The Reseller’s Guide to Choosing High-Demand Power Tools
As a reseller, retailer, or entrepreneur in the home improvement and construction industry, selecting the right power tools to stock can significantly impact your business success. Power tools are a staple in both professional and DIY projects, making them a high-demand category with great resale potential. In this guide, we’ll delve into how to choose power tools that are not only of high quality but also have a strong demand in the market.
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Understanding the Power Tool Market
Before diving into specific brands, it’s essential to understand the market dynamics. Power tools are in high demand due to their necessity in a variety of projects, ranging from simple home repairs to complex construction tasks. The market for used power tools is particularly strong, as new tools can be quite expensive. This makes secondhand tools an attractive option for those looking to save money.
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Top Brands with High Resale Value
Milwaukee: Known for their durability and reliability, Milwaukee power tools have a strong following among professionals and enthusiasts. Their M12 and M18 lines are particularly popular in the used market.
DeWalt: Another brand that stands out is DeWalt, celebrated for its ruggedness and innovative designs. With a broad range of products, DeWalt tools tend to maintain good resale value.
Makita: A brand with decades of history, Makita is renowned for its power, precision, and durability, making it a favorite among professionals. This reputation helps Makita tools hold their value in the resale market.
Bosch: While it may not have the same brand recognition as Milwaukee or DeWalt, Bosch is respected for its high-quality tools across various categories. Their innovative features and durability make them a wise choice for reselling.
Factors to Consider When Selecting Power Tools
Brand Recognition: Name brand tools often have higher demand, as buyers typically search by brand name.
Quality and Durability: High-quality, durable tools are more likely to maintain their value over time.
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Type of Power Source: Decide between corded and cordless tools based on convenience, usage, and resale value.
Customer Satisfaction: Research and consider customer reviews and ratings on various platforms.
Warranty and Service: Tools with a warranty or good service support can be more appealing to buyers.
Market Trends: Stay informed about the latest trends and innovations in power tools.
Tips for Buying and Reselling Power Tools
When considering the purchase of used power tools for resale, it’s crucial to thoroughly inspect each item before finalizing the transaction. Always check the tool’s condition, looking for signs of wear and ensuring that all components are functioning correctly. This not only helps in maintaining quality standards but also builds trust with your customers.
Equally important is understanding your market. Knowing your target audience and the specific types of tools they seek can guide your purchasing decisions. Whether your customers are DIY enthusiasts or professional contractors, understanding their needs is key to stocking your inventory effectively.
To cater to a wide range of customer preferences, it’s advisable to offer a variety of tools. A diverse inventory that includes different types of power tools can appeal to various segments of your market, from hobbyists working on home projects to professionals in need of robust, high-performance equipment.
Lastly, staying informed about the latest developments in the power tool industry is essential. Keep up with new product releases and technological advancements. This knowledge allows you to offer the most current and efficient tools, positioning your business as a go-to source for the latest in power tool technology. This proactive approach not only enhances your product range but also keeps your business competitive and relevant in a rapidly evolving market.
Choosing the right power tools for resale involves a blend of market knowledge, brand awareness, and understanding customer needs. By focusing on quality brands like Milwaukee, DeWalt, Makita, and Bosch, and considering the factors outlined above, you can curate a selection that meets the demands of your customers while ensuring profitability for your business. Remember, the key is to offer tools that are not just in high demand but also align with the evolving needs of your market.
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Snap On franchise
I've considered it.
1. I don't want to be away from my family as much as that would require to get the business off the ground and running.
2. I really don't want that much debt - especially since we just bought a house as well.
3. Then there is the failure rate, but that probably ties in closely with #1
I've considered it.
1. I don't want to be away from my family as much as that would require to get the business off the ground and running.
2. I really don't want that much debt - especially since we just bought a house as well.
3. Then there is the failure rate, but that probably ties in closely with #1
Forget starting a business if your priorities are not business first.
I've considered it.
1. I don't want to be away from my family as much as that would require to get the business off the ground and running.
2. I really don't want that much debt - especially since we just bought a house as well.
3. Then there is the failure rate, but that probably ties in closely with #1
Honestly then the tool business is not for you. There is more Money in owning a Snap-on franchise than there is being an independent tool dealer for every other manufacturer, considering you can still be a distributor for other brands while running your franchise.
I've done both. Can't get into too much detail but just from those 3 statements I'd tell you to not even bother.
How do you want to sell them and what market do you want to sell to? There are about 20 threads on selling through a tool truck and I recall almost everyone having a difficult time starting out.
You could also go the route of buying auction lots kinda like HJE does.
Being successful running a Snappy truck has more to do with the mentality/attitude of the driver than anything else. They give you all the tools you need to succeed. If you follow the program and have half a brain, you will succeed.
I was thinking of starting out selling from my garage to the general public, selling quality tools that professionals would want, and then maybe moving to a store front if I could get enough business. I enjoy tools and am basically looking for a way to earn a little extra income for my family.
Find niche tools and resell on the web.
Most professional want the catering a tool truck brings.
Brick and mortar tool stores are dying unless you serve an area loaded with industry but less and less mechanical industry is more the norm.
I just think of all the industry located on Long Island in the 70's and what is available now.
So good luck
Your initial question is about inventory and your later statement about not wanting to go into debt narrows your options. You won't be able to buy wholesale and offer a robust inventory. Wholesalers won't offer you much of a break. The manufacturers won't see much value in you as a distribution path for their assigned inventory.
If you want to sell pro tools out of your garage you may have better luck offering a variety of used tools you pick up from wherever cheap and flip. Your value add is identifying quality on the secondary market.
Honestly then the tool business is not for you. There is more Money in owning a Snap-on franchise than there is being an independent tool dealer for every other manufacturer, considering you can still be a distributor for other brands while running your franchise.
I've done both. Can't get into too much detail but just from those 3 statements I'd tell you to not even bother.
I appreciate your honesty! Are you able share more of your experiences through a PM?
And to clarify, what I meant by my first comment is that it seems to me, from the research I've done, that to make a go of the tool truck, it's essential, especially at first, to be showing up consistantly, be personable, helpful, and make your presence known at your stops, if your going to be successful.
You need to do the routine for years and be consistent and service the same place at the same time weekly.
Clients want routine and regular stops so that you build a trust, I meet my dealer every tuesday about 1pm at a stop in town. I hang out with him for about 30 minutes other non scheduled people will also show. But no discount and everybody pays the same price, with SO reporting to Sales tax the driver must be accurate with the numbers. Plus if you give some people discount word will travel and you will get issue from it. If you play games the clients will hear it.
New dealer in town two years before he started to make inroads, the previous dealer was a ***** and he was tossed out of more shops until SO dumped him. Now I know many of the shops he services and he is now getting big orders but with every shop he had to let them ***** about prior dealer before he got anywhere.
This is a REALLY BAD IDEA. I've been selling TOPTUL out of my garage for three years now and if I wasn't rich before I started this I'd be destitute now. This market has no place for anything but Tool Truck Brands and Harbor Freight. Ignore my advice if you wish but of all the businesses I can think of this is without a doubt the worse. There just isn't any money in it. It's only a hobby to me and I'm getting tired of it even at that level. If I was depending upon tool sales for my living I'd look like a Holocaust survivor when they were rescued from Auschwitz. Skin and bones.
I've been kicking around the idea of getting into selling tools. Does anybody know of any good contacts/companies that I could buy wholesale tools from? Would I do better picking a certain manufacturer and becoming a distributor for them? I'm thinking mostly hand tools, mid grade or higher. Thanks!
To actually answer the question you asked:
http://medcocorp.com/
Probably half of the tools I buy online are drop-shipped from MEDCO.
I don't know what it takes to get a dealer account, but if I were to decide to sell tools, this would likely be a starting point.
I have dabbled in used tools and an irregular route of friends and friendly shops.
They always want cheap and quality. Always metric and combo wrenches 8mm to 18mm. Ratchets sell slow for not being a buck or less and quality wrench sets attract tire kickers by the dozen.
But that is my area. I do best with import combo wrenches, pliers and screwdrivers. I can flood the market alone in a month and have to wait four months to get sales again.
So obviously it's just for fun. No way to make any living on it. fix and flip other things too just to fill up the lulls but it is just a way to pass time.
An addition to my earlier post. I also sell used tools from both my collection and friends/family and pick up deals from estate sales as I go along as a hobby. If I was to treat it as a business to put food on the table I would have to be about % more aggressive in finding deals and things to sell. Sometimes ill get massive amount of purchases in a span of 3 days where I'm bringing a box filled with items to drop at the post office. Other times I might not sell anything or get even a tire kicker for a week or more.
My best advice would be to just start doing it as a hobby and find a niche of the market you like and see if you want to go any further. I think I turned my first profit of my initial investment equivalent to 2 months rent basically after selling about 90 items.
Now the items I get now are played by the "profits" of the previous one as well as giving me a chance to upgrade my own things as I go along.
I've considered it.
1. I don't want to be away from my family as much as that would require to get the business off the ground and running.
2. I really don't want that much debt - especially since we just bought a house as well.
3. Then there is the failure rate, but that probably ties in closely with #1
With these caveats, sounds like you should be selling stuff on eBay. It will take a lot bigger mental and financial commitment to have a any chance of success with a bricks and mortar or route sales business model.
If you can find a reasonable inventory source, maybe a consider a booth at swap meets, car shows, etc?
There is no easy, convenient way into retailing. Things are not always what they appear to be. The mark up might look attractive at first but the expenses to shelf and move the tool can easily kill that. You bust your *** for a couple years and break even before you begin to see any real profit. If you're just starting out, you will make more money getting a part time job at a local hardware store or home center for minimum wage. Along the way, you get the experience you need should you decide to go independent. Going independent without that kind of experience is really no different than diving off a high dive not knowing how to control your land.
You will have a very limited inventory and the prices will be the same (at best) than what can be bought on the internet or an already established B&M store.
Why would i want to go to someones home garage to look at a sparse amount of tools whereas I can go to a website and get it delivered to my door in less than a week and have it exactly what I want?
Also, don't forget the zoning laws for having a walk-in business at a residence, the insurance costs of a business in a house that has walk-in customers, taxes will go up, and depending on where you live, neighbors might not appreciate the new business either.
Honestly, you need someone else to take on the crushing debt of startup and that is by working for someone or something (a company). For me, I think a good retirement job would for me to be a Kimball-Midwest salesman. I would bide my time until an opening came up to take over a bunch of accounts that someone else either walked out on or retired from. Instant customers. Unfortunately you are not a tool seller really. You make more money on fasteners and drill bits than the sketchy tools Kimball sells. Maybe Fastenal though. They have a wider range of tools that are not branded by them but rather the brands everyone recognizes like Dewalt and such.
You need to do the routine for years and be consistent and service the same place at the same time weekly.
Clients want routine and regular stops so that you build a trust, I meet my dealer every tuesday about 1pm at a stop in town. I hang out with him for about 30 minutes other non scheduled people will also show. But no discount and everybody pays the same price, with SO reporting to Sales tax the driver must be accurate with the numbers. Plus if you give some people discount word will travel and you will get issue from it. If you play games the clients will hear it.
New dealer in town two years before he started to make inroads, the previous dealer was a ***** and he was tossed out of more shops until SO dumped him. Now I know many of the shops he services and he is now getting big orders but with every shop he had to let them ***** about prior dealer before he got anywhere.
This is partially true but I turned a route around in under three months because techs were tired of ****** service from previous dealers. So it won't necessarily take him years to be successful and profitable.
This is partially true but I turned a route around in under three months because techs were tired of ****** service from previous dealers. So it won't necessarily take him years to be successful and profitable.
Depends how long the previous dealer screwed up this guy had his route since the early 90's and had pissed off more people. Typical of human response he blamed everybody else for stuff, SO did not ship- warranty was not honored by SO for abuse. Just games he played or my favorite was I did not sell you that so I will not warranty it.
But you can always find a version of the facts to suit you on the internet.
But it pointless anyway op wants a successful business with out extra output and hassle.