Waiting for the annual tool show every year was my equivalent to being 4 or 5 years old and waiting for Christmas morning. It's the most important annual event in the mobile tool world. I'll personally never understand why any tool dealer would ever pass on the opportunity to maximize the success of their business.
The opportunity to purchase inventory at the best pricing of the year is just one of the many reasons I believe every dealer should attend a show. Other benefits include training classes, the opportunity to see all the new items, a chance to talk face-to-face with vendors with questions and concerns, and a place to share in the success of fellow dealers. Most importantly, it's the best way I know of to "recharge" yourself by simply being around a group of people who understand the challenges of running a successful tool business. Even though most dealers see hundreds of customers a week, it still can feel like a very lonely business to be in. Only your fellow dealers understand what it's like to have your first customer of the week tell you, "I forgot my wallet." It doesn't take long to amass a substantial "tool family." Seeing the "family" was the best way I recharged my personal batteries every year. That alone made the trip the must-attend event of the year.
Planning for the show will make a huge difference in the profitability of your business. Like most things in business, no plan leads to almost certain failure. There's a list of important things you can do to make the most of the event. Some of the planning for the next year, start the week you return to your route.
Create a savings account for next years show as soon as you arrive back to your route. The easiest way I know of to create a savings account for annual tool purchases is dedicating OPA credits to a weekly savings account. The goal is to grow your business to where you are obtaining volume discounts from your weekly purchases. Consider rolling those monies to a separate account. Most tool companies will put that money aside for you in an interest bearing account. Along with that, consider putting all your warranty credits in the same account. Believe me, you won't miss the credits off your weekly tool bill when you see how quickly that savings account grows. That savings account also provides a safety net throughout the year. If the unforeseen truck repair or unexpected expense happens, you have a plan B. This fund not only allows for tool show purchases, but helps to offset the time you miss from the route while attending the event.
About a month prior to the show, start talking with your customers about upcoming needs. Explain this once-a-year event will provide the biggest savings on almost every tool, toolbox and piece of equipment. Plant the seed of making that purchase at what's most likely the lowest price of the year. Many times I've made large purchase sales by calling my customer while being on the floor of the show. If your customer is on the fence about the purchase, that call could very well close the deal.
Create a tool show needs list for your customers to fill out. You can create the list by advertising the show with your own personal fliers and include the tool show needs list with the flyer. It not only provides a list of current needs, but it also might help you with decisions on other items to purchase for your truck's inventory. It's a given you'll miss out on sales and collections while you're at the show. I believe this is part of the reason some choose not to attend. It's a short sided opinion when compared to the money that can be generated from all the financial opportunities provided by attending.
Another part of planning to go to the event is creating incentives for customer's to set up payments for the week you'll be gone. Create a raffle for customer's who set up their weekly payment in advance. I prefer not to have tool-related items for the prize. TV's, X boxes, Visa or sporting goods stores gift cards are just a few of the items you may want to offer as a prize. It also helps to have a couple of smaller second- or third-place prizes so there's more of a chance of winning something.
One of the challenges of the tool business is the expense in taking time off. Self-employment doesn't have the luxury of vacation pay. Tool shows are usually in vacation destinations. Make plans to combine business with pleasure. Take the extra time to get some much-needed R&R and spend some quality time with your family. Tool shows usually have more events going on than there's time to fit in. It's fun, but it's also a lot of work. Take the needed days after the show to allow for the business trip to also be a stress relieving vacation. I can't stress enough, in the tool business you have a plan for success. Equally as important is to plan time for your family and yourself.
