Hose to go

Taking a tip from retailers, hose and fluid connector distributors have successfully opened new business opportunities by expanding their walk-in traffic.

by Richard Vurva

You might not think of hoses and connectors as the types of products that appeal to walk-in customers.  But by taking advantage of merchandising and marketing support offered from major manufacturers, and using ideas gleaned from retailers like Home Depot, several hose and accessories distributors have generated a considerable amount of profitable retail traffic. The key to success, according to distributors and manufacturers who promote the concept, is getting these products out from behind closed doors.

“A customer might be coming in to pick up a hose assembly or a valve and not realize all the other products available,” says Harry Waldron, ParkerStore manager for Parker Hannifin Corporation’s Fluid Connectors Group. “With a retail environment setting, we’re able to get the parts out from behind the counter and expose them to the customer.”

Ed Ruttan, manager of channel marketing and e-business for Eaton Aeroquip, adds: “Most distributors hide their products behind a wall and make their customers guess whether they have it in stock. With Aeroquip Express Stores, we get the products out front where customers can see them.”

The idea is to create a clean, well-lit environment that displays a wide variety of clearly labeled products so customers can browse while waiting for a custom hose assembly to be completed. Chances are good the customer will purchase additional items. At the very least, they’ll frequently discover products they didn’t know the location carried in inventory.

In addition to helping distributors sell more hoses and accessories, retail space boosts the sale of complementary product lines, adds Ruttan. Aeroquip requires that at least 40 percent of the inventory on display at participating Aeroquip Express Store locations be Aeroquip products, but encourages distributors to expand into other product areas. He says that after opening an Aeroquip Express Store, one distributor sold more spray paint in a single month than it sold the entire previous year.

One way the company supports its distributors is to suggest other products that customers typically buy, says Brian Milek, an Aeroquip Express program manager.

“When a customer comes in to the store with an abraded hose, they need to replace the hose, of course, but they also may need to replace the lubrication in the system and clean up the mess. So, it just makes sense to develop a kit with gloves, safety glasses, absorbent mats and other products the customer may need,” he says.

Keeping up appearances
In addition to helping distributors choose display products, Parker and Eaton offer other forms of assistance. For example, they conduct market research to help distributors determine where to locate a store, suggest floor plans to optimize traffic flow, provide indoor and outdoor signage recommendations and even offer help in buying shelving and developing marketing and promotional activities.

“We have a catalog of furniture and merchandising items, promotional items, marketing materials and mailers, all critical components of launching a ParkerStore,” says Waldron.

First introduced in 1995, ParkerStores now number more than 400 worldwide. Waldron says the concept originated to help OEM-focused distributors expand into the MRO market for hydraulic and pneumatic products. Each store stocks more than 3,000 items, including all major tube and thread configurations, hydraulic and pneumatic hose and fittings, thermoplastic hose and fittings, brass fittings, ball valves and quick disconnect couplings. After acquiring the Dayco Fluid Management business last year, Parker now offers Dayco air and water hoses at its stores.

Aeroquip developed a manual that provides a 180-day, step-by-step plan for a distributor to follow that covers everything from site selection, market analysis, floor layout and a financial model to determine investment payback. 

A clean, inviting retail setting with uniform signage and color schemes has obvious benefits to the local distributor but also helps the sponsoring manufacturers build brand recognition. 

Lessons from the big boxes
Do-it-yourselfers and contractors love home improvement centers because of the wide variety of products and prompt, friendly service. Hose and accessories distributors can copy those traits.

“People wonder why folks go to Home Depot to buy one thing and walk away with six items. It has to do with good service, great merchandising and a wide variety of products,” says Ruttan. “When customers come to our stores, we have to offer the same thing.”

When customers stop in at his Aeroquip Express Store, Robert Geib of Geib Industries in Franklin Park, Ill., goes even further than the big boxes to make customers feel welcome. He buys them lunch. Geib offers walk-in customers free submarine sandwiches, soft drinks and coffee.

“People tend to be more relaxed if they can have a sandwich and a Coke while they’re waiting for us to fabricate a hose for them,” Geib says.

Geib always had a fair amount of walk-in customers, but retail sales jumped 15 percent when he recently relocated to a new, high-traffic street in this Chicago suburb and introduced the Aeroquip Express Store concept. He says the retail side of his business now accounts for about 25 percent of the company’s total sales.

At the grand opening for his store, Geib drew more than 700 customers, many of whom had never seen his facility before. A massive window at the front counter frames the custom hose assembly operation and provides a view into the company’s production area as well.

Eaton requires participating distributors to install a window between the store and their shop.

This article originally appeared in the September/October 2002 issue of Progressive Distributor. Copyright 2002.

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