Small stores and stocking inventory

After reading the tread about TSC.I hear some folks talk about the lack of or quantity of this or that in a store.I own and operate A True Value store for the last 19 months.We are open 7 day's a week and have a part time helper for two of them. The sales floor is 3000 square feet.The big stores like TSC have stock holders to gamble their money. In my store what comes in the back door in 14 day's needs to be paid for or it the clock starts the 16 % interest.I listen to my customers wants and needs. When I have a third or fourth person ask about do you have this I write it down. The store was in direr straits when I bought it .I am slowly building inventory 2 or 3 things a week.The government does not have programs for stores like mine. Like they do for young farmers loans and operating subsidy loans and such at lower interest rates for farmers and ranchers. I grew up on dairy and am now have been on both sides of the fence.Yes could I get a big operating loan and stock a lot more sure I could.But it would make the the cost of the inventory selling price to rise and then would or may not be competitive with some chain stores.So I best be dam sure of my stock that I do buy as it is my money I am gambling with.If I have pink garden hoses on the shelf because one person wanted them. I could be stuck with the rest of the case of them for ever. So what I want you to get out of all of this when you are in a smaller store and the inventory is not as full as you think it should be or they do not carry pink garden hoses that is most likely why.

I prefer going to the hardware store in our small town. I would rather help someone local it saddens me to drive in town and see half the store fronts vacant. If I cant find something at a shop in town I understand. I go to the coffin nails of America the next town over.

I must say I am pretty unaware of what goes on in smaller stores. Its refreshing to be reminded why things are the way they are sometimes. I wouldnt have thought about interest rates of such scope on unsold inventory for that short a period. There are those times when I am one of those demanding customers. If I walk into a store, & its not there I leave, & go to the next store.

I will say this though. I do know of a couple of stores about 50 miles drive each that I can find almost anything I want. Hardware stores that is. In the last 20 years one of them didnt have an item I went to get. The salesman looked at me as if I were from Russia, & said "You know if we dont have it; then You dont need it!!!" He & I had about 6 other people dying laughing for 2 or 3 minutes. & he was right by the way. I dont even remember what I went after! ANYWAY... Thanks for the info!

Scotty

I have had better luck finding those off the wall or hard to find items in an small store than with the big box stores. I can tell you one thing the small store employee at least knows what you are looking for, the big box store employees just give you the "deer in the head lights look" when you ask for the simplest items.

As for my 2 cents.......

Being a parts manager at a Ford store for the
past 35 years all I will say If I have it, no
one wants it. If I don"t have it everyone
wants it. The customer doesn"t care about 200K
that you have in stock, it"s $1.00 Item you
don"t have.......

Well said and good luck with your store.

Hi, rla. Made me chuckle about being the parts manager at a Ford dealership. I went to the largest Ford dealership in Iowa back about 1976 to get a hinge bushing rebuild kit for my Mustang. They had them, all right. THREE. it takes four to rebuild one door. I asked why and the parts manager said that's all Ford lets them stock-and he agreed it didn't make sense. Fast forward about twenty years. I go back to the same dealer for another set of bushings and they still stock THREE. Sometimes the corporation's bean counters just can't get it right. BUT, it did cause me to make a second trip when the 'missing' bushing came in. Think that was the plan all along?

I read and understand the point. I once had a small business, and stocked 1 each, of a $100
item, which I got for a 20% discount off list.
The discount on a box of 10 was 45%. A BIG farm
supply store got that item at 45% off list, and
sold them at 15% off list. Coustmers would buy
from the farm supply store and come to me to
ask how to hook it up. They said that I was "An
ornary old man",(I am!) if I didn"t offer free
advise.
BUT!! My "Local" hardware store is so "High
Priced" that I refuse to shop there. They want
75 cents for a 2-1/2 long, 5/16 grade 5 bolt,
i"ll drive 15 miles to that farm supply store,
where the sell hardware by the pound, and I can
get 7 bolts for a dollar, never mind the gas
price, rather than buy from that "Highway Robber"
at the crossroads hardware 2-1/2 miles from home!

well said rla

i go to the local hardware first. small store but he gives me a credit account, the big stores do not do that. if he has the item,good,if not go on down the road.

Same in most small businesses. I have my own wheelchair wheel molds for many sizes. A custmor will fax or email and order for 20 wheels of a size I sell 40 a year and want then ASAP. This will take two mold changes at half or longer of a day. It will take several pounds of material purged thru the machine to clear out the last color of material. All that means that there is no way anyone will pay the amount it would take to even pay the costs let alone have any left over to buy beans. The only way to try to make out is to make a two years run in those uncommon sizes and hold them in inventory until they are sold. I have some of this kind of inventory that has been in the warehouse for over ten years. Who ever was using them either goes out of business, finds a different supplier or no longer uses this size or colors. The materials have to be paid for in 30 days and the labor has to be paid at the end of the week. If my customers can not get the special small amounts I will not get the large quanity orders in the common sizes. Small businesses are most between a rock and a hard place a lot of the time. Shipping container quanity amounts can be had from China at my material costs for the same item.

i made a comment on the TSC post and i stand by what i said.............HOWEVER!......if i could meet u in person, i would shake your hand.

Unless i see something in the TSC flyer that is on sale for a decent price, i dont even go into that store.

I mostly deal with the local hardware store who has literally thousands of different belts in stock hanging all the way around the ceiling of the place. they have most bolts and fasteners that i would need from day to day things. If they dont have something, "it will be in on tuesday". This is in a town of 1000 people and 20 minutes from a major city with all the bigbox stores n such. i would gladly support the small guy before a big box store.

Yes sometimes, the bigbox store is alot cheaper, but there isnt one 3miles away from me and the amount of gas and my time to go there isnt worth it to me.

Good on you for taking on such a gamble

I always deal with the local hardware store, my time is worth something to me so if I pay a few extra bucks I don't care. They order things they don't have in stock and call me at home when it comes in.

I needed two pipe retainer glands for a mould holder I am having constructed. I was directed to a metals co. in the southern part of my state.
When I went to pay for the glands and bolts, they said to put all the stuff on the scale. The nine inch glands came to 8 dollars each. A lot cheaper than I found on the internet. I seen them selling a lot of sheet steel when I was there.

A good friend of mine used to run a local auto parts store. He was an independent store. He had to buy so many dollars just to get daily delivery. The last two years he was in business he made over $50,000 profit each year but had to borrow money to pay his taxes. His inventory value grew faster than his profit did. He did not have any cash money as it was all tied up in inventory.
Another thing he used to do. If a part went up in price he would wait until he sold the one he had in stock at the old price and then mark up the new one when it came in. That made him lose money over the year as his inventory changed value. He should have changed his price as soon as it went up.
Small businesses make small margins after paying all of their bills. The locals pay taxes and employ people. The chains draw people to their "big" stores that they often get tax abatements on. I have seen the property taxes paid by the local small stores be larger than Wally world.

I go to 2 local hardware stores, one is an Ace 1 mile from the farm, and the other is a True Value a couple blocks from work. Both have good service and great selection, often with something I can make work. Either one works for me, just wish I had one closer to home like that too.

Donovan from Wisconsin

I go to 2 local hardware stores, one is an Ace 1 mile from the farm, and the other is a True Value a couple blocks from work. Both have good service and great selection, often with something I can make work. Either one works for me, just wish I had one closer to home like that too.

Donovan from Wisconsin

I buy in 2 small hardware stores.I build picnic tables.My 25 lb tub of 16p galvanized spikes was empty.Since it was late fall and I wouldnt be build more tables I didnt want to buy 25 lb that would be sitting all winter.I buy my grain at a small hardware store.While I was buying grain I asked for 2lb of 16 p spikes.Clerk set 2 1 lb boxes on the counter.3.99 a box.The going price around here is 1.70 per pound.I would have turned them down but the tables were sold.Friend and I went to a True Value that had just opened.Prices were very high,Saw a 40lb bag of oil dry for 11.99.I had been buying it for under 4 bucks.I see much of this out of line pricing lately.I bought a 25lb tub of 16p spikes for 20.00 at a salvage store last month,thats 78 cents a pound.Seat lumber is 3 bucks higher this spring but I can keep my table price the same as last year.I have to buy lumber where I can pick it out my self and go twice the distance.Ive tried to buy it closer but they will load junk lumber even after I explain I need good looking stock because its going into picnic tables.I buy my bolts by the pound at a salvage store.I tried buying at small hardware but they want 25 cents per bolt in box lots.Im paying 14 cents this year.Lowes and Home Depot want 54 cents or 45 cents if you buy the box .Years ago I was buying my bolts and nails from a small hardware store.I tried to get the owner interested in selling my tables.She took us out and showed us a 6 foot table her husband had bought for more money than my 8 foot table sells for.It was a tipper.I sat down at it and told my son to sit on the same side.It reared up.She still thought her table was wonderful and wouldnt consider selling mine.I dont look for dealers now because at 73 Ive slowed down.I had one good dealer that sold 41 tables one summer.He sold the store.When I talked with the new owner He didnt think he could sell picnic tables.I left and never sold to dealers again.