Any Future for lndependent Power Tool Retailers?

[BradNaylor]

I've always tried to support my local power tools shop rather than try and save a couple of quid going online. I've always valued a bit of personal service, being able to see and feel a tool before purchase, and being able to pick up spares and consumables whenever needed.

I'm beginning to wonder though.

On Saturday morning I knackered my 5mm Domino cutter when I hit a nail with it. I was in the middle of cutting slots for assembling a load of cabinets I want to get finished this week.

No problem - I'll pop out and pick up a new one. I phoned the shop.

'I've no cutters in stock - I'll have to order one up for you. It'll be about a week because they come from Germany'

'But surely you carry stock of the cutters' says I. 'After all, you're always telling me how many Domino tools you've sold in the last couple of years.'

'Can't afford to, mate! Business has been so bad lately I'm having to cut back on stock of everything.'

So just like that, every reason I have for buying off my local guy has been blown out of the water. No service - no stock - no nothing. I told him not to bother and that I'd get one from Axminster or Rutlands. He started to throw the inevitable hissy fit.

I feel sorry for him but it seems plain to me that the whole business model of the small independent retailer is now hopelessly outdated.

Is this just my local guy or is it a universal thing?

Needless to say within 10 minutes I had opened an account with Axminster and ordered 2 cutters for immediate delivery. I've held out longer than most but I've finally cracked.

Brad

 

[Steve Maskery]

No-one can swim against the tide, Brad. For years there has been an excellent tool shop in Bakewell, recently closed. When I came to Nottingham in the 70's there were three good independent tool shops here. Now there are none, just B&Q.

When you consider that Ax have a very good rep for customer service too, as well as their vast range, it's hard to knock the business model.

Cheers
Steve

 

[MikeG.]

Independant sports shops suffered from this problem.............and it may be worse now, I don't know. However, they came up with an answer that may well be applicable to the small tool shop business.

They clubbed together to form a buying consortium......which meant they were able to put one huge order in to a manufacturer, instead of dozens of independant orders. They naturally all benefitted from a large discount which would have otherwise been unavailable. They organised a central location for storage of "excess" stock, so even if they didn't have stuff immediately to hand in the shop they could get it delivered by the following day. Above all, they remained independant.........but were suddenly able to compete with the big multiples.

Why wouldn't this work for tool shops?

Mike

 

[wizer]

In some ways I feel bad for him, but why isn't he online? This should have been something he did years ago. As much as 10-15yrs ago. Those retailers that got their webshop up and running early (Axi) are now thriving.

 

[JonnyD]

I think my local shop is bucking the trend. They have invested a fair bit of money in a internet site selling spares and consumables which keeps the money coming in. They can get most things next day through the Toolbank network (might be something similar to what mike was suggesting) and they can also get anything from the axminster catalogue at the same price fairly quickly plus they keep in stock a fair ammount of tools considering it is a smallish town. There is also another good toolshop a mile away which sell powertools and fixings so I have no reason to go elsewhere.

Jon

 

[RogerS]

I'm kind of sitting on the fence on this one. You say that the tool shop has sold 'lots' and from that you make the perfectly natural assumption that they might/should carry spares for the Domino. But the term 'lots' is very loose. To your shop, 'lots' might mean only 10 and so should they stock a spare cutter? Possibly not. Where would it end? Spare parts for every item they sell?

But I've not used a Domino and have no idea how often one would need to buy a new cutter. If relatively frequently then, yes, I'd agree that the shop should stock them.

In some ways a bit like a local deli. Crunch came and you could see the available stock start to dwindle. Same old bits of cheese gradually hardening on the rind. So you give the benefit of the doubt and pop in a few weeks later. Still the same bit of cheese. So you don't bother going again and, yup, they closed. Almost a suicide mission by the deli owner.

 

[TheTiddles]

Almost everyone needs something that sells them, be that service or price (those being the biggest) that someone else doesn't have. Axminster do both so they win, it's not a bad thing either, we go where we get what we want, if they didn't do it we wouldn't go there

Aidan

 

[brianhabby]

I think he should be stocking the cutters if not other spares. He will probably make a better profit (percentage wise) on bits and pieces like this than the tools he sells, and as you indicate Brad, it's all part of the service that his customer (You) quite rightly expect.

Interestingly, I wanted a router bit recently, (on a Saturday morning) so toddled off to my local tool shop who I know has a good stock of cutters in stock only to find him closed.

When I spoke to him on Monday and asked why on earth a shop in the town should want to close on a Saturday his reply was, and I quote "We've had enough by Friday, we're run off our feet all week fulfilling internet orders so decided to start opening just five days a week and have the weekend off".

Can't really blame him,

regards

Brian

 

[Rich]

Independant sports shops suffered from this problem.............and it may be worse now, I don't know. However, they came up with an answer that may well be applicable to the small tool shop business.

They clubbed together to form a buying consortium......which meant they were able to put one huge order in to a manufacturer, instead of dozens of independant orders. They naturally all benefitted from a large discount which would have otherwise been unavailable. They organised a central location for storage of "excess" stock, so even if they didn't have stuff immediately to hand in the shop they could get it delivered by the following day. Above all, they remained independant.........but were suddenly able to compete with the big multiples.

Why wouldn't this work for tool shops?

Mike

I am fully in favour of just such a business model in order to survive, but could this not be classed as a cartel as they would all have to sell the goods for the same price?
I personally don't have the patience to "shop around" but go straight to where I know I can get what I need, and the difference of a few pounds does not bother me.
Rich.

 

[Grinding One]

I've always tried to support my local power tools shop rather than try and save a couple of quid going online. I've always valued a bit of personal service, being able to see and feel a tool before purchase, and being able to pick up spares and consumables whenever needed.

I'm beginning to wonder though.

On Saturday morning I knackered my 5mm Domino cutter when I hit a nail with it. I was in the middle of cutting slots for assembling a load of cabinets I want to get finished this week.

No problem - I'll pop out and pick up a new one. I phoned the shop.

'I've no cutters in stock - I'll have to order one up for you. It'll be about a week because they come from Germany'

'But surely you carry stock of the cutters' says I. 'After all, you're always telling me how many Domino tools you've sold in the last couple of years.'

'Can't afford to, mate! Business has been so bad lately I'm having to cut back on stock of everything.'

So just like that, every reason I have for buying off my local guy has been blown out of the water. No service - no stock - no nothing. I told him not to bother and that I'd get one from Axminster or Rutlands. He started to throw the inevitable hissy fit.

I feel sorry for him but it seems plain to me that the whole business model of the small independent retailer is now hopelessly outdated.

Is this just my local guy or is it a universal thing?

Needless to say within 10 minutes I had opened an account with Axminster and ordered 2 cutters for immediate delivery. I've held out longer than most but I've finally cracked.

Brad

I always try to have a back up cutter available...you never know when your going to need it...like you just said.

 

[BradNaylor]

In some ways I feel bad for him, but why isn't he online? This should have been something he did years ago. As much as 10-15yrs ago. Those retailers that got their webshop up and running early (Axi) are now thriving.

I was telling him this 10 years ago. He made a half-hearted attempt at getting a website up and running which cost him a lot of money but of course it didn't work because nobody knew it existed. The usual problem!

It is a typical exampe of a guy who's been running a successful business for twenty five years or so, has expanded to having three shops across the region and a big repairs department, and now finds his trade being whipped away from under him by online retailers.

Its not just the likes of Axminster - the shop in Colwyn Bay that Brian refers to is one of his big bugbears, constantly undercutting him on his main breadwinner - DeWalt reworks.

On reflection, I am probably answering my own question. While changing market conditions make it increasing difficult for small businesses to survive using their established business model, new opportunities open up for those able and prepared to adapt to new ways. I suspect that my friend has just been too stuck in his ways to do this.

Poor sod. He could lose everything...

Cheers
Brad

 

[devonwoody]

Things changed when fixed prices were abolished in favour of the consumer.
So service was better in the old days but prices are more affordable these days. (If I think what I paid for my Stanley brace in 1957, it made the wifes eyes water that day )

 

[woodbloke]

I was driving down to the dump on Churchfields trading estate on Saturday and I always just nip into Spire Tools on the way back. Not any more though...gorn, folded We have just got one small tool shop in the town selling a sort of mixture of DIY and ordinary stuff plus Penny Farthing Tools who do have a website - Rob

 

[Paul Chapman]

Buck & Ryan closed their branch in Guildford a few months ago My wife was quite surprised - she thought I spent enough in there to keep them in business :shock: :lol:

Cheers :wink:

Paul

 

[Niall]

Aye but then again when I bought a domino TS55 and demo vac in one go, the local dealer gave me a huge advantage in the form of discount on the demo machine plus Fes accessories thrown in. I'm talking £200 - £300 of a difference. Try getting any discount from Axy or Rutlands or online. Festool's restrictive contracts and their legality is a whole other kettle of fish, but at least the local dealers can and will negotiate on accessories. Oh and when I came to want a bigger Fes hose, which neither the dealer nor Axy carry, even though it took a few weeks to get, the dealer still gave me a significant discount. Axy would have charged the full list price. Hang in there and try to support local. The small purchases make the difference - its why rural areas have had the heart and soul knocked out of them by local shops closing. The same can happen on a larger scale even in cities.

 

[newt]

Rob yes shame about Spire tools I used them all the time. You may like to know they had the size of bandsaw you are after, don't know if there was a sale.

 

[woodbloke]

Buck & Ryan closed their branch in Guildford a few months ago My wife was quite surprised - she thought I spent enough in there to keep them in business :shock: :lol:

Cheers :wink:

Paul

You and me both in the 70's Paul :lol: - Rob

 

[barbyndave]

Hi Guys,

I am fairly new, so, hi to all of you!

I find that the national companies are great for their stock levels but found smaller retailers better for service & spares. I have been an AXM.. cust for a while but found it hard to find accessories for my tools. I was directed, by a great friend, to a tool shop on london called toucan tools who have for the last year provided me with a great service and of the many many items i wanted for my ever growing collection of festool tools, they always seem to have the spares, accessories etc I need. Although I still use some big companies, I still like the personal service I get!

Only last week my wife was saying "one day you will actually use all these tools you keep buying".

As a newbie I have found all your guys' hints & tips very very helpful - thankyou.

Dave

 

[Doug B]

I`ve moved away from buying on-line recently.
I`d needed to return a couple of faulty items which involved waiting in for them to be picked up, & the same again so i could sign for them on return.
Both occasions involved quite a lot of wasted time (& so money).
If i`d bought them locally it would only have taken a few minutes to drop them off & pick up replacements.
Also when you present someone with a faulty article they can see what`s wrong & deal with it. When you phone up to report something it`s such a palaver. Invariably the person on the other end of the phone talking to you as if you`re some kind of dim-wit saying that the problem is most likely user error.
Drives me mad. :twisted: :twisted: :twisted: