How To Build A Successful Cutting Tool Supply Business
With over 5 decades of experience, here at Suncoast Precision Tools we've seen cutting tool supply companies come and go and we've learned a few lessons ourselves. Over the years we have seen what works and what doesn't, what makes the successful companies, and what breaks the unsuccessful. We're going to put together a short compendium of the peaks and pitfalls of the industry.
Market Research
It seems like fairly standard advice but that's because it cannot be stressed enough - the importance of good market research. You need to know what you're going up against, both in your local physical market and the digital one at large. You need to know what the competition is offering and how you can compete. Performing a simple Google search for "cutting tool supply" or grabbing a copy of Daedalus Consulting Inc's yearly reports will give you a good insight into the industry, they will present an analysis of the milling tools, drilling tools, turning tools and all the other cutting tools that are the best in market currently.
Pick A Specialization
Running a successful tool supply company is a very specialized niche and it requires that you know the ins and outs of the industry itself in order to anticipate your customers' needs. If you are not intimately knowledgeable of the tools of the trade and using them on a regular basis yourself you might struggle to understand what makes one brand or product stand out above the rest. This becomes even more important if you're trying to find a niche in your local area, for instance: if you live in an area with a thriving aerospace industry, it would benefit you to specialize in tools that serve that particular need.
Pick Your Brand
Making your cutting tool supply company stand out against the wealth of other established suppliers can be hard but you can find an edge or help yourself to stand out by building a brand. Perhaps you want to only stock companies and products made in the USA? Maybe you want to become the industry's premium diamond drill bit supplier? Whatever direction you decide to go in, it will help you stand out and position you as an expert in a particular field. You can stock other parts and products outside of your niche, but a focus will never hurt your trade.
Logistics
It's impossible to ignore the online market and still build a successful business at this juncture. Anticipating large online orders and preparing the necessary relations and preparations to ship your orders swiftly and efficiently will massively benefit your cutting tool supply business. Sometimes these orders are needed quickly in order for your clients to complete a job so a day's difference in delivery times can mean the world.
We know that quality service is the most important factor and value our customer satisfaction above all else. Our website is designed to provide in-depth and up to date information on all products and our knowledgeable and friendly staff are waiting to offer any assistance needed. Give us a call today to find out how we can meet all of your cutting tool supply needs.
