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Golden anniversaries are rare in business, let alone one family celebrating 50 years in business at the same location.
That’s what the Richert family celebrated last Saturday when Richert Lumber ACE Hardware, 5055 Sunol Blvd. officially turned 50. Tom Richert founded the business on a shoestring in a 120-square-foot shack that is still on the property. He leased 9,000 square feet of land selling only redwood.
Tom had decided to go into the retail business and move to Pleasanton from Los Gatos because he was getting physically ill every Sunday when Monday loomed and his well-compensated job on Sand Hill Road in Palo Alto awaited.
He dug the trench for the electrical line and phone line himself and opened for business. His wife had just delivered their first child, a son, Matt. He recalled one day that the sales totaled $19. Not a fun conversation when she asked how the day went.
Sales picked up and Larry Lindsey of Community First National Bank put together a package that was approved by Warren Harding, son of the founder Harry Harding, and his No. 2 Bob Philcox. He recalled how Philcox stayed on top of how the business was going through weekly check-in meetings.
That has since expanded into a 5-acre parcel with over 60,000 square feet of store and warehouse with the lumberyard covering the back portion of the triangular property. The bulk materials side was founded when Matt, who worked at the business starting his sophomore year at Amador Valley High School in 1991, returned to the family business. Tom insisted he get a degree (accounting with honors from Arizona) and then work, Enterprise truck rentals where he advanced to Northern California manager. When Matt started, Tom fronted him $10,000 and told him to establish the bulk materials business — The Rock Yard.
Five years later, with both sides of the business flourishing, Tom handed the reins to Matt as president.
The independent business had been affiliated with True Value Hardware, a buying cooperative, to diversify its offerings. ACE Hardware, which also operates as a coop, invited Tom and Matt to a recruitment event in San Diego. Tom insisted that they pay their own air fare and lodging.
It was a fortuitous trip.
While on a bus touring locations, the guy behind Tom engaged him in a conservation. Tom brought up the culture he had fostered at the Richert store and said he could not imagine his employees running around in red bibs.
The man promised they would never tell him how to run his business. He had the authority to back it up as chief operating officer who shortly thereafter was promoted to CEO. John Venhuizen still serves in that role and warmly greets the Richerts when they see each other at company events. Incidentally, one of the ACE evaluators criticized the stock in one department because there was no less-expensive offering. When they touched bases with headquarters and reminded them they knew their customers, they were advised that person would not return.
The leverage that comes with the quality of their offerings, plus ACE, gives them a competitive advantage. They stock the full line of Weber barbeques and grills, while the big-box stores are limited to a few (and are happy with it).
The same goes for power equipment where the highly valued Stihl tools are offered side-by-side with Husqvarna. Typically, you can’t find them in the same retailer, but the reps apparently turn their eyes away because they are happy to be there.
The same goes for the upscale lumber and trim they offer. Vendors check out what the store stocks and want their offerings for sale.
Tom told one story about a contractor who had a $2,000 door he’d installed go bad. He was prepared to eat it, but Richert replaced it at no cost. A few months later, the contractor called and asked for a price on fine redwood planks for a big deck in Moraga. Tom quoted him a price off the top of his head. When he got the job, Tom offered to rebid it to cut the cost and the contractor said he’d just pay the initial quote.
Being fair and honest with customers pays off. Once people understand the value versus simply the cost, they will make the best decision for them, he said.
Over the decades, the Richerts have survived numerous competitive challenges. When they started the ACE coop, there was Orchard Supply Hardware. Then came the big boxes — Home Depot that located in north Pleasanton and Lowe’s (Dublin and Livermore). Home Depot and a developer were pitching a second location at Stanley Boulevard and Bernal (where the CVS, Starbucks and apartment complex now stand), but it was withdrawn. Thus, they’ve had no direct competition closer than the True Value store on Main Street.
Once they expanded their offerings into a full hardware with lumber ranging from elegant doors and finishing trim to 4×6 posts, they focused on growing their contractor business. Stop in early enough and you’ll find a big pot of coffee and donuts daily for their contractors. That’s paid off because 80% of sales are wholesale to contractors and their average ring is almost three times more than the typical ACE store. They received the pinnacle award as a top ACE retailer nine years in a row.
The other major expansion was the outdoor kitchen, tile and pavers in front of the Rock Yard. Everything in the “show yard” is marked with a tag for sale and customers can roll it right out from there if they choose or wait for delivery.
Most of the business is done with contractors working with clients who pick the appliances, the countertops, the tile and the pavers. When they remodeled the former pool store into this showcase, they added a conference room so contractors have a place to meet with their clients.
They stock an expansive inventory that includes Trex plastic composites that can be used for decks and now is being used as siding. The store hits a variety of price points from the inexpensive to very upscale. They sell three brands of built-in barbecues and grills — the Viking brand is the midpoint.
What’s next: a much-delayed facade upgrade.
Tom approached the city in August 2023 and was given an onerous list of requirements including a soils study and a traffic study on Sunol Boulevard back to Interstate 680. No thanks.
Two years later, he went back and was given the same list and responded by writing to the planning director and the city manager. The planning director responded that they were reviewing the requirements and check back at the end of the year. When Tom did, he was told it was an easy over-the-counter approval to add facades to both buildings and upgrade a major entrance to the city.
Tom, now fully retired but still thinking about the business at 81, enjoyed the commute from his Castlewood home — two stop signs and two stop lights. His Porsche, 18 years old, only has 72,000 miles on it. Matt lives near Stoneridge mall and has about 80,000 miles on the company truck that is nearly that old.
One of Tom’s latest ideas was stocking very big ceramic pots that could hold a dwarf tree. Matt found the distributor in Stockton and they are anticipating delivery soon.
Both Richerts take pride in operating the only independently owned hardware and building supply store along the broader I-680 corridor. Tom had the opportunity to expand to a second location in Mission San Jose in a turnkey store, but passed. He and Matt are happy with the single location and are doing just fine at 50 — ironically Matt turned 50 this year.
