How Do I Get Commercial Hardware Store Contracts?
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 22
- 3 min read
Securing commercial contracts is a powerful way to grow your hardware store business. Commercial clients—such as contractors, property managers, and local businesses—purchase in larger quantities, provide steady revenue, and can become loyal, long-term partners.
Here’s how to break into this market and build relationships that lead to profitable contracts.
Why Commercial Contracts Matter for Hardware Stores
Commercial contracts can account for a significant portion of a hardware store’s revenue—sometimes up to 70% or more. These agreements provide predictable sales, help you move inventory efficiently, and establish your store as a trusted supplier in your community.
1. Understand Your Commercial Customers’ Needs
Contractors and business clients have different needs than retail shoppers. They value:
Consistent stock of professional-grade products
Competitive pricing and volume discounts
Fast, reliable service and delivery
Flexible payment terms
Knowledgeable staff who understand their projects
Design your store and inventory with these priorities in mind.
2. Build Relationships with Local Contractors and Businesses
Network locally: Attend trade shows, join local business associations, and connect with contractors in your area.
Offer trade accounts: Allow contractors to set up accounts for easy ordering and billing.
Provide value-added services: Consider offering delivery, special orders, or after-hours pickup for commercial clients.
For more relationship-building tips, check out Spendgo’s article on contractor relationships.
3. Negotiate and Secure Supply Agreements
Be proactive: Reach out to local construction companies, property managers, and government agencies to introduce your store and services.
Negotiate terms: Discuss pricing, delivery schedules, and payment terms that work for both parties.
Put it in writing: Use clear, professional supply agreements to outline expectations and protect both sides.
For negotiation strategies, see Forbes’ supply chain negotiation tips.
4. Leverage Technology and Marketing
Use a modern POS system: Track contractor purchases, manage inventory, and offer loyalty rewards.
Promote your services: Use your website, email marketing, and social media to highlight your commercial offerings.
For marketing ideas, see Wexford Insurance’s guide to hardware store sales.
List your business on contractor directories: Platforms like PlanHub, Building Connected, and local builders’ exchanges can help you connect with commercial clients.
Build a Brand That Wins Commercial Hardware Store Contracts
Contractor Back Office helps hardware stores stand out by managing the tools that build trust and win high-value contracts.
Our Services Include:
Stay organized and respond quickly to commercial opportunities with professionally managed proposals.
Showcase your inventory, store services, and customer testimonials to build credibility.
Engage with builders, property managers, and commercial clients through consistent, professional content.
5. Offer Volume Discounts and Special Pricing
Commercial clients expect competitive pricing. Create tiered discounts for bulk purchases and special pricing for repeat customers. Highlight these offers on your website and marketing materials.
Stay reliable: Always have core products in stock and deliver on your promises.
Communicate clearly: Keep clients updated on orders, deliveries, and any issues.
Go the extra mile: Small touches—like remembering a contractor’s preferred brands or offering early morning pickups—can set you apart from big box competitors.
7. Meet Insurance and Compliance Requirements
Many commercial clients require proof of insurance before signing a contract. Make sure your hardware store has:
Learn more about hardware store insurance from Wexford and ensure you’re ready to meet any contract requirements.
Final Thoughts
Winning commercial hardware store contracts is about more than just low prices—it’s about building trust, offering value, and delivering consistent, professional service. By focusing on contractor needs, negotiating strong agreements, and maintaining the right insurance, your hardware store can become the go-to supplier for local businesses and contractors.
Ready to grow your hardware store with commercial contracts?
Contact Wexford Insurance today for expert advice on hardware store insurance.
