Country Farm & Home RETY Book

The Wallace Hardware2017 PRO Retailer of the Year and Paul L. Cosgrave Nominee 1

INTRODUCTIONWelcome to Country Farm and Home, located near beautiful DaleHollow Lake in Byrdstown, Tennessee. It is an honor to be selectedas the Wallace Hardware 2017 PRO Retailer of the Year and theirnominee for the 2018 Paul L. Cosgrave Memorial Award. AtCountry Farm and Home, we not only strive to achieve customersatisfaction, we guarantee it! Our partnership with WallaceHardware and the PRO Group help make this promise possible.Country Farm and Home is a locally owned, family operated farm,home, building and garden center. We are proud to provide servicesand product to our community, including animal feed and healthcare products, appliances, farm and garden supplies, landscapingplants and soils, lumber and building materials, outdoor grills andsupplies, outdoor power equipment, utility trailers, and much more!Utilizing 38 years of experience and knowledge, Country Farm andHome is positioned to offer competitive pricing with unsurpassedcustomer service. We strive to be friendly and courteous to all ofour customers and visitors and service and warranty all that we sell!We hope you enjoy learning more about all of us at Country Farmand Home.Sincerely,Kenneth & John ScottOwners/Managers2

Dale Hollow Lake consists of 620 miles of shoreline and spreads over much of the THE SETTINGwestern end of the county providing area residents with both electricity and recreation. Located along Tennessee’s northern border with Kentucky, Pickett County Courthouse, located in Byrdstown, Tennessee Byrdstown and Pickett County lies in the picturesque Cumberland Plateau region of upper Middle Tennessee. Officially incorporated in 1917, Byrdstown, Tennessee, serves as the county seat for Pickett County. The town is named for Colonel Robert K. Byrd, a state senator whose district included the new county, established in 1879. Lem Wright and Howell L. Pickett, legislators from Wilson County, led the move to organize Pickett County in 1878. The county was created from sections of Overton and Fentress Counties. Pickett County encompasses 240 square miles with the Obey and Wolf Rivers flowing through the western half of the county. Though hilly, the landscape has supported farming with corn, wheat, oats, grass, and livestock as the primary products. In addition to farming, many Pickett County residents were employed in the logging-rafting industry from the 1870s to the 1930s. Pickett County farmers harvested trees from remote sections of the county, hauled them to the riverbank with mules or oxen, then floated them downstream to larger river towns. In the early twentieth century, timber companies also acquired large tracts of land to clear-cut forests and ship the trees to sawmills in Tennessee and Kentucky. Rafting companies employed dozens of men from Pickett County who rafted the logs along the Cumberland River to Nashville where the lumber was finally processed. Steamboats on the Cumberland River allowed towns as far east as Byrdstown to transport goods to and from larger markets to the west. In 1943, Pickett County lost most of its best farmland, as well as a fourth of its population, when the U.S. Army Corps of Engineers dammed the Obey River, creating the Dale Hollow Reservoir. Dale Hollow Lake spreads over much of the western end of the county and provides area residents with both electricity and recreation. The dam put an end to the periodic floods that 3

Farmers used mules to haul logs to the riverbank. frequently devastated the Upper Cumberland region but also put an end to rafting and steamboat transportation. Log floating along the Obey River. With the end of the rafting and steamboat eras, Pickett County lost a valuable transportation link to the rest of Middle Tennessee until state highway construction Steamboats on the Cumberland River transported goods. provided more efficient routes to transport goods to and from the Upper Cumberland region. New highways, along with the emergence of the trucking industry after World4 War I, the large female work force, absence of labor unions, and low-cost electricity provided by Dale Hollow Dam, led to the construction of several clothing factories such as OshKosh B’Gosh Children’s Apparel as well as Dale Hollow Apparel. Along with Dale Hollow Lake, Pickett County’s scenic beauty may also be enjoyed at Pickett Civilian Conservation Corps Memorial State Park. The park is located in eastern Pickett County where it adjoins the Big South Fork National Recreation Area. The park is located on 19,200 acres of wilderness and includes caves, natural bridges, and other rock formations. The park was developed by the Civilian Conservation Corps (CCC) between 1934 and 1942 on about 12,000 acres of land donated to the State of Tennessee by the Stearns Coal and Lumber Company. Locally quarried sandstone was used in constructing most of the buildings. The original park facilities are listed on the National Register of Historic Places. In 2015, the International Dark-Sky Association classified Pickett State Park as a Dark Sky Park. These are areas generally free of artificial light pollution, making them optimal places for stargazing. Pickett County’s most famous son is Cordell Hull, who served his country as a U.S. Congressman, a U.S. Senator, and Secretary of State under President Franklin D. Roosevelt. Born in a small log cabin in Pickett County, Hull initiated the founding of the United Nations and received the Nobel Peace Prize in 1945. The Cordell Hull Birthplace and Museum is located near Byrdstown. As of the 2000 census, there were 903 people, 395 households, and 233 families residing in Byrdstown. The population density was 587.5 people per square mile. There were 460 housing units at an average density of 299.3 per square mile. The racial makeup of the town was 98.1 percent White, 0.22 percent African American, 0.44 percent Native American, and 1.22 percent from two or more races. Hispanic or Latino of any race was 0.55 percent of the population. There were 395 households out of which 24.1 percent had children under the age of 18 living with them, 39.7 percent were married couples living together, 14.9 percent had a female householder with no husband present, and

41.0 percent were non-families. 37.7 percent of all households were made upof individuals and 18.7 percent had someone living alone who was 65 yearsof age or older. The average household size was 2.11 and the average familysize was 2.80.In the town, the population was spread out with 19.8 percent under the ageof 18, 9.7 percent from 18 to 24, 22.4 percent from 25 to 44, 23.9 percentfrom 45 to 64, and 24.1 percent who were 65 years of age or older. Themedian age was 43 years. For every 100 females there were 81.0 males. Forevery 100 females age 18 and over, there were 75.7 males.The median annual income for a household in the town was $19,375, andthe median income for a family was $25,938. Males had a median income of$23,281 versus $16,389 for females. The per capita income for the town was$14,462. About 19.2 percent of families and 28.1 percent of the populationwere below the poverty line, including 40.4 percent of those under age 18and 32.5 percent of those 65 or over. *Historical information provided by Anne-Leslie Owens, Middle Tennessee State University. Cordell Hull The Cordell Hull Birthplace, near Byrdstown, is a popluar tourist destination.The hydroelectric generators of Dale Hollow Dam are used to supply power Developed by the Civilian Conservation Corps, Pickett State Park is located onto the surrounding countryside. 19,200 acres of wilderness and includes caves, natural bridges, and other rock formations. 5

THE STORE HISTORYThe story of Country Farm & Home began in 1980 when Kenneth andTrish Scott purchased a local feed store in their hometown of Byrdstown,Tennessee, called Pickett Farm Supply. It was a small business with onlythree additional employees, one being Kenneth’s dad, Gilbert, who helpedmanage the store. Space was limited. They sold feed out of the back oftrailers and made the best use of their available square footage. In 1991,a larger building became available across the street from their currentlocation and they decided to move their business. Having a larger spacemade the decision to expand an easy one. They added lines to their feedbusiness such as landscaping, mulch, flowers, and plants. The Scotts addedon to their building and also built a greenhouse.Business was good for Pickett Farm Supply until the economic recessionof 2008 hit the local economy of Byrdstown. The Scotts thought seriouslyabout closing their doors, but instead, decided to regroup. They talked totheir banker and developed a plan to expand and diversify their business.In 2010, the local hardware store, Crouch’s Hardware, came up for sale andKenneth and Trish decided to purchase the business. They merged thestore with their existing business, which now meant they had hardware tooffer their customers, along with farm supply and lawn & garden. They alsobecame a Stihl dealer that same year.The Scotts’ son, John, had been an intricate part of the family businesssince the beginning. In 2013, the builders supply business in town, PickettBuilders Supply, became available for purchase and John decided to buy thebusiness. Tommy Fitzgerald, a local businessman and owner of the buildingthat housed Pickett Builders Supply, became interested in the Scotts’businesses and offered to purchase them. The Scotts were not looking tosell, but could recognize a great opportunity when presented to them. Mr.Fitzgerald and the Scotts decided to go into business together and the ideafor Country Farm & Home was born.When the land directly across the street from Pickett Farm Supplybecame available for purchase, Tommy bought it and began the process ofconstructing the buildings that house the business today. In January 2015,6

they merged the two businesses and moved into their new location. PicketFarm Supply and Pickett Builders Supply became Country Farm & Home.Over the last three years, Country Farm & Home has experiencedtremendous growth. They have added a full line of outdoor buildings andutility trailers to their inventory. A second location is currently underconstruction 30 miles south in Cookeville, Tennessee that is scheduledto open in June of this year. Plans are underway for a third location inMonticello, Kentucky, located 30 miles to the north that will open in the fall,and property has already been purchased for a fourth location in Crossville,Tennessee, located 60 miles to the south. This location will open in 2019.The future is nothing but bright for Country Farm & Home. Through hardwork, dedication, and a commitment to customer satisfaction, they havepositioned themselves to be the dominant provider of farm and buildingsupplies, lawn & garden, and hardware for the communities they serve. 7

THE WALLACE & PRO RELATIONSHIP John Scott poses for a photo with Doyle Wallace and Richard Snowden after being announced as the 2017 Wallace Hardware Retailer of the Year. The relationship among Country Farm & Home, Wallace Hardwareand the PRO Group originated in 1996 when they became a Farm Kennth Scott is a current member of the Wallace Hardware Dealer AdvisoryMart store and began purchasing hardware from Wallace Hardware Board. He is pictured here discussing strategy at last year’s meeting.Company. They were in need of a supplier who could best supply theirneeds and were pleased to discover that Wallace Hardware offered goodpricing and great service while operating under the same basic Christianprinciples as themselves. Their salesperson since the beginning of therelationship, John Decker, is responsible for keeping them number onein their marketplace and helped tremendously during their move in 2015from across the street to their new facility. He continues to be a big assetduring their planning and construction phases of their new locations.“Everyone at Wallace Hardware has proven to be insightful and invaluableat keeping us ahead of our competition,” said John Scott. “They constantlyprovide merchandising and marketing strategies that are meaningfuland profitable to our business.” This unmatched support has resulted inover 70 percent of their hardware purchases being made with WallaceHardware. Regarding the support he receives from Wallace, KennethScott said, “Wallace has supported us through the tough times as well asthe good times. The personalities of everyone at Wallace are more thanpersonal. They are friends as well as business partners. We are treatedlike family.” In 2011, shortly after acquiring Crouches Hardware, Country Farm& Home added the PRO banner to their business. They are one of a fewdealers to participate in both the Farm Mart and PRO Hardware retailprograms. Being a PRO and Farm Mart Dealer definitely benefits theirbusiness. Their circular programs help bring in new customers andthey plan to expand their program over the next year as they expandto additional locations. Kenneth Scott said, “Not a day goes by thata customer doesn’t show up with a circular in their hand looking forproducts being advertised.” The Scotts have been to almost every Wallace dealer market since1996, rarely missing one. They have implemented the Wallace HardwarePartners for Profit business plan, utilizing Partners Profit Boosters,8

Wallace Specials, Show Buys, and the Wallace Road Shows. They The Scott family enjoys an evening at Dolly Parton’s Smoky Mountainconsistently use PRO Group tools such as the flex circular, the Bargain of Adventure Dinner and Show during the 2017 fall dealer market.the Month, Statement Stuffers, mobile and texting coupon specials, andend caps with promotional trim kits. Through hard work, long hours, association with great employees, andguidance provided by Wallace Hardware and the PRO Group, CountryFarm & Home continues to grow. They specialize in animal feed andhealth care products, appliances, farm and garden supplies, landscapingplants and soils, lumber and building materials, outdoor grills andsupplies, outdoor power equipment, utility trailers, and much more. Theycontribute a large part of their success to abiding by the six key elementsof the PRO Group: 1. Identification 2. Store Modernization 3. Inventory Management 4. Group Purchasing Power 5. Advertising 6. Value-Added ServicesTrish and Kenneth Scott, along with their grandchildren, pose for a photo with Donna Kenneth Scott listens to Richard Snowden as he takes a tour of theMcPherson and Eddie Flynn after winning a Big 5 Prize at the 2016 fall dealer market. Wallace Hardware facilities. 9

IDENTIFICATIONTo identify the business as a PRO and Farm Mart store, Country Farm &Home has placed an illuminated 3x6 PRO sign and Farm Mart sign nearthe road. There is also an illuminated 4x8 LCD screen. There are 12 clearlymarked endcap aisle identification signs emblazoned with the PRO logoand 13 endcap aisle identification signs with the Farm Mart logo.10

STORE MODERNIZATIONThe 26,000 square foot, modern showroom is brightly lit andhighlighted by PRO and Farm Mart decor items. They identify theirdepartments using PRO signage as well as using the PRO color scheme.They do the same for the Farm Mart side of the business. Twenty-fiveend caps are used throughout the store to feature special purchases,seasonal items, and closeouts. The end caps are also used to featurecircular merchandise, “Values of the Month” and “Bargains of theMonth” during the sales periods. 11

INVENTORY MANAGEMENT Country Farm & Home is an advocate of the PRO designed inventory control system. The retail merchandising list was used as a basis for initially stocking the store and is reviewed monthly to ensure that the proper merchandise is being stocked. Bin labels, scheduled purchasing, price stickers, price updates and purchase reports are tools that have been successfully integrated into the firm’s inventory control system. They utilize the Epicor inventory management system as their point- of-sale software and have it fully integrated into all facets of their operation. From special orders, to payables and receivables, to the completion of a customer’s transaction, the computer system is a vital part of their daily business. Country Farm & Home either stocks or can special order a wide assortment of hardware, building materials, lawn & garden supplies, appliances, paint, lumber and more. Whether a tractor implement or a socket wrench is needed, they’ve got it covered. Country Farm & Home proudly provides everything needed to enjoy time in the garden. From quality plants and flowers to mulch and landscape rocks, they stock what is needed. As their hometown certified Whirlpool dealer, Yates carries a full line of home, kitchen and laundry room appliances at competitive prices. They stock a complete line of both treated and untreated framing lumber, architectural supplies and all the materials required to complete the interior of a structure. Country Farm & Home offers the supplies needed to get any job done.12

GROUP PURCHASING POWERBeing a member of the PRO Group provides Country Farm & Homethe opportunity to take advantage of their $5.25 billion in combinedpurchasing power. This allows them to purchase 70 percent of all theirhardware vendor buys from key suppliers. Boss, Coleman Cable, DAP,Ames/True Temper, ADS, Genova, Plumb Pak, Apex Tool Group,Irwin, and DeWalt are just a few of the major brands they carry.Country Farm & Home uses all of the PRO Group’s low cost purchasingprograms: volume purchasing, drop ships, Buyers Bargains, circularand end cap specials, dealer show bargains, etc. The merchandiseis then competitively priced and attractively displayed, encouragingconsumer purchases. 13

ADVERTISINGCountry Farm & Home has competition that consists of a Farmers’Co-op, Tractor Supply, Lowe’s, Potter’s, and other independent dealers,all within a 50 mile radius of their location. In order to survive inthis competitive market, they must promote products and serviceseffectively. Catering to the needs of local home owners is their marketniche. Their strategy is to lateralize this strength to the serious do-it-yourselfer and handyman market through the PRO Group’s circularprogram.Country Farm & Home takes advantage of the PRO Group’s marketingtools and systems to keep both store traffic and profits growing. In2017, they participated in eight circulars, distributing 20,000 pieces.All together, the Statement Stuffers, the “Bargain of the Month”program, mobile texting coupon specials, and the circular program letthe community know they will experience greatvalue and service at Country Farm & Home.In addition to the Statement Stuffers andcirculars, Country Farm & Home utilizes their$70,000 advertising budget in a wide array ofadvertising media to encourage the communityto visit their store. Here is a list of a fewexamples: • Local Newspapers • Radio • Prizes and other Give-Aways • Contractor & Customer Appreciation Days • Tool Demonstration Days • Grill Demonstration Days • Specialty Advertising, including: • Hats • Pens & Pencils • Calendars • T-shirts14

The building center sales team consists of (L to R): John Scott, Barb Mitchell, Luke VALUE-ADDED SERVICESGarrett, Brad Bowden, and Ricky Marise. Service is one of the key areas in which Country Farm & Home excels.The farm center sales team consists of (L to R): Kenneth Scott, Jim Brannum, Elijah They distinguish themselves from their competitors and continue toCatron, Jessica Wilson, Fernando Rodriguez, and Daniel Huddleston. grow their business by providing their customers with major brands and product lines, knowledgeable sales people, special ordering, andJason Detherage, Cade Pritchett, Jesus Trish Scott and Brenda Murphy manage other valuable services that go above and beyond what is expected.Rodriguez, and Gary Cross are there to the office.help with lumber. An employee who is gaining product knowledge and customer respect for that knowledge is a great asset to any business. The sales crew at the building center consists of John Scott, Barb Mitchell, Luke Garrett, Brad Bowden, and Ricky Marise. The sales crew at the farm center consists of Kenneth Scott, Jim Brannum, Elijah Catron, Jessica Wilson, Fernando Rodriguez, and Daniel Huddleston. Jason Detherage, Cade Pritchett, Jesus Rodriguez, and Gary Cross make up the lumber yard crew and Jared Reagan, Daniel Rodrigquez, Jose Rodriguez, Doug Parrigin, Candido Rodriguez, Tanner Davidson, and Dawson Abbott round out the rest of the outside personnel. Trish Scott and Brenda Murphy keep the office running smoothly. All the staff at Country Farm & Home pride themselves in knowing their product lines and their applications. They have found that growth in sales performance goes hand-in-hand with their growth in product knowledge and service provided to their customers. Country Farm & Home is a member of the North American Retail Hardware Association (NRHA) through Wallace Hardware. This allows them to use the collected information that is available through the NRHA website. Past articles of Hardware Retailing magazine are available when researching a particular subject and the “Advanced Course in Hardware Retailing” is available to all their employees. This includes testing and grading. When selling lines as diverse as hammers and shrubs, they take pride in knowing they’re the PRO’s. Every day, their employees seek to keep Country Farm & Home a step above their competition. They offer special ordering of products, storage buildings, utility trailers, appliances, farm implements, landscaping supplies, lumber and building supplies, custom mixing of paint, and much more! No one in the Byrdstown area has a better selection than Country Farm & Home. And they deliver! 15

As the local authorized Whirlpool dealer, Country Farm & Home stocks a variety of home appliances to fit their customers’ needs.Key cutting is just one of the many A large paint selection and custom Country Farm & Home is an authorized Stihl A large selection of grills is also offered as avalue-added services offered. mixing is also offered as a value- added service. Dealer. value-added service.Whether building a home or a vegetable garden, Country Farm & Home Jason Detherage helps with a load of paneling for a loyal customer.offers the supplies needed to get the job done.16

COMMUNITY OUTREACHSpend the day at Country Farm & Home and it will become apparentto anyone just how connected they are to their customers and A knowledgeable staff ensures Country Santa visited Country Farm & Home incommunity. Almost everyone who enters is greeted by a friendly Farm & Home stays ahead of their December to find out what the children“hello” and called by their name. The communities of Byrdstown competition. of Byrdstown wanted for Christmas.and the surrounding areas know they can count on Country Farm &Home for all their DIY needs, lumber, building, and farm supplies. Live entertainment is always part of aThis loyalty is not taken for granted. They give back each year by Customer Appreciation Day at Countrysupporting their local high school and community sports teams, Farm & Home.fire and police departments, and other civic organizations. Theyhold a customer appreciation day each fall where they feed their 17customers free food, entertain them with live music, and treat them toa spectacular sale day. In the spring, they hold an annual contractorday where the latest innovations in construction are shared along witha look at some new products. They also hold numerous cookoutsthroughout the year where their many grill vendors show off theirproducts. Here is a list of some of their local organizations they havesponsored or supported over the years:• Little League Sports• Baseball• Softball• T-ball• United Way• Chamber of Commerce• Local High School Athletics• Boy Scouts of America• Girl Scouts• Byrdstown Fire Department• Byrdstown Police Department• Pickett County FFA• Youth Rodeo competitors who compete Friendly smiles and a willingness to serve are key ingredients to theon the national circuit growth and success of Country Farm & Home.

FINANCIALS Wallace Hardware Purchase History Report, 2017 Country Farm & Home Income Statement, 2017Country Farm & Home is a store that is profitable not only tothemselves, but to their distributor as well. This presentationdemonstrates their profitability and good business acumen. To theright is a condensed purchase history report on the store for 2017.A quick glance reveals that their total out-of-warehouse purchasesshipped were $391,580. Our service level to them was 90.05 percenton hardware sales and 100 percent on LBM sales. Factoring infactory direct purchases, the total amount of purchases from WallaceHardware totals $1,213,365. The average line value on hardware saleswas $60.69. There were 52 deliveries made for an average of $6,858 perstop.To the right is a condensed income statement from Country Farmand Home for 2017. It shows that their total sales for the year were$10,952,167. The value of their inventory on hand is $4,340,284. Theirsales to inventory ratio is 2.52.As one can see, Country Farm & Home is a profitable and growingbusiness with a bright future. They are an extremely valuable asset toWallace Hardware, to the PRO Group, to their communities, and totheir customers.18

NOMINATING LETTER FOR THE PAUL L. COSGRAVE AWARD 19

RETAILER OF THE YEAR EVALUATION20

RETAILER OF THE YEAR EVALUATION 21

RETAILER OF THE YEAR EVALUATION22

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