During daily exchanges with hardware store owners from various places, I discovered an interesting phenomenon.
Many friends who have just entered the industry, especially entrepreneurs who have opened new hardware stores, often fall into the “following mentality” and follow what their peers sell and set at what price.
Although “following the herd” can reduce the cost of trial and error to a certain extent, newly opened hardware stores are often at a disadvantage in terms of supply, channels, funds and experience. Short-term reference is feasible, but it is not a long-term solution.
A hardware store that can sustainably make profits relies on “difference”, that is, differentiated operations.
The hardware industry seems traditional and has low barriers to entry, but in fact the competition is extremely fierce.
In residential areas or areas with concentrated building materials markets, there may be four or five hardware stores on one street.
If the products sold are similar, the prices are transparent, and the services are equivalent, they will fall into a price war and their profits will become thinner.
If a new hardware store does not have unique competitiveness, it will be difficult to survive under the pressure of its peers.
On the contrary, if you can find small incisions and make features, even if the store is small and the categories are not complete, you can still form your own customer base and reputation.
The following is a real case of a Guangzhou customer.
Before 2019, he opened a hardware store with an area of 50 to 60 square meters. There were already four or five larger and longer-running hardware stores in the neighborhood.
At first he was worried about whether the store would survive.
After the exchange, he was advised to observe which hardware categories among his peers were “unprofessional” and “incompletely covered” but had stable demand.
He found that the shops on the street mainly sell hardware, electrical machinery or building materials, and most of the standard parts (such as screws, nuts, gaskets, etc.) are sold “on the go”, with incomplete categories and shallow inventory, and some models are often out of stock.
Perhaps store owners do not pay attention to this type of product due to its thin profits, various models, and cumbersome management.
So he decisively adjusted his direction, retained some mechanical and electrical products, and used standard parts as the main category to achieve complete models, sufficient inventory, and quick response.
For special specifications that others could not find, he would do everything possible to arrange the goods; for small orders that others found troublesome, he would take them seriously.
Gradually, nearby factories, repair shops and even colleagues came to him to get standard parts.
Today, although his hardware store is small, its business is stable and its customers are highly loyal. It has differentiated itself through neglected hardware categories.
In fact, the differentiated management of hardware stores is not just about products.
In terms of service experience, many hardware stores cannot keep up with the service, have a cold attitude, and are pushy after sales. However, some mom-and-pop stores have won loyal customers because of their human touch and patient service.
If you can be enthusiastic and professional, provide worry-free after-sales service, and provide simple technical guidance, it will be a big plus.
In terms of professional development, if the competition in hardware and electrical machinery in the area is fierce, you can specialize in a certain segment, such as low-voltage electrical appliances, pneumatic components, etc., to become the most knowledgeable store.
In terms of value-added services, it can provide maintenance services, and high maintenance profits can also drive the sales of accessories; provide distribution services for construction site and factory customers to increase customer stickiness; provide installation and technical support to meet customers’ “one-stop solution” needs; carry out tool rental business, which can both increase income and attract customer flow.
In addition, accessories and consumables can be packaged, allowing customers to buy all they need at one time.
Some friends may be worried about supply of goods, funds and other issues. The Zong Shopping Express can help everyone.
It is the leading domestic Internet service platform for all categories of hardware, home and building materials industries. Through an efficient online ordering system, stable supply chain support, and rich product lines, it helps you expand business categories, optimize inventory structure, and reduce procurement costs.
The entire process of product selection and order placement can be completed efficiently on the platform, allowing you to have more energy for customer service and differentiated operations.
In short, differentiated operations should be based on market demand and competitive gaps to find a hardware track that suits you.
Whether it is category, service, skills or attitude, it may become the direction of differentiation.
If you need to communicate when looking for direction, or want to know how the Zong Shopping Express can optimize the supply chain and expand product lines, you can actively explore it.
Let’s make the hardware store more stable and better together.
