NEWS & PR

Growing Up Fast - The THS Success Story

06 May 2005

To celebrate the 30th Anniversary of THS we have included an excerpt from an article from THS founder, Ken Yarker written for the first ever issue of "Newslink" (now Trade Counter) published in 1980 and tracking the early years of THS.

THS Tools Limited is a success based on “togetherness”. I have always been a pro-distributor man right from my early days at Clarkson. Why? Because I believe, quite emphatically, that it is the best way for a manufacturer to achieve market penetration i.e maximum sales at optimum profits.

When after heading up E T D Tools Limited (Qualcut and Monks & Crane), I returned to my own consultancy business in the Spring of 1975, an idea kept nagging me. The idea was simply based on the harnessing of the purchasing power of the independently owned stocking distributor – the backbone of our industry. Such distributors were, and are, constantly coming up against the ‘Multiples’ who have their own purchasing power. The situation was not unlike the High Street retailer who had chosen to fight back by joining such purchasing organisations as V G and Spar.

I suppose it was a question of “Gamekeeper turned Poacher” when I approached Gordon Salisbury of Fred Males & Co Limited, Bristol, and sounded him out on the possibility of a collective purchasing and marketing organisation for distributors of engineers’ tools and allied equipment. Gordon’s reaction was immediately positive and the conception of THS Tools Limited had taken place.

Gordon and I decided to ‘have a go’ and preliminary soundings concluded with a meeting of some twelve distributors at The Three Horse Shoes Hotel, Rugby, in the middle of 1975. The concept was discussed in detail at this meeting, and the end result was that THS Tools Limited (yes, named after the hotel!) was born. The founder member companies of THS Tools Limited, for the record were: -

Fred Males & Co Limited, Bristol - Gordon Salisbury
Engineers Supplies (Salford) Limited - Ken Greenwood
Metric Tools Limited, Halesowen - Keith Prince
Gordon Richards Tools (Coventry) Ltd - Gordon Richards

The men quoted, together with Cliff Cooper a practising solicitor, and myself constituted the first THS Tools Limited Board of Directors. Deacon & Co, (Clive Jones) were appointed auditors and Gordon Salisbury was elected Chairman. Incidentally, Gordon was Chairman from 1975 until 1978, what I call the ‘formulative’ years, and carried out a wonderful job.

The THS ‘child’ took it’s first major step with a meeting in September 1975 at a Leicester hotel. Another 12 companies attended and the Board presented the facts. As a result, seven more companies joined THS.

Going back to 1975, following on Leicester, a further meeting was held in London. A further four recruits joined following this meeting - THS Tools Limited was growing up fast!

At this time, the latter part 1975 THS had only five suppliers and they came forward first more in hope than anything else at that time. It was, to say the least, tough during the years 1975 – 1978. I remember our first month’s turnover of real operation was only £1,500. THS was operating against a background of problems of: -

Initial Recruitment of Distributors:
Suspicion – the deal being offered was just too good to be true.
Initial Obtaining of Suppliers:
Some suppliers were downright ‘anti’ THS as our ‘collectivism’ interferes with the traditional ‘Divide & Rule’ policy exercised by some manufacturers. It is interesting to note, however, that some manufacturers who didn’t want to know us some years ago are currently making overtures. THS is professional enough to be able to forget past attitudes and look upon any approach coolly and clinically.

The problems of the early years have been overcome. As at September 1980, we have 39 distributor members and 50 suppliers.

I believe we shall have some 45 members by the end of 1980 and some 60 suppliers. As a result, I am reasonably confident that our 1980 figures will show a 75%+ increase on our 1979 figures, in spite of the overall economic problems which the UK has at the present time. I am convinced great times are ahead, and as a result, I am sure the type of growth which THS is experiencing at the present time will continue.

It is probably a good time to stress the point that THS is YOUR company. It should be used as an additional arm to help achieve maximum gross profitability for the individual member companies. THS does not seek to replace any members’ Purchasing Departments, but simply to augment it.

"It'll never get off the ground."

From my own personal view, I get a great kick from seeing THS grow, especially in view of early utterances such as “It will never get off the ground”. I enjoy working with a Board of Directors who are also “Go, Go”. More importantly, I like the togetherness ambience when I visit members. It is, and will continue to be, a project to be proud of. Remember, however, Oscar Wilde: “There is always something about your success that displeases your best friends”

THS will grow from strength to strength providing we all pull together.

Special thanks to Marjorie Yarker for allowing us to publish this.