Monthly Hours Saved
Return on Investment
“Changing paper price labels is an employee’s least favourite task but it’s very important to our business.”
– Robert Heuser, Owner at Heuser Ace Hardware
The client and the context
Results and Benefits
- Ability to capture margins 100% of the time
- Rapid ROI
- Operational efficiency
- Enhanced customer experience
- Danavation service
Ace Hardware Corporation is an American hardware retailers’ cooperative. Based in the United States, the company is proud to be the world’s largest hardware retailer cooperative, as well as being the largest non-grocery American retail cooperative. As of 2019, Ace Hardware boasts 5,200 locations in 60 countries. In addition to retail locations throughout the world, Ace Hardware Corporation operates 17 distribution centres in the United States, and additional distribution facilities in China, Panama and United Arab Emirates.
Robert Heuser is the General Manager of Heuser Ace Hardware in Hardeeville, South Carolina. Heuser Ace Hardware was outfitted with Danavation’s Digital Smart Label™ system in September 2022.
Heuser Family at Heuser Ace Hardware
“You pick up the phone when we call you. I’d much rather work with folks that want to make sure that it all works and that we’re successful than a giant corporation that couldn’t care less who Heuser Ace Hardware is. That’s the biggest aspect for somebody like myself.”
With approximately 800 weekly price changes totalling to between 30-40 hours of labour, updating prices was a monumental task. So much so that Heuser Ace Hardware was unable to fully utilize their pricing software as it would result in additional price changes; meaning that potential revenue was being left on the table.
Rapid Return on Investment
With the cost of labor going up, coupled with the cost of inflation, Heuser Ace Hardware’s decision to go digital was prefaced with a detailed internal ROI. When asked about the cost by district managers, Robert had this to say about our system:
“I said, ‘Guys, if you had somebody apply at your store tomorrow and say, ‘I will work for 10 years,’ and just do all of your price changes, sale tags, and make sure that all your pricing is 100% accurate, that’s a full-time employee, right?’ They said, ‘Yeah, that’s about 40 hours a week. 30-40, somewhere in that ballpark.’ I said, ‘Sure, perfect. Right. And he’s going to work for 10 years, but you only actually have to pay him for 4 years, and then he works for free. Wouldn’t you do it?’ And that’s what it is. It’s about a four year payback period, then we’re in great shape. But in the meantime, that employee never asks for a pay raise, never takes a sick day, never takes vacation, never calls in an HR issue.”
*The return on investment is calculated by adding the total annual costs associated with updating pricing manually and subtracting the total investment for the Digital Smart Label™ solution. The total annual costs include the cost of the paper label and labour costs associated with updating paper labels on the shelf.