS. THIS CHART SHOWS HOW TO PAIR SUCH ITEMS, ALONG WITH TIPS FOR

MAKING THE SALE. MARGINS OF THESE PRODUCTS VARY BASED ON REGION,

COMPETITION AND INDIVIDUAL DEALER PRICING.

BUY ONEGET ONE

OFF!1/2

BUY ONEGET ONE

OFF!1/2

BUY ONEGET ONE

OFF!1/2

The Bostwick-Braun Company is offering great incentives on separate 4’ Planograms of our locksets, of our initial line of faucets, and

our new extended line of faucets. The price on each of these groupings equates to buying one item and getting the second at half price.

This is an incredible opportunity to fill your shelves with high quality and strong margins!

SPECIAL INTRODUCTORY OFFERSPECIAL INTRODUCTORY OFFERSPECIAL INTRODUCTORY OFFER

Talk to your DSR or call our Customer Service Department for complete information.

Proven Brands • www.bostwick-braun.com • 1-800-660-1432

the anvil spring 2015

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