How Do You Compete?

It’s probably not news to you that your real competition does not come from other tool distributors in your territory. Your real competition comes from national retail chains and the Internet. The question is: What do you do about that?

Most of the big home center stores sell the same cordless power tools you carry on your truck, often the same brands. While most of those tools are for construction workers and homeowners, customers can usually buy or order mechanics’ tools there too. Prices are often lower, and sooner or later almost any of those tools will be on sale at a price that’s simply impossible to beat.

Retail parts stores are part of your competition too, mostly the national chains with national advertising campaigns. In addition to parts, they also sell tires and batteries and lots of accessories like car stereos and steering wheel covers. And tools. Most of the hand tools they sell are not really professional-grade stuff, and your customers wouldn’t have much interest in them. The diagnostic tools they sell in the store are also intended for DIY customers.

However some also sell the good stuff, everything from hand tools to top-of-the-line diagnostic equipment like scan tools and oscilloscopes. They don’t necessarily stock them in the store, but if they carry it, techs can order it as a special item or talk with a salesperson who can order it for them. The price or package deal is almost always better than what you can offer on the truck.

Shopping on the Internet offers the ability to compare prices from a number of different sources in just a few minutes. This is an amazingly powerful tool, because even when shoppers decide against buying over the Internet, they come away with a firm price in mind for a particular item.

So how does a professional tool distributor compete against all this?

One obvious tactic is to make sure your customers understand that when they buy from you, they get free credit, a factory warranty, and product support from an actual human being who comes to see them regularly. They also get your knowledge of other customers’ experiences with specific tools. I could go on, but I’m not out there every day like you are. So you tell me and I’ll tell everyone else in a future column: How do you compete against retail and Internet tool sellers? Send an email to [email protected].