Latest / Small Business Success with Fexingo: Local Companies, Main Street Stories, and Community Commerce / How a Local Hardware Store Beat the Big Boxes with a Skills Workshop
Transcript
- Lucas: So there's a hardware store in Portland, Oregon, called Waverly Hardware, and it's been on the same corner since 1954. But about four years ago, the owner, Maria Contreras, realized she couldn't compete with the big-box stores on price. So she decided to compete on something they can't replicate: teaching people how to actually use the stuff they sell. Luna: A hardware store teaching classes? That's a different angle. What kind of classes are we talking about? Lucas: Everything from fixing a leaky faucet to rewiring a lamp. She started with a single chalkboard and a retired electrician who volunteered his time. Now they run four sessions a week, and the numbers are pretty striking: they've seen a 22 percent lift in repeat customers and a 30 percent jump in the sales of tools and parts used in the classes. Luna: That's a big jump from just a chalkboard. But before we dig into the numbers, I want to mention something to our listeners. You know, we keep this show completely ad-free, and that's a choice we're proud of. If these conversations have moved your work forward in some small way, and you want to support that, there's a link at buy me a coffee dot com slash fexingo. It's a simple way to keep us going, no strings attached. Lucas: Yeah, and it really does help us keep doing what we do. We're not asking for a lot, just a little support from people who find value in the show. So, back to Waverly Hardware. The key wasn't just the classes themselves, but how they changed the store's relationship with its customers. Luna: So it's not just a clever way to get people in the door. It's about building a community that keeps coming back. Lucas: Exactly. And that's why I think this story is so compelling. Maria noticed that people were coming in with a problem, not a product. They didn't know which pipe wrench to buy or how to patch drywall. The big-box stores just have a wall of options and a teenager who might not know the difference between a Phillips and a flathead. Luna: Right, and that's where the classes come in. They turn the store into a trusted advisor, not just a place to buy stuff. Lucas: Precisely. And the classes are structured around real projects. For example, the 'Leaky Faucet 101' class is two hours on a Saturday morning. People pay twenty-five dollars, which is a small margin for the store, but the halo effect is the real payoff. After the class, they're buying the specific tools and parts, and they're coming back for the next project. Luna: So the revenue from the classes is almost like a marketing expense, but it's also a profit center on its own. How much of that 30 percent sales jump is from the classes themselves versus new customers? Lucas: Maria estimates that about half of that jump comes from people who attended a workshop and then made a purchase that day or within the week. The other half is from word of mouth, people who heard about the classes from a friend and came in just to check it out. Luna: That's a smart way to think about it. But I'm wondering, what about the logistics? How does a small store with maybe two or three employees run four classes a week? Lucas: That's the part I found most interesting. Maria didn't hire a full-time instructor. She built a roster of local contractors, electricians, and plumbers who teach on a rotating basis. She pays them a hundred and fifty dollars per class, which is a decent side income for a couple of hours on a Saturday. And the store provides the materials, which are often donated by suppliers who see it as free advertising. Luna: So she's building a network of experts who are also potential customers and referral sources. That's a really clever way to tap into local talent. Lucas: And the classes are tailored to the seasons. In the spring, it's about planting and soil prep. In the winter, it's about insulating pipes and small repairs. That way, there's always something relevant, and people have a reason to come back every quarter. Luna: I love that. It's almost like a subscription, but it's a workshop. Do you know if they've had to turn people away or cap the class sizes? Lucas: They cap each class at twelve people, which keeps it hands-on and manageable. And they've had to add evening sessions to meet demand. But the cap is deliberate, because Maria says the whole point is that people leave feeling confident, not overwhelmed. She doesn't want a hundred people watching a demo from the back of a crowd. Luna: That makes sense. And it ties into the bigger theme of this show: how small businesses can win by being more personal, more expert, and more connected to their community. Lucas: And that's why I think this model could work for other local businesses. Not just hardware stores, but any shop that sells things people need to learn to use. Imagine a camera store that teaches photography, a kitchen store that teaches knife skills, or a garden center that runs a composting workshop. Luna: So the key is to identify the 'knowledge gap' that your product creates, and then fill it with a class. That's a brilliant insight. But what about the economics? Is twenty-five dollars a class actually sustainable for the store? Lucas: Maria says the classes generate about twelve hundred dollars a month in direct revenue, which covers the instructors and the materials. But the real value is in the sales bump. She tracks it by giving a ten percent discount on any tools purchased within a week of the class, and she says about eighty percent of attendees redeem it. Luna: That's a strong signal. And it also builds trust. When you've spent two hours in a class, you're not going to go to the big-box store for your next purchase, because you know the people at Waverly actually care about making sure you do it right. Lucas: Exactly. And they've also started a loyalty program that's tied to the workshops. Attend five classes and you get a free tool kit. It's a simple idea, but it gives people a reason to keep coming back and to feel like they're part of something. Luna: And I bet that tool kit becomes a conversation starter. 'Oh, I got this from Waverly' – it's free word of mouth advertising. Lucas: Right. And the story doesn't stop there. Maria has also started bringing workshops into the community – she does a 'DIY for Renters' class at the local library, and she's partnered with a neighborhood association to offer a 'Home Maintenance 101' series. That gets the store's name out there even more. Luna: So she's not just waiting for people to come to her. She's taking the expertise to them, which is a really proactive way to build a customer base. Lucas: And it's working. In a time when independent hardware stores are struggling, Waverly has actually grown. They added two employees last year, and they're now considering a second location. And the big-box stores? They can't easily copy this, because it requires a level of community trust and personal connection that's hard to scale. Luna: I think that's the core of it. Big-box stores can match prices, but they can't match a relationship. And in a world where we're increasingly starved for genuine connection, that's a powerful advantage. Lucas: Yeah, it's a reminder that the most valuable thing a small business can offer is often not a product, but an experience and a sense of belonging. And that's something you can't order online. Luna: So what's the one thing you'd tell a small business owner listening who wants to try something like this? Lucas: Start small. Pick one topic you're genuinely good at, find someone who can teach it, and just put a chalkboard outside. You don't need a fancy studio or a marketing budget. Maria started with that single chalkboard and a volunteer, and it grew from there. The first class might only have three people, but those three people will tell their friends. Luna: That's a good note to end on. Waverly Hardware is a great example of how a small business can turn its own expertise into a community asset – and a competitive advantage. Thanks for listening, and we'll see you next time.