Professional Tool Distribution Business
Distribute professional-grade tools to contractors and tradespeople
Overview
Professional tool distributors generate $500,000-$3,000,000 annually with 25-45% margins.
In 2025, construction and skilled trades drive tool demand.
Revenue from power tools ($100-$1,500 per unit), hand tools and accessories (35-55% margins), tool storage and organization ($200-$2,000), PPE and safety equipment, tool repair services, and fleet/contractor accounts.
Services include professional-grade power tools (Milwaukee, DeWalt, Makita), hand tools and specialty tools, tool storage and gang boxes, safety equipment and PPE, contractor fleet accounts, and tool repair and warranty.
Successful distributors maintain deep inventory, offer contractor pricing and accounts, provide tool expertise, service tools sold, and build relationships with trades.
Contractors and tradespeople as clients.
Marketing through job sites, trade unions, construction companies, tool repair, and manufacturer programs.
Required Skills
- Tool & Equipment Knowledge
- Sales
- Inventory Management
- Contractor Relations
- Tool Repair
- Product Knowledge
Pros and Cons
Pros
- Recurring contractor account business
- Professional tools high-value purchases
- Tool accessories and consumables recurring
- Service and repair income
- Strong contractor loyalty
Cons
- Large inventory investment required
- Competition from big box and online
- Need tool repair capabilities
- Contractor payment terms extend cash flow
- Warehouse and retail space needed
How to Get Started
- Become authorized distributor for tool brands
- Invest in comprehensive tool inventory
- Build tool repair and service capabilities
- Market to contractors and trades
- Offer contractor accounts and fleet pricing
- Provide tool expertise and support
- Service and repair tools for customers
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