5 to 2: It’s Time for a Change – At Report by Peter Brett


The locally renowned Fixings and Powertool Center on the A23 in Redhill in Surrey has been trading since 1990. It was established by Charles Dunn who unfortunately died in 2000, leaving the company to be bought out by five directors in 2002. These five directors and shareholders have recently been reduced to two – Ralph Whitehead and Simon Bradbury, as the other three directors have retired. When I spoke to Ralph he was very


aware of the new challenges the company faces now that the 5 have become 2, and also the challenges faced by any business that needs to evolve to take advantage of changing conditions – the internet and Brexit to name but two.


Ralph was keen to emphasise that


the Fixings and Powertool Center is, in most ways, an independent high-street retailer of quality tools to the trades. Much of the business is still done the ‘traditional’ way, with many account holders (who return regularly) and whose needs can be met by the stocks of tools etc at the Center. But he is also keenly aware of the need to change and evolve the business because increasingly, his customers are internet savvy and demand the best prices. However, as we are all aware, the cost of a bricks and mortar premises, high levels of customer service and offering a high level of choice between premium brands can make internet prices hard to match. Nevertheless, Ralph and Simon have a few ideas up their collective sleeve and are determined to push ahead with confidence, knowing that they still have some advantages over internet suppliers – a fully fitted repairs workshop for example. Altogether, including the directors,


the Center employs sixteen people. The all-important delivery driver deals with local deliveries and gets to London daily. There are three technicians in the workshop who deal daily with repairs and warranty issues too. Two warehousemen control the daily intake of stock and prepare it for the retail ‘front of house’ as well as despatching bigger orders that need delivery. The ‘back office’ functions take up another person’s time and then the remaining nine staff work in the retail space. Since the Center has very trade friendly opening hours – 7am till 6 pm during the week and 8 am till 1 pm on a Saturday – it is necessary to have staff to work flexibly and to take into account peak times, illness, holidays etc. Staff are encouraged to work smart, be part of a team and be friendly and


helpful to customers – following the example of the two Directors who also work in the open plan retail space. Where necessary, they are encouraged to take up manufacturer-based product training to improve their expertise. They are also encouraged to pass on any suggestions they might have picked up from customers and others about various new items that might be stocked. Since it is the Directors’ job to make the final stocking decisions, Ralph acknowledges that it can be very helpful to have this sort of information passed on to him as the Center is keen to ensure that customers get what they want, but without having to stock products that quickly become obsolete or unwanted. Ralph also admits that, because of the open plan retail floor, he can sometimes overhear comments and conversations with customers and staff that enable him to get some other opinions


18 ToolBUSINESS+HIRE


on products, helping him to a more rounded understanding of what the Center should stock. For example, this information has


enabled Ralph to refine the range of corded power tools that is stocked. There is no point in having a huge range from a single manufacturer when it is actually better to cherry pick the most commonly used tools and stock those. Hardy perennials are the mains powered Festool rail saw and Bosch Max hammers that are trade favourites. However, with cordless tools becoming the norm, it becomes more difficult to restrict the range because end users are tied into particular manufacturer’s battery platforms. The information has also led the


Center to examine stock more closely and realise that although fixings and consumables are the most important part of the business, it is the powertools that draw the customers in. It did also indicate that the Center needed to keep the fixings stock range fully up to date with constantly evolving construction methods – such as insulation requirements. It is clear that the Directors like to have their fingers on the stocking pulse much of the time. When I asked Ralph about some of


the surprising stocking decisions he has made in the last few years he mentioned workwear. I don’t think he regrets the passing of the “filthy jeans and sweatshirt” type of tradesman because he points out that they sell a fine range of Herock workwear to tradespeople who are very image conscious – not only in how they dress, but also what power tools they use and what van they


drive. Signs of the times indeed! The Fixings and Powertool Center


has had a comprehensive stock control computer system for many years and Ralph says that they have been careful to ensure that it remains up to date to ensure that they always have a ‘two months ahead’ stock level. He is also aware that when plans for


a greater online presence are solidified into a plan of action, then the computer system will have to grow accordingly, both in size and scope. It will also have to be designed to reflect the buying trends of customers to make it easier to track the future stocking needs. When we discussed the THS


connection Ralph acknowledges that the


very flexibility of THS membership is helpful. You can use its facilities as much or as little as you need. But the overriding reason for membership is the fact that suppliers like the security and peace of mind that comes with being part of a much larger buying group. The Fixing and Powertool Center has been a THS member for over 20 years and over this time has taken advantage of the group pricing and the extensive product portfolio that THS can offer. Apart from having loyal, and frequently returning, account customers the


Center has no formal method of assessing customer satisfaction – as Ralph says “We don’t do surveys.” But he also says that although complaints are rare, they are always investigated to see what can be learnt. The open plan retail space can also allow a certain degree of real time monitoring so that any potential problems can be picked up and dealt with before they become serious. This is where intelligent and sensitive teamwork can often be the best way of heading off developing situations.


www.toolbusiness.co.uk


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