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

House-Hasson Hardware Adds 2,500 Items to Paint Supplies Inventory

House-Hasson Wholesale Hardware announced that it has added 2,500 new items to its paint sundries inventory, according to a press release. This addition will enable hardware dealers to create complete paint stores within their hardware stores.

House-Hasson President Don Hasson said an example of the store-within-a-store concept will be set up at the company’s upcoming dealer market, scheduled Sept. 29 – Oct. 1 at the Wilderness Resort in Pigeon Forge, Tenn.

“We’ll construct a small model paint store at the market to show dealers what they can do with these new items,” Hasson said. “A hardware store can sell anything a paint store can sell. Whatever makes it more convenient for customers to shop with our dealers makes our dealers a stronger destination for customers.”

Lines Added or expanded:

• Cabot Stains
• Old Masters 
• Gray Seal
• Valspar
• PPG. 
• Wooster Brush
• Purdy
• Hyde Tools
• Minwax
• Tyvek

BRANCHING OUT Jarvis Hardware Gives Community a New Store to Support

When Johnny and Candi Graves decided to take the plunge and open a second store, they were placing their faith in House Hasson Wholesale Hardware as much as in themselves. It was their House Hasson Wholesale Hardware sales rep, Gary Keck, who had told them about the opportunity and convinced them it was a risk worth taking.
So the Graves went ahead and opened Jarvis Hardware in Montgomery, W. Va., this past November. The town that had once been home to three hardware stores was in need of an entrepreneur willing to take another chance, since all three stores had come and gone. “We just felt the area needed a hardware store,” Johnny says.
A few years ago when Candi’s father was ready to retire after 27 years of operating Jarvis Hardware in nearby Gauley Bridge, W. Va., Johnny and Candi had agreed to take over the business. But Johnny had kept his factory job to make sure they kept a steady income. The new store meant he could quit his factory job and devote his full attention to making their hardware business a success.
Although a hardware store had gone out of business in the Montgomery location, Keck found the building was available for a reasonable rent and thought it would make a good opportunity for the Graves to expand to a second location, since it was just 10 miles from their other store in Gauley Bridge. “I felt strongly that Johnny and Candi could make it work,” he says.
So far, so good, as they see new customers come into the store every day. “We have been very pleased with the response we’ve gotten so far. It’s been well-received by customers,” says Johnny, who adds that they even had customers coming in before they were officially open, so they knew they were meeting a need.
House Hasson Wholesale Hardware helped them plan the assortment and did the complete store set, a process that went very smoothly, according to the Graves. “Gary has been a big help. He’s always taken care of our needs,” Johnny adds.
They continue to tweak their product selection a little as they see what products customers are seeking. Plumbing and electrical have emerged as the top-selling categories. “We hope paint can be a draw, since we put in a full line of Gray Seal paint,” says Candi.
For now, they are only using one half of the building covering about 2,000 square feet of salesfloor space plus a small warehouse. “We hope to grow into the other side eventually, but right now we’re out of room,” says Johnny, who would like the additional space to expand into pool chemicals and lumber.
Sporting goods and bait are big sellers at Gauley Bridge, and there is an expectation those categories can develop into strong traffic-building niches at the new store. A convenience assortment of hunting and fishing equipment is currently in the inventory.
The Gauley Bridge store has a 7,000-square-foot salesfloor. The Graves have been able to maintain sales in that store despite the down economy, so they take that as a positive sign for business out of the Montgomery store.
The new location is on a heavily traveled road, so that’s another plus.”We’re getting ready to do some advertising to let more customers know we’re here,” says Candi, who spends most of her time at the Gauley Bridge location.
House Hasson Wholesale Hardware has also helped them with pricing, and they have heard lot of good comments about how reasonable their prices are. “The nearest big boxes are 30 miles away, although the high price of gas means customers are less likely to get in their car and drive to buy what they need if they can get it from us,” Johnny says
They enjoy going to the markets, finding them a beneficial way to improve their business from attending the seminars, interacting with other dealers and taking advantage of bargains.
“We also like using the CD Toolbox. It’s very easy to use,” Johnny says.
Looking back at all the hard work it took to get the store open, the Graves say they are glad they found a reliable partner in House Hasson Wholesale Hardware. “Beverly Perry and everyone in customer service have been great. You can call up and they always take care of any problem you have,” Johnny says. It’s easy to do business with House Hasson Wholesale Hardware.”

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

http://www.househasson.com

The Hardware Ladies Crescent Springs Hardware Finds Success is All in the Family With House Hasson Wholesale Hardware

If you’ve been to a House Hasson Wholesale Hardware Dealer Market, then you probably know about the four hardware ladies who dress in matching costumes. “We like to have fun at the markets,” explains Liz Hall, who is the one who comes up with the last-minute ideas for costumes that relate to the market theme. Whether they are all decked out in baseball uniforms or cowboy hats, they are hard to miss.

            Hall is one of three generations of family members who work at Crescent Springs Hardware in Crescent Springs, Ky., a business that was started by her grandparents in 1972.

Rose Wilson is the matriarch of the business that she operated with her husband, Bill, until he passed away in 2004.

            Wilson has kept the store going with a lot of help from four kids and three grandkids who are active in the business. She handles receivables but is also a fixture on the salesfloor, taking time to chat with long-time customers. Her sons Mark and Michael (known as Bubba) work in a related operation that sells and repairs commercial mowers in a separate building that shares a parking lot with the hardware store. Daughter Cathy Croley handles screen and lamp repair, while daughter Pam Holstein oversees the sales and service of residential outdoor power equipment and the daily paperwork. Hall can generally be found helping customers in the lawn and garden department or checking in outdoor power equipment.

            The main salesfloor is handled by Wilson, Croley, Holstein, Hall and a female employee, which means customers are most likely to be waited on by a woman. “Some of our customers are impressed that five women work upfront. As women we aren’t afraid to get our hands dirty,” Hall says.

            Adds Croley, “It’s not a big deal that the store is run almost entirely by women. A lot of guys come in and say you gals really know your stuff. We still have the occasional guy come in and ask for a man to help them.”

            They all know how to provide expert service, which is why the store has so many loyal customers who are willing to pay a premium for that personal touch. “It’s very seldom that we don’t have what the customer wants,” Wilson says. “And we don’t get a lot of customers who say ‘I can get this somewhere else for less.’”

            By the same token, they maintain loyalty to House Hasson Wholesale Hardware because of the great service they get from the wholesaler. “Our salesman, Ray Langdon, is the best. He’s very dedicated,” Wilson says. “He helps us put away our order and even waits on customers. House Hasson Wholesale Hardware takes care of everything.”

            Adds Croley, “We deal a lot with House Hasson Wholesale Hardware’s customer service department. They’re awesome. It seems like we call them every day for something.”

            Croley notes that they have developed a unique niche selling, installing and repairing snowplows and salt spreaders. “It’s opened up another world for us. We don’t have to worry about competing with the big boxes on it and it gives us a way to keep our employees busy in the winter,” she says.

            On the retail side, outdoor power equipment is a huge business for them, both for sales and repair work. “Right now we have about 300 mowers that need to be repaired, but that’s actually low for us,” says Holstein, who adds that customers seem more inclined to fix their mowers these days than buy a new one.

            Holstein spent 18 years in a management role with a big company, but when they wanted her to transfer to California, she decided to return to the family business. That was 13 years ago. “I wanted to see family members, so that’s why I returned. We all get along so well,” she says.

            She put her organizational skills to work in the outdoor power equipment department, assigning people to the right roles and making sure there was a proper paper trail to keep track of jobs. Everything runs smoothly now.

            “We all have our niches in the business,” Croley points out. “This is all I’ve known since I was 13 and I consider myself lucky. I get to see my family members every day and we have a lot of fun working together.”      

            Hall started out doing warranties on power equipment and has been there 11 years. “I wouldn’t trade it for anything. I just fell in love with the business,” she says, pointing out that for awhile her great-grandmother was involved as the fourth generation of the family.

             Greeting every customer that comes in is what separates Crescent Springs Hardware from other retailers, according to Hall. “Customers come back time after time. To them, it’s priceless to be able to get in and out quickly,” she says.

Holstein is especially proud that they have never had to lay off people, even as the economy slowed down. “Taking care of our employees is important to us. We have a unique business and are very proud of what we’ve been able to accomplish with it,” she says.

            With a Dealer Market coming up soon, you can be sure the ladies of Crescent Springs Hardware will be coming up with something special. “The markets are so important. We know we need to be smart with our buying to stay competitive and you learn so much,” says Croley. “Plus we have so much fun.”

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