Hardware Merchandising Jaunuary/February 2013

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| JANUARY/FEBRUARY 2013 | www.hardwaremerchandising.com | 3 |

Contentswww.hardwaremerchandising.com

18

Lessons from the PastAs a hardware and home improvement dealer, what would

you tell someone who wanted to know how to survive in

the business? To find the answer to that question, Aimee

Feaver interviewed nine retailers running hardware and

home improvement stores that have been in operation for

a collective 831 years. She didn’t find a magic bullet but

she did discover 11 best practices for retail longevity.

Liesemer Hardware, Mildmay, Ontario.

p03-08 HMM JanFeb13 ContEdit.indd 3 13-02-13 2:43 PM




| 4 | www.hardwaremerchandising.com | JANUARY/FEBRUARY 2013 |

Contents

hardwaremerchandising.com

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Hardware Merchandising, established in 1888, is published 6 times a year by

BIG Magazines LP, a division of Glacier BIG Holdings Company Ltd.

editor: Lori Smith 416-442-5600 x3238

[email protected]

art Director: Ellie Robinson 416-442-5600 x3590

[email protected]

Production manager: Barb Vowles416-510-5103

[email protected]

Circulation manager: Beata Olechnowicz 416-442-5600 x3543

[email protected]

associate Publisher: Robert Koci 416-442-5600 x3203

[email protected]

editorial advisory Board: Chris Curtis, Alf Curtis Home Improvement; Michel Fréchette, RONA; Chris Galer, Poco Building Supplies; Dan Hardy, Central;

Bob Lockwood, Lockwood RONA; and Tyler Knight, Knights’ Home Building Centre.

BIG maGaZInes LP

Corinne Lynds, Editorial Director

Tim Dimopoulos, Executive Publisher

Alex Papanou, Vice-President

of Canadian Publishing

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of Business Information Group

subscriber services: To subscribe, renew your sub-scription or to change your address or information contact us at 416 442 5600 x3543 or 3249. Subscrip-tion Rates: Canada $63 per year, Outside Canada $94US per year, Single Copy Canada $12.

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Contents of this publication are protected by copyright and must not me reprinted in whole or in part without permission of the publisher.Publications Mail Agreement No. 40069240, ISSN 1199-2786 (Print) | ISSN 1929-6428 (Online)

We acknowledge the financial support of the Government of Canada through the Canada Periodical Fund (CPF) for our publishing activities.

JanUarY/feBrUarY 2013Volume 125, Number 1

DePartmentsROB KOCI | 6LORI SMITH | 7

SNAPPED

CHIS WELCOME PARTY

+ LBMAO DINNER | 32

WRLA PRAIRIE

SHOWCASE WELCOME

PARTY + CLOSING

NIGHT PARTY | 33

AQMAT 1ST RECONNAISSANCE

GALA | 34

taKInG Care of BUsInessHM Top Ten | 12

How to Calculate Added Value | 14

Is Your Business on the

Right Track | 16

stoCK & seLLDecked Out | 25

The Power of Overhead

Storage | 28

New Products @

2013 Prairie Showcase | 30

CovEr | Design by Ellie Robinson | Photo: Hemera/Thinkstock.com

h a r d w a r eMe

rc

ha

nd

isin

gTo learn more, visit home-owner.ca – or talk to one of us.

Dunc Wilson, National, 519.498.1302

Kevin MacDonald, Atlantic Canada, 902.368.1620

Luc Martin, Quebec, 819.357.0203

Andrew Parkhill, Alberta, British Columbia, 604.751.3853

Georgette Carriere, Ontario, Manitoba, Saskatchewan, 519.501.5988

HOME OFA MOREREWARDINGEXPERIENCEHome Hardware isn’t just the number one banner for independent dealers – it’s also one of the most awarded. This year, five out of eight of Hardware Merchandising Magazine’s 2012 Outstanding Retailer Awards went to Home Hardware Owners. Their hard work, combined with the structure and support of Home Hardware Stores Limited, allowed them to flourish and to receive the recognition they deserve. Congratulations to all our Outstanding Retailer Award winners. Next year, it could be your accomplishments we celebrate.

Community Leader John Kehler and Gary Gilchrist Vernon Home Building Centre Vernon BC

Best Young Retailer Tyler KnightKnights’ Home Building CentreMeaford ON

Best Building Supply/Home Improvement Store Over 25,000 sq. ft.Rob HauserHauser Home Hardware Building CentreCamrose AB

Best Building Supply/Home Improvement Store Under 25,000 sq. ft.Larry and Sylvia YanchishynKenora Home Hardware Building CentreKenora ON

Best Hardware StoreOwen and Wanda ConnollyDauphin Home HardwareDauphin MB

9 at the BorDeroperating on the front lines.



mailto:[email protected]


















To learn more, visit home-owner.ca – or talk to one of us.

Dunc Wilson, National, 519.498.1302

Kevin MacDonald, Atlantic Canada, 902.368.1620

Luc Martin, Quebec, 819.357.0203

Andrew Parkhill, Alberta, British Columbia, 604.751.3853

Georgette Carriere, Ontario, Manitoba, Saskatchewan, 519.501.5988

HOME OFA MOREREWARDINGEXPERIENCEHome Hardware isn’t just the number one banner for independent dealers – it’s also one of the most awarded. This year, five out of eight of Hardware Merchandising Magazine’s 2012 Outstanding Retailer Awards went to Home Hardware Owners. Their hard work, combined with the structure and support of Home Hardware Stores Limited, allowed them to flourish and to receive the recognition they deserve. Congratulations to all our Outstanding Retailer Award winners. Next year, it could be your accomplishments we celebrate.

Community Leader John Kehler and Gary Gilchrist Vernon Home Building Centre Vernon BC

Best Young Retailer Tyler KnightKnights’ Home Building CentreMeaford ON

Best Building Supply/Home Improvement Store Over 25,000 sq. ft.Rob HauserHauser Home Hardware Building CentreCamrose AB

Best Building Supply/Home Improvement Store Under 25,000 sq. ft.Larry and Sylvia YanchishynKenora Home Hardware Building CentreKenora ON

Best Hardware StoreOwen and Wanda ConnollyDauphin Home HardwareDauphin MB



My first foray into retail was as a consultant. In 1991, I was asked by a book and video store franchisor to look into the accounts of a number of his franchisees. They were in dire straights. He was desperate to keep them alive as long as possible because he held the leases. If they went bust, he was not far behind.

To assess their positions, I made a simple cash flow spread-sheet in Excel (Lotus 123, actually. I told you it was a long time ago!), visited their stores and punched in their projected sales.

None of the stores I visited could be saved. In each case, it was clear the best option was to have a big sale to clear stock and pull cash, then lock the doors, walk away and never look back.

That was the best option for the franchisees, anyway. My client wanted them paying rent for as long as possible while he negotiated his way out of the lease agreements.

It was not a comfortable position for me. I remember one franchisee in London, Ontario—a hus-band and wife. The store had the down-in-the-heels vibe typical of a business locked in a financial death spiral. The little stock they had sat pathetically spaced out to hide the emptiness. The few customers that entered left quickly. The ones that lingered and talked and bought a trinket or a book did so for pity’s sake. Anyone who has done retail knows the funereal feeling I’m referring to. The wife was working 12-hour days at the store without pay while the husband worked two jobs, starting at 3:00 a.m. delivering newspapers, then as an electrician through the day. They had sunk $100,000 of their hard-earned money into the store—the ma and pa dream they couldn’t let die.

My arrival had been heralded by the franchisor as the beginning of their salvation, so they looked at me with an expectation I knew I could not fulfill. I had a lovely dinner with them and their two daughters. We sat down in their tidy living room to talk. God, it was awful. The only mitigation for the grinding sadness was their character, the kind that makes me think of frontiers and settlers and the people that make countries great. The kind of people who suffer a dying dream with grace.

My next encounter with retail couldn’t have been more different. Writing for Hardware Mer-chandising in the late ‘90s and early 2000s, I visited some of the most successful hardware stores in the country: Perth Home Hardware, Dick’s Lumber, Preston Hardware. I talked to retailers like Lansing Buildall’s John Kitchen; Executive Home Building Centre’s Jason Welikoklad; and Brad West before he left Castle to join Jeld-Wen. I met dozens of people who were full of energy, ideas and—significantly—success and money.

Publishing lives on the same continuum: there is the sweaty desperation of a magazine going bad at one end and the nimble, dancing excitement of a bright future and ongoing success at the other. After a rough couple of years, we’ve redesigned and restaffed this magazine. Now we are re-energizing this 125-year-old brand into the must-have, go-to brand that the Canadian home improvement market deserves.

Fresh into my new role as associate publisher of Hardware Merchandising, I attended the BMR trade show in Quebec City, then went back to attend the AQMAT awards a few months later. There was dancing. Lots of it. Who knew Castle president Ken Jenkins has moves like Jagger? And TIM-BR Mart president Tim Urquhart, too? I took note, and got up and danced. ~ R.K.

roB KoCIAssociAte Publisher

[email protected]

© Richard Goerg /iStockphoto/Thinkstock

It's snowing. Should you raise the

price of your store's limited sup

ply of shovels? This question was

posed in a recent post by Rafi

Mohammed on Harvard Business

Review's Blog Network. An un

scientific survey of his friends re

vealed that "most felt it was okay

to raise prices... enough to earn

a tidy extra profit." He was sur

prised by the result and not sure

he agreed. He explained that the

question brings up a whole "array

of fairness questions." He writes:

"Is it worth it to potentially alien

ate customers for a quick profit

windfall? Or, to take another

view of the situation, if store

owners take the risk of pur

chasing a large inventory of

shovels for the winter sea

son, don't they deserve to

profit?" What would

you do? ~ L.S.

hello, My naMe is rob

as

so

cia

te




I am a baseball fan so it's no surprise that a post by the St. Louis Cardinals' mental trainer on SmartBlog on Leadership caught

my eye. Writing about "coaching optimism," Jason Selk outlines "four easytolearn and highly effective ways to culti

vate an optimistic outlook." They are: 1. Coach your staff to develop a relentless solution focus (RSP). 2. Teach them to

find one improvement to the situation. 3. Train them to acknowledge any improvement in the current situation. 4. Encour

age them to recognize "done wells." Using these techniques, Selk helped the Cardinals end a 20year drought

and win two World Series (2006 and 2011). Would spring training in optimism help your team? ~ L.S.

©iStockphoto/Thinkstock


LorI smItheDitor

[email protected]

This year Hardware Merchandising is 125 years old. Founded in 1888 as Hardware & Metal magazine, it has ridden the changing

tides of commerce and consumer behaviour, and weathered the Great Depression and World Wars I and II as well as myriad recessions. Five years ago to mark the magazine's 120th birthday, Steve Payne, the magazine's former editor and publisher (and current editor of HM's sister publication, Canadian Contractor), wrote a retrospective on the magazine. Having visited the Thomas Fisher Rare Book Library at the University of Toronto to read the earliest editions of the magazine, he was able to chronicle not only the magazine's history but the Canadian hard-ware and home improvement industry's history. And leafing through those early editions, he made a discovery: the issues facing dealers (competition, fair pricing, consolidation, consumer needs, cash flow, inventory management, marketing, etc.) have changed little over the decades.

Making it to a 125th anniversary is a remarkable achievement for any business. To cel-ebrate, we decided not to revisit our history but to see what we could learn from stores that had also made it to, and past, the 125-year mark—stores that could have been on the original subscriber list. In "Lessons from the Past," Aimee Feaver interviewed nine hardware and home improvement retailers running businesses that have been operating for a collective 831 years. From those conversations, she was able to distill 11 tips for surviving in retail. Leading the list are knowing and serving your customer and being able to change with the times.

Today, dealers are facing a barrage of challenges in the form of e-commerce, consolida-tion, pricing, and competition. Your store's success (and longevity) will depend on how well you meet those challenges. But they are no more daunting than the challenges dealers have faced over the last 125 years. They can be survived.

We know this from experience. A magazine has to evolve with its customers and the times too. In the year ahead, you'll find more changes in our print and online products. We want to make sure Hardware Merchandising is around for another 125 years.~ L.S.

Hardware Merchandising's

founder John Bayne

Maclean offered a

l ist of eerilyfamiliar

retailer sins in the

January 10, 1889 edition.

This list (with apologies for

the "he") included:

When he does not

understand his business.

When he is too honest,

giving more than he

gets for his money.

When he is too anxious

for trade, giving credit

indiscriminately.

When he is cranky,

crusty or illtempered.

When he depends

on others to buy his

goods for him.

When he or his help

are untidy or unclean.

When he is too busy to

read trade journals...

happy 125thanniversary!




The ORAs are supported byThe ORAs are owned and produced by

Visit www.hardwaremerchandising.com/ORAs/ for up-to-date information

EntER

HARDWARE MERCHAnDISInG’S 2013 OUtStAnDInG REtAILER AWARDS (ORAs)The ORAs are the home improvement industry’s premiere independent awards program. All Canadian home improvement retailers that have operated under the current ownership for at least two years are eligible to enter.

CAtEGORIES

IS YOUR StOREOUtStAnDInG?

• Best Hardware Store• Best Building Supply/Home Centre (under 25,000 square feet)• Best Building Supply/Home Centre (over 25,000 square feet)

• Best Large Surface Retailer• Best Contractor-Specialist Dealer• Best Young Retailer• Community Leader• Local Hero


http://www.hardwaremerchandising.com/ORAs/


BCCalculatingValue Added p14

Taking Care of Business

At the Border

ADVICE | InsIght | InspIrAtIon

Your Businesson Right Track p16

Lessons fromthe Past p 18

Photography by Dax Melmer

GreG DrouillArD k n o w s M o R e T h A n A L i T T L e ABouT Runninga business in close proximity to the

Canada/US border. Target Building

Materials has been operating for 46

years in Windsor, Ontario, a city of just

over 317,000 that sits on our side of

the 49th parallel, directly across from

Detroit, Michigan. Competition from

the US has always been a challenge.

But, says Drouillard, the back and

forth of building supplies across the

border is increasing. Sales representa-

tives from U.S. retailers are staking out

territories in southwestern Ontario

and visiting job sites. Menards, a ma-

jor building supply and home centre

retailer from the U.S. Midwest, has

spread eastward and is opening new

stores in the Detroit area. And, with

the dollar at par, Canadian DIYers, con-

tractors and builders are making the

easy trek southward in search of lower

prices and greater product selection.

The problem, says Drouillard, is that

not everything available in the States

meets Canadian regulations and build-

ing codes. The lines are getting blurry.

“Clarification,” he says, “is needed.”‹

Operating on the front linesBY lori SMiTH

p09-11 HMM JanFeb13 TCB Profile.indd 9 13-02-13 2:38 PM



Drouillard’s father, Moe, opened Target Building Material’s doors in 1967. At that time and throughout the ‘70s and ‘80s, it was primarily a contractor resource. In the ‘90s, the growth of the DIY market brought consumers to the store and now they account for 35 per-cent of its business, while contrac-tor and institutional sales make up 55 percent and 10 percent respec-tively. However, Drouillard says that though they’re grateful for the retail business and are work-ing everyday to learn about and improve services and products for DIYers, the core of the store’s busi-ness will always be contractors.

Target’s deep roots in the commercial side of the building industry mean that staff members have to have exceptional prod-uct knowledge. Thanks to careful hiring and in-depth training the technical expertise of Target’s staff is definitely one of its competitive advantages. ”We were somewhat concerned when the big boxes entered the market,” Drouillard explains. “But what’s happened is that a contrac-tor or consumer will go into one of these stores and ask a technical question about a product or its application and the staff member

won’t know what the customer’s talking about so they literally send people to us.”

Customer care also differenti-ates Target from its competitors. Twelve full-time staff members make sure customers are in and out of the store and back at the job site as quickly as possible. Long-standing relationships with vendors and staff members will-ing to research and source prod-

ucts also contribute to the store’s success—and longevity. “It’s commonly said in Windsor that if you can’t find something, call the folks at Target,”

says Drouillard. “Our staff is eager. We have young guys who’ll get on the Internet and find products for people. It’s incredible.”

Drouillard adds that staff members are asked on a regular ba-sis what products the store should consider bringing in and whether there’s something missing in terms of customer service, merchandis-ing or marketing. “We ask staff a lot of things and they come up with a

AT The BoRDeRBC

Photography by Dax Melmer




Boris Radavanovic takes care of

technical sales

lot of suggestions,” he says. “I’m in an office so I don’t in-teract [with customers] as much as I used to but my staff does so we really listen to them.”

While Drouillard may work primarily in the office now, it wasn’t always the case. He joined the family business in 1974 under the self-imposed condition that he learn the business from the ground up. “I’d never intended to work for my Dad. I’d been work-ing at Air Canada for four years and the opportunity to move to Montreal with them came up. I think my Dad said, ‘Oh-oh, the

kid’s going to leave’ and we came to an agreement,” he explains. “I did every job in the company for a good length of time. I drove the trucks. I worked in the warehouse. Inside sales. Outside sales. Pur-chasing. And here I am 38 years later. I have a great respect for my staff because I’ve done their jobs. And I think they have respect for me because I’ve done the work.”

Drouillard also respects, and has earned respect, in the Ontario building industry. He is not only a member of the Toronto Builders

Suppliers Association (TORBSA), the Canadian Federation of Inde-pendent Business (CFIB), the Spe-cialty Tools & Fasteners Distribu-tors Association (STAFDA), and the Lumber and Building Materials Association of Ontario (LBMAO), but has held executive positions in these associations (LBMAO di-rector and past chairman; past di-rector and president for STAFDA; current director—third time—and past president for TORBSA). He is also presently serving as an advisor for the Essex/ Kent Coun-ty Better Business Bureau.

There’s no doubt that he knows the industry’s rules and

regulations. As a result, his con-cerns about the increase in build-ing materials coming across the border are centered as much on the issues of building safety and liability as they are on competi-tive grounds.

Drouillard points out that with some 80 percent of the Cana-dian population living within 200 kilometers of the border to the U.S., this flow is a cross-country concern. “Building officials are es-sential to making sure U.S. prod-ucts conform and everybody is on a level playing field. If the products do meet Canadian codes, then we have a worthy opponent.”

AT The BoRDeR BC

Dean warner handles the warehouse, delivery and sales at Target.



three

nine

ten

oneCEO ROBERT DUTTON LEAVES RONA AFTER 35 YEARS OF SERVICE

Mo

st V

iew

ed


BC HM TOP TEN

top10

two

eightTOOL TImE TOO:Stanley’s launch of its new line

of FatMax corded tools and lithium-ion

powered cordless tools also drew

the attention of online readers.

RONA ANNOUNCES NEw STRATEgIC PRIORITIES

ROBERT DUTTONNo Americanization

on His Watch

fourON OCTOBER 11th, LOwE’S CANADA PRESIDENT ALAN HUggINStweeted that lowes.ca’s

e-commerce function was

up and running and that

he had placed an order.

sixHm CELEBRATED THE EIgHT wINNERS of its Outstanding Retailer Awards

on October 25th with a Gala Dinner

at the Toronto Sheraton Airport

Hotel & Conference.

RONA CALLS ANNUAL mEETINg OF SHAREHOLDERS

www.hardwaremerchandising.com’s most-read stories

sevenTOOL TImEMilwaukee’s introduction of its

“ground-breaking, cordless”

M18 FUEL ½” Drill/Driver and

M18 FUEL ½” Hammer Drill/Driver

had visitors to the site clicking.

fiveINVESCO CANADA CALLS FOR RONA

SHAREHOLDER mEETINg TO

OUST BOARD OF DIRECTORS

35,0005,000

18545

751

Products in our warehouses

emPloyees

stores

years of exPerience

Private brands

hardware and building material warehouses

great Purchasing

Power

For more information, contact Jean falardeau, executive vice-president, telephone: 1 800 361-0885

TM

SAY IT AIN’T SO JOE!

On January 31st, Natural Resources

Minister Joe Oliver announced that

the Federal Government was cutting

off the popular ecoENERGY Retrofit

program two months early. It was

good for consumers and home

improvement retailers but bad

for the government coffers. Photo: www.joeoliver.ca

Photo © Roger Yip

2012’s

p12-17 HMM JanFeb13 TCB Top10_Columns.indd 12 13-02-13 2:27 PM

http://www.hardwaremerchandising.com%E2%80%99s


http://www.joeoliver.ca

35,0005,000

18545

751

Products in our warehouses

emPloyees

stores

years of exPerience

Private brands

hardware and building material warehouses

great Purchasing

Power

For more information, contact Jean falardeau, executive vice-president, telephone: 1 800 361-0885

TM


http://www.bmr.co

HOw TO CalCulaTE ValuE-addEdBC


My definition of value added is the difference between the price your company pays for a prod-uct and the price your customer pays—frequently referred to as gross profit. When you include the services you and your compa-ny offer, the value added should grow in the customer’s mind.

Here’s how this concept looks as a formula: • Your Customer’s Cost lessYour Company’s Cost + Services = Value Added (GPM)

The definitions of gross profit margin and gross profit are: • Gross Profit Margin (GPM)

= your gross profit divided by your sell price (expressed as %)

• Gross Profit = your sell price less your cost of goods sold (expressed in dollars)

It is the sales force’s job to jus-tify to the customer the amount of markup or value added that the company earns over and above the company’s cost. When the sales force fails to justify as much mark-up or gross profit as your company adds to its cost, you often lose the order to a competitor.

Here are a few of the possibili-ties that could cost a salesperson the sale: • For whatever reason, the salesper-son was simply outsold by the com-

petition. A competitor was more persuasive, had a better relationship with the customer or presented their case more effectively.• The competition had a lower sell price because they negotiated a lower cost when they purchased or manufactured the product.• The competition had a lower price because their bid contained less value added than your com-pany offered.• The competition had a lower price because they were willing to make the sale and earn a lower gross margin.• The competition offered a lower price and the customer perceived the competition’s value added to be greater than your company offered.

Customers almost always do their best to make buying decisions based on reasons they believe to be in the best interest of their company.

Many times, however, they get their emotions involved in the decision-making process or are mis-informed. Therefore, it’s the salesper-son’s job to make sure that the cus-tomer is armed with all of the facts.

The customer must scruti-nize the items that make up the quote to make sure that each bid received is comparable. If the customer is not willing to do this much analysis, the salesperson is advised to do it for them.

Service FactorsThe following are measurable ser-vice factors that may or may not be included in your competitor’s bid:• Return policy• Terms of sale• Restocking charge• Delivery capability, size and

capacity of equipment, etc.• Accuracy of deliveries• Manufacturing or assembly

capability• Services the respective sales-

people personally perform• Quality of estimates• Quality of material• Accuracy of billing• Installed sales capability• Incidences of backorders

How effective is your sales force at justifying your company’s value

added? Ways to communicate value added would be a good topic for an upcoming sales meeting. Compa-nies that measure service are better able to answer the following ques-tions to quantify their value added:• What are the odds the products you sell will be delivered to the customer by the time you commit that they will be delivered?• What are the odds the products you sell will be delivered complete with no back orders?

• What are the odds the products you sell will be invoiced correctly (prices on the invoice same as the prices on the purchase order)?

These are very important questions for your customers to consider because when errors oc-cur on the delivery or in the billing of the products they are depend-ing on, your customers cannot live up to the commitments they make to their customers.

Just remember, it’s the pur-pose of the sales force to impart upon customers and prospects the VALUE that both the sales force and the company provides.

The VALUE a salesperson of-fers is equal to the SIZE of the problems he or she is able to help the customer solve. Added value

is not always related to products; many times it has to do with the salesperson’s ability to help the customer accomplish one or more of the following:• Make more money• Solve annoying problems• Become more successfulSUGGESTION: Make sure that your sales force focuses its atten-tion on more than product and price. Salesmanship involves a lot more than quoting.

Bill Lee is a business consultant, seminar leader and author. He has written two books: Gross Margin: 26 Factors Affecting Your Bottom Line and 30 Ways Man-agers Shoot Themselves in the Foot. www.BillLeeOnLine.com

HOw TO CalCulaTE ValuE-addEd

BY Bill lEE

MakE a SOMEday/MaybE lIST. In an article for CBS MoneyWatch, business journalist

Laura Vanderkam recommends using productivity expert David Allen’s concept of having a

“Someday/Maybe List” of ideas you won’t try today but might try later. Post it prominently

and let your employees add to it.

It is the sales force’s job to justify to the customer the amount of

markup or value added that the company earns over and above

the company’s cost.



http://www.BillLeeOnLine.com


http://www.chinasourcingfair.com

http://www.chinasourcingfair.com/hk/hoh

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you can see, measure and forecast over the coming year. Our litmus test for sales performance is your market share. Has your customer count increased each month, compared with the same month the previous year? Your “sales per

customer” is an important num-ber as well, but if you have a grow-ing list of happy loyal customers, sales growth won’t be far behind.

Company Morale/Retention.

When company morale is down,

you can feel it. When the typical of-

fice banter stops, that’s a major in-

dication that something is amiss. If

you are feeling disconnected from

your team, check in with your social

experts (the influencers within your

organization, not necessarily man-

agement) to learn what the mood

of the team is like. They’ll be able to

let you know if it has changed and

can help you come up with a plan

to set things right.

Public profile. Is your public

profile getting stronger and more

visible? The litmus test here will

depend on the size/nature of

your company but we suggest

you should be seeing at least

one positive mention per month.

Amp the positive stories yourself

through blogs, press releases, and

social media.

P r o d u c t i o n / O p e r a t i o n s .

Weekly reports allow you to

evaluate whether your company

is running efficiently. Weekly re-

ports reflect that management is

meeting often to work toward the

pre-determined key performance

indicators (KPIs). This litmus test

should reveal that your com-

pany’s operations are becoming

healthier and stronger. If indeed

your company is on the right

track, you’ll be climbing what I

call, The Value Pyramid.

In a nutshell, The Value Pyra-

mid, pictured here, depicts the

stages a business climbs as it ma-

tures into a self-sustaining, valuable

enterprise. What does The Value

Pyramid represent? It’s a process.

The more a business is driven by

its systems, people, and the result-

ing culture, the less it relies on the

owner for its value, and the more

valuable and saleable it becomes.

Ultimately, the litmus tests we’re

talking about here are key indica-

tors of the overall value of your

business, which has much to do

with the culture that emerges as

systems take root and your enter-

prise begins to runs on its own.

If you don’t see staff bringing

their own initiatives, ideas, and

drive to your business, you prob-

ably haven’t arrived at the top of

the Value Pyramid. But keep at it

and you’ll get there.

Mark is president and founder of

Wardell Professional Development

(www.wardell.biz), an advisory

group that helps business own-

ers plan and execute the growth

of their companies. The author of

seven business books, Mark also

writes regularly for several nation-

al business publications, including Profit Magazine, The Globe & Mail, and CGA Magazine. Email him at [email protected]

It’s that time of year again. As-sessment time! The time when you look back at the goals you set for 2012 and assess which you achieved, which you exceeded and which you have yet to con-quer. When you’re running a

business, it’s difficult to find time to assess goals on a regular basis, but nothing could be more es-sential. To get you off to the right start, here are litmus tests to help you evaluate whether your busi-ness in on the right track in five essential areas.

leadership. When it comes to your leadership team, the most incisive question to ask is this: Is your leadership leading? The best way to know if you have some true leaders running your business (alongside you) is by analyzing their ideas. Our litmus test for leadership? You should expect one great idea per month coming forward from a team member or manager.

Sales.Your goal is sales growth


is YOur BusiNEss ON THE rigHT TraCk?BC

dEMySTIFyING ONlINE SHOPPERS. PwC has

released a new report detailing the Canadian perspec-

tive on its 2013 Multi-Channel Retailing Survey. Free at

www.pwc.com/ca/multi-channelshopping.

is YOur BusiNEss ON THE rigHT TraCk?

BY Mark wardEll

You should expect one

great idea per month coming

forward from a team member

or manager.

PASSION, TALENT, WORK IN THE QUEBEC’S HARDWARE AND BUILDING SUPPLY INDUSTRY

Reconnaissance1st Gala

January 26 2013, Château Frontenac, Québec

Promoted by

Coast to coast, leaders attended the show with 400 guests

PRIZE SPONSORS

MAIN SPONSORS

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http://www.wardell.biz



http://www.pwc.com/ca/multi-channelshopping

PASSION, TALENT, WORK IN THE QUEBEC’S HARDWARE AND BUILDING SUPPLY INDUSTRY

Reconnaissance1st Gala

January 26 2013, Château Frontenac, Québec

Promoted by

Coast to coast, leaders attended the show with 400 guests

PRIZE SPONSORS

MAIN SPONSORS

PARTNERS


LESSONS FROM THE PASTBC


LESSONS FROM THE PAST


BY AIMEE FEAVER

FOR THE FUTURE

Hardware Merchandising was launched in1888 and there are still stores around that would have been on its original subscriber list. To mark our birthday, we asked some the current and past owners of those businesses to share their thoughts on how to build a business that will weather the tests of time.

p18-24 HMM JanFeb13 125th annv1a.indd 18 13-02-13 2:51 PM






BC

5 anniversary

125th

anniversary

125th

Imagine for a moment that you are standing at the front of a room filled with fresh-faced, optimistic 30-year-olds who, thanks to some stroke of good luck or entrepreneur-ial spirit, now call themselves home improve-ment retail-ers. They are in the room to hear your answer to one question: What should I do to make sure my business is still around in 125 years?

What would you tell them? ‹

Abbott & Haliburton, Port au Port,

Newfoundland, circa 1912.



To find out the answer to those two questions, we interviewed the owners of a handful of mostly family-owned operations located from Newfoundland to Ontario, all of which opened their doors at least 125 years ago. (Canada’s West—Manitoba and points be-yond—was not as well served by home improvement retail-ers. Businesses that did set up shop, such as Burrows Lumber Co. in Winnipeg, focused solely on lumber manufacturing.) The founders of these stores might well have cracked open the first issue of Hardware and Metal, the name of this magazine when John Bayne Maclean published the first issue in January 1889. They defi-nitely experienced the growth of the railways, which opened up the country. They endured more than 10 recessions of varying se-verity and The Great Depression. They served the country during two World Wars and other con-flicts. They faced the changes brought about by the Second In-dustrial Revolution, the post-war population booms, and now the technological revolution. They weathered the entry of U.S. big boxes into the Canadian market-place. And they survived all the changes in the ways Canadians shop, live, work, and buy. “How did they do it?” we asked. Here’s what we found out.

To begin with, we discov-ered that there is no silver bullet. However, there is a collection of wisdom and time-tested ap-proaches to business influenced by geography, economics, tech-nology and people, learned over generations of owners, getting up early and working late six, often seven, days a week. This collec-tion can be distilled down to 11 key business practices that lead to longevity in hardware and home improvement retailing.

1 BE wiLLiNg TO cHANgE

When infrastructure like roads and railways weaved their way into communities, it became eas-ier to buy goods closer to home. Competition specializing in cat-egories like food and clothing set up shop and prompted “hard-waremen” to adjust what they sold. It was the process of refining and retooling product offerings to carve out a niche and/or re-turning to what they knew best, which often came down to some version of hardware or lumber.

“Every generation will put their own mark on the business and that’s good. The key for us was of-fering what the community need-ed at a particular point in time,” says Bill Abbott, fifth-generation family owner of Abbott & Halibur-ton Co. Ltd., which has been serv-ing the community of Port au Port, Newfoundland since 1885.

Those same roads and new services often signified a boom time and stores would look at ex-panding what they offered. Take today’s Liesemer Home Hardware, for instance. Originally founded in 1873 in Mildmay, Ontario as Liesemer Hardware, the Liesemer family formed a partnership and began selling and repairing Ford cars, and pumping gas sometime around 1912. Soon, they became known as Liesemer and Calflesh Hardware and Garage. Twenty-two years later, the Liesemers sold the garage and car business to concentrate on hardware.

Change also came in the form of overhauling the look, layout, and size of the store with remerchan-dising and expansion projects. Up-grading forces a closer look at the product mix, offering an opportu-nity to winnow out slow movers and further refine the selection. “It sends a message to the commu-nity,” says Peter Liesemer, today’s

fourth-generation owner of the business. “It tells them ‘We’re here to stay. We’re not just hanging on.’ It creates a positive attitude.”

2 BE viSiBLE ANd PRESENT iN yOuR STORE.

Absenteeism does not equal lon-gevity. All of our interviewees quickly noted that hard work and long hours come with the terri-tory. Camille Robichaud, together with this wife, Marie-Colombe, is the fourth-generation owner of U.J. Robichaud TIM-BR MART in Meteghan Centre, Nova Scotia. His advice to his children was: “Get up early, work until late at night. Be there in the store and watch the business.”

Being present helps build em-ployee engagement and mutual respect as well. When staff sees the boss putting in the long hours, they are inclined to put in the ex-tra effort and might even be more understanding when tough deci-sions—like cutting hours during a recession—are made.

And it has an upside for cus-tomer loyalty too. Margaret Pet-tie, along with her husband John, was the fifth-generation fam-ily owner of Weichel’s Hardware (founded 1879, now known as Elmira Home Hardware) in Elmira, Ontario. As she tells it, the more your customers see you, the more confident they will feel about shopping in your store: “They need to see the owner. When they see you regularly, customers know you’re committed to the business and have a connection with you. ”

3 OPERATE AS iF yOu ARE iN A REcESSiON.

Being in the store allows owners to keep an eye on business and as Krista McBay, now the sixth-gener-ation owner of Elmira Home Hard-

BC LESSONS FROM THE PAST


1890

190

8

1929

1939

1947

1950



ware, explains, “You have to control your costs, focus on being lean, and operate like you’re in a recession. Know where you are putting your money and keep advertising. ”

There’s no doubt that when recessions hit, or big competitors move into town, retailers have to get back to basics, fine-tune what’s on offer and look at the essentials customers need. “There’s no fluff in a recession,” says McBay.

4 BE cOMPETiTivE ANd Buy RigHT.

When large department stores and big box retailers entered the Canadian retail landscape, many

independents faced the crucial decision of whether they should join a buying group. On the pro side of the decision, joining would give them access to better pricing on products and provide support in other areas.

Many discovered that the benefits of being part of a group—the marketing/advertis-ing programs, greater product se-lection, the elimination of admin costs and even being a sounding board for an owner weathering economic storms—outweighed the sting of relinquishing lone wolf status. “We tried to carry unique products and be the only

store in town that did,” says Peter Liesemer. “So, it helped being in-volved in a group since they were the ones sourcing new products all the time.”

Over the coming decades, as the competitive heat turned up, a group’s programs proved their worth: “The tools they provide are invaluable. You can’t do all of that [programs, buying, etc.] on your own and still be profitable as an independent,” says Krista McBay.

However, if a store’s not part of a group, Camille Robichaud ad-vises building relationships with suppliers and “when you buy, get the best prices.”

5 dELivER wHAT yOuR MARKET NEEdS.

Call it “staying competitive,” “watching the trends” or “carry-ing what your customers want,” it comes down to understand-ing and meeting the product and service needs of your customers (remember that part about being willing to change?).

“Know your market,” says Blair Douglas, fourth generation and former owner of N.F. Douglas & Co Ltd. (now Mary Lake Home Hardware, Caledonia, Nova Sco-tia), the family business founded in 1875. “There’s no sense in bring-

BCLESSONS FROM THE PAST


‹

1. Founded in 1879,

weichel’s Hardware in

Elmira, Ontario, is now

Elmira Home Hardware.

2. Aisle in weichel’s

Hardware. 3. Liesemer

Hardware in Mildmay,

Ontario, was founded in

1873. it is now Liesemer

Home Hardware (4).

1

3

4

2

5 anniversary

125th

anniversary

125th



ing in what customers don’t need. Be light on your feet and ready to ‘move’ with them.”

Living in the heart of south-ern Ontario’s Mennonite coun-try, John Pettie explains that the unique needs of that community played a significant part in his store’s longevity. For instance, Pettie made sure bolts could be bought by the pound. “Menno-nites are 75 percent of our busi-ness, and that kept us going when others faltered. We could count on them coming in for certain hardware items so we made sure to stock what they needed.”

For the Robichauds, delivering what the market needed meant sustaining the community’s body

and spirit in unexpected ways. With no construction projects underway in the early 1900s and, therefore few jobs to be found, Eli-sée Robichaud (second generation owner) built a flourmill to serve and employ members of the commu-nity. (The store’s website features a letter from Elisée to an unknown recipient on the importance of the flourmill to the community: “I suf-fer greatly when I think that we must leave our country in order to make enough money and sup-port our grandchildren...”). They also made the decision to build cedar coffins, which took pressure off mourning families who would have to turn to a family member or friend for the task.

6 TRAiN yOuR STAFF.

“Customers are more knowledge-able now,” comments Peter Liese-mer. “You have to stay one step ahead and make sure your staff is educated on products.”

More than a few of our inter-viewees echoed this sentiment, noting the Internet’s influence on consumer knowledge, particularly if stores were offering a new category.

Boom times brought oppor-tunity to expand into categories like appliances and electronics. While economic busts forced some categories out the door, others were eliminated simply because owners felt they were not doing it justice on the sell-

ing floor. “You have to buy well, yes, but you have to sell well too. If you can’t do it right, you’ll do more harm than good,” says Bill Abbott.

Having well-trained staff moves product and helps with customer service too. Margaret Pettie says, “Back in the day our staff helped in every department, so we had to know about all of them, not just one. We could walk a customer through every item on their list, from corner to corner in the store. It made them feel like they had our undivided at-tention and that builds loyalty.”

And if a customer’s question prompts an “I’m not sure” kind of answer, consider taking a page from Krista McBay’s book: Offer



5 anniversary

125th

anniversary

125th

2, 4 and 6. Early advertisement and

customer invoices issued by u.J.

Robichaud in Meteghan centre,

Nova Scotia. 1. Abbott & Haliburton

has been serving the community of

Port au Port, Newfoundland since

1885. 3. Today, Abbott & Haliburton

flies the TiMBER MART banner.

5. Abbott & Haliburton founder

Michael Francis Abbott.

5

6

1

2

2

34



free WiFi for your staff (custom-ers too) and let them carry smart phones while at work. “Sure, there’s an element of trust there and we expect them to be respon-sible with it,” she explains. “But we see it as an extra customer service. Our staff can help out with some-thing on the spot.”

7 PRAcTicE gREAT cuSTOMER SERvicE

In our interviews, customer ser-vice was the quickest, biggest, most common key to longevity, and it is surprising—or not—how simple the sentiments were.

The way Bill Abbott sees it, good service gives you a leg up on the competition: “Treat customers as well as you possibly can. Loyalty is everything in a small communi-ty and there’ll always be a big box flogging the lowest price.”

Good customer service was something sacred; something to be protected and improved upon at every turn, even when times were tough. The Petties are emphatic that good service was maintained in recessions in their store. They also point out it is important not to take for granted that staff knows and understands your particular brand of service. They say that the dividends paid from the investment of time, pa-tience, consistency [in training staff], and leading by example are well worth it.

8 cALL yOuR cuSTOMERS By NAME.

The creators of the ’90s hit sitcom Cheers had it right: We want to go where everybody knows our name. It creates a sense of belonging, people are immediately put at ease and it brings them back—often.

“Because we were in a small town, you got to know everyone by

their first name, so that’s how we’d greet customers when they came in,” says Bill Cutting, the former fourth-generation owner of Cut-ting Lumber Ltd. in Simcoe, On-tario, founded in 1885 (now called Pickard Home Hardware). He adds, “You have to adopt a customer-is-always-right attitude and satisfy them or they won’t come back.”

Camille Robichaud tells of the grocery store 10 kilometers away he once shopped at every Sunday because of one employee, Wayne, who knew him by name and said hello. “I tell my staff, ‘Don’t call customers a number. When they walk in the store, say hello and call them by name.’ That’s what has brought our customers back.”

Continuing the Pettie’s com-mitment to personalized service, Krista McBay says that everyone who enters the store is “com-ing into our home and should be welcomed that way.” Customers are greeted within 10 seconds of walking through the door. If the greeting includes the customer’s name, even better.

9 wHEN yOuR cuSTOMERS TALK, LiSTEN TO THEM.

How do you find out what your market needs? Talk with your customers, ask, and then listen to what they tell you. “Customers will determine the hours you’re open and the products you car-ry,” says Blair Douglas.

The tool rental program at Mary Lake Home Hardware, launched in late spring 2012, was the result of customer feedback. Allan Mansfield, the current and fifth-generation owner of the Douglas family business, explains that after “toying with the idea,” they asked their customers what they thought about it and what kinds of tools they would need. “It’s now a very successful program

for us,” he says. In fact, it’s so suc-cessful that some tools that would typically take two years to pay for themselves have earned back their worth in eight or nine months.

10 BE PART OF THE cOMMuNiTy.

“If there’s something going on, be part of it whether it’s donations, or being in events, do something,” encourages Camille Robichaud.

Being part of the community also means contributing to its well-being, and being sympathet-ic when customers fall on hard times. Common hardships of the Great Depression, for example, brought the town of Caledonia, Nova Scotia together. Blair Doug-las explains, “No one had money so they paid when they could. People remembered that when times got better. Customers are generational.”

In a similar vein, Bill Abbott recalls a particular customer who is shopping at his store to-day thanks to the kindness of his great-great uncle: “He told me that when his grandfather died years ago, the family fell on hard times. Abbott & Haliburton for-gave their debt and the family never forgot that.”

Interestingly, being part of a community can come back in unexpected ways and at unan-ticipated times. In 1976, when extensive structural damage to their store wrote off one-third of their inventory, John Pettie tells how his Mennonite customers—for whom a barn raising is part of the fabric of their culture—un-derstood the full impact of the damage and donated money. “It was almost like a barn-raising. They knew the kind of hardship it meant to get things going again.”

According to Allan Mansfield doing business in a small town affords a great opportunity to


BCLESSONS FROM THE PAST

1960

20

04

1976

1983

1997

20

12

‹



listen: “In a small town, we can communicate with our custom-ers outside of the store, just by being a member of the com-munity, like at a dart game or a baseball game for example. I get plenty of information that way.”

1 1 LOvE wHAT yOu dO

Thinking back once more to that room of fresh-faced 30-year-olds, there is one more piece of advice a number of our interviewees of-fered, sometimes as a final, parting

thought: Love what you do. Being a home improvement

retailer isn’t for the faint of heart. Who knows what chal-lenges—and opportunities—there’ll be in the years ahead. Camille Robichaud explained it to his children, Daniel and Lise (their son Marc, who was very involved in the business, passed away in early 2012 at the age of 36), this way: “No, it’s not go-ing to be lucrative. You won’t get rich overnight, but you’ll be making a good living—as good

as your neighbour—and have a few dollars left over.”

To Margaret Pettie, being an entrepreneur also means living without a pension plan’s safety net, so it helps to love what you do: “You give up a big chunk of your life when you own a store. That store IS your future, what you did while you were there will deter-mine how you live when you walk out the door for the last time.”

What if given the opportuni-ty to do it all over? Peter Liesemer is quick to answer: “I love this job.

You have to. I’d choose to do it all again.”

Aimee Feaver is a freelance writer and corporate communicator with a long history in the retail and home improvement indus-tries. She owes her love of story-telling to her Newfoundland roots and finds inspiration in volunteer-ing for Good Shepherd Ministries in Toronto, ON and planning how she’ll put more miles on her well-worn backpack. She can be reached at [email protected]



1. Flyer from weichel’s Hardware, Elmira, Ontario.

2 and 4. custom coffins were once a big business

for u.J. Robichaud, which was founded in 1867

in Meteghan centre, Nova Scotia. 3, 5 and 6. in

1903, the Robichauds opened a woodworking mill,

which remains a vital part of its operation. camille

Robichaud is shown here (5) with some of the custom

windows produced at the mill, where many of the

original tools and machines (6) are still in use.

1

2

3

4

5

6

5 anniversary

125th

anniversary

125th





Power ofOverhead Storage p28

New Products@ WRLA Show p32

Stock + Sell

NEW PRODUCTS | CATEGORY UPDATESSS

Trex Select®www.trex.com

A bAckyArd would seem

somewhat naked without a

deck. It’s one of the reasons

why 12x16-foot platforms of

pressure treated lumber have

become such a familiar staple

across the Canadian landscape.

And there are plenty of

product options that can make

the great outdoors even greater.

“More consumers are look-

ing for a nice outdoor living

area, and they are ready to in-

vest more and more so they will

have an extension of their living

rooms,” says Vince Houle, busi-

ness development manager for

SquareDecko, whose products

can be used to cover existing

decks or build new structures.

“The season is quite short in

summer, but when it’s there,

we want to enjoy it.”

For their part, hardware

retailers can choose from

a growing array of related

‹

DeckeD outDeck options are not limited to pressure treated wood

BY JoHN G. SMItH

p25-27 HMM JanFeb13 S+S_Decks.indd 25 13-02-13 2:54 PM


http://www.trex.com


building products ranging from pressure-treated lumber to ce-dar, exotic woods or composite materials. The platforms them-selves can be enhanced with rail-ings, pergolas and accent lights. Even traditional deck screws face competition from hidden fasten-ing systems like those offered by TigerClaw or Trex.

Interest in one product or the next can be fed by surprising sources. Pergolas are now “hotter than pistols,” notes Dan Griffiths,

director of North American sales for Fraserview Cedar Products in Surrey, BC. He credits media re-ports about the dangers of skin cancer, which are driving custom-ers to look for sources of shade. “Second-growth and third-growth trees are not conducive to per-golas,” he adds. “Large logs with slow-growth characteristics, spe-cifically tight grains, are the de-sired products.”

Even as new building materi-als emerge, he suggests that most

are looking to imitate the look of cedar, whether it is through a stain or a man-made texture. “But they can never exude the warmth and beauty.”

The related prices may be a challenge for some buyers. Cedar supplies on the west coast were restricted in late 2012, and he expects that to continue during the first half of 2013. “Buying is feverish and prices have gone up 15 to 20 percent,” he said during an interview in early January. “The

U.S. economy is getting dramati-cally better by the day, so there is increasing demand. [But] there has also been less-appropriate, or fewer appropriate trees, coming out of the mountains.”

A dramatic increase in the demand for coastal western hem-lock is partly to blame, as export markets look for alternatives to beetle-infected spruce supplies. Hemlock’s price per board foot has more than doubled in recent years, and that is attracting a

DeckeD OutSS

Decko™Stonewww.squaredecko.ca



http://www.squaredecko.ca


larger share of the resources that would otherwise be used to bring cedar to market.

Of course, cedar is not the only option. Popular exotic spe-cies include everything from ipe to jatoba. But consumers who have warmed to these woods may be surprised by price increases of their own. These increases could lead more buyers to composite building systems.

It’s one of the reasons that Trex recently added a lighter Tiki

Torch color to a pair of tropical colors that were already in the Transcend collection’s catalogue of deck systems, says Adam Zam-banini, vice-president of market-ing at Trex, whose composite deck systems are 95% recycled wood, sawdust and plastics.

And today’s projects hardly end with the deck’s surface. Prod-ucts like Trex’s RainEscape drain-age system will transform a sus-pended deck into a roof for the space below.

The space around a deck is just as important. New aluminum railings in the form of Trex Reveal come in long spans that offer clear sightlines, and they can connect to 2x2 aluminum posts or com-posite post sleeves.

Interest in integrated lighting continues to grow with the pan-els and post lights that use LEDs, Zambanini adds. “They’re creating a masterpiece, and lighting is the final touch.”

Maintenance-free building systems will be particularly attrac-tive to those who are already out-fitting their projects with features like a $6,000 outdoor kitchen, says SquareDecko’s Houle.

His company’s products are based on a fibreglass-reinforced polypropylene. Decko Tile can be used to cover a structurally sound but tired-looking deck. Moisture circulates underneath, helping to protect the structure below. The material itself will be familiar to those who have been exposed to the edges of a back-yard pool, and he says it is more dimensionally stable than other options. Decko Step can also offer a protective covering for steps, and it is available in 32-, 36- and 48-inch lengths, or in special orders up to eight feet long.

The company’ newest prod-uct line can be used to create the entire structure. Decko Stone is a 20x16-inch structural tile for

home builders and designers, and can be installed much more quickly than a pressure-treated product. In one trial, a pair of trained installers built a 12x12-foot deck in 15 minutes.

Given the growing list of op-tions, retailers may enjoy some extra support in the showroom. SquareDecko, for example, offers a QR Code and toll-free line that customers can use to access prod-uct information. “There’s a lot of retail stores that are cutting staff,” Houle says. “They want a prod-uct that sells itself.” A sheet that can be used to sketch a project includes the shopping list for re-lated products on the back. That can be faxed to Square Decko for an estimate.

Trex, meanwhile, has intro-duced an iPad app that customers can use to visualize products from decking boards to fascia. More apps will be coming later in 2013. “It’s really hard for a consumer to understand railings. We have 1,203 design options,” Zambanini says, referring to the emerging software to highlight deck materi-als, railings, trim and lighting.

Retailers and building centres should also think about educat-ing installers about ways to take advantage of shorter lumber lengths, Griffiths adds. “Histori-cally, manufacturers had tremen-dous pressure on their 12-, 16- and 20-foot inventories. Since the advent of box stores, it’s proven that people can make decks with shorter lengths.

“If contractors could learn to ... be more imaginative in their deck patterns, they could make use of 10-foot and 14-foot [lengths] or dog legs, and save tremendous amounts of money,” he says.

John G. Smith is the president of WordSmith Media Inc. in Ajax, Ontario. Follow him on Twitter at @wordsmithmedia.

DeckeD Out SS“More

consumers are looking for a nice outdoor living area, and they are ready to invest more

and more so they will have an extension of their living

rooms.” ~ Vince Houle,

SquareDecko



https://twitter.com/@wordsmithmedia

| 28 | www.hardwaremerchandising.com | January/February 2013 |

Back in the ‘70s and ‘80s every building centre had a back stock-room and many had several. There just wasn’t room on the sales floor for the growing vari-ety of products being developed for the DIY market. There were stores that had a complete rep-lica of their showroom either in a upper level mezzanine or in a

basement. Whatever didn’t fit on the shelf went to back stock.

There were many problems with this system, including:• A lot of out-of-stocks in the showroom because staff didn’t have the time or inclination to dig product out of back stock.• Service negatively affected be-cause sales staff was constantly off

the sales floor looking for product in back stock while customers waited.• Inventory got out of whack be-cause purchasers didn’t take the time to check back stock and act-ed on information from sales staff that product was out-of-stock.• Inventory was difficult to control because of multiple locations for the same product. Year-end counts

were difficult and time consuming.• Merchandising sets could never be maintained because it was easier to add a peg or shelf position to accommodate incoming product than to run the extra items down to the basement. The constant shuf-fling of products meant SKUs disap-peared without anyone noticing.

The box stores had a better

The Power of overhead STorageSS

The Power of overhead STorage

BY ROB WILBRINK

p28-29 HMM JanFeb13 S+S_Wilbrink.indd 28 13-02-13 2:31 PM


| January/February 2013 | www.hardwaremerchandising.com | 29 |

idea. They put all the stock onto the sales floor. They used the “free” real estate above the eight-foot level to store all their over-stock. This allowed them to buy more efficiently, reduce handling costs, keep the shelves full and perfect, and maintain their mer-chandising sets to maximize sales.

The early versions of the box

store featured 16-foot racking throughout the sales floor. Sales levels at these first stores (think Aikenhead’s) justified the massive amounts of inventory needed to fill these racks. As their numbers swelled, these stores started to cannibalize each other and inven-tory levels had to drop to main-tain turns. New stores were built with 12-foot racking.

Ten years ago when we started working with independent dealers to design their stores the most common refrain was, “We don’t want to look like a box store.” At the same time they could under-stand the operational benefits of overhead storage.

The first few stores we reno-vated went with 10-foot high racks. We merchandised to eight feet and then had two feet of stor-age. While the system worked reasonably well, the top foot of merchandising was unnecessary because customers couldn’t reach it. Accessing the overstock re-quired rolling ladders which were cumbersome in stores with four-foot wide aisles. We reduced the racking to seven feet plus two feet of overhead storage on interior

runs and this worked beautifully. It’s a comfortable height for cus-tomers and it’s easy for staff to access the overstock. Some stores were able to convert back stock rooms to sales floor by removing walls. Others tore out mezzanines creating an open feel that made the store seem much larger.

Surveys consistently tell us that the number one reason con-sumers select a store is that it has what they need. Effectively using overhead storage is the simplest way to ensure that you have what your customers need and improve their perception and experience in your store.

Stores that have adopted the system love it. Renovated stores look great months and years after they are complete. Everything is in its place, no boxes on the floor and shelves are full. Dealers re-port higher staff morale, positive customer feedback, higher sales and higher margins. Who’d have thought such a simple concept could have so much power?

Rob Wilbrink is president of Bur-lington Merchandising & Fixtures (www.bmfonline.com).

The Power of overhead STorage SSThe box

stores had a better idea….

They used the “free” real estate above

the eight-foot level to store

all their overstock.~ rob wilbrink

Nine-foot racking

comprised of seven feet

of merchandising and

two feet of overhead

storage has proven to be

the height that works best

for staff and customers.

p28-29 HMM JanFeb13 S+S_Wilbrink.indd 29 13-02-13 2:31 PM


http://www.bmfonline.com


Dektite’s new Shingle

Roof Retrofit is approved

for use with USA/Ca-

nadian galvanized pipe

application. It can slide

down the pipe without

cutting, or be cut along

the zipper and fastened

with supplied clips.

www.menzies-metal.com

BEST NEW PRODUCT | ImPORTED

@WRLA 2013 PRAIRIE ShOWCASESS new products

Shercom’s new Signature Series Brick rubber pavers feature a

random brick pattern and can be easily installed over sand, wood,

concrete or asphalt. Made from recycled rubber, they are available

in red, black, brown and grey. www.shercomindustries.com

Azek Pavers are made with up to 95% post-consumer

recycled rubber and various plastics. The 4” x 8” pavers sit

in a 16” x 16” grid. Available in five colours, they are stain,

impact and scratch resistant. www.mcleanlumber.com

BEST NEW PRODUCT | ImPORTED

BEST NEW PRODUCT | CANADIAN

Fast 2K™ Fence Post

Backfill by Chemque, Inc.

is a high strength

alternative to concrete.

Ideal for all posts, a

three-pound bag of Fast

2K replaces 100 pounds of

cement. Mixes in seconds;

sets posts in minutes.

www.Fast2K.com

BEST NEW PRODUCT | CANADIAN

2013 PRAIRIE

ShOWCASE CRYSTAL AWARDS

p30-36 HMM JanFeb13 S+S_StuffWeLike1.indd 30 13-02-13 3:49 PM

http://www.Fast2K.com


http://www.menzies-metal.com

http://www.shercomindustries.com

http://www.mcleanlumber.com


WRLA 2013 PRAIRIE ShOWCASE

All Weather Window’s new

V-weld technology eliminates

the need for box-to-box

construction with mechanical

mullions and virtually stops

air and water leaks from

combination windows.

www.allweatherwindows.com

SSnew products

New from RCR International,

the 100% recyclable polypro-

pylene Dune mat is reversible,

UV-treated to resist fading, tear-

and mildew-resistant, and easily

cleaned with mild detergent.

The 5’ x 8’ mats are offered

in a variety of designs.

www.rcrint.com

Regal Ideas’ new

LED lighting system

adds lighting and

ambience to the

entire perimeter of

a railing and deck.

Operated by remote

control, the system

offers colour and

brightness choices.

www.regalideas.com

New from Bélanger:

Plumb Pak, a popular

plumbing brand in the

U.S., has been adapted

and revamped for the

Canadian market as a

carded program. More

than 475 products

in seven categories

are available.

www.plumbpak.ca

Montolit’s MasterPiuma line

of professional tile cutters can

cut porcelain, ceramic and glass

mosaic tiles up to 61”. Eliminat-

ing the need for wet saws, the

cutters automatically adjust

for tile thickness and have an

adjustable tension handle to

“dial in” tile splitting force.

www.montolit.com

Aspect matted peel and stick backsplash

is shown here in the Squares style with a

champagne finish. Also available in a stain-

less steel finish. The collection features

three styles: Squares, mini-subway and

honeycomb. www.aspectideas.com



http://www.allweatherwindows.com

http://www.rcrint.com

http://www.regalideas.com

http://www.plumbpak.ca

http://www.montolit.com

http://www.aspectideas.com

SnappedEVENTScHIs welcome receptIon & casIno nIgHtlBmao annual dInner

WhENnovemBer 27 & 28, 2012

WhEREHIlton toronto aIrport Hotel & suItes





SnappedEVENT

wrla praIrIe sHowcase 2013

WhENJanuarY 23-25, 2013

WhEREsasKatoon, sasKatcHewan




Good News.(The Mayans Were Wrong)

another chance to be a part of:

Canada’s largest home improvement centre.Over 400 showrooms all under one roof.

Phase One Sold. Phase Two Sold. Final Phase Now Selling.416.417.7507 w w w.improvecanada.com

Don’t let this opportunity slip away,you never know when the next apocalypse will happen.

SnappedEVENT1st gala reconnaIssance aQmat

WhENJanuarY 26, 2013

WhEREcHâteau Frontenac, QueBec cItY, QueBec



Good News.(The Mayans Were Wrong)

another chance to be a part of:

Canada’s largest home improvement centre.Over 400 showrooms all under one roof.

Phase One Sold. Phase Two Sold. Final Phase Now Selling.416.417.7507 w w w.improvecanada.com

Don’t let this opportunity slip away,you never know when the next apocalypse will happen.


http://www.improvecanada.com


http://www.autostak.com


Hardware Merchandising Jaunuary/February 2013

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