Shaw Building Supply-Re-Generation

Shaw Building Supply Boosts Sales by Expanding Hardware Offerings

On Mt. Olive Road, about 12 miles north of Birmingham, Ala., Willard Shaw stood eyeing his pocket watch and counting the passing cars. Every minute, about six cars would roll down the road. Good enough, Willard thought. With that kind of traffic, he believed it would be a good place to open a building supply store, and the grand opening was November 16, 1974. Since then, Shaw Building Supply has become a multi-million dollar, multi-generational family business.
Willard Shaw passed away in 1991, yet his family business legacy continues. Just about every member of the Shaw family is involved in the business, including Willard’s wife, Evelyn, son Herbert (who recently retired), son Jerry and his wife Cathey McCluskey Shaw, daughter Tracy Shaw, and daughter Nelda Butler and her husband Jim Butler.
The next generation of the Shaw family has also started working at the company and it includes Jerry and Cathey’s daughter Catherine Price and her husband Robert Price, and Nelda and Jim’s daughter, Caroline Cummings.
And just as the family grew, so did the company. For decades, the company enjoyed steadily increasing revenues, topping $12 million in 2006. Then came the economic downturn. Like so many other retailers across the country, Shaw Building Supply was hit hard—perhaps even a bit harder because the bulk of their business relied on housing starts, which dropped to near zero in just a few months.
“Housing is a big part of our business and when the housing starts dropped off, our trucks weren’t moving,” Cathey says. “It was the first time we had to lay off anyone, ever.”
In response to the economic downturn, the store shut down a lumberyard and reduced inventory. The store also cut the number of employees. At its height, the store had 40 employees and now employs about 25. The business now needed to rely more on hardware.
When the business first opened in 1974, it offered contracting services and lumber with a minimal hardware selection. After about seven years, the store introduced its first full line, and now hardware accounts for about 40 percent of the business.
When the company’s main hardware supplier, Moore-Handley, was acquired by House-Hasson Wholesale Hardware in 2009, it led the Shaws to explore their options. To make the climate a little tougher, it was about this time that Lowe’s opened a store about eight miles south.
“When Lowe’s first opened, a lot of our walk-in business disappeared,” says Jerry, who adds that the family quickly realized that their new distributor would need expertise on competing with the big boxes.
After evaluating several wholesaler suppliers, the Shaw family decided the House-Hasson Wholesale Hardware program fit their needs the best. Adds Jerry, “And when we looked at the final line, House-Hasson had better prices.”
House-Hasson Wholesale Hardware believed the store could benefit from a resetting, a rejuvenated advertising campaign and an evaluation of in-store pricing. “It took a while for us to decide how to proceed with House-Hasson and they were very patient and came up with solutions that worked for us,” Jerry says.
During the course of three months this past summer, House-Hasson Wholesale Hardware helped the Shaws redesign the store, beef up the assortment, add new merchandise and adjust pricing.
“House-Hasson really helped us with our displays and restocking,” Cathey says “We just had a bare minimum. Because we didn’t have that much on our shelves, word got out that we were going out of business. That obviously wasn’t the case, but it’s about perception. We weren’t providing the right perception.”
The Shaws appreciated how House-Hasson Wholesale Hardware was able to tailor the remerchandising to the needs of the business. “House-Hasson worked with us and used shelves we had,” Cathey says. “We couldn’t have done the reset if they didn’t work with us. They really bent over backward to help.”
Along with redesigning some endcaps, one of biggest changes in the store was creating a display wall of power tools. Previously, the tools were on shelves in the middle of aisles. “Before the reset, some customers didn’t even know we sold power tools,” admits Robert, who points out that power tool sales have tripled in the past few months.
But one of the biggest benefits to the store’s bottom line was examining the pricing structure within the store, especially compared to the new big-box competition.
“We didn’t know what items were price sensitive or impulse buys,” Jerry says. “House-Hasson helped us with perception. Lots of folks think the big-box stores are cheapest, but House-Hasson helped us show people that they’re not.”
In addition to making suggestions on what products to add to the store’s inventory such as heaters, garden accessories and herbicides, House-Hasson Wholesale Hardware helped the Shaws identify which items are price sensitive in their area. “It turns out we were high on price-sensitive items and on other, higher-margin items we were way low,” Robert says.
Insulating spray foam and ladders were a couple examples of price-sensitive items the store had priced too high. On the other end, items such as nuts, bolts and screws could be priced higher for a better return.
According to Casey Williams, the House-Hasson Wholesale Hardware territory manager for northeast Alabama, one of the goals is to continually introduce new products and help tweak displays.
“Anything where we’re changing an endcap and the look of the store will get the customer’s attention,” Williams says. “Having new items in the store means you’re keeping up with the competition. It’s important for customers to know about new products and that stores keep adding new items that will sell in their market. That will continue to increase customer traffic because they know they are a one-stop shop.”
Once prices were set right and the store was stocked with a larger assortment, it was time to give the store’s marketing a little freshening. Previously, the store would place quarter-page ads in the local paper, and often wouldn’t receive much response.
Shaw Building Supply has started using House-Hasson Wholesale Hardware’s circular program, which has already helped drive foot traffic. In addition to the circular, Williams and the House-Hasson Wholesale Hardware team helped Shaw plan a customer appreciation day for November.
In 2009, sales were $4.5 million and the following year revenue increased to about $6 million. Walk-in traffic continues to pick up, and three or four employees have to be at the front counter at all times to handle the steady foot traffic.
“They’re a great store with friendly people and hometown atmosphere,” Williams says. “The customer service they provide is through the roof.”
House-Hasson’s next dealer market is scheduled for January 5-7 at the Opryland Hotel, Nashville, Tenn.
In its 105th year of operation, House-Hasson Wholesale Hardware serves 17 states, the Caribbean basin, a

The largest independent regional hardware distributor in America. House Hasson Wholesale Hardware is a full service, exclusively wholesale, hardware distributor.

http://www.househasson.com

Jefferson Barns & Lumber-A New Look

Jefferson Barns & Lumber Completely Revamps Store

Tony Donahue knew he needed to do something to spruce up his store, but he didn’t even know where to start. He had always operated with the understanding that he knew where to find everything in his disorganized store, and it didn’t matter if his customers couldn’t find products because that’s where his helpful service came in.

Donahue, who owns Jefferson Barns & Lumber in Sumter, S.C., sees his retail business in a new light now, after some persuasive advice from House Hasson Wholesale Hardware representatives. His store recently underwent a complete remodel and remerchandising, which has dramatically improved the store’s look while making it more appealing to pro and homeowner customers.

House Hasson Wholesale Hardware handled every aspect of the reset, coming up with a detailed assortment plan that had a place for everything and everything in its place. A 5,000-square-foot salesfloor that had once been home to controlled chaos is now organized neatly by product category.

“Our store now has a constant theme throughout: We are here to better serve you, our customers. Departments are distinguished, categories are merchandised together and we are better priced than ever before,” Donahue says.

As his House Hasson Wholesale Hardware sales rep, Bill Barnette, explains, “Tony had been doing business with Monroe Hardware for over 20 years. As the demographics of Sumter changed, Jefferson Barns had to change to meet the demands of its contractors and regular customers. With several lumber, building material and hardware retailers closing, the demand grew. Tony knew he needed professional help to position his store for the anticipated growth.”

J. Aldridge had started calling on the store when he was with Monroe Hardware, and he carried over that relationship when he joined House Hasson Wholesale Hardware. “He got me converted,” Donahue explains. “Now whatever House-Hasson says, I do. They have helped turn my company around to be the best retailer in the area.”

Barnette got House Hasson Wholesale Hardware’s marketing and store planning team involved, and shortly after the store layout was finalized House Hasson Wholesale Hardware’s store set-up crew arrived. “They stayed for six weeks and did an amazing job,” Donahue says. “I’m very pleased with the work they did.”

The floors were redone and spiffed up, the three-acre yard was cleaned up and a paint room was created. “We’ve started to build up our paint business since we added Valspar paint,” Donahue points out.

Since then Barnette has been working with the retailer on gross margins, pricing levels and endcap promotions to help better market the store’s new offerings. “I get great service from Bill. He gives me lots of useful advice,” Donahue says.

The slow economy had caused several other local home improvement retailers to shut down, so Donahue took advantage and hired key salespeople such as Steve Watts. “He’s brought in big contractors and helped us triple our business.”

Helping out was the fact an army base was relocated to Sumter, which has made a big difference in the economy and housing market. “Houses are selling good. We’ve been lucky here and our business has been great,” says Donahue, who adds that sales are split evenly between hardware and LBM products.

He has been in business since the age of 19 in 1982, starting out with storage barns and then gradually expanding first into lumber and then finally hardware. As the name implies, Jefferson Barns still manufactures storage barns to specification, and the company also sells a selection of carpet, flooring and paneling. It employs 12 full-time and three part-time employees.

Donahue’s daughter, Crystal, works the salesfloor, while another daughter, Amanda Lewis, handles the bookkeeping and back-office tasks. His girlfriend, Amy Quick, also works the salesfloor, which is seeing more homeowner and contractor customers these days.

“House-Hasson’s great pricing has made a real difference. It’s boosted my margins and my walk-in trade has been better since the remodel. Customers can tell the difference,” Donahue says.

House-Hasson’s next dealer market is scheduled for January 5-7 at the Opryland Hotel, Nashville, Tenn.

In its 105th year of operation, House-Hasson Wholesale Hardware serves 17 states, the Caribbean basin, and several other foreign countries. The company is approaching $200 million in annual sales.

http://www.facebook.com/househasson

http://www.househasson.com

Bailey's Carpet & Hardware-Rising From the Ashes

Bailey’s Hardware Rebuilds After Fire Destroys Business

The bitter cold and gusty winds made it a December night like many before, but Jeff and Carolyn Bailey would remember the night of December 15, 2010, for far different reasons. Around 2 a.m. they awoke to the sound of a fire raging out of control right next to their home…and it was their business that was being consumed by the flames.

Bailey’s Carpet and Hardware in Salyersville, Ky., was quickly engulfed in flames that were fanned by the gusty winds and if that wasn’t bad enough, the Baileys were not sure the fire could be stopped before it also destroyed their house. Firefighters were alarmed to discover 15 to 20 propane tanks sitting in front of the store, adding another level of danger.

“It just seemed like a bad dream,” Jeff says. “We couldn’t believe that this was happening to us.”

The store ended up a complete loss—nothing was salvageable—but the Baileys’ adjacent house was spared. “The firefighters said if the wind had been blowing more in the other direction the house would have been gone too,” Jeff recalls.

The Baileys’ ordeal was just beginning. As they sifted through the charred remains of their business, the reality of the situation started sinking in. “We had very little insurance, only $90,000, because the cost was so high and we hadn’t re-evaluated it in awhile,” Jeff admits.

The business had started in 1993 mainly as a carpet store, but they began gradually adding hardware after turning to House Hasson Wholesale Hardware in 1995. That would be the relationship that would offer new hope for their optimistic plans to rebuild.

“House-Hasson has been very responsive. They discussed how to rebuild the store and how to build back the inventory, and they found fixtures for us,” Jeff says. “They were extremely generous with the terms, which is the only way we could’ve gotten the business going again.”

They have always had the same territory manager, Larry Collins, and he quickly jumped into action so they could reopen as soon as possible. “Larry does a good job of taking care of us. He’s just like family,” Jeff says.

Rebuilding efforts started in February after the cleanup was finally completed. House Hasson Wholesale Hardware helped plan the new store inside and out, and one of the design goals was to make it more convenient for Bailey’s customers. For example, the front entry was designed so there are no steps into the store. The aisles are a little wider and the lighting a little brighter.

The merchandise mix was tweaked to add more core hardware products while making sure space was allocated to niche such as fireplaces and heaters, outdoor power equipment, Carhartt clothing, Georgia boots and, of course, carpeting. “We added work clothing just before the fire and we kept that so we have a nice variety for customers to keep them from driving to another town,” Jeff says.

Lawn and garden is now a big category and they also added Gray Seal paint and installed the Husqvarna timber display. “They come in to buy a weedeater and discover we sell shirts and paint too,” he points out.

House Hasson Wholesale Hardware makes sure they stock the products their customers need and they make pricing recommendations, which is helpful because Bailey’s competes against a Lowe’s 15 miles away.

The store reopened the day after Labor Day, Sept. 6, and early returns have been promising. “We still have a few holes to fill, but we’re getting there. We’re definitely carrying more hardware products, which makes us more valuable to our customers,” says Jeff, who also serves on the city council.

They were planning a grand reopening for November, which will be a chance to thank the community for their support during their time of need. “The community response has been very gratifying,” Carolyn says.

The Baileys jointly own the business with Jeff’s brother, James, who operates Bailey’s Furniture and Appliance down the street. Family takes care of family, which is why they were not surprised that House Hasson Wholesale Hardware stepped in to help them revive their business.

“House-Hasson has been absolutely wonderful. They always take care of any issue,” Jeff says. “I couldn’t ask for anything more out of a supplier.”

Bailey is a man of strong religious faith but after the fire he found himself wondering, “Lord, is that you talking to me?” He briefly questioned why such a tragedy could happen to him and his family, but soon came to the conclusion that he was blessed.

“We take our life, health and business for granted. Everything in a store is replaceable but not people’s lives. This event let me know that some things are temporary,” Jeff says. “There are so many times I’ve seen an unseen hand at work in my life, and He has never let me down. So we pray God will bless this store and we count our many blessings.”

House-Hasson’s next dealer market is scheduled for January 5-7 at the Opryland Hotel, Nashville, Tenn.

In its 105th year of operation, House-Hasson Wholesale Hardware serves 17 states, the Caribbean basin, and several other foreign countries. The company is approaching $200 million in annual sales.

http://www.househasson.com

http://www.facebook.com/househasson