Store Inventory Increase- What to carry

[Shane Copps]

I'm looking for ideas.

I am in the process of buying a Hardware/Lumber store in MT and would like some ideas on what to carry. It is a small town (about 2000 people in the county and adjoining area). It is primarily a lumber yard at this time with a small sales area with some of the usual- Paint, plumbing, electrical, tools, etc. We have an Ace Hardware locally that has a larger inventory but is higher priced. The town is very transient with most folks going home on days off (coal mining and a power plant).

What are some things that you folks see lacking in small town stores? What kind of items are you looking for on a common basis that most stores don't carry a selection of? Services?

Any and all ideas are welcome as are any questions.

Thanks
Shane

[Mark Bolton]

Its a pretty broad question that I think would be best answered by your local customers. What most people may want here may be 180 degrees from what your area is looking for. I'd start networking in your area (which Im sure you are already doing) for input. For instance in a rural setting your customers may be looking for farm supplies, fencing, staples, t posts, and so on for hardware items where in another area those items would be wasted inventory.

Tough business for sure.

[Ken Fitzgerald]

I agree with Mark that I would poll your local community to see what is needed within the community.

Businesses in that type of situation can do quite well. My wife is from a small farming community of Fairbury, IL some 30 miles from Bloomington, IL population 76,000 in the 2000 census. The town of Fairbury has a population of about 4,000 in the 2000 census. In Fairbury is a grocery store named "Dave's Supermarket". Dave has great quality groceries and good prices. There are people who live in Bloomington that drive 30 miles to shop at Dave's. I have family members who drove about 35 miles through another town to shop at Dave's. The service at Dave's is Never less than stellar. There is a key difference, however. The population density is dramatically higher.

It takes a special personality and type of courage to operate a small business. I don't have either. Good luck!

[Matt Meiser]

Maybe another option, ask what are some great local hardware stores are and take a road trip to visit those and draw your own conclusions.

Our old local hardware store, a Do-It-Best franchise(? member? ???) was awesome but now its a good 35 minute drive. Great selection of hardware, lawn and garden, paint, pet supplies, and more. Now we are by an Ace I really want to like but I've given up on it and drive right past on my way to Lowes because experience over the last several weeks has been that I'm going to Lowes anyway because Ace isn't going to have something I need. There's another Ace about the same distance but not on the way to Lowes, and the most direct route is through the bad part of town that I tried a week ago. I'll probably give them more business, at least during daylight hours. All three are similar size, I think. The Ace I don't like is crowded but I'm not sure what's taking up all that space because its sure not the stuff I need.

The other problem I have with many local stores is hours. The big guys are open evenings and the little guys don't want to be. That's severely limiting of the time I'm able to work on projects and still go there. My old DIB was open until 8. The Ace I think is decent, only 6. So when it gets close to 6, I'll still be taking my business to Lowes.

[Jim Matthews]

I would make an appointment at the plant to see what they
buy with petit cash, instead of purchase orders.

Those sort of items would be worthwhile to stock,
if it helps prevent down time.

If there's a franchise in town, already and few homeowners
your market for nuts and bolts is already quite small.

Is there a BBB or Rotary in town?

There's got to be some retired guy with ideas that nobody considered...

[Wade Lippman]

I was in the hardware business 15 years ago, and while I am sure it has changed a lot, your best source of information is probably your suppliers. They have people whose job it is to tell you what to carry. Once you get some experience you might want to improve on their suggestions, but at the moment...

[Phil Thien]

Beef jerky.

Be careful with increasing inventory. With only 2k possible customers, things can sit on shelves an awful long time.

I'm serious about the jerky. If you watch the isles at my local hardware store and Menards, contractors always grab beef jerky.

[John Coloccia]

My local hardware store rents everything from jack hammers, skid steers and log splitters, to chafing dishes for parties. They also carry some stuff that most smaller hardware stores don't carry. Welding supplies, for example. That's a nice touch, especially for the sleepy, farming community around here. Yeah, the city with Home Depot, et al, is maybe only 15 or 20 minutes away, but I came HERE because I don't want to be THERE. I'll spend an extra $1 to save the aggravation and gas.

Soda and snacks aren't a bad idea. I can't tell you how many times I've stopped into the hardware store to buy something, and then walked next door to the liquor store to buy a soda.

[Greg Peterson]

... your best source of information is probably your suppliers. They have people whose job it is to tell you what to carry. Once you get some experience you might want to improve on their suggestions, but at the moment...

+1. Your suppliers will likely have a better idea of what moves and what doesn't. They also have a vested interest in seeing you succeeding.

In our industry, aftermarket automotive parts, all our suppliers provide a means of returning a percentage of their product annually. Most of them of require an offsetting order of equal size, but at least we can return some of the slow or non-moving items and replace them with inventory that (hopefully) does move.

Work with your suppliers. And look at the movement history of the current inventory, there should be some clues there as to what is turning versus what is collecting dust.

[Jim Koepke]

The town is very transient with most folks going home on days off (coal mining and a power plant).

Not many renters/transient workers are into the usual home repair or hardware store items.

Maybe things like mouse traps and insect sprays.

One of the local retailers has the clerks asking if the customer found everything they were looking to buy. That is a good way to find what holes there may be in the inventory.

Do you have a chance to work behind the counter before you jump in with both feet?

A hardware store I used to frequent down in California had some stock on shelves in the customer area, most of the inventory was behind the counter and in the back. This allowed them to have a very diverse inventory without the worry of displaying it or things growing legs.

jtk

[Pat Barry]

Don't try to compete with Ace, that's a losing proposition. If the lumber business is good, I assume for construction, then I think focus on making that better. Sell the stuff that goes along with lumber - ie: construction oriented hardware = lag bolts, 5 lb boxes of nails, tar paper, shingles, metal roofing. Are you a source for doors, and windows? If not, maybe be a distributor - facilitate ordering and delivery. Concrete stuff - U cart rental for example

[curtis rosche]

carry cheap ammo. and have a good but cheap selection of nuts and bolts, and try to have some of the "hard to find" ones, I go to a particular local store because it has the stuff other stores consider too odd or rare to keep on the shelf

[Kent A Bathurst]

Not many renters/transient workers are into the usual home repair or hardware store items.

Maybe things like mouse traps and insect sprays.

Good point, Jim.

Maybe a one-side, half-section of an aisle with misc kitchen/household items. Can openers, a few styles of mixing bowls, baking dishes, big spoons, ladles, pancake flippers - you get the point.

My local hardware [smallest Ace in Atlanta - 1.5 blocks away] has this type of stuff, as well as a section for seasonal items - geared up for Halloween and Christmas soon to follow, wide variety of grilles in the spring + summer, along with charcoal, etc.

[Brian Elfert]

We have a local hardware store with a slogan "If we don't have it, you don't need it." or something like that. They do carry just about everything hardware wise, including really large bolts that are $25 each, but the prices are sky high! I was going to buy an abrasive blade once, but it was $15 there and $5 at Home Depot. They do sell power equipment at good prices. They are doing something right as they have built new buildings twice in 20 years and stay in business.

I'm in a large metro area so we have many Home Depot, Menards, and Lowe's stores. Hardware stores have to compete with the big guys here.

[Wade Lippman]

We have a local hardware store with a slogan "If we don't have it, you don't need it." or something like that. They do carry just about everything hardware wise, including really large bolts that are $25 each, but the prices are sky high! I was going to buy an abrasive blade once, but it was $15 there and $5 at Home Depot. They do sell power equipment at good prices. They are doing something right as they have built new buildings twice in 20 years and stay in business.

I'm in a large metro area so we have many Home Depot, Menards, and Lowe's stores. Hardware stores have to compete with the big guys here.

That works in Minneapolis. If they capture 0.5% of the market and have a huge profit margin for obscure items, then it works out well. We have a store like that also; I shop there about once every 5 years when I need something odd immediately.
The OP needs a 50% market share or he will fail (I sure hope he realizes that...) If he follows your suggestion, he will will sell nothing ever. (perhaps he needs a 80% market share; I hope not)