that they have driven other lumber
hard to measure. We haven't lost
companies from the retail end of
anything in new construction, but
Special to the Jewish News
business, and those people are trying
maybe in repairs and renovation."
to enter our field. But we have 50
Because a large part of Margolin's
hen Steve Margolin
years
of experience. We are the
business is new construction, the
lived in Atlanta, he
largest
one-location lumber yard."
contractors
come
to
us,
not
Home
and his foursome
To
Bittker,
Home Depot has also
Depot.
Why?
Because
of
our
service
would occasionally
provided
an
unexpected
bonus.
and
our
inventory.
We
give
them
a
find themselves following Home
"They
have
drawn
away
the small
quick turnaround. They
contractors,
and
we
don't
want to
don't have to wait in a long
fool
with.
them,"
he
said.
line to check out."
Not every independent lumber
But Margolin admits his
dealer agrees with Bittker. One
business may yet feel the
Oakland County independent, who
Bob and Phil Kaplan of Northside
"effects of Home Depot if
Hardware: Offering more service.
asked that his name not be used,
and when there is a slow-
said Home Depot has "positioned
down in the economy and
themselves everywhere. They really
So how does Kaplan's business
money is tighter.
research the locations for their sites,
Northside Hardware in
meet the Home Depot challenge?
and
they have the deep pockets to
Wayne is on Wayne Road
"We carry plumbing parts, tools,
buy
property no one else can afford.
electrical fittings and parts. We have
just north of Michigan
"Consumers
shop at Home
a
wide
selection.
We
stock
old
stuff
Avenue. There are two
Depot,
see
some
bargains, and think
and
slow
stuff.
Most
people
looking
Home
Depot
stores
nearby,
Steve Margolin: Home Depot "doesn't help us."
everything in the store is priced low,
one on Ford Road and I-
for heat registers for their homes live
but that's not true. In places like
in older houses. We carry heat regis-
275, the other on Michigan
Atlanta
and Florida, where Home
ters made in the 1940s and 1950s.
Avenue and Beech-Daly in Inkster.
Depot founder Bernie Marcus on
Depot
has
already driven out all the
"We have easy access. You don't
Northside is smack in the middle.
the golf greens.
small
entrepreneurs
and captured
have to park in a giant lot and walk
"We're the original Home Depot,"
But in Detroit, Margolin's whole-
the
market,
their
prices
then get 1 5-
a mile to the store. And we offer a
said Phil Kaplan, owner of Northside.
sale plumbing business is a leader,
20
percent
higher.
"We've
had
this
location
for
43
years,
much
higher
level
of
service.
We
not a follower. Now one of the vice
The choice now for consumers is
and we've expanded. Our business is
have what the customer wants, and
presidents of Linwood Pipe and
to support the small independents
someone
to
get
it
for
him.
You
retail
and
commercial.
Supply, he is the third generation to
before they're gone. We've become the
come in, get helped and get out,"
"When Home Depot first
be active in the Margolin and
convenience store, the 7-11, of the
opened, it had an impact on us. It
said Kaplan.
Kurzmann family-owned operation.
industry All you want is a box of
"Home Depot carries one line of
wasn't critical, although it was sig-
And like many other Jewish-
nails? Then come here for quicker ser-
machine tools. We carry three or
nificant. Now we are just attempt-
owned independents, Linwood Pipe
vice.
The only way an independent
ing to co-exist with them."
four different lines.
has faced the threat of competition
can survive is to fill a niche," he said.
"You
don't
need
a
MBA
to
figure
But
Kaplan
has
a
powerful
from the Home Depot.
For the independents, new com-
it out. You just have to find and sell
weapon in his arsenal. Northside is
Ironically, although Marcus of
petition is poised to enter the
merchandise
at
a
reasonable
a
member
of
America's
largest
hard-
Home Depot is Jewish, many of the
Detroit market. Lowe's Home
markup. That doesn't mean you
ware cooperative, the True Value
'mom and pop" hardware stores
Improvement Centers, Home
have to give it away or use it as a
chain. With the buying power gen-
that they have driven out of busi-
Depot's most formidable national
erated by more than 6,000 True
loss leader," said Kaplan.
ness across the country were small,
competitor, offers installation on
David Bittker, treasurer of
Value stores in 50 states, member
family-owned Jewish businesses,
most of the products it sells. It is
National Lumber Company in
stores like Kaplan's are able to match
some having thrived for as long as
expected
to soon become a key play-
Warren, takes a different approach.
prices with Home Depot on many
50 years before Home Depot came
er
in
the
metro
market. Fl
"Home
Depot
handles
hardwood
critical items.
to their neighborhood.
and
paint
and
electrical.
That's
not
Said
Kaplan,
"Home
Depots
are
Linwood Pipe has been a wholesale
our business. We have a niche.
high-volume stores. We found that
plumbing supply operation since
We're
a specialty operation. Ninety-
in
order
to
do
better
than
them,
we
1926, operating out of 14 acres on
five percent of our sales are to pro-
have to carry a lot more items."
Fenkell, off the Lodge Expressway and
fessional builders and contractors,
The hardware association claims
Oakman Boulevard in Detroit They
the Pultes of this area.
that a well-stocked hardware store has
sell fixtures, and the vast majority of
"We sell rough-dimension lum-
a 125,000 SKU (stock keeping units)
their customers are plumbers and
ber
only, the kind you use to frame
inventory.
Home
Depot,
by
their
own
mechanical contractors.
new
houses, apartments or condos.
figure,
has
only
55,000
per
store.
Home Depot "doesn't help us,"
That
also includes trusses. We have
"By
our
count,
they
have
two
to
said Margolin, who also serves as
a
large
yard and delivery operation.
two-and-a-half
times
the
employees
president of Hillel Day School of
Home
Depot
is not a competitor.
we
do,
but
only
do
eight
to
10
times
Metropolitan Detroit. "Although
"But," continued Bittker, "how
as much business as us. We have, per
Home Depot's sales are mostly
David Bittker: "We have a niche."
we have been affected by them is
dollar sale, a lot more employees."
retail, it still impacts us. But it is

ALAN ABRAMS

VI

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,

4/30
1999

74 Detroit Jewish News