PTED Blog

Just returned from the ISN tool expo in Orlando, and earlier this month was at the TEDA show for another group of WDs. There do appear to be some deals out there, and smart partners, for the distributor willing to do a little research (branded and independnet).

On that note, I have to say I was genuinely surprised by the number of branded distributors I talked with at the ISN show. I knew that branded trucks were using WDs in addition to their brands, but I was surprised by the amount. I talked to more than one distributor from each of the four majors.

Also, in my own recent nonscientific survey, more than 70% of branded respondents said they also use a WD. Which leads me to a discussion question for you. If you are branded and use a WD, why? (Please share some specific insights without sharing any brand names.) I’m simply wondering what kinds of help WDs are offering that you seek.

Also, if you are branded and use a WD, are you also considering becoming full independent?

And for the independents, do you use more than one WD?

- Brendan

I asked what you thought about adding a fuel surcharge to pricing based on suggestions I had received. A few of you responded that it would not work.

I agree. From what I’ve seen, where more people are tightening their spending, adding a fuel surcharge to a purchase would negate a big part of the service that techs expect from a mobile distributor – delivering tools, chiefly. I think such a surcharge would send many techs to online tool sellers who offer free shipping, even if they knew service later would be a hassle.

So, tell me: What are you doing to help margins when fuel prices are so volatile on a day-to-day basis? Retooling margins? Changing collections strategy? Reducing inventory? Waiting an extra year or two to buy a new truck?

Let me know.

- Brendan

It’s been suggested to me recently that this industry needs to introduce fuel/delivery surcharges onto bills to help combat skyrocketing fuel prices. I have an opinion, but don’t want to influence comments right off the bat. So let’s start with:

What do you think?

- Brendan

 (I’ll post my thoughts on this issue soon.)

I’ve talked to a few different shops recently, and there’s even been a blog post at pten.com, that all point to a coming uptick in business. Shop owners are optimistic that the next few months will be a boon to business as car owners start scheduling repairs they’ve put off with an influx of “gov’t” money in the form of tax returns and the Bush-approved stimulus checks.

I’m not telling you how to run your business, but it seems to me that if shops are expecting more business to start coming in shortly, now would be the wrong time to think about taking some time off.

Am I wrong?

- Brendan

I’ve observed that the majority of mobile dealers must do a lot of customer contacts while on the road, and that means a lot of talking while driving. I also recently read that some states, like N.Y. and N.J. (see below) are upping their fines for not using hands-free devices while talking and driving.

I’m not taking any stance on the whole talking and driving issue. But, how much of your day is spent on the phone? And how much of that is while driving between stops? Do you use a hands-free device? What comments do you have about the whole talking-while-driving debate, especially considering your business is dependent on both?

From the news article:

“New Jersey drivers will have to be more careful while driving and using their cell phones this weekend because starting March 1 they could be fined $250 for violating the state’s hands-free law — the most expensive hands-free fine in the nation.”

“The state of New Jersey originally adopted hands-free legislation as a secondary offense in July 2004, making the use of cellular phones while driving punishable by fines ranging from $100-$250, but drivers could only be ticketed in conjunction with another traffic violation.”

I can’t say I’m surprised by the open can of worms from my last post on WDs who sell direct to the end-user online, undercutting the mobiles. But it is a healthy debate. Let’s explore further:

Independent mobiles: What, specifically, are you doing to sell yourself and your service to your customers so that a price you can’t match isn’t that desirable? What can WDs do to earn your business, aside from not directly competing with you?

Flag trucks: Do you utilize WDs? If so, how much? If not, do you get everything you need from your brand, or do you just not carry what’s not available?

 WDs: What are you doing to gain/keep the trust of your mobile customers? What value-addeds do you offer beyond quantity of SKUs?

Manufacturers: What are you doing to protect your product and brand in the aftermarket? Do you use Minimum Advertised Pricing policies? Have you in the past, or are you considering it?

I’ve heard some recent concerns about W/Ds competing with the mobile jobbers by selling direct to end users online.

Is your business hurting from any activity like this?

Have you found this to be a regular thing, did you expect it would come, or are you surprised to hear your supplier might be competing directly with you while still selling to you?

Is this the future of tool selling? Are you planning any kind of web selling to add to your truck sales?

While I was at the AAPEX/SEMA/NACE/CARS shows this year (watch for your December issue of PD for some of the great tools there), I was asked why most tool and equipment jobbers don’t stop at PBE shops. In my limited knowledge, I couldn’t answer. But I promised to start asking and look for an answer.

What I’ve heard so far is that traditional PBE jobbers concentrate on paint, finishing chemicals and sandpaper, and T/E jobbers just don’t stop at PBE.

That appears to me that your average PBE tech is left without a weekly source for the power tools and hardlines he needs in his work. After all, it’s not just sanding and spraying.

So, if you stop at PBE shops every week, how many? If you don’t, why not? I would love to learn a bit more about this side, or potential side, to your business. If you’d like to remain anonymous and not post here, please click here to email me directly.

Thanks!

-Brendan

For those of you who weren’t able to come to auto aftermarket week this year, let me just say there are plenty of new tools and equipment out here at AAPEX for you.

My feet are killing me (not that you care) — and I can’t believe how much new stuff is here, whether in power tools, specialty tools, fluid exchange equipment and more.

Independents, I know, will like seeing some of the new cordless stuff from one company I tested a few minutes ago, and there is plenty of new consumables, harldines, power tools, storage and more on the way. You can watch for some updates on this site and at www.pten.com. The Dec. issue of Professional Distributor will also have a section on my top picks of tools in the show.

- Brendan

As the holidays approach, I know a lot of you may be gearing up for some sort of annual contest or push. I also know some of you don’t believe in using contests to entice your customers, lest they begin to expect “something for nothing” every time they buy a tool.

My question to you is, what contests have you run in the past that worked well? Or in some cases, didn’t work?

Do you find that the occasional hat or T-shirt help with future sales? Or is the right tool at the right price always your pitch, along with your brand of friendly, smiling customer service?

Just curious, and I know other distributors out there will love to hear your stories, good and bad.

 - Brendan