Rob Ferraro says nuts and bolts are not too sexy in the retail business but that has not stopped his family from running Jerry’s Paint & Hardware, a successful hardware store in Narragansett.
In late March, the North American Retail Hardware Association named Ferraro, 32, one of five Young Retailers of the Year.
Ferraro recently took some time to discuss the secrets of running a hardware shop.
PBN: First off, how did you come to receive the award? Were you nominated? Did you have any idea it was coming?
FERRARO: I received a call from one of my primary suppliers Orgill – a worldwide hardware wholesale distributor – letting me know that they had nominated me for the Young Retailer of the Year. This award is given every year by the North American Retail Hardware Association. I was very surprised and honored to be nominated. I never thought that I would receive the award and felt that I had won just being nominated.
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PBN: So what’s the secret to running such a successful hardware store?
FERRARO: It takes so much to be successful in today’s market. Our goal is to treat every customer like they are the only customer of the day. There are many outlets that a customer can purchase through, locally owned stores, the big-box [stores] and the Internet. So we have to differentiate ourselves.
Customers are looking for an overall positive shopping experience. So we have focused on several aspects to stand out from the rest. The first one is product: having the item in stock is so important [and] at Jerry’s we have over 30,000 items. We sell quality products that are need based and a customer wants to walk in, get it and get out. Whether it’s a contractor with five employees on the job or a do-it-yourself person doing a weekend project, they both have limited time. Pricing strategy is another key factor. We spend a lot of time making sure that we are competitive in today’s market.
Keeping up with the times is very important in being successful. Just because you are a mom-and-pop hardware store doesn’t mean that you have to be trapped in the 1950s.
A successful business has to change with the times. We keep up with industry trends, innovative products, while maintaining the old time hardware items like canning jars.
PBN: Today’s economy has not been kind to the construction sector. What moves have you made to keep Jerry’s strong despite the downturn?
FERRARO: Diversification has been key to our success in a very soft economy. We focus on all types of customers [from]the do-it-yourself homeowner to the experienced high-end contractor. Having a well-rounded base of customers allows you to not have all of your eggs in one basket.
This economy has allowed us to reach out to different markets. Buyers have changed their habits, they price shop better [and] they are looking for a product that will last. Features and attributes of a product have more focus now.
In the past, builders and contractors were ordering supplies for their job without paying much attention to price because the job/customer was paying for it. With the economic turn, contractors are bidding against 10 to 15 others to get a job, so price has become so important.
Going into this downturn my father, Bob, and I said that we wouldn’t let our inventory suffer. Many businesses let their inventory depth and breadth sell through and dwindle. We added product because you can’t sell from an empty basket. Once a business lets inventory go down it becomes more difficult to rebound when the economy comes back.
PBN: I understand that you are the third generation at Jerry’s Paint and Hardware. What are the benefits of a family run operation? Any drawbacks?
FERRARO: The first thing I have to be thankful for in a family business is my father. He has taught me so many invaluable lessons over the years. He has played my devil’s advocate and given me enough room to make a mistake and learn from it.
In a family business you are able to react better to many situations. Unlike a corporate store, a decision can be made fast to better service a customer. A fire will go out if you don’t keep feeding it and stoking it. In this industry it is very easy to get complacent. Hardware sales aren’t very sexy, and nuts and bolts don’t have much appeal. So you have to try new ideas and marketing techniques, some will stick and other won’t.
Our product knowledge gives us much strength. We have several long-term employees with little turnover.
With our business being over 70 years old we have no debt, so the cost of ownership is less. This allows us to be priced competitively in today’s market.
PBN: What’s next for you personally?
FERRARO: This award has made reflect on where do I go from here personally and what is the next step to keep the business healthy enough to grow. I am young so there is a long road ahead but for now all I can say is this is just the beginning.
