Fall 2013 Hardlines Strategies

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HARDLINES

DISTRIBUTING RETAIL PROFITABILITY

FALL 2013, VOL. 13, 2

Retailer Recommendation Leads to Partnership Between Blish-Mize and J.P. Lumber Page 10 Shining Endorsement

Also in this Issue: Your CompetitiveEdge Page4 Market Preview Page16 MaximizeYour Advertising Page26

170 YEARS OF BUILDING AMERICA

PERFORMANCE IN ACTION

COME BY AND SEE US AT BOOTH 325

THE PRESIDENT’S REPORT

We Keep Working for You T hank you for choosing Blish-Mize. We value your business. If you were to ask me what we’re doing to keep you competitive, I’d

Contents Your Competitive Edge pg. 4 Do you know how Blish-Mize cuts your costs and keeps money in your business? pg. 10 Read why the owners of J.P. Lumber in Oakland, Iowa, chose Blish-Mize. pg. 16 Don’t miss your chance for bargain buys and informative seminars at the 2013 Fall Buying Market. pg. 25 Use the Year-End Review tool to develop a selling strategy for 2014. Maximize Your Ads pg. 26 Learn how the On-Demand program can help you advertise online. pg. 32 Plan to visit these four vendors Blish-Mize is bringing to the Fall Buying Market. On the Cover: Jerry and Suzanne Pierce, J.P. Lumber in Oakland, Iowa Retailer Feature Market Preview Year-End Review A Perfect Fit

start with a list of 50 reasons of why Blish-Mize has an advantage over other distributors. You can read a few of those 50 reasons on Page 4. What have you done to keep your business competitive this year? Whether your competitors are down the street or in the next town, your customers

will always have choices of where they do business. You know that if you want to be their retailer of choice, you need to find ways to set yourself apart. Here at Blish-Mize, we follow that same strategy. For example, beginning next year, your Blish-Mize sales representative will present you with a year-end review of all of the purchases you made through Blish-Mize in 2013 compared to 2012. This review will include purchases by department, inventory usage, adjustment history and more. With this information in hand, you and your sales representative can work together to improve your profitability. In the report, you will also find a promotional calendar for 2014 as well as a review of the full range of programs and services Blish-Mize offers so you’re not missing any opportunities that could help you. We will offer the year-end review every year, and it comes at no charge to you . Its biggest value will be in how it helps you get a new perspective on your business and improve your profitability. Speaking of promotions, in this digital age, it is increasingly important to reach your customers at their computers, tablets and smartphones. It couldn’t get much easier, or less expensive, than our On-Demand advertising program. This year we made several enhancements to this program, which makes it easier to publish your circular online. You’ll want to attend the seminar at the Market to learn more about our 2014 advertising program options. I’d also like to introduce our new e-Delivery paperless service. You can now choose to receive your packing lists, invoices and month-end statements via email and/or fax. This option allows us to communicate with you quickly and efficiently, saving you time and cutting down on some of the paper stacked up around your office. Finally, more opportunities are in store for you at our Fall Buying Market. Along with all of the bargain prices from our vendors, we have an exciting lineup of seminars. In addition to the 2014 Advertising Program update, representatives from the North American Retail Hardware Association will share how you can create a more effective employee-training program. Then, on Saturday during breakfast, they’ll talk about how your brick-and-mortar store can compete in the online marketplace. Read more about our Fall Buying Market on the following pages of Strategies . Make plans to attend our Market and make this competitive advantage work for you.

Blish Connor Blish-Mize

223 S. Fifth St., Box 249 Atchison, Kansas 66002 Toll free: (800) 995-0525 (913) 367-1250

(913) 375-2505 (cell) (913) 367-0667 (fax) e-mail: blish.connor@blishmize.com

Jonathan D. Mize President and COO

Blish-Mize isamember-owner ofDistributionAmerica

Hardlines Strategies • Fall 2013 3

STORE OPERATIONS

The Blish-Mize Competitive Advantage: More Dollars to Your Bottom Line W hen Michael Chappelear left his job as a

After carefully considering a variety of regional and national distributors, Chappelear quickly realized the combination of product selection, price and service Blish-Mize offered was the best solution for his store, Chap & Sons, LLC in Fort Cobb, Okla. “We chose Blish-Mize because we wanted a supplier with a good product selection and competitive pricing,” says Chappelear. “Their customer service is also much better than anyone else we’ve done business with.” Chappelear’s choice has paid off, too. He has been able to focus on investing his money into inventory, rather than paying the fees associated with a co-op. He knows that in today’s competitive retail environment, it’s increasingly important to lower costs while improving margins. Whether you’re new to the Blish-Mize family, like Chappelear, or are a long-time customer, you don’t have to look much farther than your balance sheet to realize family, he didn’t assume that the co-op supplier he had belonged to for many years would be the best fit for his new business. He decided to look around at other options—and he’s glad he did. manager for a large home improvement store to open his own store with his

Michael Chappelear decided to buy fromBlish-Mize because of its price, product selection and service.

times of the year, those two percentage points may be the difference between a positive or negative number on the bottom line. 2. Blish-Mize doesn’t charge hidden adders or program fees. The prices you see in the Blish-Mize catalog are the prices you’ll pay; there are no hidden or additional fees tacked on to the end of your bill. Another benefit of buying from Blish-Mize is the ability to order small quantities. You can order as many or as few of an item you need, making it easier for you to manage your inventory, and while most distributors will charge you as much as a 5 percent fee for breaking a case quantity, Blish-Mize has an adder of only 30 cents per line for items ordered not in full-sell packs or case quantities. Finally, Blish-Mize knows that it isn’t just the products you buy that make your partnership with your distributor valuable; it’s your sales representative who acts as a retail consultant and comes to you with

Blish-Mize specializes in cutting your costs and keeping money where it should be: on your bottom line. Here are just a few of the ways Blish-Mize does that. 1. Blish-Mize doesn’t require investment fees or require you buy stock. Unlike membership in a co-op where you are required to buy stock, being a Blish-Mize customer means you have full control of where you spend your money. “We believe in your independence,” says Blish-Mize Vice President of Sales Doug Long. “We think you should spend money where it will do the most good: in your business.” Investing money into a regional or national co-op doesn’t always guarantee a return on the investment, either. In the past, home improvement retailers have lost large amounts of money due to co-ops that mismanaged their customers’ funds. Even if the percentage paid to a co-op in fees amounts to only a couple of percentage points of overall sales, during the leaner

4 Fall 2013 • Hardlines Strategies

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STORE OPERATIONS

of the year, it can be better to pay once a month rather than twice. So while many other distributors require payment twice a month, Blish-Mize offers once-a-month payment terms. This allows you more control over your cash flow and flexibility with other expenses. Similar terms from other distributors typically come with added fees. In many cases, distributors charge a full 1 percent for these kinds of terms. Blish-Mize knows this value-added offering can help you stay competitive and remains committed to offering this service at no cost to you. 6. Blish-Mize has a professional sales team that visits you regularly. No doubt you know that having an outside perspective on your business can be a valuable part of keeping you successful. That’s the role of the sales team at Blish- Mize. Unlike some distributors where a sales representative will show up a couple of times a year, or less, and try to push programs or products you don’t want, each member of the Blish-Mize sales team is designed to be your partner in the business, your go-to person for any questions or concerns you may have. “My sales rep Janet Elias visits my store on a regular basis,” Chappelear says. “All of the help and suggestions she offers are exactly what I need. When it comes to any concerns I have, there’s never a question or a hassle; she takes care of it right away.” Your Blish-Mize sales representative visits you on a regular basis and draws on the arsenal of tools available from Blish- Mize to help you grow your business. “The role of our team is to bring new items and ideas to our customers’ attention to help them grow sales and profits,” says Long. “Our team has the advantage of seeing a number of stores during their travels. They take those great ideas they see and pass them on to make everyone a success.” 7. Blish-Mize has a regional sales management team. In addition to your own sales representative, Blish-Mize also offers a regional sales management team. These managers help the sales team utilize the many tools from Blish-Mize, and are your

Blish-Mize Distribution Team Members use RF scanners to ensure the accuracy of every order.

4. Blish-Mize has high order fill rates. One of the most important services Blish-Mize can provide to you is getting you the products you need, when you need them. As a result, the Blish-Mize team uses a sophisticated warehouse system to monitor delivery fill-rates daily so the online catalog is always accurate. After products from vendors come into the Blish-Mize warehouse, team members get to work. Items are spot checked and marked as being received. RF scanners are used to assign locations to inventory. Team members use those same scanners to pick and pack the products, moving them down the line for palletization. Orders are triple checked by the pallet builder, using the same scanners to check the order for accuracy. If there is any discrepancy, the RF gun will send a warning. The packing process cannot continue until the issue is resolved. The result is an average 96 percent fill rate. “We usually exceed that goal, too,” says Long. “When you can order and receive a product due to our high fill rate, it is a win-win for all of us.” 5. Blish-Mize has once-a- month payment terms. Blish-Mize knows that the best place to invest your money is in your inventory. It also knows that, during the slower months

ideas for improving your operations. “Blish- Mize doesn’t add on additional fees for your sales representative,” says Long. “All of the Blish-Mize programs in aggregate result in more profit for our customers.”

3. Blish-Mize has competitive prices.

One of Chappelear’s chief concerns as he looked for a hardware supplier was finding one that could allow him to find the prices that would keep him competitive in his market while still maximizing his profit. “I found Blish-Mize had good prices, especially on those price-sensitive items,” he says. “That allows me to price those items right for my customers and still make a good margin on them.” Through its Retail Pricing System (RPS), Blish-Mize helps you establish prices based on item sensitivity and on your competitor’s prices. Each item in the Blish-Mize catalog carries a sensitivity code from 1 to 8, with 1 being the most price sensitive and 8 being a blind item. With that knowledge in hand, you have complete freedom to price items as you choose and maintain a balance between competitive prices and high margins. “You have several ways to manage your individual store prices if you choose not to use our benchmark prices,” says Long. “The result is that you are perceived to be more competitive at retail. That means more sales and profits for you.”

6 Fall 2013 • Hardlines Strategies

STORE OPERATIONS

one-stop source for developing your retail strategy. “From a simple reset of an aisle to a ground-up store set, our regional managers can lay out a store, suggest assortments and help with a myriad of other tasks to pull it all together,” says Long. 8. Blish-Mize has a dedicated customer service department with a toll-free number and direct contact support. Finally, to complete the level of support you receive as a Blish-Mize customer, a dedi- cated customer service team is just a call or click away from answering your questions. This talented team will answer any question you have about Blish-Mize products and ser- vices, and if they don’t know the answer, they will research it and call or email you back. To learn more about how Blish-Mize can increase your profits, talk to a Blish-Mize sales representative, call 800-995-0525 or email customerservice@blishmize.com.

Members of the Blish-Mize customer service team include (back, left to right) Gary Simpson, Lloyd Evans, Barry Simpson, (front, left to right) Vicki Jones, Amber Gray and Judy Black.

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RETAILER FEATURE

Shining Endorsement Retailer Recommendation Leads to Partnership Between Blish-Mize and J.P. Lumber

Thanks to the suggestion of a nearby retailer, the Pierces called Blish-Mize and discovered the company would be able to get them started in their new store quickly. Ask them today why Blish-Mize was a perfect fit for their business, and they’ll likely list reasons ranging from the value they find from biannual Blish-Mize Buying Markets to a wide selection of products from the catalog and the ease of ordering. An Unexpected Venture It all started when the Pierces decided to buy a building left vacant by a lumber- yard that went out of business in 2011. At that time, opening a hardware store and lumberyard might have been the furthest thing from Jerry’s mind. Rather, he thought the vacant building would be a more con- venient location for his business, Pierce Pump, a commercial plumbing company he has operated in Oakland, Iowa, for more than 30 years. The community, however, had a different idea of what he should do. There had been a lumberyard in that building for nearly 100 years, and it was the only O ne of the highest compliments a customer can give a business is to recommend it to another customer. That’s exactly what happened when Jerry and Suzanne Pierce began looking for a hardware distributor to supply their store in Oakland, Iowa.

lumberyard in town. Now that it had closed, they were anxious to have it back. “People kept telling us they’d really like to have a lumberyard and hardware store here again,” he says. “So that’s what we decided to do.” Jerry says he had already purchased the remaining inventory from the outgo- ing owner of the store, who belonged to a national co-op. But when he began investi- gating who could be a regular supplier for his own store, the co-op wasn’t a good fit. “I didn’t like the idea of having someone else in charge of what I was buying,” he says. “I’ve run a successful business for 30 years and I like making my own decisions.” Pierce also says the co-op wanted him to make a lot of expensive changes to the building and place a large initial inventory order, which was more inventory than he wanted to have all at once. “Basically, I felt like the co-op didn’t want to sell to me,” he says.

So, the Pierces decided to talk to their friends, Larry and Janis Fajen at Fajen Lumber in nearby Elk Horn, Iowa. Jerry was a frequent customer at Fajen Lumber, often stopping in for supplies when he was out on a job. “They recommended we talk to Blish-Mize and call their sales represen- tative, Chris Helget,” Jerry says. Off to Market After that recommendation and a few conversations with Helget, the Pierces began moving full speed ahead to open their new store, J.P. Lumber. Helget helped them form a plan for setting the sales space. Then they visited the Blish-Mize Spring Buying Market. Instead of using their first Market as a way to learn more about Blish-Mize and its vendors, the Pierces were there to buy. They used the Market to purchase their entire initial inventory. “Chris met with us at the Market and made recommendations of product lines

Sales Representative Chris Helget (back) helped Jerry and Suzanne Pierce navigate their first Blish-Mize Buying Market, where they made the initial inventory order for their new store.

10 Fall 2013 • Hardlines Strategies

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RETAILER FEATURE

The building that currently houses J.P. Lumber had been a lumberyard in the community for nearly 100 years. After a remodel, the Pierces reopened it under their own name in 2012.

able to meet customer requests quickly. One good example is how they responded to their customers’ requests for a strong paint department. The Pierces found the Pratt & Lambert line of paint from Blish-Mize was a per- fect solution for their store’s needs. They updated the store’s color matching system over an older system left by the store’s previous owner. Pratt & Lambert also provided them with an assortment that would fit their needs for a small-town cus- tomer base. “Pratt & Lambert understood the needs of our store, and our customers love the paint,” says Foutch. In addition to paint, fasteners are a strong category now that the store has a complete line of Hillman products the Pierces purchased at the Buying Market. While Jerry still spends most of his time out on the jobsite with the pump business, Suzanne, Jordan, Foutch, store manager

we should buy,” says Jerry. “We got a lot of great deals and bought a lot of the Blish- Mize RMS displays to help us get started. It was all a bit overwhelming since we’d never been to a Buying Market before.” As soon as truckloads of inventory arrived, the Pierces once again relied on the help of Blish-Mize to set the flow of cat- egories throughout the store. With the team from Blish-Mize on hand to set the store, the Pierces, along with the store’s new staff that included their son Jordan and office manager Christina Foutch, had a different challenge to face: finding a way to accommodate customers anxious to buy hardware. Even before the store was open, while workers were still finishing up the renovations and filling the gondolas with merchandise, customers were walking in the door and asking for items they needed.

“While we were still setting up the store, customers would walk in and want to buy products,” says Foutch. “Since our POS system wasn’t set up yet, we had to hand- write a lot of tickets.” New and Improved In fact, Pierce’s philosophy of running his business is centered around listening to his customers. That approach allowed him to take a different path than his predecessor, which was evident to any shopper attending the grand opening of J.P. Lumber in July of 2012. While the lumberyard previously occupying the space focused primarily on lumber, with only a small offering of build- er’s hardware in the retail space, J.P. Lumber covered all the core categories. Thanks to the wide selection of products available from Blish-Mize, the Pierces are

12 Fall 2013 • Hardlines Strategies

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RETAILER FEATURE

Tracy Stevens and several other employ- ees run the retail side of the business. The Pierces say buying from Blish- Mize gives them and the rest of the store staff confidence they can answer most any request a customer has. For items not in the store’s regular inventory, they use Blish-Mize’s online catalog to look up items and show them to customers, with the assurance they can get the product to the store within a short amount of time. In fact for any given product the Pierces research in the catalog, there are usually a couple of different choices at different price points, allowing them to meet the needs of a wide variety of customers. “We never have an issue with not being able get something,” Foutch says. “When we look up the product online, we know right away if something is available and in the Distribution Center. Blish-Mize keeps the online catalog up to date.” That’s just another reason, too, why the Pierces would recommend Blish-Mize to another retailer. “Their deliveries are always on time. The amount of products they offer is huge,” says Jerry. “We can go to the Markets and buy items on promotion, which allows us to mark them down significantly to bring people in and still make money on them. We definitely rec- ommend Blish-Mize.”

The RMS assortments the Pierces purchased at their first Blish-Mize Buying Market form the core of their product selection.

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14 Fall 2013 • Hardlines Strategies

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MARKET PREVIEW

Measure Up At the Blish-Mize Fall Buying Market, Sept. 13-14 H ow does your store measure up to the competition? If you’re in search of new products to wow your customers, assortments to keep them coming back

The Fall Market, held Sept. 13-14 at the Overland Park Convention Center in Overland Park, Kan., will give you the tools you need to outshine your competition. Vendors from across the industry will be offering innovative new products and will be on hand to answer your questions. Informative seminars will give you the industry insights critical to your success at retail. Best of all, there will be big promotions on key products and cash drawings to put extra money in your pocket. “It’s always good to step away from your store for a moment and get a fresh perspective on your business,” says Blish-Mize Vice President of Marketing Chuck Short. “We offer many ways for you to get that fresh perspective, from seminars to our Mini-Store to new vendors. Spend a little time in Overland Park at the Market, and we’ll turn that into a big value for you.” Of course, veteran attendees know the Market isn’t all work and no play. Friday evening, Blish-Mize will treat you to a dinner by the famous Jack Stack Barbecue. and insights into shoppers’ buying habits that will give you the competitive edge, then look to the Blish-Mize Fall Buying Market.

your normal items at good discounts and dating terms,” says Short. “Plan those purchases before you leave, and then you will have more time to see new products and newer ways to present both new and old products in your store.” Buying at a discounted rate should only be part of your strategy. Make sure your assortments are up to date and complete, and that you are utilizing proper merchandising techniques to draw customers through your store. If it’s been a while since you reset a particular category, use the Market to talk with vendors about how you should rework it. “Our vendors will have many opportunities for you to buy product at great pricing and terms. This will be one of the best opportunities of the year to improve your margins,” says Short.

Then, Dueling Pianos will take the stage in a music- and fun-filled evening of entertainment. “Dueling Pianos is one of my favorite entertainers. Spike Blake (one of the performers) is a riot and he gets the crowd involved from the start!” says Blish-Mize Communications Director Blish Connor. “It is sure to be a fun evening and Jack Stack Barbecue is always a hit.” Throughout the Market, you’ll also enjoy the company of retailers like yourself, giving you time to share stories and get some ideas to take back to your store. Start Planning Now If you want to make the most of your time at Market, the best strategy starts with planning your purchases now. “The Market will offer opportunities to increase your margins by replenishing

16 Fall 2013 • Hardlines Strategies

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MARKET PREVIEW

“Also, see the ideas the vendors have for improving the displays in your store. One advantage of the Market is your ability to see new methods of displaying products and properly stocking whole categories to help you create more sales in the square footage you already have.” First Stop: The Mini-Store Last year, Blish-Mize introduced the Mini- Store concept as a real-world example of best retailing practices. This area will be front and center of the Market floor. While you’ll still be able to browse through individual vendor booths, the Mini-Store area will help you see how Blish-Mize can help you put them all together to create cohesive assortments, whatever the size of your store. At the Fall Market, the Mini-Store will focus on Hand and Power Tools and Accessories, so if it’s been a while since you refreshed these categories, this is a prime opportunity to do so. With tool companies continually coming out with innovative products and adding more features to existing products, it’s important that your assortments stay current. “You should always be looking at the next generation of merchandising techniques to stay ahead in today’s market,” says Short. “The Mini-Store gives you a visual of the way you can put together different assortments and make them work for you.” all, there will be big promotions on key products and cash giveaways to put extra money in your pocket. Informative seminars will give you the industry insights critical to your success. Best of

Schedule of Events: Friday, Sept. 13, 2013 8:30 a.m. Market Opens 10-11 a.m.

Seminar: Maximize Your 2014 Advertising

12-1 p.m.

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4:30-5:30 p.m. Mini-Store Reception & Assortment Deals 5:15 p.m. Cash Coupons “That Measure Up” Drawing 5:30 p.m. Market Closes 6-9 p.m. Customer Appreciation Event Saturday, Sept. 14, 2013 7:30-8:30 a.m. Breakfast and Learn: The Amazon Effect, How Online Retailing is Changing the Home Improvement Game 8:30 a.m. Market Opens 9:30-10:30 a.m. Seminar: Training for Success in Today’s Market 10 a.m. Cash Coupons “That Measure Up” Drawing 12-1 p.m. Lunch 12:30-1:30 p.m. Assortment of Savings Buying Event 1:30-2:30 p.m. Seminar: Maximize Your 2014 Advertising 2:45 p.m. Cash Coupons “That Measure Up” Drawing 3 p.m. Market Closes

Continued on Page 22

18 Fall 2013 • Hardlines Strategies

MARKET PREVIEW

Your Educational Advantage

Don’t Miss These Seminars at the Fall Market

The more you understand about the competitive forces in the marketplace, the better equipped you will be to move your business forward. At the Fall Market, Blish-Mize will present three important seminars packed with information to help you build your competitive strategy.

seminar will walk through how to gain the competi- tive edge through product knowledge, driving both transaction sizes and customer traffic. Utilizing real-world data, this presentation will explore the need for project-based selling as a means of increasing retail sales in today’s home improvement environment. This presentation will help you understand how to get started in successful project knowledge training and some of the most valuable training tools available to you today. Jaime Koch is the managing editor of Hardware Retailing magazine and NRHA, where it is her mission to cover business issues that matter the most to independent home improvement retailers. Jaime regularly travels around the country and internationally to visit with retailers and share their stories. Currently, she is working on earning a Masters of Business Administration degree from the University of Indianapolis and hopes it will better help her serve the retail industry. Maximize Your 2014 Advertising Presenters: Chuck Short, Blish-Mize vice president of marketing; and Jody Maude, advertising and communications director for Distribution America. Friday, 10-11 a.m.; Saturday, 1:30 – 2:30 p.m. Learn how to maximize every dollar you spend on advertising by reaching as many customers as possible with your marketing message. As more and more consumers look online to research their home improvement purchases, this seminar will help you understand all the ways you can get your message in front of them so they come to you when it’s time to buy. Enhancements to the On-Demand advertising system make it affordable and easy to publish your advertising message to a wide range of both print and electronic media. You’ll learn how to set up AdBuilder and AdViewer, create a circular and publish it online.

The Amazon Effect, How Online Retailing is Changing the Home Improvement Game Presenter: Dan Tratensek, publish- er of Hardware Retailing and vice president of publishing for NRHA Saturday, Breakfast begins at

7:30 a.m., presentation begins at 7:45 a.m. sharp.

Complete with case studies from top home improvement e-retailers, consumer feedback and retailer advice, this seminar will help you better understand the online home improvement com- petition and how it is affecting the overall home improvement industry. Walk away with useful tips for competing with online retailers, deterring the consumer practice of “showrooming,” and integrat- ing online sales tactics in-store. Dan Tratensek is the publisher of Hardware Retailing magazine and the Vice President of Publishing for the North American Retail Hardware Association (NRHA). In his position as publisher of Hardware Retailing , Tratensek has the opportunity to visit with independent retailers of all types and sizes and shape the editorial direction of the magazine to meet the needs of the independent retailing market.

Training for Success in Today’s Market Presenter: Jaime Koch, managing editor of Hardware Retailing Friday 3-4 p.m.; Saturday 9:30-10:30 a.m.

As the gap for good customer service closes between the big boxes and independents, this

20 Fall 2013 • Hardlines Strategies

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MARKET PREVIEW

Continued from Page 18

Prepare Leaders for Tomorrow Learn about NRHA’s Retail Management Institute Have you considered how you will prepare the next generation of leader- ship for your store? When you consider all of the challenges facing the home improvement retailing industry today, whether it’s the changing demands of consumers or competitive pressures from big-box retailers, it becomes more and more difficult to know how best to prepare those individuals who may one day lead your business. At the Fall Market, there will be an opportunity for you to learn more about the Retail Management Certification Institute, a program devel- oped by the North American Retail Hardware Association (NRHA). The Institute is designed to help prepare future retail leaders by provid- ing them with the education they need to lead their companies into the future. Developed in conjunction with Butler University’s Graduate School of Business, the Institute consists of a six-month, college-level program for those individuals who may be the next generation of owners. Class themes will include leadership, applied business strategy, marketing, operations, finance and accounting, and application of retail technologies.

Blish-Mize also knows that one of the best ways to dominate the Hand and Power Tool categories is to offer strong, vendor-focused assortments. In fact, according to the 2013 Product Branding study by the North American Retail Hardware Association, Hand and Power Tools are some of the most brand- sensitive categories in home improvement stores today. In the survey, nearly half of all male respondents and nearly a third of female respondents described themselves as loyal to brands in Hand and Power Tools. The Fall Buying Market will help you capitalize on that brand loyalty. A portion of the Mini-Store will have Blish-Mize assortments, allowing you to mix and match brands to fit your needs. However, the store will also have vendor-specific assortments on display for you to consider. In addition to attracting purchases from brand-loyal customers, stocking a complete set of products from a vendor allows you to get the price advantage that often comes with a drop-ship order. Many of the Hand and Power Tool Vendors at the Fall Market will offer deep discounts. As it has been in past years, the Mini- Store will also offer you a firsthand look at other programs and services that can improve your retail operation, whether it’s the totally customizable and economical store signage program from Blish-Mize or a complete POS system to help you improve the efficiency of your business. New at Hardware House Before you leave the Mini-Store, check out the wide range of product categories available from Hardware House, Blish- Mize’s private label product line. At this Market, you have more options from Hardware House to make your cabinet hardware category competitive with anyone in your market. Start by seeing a new display option, which easily adapts into your current gondola. The display puts sample cabinet hardware out where customers can see and touch them. It’s easy to adjust and change as you adjust your program in future years. The cabinet program also includes a new header

To learn more about the program, as well as other employee training opportunities NRHA has to offer, visit the NRHA booth at the Fall Buying Market. Or, contact Scott Wright, vice president of member services, at 317-275-9417 or swright@nrha.org.

22 Fall 2013 • Hardlines Strategies

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MARKET PREVIEW

showing special order items. Hardware House has also added 36 new items and finishes to its cabinet hardware line, as well as contractor packs on select items. In bath items, expand your offering of decorative marble top finishes with new colors, including walnut, galaxy black, Mexican sand, sandy beach and pewter. Also, Hardware House now has a program for curved and tension shower rods. Finishes include satin nickel, chrome and classic bronze. Before you come to the Market, look at the new Hardware House catalog available online through www.hardware-house.com. The catalog has been totally revamped with new features that will make it easier for you to use. For example, symbols designating key product features, such as “Lead Free,” “ADA compliant” or “Wet Rated” are used throughout the catalog for you to easily identify items with those features.

entered into the drawing, you must place orders with the special Cash Coupons from the Market book. On Friday, an hour before the close of the Market, join Blish-Mize staff for a welcome reception in the Mini-Store area. As you’re enjoying a drink, browse all of the special buys and concepts featured in the Mini- Store. While you can buy from this area throughout the entire Market, during the reception, you’ll receive a scratch-off ticket for an even further discount on all featured assortments. Put this event on your Market schedule because the discount ticket is good only during the event. On Saturday, come to lunch prepared to save more money during the Assortment of Savings Buying Event. You’ll get to choose from more than 60 discounted vendor assortments, all designed to help you drive more sales through your store. Win additional cash spiffs with scratch-and-win cards available at the event.

The revised catalog also provides planogram layouts for every category, including ideas for how you can display products with coordinating finishes. By showing your customer how you can coordinate finishes on items such as faucets, lighting and bath accessories, you encourage a project sale and establish your store as the destination for fashion-driven purchases. Time to Save The savings you get at the Blish-Mize Fall Market are sure to measure up to your expectations. Use the money you save on both new items and regular inventory to gain a few extra margin points or offer promotions to your customers. The savings start with the Cash Coupons “That Measure Up” drawings that will happen throughout the Market. On both Friday and Saturday, at different times throughout the day, a total of 40 customers will win $250 in cash. To be

24 Fall 2013 • Hardlines Strategies Blish•Mize Ad.indd 1

6/28/13 12:46 PM

STORE PROGRAMS

Your Year in Review New Tool Helps Blish-Mize Customers Create a Plan for Profitability

W hile the

performance of your business is

“The more you know about your busi- ness, the better prepared you are to make decisions that affect your overall profit- ability,” says Blish-Mize Vice President of Marketing Chuck Short. “The purpose of this report is to give you as much informa- tion about your business as we can. We’ll then use that information to help you iden- tify opportunities for the future.” At the end of every year, starting this year, your Blish-Mize sales representative will gen- erate a report, showing all of your purchases billed through Blish-Mize for 2013, and com- pare that to the same data for 2012. Using that year-end report, your sales representa- tive will then help you identify your store’s strengths as well as those areas that offer growth opportunities for the future. Best of all, while compiling and analyz- ing this type of report manually could take hours of your time, your Blish-Mize sales representative will provide the report to you at no charge, along with a consultation about how you can use it. Blish-Mize will offer you an Annual Review report to help you identify growth opportunities for your store. likely on your mind all year long, the beginning of a new year is always a good time to review where you’ve been and decide where you’re going. That’s why this year

pricing available from Blish-Mize. “A percentage that is too low indicates you are not taking advantage of all the opportunities we offer you to either promote products to your customers or to use special pricing to make a better margin,” says Short. “I encourage you to take advantage of the discounts and promotions we offer at the Buying Markets and throughout the year. They can make a difference.” Services and Sales Your Annual Report will also include a review of Blish-Mize programs and services, along with a schedule of promotions from Blish-Mize available to you for the upcom- ing year. Creating a list of promotions for the year will help you plot your advertising calen- dar and plan your Buying Market purchases. Your sales representative will review the programs and services Blish-Mize has to offer and answer questions you may have. For more information, please email Chuck Short at Chuck.Short@blishmize.com.

Here are some of the key elements of the report and how you can use them to improve your profits in the coming year. Product Category Analysis Each Annual Report will compare pur- chases of all products billed through Blish- Mize for two years. For example, in the 2013 report, you’ll be able to see purchases for 2013 as compared to 2012. The product category analysis portion will break down purchases by product group. In addition to showing your strengths, this portion of the report will identify those categories with possibilities for growth for the coming year. Your Blish-Mize sales representative will offer suggestions, such as revised assort- ments or a new merchandising plan, for improving those areas.

Promotions to Purchases/Sales

The promotions-to-sales number, based off your total purchases, will indicate how well you are taking advantage of promotional

Hardlines Strategies • Fall 2013 25

ADVERTISING

Online and Engaged On-Demand Advertising Now Makes it Easier to Stay Connected With Your Customers V icki Meier, owner of Lincoln Building Supply in Lincoln,

Kan., knows there’s not a one-size-fits-all advertising

solution for reaching her customers. That’s

She can’t imagine doing all of that work, either, without using the On-Demand adver- tising program available through Blish-Mize. Not only does the On-Demand program allow her to create circular ads for her store in a fast, cost-effective way, the program is quick and easy to use. She can generate pro- motional materials to reach a wide range of customers in just a few simple steps. If you’re looking for a way to increase the effectiveness of your advertising campaign, then take a cue from Meier and other retail- ers like her who have taken their promo- tional efforts online. This fall, Blish-Mize rolls out new features to the On-Demand program, helping you engage customers wherever they are. Why You Should Go Digital Now more than ever, it’s important to add electronic advertising to your why, in addition to radio commercials, she markets her store through a variety of media, including circulars, newspaper ads, email, the store website, Facebook and in-store promotional signage.

With AdViewer, customers can shop for items from the circular, then add them to a list to print out and bring into the store.

marketing strategy. According to a recent survey by Pitney Bowes, 76 percent of small businesses surveyed stated their ideal marketing strategy utilizes both printed and digital communications. The more places you can put your message in front of consumers, the better opportu- nity you have to catch their attention, and the more diverse of a customer base you’re likely to attract. That is exactly what the On-Demand program does for you. “With the On-Demand program, I have many different places where I can publish the ad,” says Meier. “I create a circular ad, and I can send it automatically to my store’s website or Facebook page. Then I can take that same ad and send it in the email with the invoices and statements I send to customers.” In fact, she’s constantly looking for new ways to promote her store and get her name

out to her customers. Just as she might visit other retailers to get ideas for better merchandising or new products to sell, she’s constantly looking at the ads her favorite stores send her for promotional ideas. “I watch what other retailers do with advertising and have been adapting it for my own uses,” she says. “For example, I get a lot of emails with coupons from one of my favorite craft stores. We just tried our own online coupon and had a huge response from it.” The On-Demand system allows you to move freely between different ways of advertising, whether you’re printing circulars and postcards, or publishing an electronic version of your ad to your Facebook page. “The Blish-Mize online advertising sys- tem provides easy-to-use solutions to pro- duce professional-looking print promotions

26 Fall 2013 • Hardlines Strategies

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for traditional channels and the ability to easily repurpose those same promotions to the digital channels,” says Advertising and Communications Manager for Distribution America Jody Maude. “The key is to connect all types of advertising you’re using. Your print should connect to your website, and the website should have a place for customers to opt-in to receive emails, and your print advertis- ing should list your website and Facebook pages. They all need to link together.” If the most effective marketing strat- egy is one that includes a partnership between print and online advertising, then the On-Demand program, which uses both AdViewer and AdBuilder, from Blish-Mize is the most valuable tool for your advertising efforts. Here are some of the ways the new features make using it easier than ever. to her customers, and she includes an electronic version of her circular. AdViewer allows her to customize the ads she wants to sends in those emails. In the spring, for example, she can send a coupon for a lawn and garden item, accessible only to those customers who receive her online communications. Email advertising allows you to target specific customers with a specific message. Website AdViewer makes it easier than ever to convert the circulars you create in AdBuilder into an electronic format, and then link them on your store’s website. It’s a one-step process. If you don’t want it to show up right away, you can choose the ranges of dates as to when it will appear. AdBuilder will automatically create your ad in an electronic format that is compat- ible with viewing online. Facebook Just as easily as you can publish your ads to your website, the enhanced On-Demand Is Now Easier to Use Email Blasts Meier emails statements and invoices

10 More Ways to Advertise The way you market your store shouldn’t stop with the circulars you distribute. Here are more suggestions for getting your store’s name and brand out in your community. 1. T-Shirts. Put your logo on a t-shirt and give them away or sell at a low price. You’ll have a walking advertisement wherever it goes. 2. Bumper stickers. Put your store’s name and slogan on a bumper sticker to give away to your customers. 3. Branded items. Promotional items such as tape measures, hats, 5-gallon buckets and carpenter’s pencils are all items where you can place your store name and logo. 4. Stickers. If you offer Blish-Mize’s rental program, consider placing a bright sticker with your store’s name and logo on every rented tool or piece of equipment that goes out on the job. Do the same with other large items you sell, like water heaters. 5. DIY Video. How-to videos or creative advertisements by staff can draw traffic to your store’s website and Facebook page. Try allowing someone on your staff to take the camera and use their own creativity to create a video that’s both fun to watch and promotes your store. 6. Blogs. Consider adding a blog to your store’s website where you can answer customers’ product and project questions. This will establish you as the go-to person for product advice in your community. 7. Postcards. These are effective ways to talk about featured products or to advertise a special event. Postcards are great for mailing or dropping in shopping bags. You can easily create them with the On-Demand program from Blish-Mize. 8. Event sponsorships. Having your name on one of the big signs on the fence at a Little League ballpark or on the program of the school play lets customers know you support the community. 9. Parades. Drive your delivery truck in the local parade with your staff or the local ball team sitting on the back. 10. Donations. If you donate large items, such as a park bench to a local park, engrave your store’s name prominently on the surface.

AdViewer allows you to easily link your circulars to social networks like Facebook and Twitter. Putting your message out on these sites is important as there are some customers that might not respond well to printed media, but spend a lot of time online. Meier, for

example, noticed that, in her area, her female shoppers tend to use Facebook more than her male shoppers. When she decided to host a special event for her female customers, she did most of the advertising through Facebook, and customers flocked to her event.

28 Fall 2013 • Hardlines Strategies

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