Summary
• Makita’s UK sales are now more than £100m.
• About 40% of Bosch’s sales are through builders merchants.
• Lithium ion batteries have transformed power tool operation.
There’s no doubt that power tools are one of those products which can stir great interest – Li-ion battery, 1,700rpm, 40/80Nm maximum torque – specification to get excited about, although perhaps not quite in the car league.
Power tools are generally fairly small, high-value items, which can attract a good profit margin. They are essential items for builders and carpenters and there is potential that they may actually buy their tools from you, as well as their timber.
The level of power tool sales in merchants is surprisingly high – Bosch estimates that 40% of its sales are accounted for at builders merchants. And it has noticed increased interest from the timber merchant sector.
Both Makita and Bosch, two heavyweights in the power tools industry, told TTJ they have technical sales specialists and trainers primed to help merchants who may be wanting to improve their power tool offering or even stock the products for the first time.
Makita is in the unique position of being a UK-based manufacturer of power tools, with a factory at Telford.
It has been in the UK market for more than 35 years and has grown its product offer to more than 600 different tools to meet the many and varied demands of the construction, maintenance and assembly industries.
Double-digit growth
A 10-year growth pattern for Makita power tools sales in the UK shows a double-digit growth year-on-year. This regular growth pattern saw sales of Makita power tools in the UK accelerate past the £100m mark for the first time last year, a 20% leap over the previous year.
The Makita brand is handled by the full spectrum of dealers, the major national builders merchant networks, hardware stores including those within major buying groups such as the NMBS, THS and Troy Networks, specialist tool merchants and some of the DIY outlets and Screwfix depots. The growth of internet sales naturally means many of these dealers also sell Makita products through this channel.
“Stockists of all sizes need to have the greatest possible stock holding,” the company says.
“All retailers know that a sale is made there and then. Whilst Ford still believes that they can make purchasers wait around loyally for 16 weeks for delivery of a new Mondeo, most other retailers know that you sell what you have or the customer walks.”
Makita operates a 24-48 hour dealer restocking service from the Milton Keynes distribution warehouse, which was doubled in capacity last year to 158,000ft²/15,000 pallets in a £3.5m investment.
“Lithium-Ion has been a great success for Makita and also a great contributing factor to the growth we have enjoyed,” said Kevin Brannigan, assistant marketing manager.
He said the LXT combi cordless drill with Li-ion batteries had been a big seller.
Makita has run tests and claims more than 2,000 charging cycles for its Li-ion 18V 3.0ah batteries. It also says they are 40% lighter than equivalent Ni-MH batteries, with a charge time of just 22 minutes. An intelligent charger (battery and charger both have CPUs) means it knows how many times the battery has been charged and will channel the charge accordingly to get extra service from the battery near the end of its life.
Makita produces a Spec Guide of all the products twice a year and usually introduces around 20 additional products each year.
Dealers are informed by monthly communications and trade days three times a year. Branded toolbars are provided and training is available for sales staff as well as end users.
Merchant tie-ups
German giant Bosch is also interested in tie-ups with merchants. “Bosch has noticed an increasing number of timber merchants showing an interest in power tools as another income stream,” said a spokesperson.
The company has sales set-ups for both the national merchant and the small independent operation, with a training centre in Denham, West London where specific product demonstrations can be held.
Bosch brands its professional power tools in blue, while the DIY range, often seen in the likes of B&Q, are green. It is believed to have about 20% of the UK power tools market and it recently announced the launch of 100 new tools in London.
It has added 14.4V and 18V drill drivers to its cordless lithium-ion range, with the GSR 14.4V able to drive 210 screws into softwood on one battery charge.
Another recent addition is the GTM 12 Professional combo saw for both mitre applications and as a table saw. It is aimed at installers and joiners, for use in the workshop and construction site.
Two new tools from Makita include 18V and 14.4V cordless angle drills aimed at making life easier for tradesmen installing shop fittings, kitchens and fitted furniture in tight spots. Its 7.2V pencil drill driver is the smallest in Makita’s entire range and again is aimed at use in restricted space.
