In many communities, locally owned hardware stores have gone the way of the horse and buggy. Every time a big-box home improvement store pops up, small businesses nearby suffer or, worse, just disappear. Fortunately, Cambridge, Massachusetts, still has a number of small local hardware stores that are thriving.

After spending many years in retail, Simon Shapiro began working at TAGS Hardware in Cambridge, Massachusetts, in 1972 when it was grossing around $170,000 in revenues. By 1982 he was running the family business. A year later he met his future wife, Margaret (Mardie) Moran, and by 1986 she had become involved in the business. Today this husband-wife team manages TAGS. Simon serves as the CEO, and Mardie is the president of this beloved community institution that has 25,000 square feet of retail space and generates almost $7 million in revenues.

Originally in the movie theater business, Simon’s father, Norton Shapiro, founded TAGS in 1955 with the help of a relative who was having great success in the hardware business. In response to customer needs, the store grew over the years to be more of a small department store, stocking items including hammers, small kitchen appliances, and garden supplies.

How does TAGS compete with the big-box stores? According to Simon, TAGS's success and longevity are directly related to the business mantra drilled into him by his father: Take care of the customer, and the customer will take care of you. This fundamental value permeates everything TAGS does, and the company is on a continual search to find new ways to meet customers’ needs.

The most important way that TAGS serves customers is with superior service provided by highly trained staff. Every new staff member goes through a standard orientation and receives constant on-the-floor training. Regular off-the-floor educational meetings focus on new products and are led by in-house and outside experts. Opportunities for staff to hear the customers’ perspective include regular reports from professional “secret shoppers.” Creating a pleasant shopping experience and providing exemplary service by answering customers’ questions, locating requested items, and finding solutions to problems is the mission of every TAGS employee.

TAGS employees work as a team. They meet every morning and go over sales goals, new products, and special offers and programs. During the day, department managers help out when needed. And TAGS doesn’t skimp on staffing. Every department keeps at least one staff member easily visible to customers.

TAGS is famous for the innovative ways it partners with customers. For example, every new Cambridge resident gets a coupon in the mail offering a free trash can and a duplicate house key. TAGS also sends out “free light bulb" cards to frequent customers - TAGS gives away an average of 650 light bulbs every month. The high point of the year’s calendar is TAGS’s Customer Appreciation Weekend in November. This wonderful extravaganza includes Mr. and Mrs. Santa Claus, product demonstrations offering taste treats, free popcorn, and fun activities.

TAGS is located in Porter Square on busy Massachusetts Avenue within walking distance of a subway stop. Yet some local residents still drive a significant distance to compare prices at big-box stores. TAGS carefully studies the competition to ensure TAGS merchandise is priced competitively.

Simon’s business ethic stems from his father’s deeply held values. Not only did Norton Shapiro preach taking care of customers, he said it was the responsibility of a business to give back to the community. Nonprofit organizations in Cambridge know they can count on TAGS as a partner. Whether it’s paint and brushes or a hammer and nails, every reasonable request is honored and no one goes away empty-handed.

TAGS’s return policy also reflects a deep commitment to the community. TAGS will take back any merchandise within 30 days of purchase, and returned items in good condition are promptly given to worthy nonprofits in the community, including a local agency that helps battered women get a new independent start in life.

It’s not surprising that Simon and Mardie are very involved in community affairs. A Cambridge resident for more than years, Simon spends a lot of time partnering with various community groups, whether it’s building up the infrastructure of the Porter Square business district, regularly representing the business community in City of Cambridge issues, or promoting the growth of Cambridge Local First.

When asked why he doesn’t open other TAGS stores, he replies, “Because I don’t want to fail. I wouldn’t know how to serve a suburban crowd; I have no idea how to sell a power lawn mower.” We suspect that Simon could learn to sell a power lawn mower but that he sees his consistent presence at TAGS and his deep relationships with customers and staff to be mandatory for success—and his pleasure.

From Growing Local Value, by Laury Hammel and Gun Denhart, Berrett-Koehler, 2007.