Koontz Hardware: Lessons From a Neighborhood Fixture
[image error]At the corner of Robertson and Santa Monica Boulevards in West Hollywood, coffee joint Java Detour just became the latest in a barrage of business casualties that predate the Great Recession. There are three other empty storefronts within a stone’s throw from the now defunct corner coffee shop.
So how is it that the neighboring Koontz Hardware, after three decades under its current management, has achieved a sort of landmark status in this fickle part of town?
The shop has earned a strong reputation (and Yelp! rating of four-and-a-half stars) by helping area residents fix their homes themselves, especially during a time when Do-It-Yourself projects, blogs and TV shows are all the rage.
“We solve your problems,” says general manager Dean Wilson, who, along with his brother, owner Russ Wilson, has run Koontz Hardware since taking it over 30 years ago.
They’ve weathered recessions, earthquakes and even arson since taking over the store from the Koontz family in the 1970’s. Yet despite it all, the brothers have managed to keep their staff on payroll – no layoffs. While the store took a hit during the Great Recession, Koontz kept its staff of 56 employees – including stalwart Herb, who turns 90 this year – in tact. “We have generations of loyal customers who have come to expect a certain level of service….I’ve seen what happens when you skimp on people,” says Dean.
[image error]In addition to its knowledgeable staff and reliable inventory, Koontz benefits from unique advantages that have helped keep its doors open year after year. For one, the owners don’t have to worry about rent; they own the building. Second, there’s additional cash flow from an unused third floor the Wilsons rent to Warner Bros., which helps to offset occasional dips in revenue. It also doesn’t hurt that the nearest Home Depot is five miles away, which, given Los Angeles traffic, could take up to an hour to reach.
Whether Dean’s decision to keep his staff full will translate into continued customer loyalty remains to be seen. A steady rise in the number of sales transactions since November seems to be turning into a trend, reinforcing the idea that taking one for the team is not just the right thing to do; it’s good business.
