TOOLS


HOW TO PROFIT FROM MODERN THINKING


There are plenty of ways retailers can maximise their sales in hand tools, says Carl Kammerling International brand manager Graham Godfrey, from making the most of the latest trends for storage and ergonomically-designed tools, to creating ‘hotspots’ in store for impulse buys.


A


lthough it is considered a stable and mature market, the hand tool sector is set


to grow, with prospects for


both domestic and non-domestic construction levels forecast to rise (AMA research). Improving consumer confidence and rising disposable incomes are also likely to result in larger DIY projects being undertaken, meaning significant potential for retailers to grow product sales and profit margins. For


retailers, professional hand


tools represent a key profit driver, often delivering impressive margins of over 50% (companiesandmarkets. com). The market has grown 8%(GfK) in the past few years, with sales from professional tradesmen accounting for around 70%. So how can retailers maximise sales of this profitable category?


Changes to demand and need Understanding the current landscape and how consumer buying behaviours are evolving is vital. Two key trends the industry is currently seeing, and that retailers should take into account when looking to increase levels of profitability, are storage and ergonomics. Research has shown that tradesmen are increasingly moving away from large, cumbersome tool boxes, preferring instead to carry the smallest amount of weight possible, in a bag. Indeed, sales of C.K Magma, Carl Kammerling’s range of premium tool storage bags, continue to grow year on year, mirroring this trend. In addition, ergonomically- designed hand tools are likely to as


stimulate tradesmen look for ways Retailing opportunity


Although acknowledging and responding to evolving trends


12 DIY WEEK 26 MAY 2017


further growth, to


enhance employee welfare, as well as increasing lifetime and efficiency.


is critical, generally speaking, tradesmen only require a core base of tools and equipment for most projects. Selecting the right mix of products that also feature elements that take into account the needs of today’s tradesmen, like those outlined above, can go a long way in helping retailers secure happy, returning customers.


Achieving a healthy profit


margin on these products means carefully considering the in-store customer experience, making sure tradesmen are drawn to products and compelled to make the all- important purchase.


Making small changes in-store, such as strategic product positioning and effective use of strong displays can boost sales significantly, with minimal effort.


Shelf Psychology


Experiments have shown that, when we walk down an aisle, we often look only at the shelves that are level with our eyes. Strategic positioning of products within certain areas of the store is proven to have its merits. By simply placing ‘staple’ items that tradesmen purchase frequently, such as handsaws, at the back of the store, they are forced to pass other items en route, which are desirable but not necessarily essential. If positioned correctly, the ‘desirables’ will draw tradesmen in as they pass, resulting in a change of course in-store. If these ‘desirables’ are of higher value, retailers can effectively boost profits with a simple tweak of shop layouts.


Hotspots


Often, tradesmen visit a retailer with a specific item in mind – they rarely go with the mere intention of browsing. As such, retailers can encourage additional sales by maximising on impulse- purchase opportunities. Position attractive, lively merchandise in ‘hotspots’ where the customer is likely to engage with it, such as


near a till point while queuing. Research shows that if customers touch products, they are more likely to commit to a purchase, so place them within easy access and increase their appeal with attractive colours. Research by the Henley Centre found that impulse buyers respond best to reds, oranges and royal blues.


Less Is More


Obtaining feedback from a panel of professional tradesmen, Carl Kammerling International found that they prefer simple and succinct brands. This requirement for simplicity applies to both the way products are branded, as well as the way they are presented in-store. Retailers can satisfy the demand for streamlined tool offerings, while addressing the problem of limited floor space, by using flexible and carefully considered POS solutions.


Find the Perfect Match Retailers will


reap the rewards


of working with suppliers that understand the psychology of their customers. If their suppliers possess a fundamental understanding of the in-store experience, retailers can rest


assured that their product offering and merchandising, in turn, satisfy market demand and meet the needs of tradesmen. As a business Carl Kammerling International is constantly looking for ways in which it can work with retailers more closely to help them maximise their profits through careful choice of stock and merchandising. Once a retailer has considered its tool offering seriously and made a few simple changes to stock, they’re usually quickly convinced of the benefits. We constantly monitor and assess the needs of the tradesmen and the state of the industry as a whole, to identify what our end users consider a priority when it comes to tools. Obtaining continuous insights about the needs of the tradesmen ensures we are well placed to develop innovative tools and merchandising solutions that provide revenue streams for retailers.


By showing a considered


awareness of their stock profile, combined with a strategic approach to the products they choose and the way they present them in-store, retailers can dramatically increase turnover and profits.


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