Google - "Ace Hardware franchise" or "True Value franchise".
Franchises are wholly dependent on the franchise provider for their
goods. They can't buy from other providers.
I knew someone who once 'owned', or 'managed', if you will, a Carvel Ice
cream store. They were not even allowed to buy their milk from other
than the Carvel company. If they ran out of Carvel milk, they wouldn't
be allowed to get it from the local grocery store, they would have to
close down until they received a Carvel delivery.
Every sale that Carvel advertised in the media had to be adhered to in
the local franchises, at the expense of those franchise owners.
Yeah, Tom was a real f**k.
The value in a franchise to two directional. In the case of the
Franchise, they are providing a service of group purchasing, shipping,
advertising, and in many cases training. The individual franchisee
gets those benefits but then must agree to purchase only from the
Franchise owner. The benefit to them comes from lower prices for
their goods, a recognized name, and advertising. Truely independent
operations are often forced to pay more for buying from a distributor
than they can sell for.
That seems really harsh but is a case of give and inch and give a
mile. If they gave into the get it locally once, they would end up
giving in all the time.
The franchise can be a hard way to go with the rules established by
some of them. You really must do your homework before taking that
Home depot is NOT a Franchise store - at least in Canada. They are
ALL Corporate stores. I believe that is true in the USA as well.
There is no "local ownership" involved - while Home Hardware, as an
example, is TOTALLY DEALER OWNED.
Some people are really mooches. I often wondered if you took one of
those tell me how to do it and I will buy it elsewhere folks and paid
them the same way. Say Bob, you are our accountant and all you do is
answer questions and tell folks how to do stuff so now you will work for
On 03 Sep 2010 19:33:42 GMT, Mark Lloyd
takes a turn for the worse.:
There's still room for a mom/pop hardware store in the right location.
We are a small town (6k pop. within 5 miles radius) that has a Lowes &
HD 20 miles west of us and a Lowes 20 miles East of us. About 3 or 4
years ago a mom/pop hardware store opened and has expanded twice since
it opened. Prices are higher than the L/HD, but the
service/convenience is great.
They will be expanding again in January 2011.
Good for them.
I agree with Caesar there will always be a need since the BORG only sells
the better sellers.
The question is can they find a location where they can make a buck. We are
down to about 4 store in a metro area of 300K. Three of those are Ace and I
wonder what will happen when corporate is no longer on the hook for the
lease. The one independent a true value franchisee is best positioned to
survive as I imagine they own the real estate.
IMO, the only way they will survive is to get rid of all the high cost
merchandise and concentrate on hardware. A small well stocked hardware
store may be able to find a niche in a lower rent, smaller footprint
location. Selling it at $2 a pop with a 300% markup might make it possible
Please come visit http://www.househomerepair.com
I live in Utah.
The ones here are very helpful, have plenty of help, they know where stuff
is at least, and some are very knowledgeable, or will radio to get someone
over there who has the answers. I think it has a lot to do where you live.
The ones I go to in Las Vegas are entirely different. Fewer staff that seem
to always be doing circles with you staying on the other side of the
display, know nothing people, empty bins, that kind of stuff.
Heart surgery pending?
Read up and prepare.
Learn how to care for a friend.
I haven't noticed that really, and there are three local HD stores. Someone
always mets me at the entrance and asks if I know where to go, etc. Most
times I do, but I was looking for a floor squeegee a while back, and he
walked me right to them. They still have some of their knowledgeable
old-timers, and last year I was even able to find a breaker for my
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