Friday, October 10, 2008    

August 1994

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Baiting the DIY Trap With Tools and Equipment

The Retailer's Role is to Assure Consumers' DIY Tasks are Within Easy Reach With the Proper Assistance.

Give a man a fish and he will feed himself for a day. Teach a man to fish and he will feed himself for a lifetime. This also works with the DIY customer. If you can provide the necessary tools, parts and know-how, you will have a customer who keeps coming back. But before all this happens, you have to know how to set out the most attractive bait. When the customer takes the bait, you set the hook and then gently reel him or her in.

To accomplish all this, you first must have all the correct merchandise in stock and prominently displayed. As a pro in the merchandising of auto parts and accessories, it may pay to let yourself imagine what it is like to be a DIYer looking for tools and parts. So, get out of that ivory tower (or Cadillac) frame of mind and...

Think price.
Think quality.
Think practical.

Now write down all the common DIY auto functions and then fill in the tools, equipment and information you will need to perform each task.

Here are some DIY functions to get you started:

Changing spark plugs, oil, antifreeze coolant, filters (oil, gas and air); wash and wax; detailing the interior and exterior; pinstriping/graphics; installation of lighting, window tinting, car top carrier/roof racks, wiper blades and windshield washer pumps; lubrication, etc. The list can go on and on. Now the parts may not be hard to conjure up. That's easy for any auto parts personnel. What is needed now is the correct tool for the job.

Job-specific tools will make a DIYer's job easier than using generic tools. They can fall into two categories. One example is an oil filter wrench. Because this is a tool that can be used over and over again, the customer will not balk on purchasing it.

The second type of a tool is one that may be used once in a blue Edsel and is expensive. If the price is too high, the customer will probably try to borrow one from a buddy. If that fails, he will probably attempt to rent the tool. This is your chance to rent out these once-in-a-blue-Edsel tools.

Create a plan
There has to be a merchandising plan. With a good strategy, you can capture the DIYer with a practical floor plan and signage.

One industry store design expert suggests dividing the category into tools and equipment and then, hardware. Research has shown that consumers equate tools and equipment equally. Hardware consists of items such as connectors, snaps and electrical ties.

Some tools that are job-specific should be placed in areas adjacent to their jobs, but they should also be placed with the tools and equipment displays. The consumer who is browsing through the tool area will be reminded of a particular task. And this could lead to secondary sales.

Many industry sources feel information on how to do a particular DIY task has been neglected in many auto parts stores.

"There has been an assumption that the consumer who comes into a parts store and asks for a part or tool knows how to do the task," says Stephen Alexander, president of AIM, a store design company. "This is not always the case. You do have to train or teach the consumer and it should be in an area that I call the DIY learning center. And that consists of many teaching tools. Manuals should be available as well as teaching videos that the customer can watch."

DIY educational areas can be set up in an 8x10 feet or smaller space. The area invested will be paid back in tools and hardware sales.

If you rent tools, display the information well so the customer doesn't have to ask.

Renting tools is one way to promote sales of expensive parts, but it also gives the retailer a chance to interact and help the customer.

"Consumers will respond when the retailer makes an effort to help. Instead of just a place to buy parts, he now equates the store as a place that has value and service," adds Alexander.

A booming market
Consumers should not be intimidated about working on their vehicles. Admittedly, there are a lot of electronic parts and computerized functions, but these should not be a deterrent to performing the necessary maintenance that every car must have. Richard Martin, vice president of sales for K-Tool International, Wixom, MI, has seen the DIY tool market increase greatly in the past few years.

"When the economy is down, the sales of tools soar," says Martin. "People want to save money so they do the small service jobs themselves."

Martin suggests that the fast-moving parts be placed where the customer can spot them immediately and specialist tools where they can be reached.

"Tools are not an impulse buy. Customers come in with a specific tool in mind," says Martin.

One major change in the market is the addition of rental tools to the shelf space. These tools are job-specific and cost more than $30 or $40. K-Tool, like many other tool companies, buys tools from China and Taiwan.

"This presents a good price to the consumer and also it now includes quality. It is also much easier for us to order. For instance, we have gone to a U.S. manufacturer and he will only take orders for 100,000 units at a time, whereas we have gone to a foreign manufacturer and order as low as 500 units," says Martin.

There is not a whole lot that is new in the tool market. But, according to Martin, hot sellers now are angle wrenches, spindle nut sockets and torque screwdrivers.

Clear the aisles, fill the endcaps
The new look is the "retail" look and that is what it takes to sell tools, says Wayne Jensen, product marketing manager for K-D Tools, Danaher Tool Group, Lancaster, PA.

"The rotary display is disappearing and is being replaced by the gondola," says Jensen. "The newer retail stores that are successful have accepted looking like up-to-date stores, which means aisles and end caps. Generally, the parts are sold in the aisles so you want to place the tools at the end caps. They should be accessible so that customers can handle them. Once the customer gets the feel of the tool, it is as good as sold."

Point-of-purchase displays, window banners, promotional posters are necessary signage, but that is not enough to service the DIYer.

"You have to be open when they need you and that means the weekends and evenings when they do their work," adds Jensen. "If they know you are open, it will be the first place they go for tools."

Instructions on how tools operate should be available. K-D Tools' packaging has instructions on the back of each tool. Bilingual instructions will be added for Hispanic customers next year.

"You can't assume that DIYers know how to use every tool," adds Jensen. "And it also helps in selling the tool. Always keep a good supply of tools on display."

What is the hot selling tool? Not just one tool, but tools that can fit into the tight crevices and notches of today's smaller cars.

If DIYers can't reach it, they can't fix it.

In-store demos educate consumers on equipment
People aren't born with an innate sense of DIY. They have to be taught. And that training can come from a parent, friend, school or from your store or shop.

Once a DIY function is de-mystified, a store has more opportunities to sell parts and equipment for a specific task. Auto Source, a 10-store auto chain based in Indianapolis, IN, regularly holds product and repair demonstrations, according to Jerry Justus, president and CEO.

"We do this in all our stores," says Justus. "We use it as part of our service to educate the consumer. We have found that there is a high percentage of men and women who don't know a lot about the various functions of the vehicle. We teach them the basics of vehicles so they know when to get something repaired. It is hard to tell if this corresponds to selling more tools and equipment, but in some areas it seems to have an impact. We have been selling more air compressors and air tools, probably because car owners get to see how easy it makes the work."

Many of the clinics held by Auto Source are seasonal. In the spring, waxes and polishes are featured in weekend clinics. Brakes and suspension work are demonstrated in evenings on a monthly basis.

"We publicize these clinics through in-store signs and direct mail circulars," adds Justus. "The turnouts range from 10 to 50 people per clinic. About 90 percent of those attending are male, though we do get more women when we design a class specifically for them."

The demonstrations are supported by DIY manuals and also computers where printouts can be made of various repair functions. These additional teaching tools reinforce tools and equipment sales.

"We don't make a huge effort with these demonstrations," said Justus. "But it has become an important piece of our goal to educate the consumer."

COPYRIGHT NOTICE:"Reprinted with permission from Aftermarket Business, August, 1994, page 10. Copyright by Advanstar Communications, Inc. Advanstar Communications, Inc. retains all rights to this material." To subscribe to Aftermarket Business, call 1-218-723-9477 or email fulfill@superfill.com.



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