The latest National Hardware and Paint Association (NHPA) Cost of Doing Business Annual Benchmarking Study (based on 1,000+ independent retailers) offers one clear takeaway:

Profitability isn’t about size, it’s about discipline, execution, and smart decisions.

Numbers are sometimes scary, but they tell a story. Here are the big-picture insights that matter most for hardware stores and any small business.

This LINK will get you to the entire 38-page study.

1. The Profit Gap Is REAL (And Its Controllable)

• Typical hardware store profit: ~4.7%
• High-profit stores: ~9.8% (more than double)

The difference isn’t luck… it’s how you manage: Pricing | Expenses | Inventory | People

Takeaway: Small improvements across multiple areas create massive bottom-line impact.

2. The 3 Levers of Profitability

The study highlights a simple but powerful model:

1. Profit Margin → Pricing, cost of goods, expense control
2. Asset Turnover → How efficiently you use inventory and assets
3. Financial Leverage → How you structure your capital

Together, these drive return on net worth (the ultimate scorecard).

Takeaway: High-profit stores don’t just sell more; they run tighter operations.

Read the full article here

From the CEO:

Get Out of the Store (Your Next Customer Isn't in Aisle 3)️

Last month, I wrote about how hardware stores used to be the center of connection in a community. Kind of like our association is for hardware stores.

People came in for a part, but they stayed for the conversation. Just like my Dad did. That’s changed.

The reality today is that kind of connection doesn’t just happen anymore. You have to go create it. And that leads to a simple, but important, question for every hardware store owner:

How often are you getting out of your store and into your community?

Because here’s the truth: Your next customer probably isn’t walking down your aisle right now.

• They’re at a ballgame
• At a chamber event
• At a school function
• At a fundraiser
• At the gym
• At a fair or festival

And if you’re not there, someone else is.

The Stores That Win Today

The hardware stores that continue to grow aren’t just good at inventory, pricing, or location. You are all good at that.

They are good at being known. They are visible. They are involved. They are connected. They don’t just wait for business to come to them. They go where the business already is.

So What Does That Look Like?

Let me offer a few simple, practical ways to get started. Nothing complicated, just intentional.

1. Show up where your customers already are

If your community is gathering somewhere, that’s where you should be. You don’t need a booth. You don’t need a speech. You just need to be present. And a branded shirt!

2. Be part of the Chamber—not just a member.

Read the full article here

We all need Mrs. McConnell

by Pamela Thompson, Accountant, MHA

Independent hardware stores have one major advantage that big box retailers can never fully duplicate: personal service. And one of the simplest ways to increase both customer loyalty and sales is by asking better questions.

When I lived in Colorado, I regularly shopped at McConnell’s True Value. What stood out immediately was how Mrs. McConnell greeted customers at the door with one simple question: “How can we help you with your project today?”

Not “Can I help you?”

Not “What are you looking for?”

But specifically: “Tell me about your project.”

That open-ended question changed everything.

Read the full article here

As many of you know, one of the important roles of Midwest Hardware Association is to serve as a voice for our members — not just in accounting, tax, planning, advisory services, and operational support, but also in advocacy and awareness around the issues impacting independent businesses every day.

That’s why we are excited to announce a new partnership with Wisconsin Manufacturers & Commerce (WMC). You will see some resources at the end of the article that may be of value to you and your business.

For those unfamiliar with WMC, they are the largest and most influential business association in Wisconsin, serving as the state chamber of commerce, state manufacturers’ association, and state safety council. Since 1911, WMC has worked to make Wisconsin a great place to do business, like others make their states great, representing nearly 4,000 member companies across all sectors of the economy.

While MHA members operate across multiple states, many of the workforce, economic, regulatory, tax, and small business challenges being discussed in Wisconsin are the same challenges businesses are facing nationwide. Through this partnership, we hope to stay better informed, connected, and engaged on issues that matter to independent retailers and small business owners.

Read the full article here

"I must say, I have worked with other accounting organizations and you guys are second to none. The staff have always gone over and above to help whenever needed.

A big Thank You to one and all!"

-John A.



Scam calls are common and not preventable and it's important to know what is legit and what is not. Below you will find some helpful information for preventing payment fraud and protecting your business.

Processors will never call the merchant directly unless they requested a callback or the merchant gave them permission. Chargebacks and other important info are communicated by email or snail mail. If your processor needs information or has concerns, the merchant will receive a call from MHA (Tracy Williams or Carley Phillips).

Scam callers often pretend to be your processor or account manager. They may provide generic information, offering just enough to gain their trust. Though they may state they know what you are paying or claim to have specific account information, this is only a con they use to convince you to send them statements or account information. Many times, these are from unreputable processors trying to make a sale.

Watch out for these red flags from external processors:

Read the full article here