E-commerce trend: Pricing is the new availability

Las Vegas—“Customers are using all your channels, online and in-store. That consistency across all your channels is key today,” said National Hardware Show keynote speaker Grant Farnsworth, president of business consulting firm The Farnsworth Group.

A full crowd of attendees at the Innovation Stage in the Las Vegas convention hall south were paying attention to his words, cell phones out, some even writing notes with pens.

Farnsworth identified some important behaviors from consumers and what drives those behaviors.

“The new brand drivers of today are availability and price,” he said.

Farnsworth pointed out two trends to watch.

“First, young pros are buying more online. This is a fact. And it’s not going away. They discover the convenience,” he said.

“Why drive 40 miles for a product that may or may not be in stock? When you can check online, order online and go pick it up or have it delivered. It’s become all about these online efficiencies,” said Farnsworth.

The second trend, he said, was that contractors are trying

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out new suppliers based now on pricing first, not availability first, in 2023.

“Pricing,” he said, “is the new availability.”

He also framed for the crowd some key issues affecting hardware and building supply industry. First up: There is the ongoing labor shortage.

“We need to find warm bodies,” he said. “We have to get new people coming into the market.”

On supply, he said, there is high demand for homes. “We need 17 million homes in the next decade,” he said.

On the demand side, he said, mortgage interest rates are up, weakening the pool of home buyers.

But the look-ahead is good from owners who serve both DIY and pros, he said. “Half or more hardware and home improvement business owners are positive about this year.”