Whats it take to start a hardware store?

Status
Not open for further replies.
Originally Posted by skyactiv
The few that have survived where I live specialize in products lines not sold at big box retailers and also provide service work.
Example of a high end Ace hardware in the county I reside in.
It's true, there was a hardware store down the street from me that was also a small engine place and the closest STIHL dealership. However, even HD and Canadian Tire have Knipex on the shelves now.

I think the real problem is that box stores are more relevant to 2020: People don't want nuts and bolts to fix things, they want to replace it at the lowest price possible. That's why box stores sell appliances. I could see a business that is targeted at providing professionals with building supplies as well as being useful to DIYers (no or low minimum orders, open late(r) on weekends, actual cashiers instead of an order desk, tool rental etc) but most people call professionals to wrench on their stuff now-a-days, so serving them would be the bread and butter.
 
There must be a few hundred thousand dollars of inventory needed to open up even a modest hardware store. That money is earning nothing until it sells. Some of the inventory moves quickly, but a lot of it sits on the shelves for months at a time before it is sold. And some will sit there over a year.
 
Liquor store that sells porn and smokes and fireworks and snacks is probably the most sure investment. Restaurant being the worst. Hardware stores have went away because of HD,Lowes etc. Maybe a quick-lube would fit the demographic of your area.
 
It should probably be pointed out that you will work far longer hours than you would ever work at a "job", and everyone and everything gets paid before you do.
 
Originally Posted by Win
It should probably be pointed out that you will work far longer hours than you would ever work at a "job", and everyone and everything gets paid before you do.


Exactly
 
This is absolutely true.

When I was trying to make my business a success, I often worked nearly around the clock for months on end. Sleep was often finally falling asleep at the office due to exhaustion. Eating antacids like candy. Be prepared to risk your life savings, and work harder than you ever have, with no guarantee it will ever pay off.

If you choose a plan that is viable, you can be a great success. But it will not be easy.

Good luck.
 
Originally Posted by 02SE
This is absolutely true.

When I was trying to make my business a success, I often worked nearly around the clock for months on end. Sleep was often finally falling asleep at the office due to exhaustion. Eating antacids like candy. Be prepared to risk your life savings, and work harder than you ever have, with no guarantee it will ever pay off.

If you choose a plan that is viable, you can be a great success. But it will not be easy.

Good luck.


I agree it's very difficult. What type of business did you have ?
 
Originally Posted by 02SE
You've asked me that before. Short answer: Furniture business.

I thought you had a speed shop building hi performance cars and motorcycles.

I have a small business buying and selling refurbished medical equipment.
 
I've worked as a master tech on cars. Became disillusioned with the industry, and walked away.

I started and ran that furniture business. Eventually it became a success, and I sold it.

I took up working on racing vehicles as a hobby. Various kinds from landspeed racing, to professional racing.
 
So, what need in your area isn't being met by HD, Lowes or the B2B businesses? Once you do that, model the addressable opportunity vs. the costs and make sure you don't underestimate them. It is not an easy analysis. I'd be surprised if the True Value or Ace's don't have canned market studies or would do one for you...its in their interest. What is the one by you, Orchard Supply??

That said, there are a Lowes, HD and three local hardware stores within a 20 minute drive of us and all seem to do well. The locals have a slightly different mix of products; they carry the higher end paints, small supply of decent quality tools and niche items, and some do a lot of custom lumber cutting and they offer delivery. They all have much larger selections of fasteners than the boxes. They will all also get you almost whatever you need that they don't stock.

I avoid the big boxes unless necessary, I'd rather support the locals for their service. One thing I like is that when you buy something, say a landscape light fixture, and you need another, the locals will usually still carry the line as opposed to the big boxes which turn their offerings much more frequently...by design; cant find a replacement, you will likely buy a new set...
 
I'm with ZZ on this. Our ace hardwares will cut and or thread any length pipe. And the area of the stores where they have the hundreds of different bolts and oddball stuff is like my mini mall. There prices on the regular stuff is probably 15-20% higher than the big box's but I frequent the Ace stores 10-1 over the big uns. Our Ace store will lay a fastenal in the shade any day .
 
Originally Posted by P10crew
I'm with ZZ on this. Our ace hardwares will cut and or thread any length pipe. And the area of the stores where they have the hundreds of different bolts and oddball stuff is like my mini mall. There prices on the regular stuff is probably 15-20% higher than the big box's but I frequent the Ace stores 10-1 over the big uns. Our Ace store will lay a fastenal in the shade any day .


Home Depot also has the pipe threading machine. But good luck finding a guy to use it.

Anyway. as a landlord I'm running to Home Depot all the time. There are local small hardware stores. But it basically boils down to the math. For little things, I'm not going to drive 20-30 minutes to the big box store depending on traffic to pick up little stuff. But if I have a big project like redoing a bathroom or kitchen or several days worth of work on multiple units, then I'm just going to grab everything at Home Depot. The mark up on the little things at the local store is at least 10-50% more, and little things that might be $7 at HD might be $10-$15 at the local store. No big deal if it saves you 10-15 minutes. But if I'm spending a few hundred, then I'm just automatically going to Home Depot. And it's actually the opposite, sometimes the local store will have little quirky things that HD might not carry, but usually Home Depot has a full selection of plumbing parts that the local store won't have. Bottom line, no wonder the little store goes out of business if you just give it the little business and not the big orders. For instance if I replace a toilet, I have my pick of toilets, might need a flange kit, shut off valve, the shark bit kind, etc. Most little hardware stores don't carry toilets. So if I'm off to Home Depot anyway, I'm going to grab all that there. Plus the local hardware store lady gives me dirty looks whenever I pull out a credit card to pay for my purchases because it's easier to track at the end of the year. So to make her happy, I pay cash but now I have to tally my stack of receipts at the end of the year. So I avoid it when I can.
 
Speaking as a customer:

I have two hardware stores within ~10 miles of me. One is Doitbest affiliated, while the other is independent. Although "as the crow flies" there's a Home Depot about the same distance from me and a Lowes a little further, they require hopping over to a much busier, more congested road so the hardware stores are generally much easier to get to. My home town lost its long-time hardware store 25 years ago when Lowes built a nice new store right next to Wal-Mart, but the son of the owner popped up a few years later with a Doitbest in two locations-one attached to the big lumber yard and one in a strip mall on the opposite end of town from Lowes.

In any case, for me the bread and butter purchase from hardware stores is in(not to be smart) hardware. I suspect-but don't know-that the margins are high on it, but I imagine that it's also a pain to keep all the little drawers stocked and even with a huge margin it would take an awful lot of people coming in and spending $5 on a bag full of nuts and bolts to keep the lights on. I also buy things like plumbing parts and bulk wire from them. I occasionally buy tools, especially if I need something in a pinch and that's the closest place, but they're a last resort supplier for me due to high prices for questionable quality at least for automotive type tools(carpentry tools are a different story, but not something I have a lot of need for). I know that I'm paying more than I would at Home Depot for this stuff, but to me there's a lot of value in being able to walk in, describe or show someone working there what I need, and have them walk me right to it sometimes based on a vague description. I can remember walking into one store one day with the bottom half of an SU carburetor to look for screws and the guy asked me what year MG it was off of
smile.gif
. There are also the little odds and ends I can often find there individually rather than buying the whole thing at a big box.

Someone else mentioned finding niches and other things like that. The store in my home town, for example, charges a few dollars to sharpen and balance a lawnmower blade and will usually do it while I wait. They do a better job than I can do at home, and it's honestly faster for me to pull the blade, drive to the store, have them do it, and drive back home than it is to mess with getting it right. I use to do it every year. They honestly have never failed me on turning up a small engine or lawnmower part and will take them on for repair, even though they don't really advertise that service.

One of the others local to me now has gone BIG on the Big Green Egg, and I honestly think that's their major business. Considering the price of those things and all the doo-dads that go with them along with their popularity, I suspect that business alone keeps them afloat.
 
I had a house a good half hour drive from the nearest big box. There was a full service larger ACE hardware store maybe 15 minutes away.

Two miles away was a small mom & pop hardware store. I preferred that store because I'm not all that smart when it comes to DIY home projects. I'd go in there, tell them what I was doing and either the wife of the husband who was there knew exactly what I needed to get the job done. At the big box stores, or the other larger ACE I'd mostly be on my own wandering the aisles trying to figure out what to purchase for my project.

I doubt if the small mom & pop place could have kept the doors open if it was just for regular hardware purchases. Where they appeared to make most of their money was in equipment rentals, they had a decent size yard loaded with all sorts of loaders, small tractors, bobcats and such.
 
Bunn you reminded me of anther plus for my local Ace hdw. They sharpen and work on all things Stihl and they also are a factory authorized service cent for several lines of power tools
 
Originally Posted by Mr Nice
I have a small business buying and selling refurbished medical equipment.


I knew 2 guys who would buy the contents of hospitals when the hospital was remodeling or upgrading or whatever they do. The would box up every last thing including outdated med supplies (not medicine) and sell it all to South America.

They were killing it.

It has to be harder than ever to have any type of brick & mortar store today. I got out at the very beginning of online and not a bit sorry.
 
How about a Harbor Freight store, any around you,.Have one coming to our town in 2020, next closest is 35 miles away.
cheers3.gif
 
Status
Not open for further replies.
Back
Top