Our relationship with Consumable Solutions began in 2010 when Sam developed his workshop consumables business. Sam approached Adams Gas, realising there was a simple additional profit opportunity he could capture.
Adams Gas is one of the biggest distributors in the South East, supplyinggas productsto our reliable stockist network up and down the country.
In this case study, we’ll focus on the work of Consumable Solutions and discuss our relationship with the stockist, highlighting key success areas, business development, distribution and logistics.
Our Relationship with Consumable Solutions
Consumable Solutions is essentially an on-vehicle shop for workshop consumables, equipment, and, importantly, gas. Sam sees this relationship as key to his business, and at one point, he commented that he has been tempted to concentrate solely on the gas business.
The strengths of our relationship with Consumable Solutions include:
An easy sell
No real price objection
No major price competition
The rent-free proposition is much more palatable than a BOC approach
Additional benefits for Sam include the attractive ‘mark-up’ and that Adams Gas have good experience in technical, sales and support areas.
Consumable Solutions Business Model
Sam has a unique on-vehicle business model. The proposition is that his customers deal with him and can purchase from van stock or place orders during the sales call. As the sole employee, with the exception of hiring a driver to handle higher volume gas deliveries, Sam is often praised for his consistently high level of customer service.
Compared with other consumable products, the margin is favourable, and he averages around £4,000 in sales revenues every month.
Consumable Solutions Marketing and Sales Strategy
Sam’s marketing efforts are entirely focused on personal selling. He spends time targeting areas he wants to address, then visits sites to introduce himself and his on-vehicle range (his mobile retail shop). At the moment, he has no website and doesn’t use direct marketing or telesales.
The primary customer sector for Consumable Solutions is welding, but Sam also markets the full range of Adams Gas products to his customers and has ventured into supplying events, cellar gas and licensed trade, aquatics, agriculture and touring cars.
Distribution and Logistics
Sam usually collects stock twice weekly from the Adams Gas base in Margate, keeping his on-vehicle stock as low as possible. He keeps two vehicles on the road, for times when the numbers of gas orders would overload his main transportation van.
He has recently bought a secure container and is renting space from one of his customers (a farmer), which will enable him to consider deliveries from Adams to his new storage site. Sam is also actively looking to improve his terms in return and thinking about volume discounts — as he prefers to operate with little or no debt.
Business Development
At present, Sam is almost at full capacity. A key part of Sam’s proposition is himself and his informal account management approach, including regular physical calling — the mobile shop stimulates impulse purchases and ensures he has repeat business and excellent customer retention.
Consumable Solutions is mainly a cash business for both gas and workshop consumables. Some of his larger customers pay on invoices and have a credit account with him to manage cash flow effectively.
Adams Gas Continues to Build Relationships With a Wide Range of Industries
As a reputable gas supplier, we’re proud to have ongoing relationships with various businesses across the UK. We look forward to continuing to push the boundaries of our business opportunities and services for our stockists.
If you’d like to learn more about how we can help your business by becoming a stockist for Adams Gas, please get in touch.
