Going up against the big box stores

Monticello home center businesses offer advice

By LISA CUTRONI

MONTICELLO, NY— It has been two years since The Home Depot in Monticello has opened their doors, two years that local businesses have strived to keep their heads above water. Now, with the opening of an additional Home Depot store in Honesdale, PA, four business owners extend advice to those Pennsylvania businesses that may feel financial pressure.

The Home Depot is the world’s largest home improvement retailer, and the second-largest retailer in the United States.

Monticello Trading Post

Cindy Deitchman doesn’t know how long the Monticello Trading Post will survive the loss of revenue stemming from the opening of The Home Depot two years ago.

“It’s like two hurricanes: first it’s The Home Depot moving in, then the economy crashing down,” Deitchman said.

Deitchman, the proprietor of the Monticello Trading Post, located at 116 Broadway in Monticello, a 45 year-old, family-run ACE hardware home center with plumbing, electrical and hardware merchandise, says impeccable customer service is keeping her business afloat.

Deitchman has had to make cutbacks of 10 percent in hours for her 15 full-time and 13 part-time employees. She has cut back on quantities of ordered products and has had to stop getting into “chancy” areas—ordering new merchandise.

“Home Depot cuts into not just my business but every business around here,” Deitchman said. “ Basically, because there is no population growth—and if there is, it’s not enough.

“As long as the politicians work for the small businesses, we will survive, if they work for the big businesses, we won’t,” Deitchman said.

Schmidt’s Wholesale Inc

Gary Schmidt, owner of Schmidt’s Wholesale Inc. in Monticello, hasn’t seen a significant decrease in revenue since The Home Depot’s opening in 2003. He says this stems from the difference in merchandise offered the two venues.

“I would say that we were not extremely happy [to see The Home Depot open], but we weren’t really concerned. They are a different kind of business,” Schmidt said.

Schmidt’s Wholesale has offered a variety of plumbing fixtures and supplies to contractors for the past 50 years, and employs over 50 people.

The only changes the wholesale company made was to focus more on their showroom appearance and to extend the hours for showroom browsing. Schmidt said the company would continue monitoring the situation and make the necessary changes as needed.

Like Deitchman, Schmidt also advises customer service.

“Give the best customer service you can, and watch pricing,” Schmidt said, “I know The Home Depot takes some of our business [away] but would they have gone to us or Home Depot in Middletown [before the Monticello store opened]?”

Bogner-Seitel Lumber Company

Janet Klein, manager of Bogner-Seitel, a lumber company specializing in contractor orders located on St. John’s Street in Monticello, says she hasn’t seen a decrease in company revenue.

“[We’ve] possibly lost some of the smaller customers, but not the contractors,” Klein said. Since the opening of The Home Depot, Klein has not changed the way the company is run.

“We have been as aggressive as always,” she said.

Although at the beginning of 2003, Klein was concerned.

“Yes, at the beginning I didn’t know what to expect. I wasn’t sure. But a lot of our prices on products are equal to theirs, or lower,” Klein said.

She also advises good customer service practices in order to keep customers coming back.

“It’s a time to be giving the best service you possibly can,” Klein said, “Our atmosphere is not hectic, it’s more of a one-on-one basis.”

Klein explained how one customer picked up a lumber load from their store with a rented Home Depot truck.

“I think competition is good. It keeps you on your toes,” Klein said.

Monticello Farm Home and Garden Showplace

Jim Boxberger Jr., proprietor of Monticello Farm Home and Garden Showplace, a garden center located on Route 17B in Monticello, says it’s more the weather and lack of customer service offered at The Home Depot that has allowed his business to retain revenue.

“The first year they opened, [we saw] negative effects, but now they’re positive. They [The Home Depot] started ticking people off and so they came back to where they are comfortable. Bottom line—take care of the customers and they’ll be back,” Boxberger said.

The store that has offered a variety of garden, farm, clothing and hardware merchandise since 1987 hasn’t seen a significant decrease in sales; however, they have shifted focus.

“We have cut down on our hardware assortment and expanded in clothing,” Boxberger said.

The loss of revenue is not solely from The Home Depot, Boxberger explained, but also has to do with the weather.

“We’re weather dependent. Since the seasons have been more normal this year, sales have increased,” he said.

Boxberger wasn’t altogether displeased to see The Home Depot.

“In fact, we were happy. We thought it would keep people local instead of going to Honesdale [PA] and Middletown,” he said.

Boxberger credits The Home Depot’s advertising tactics with drawing people away from local businesses.

“They have the means to advertise.” Boxberger said that there wasn’t an advertising means in the area that matched The Home Depot’s national coverage.

“When The Home Depot opens [in Honesdale] everyone is going to go there. They have a crack team of managers [that make everything run smoothly] but they cycle out. Wait, the store may not be there in five years,” Boxberger said.

Boxberger had one last piece of advice.

“Don’t give up the ship after six months. The customers will come back; Home Depot will tick them off.”