Executive Hire News › Archives › April 2009 › Market Report : Consuming interests

Market Report : Consuming interests

There are profits to be made by selling consumables and other items at the point of hire. To kick off our Market Report, EHN speaks to hirers that are doing this successfully.

Open up Hire Station’s 2009 catalogue and the high importance that the company is now placing on the sale of consumable items is obvious. The publication includes a bound-in, foldout section dedicated to such products, ranging from jackets and work boots to gloves and goggles.

“This gives just a flavour of the wide range that we can offer,” says Hire Station’s Operations Director, Carl Huntington. “We will also shortly be producing a separate, dedicated consumables catalogue with our full range. This will cover items like personal protective equipment (PPE), fixings, hand tools, diamond blades and abrasives, amongst many other products. All these can obviously be sold to customers visiting their local Hire Station branch, but we can also offer them through our One Call operation based in Manchester, which means that contractors and tradesmen can buy everything they need from one source. They do not need to visit or contact builders’ merchants or other retailers.”

Single source of supply

Hire Station’s consumables line-up obviously comprises products from various manufacturers and brands, but Carl Huntington believes that, by offering them as part of the hirer’s general portfolio, this heightens the hire company’s perceived role as a single source of supply for a comprehensive range of equipment.

In similar vein, P.E.T. Hire Centre of Crewe devotes a considerable area within its extensive showroom display to consumables ranging from screws, fixings, nuts and bolts and hand tools like axes, hammers and chisels, to PPE, safety harnesses and workwear. “We buy small items like nuts and bolts in bulk quantities,” says MD Carl Banks. “It always surprises me how much they are in demand. It is not unusual for tradesmen to spend £30 with us on small consumables like that. As we buy in large quantities, the margins are excellent, and we still work out much cheaper than builders merchants or DIY retailers.

“We also stock equipment that professionals might need unexpectedly, like tarpaulins, drain rods and crowbars. It means that our customers can buy what they need from us at the same time as they are hiring their tools and machinery, without having to waste time going anywhere else. Stock levels are obviously monitored closely, and when we need to re-order we check amongst various suppliers to see that we are getting the best deal available.

“At any particular time we will have approximately 250 pairs of work boots of various sizes in stock. We also offer certain items from Toolpak such as breaker accessories, gloves, protective masks and ear defenders, as well as Abracs abrasives.” Carl Banks says that consumable items like these represent an important area of business for P.E.T. Hire Centre, which for the second successive year was a finalist in the Passionate Independent Hirer Award at the Executive Hire Show. “A lot of sales come from impulse buying, with hire customers spending time to look around the shop and seeing something they need. They might spend £20 on hiring a machine and walk out having spent an additional £80 or £90 on other things.”

Pro-active companies

Dave Taylor, Director of Penrith Tool Hire, stresses how important it is for suppliers to be pro-active in explaining new products and their advantages, as well as providing support. “Our local Duro diamond products rep prepared a quick blade selection chart to help us choose the right blade for certain specialist applications. We find its Ultra Shoxx blades with 20mm segments really excellent to offer customers, because they can cut so many materials.

“We have also achieved good revenue selling Dronco’s latest Evolution blades, which are very long lasting and produce less noise. When we introduced them, we started giving a blade free to good customers, and to those we wanted to do more business with, and many have been back to buy more having been impressed by the performance. This sort of initiative is a good way of building business relationships.

“Our Higher Concept Software Syrinx program automatically alerts hire desk staff about the consumables and accessories they should offer customers hiring certain products, such as diamond blades and PPE, and this is a really excellent way of maximising our
sales opportunities. We also have Toolbank’s catalogue on the counter if customers are looking for hand tools or other items. Everything listed is clearly priced and delivery is quick,” says Dave Taylor.

Sizeable revenue earner

For Webster Power Products, a hirer based in Wishaw, selling consumables represents a sizeable revenue earner. “We obviously monitor all our sales and we must average £40,000 per month,” says Managing Director Murray Webster, “on items such as diamond blades, fixings, silicone sealants, abrasive discs and workwear. As well as over-the counter sales, that figure includes the supply of items to account customers’ sites.

“We have an extensive showroom, with power tools and equipment from several major suppliers, as well as products from Toolbank, Toolpak and Silverline Tools. I like to keep abreast of all the latest items available, and I will always try to make time to see a good sales rep who calls.

“One of the biggest advantages any hire shop has is the high footfall through the door, and you must maximise this opportunity. A customer might only come in to hire a breaker, but you then have countless other chances to sell him other things as well.” •