BUSINESSSUPPORT
SPONSORED BY SKS
SELLING ONLINE IS THE WAY FORWARD
Is the internet good or bad for our industry? It is a question that has often been asked when
a locksmith has quoted a price to replace a lock only to find the customer says, “thanks, but
I can get it a lot cheaper on the Internet. We asked DARREL WALTERS, one of the founders
of the successful internet business “LocksOnline,” for his take into internet selling.
“LocksOnline has been trading over
the internet for 13 years and I have
been in the industry for over 25 years,”
Darrel said. “I set up “LocksOnline” as
a natural extension to our locksmith
business,” he explained.
“Our geographical base is bounded
on three sides by water. So, in order to
grow our business we had to travel up
the M4 Corridor. Logic suggested that
perhaps a new route to market would
be to build an e-commerce site and sell
products to anyone who wanted to buy
locks and other security products on line.
In those days there were no data feeds
from manufacturers or wholesalers. It
was about painstakingly scanning images
from catalogues and writing our own
descriptions. It was a good day if we had
20 products on line.
“In an ideal world we’d rather not have
any competition, but within our first year,
we had competition, which we expected,”
Darrel added. “But it is not an easy ride.
“What we have seen over the last five
years are companies setting up on line
with data feeds from wholesalers or
manufacturers, which results in all the
sites selling the same products - with the
same images and descriptions. Selling
products in this way only gives a company
one advantage - price. We are seeing
companies discounting locks now by
unbelievable margins and it shocks me
that they have to sell so much to make
any decent profit margins. We know, as
do most in the industry, roughly what
companies can buy products for, so we
are also aware of what margins are being
made or not made.
‘Unless you have a
substantial amount of
backing, any SME may
struggle to set up effectively’
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THE NOV/DEC 2013 ISSUE
SPONSORED BY ADVANCED KEYS
“With large companies and the big
DIY sheds selling on line and with big
marketing budgets it is getting even harder
to find your market.”
So how does LocksOnline
intend to go forward?
“Like any forward-facing, proactive
company, we have a few aces up our
sleeves in marketing and promotions for
the company and products. “Selling on
the internet is no different to selling out of
your shop or from the back of your van,”
Darrel said.
‘It is all about personal
service and we try to do the
same. To run a successful
website is just a hard
as running a successful
website is just as hard as
running a successful security
shop or locksmith van.’
“It is all about personal service and we
try to do the same. To run a successful
website is just as hard as running a
successful security shop or locksmith
van. Everybody wants a slice of your
profits to promote you on line, like
advertising in the local newspaper, or
your local trade directory for bricks and
mortar businesses. We have full time
web developers and content writers for
our site, not really that much different
to an account departments or security
surveyors for a normal business. Our
shop front is our home page and is
fundamentally no different to your shop
window. It has to be updated and cleaned
on a regular basis - selling on the internet
is no different. In fact, it is probably more
important for us to have fresh content.”
We asked Darrel what advice
he would give to anyone
thinking on selling online.
“I have to be honest - selling on the
internet is not the way to an easy buck.
Probably six years ago you could consider
e-commerce as a cash cow, but no more.
There are so many jostling for position
and dropping prices, so unless you have a
substantial amount of backing, any SME
may struggle to set up effectively.
“Quality, service, value for money and
niche are the basic ingredients to set up
a website. If you have something that
someone wants you will sell it. If you have
something that everybody wants that your
competition has not cottoned onto, then
you could stand to make a lot of money.
This, however, could be for only for a very
short time before someone will copy you
and offer it for less. Continue to innovate,
be different and try your best to engage
with customers.
‘The internet is not oging
away and every business
needs to embrace its power’
“The internet is not going away and
every business needs to embrace its
power, and marketing potential.,” Darrel
emphasised.
“Even if you don’t sell on line you still
need to have an online presence. We have
all seen over the years the local trade
directories get smaller and smaller. It is so
easy now to pick up your mobile and get
the local number for the local locksmith
so, if you don’t have an online presence;
you’d best look into getting one.”
http://www.locksonline.co.uk
To read more, visit www.locksmithjournal.co.uk