Last spring HTS Engineering, Ltd. opened their second parts store in the Toronto area, just 20 minutes west of downtown. With their main location as much as an hour away (depending on traffic) from the prime downtown market, they realized many contractors did not want to make the drive to pick up needed parts.

Considerable time was spent researching the market and shopping potential sites, with proximity to both downtown and competitors being the primary deciding factor. Getting in to an area where contractors are already shopping makes it more convenient for them to stop by. Additionally, with the new location being on the west end of downtown, they’re tapping into a customer base they had not been able to easily serve previously. The time spent on research paid off, as they exceeded revenue expectations for the first year!

Several factors played a role in HTS’ success in year one, aside from location. For starters, the new site is staffed with two experienced inside sales people, with outside sales support coming from the existing outside sales team. Having professional and knowledgeable staff from opening day onward has helped HTS gain the trust of new customers in this market. Additionally, HTS excels at listening to customers. By learning what other products this new customer base is shopping for, they have adjusted their inventory mix to include more of the parts their customers need. They also spent time informing their existing customer base of the new site via phone and email, driving additional sales.  Finally, the well-designed showroom is both attractive and functional, featuring a wide variety of high-turning products such as belts, hoses, and chemicals.

When done correctly, with time spent properly researching market conditions and needs, adding a second location can be a major boon to your bottom line. So much so, in fact, that HTS is already budgeting for a third Toronto location on the east side! We look forward to watching HTS Engineering’s continued growth in the years to come!