Hardware Hank is an equity program offered by United Hardware that offers products and services to retailers who are hardware oriented in nature. Hardware Hank member-dealers are owners of the company, making a stock investment in United Hardware and purchase product on a cost-plus basis through the warehouse.
Equity Investment
Stock purchase required:
Voting Stock – $3,450 (69 shares at $50.00 per share)
New dealer pays $500 (10 shares) when joining United Hardware and balance of $2,950 (40 shares) is paid by adding 5% to warehouse purchases
Class A Stock – Purchase shares based on 2% of warehouse purchases (after Voting Stock is purchased)
- Class A Stock is capped at $75,000 or ten years, whichever occurs first
- Class A Stock capped at $37,500 for each additional location
Voting Stock/Class A Stock Repurchase - Voting Stock and Class A Stock redeemed (repurchased by United Hardware) to dealer after leaving the business or resigning the franchise
Cost of Goods
Warehouse – United Hardware landed cost +2%, 7% & 11%, 15% items under $3.00 - Reduced price product available – Circular program, Active Promotions, Fax, Monthly Specials, Buying Markets
Ship Direct – S/D cost + 0% truckloads, 1% over $500, 2% under $500
Warehouse Assortment
| 55,000+ items stocked in our Milbank warehouse - Major Departments: |
- Paint & Paint Sundries
- Hardware
- Ranch & Pet
- Automotive
- Builders Hardware
|
- Tools
- Sporting
- Plumbing
- Toys
- Outdoor Living
|
- Electrical
- Housewares
- Heating
- Farm Supplies
|
- School Supplies
- Store Supplies
- Lawn & Garden
- Christmas Trim
|
Hardware Hank Paint
“Hank's Paint” manufactured by Valspar
Valspar Paint Representatives – in field support
Paint delivered by United Hardware's carrier – 100 gallon orders billed at cost +2%
50 to 99 gallon orders billed at cost +7%
Advertising – Co-op advertising 3% of previous years’ purchases
Hanks Paint Rebate
Rebate based on 3% of private label purchases – paid 100% in cash
Advertising
Hardware Hank Circulars – Choose from over 36 versions annually
Dealers Choice (build your own) circulars – Circular Trim Kits
Newspaper ads, radio spots – Yellow Page Support
Reduced cost product to support circular/dealer choice advertising
Co-op funds – Co-op Quick Pay program
Store Identification
Complete assortment of Hardware Hank exterior signs and interior décor
Departmental signs, end cap signs, Use of Hardware Hank trademarks
Dealer Group Meetings
Area meetings hosted by District Managers
Buying Markets
Two Buying Markets per year – Minneapolis Convention Center
Profit Sharing Rebate
Rebate declared after year-end by Board of Directors, based on warehouse purchases, Usually paid 50% in cash, 50% with three-year Interest bearing note - Rebate not guaranteed, based on United Hardware's Profits