Executive Hire News › Archives › April 2009 › Market Report : "An untapped goldmine"
Market Report : "An untapped goldmine"
Toolpak believes that its products represent an obvious sales opportunity for hirers. Alan Guthrie reports from the distributor's Wrexham headquarters.
Celebrating its centenary this October, power tool accessory specialist Toolpak has its origins in quite a different industry, namely a scrap metal dealership called H. Cheetham & Son. The business flourished and it was not until the 1970s that it decided to broaden its activities, initially by supplying welding equipment. Soon afterwards it became a distributor for Makita power tools. However, changes in both industries meant that,
by the end of the 1980s, a new activity was sought.
“Many Cheetham customers told us they were having difficulties in sourcing good quality drill bits, and the company decided to develop a range under the Toolpak brand name, which could be supplied on a display rack for retail sale,” says Toolpak’s National Sales Manager, Ian Davies. “The official launch was at Hirex in 1991. It was immediately successful, and people began asking us for more items. By 1995, the line-up included power tool accessories like TCT blades, jigsaw blades and core drills, abrasives, safety equipment, workwear, hand tools and many other products. Toolpak has now become a one-stop shop supplying everything to drill, screw, cut, grind and smooth into masonry, metal, wood and plastic.”
The hire industry represents Toolpak’s principal market, accounting for 60% of turnover. Hirers buy a tool rack for display in their shops, and this comes with a wide selection of fast moving lines, which can be altered if necessary to reflect an individual hirer’s particular customer base. “We can help with the design of the retail area, and our reps visit regularly to check and replenish stock levels, making the whole process as easy as possible. A display should quickly pay for itself, with the products providing an important additional revenue stream,” says Ian Davies. “We know of hirers whose consumables business has trebled soon after adding Toolpak products. Many tell us that the tool racks really give their shops a lift and create a brighter image, making customers spend more time to see what else is available.”
The company, which occupies a four acre site in Wrexham, aims for 100% stock availability and provides next day delivery nationwide. As well as consulting a printed catalogue, hirers can use Toolpak’s recently re-launched web site to check product details and applications, and can place orders on-line round the clock.
Last October, the Force X diamond blade range was launched. These are designed for durability and speed, and for cutting virtually all site materials, from soft block to hard facing brick. “We recognise that hirers are seen by their customers as providers of advice as well as equipment, so we have developed various merchandising options to assist them,” says Marketing Manager, Alison Roberts. “A counter-top display can sit on the hire desk with a selection of blades and literature, and it has a selection chart on the back so hire staff can consult the information as they talk to customers. We can also supply a dedicated Force X tool rack which, as well as displaying the blades, has an integral DVD player and monitor showing demonstrations of the products in action. This has proved to be a very effective sales aid.”
Ian Davies believes that, in the current economic climate, consumables and accessories represent “an untapped goldmine for hirers. Many companies have traditionally shied away from selling products, and have almost kept items like blades under the counter instead of having them displayed prominently. Customers are often amazed when they realise how many products the Toolpak range encompasses, and each one represents a significant profit opportunity. If hirers change their mindset and embrace the concept of selling, we can partner with them and provide the products and support they need to maximise this revenue.” •
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www.toolpak.co.uk |
