House-Hasson sees big increase in store sets

Store owners are negotiating very good rates per square foot, from $10 to $15 down to $3 to $5

December 19, 2012 | By Ken Clark

Knoxville, Tenn.-based distributor House-Hasson Hardware says it is seeing almost twice the level of store sets -- new or expanded stores -- in 2012, compared with the 2011 rate.
“We’ve seen 2012 emerge as one of our best years in terms of helping people become hardware store owners and dealers,” said Don Hasson, president of House-Hasson.
In 2011, House-Hasson performed 15 of what are called “store sets.” In 2012, that number will grow to more than 30. The company expects 2013 to be even more active, according to Dave Helfenberger, House-Hasson’s VP marketing. The square footage of new or larger stores is increasing substantially as well, according to the company.
Surprisingly, one reason is the weak economy.
“Some of the problems in the economy make it easier to open or expand a hardware or lumber business,” Helfenberger said. “Many commercial buildings have been sitting empty for a long time. It’s a buyer’s market. Properties are selling or renting at reasonable or historically low prices.
“Store owners are negotiating very good rates per square foot, from $10 to $15 down to $3 to $5. What I recommend is that they ask for six months free and six months half-price. It’s remarkable how often they get it. Most store sets have traditionally been between 3,000 sq. ft. and 5,000 sq. ft.; this year they’re more than double that because of the low prices. We’re doing two that are more than 25,000 sq. ft., and one is 137,000 sq. ft.”
House-Hasson is a 105-year-old, family owned company that serves some 2,000 dealers in 17 states and the Caribbean. The distributor’s sales are about $200 million annually.

Source: Home Channel News

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

http://www.househasson.com

Sloan Hardware -A TRADITION OF RETAIL

Sloan Family Expands to Third Store

If House-Hasson Hardware had such a thing as a Bonus Buy Breakfast back when the company started in 1906 you can bet a member of the Sloan family would have been in attendance. They have been loyal customers of the company that long.

The Sloan family is one of House-Hasson’s oldest accounts, getting its start as a general merchandiser just after the Civil War and with roots in hardware retailing that date back to 1901. Bill Sloan’s father opened a hardware store in Madisonville, Tenn., in the 1940s that is now known as Sloan Center, and Bill continues to work 60-hour weeks running that operation.

A second store in Vonore, Tenn., was purchased in 1993. Sloan’s of Vonore is a one-stop shop offering a full 6,000-square-foot hardware store in addition to grocery, fuel and convenience items. Bill’s son, T.K., oversees that store, which made its big expansion into hardware in 2004.

Although the Sloan family business has been thriving, Bill knows you can’t afford to pass up opportunities that come along. When he learned of a store available in nearby Loudon, Tenn., he decided to take the plunge and add a third location.

They took over the store, renamed Sloan’s Village Home Center, on January 1, 2012, and quickly set about making major changes. Sloan’s daughter, Whitney Grubb, who has been keeping the company’s books for about 15 years, has taken the reins as manager of the new store, working hand in hand with her father and brother to get the store running to their satisfaction.

Tellico Village is a planned retirement community in Loudon that was developed by Cooper Industries around Tellico Lake beginning in 1985. Cooper Industries felt the community needed a hardware store to serve the residents, so it opened one up about 20 years ago. Tellico Village is pretty well built out now with about 7,200 residents, so Sloan’s Village Home Center should have no problems attracting customers to a revitalized store.

“Opening up a full-service hardware store is a great opportunity in that area,” comments Don Hasson. “The Sloans are such good people, and T.K. and Whitney take after their dad with  strong values and work ethic.”  

The Sloans know hardware retailing, but they also are smart enough to know when to look outside for help. The first call is always to House Hasson Wholesale Hardware and their long-time sales rep, Art Jackson. 

 “We started talking about buying the store last November and had several meetings with Art Jackson and David Helfenberger,” Whitney explains. “House-Hasson was here with a reset crew the day we took over. The reset crew was wonderful.”

The 25,000-square-foot store includes a Bass Pro Shops and a full garden center. “We have LBM here, which we’ve never had before and the garden center is also new to us,” says Whitney, who adds that they retained all the old employees including the general manager who had been there since the store was built.

The Vonore store does a booming sporting goods business with a Bass Pro Shop, so the manager there helped them set up the Bass Pro Shop in the new store, according to Whitney. A strong assortment of fishing supplies is stocked along with live bait, which should be well-received with a lot of lake properties nearby.

The Sloans feel comfortable taking on the risk of a third store, since they know their wholesale supplier has their back. “The customer service from House-Hasson is very good. You can call up the owner of the company and talk to him or to Taylor Hasson. It’s a family business just like ours,” says Whitney. “We love our salesman, Art Jackson, who we view as part of the family.”

The family finds it beneficial to attend all the House-Hasson dealer markets. “I always enjoy attending the shows and especially enjoy going to Opryland,” Whitney says. “It’s good to see the new lines of products and talk to other dealers.”

Bill and T.K. handle the pricing for the stores, largely following House-Hasson’s lead but adjusting where necessary. Customers can’t miss the large banner signs in Sloan’s Village Home Center touting the everyday low prices. Years of experience have taught the Sloans that a successful hardware business depends on having what the customer needs at a fair price and offering outstanding customer service. “We’ve received a lot of positive comments from customers so far,” says Whitney. 

She started working in the business at age 11, working right up until she went away to college. “I later taught for four years but was always doing work for the stores,” she says. 

 That tradition of pitching in to help the business is getting passed along to the next generation. Whitney’s 12-year-old son, Will, likes to cut boxes and he helps put away merchandise, while 10-year-old daughter, Julia, likes to cashier, taking after her 15-year-old sister who has been a cashier at the Madisonville store for three years. T.K’s son, Tafton, also works at the store.

 The kids are literally immersed in the store environment on a daily basis, since Whitney homeschools Will, Julia and Russ along with her nephew Tafton  in a backroom area of the store that has been repurposed for learning activities. “We pick the curriculum and have hired a tutor to oversee everything. It’s a great way to spend quality time with the kids while still working in the store,” she says.

If the kids pay close attention, they will learn everything there is to know about hardware retailing. And then you can watch as the fifth generation of Sloans makes their mark in the industry.

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

http://www.househasson.com

Star Ag Lumber & Hardware

A Retail Star is Born
Star Ag Lumber & Hardware Carves Out a Market Niche
Many retail stores start from modest beginnings, but few can compare to the story of Star Ag Lumber & Hardware in Middlebury, Ind. Here’s how one of the owners, Lavern Yoder, describes the early days of the business: “For the first year we had no building. No one knew we existed. All we had was a tiny shed with four phone lines and a fax line, mainly doing outside sales.”
Star Ag started up two years ago after a close-knit group of friends and family members who ran building-related businesses kept running into the same problem: the area needed a good, reliable source for lumber and building materials.
Yoder, who was doing vinyl fencing work at the time, thought there was an opportunity, as did Jay Graber, who operated Michiana Equipment, which sells poultry and farm equipment and supplies. Other partners include brothers A.J. and Jake Lambright.
The new retailers encountered a number of obstacles early on. The lack of a physical location put them at a decided disadvantage, but their hands were tied. It took 1-1/2 years to get a business permit because Star Ag’s location (adjacent to Michiana Equipment) is literally in the middle of the country. “Everything was stored outside or we borrowed space from Jay,” explains Yoder, who didn’t work full time at the business until this past June.
They tried to join the lumber buying group PAL (Progressive Affiliated Lumbermen), but their membership was refused. A second buying group, ENAP, had never heard of an LBM outlet that didn’t have a physical location, and they also turned down their membership request.
Next they got a cold shoulder when they started looking into hardware suppliers. “We initially contacted Orgill, but no one followed up with us. None of the co-ops would talk to us,” Yoder says.
When Yoder placed a call to House Hasson Wholesale Hardware’s headquarters they put him in touch with regional manager Dave Baumberger. “He said we have a new guy, A.J. Hughes, starting up a new territory in Indiana. I talked to A.J. at 10 a.m. and by 2 o’clock he was at my house. We became his third customer,” he says.
Yoder enjoys lining up vendors and sourcing products. “I had just about everything sourced and House-Hasson was the last primary supplier we sourced. Connecting with them is the best thing that ever happened to us—it gave us a whole new dimension,” he says.
Hughes formerly worked for Lehman’s Hardware, which caters to Amish customers in Ohio, so he knew the type of products Star Ag needed to be selling in Middlebury, which has a large contingent of Amish and Mennonite residents.
“I knew we needed hardware and A.J. understood our needs. He spoiled us. He was very aggressive, but in a good way,” Yoder says. “We couldn’t have asked for a better rep. I had a vision for the business and I’d run ideas by him and he’d say yes or no.”
Yoder says Hughes has gone above and beyond his expectations for service. “A.J. spent the better part of two weeks here helping us set up the store and get situated. I guess he figured it was a long-term investment, because I’m sure there were other things he could’ve been doing. House-Hasson is definitely there for their customers.”
Star Ag held a grand opening September 16-17, and the store was ready…barely “We were stocking shelves the night before. We didn’t have any hardware presence until the grand opening,” says Yoder, who adds that neighbors were surprised a hardware store was open in their midst—“they had no idea what we were up to.”
The store used House Hasson Wholesale Hardware’s circular program to promote the grand opening, which was an unqualified success. “Their grand opening was phenomenal. They’re doing extremely well at the outset,” says Hughes.
A month after their official opening one finds a steady stream of customers coming into the store—a Mennonite farmer looking for an odd-sized fastener, a contractor with a list of items and even customers phoning in large orders.
The vast majority of sales are currently in lumber, but the hardware side is just getting going. They bought the Gray Seal paint display and the Wooster Brush assortment at a recent market, and the merchandise mix is still being fine-tuned.
Yoder goes with House Hasson Wholesale Hardware’s suggested retails on pricing and has adopted the Priced Right Everyday!^® program to project the right price image. Big boxes are six miles away and there’s another hardware store in downtown Middlebury, so they know they are not immune from tough competition.
“We offer quality products at a fair price,” says Yoder, who adds that they only sell #1 Southern Pine and their dimensional lumber is the highest grade. “We don’t want to be known as the ‘seconds’ yard. Our primary customer is doing post-frame or ag building. We’ve done several house packages but that’s not our primary focus,” he adds.
A short-term goal is to hire an outside sales person who calls on contractors and smaller shops who need various products. “To continue growing we’ll have to do something different. But it’s kind of fun to see where we can go with this,” says Yoder, who appreciates that the days of operating out of a shed are finally behind him.
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.

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

http://www.househasson.com

Shuman Owens Supply-Ready to Serve

Shuman Owens Hardware Store

House-Hasson’s Team Approach Wins Over Shuman-Owens

Tom Bacon has followed a very simple philosophy that has suited him well since he first entered the hardware business at the age of 16 in Pembroke, Ga.—“It’s all about hard work and taking care of customers,” he says.
That’s why it made perfect sense for Tom to turn to House-Hasson Hardware to help him open a third store in West Columbia, S.C., this past year. In House-Hasson, he found a supplier that followed the same principles of working hard and doing whatever was necessary to take care of their customers.
“House-Hasson takes care of any problem that crops up and our salesman, Bill Barnette, is very good,” Tom says. “He’s on top of everything.”
Tom and his wife, Christine oversee the main store on Shop Road in Columbia, while son Wayne manages a second location in Denmark, S.C. The third store is operated by son Mark and his wife, Stephanie.
With a 60-year track record of success, Tom Bacon has continually risen to the challenge of meeting the demands of his customers as well as the arrival of the big-box stores. “We carry a lot of hard-to-find items that the big boxes don’t have,” he says.
The new store was built from the ground up, and House-Hasson Wholesale Hardware played a key role every step of the way. As Tom was evaluating what would be the best company to partner with in his new location, the choice came down to House-Hasson Wholesale Hardware and another wholesaler. When the dust settled and all the facts were on the table, Tom chose to partner with House-Hasson Wholesale Hardware for five key reasons:
1. Representation—Time and time again, Barnette proved to be a valuable asset to the Bacon family. House-Hasson Wholesale Hardware works from a team approach and Barnette brought in House-Hasson’s marketing team to discuss the best steps for Shuman-Owens to take. Discussing everything from circulars, store design and product assortment to pricing, merchandising and fixturing, they worked as a team.
“Everyone at House- Hasson Hardware helped us to make the opening of our third location the best ever,” Tom says. “The grand opening was unbelievable. House-Hasson helped with free door prizes, manufacturer representation and demonstrations. It was the best we have ever had at Shuman-Owens.”
2. Design concept—From the beginning, House-Hasson Wholesale Hardware proved to be the better choice. They wanted Shuman-Owens to be the story teller as customers arrived. So armed with surveys, discussions and plans, House-Hasson Wholesale Hardware developed a set of blueprints that proved to be the best.
3. Product selection—House-Hasson Wholesale Hardware stated upfront that they wanted to utilize my current inventory in addition to the new inventory they recommended, Tom points out. “Their one-each stocking was a money maker for us and allowed us to restock with A-B items that would turn and minimize our investment,” he adds.
4. Advertising—“House-Hasson’s custom circular is by far the best in the industry. It allows us the flexibility to tell our story with products other than what House-Hasson stocks such as lumber, doors, shingles and countertops,” says Mark, who adds that it has proven to be an attention grabber at the new location. “Matter of fact, it has caused great concern with our competition such as Ace, Lowe’s and Home Depot, who have sent management to shop and take pictures. When they do that I believe they are concerned.”
5. Support—“No doubt about it House-Hasson is one of the best supporting companies we do business with,” Mark says. “Whether it’s promotion, product, delivery, special orders, commodities, buying or customer service, House-Hasson is a great, team-oriented company.”
The new store’s 5,500-square-foot salesfloor is kept sparkling clean with all merchandise fronted and no holes on the shelves. Stephanie says they get a lot of compliments from customers on the look of the store, so they make sure it looks as fresh as the first day they opened.
According to Mark, the family started planning for the new store about a year ago. “We just felt the area needed a hardware store and we found a great location that was near a busy intersection,” he says. House-Hasson Wholesale Hardware researched the demographics, which showed there was good market potential.
The store opened up in May and held a grand opening event on July 4^th weekend that attracted a packed crowd. They have been pleased with traffic so far, and Stephanie says they plan to start experimenting with Facebook to further promote the business.
Customers quickly discover that Shuman-Owens offers product breadth and friendly, knowledgeable service and that they will find solutions to their customers’ problems even if it may be out of the norm. That’s also meant stocking what makes sense for the trade area. “My dad would never dream of selling bird seed, but Bill suggested we add it to the inventory and we’ve sold a lot of it,” Mark points out.
Adopting House-Hasson Wholesale Hardware’s Priced Right Everyday!^® program ensures the store projects an image for having competitive prices. “Most of the time we handle pricing and merchandising, but Bill points things out to us,” says Tom, whose future plans include opening up one more store for another son, Adam.
The Bacon family has established a unique source of revenue. Taking advantage of the fact the main store is located across the street from the University of South Carolina football stadium, they use their store’s parking lot and charge fans for parking. “If it’s game day, you know where to find us,” Tom jokes.
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

Carolina Wood Products opens a new hardware store with House Hasson Wholesale Hardware

Hitting the Ground Running
Brothers Give Community a New Hardware Store

Carolina Wood Products opens a new hardware store with House Hasson Wholesale Hardware

Ron and Randy Horne really hadn’t planned on opening a hardware store, but they just couldn’t say no to a community in need.
The two brothers’ main business is Carolina Wood Products, which was founded by their father in 1969 and sells wooden pallets and crates all across the South. They also own a number of rental properties.
“The people in the community said there was nowhere to go to buy hardware and that we’re the only ones who can do it,” Ron recalls. “It was an issue for us too, because we couldn’t find the products we needed to take care of our rental properties.”
  As luck would have it, House Hasson Wholesale Hardware territory manager Ralph Price and regional manager Jay Aldridge just happened to stop by the Carolina Wood Products plant and mentioned the only hardware store in town was closing. That got the ball rolling and it was a whirlwind of activity from there, starting with an RPM study to analyze the market.
They broke ground on the 8,000-square-foot store with detached lumberyard in January and opened up this past April. They’re still trying to catch their breath from all the activity.
“House Hasson Wholesale Hardware advised us every step of the way. They provided detailed information to give to our banker, helped us find fixtures, helped with the store set-up and they gave us very good terms,” Ron says. “More than anything, they gave us a good idea of what to expect throughout the whole process.”
The store has quickly gained a following in the community, and the Horne brothers keep discovering new products they need to add to the merchandise mix. “We offer camping gear, toys, sporting goods—a wide variety to get people looking around,” Ron says.

Randy adds that offering green goods in the spring was well-received. “We want to keep catering to the ladies, because they buy plants, paint, flags and other stuff,” he says, adding that their wives offer valuable insights into what products they should be carrying to attract female shoppers.

Since they’re new to retailing, they have been forced to lean heavily on House Hasson Wholesale Hardware’s expertise. “Ralph is here every Monday morning to look after us,” Ron says. “He helps us with ordering and if we have damaged products he makes sure it’s taken care of. You couldn’t ask for more.”
A grand opening was held in the spring, using the House Hasson Wholesale Hardware circular to promote the event. House Hasson Wholesale Hardware also helped them host a Customer Appreciation Day in the fall. “We plan to consult with them soon on setting up a website so we can have Internet sales,” says Ron.
Launching a new store in a short period of time is not without its challenges, and they ran into a few speed bumps trying to get their POS system set up with 30,000 SKUs. “We worked through it and the folks at J3 offered us good support and helped us with our grand opening,” Ron says. “The nice thing about the J3 POS system is we don’t have to be here and we can still see what’s being sold.”
Adds Randy, “Our POS system tells us what’s moving so we don’t run out of mulches and plants. We pay close attention to our inventory levels.”
The brothers may be new to retailing, but they understand the important principles that drive a successful retail operation. “All our customers get greeted and asked if they need help. We make sure our service stands out,” says Randy.

They have attended all the markets since they first started talking with House Hasson Wholesale Hardware about a new store, and they find them very beneficial. “You see what a well-run organization House Hasson Wholesale Hardware is and what a large selection of products they have to offer,” Ron says. “Our sales rep helps us find products and offers advice on how much to buy. It’s a learning process.”

The nearest big box is 22 miles away, but the RPM study helped them understand the level of competition they face and how to combat that. “We accepted their guidance. We had to listen to them because we didn’t know what to do otherwise,” Ron admits. Adds Randy, “Ralph and Jay both live close by—they’re local. They have no problem taking care of any request we have.”  

Nine months into their first year of operation, Ron and Randy both say the business has exceeded their expectations, especially when the economy is taken into account. “Plumbers and electricians come in here. If the economy starts looking better we plan to expand the lumberyard and add a lot more roofing products, block and other building materials,’ Ron says.
In addition, they plan to target pro painters with the Gray Seal line of paint once they figure out the right volume pricing discounts. They’ve already started catering to industrial/manufacturing companies in the area. “We tell them we’re right here and can be their stock room,” Ron says. “We’re already selling pallets to Quikrete down the road, so we might as well sell them other products too.”