Blog
2024Did you know, data shows that more than 50% of hardware store sales in the United States are captured by big-box chains? It’s no secret that independently-owned hardware stores face a difficult challenge.
While this article is focused specifically on hardware, building supplies, and paint stores, this challenge is certainly not unique to these types of retailers. This is a common theme across many retail verticals, as the market share struggle against the Home Depots, Lowes, Walmarts, Targets, and more continue to move into smaller communities.
But here’s the good news: even in this fiercely competitive landscape, independently-owned hardware stores can thrive.
Having close to 25 years of experience as one of the leading POS system providers in the US, we have seen things from both ends of the spectrum.
In this article, we will break down the 5 game-changing strategies that can help your independently-owned hardware store gain an edge over those big box competitors. We’ll discuss everything from building strong relationships with contractors to leveraging technology for a hiccup-free customer experience.
When it comes to the skilled trade industry, contractors rely on hardware and supply stores to keep their projects on track. By nurturing strong relationships with contractors, you can create a loyal customer base that generates a consistent stream of revenue. These contractors appreciate a store that understands their needs and goes the extra mile to get them in and out of a job quickly.
As a hardware store owner, you need to take a moment and think from a contractor’s perspective.
What are their biggest frustrations? Slower checkouts and order process, juggling multiple accounts, and confusing on-account bills.
The solution? Streamlining their experience with an innovative retail and billing system.
And what better way to address these pain points than using a modern hardware store POS solution that comes with features like dedicated contractor accounts, faster checkouts, and automated billing?
Show your contractors that you value their business and their time, which will make your hardware store their best friend.
Run surveys to get a better scope of your contractors’ needs. Tune your services and explore POS features that address them. This builds trust and strengthens your partnership.
Big box stores excel at offering fast and convenient checkout options. Where they often fall short is getting to know their customers by name and providing the service that should become your biggest differentiator.
Explore your options on how you can implement strategies in your hardware store such as self-service kiosks or mobile POS systems that come with a built-in CRM. These tools can significantly cut down the waiting time and empower your staff to assist customers anywhere on the sales floor, speeding up the checkout and offering a more convenient experience.
A modern POS system with a built-in CRM tool allows you to:
This is the kind of service that big box stores often neglect, and it’s what will keep customers coming back for more.
Explore POS systems that automate tasks like generating invoices and managing rebates (think Benjamin Moore!). This frees up valuable time for both you and your staff and eliminates a ton of manual entry and repeated effort.
Big box stores have the budget for high-end technology, but that doesn’t mean you can’t compete. Today, there are many tech solutions available for every size of hardware store, and they can be a complete game-changer.
One of the biggest areas you can save time is with your suppliers, such as Orgill, Emery Jensen, True Value, Benjamin Moore, Do It Best, and more. Just imagine having your staff free from all the repetitive and monotonous work like manual product data, knowing when to place orders, and having to send emails or make phone calls- all of this is eliminated by having a POS system that integrates with your suppliers.
Look for POS systems for hardware stores that can handle tasks like:
Big box hardware stores often boast big international brands, but local expertise can be your secret weapon here. Partnering with local vendors offers a great advantage for small hardware stores. This includes:
By leveraging local sourcing and building strong partnerships, you create a win-win situation.
Last but certainly not least, big box hardware stores often have massive marketing budgets, but you can level the playing field by offering automated personalized email marketing. You can think of it as a powerful tool for independently-owned hardware store owners to build long-lasting relationships and outshine the competition.
A Modern POS system (and eCommerce) can integrate seamlessly with email marketing platforms, allowing you to:
By personalizing your email marketing, you can create a more engaging experience for your customers. This fosters brand loyalty and keeps your hardware store top-of-mind, all without a massive marketing budget.
If you are feeling overwhelmed with the possibilities, start with a simple automated campaign, like abandoned cart emails or birthday promotions. Once you start seeing the results, gradually expand your efforts to include more targeted promos and personalized recommendations for a bigger impact.
By implementing these strategies and leveraging the power of technology, your hardware store can transform the contractor buying experience and establish itself as the preferred partner for their project needs.
Remember, in the competitive US hardware market, SMB retailers can win big by focusing on what big box stores often lack – personalized service, local expertise, and a commitment to building strong relationships. Celerant’s all-in-one POS system for hardware stores can be your secret weapon, helping you implement these strategies and become the hero of your local contractor community.
Our system seamlessly integrates features like
Interested in learning more? Explore innovative software solutions designed specifically for hardware and supply stores.
 The future is here! Learn how all-in-one POS retail systems are integrating AI (artificial Intelligence)… |
