One-Stop Shop for Discounts Big John’s Closeouts Emphasizes Trust with Customers

Mike Barnett has learned a few things about hardware retailing through the years, and the most important lesson is displayed prominently in a big sign outside his front entrance. The owner of Big John’s Closeouts makes sure customers at his new store in Mountain City, Tenn., know they are entering a business that will treat them fairly.

“We mention the purpose of the business on our sign outside. I want to give customers a place to shop with honesty and integrity,” he says. “It’s important to me to operate a business where customers feel good about coming through our door. We’re happy to help them.” To further reinforce the faith-based values that he follows, Barnett has posted a plaque near the service counter that lists the 10 Commandments from the Bible.

Customers seem to be receptive to Barnett’s message of trust, as the store is already doing brisk business despite being open less than two months. Each customer who walks in receives personalized attention, whether they are looking for a particular type of door or new flooring for their kitchen.

Big John’s sells everything you would expect to find in a home center from flooring, sinks and kitchen cabinets to doors, windows and siding. But it also sells all the core hardware categories such as paint, tools, electrical and plumbing, with additional products available via special order.

Barnett has discovered that even discount shoppers want to shop in an organized fashion, so Big John’s is not a mish-mash of bargains scattered around the floor like they were just loaded off the truck. It is set up like a traditional hardware store, with aisles, fixtures and well-merchandised endcaps.                            

            

“Mike really wanted to have a neat and clean store, so we helped him plan out how to present all the different categories,” explains Charlie Hunigan, his House Hasson Wholesale Hardware Distributor’sterritory manager. A full selection of Valspar paint is merchandised near the front, which helps demonstrate to female customers that the store can meet their needs.

           

“We had looked at Mountain City in the past but the timing wasn’t right,” says Barnett, who was apprehensive about opening a second store due to the economy. “But we negotiated a good lease agreement and our vendors really worked with us.”

            

Having a good supplier in House Hasson Wholesale Hardware Distributor also helped. “They have good products and good prices, and we’re very happy with them,” he says. “Charlie does a great job taking care of us, particularly on returns.”

            

Barnett also owns a Big John’s Closeouts store in Elizabethton, Tenn., that opened in 1997 and used to be part of a chain of Big John’s stores operated by Paty Lumber Co. When Paty sold the company to Pelican Building Center they closed all the Big John’s outlets except the one in Elizabethton. Barnett and Jerry Bowers were long-time employees of that store, and in 2001 they bought the business. Barnett later became the sole owner, but Bowers remains as his operations manager and also works closely with House Hasson Wholesale Hardware Distributor’s buyers and vendors to handle the important role of purchasing. After all, closeout inventory takes a little more legwork to secure than just reordering from the warehouse.

            

The rising price of gas makes customers shop closer to home, according to Barnett, who has the added advantage of being able to tout that his prices are below wholesale. He pays close attention to the big boxes’ pricing, because he cannot afford to be viewed as high-priced with his closeout format. “If we’re out of line with our prices, then we hear about it from our customers,” he says.

A special room near the front contains true closeouts—items marked to be moved at discounts up to 50 percent—and a bargain bin displays tools at rock-bottom prices. With merchandising and signage reinforcing the value message, it combines to send a strong inducement to budget-conscious shoppers who are looking to save a buck. Big John’s also promotes daily specials on its web sites, along with sample pricing galleries for categories such as roofing, siding, cabinetry, lighting and flooring.

About 70 percent of Big John’s inventory is overstocked or liquidated merchandise and the rest is blemished or transportation-damaged items. Barnett allows returns or provides store credit only on unblemished goods. He brought in some of his best-selling items from Elizabethton and stocks more electrical and specialty lumber in Mountain City. “We’re still building up our inventory,” he points out.

House Hasson Wholesale Hardware Distributor helped Big John’s hold a grand opening on April 23, with customers expressing appreciation that they now have a low-price, one-stop shop for home improvement products. The store’s location on a heavily traveled road means most people are aware it is there.

Additional exposure comes from word-of-mouth from vendors, who are delighted to have an outlet for their overstock merchandise.

Barnett has started dabbling in social media, but for now he’s focusing on keeping the website updated regularly. There are deals available, and he wants to make sure his customers look him up first. “We’re grateful for the response so far, and we look forward to serving the community for years to come,” he says.


House Hasson Wholesale Hardware