Hardware storeturned-lumberyard

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Dale Hardware.

I Fremont. Ca.. has been through this over and over and learned to take it in stride... but this time, it's the big one.

No, not another earthquake, although the community sits smack on the vallcy's f'amous fault line and the operation, in fact, promotes a multi-f'aceted carthquake survival kit to its customers. Earthquakes tumble buildings, while Dale, instead, extends them.

We're talking about expansion.

Since the company was launched in 1955, strictly as a hardware store, it's undergone five expansion projects, all within the samc block, says Garth Smith. whose father founded the enterprise. "We kept needing to accommodate new products and answer customer demancl."

But, as we noted, this is thc big onc. Two years ago-again, prodded by "the fact that we continually get requests for new merchandise," he says-the major upheaval materialized. Dale mushroomed from 40,000 sq. ft. to 100,000 sq. fi.-what owner Garth rightly calls "a substantial increase" felt in cvery deparlment, but mainly in two product lines-a garden center and a lumberyard, both brand-new arenas for Dale. And not only an all-new lumberyard, but a state-of-the-art, covered, drive-thru facility, answering demands for sticks that Dale's commercial accounts had been lobbying for. It's stocked with everything from specialty hardwood and the rcdwood so popular in California, along with decking of every persuasion, to the standard dimensional Doug fir routinely utilized by Dale's prime customers, the town's remodelers.

Personnel count shot up from 95 to 120, including managers well-verscd in the new and unfamiliar lines. (And if you're selling lumber, you've got to deliver it, so that meant several new vehicles, including a forklift.) SKUs vaulted from 45,000 to 65,000.

"Every departmcnt was expanded," says Garth, who has eagerly fbllowed in his father's footsteps.

"l workcd here through high school and college, which convinced me it was what I really wanted to do. I got seriously involved in the mid'70s. Shortly alier-the early '80smy dad died unexpectedly, so it landed in my lap a little quicker than we'd planned. I learned by trial and error."

For one thing, he leamed early on how and whom to hire. "Our process is pretty involved. We use a team approach-four or flvc people sitting in on interviews. We're continually seeking good employees, and what we're looking for is a can-do attitudesomeone who really enjoys working with people. We can train them in product knowledge, but not how to smile, to enjoy talking to people; it's far easier to teach them how to fix a toilet." Or, since the lumberyard debuted in January 2013, how to build a deck. service," he re-emphasizes, "is Number One: That's where we shine. It's a very competitive market, but you can't buy service. That's where we try to make a difference," Garth declares.

But who the heck taught Garth that a grueling recession was the time to more than double your space? Pin the credit on the guy himself. "I decided that now is the time. Three reasons," he ticks off. "One, money is as cheap as you'll ever get it. Two, when it comes to contractors to hire, during this down stretch we've got the pick of the litter. And three"-most essential-"by the time we're done, the economy most likely will be turning around, so we'll be perfectly positioned."

He was right. "It turned out very, very well, and business is quite brisk."

Added bonus: Can you say "federal funding?" Garth explains the lucky break: "It was a coincidence. I had a regular bank loan all set up when the city came to me and said, 'Garth, we have a bond for Alameda County with money allocated to us in Fremont. Your business fits the requirements.' So I sent in a one-page application." Almost immediately he was told, "You got it!" "I didn't stumble onto it, it came to me, and saved us money."

Since the expansion, Dale has tracked solid increases in customer counts and sales. "We're attracting more female shoppers than before, especially in the new garden center.

"Product selection also," he's quick to add. "We do so much better than the boxes, plus services-everything from cutting keys and glass to screens, from pipe cutting and tool repair to fumace troubleshooting and equipment rental, even bulk kerosene sales, whatever a traditional hardware store used to do, plus bigger projects like irrigation systems for their lawns. We have all the parts and pieces." And don't forget those earthquake kits!

And the lumberyard has opened up our contractor business," he reports. The split between retail and pro customers hovers where it's always been, at 50/50, with pros divided between commercial accounts, such as local utilities, the water district, and city and county departments, served by Dale's expressly dedicated outside salesman, and Dale's remodeler contractors.

Because this community in the Silicon Valley of the Bay area is "pretty all built up, not much land left," according to Garth, "we do only a couple of new homes a year. So our forte is serving the remodeling trade, which has been pretty constant, although kind of slim the past four, five years. People saw their home values drop, so they weren't going to put any more money into them. But that's started to escalate."

Sure, there's competition-there's always competition-but folks stay loyal to Dale because of its primo service: "That's what we hang our hat on-friendly, knowledgeable employees. We put a lot of time and effort into training them in product knowledge and service. And that

Dale gets the word out via print ads ("but print is very costly!"), a Facebook presence, and, now, Twitter: "We're playing with it; it's the way to go." The company's customer-friendly website features department managers who offer tips and guide folks through projects. Customers, both retail and pro, also can take advantage of its rewards program, which offers points for purchases-plus, "we capture their emails and can use them for promotions," Garth confides. Folks also line up in the parking lot whenever Dale hands out free hot dogs when its barbecue grills are on sale.

Never a dull moment... and that's exactly the way Garth likes it. "I just enjoy working with people; it's fun! And I've got a good group of employees who work together as a family."

In fact, one of them is family: his son, 30, one of the company's assistant managers. Plus, there's the benefit no one can refuse, says Garth. "There's lot of money to be made if you do it right."

Good deal: Looks like no one in Dale's crew will be on food stamps any time soon.

Carla Waldemar cwaldemar@comcast.net

By f ames Olsen