Nice mark up....

[i579rbd]

Guess I am just lucky it is 12 miles to a local owned Ace or about 30 to the big boxes. I have found ACe to be pretty competitive on many items. They also let me pick my own lumber. The store has no turnover so the folks are friendly and knowledgable when they do have a larger mark up I don't mind as it saves me time and I know they need to pay their folks a living wage and all the expenses of running a store. A big box can spread those costs out over a larger inventory so you don't see it as much. I recently bought a Stihl tree limb trimmer (t101 I think) they gassed it up, filled it with oil and ran thru how to operate and maintain with me. Let's see a big box do that. The extra money is worth the service and convenience.

 

[like2wheel]

We're not on the same planet. I walk into the box store, especially Home Depot and it generally ruins a perfectly good day.

1. They're ran all of the good hardware stores off. Used to be I could walk into a hardware store and if I wanted a specific nut or bolt or bracket they would have it. The box stores only sell what moves. So they only sell what the customer wants. And the customer only knows a small fraction of what the contractor does, contrary to popular opinion.

2. They have few knowledgeable people working the floor and those are all being haunted by the management which only knows one thing and one thing only, keeping cost down. So if you need something it isn't going to be where the pro thinks it would be but where the do it yourselfer would look for it.

3. Because they ran off the good stores I have to deal with specialty wholesalers to get the quality products I need for the kinds of work that I do. That means I have to quantity buy. Most of them have at least a hundred dollar minimum, some are two hundred and fifty, some are even higher than that. This is getting to be the norm for two reasons, they need less people when the materials are handled in bulk, and most importantly, it keeps the box store types out of the store. Imagine needing a couple of fasteners and the box stores don't have them and to get three you need to buy a case.

Another thing on that note, the box stores love to sell what looks like the real deal and it is in fact a cheap knockoff. So if I use their product I'm cheapening my product, if I use the real deal the client sees me as a pirate because they've seen what looks like the same thing for a third of the cost at the box store.

Then there's the getting the same thing thing. That's when last year's product has been replaced with a newer better one, allegedly, effing marketing. Since the product was aimed at know nothings and it has no other purpose that means it disappears. It makes repairs, at least quality ones, almost impossible.

One of the karma things of this is the price shopper eventually loses, big time. If you look now even home builders are shopping at the box stores. So the home buyer pays a quarter of a million for their dream home and it has the same crappy products in it that came from the box store. Of course they don't understand it isn't the good stuff, because that's where they buy their stuff in the first place.

When someone at working at the store asks me why I have that look on my face I point out, "you ran off the good stores with the good products. You now have the clients thinking crap is quality. You made it harder for me to find quality materials to work with because they've convinced everyone that crap is good. And now, well, now you're selling installations too. And your installers? they're the guys who couldn't make it on their own for whatever reason. So we weed out the poor performers and y'all put them back in business competing with us and using your name to do it."

BTW, where I buy my wood, you don't get to pick, you buy in bulk, and there are no returns. It also has a sign out front, "Contractors Only No Counter Sales". And yes, on a lot of stuff I pay more than what the box store sells something that looks like it sells for. But I don't have to worry about going to three stores to get enough for the job because all that is left is what the do it yourselfers brought back.

I nominate this for post of the year.

I am not in the business, just a long time do-it-yourselfer. Couldn't agree more or said it better

Thanks for taking the time.

 

[avillahdw]

Having read all the posts on this topic, let me share my two cents worth (well known to be all it's worth). I have owned a small rural hardware store for 15 years and have worked there for 22 years. Many points made are true to some degree but many are also false. Let's look at pricing (and profit). Big boxes can purchase at volumes small hardware stores cannot. We all agree to that. However, most small hardware stores purchase through co-ops (Ace, True Value) or regional, national or multinational distributors. I personally purchase through Orgill Inc, a multinational. This helps smaller stores to purchase at more competitive levels with big boxes. However because another layer of "profit taking" is added to this (as the distributors have to make a profit also) this does put prices generally speaking slightly higher than a big box. The Wal-mart philosophy of low margin, high volume is where the big boxes pound the little guys. Because we are small, we do sell less volume and tend to have higher margins (read higher prices ) on many items. However, if a small retailer is truly paying attention to his market, he will be in the ballpark on price sensitive items (say caulk, 2x4 studs, power tools). But once you get away from these, many small retailers can match or beat big boxes. True story- I ran out of 3" DWV couplings one time, was going to be a couple of days before next delivery, ran to Depot to get some just to have in stock just in case. Paid $3.45 for the same item I was selling for $1.50 and making 50 cents on. Look at the profit for the big boxes and tell me they see making on selling 2x4's with a 10 cent profit per board. Any business will have areas that they are more competitive in and areas they are less so. If one business was the best ( price, service, selection) they would be the only one left. If your local store has issues, let them know as problems cannot be fixed until they are made known. I love feedback at my store, good, bad or in between. A store can only be as good as it's customers help it to be- to wit, if you like it, you'll support it, it will grow and continue to help meet your needs. I'll agree that there are some poor stores out there, as evidenced by some posts. This is most of the time a result of poor management, which usually results in poor hiring practices, fiscal management and employee apathy. As an owner, I must deal daily with the knowledge that to customers "perception is reality" whether it truly is or not. I work hard to make sure my business is a blessing and integral part of our community. Hopefully your local store is also.

 

[downsizingnow48]

I have to confess I don't think much about mark up these days. I look at availability, quality, and service. Then comes price. Where I lived in rural Virginia, there was a good family owned lumber yard about 20 minutes away. But just one small hardware store with limited stock in the closest town. The nearest big box was about an hour away. Availability of anything other than lumber was very poor, so I got lots of stuff online.

Here in Sacramento availability is not an issue, there are big box stores everywhere, but I only go there as a last resort. There are accessible and high quality suppliers for lumber, plywood, and many other things. For hardware I got used to using McMaster-Carr in Virginia, and still do for stuff that it makes sense to buy in quantity. For things that I might need right away, there is a Ace hardware about 10 minutes away. Their hardware and tools are good quality, and they always have 4-5 friendly employees in the store to help you find stuff.

So in my experience the first question is availability, can you even put your hands on what you need. Then comes quality. So much junk is out there. If something is available and the quality is good, then comes service - are the people friendly and willing to help if you have a problem. That's why I say price isn't the first consideration. But it is still an important consideration. As an anti-ripoff measure, I check a lot of prices online, at specialized websites and Amazon.

A case in point, I just bought a Jackson welding helmet. A local welding supply store had the helmet for $350. Cyberweld had it for $300. Amazon had it for $200. So here is a case where local purchase just doesn't make sense.