Discuss 365Drills... Are we IDIOTS? or is this the best thing for us to do current climate in the British & UK Tiling Forum area at TilersForums.com.

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Fekin

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

I must say I don't often watch shopping channels, more like I see whats been sold as I flick through to something I want to watch really, but I generally think things on TV channels like that are normally total crap, though I have seen a couple of things from youtube clips of shopping channels that have looked quite good.

I can't really see how it's could have a bad effect on you, unless major retailers avoid the product once it's been shown for some reason.
 
S

Saltire69

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

Would go for it Rich. But do it yourself (more exposure for you). You found the contact or he found u but liked u and the product. Why give Artic the lions share, he did nothing for it. Nothing ventured nothing gained. Good luck.
 
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Colour Republic

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

OK before I say anything else I have to mention that I do have some experience when it comes to distribution, Although I started building 14 years ago, I spent 4 years of that working for a record company during that time I convinced the company to set up our own distribution 'In-house' as I was convinced we could do better, I went on to set that distribution company up. It wasn't a BIG record company but big enough turnover was £2m a year...

I now wish I might have been a bit more brutal with regards to 'The Sun' promo, I along with many others said it might not be the best avenue for you. I didn't catch the end of the thread but from what I can remember I think the general consensus was to not go there. I have to tell you I think you cheapened your brand then a lot more than any shopping channel ever could (disclaimer: that does depend on the shopping channel).

Now comes to your distributor. I spoke to either you or one of your staff a couple of months about a possible discount through this website and I was pleased with how polite you or your staff was to me. I was also aware that you are a young growing company so wanted to give you business (the old British sprit of supporting the underdog) I was going to order but it turns out later that day that I couldn't wait for delivery as I needed the bits that day (you may have fast delivery, but not that fast) so I plod down to my local tool supplier and buy a bit, now feeling guilty seeing as you'd been so nice I decided to plug your company, I say to the guy behind the counter "these aren't the bits I won't, have you got any others?" - "no sorry mate, we do others but they're order only' - "Cool, do you do them 365 drills?" - "who?" - "might be called Arctic 365 drills, or arctic might be the distributor' - "never heard of them mate" It has to be noted that a) I was speaking to the manager and b) they are the largest tool supplier in Brighton, so they deal with all the distributors.

I then made out I'd used 365 before and how great they were and asked them to see if they could get some in, for next time I needed some. Pointing out they were cheaper then the bit a bought and lasted longer


I went on to do this in 4 other places over a few weeks, still feeling guilty about not getting a set off you. The same thing was said, never heard of 365 or Arctic distribution, two of the places were 'Plumbase' and 'PTS'

Now I don't know how hard it was for you to get a distribution deal in the first place, if many people turned you down or not. I can see how you don't want to upset your distributor but you say 'Internet sales are good, retail is crap' now I assume you control the internet and your distributor handles all other routes to market. Well Sir they aren't pulling their weight! I find it highly amusing that they want to piggy back on your success with the shopping channel by effectively rebranding your product 'Arctic 365 drills'. This has all come about by the Ideal expo. Now the only way I can see if he deserves a slice of the pie is if he did a co-op deal with you on the expo, by that I mean did he pay half your costs for setting up your stand at Ideal? If he did then, yeah credit where credit's due. Either way, you are now the star product they stock, you are the one that has opened avenues for them, at absolute minimum you are in a strong position to renegotiate distribution percentage. By the way what is that? In the record industry it was 5-8% but I no idea for construction.

I'm fairly sure your distributor gave you a sales pitch about who they could get your product supplied with and some rough figures, have they met these or not? I don't know why but I seem to remember that you have been with your distributor for 1.5 years? If so that is too long for results, normally you should see real improvement after 6 months, if not; they aren't pushing your product.

Now I appear to be on an anti-distributor rant, but I’m not. I don't suggest you set up your own distribution as you're clearly not big enough yet nor have the contacts. What you do have is something to bargain with, you say the minimum order is 1000 through this shopping channel, take that and approach new distributors, tell them the interest you've had and sell yourself. One distributor I always see in tool shops is 'Toolbank', they always have point of sale displays and distribute 'Stanley' and 'Draper' amongst many others

So now for the Shopping channel, if it's someone like QVC then I would bite their arm off, along with their head and torso! Ok it might cheapen your product to the tradesmen ever so slightly but it was the same in the music industry when my company signed a deal with Sony, Artist would say but I don't won't to go mainstream I want to stay underground (whine, whine). We had to ask them what they would prefer, you can be so underground that nobody would hear your music outside of your bedroom or can spread the love through thousands even millions!

Why did you get in to this business? You must have risked a lot when you first started. You may have wanted to make a difference, you may have wanted to do something you love but nobody starts a business unless they want to make money. If you don't then start a God damn charity!

I don't sell tools and you have a much clearer picture of that industry right now, all I can tell you is you'd be a fool to let this pass you by. If you need any more proof the ring the makers of 'The Bricky', ask them how much they made last year, ask them how many countries they distribute to. Yes, not counties but COUNTRIES and if you don't believe them get their accounts online for about £5

Have I made myself clear? :smilewinkgrin:

I applogise for the numerious spelling mistakes I have made, but it's a long post and I'm not about to cheak it

THE END
 
Last edited by a moderator:
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cornish_crofter

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

Good post by Colour.

Like the Sun advert I don't think that this is the ideal avenue for you, but it's free and you will push the product.

The other avenue you've got is to 'dual market' your product. I'm not into marketing etc but thinking laterally, have you considered how your product could be used for different applications/markets?

OK, they were designed for tradesman who tiled and fitted out bathrooms or kitchens. However, have you brainstormed your team to work out other applications?

What other hard materials is the householder likely to drill through? Who else would buy your products? How would you aim your products and at whome on this channel?

Most products aimed at these channels are good at jumping up in front of the viewer as something that a housewife will use, or could find a regular use in the home. Unless you can tell the viewer that they are likely to find the drills as useful and get as much use out of them as a kitchen appliance that could be used every week, then you may not maximise this opportunity.

Having said that, the MD likes the item, which is a plus. He has faith in it. That IMO shouldn't be ignored.

In conclusion, I say - go for it. Although I've got similar reservations as I did for the Sun advert, this isn't costing you anything.

To be brutal, if it flops on the channel, then no one will have heard of it, if it does well then you'll make money. Win win.
 
D

Deleted member 1779

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

Hey thanks for that! - Interesting reading. Main points I pick up is

1) Yes its OK for there to be a distributor involved in our quest for retail.
2) Distributor should be doing MUCH more than has already been done
3) If this distributor piggy-backs my own hard one contacts then argue my case.
4) If distributor doesn't cut the mustard - look for others.
5) Check my reasons for starting the company. Is it still to make money.
6) Guard the TV deal and make it work for me - not the distributor.


First of all thank you for doing some leg work on our behalf and approaching retail shops. This is exactly what an independent marketing company told me we needed to do. To drive demand into retail from the ground up. You raised awareness about us so I am pleased and as I said above - I thank you (all of you) for that.

BRICKY: I actually spoke to Noel at Bricky and he has given me advice about the route to market via retail, via internet, via shopping channels. He even lists our product on his website ! See us on the Bricky website
His advice was positive about TV.

DISTRIBUTOR: It took months and months of me searching (and wasting my time looking) And then finally well when we were at Interbuild then we met Arctic. They were the only distributor to put their money where their mouth is and buy stock. Put into catalogue. And set about taking this to market.

PTS: About 2 years ago I went to see their MD Alan Ball at PTS. He told me he loved the product thought that it would fly off the shelves. On a £50 kit I put a £5 profit margin. He told me that each shop could sell three a week. He has 300 outlets. Put blunt thats 900 units per week. Or £4500 profit per week. Happy days. So what went wrong? Alans team realised we didnt have a distributor..... Sent us back to drawing board and so thats when we started the hunt for the distributor.

Someone else? Having been at this for 2 years I can honestly say that the number of distributors that have come up to offer help, take this on, try and move it, waiting in the wings...Is zero.

Arctic do have the ear of people like Toolbank, Wolsey, Wickes, PTS, B&Q and others (mostly plumbing) and I am told its a matter of timing. The recession is deep, buyers are scared, sales are down, our competitors do offer crude alternatives.

Is our distributor doing enough? My question is if having now done some marketing work and getting this to the attention of the buyers - what would happen if we then pulled the plug? My gut feeling is the important buyers would wobble. Why did it fail? Why did they pull out? What was wrong? Does that mean the product is not good enough? Maybe something wasnt as great as they made it sound? Was I right not to go ahead and place that big order?

I am told to be patient. These things take time. Its like chipping at ice. To wait. To not rush.

The Sun: I spent my own money testing The Sun. If it worked then I get all the profits. If it fails then I take the hit. I took the hit!

The TV: Yes I found them as a direct result of "The Ideal Home Show" which I paid for myself and when they approached me. They loved the idea and really want to go with it. The channel is one where you dont risk losing any money. They put it on. If it sells - it sells. If it fails then the stock comes back. No one gets hurt. Should the distributor get some of the pie? I think having read the post that my best bet is to negotiate hard. I need to tell them that it was my lead, its my product they want, and it was through my own marketing efforts that they came through. As they didnt PAY towards the costs of Ideal Home Show then they dont get so much. Also I have bills to pay. One of my machines broke down the other day and cost £577+VAT to get the heating head adjusted. Three hours work for the guy!

I think I will play harder with these guys until they come up with the deals...

TRUE STORY ABOUT PTS:

Having become impatient for results with distributor I funded my own campaign to contact ALL THREE HUNDRED BRANCHES of PTS direct. I went to the printers and had 300 postcards made. I went to Mackros and bought 7 x 48 catering packs of KitKats. I sat down and stuffed 300 envelopes with a message card and KitKat.:

The Message Read: Dear Manager of PTS Branch. Its always great to get something for nothing.. So have a break on ARCTIC. Here's a free KitKat.

While you are reading this can we just tell you that if you call our hotline right now we will send you a free sample drill pack for your best customer to try out.. We provide drill kits for hard tiles.

Ring this number and ask for your free pack. Enjoy the free gift!
-------------------
Result: Major complaints from branch managers.
-------------------
Why?: I made a mistake and had put a 2nd class stamp on. But the Post Office required a Large 2nd class. Postage underpaid. Each branch manager (or assistant) had to go to their PO and pay £1.32p to cover the fine and to pay the extra postage.

When they opened the letter to find out what was so important they read a message which says.. "Everyone likes something for nothing....." And saw a 50p kitkat...

Queue: Tumbleweed.... Angry emails from head office to ARCTIC (who had to do a massive PR effort). My take? - No such thing as bad publicity. Artic take? DONT GET INVOLVED IN THINGS YOU DONT KNOW ABOUT.
 
C

Colour Republic

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

A quick question about your distribtion deal. What rights have you signed over? I take it you can't sell to retailers direct, How long is the deal for? and is it a UK distribution deal or worldwide?

Also have you put any ads in the trade journals? and if so did Arctic go co-op and meet half the costs?

I'm a bit funny about how I recieve my post, if suppliers sends post out to me 2nd class (even if I don't have to pay extra at the PO:lol:) then I feel they are telling me i'm a 2nd class customer. I'm fully aware that the difference in cost for a large mail shot, from 2nd to 1st class is massive. But i still think I'm worth that extra spend.

In the record industry we created a 'Street Team' using our existing fans, if they managed to get us into a record shop we didn't already deal with then we would give them free entry to some of our live events or send them out a load of free merchandise. I know you wouldn't have 'fans' as such and people have a lot more time for music artists then for say the tosater they buy, but 80% of tradesmen are pervs so maybe you could get them working for you with the promise of a photo shoot with the '365 Girls' or something. I know the hire of the models aren't cheap but if it went well, every six months get your 'Street Team' together and treat them to a photo shoot and a **** up:thumbsup:
 
D

Deleted member 1779

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

Well I do love my grid girls! About the deal well amazingly its "goodwill". Each of us has the right to walk away. No contract is signed. No agreement is made. Its just meetings and telephone calls. And trust.

Now about them grid girls....

gridgirls.jpg
 
C

cornish_crofter

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

I was thinking much the same thing.

I am no professional salesman but it strikes me that one approach would be to target independent tile shops. There will be loads in each city.

Decision making is localised, so it all depends on how you can sell your products to them.

At the moment it is still a new concept. There are versions of this product out there but the chances are that the smaller shops haven't managed to source good deals on a lot of extras.

There is also one large discount store near me that has a tile section that would put CTD to shame. They stock a small range of tools etc, and like to annoy their competitors by being about 50% cheaper on most things!

If this product is going to make it into retail big time it may not be via the likes of the big tile stores.

Also, think laterally - what about hire centres for example? They have a number of calls from people looking to drill through hard surfaces and have burned out various hole saws etc trying to do so. For £50 they could come in and buy your set, which they can stick into their drill. The hire centre can offer them a cheap solution rather than have to turn them away.

In other words, think about how your product can be used and the people that will come looking for a solution that your gear offers.
 
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FreeD

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

wow nice pics! :prrr:

Can't you expand ure online presence...i can't think of one retailer online i've seen selling ure drill bits...surely if you get more shops selling ure bits online the demand will grow and eventually u'll have proof to show the bigger retailers how popular ure product is and be able to get in with them...surely alot of online retailers will give it a shot lower overheads and all that.

If the turd hits the fan then i'd hit the shopping channels to sell of all ure stock...not yet though.
 
D

Daz

Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

I missed this post first time round, so apologies for the late reply.

I can't add much more than has already been said except.....

I used to sell merchandising software prior to my career change. My customer base was (you've guessed it..) Merchandising and Marketing companies. There are a lot of businesses that have teams of part-time merchandisers whose job is to ensure that retail display and concessions are always fully stocked and correctly positioned. These people also do in-store demos.

My suggestion would be to get chatting with a DIY shed store manager and find out which merchandising companies organise in-store product demos. Approach those companies until one of them sounds credible and capable enough to get some in-store demos going. Obviously there will be a cost attached to this, so it will be a gamble if it is to pay, but worth it IMO.

You (we all) know that your product sells well once demonstrated, so I'm sure the stores will see the benefit too. If you can find a merchandiser to work with, I'm sure that you will soon have many outlets trying to hook you up with their preferred distributor, or talking about their "own brand" version.

BTW, I'd do the TV deal direct, I can't see any value add from your distributor..
 

chris.tiling

TF
Arms
5
1,063
Poole
Re: 365Drills... Are we IDIOTS? or is this the best thing for us to do current clima

Saw one of your kits in independant tile shop here in Poole (Tims Tiles) Agree that pushing through them is a good idea, but also pushing Arctic hard to work for / with you. Yes everyone is running scared of paying out money at the mo - but everyone is after a good deal / good product etc - and you have got it....just dont think Arctic are spending the time you deserve in promoting it.

I dont know or understand business and distribution etc as well as some of the other guys who have contributed, but what harm can come of doing the TV channel yourself - it was your lead from a stand you paid for - why should Arctic get a slice of that action? If they have to to keep things sweet, then it should be small and based on the results you can get them working harder for you
 

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