Confidential Business Plan: Do not distribute or copy this document without permission 7
Within Moncton, our research shows that the annual total expenditures on home workshop tools and
equipment is $6,306,133 annually or approximately $187 per household. This accounts for 11% of the
total household equipment purchases totaling $974 annually. Most of these expenditures made by
residential consumers are on power tools or other related tools.
Figure 1 Source: IBIS World Industry Research
We have segmented the needs of the market based on the demographics. Residential contractors are
likely to be price focused on the longer term. However if we can provide them with more flexibility in our
services than the Home Depot, they may be willing to trade-off the higher price for more flexible service
terms. Some contractors may also need smaller custom orders, particularly smaller contractors. We
believe that our main market within the residential contractor segment will be smaller firms and individual
Within the home improvement sector, consumer needs vary quite dramatically. However many will want
to quickly pick-up items on their way to or from work and may need to have the staff educate them about
the products. Larger companies such as home depot are quite large and require more time in the store to
purchase items, their staff are also more widely dispersed and less educated about the products because
they are so large in number. We can focus on this customer value point by providing quality service, speed
and expertise to consumers.
E-commerce is growing a posing a threat, however, purchases by homeowners are likely to not as affected
as other industries. Many building materials and the weight of tool shipping costs offset and value that
would otherwise be gained from shopping online for small electronics or media.