One way to make some noise in your market is merch.
I’ve been in the hand tool business since 1977 and absolutely nothing sells tools better than hats and t-shirts. Last I checked, you can get OK-quality shirts with logos on them for less than $5 and hats for about the same.
Giving away a $5 hat on a $200 sale will get you a lot more business than a 10 percent discount and cost you a lot less. A $200 sale at 40 percent gross margin will net you $80. Subtract the $5 for the hat and it’s still $75 in your pocket. Compared to a $200 sale at a 10 percent discount, where the price goes down to $180 minus the $120 cost, and you end up with $60 in your pocket.
About the Author
Alan Sipe
President, Toolbox Sales and Consulting
Alan W. Sipe has spent the last 42 years in the basic hand tool industry including positions as President of KNIPEX Tools North America, Sr. VP Sales and Marketing at Klein Tools, Manager Special Markets at Stanley Tools and sales management at toolbox manufacturer Waterloo Industries. Currently Sipe is the owner of Toolbox Sales and Consulting specializing in sales strategy, structure, development and training. Sipe can be reached at [email protected] or 847-910-1063. Connect with Sipe on LinkedIn.
