TTA AWARDS 2009

APPLICATION

®

PORSADRILL ®

TTA CATEGORY: BEST NEW INNOVATION (TILE RELATED PRODUCT / SYSTEM)

New ideas dont have to be expensive, just creative and effective. Dealing with a recession demands greater creativity from companies and those who sustain innovation will survive and often thrive as new opportunities open up.

A problem...and an opportunityHard durable tiles, such as porcelain, granite and marble, are growing in popularity – reflected by a 20% increase in sales. Unfortunately the hardness of these materials means installers, plumbers and tilers experience real problems drilling them, and some regret or even avoid these jobs because of the complexity, the cost of breaking the material and the costs of cutting. Until recently the only solution was hiring or buying diamond drilling rigs costing £300 upwards (plus additional costs of replacing pilot drills) or, just as expensive, getting tiles pre-drilled (for about £20 a hole) by specialist companies. While there will always be a market for industrial, long life, investment drills (eg Marcrist, Rubi and Armeg), there is a gap in the market for affordable, easy-to-use, shorter life diamond drills, provided they could deliver the same professional results.

Meeting the market demand for inexpensive, short life drillsThe innovative PORSADRILL kits dispensed with pilot drills and the associated complex water systems and were specifically designed by 365Drills to fill the gap for value for money drills. (And in this application we’ll show that, especially for the professional market, our system fills it better than recent less sophisticated, low cost offerings from Screwfix and Plasplugs who have now also recognised the gap). Our kits are designed to last for one project and our feedback shows extended drill life isn’t always the most important factor for installers: they may need a drill for just a few uses, they like a system they can add to customers’ invoices as a consumable, they like being able to accurately quote drilling costs and not having to worry about pricey kit being stolen and – especially in these credit crunch times – they appreciate the fantastic price of a disposable kit.

Appointing a distributor: 365drills researched the market and discussed the potential for this product with end users such as installers, tilers, plumbers as well as tile colleges, retail outlets and also the large sheds like B&Q, Focus, PTS, Homebase and concluded that the market would be too big for 365drills to handle by itself.

Richard Hazell (shown right) MD of 365Drills meets Nigel Stokes, MD of Arctic Products

Product launch to the retail market in April 2008In April 2008 the product finally launched to market after an initial delay in selecting an appropriate UK distributor, The reseller appointed is Arctic Products which will enable 365Drills to compete and supply in the volume sales arena.

WHAT THIS AWARD APPLICATION COVERS:

This application aims to demonstrate that a viable market exists for PORSARILL a low cost disposable diamond drill kit. It comprises the following sections:

What makes PORSADRILL unique?

The design breakthrough: removing the pilot drill

Outstanding value for money: our £49.99 best selling all-in-one kit

Showing a gap in the market exists for 365Drills high quality “value” drills: comparison with expensive “investment drills”

SHOWING A GAP IN THE MARKET EXISTS FOR 365DRILLS HIQH QUALITY “VALUE” DRILLS: COMPARISON WITH EXPENSIVE “INVESTMENT” DRILLS

SHOWING A GAP IN THE MARKET EXISTS FOR 365DRILLS HIQH QUALITY “VALUE” DRILLS: COMPARISON WITH OTHER LOW COST DIAMOND DRILL SOLUTIONS

External endorsements and feedback

WHAT MAKES PORSADRILL UNIQUE?Features

A non-slip drill plate secures the drill bit in place for accurate drilling and avoids breaking or chipping expensive tiles and any material.

7 piece “all-in-one” multi pack available: everything you need for a kitchen, bathroom or commercial project in one great value kit

Fits every drill, even cordless Flush drill plate allows drilling from any angle and in confined spaces Very fast and easy to use (full instructions given), less mess Our value range of drills use diamond, the only substance that cuts effectively through very

hard material such as porcelain tiles, marble and granite, – delivering the same fast, neat, accurate holes as industrial drilling rigs costing hundreds of pounds

Enables installers to take on premium paying, luxury finish projects Also form perfect holes in soft material like ceramic tiles and glass (results are so neat some

installers prefer using diamond kits for all their tile drilling) Designed to give excellent results for about one project (up to ten holes per bit in porcelain

rising to 200 holes on softer materials) Comprehensive range of 37 sizes (6mm to 125mm) making it ideal for professional installers

The design breakthrough: removing the pilot drillThe most expensive part of traditional drilling rigs is the centre pilot made of high quality diamond (or of cheap carbide in inferior systems). The purpose of the centralised pilot drill is to steady the diamond core while it bores into the tile - however they cause more problems than they solve, with carbide drill bits burning out fast and requiring cooling with a continuous jet of water.

The “eureka” moment was to remove the pilot drill and replace it with a simple guide plate to hold the core steady from the outside. This incredibly simple solution (for which a patent is applied for) not only slashes the production costs but also does away with arbors, adhesive pads and suckers, and complicated water systems – all that’s needed is a wet sponge held under the diamond hole saw. So there’s less set up time, less clutter and less mess, and you avoid staining grout or flooding areas that are not watertight. And in these environmentally aware times (witness the negative publicity Starbucks have attracted for leaving their taps on), our solution dramatically reduces water use.

Cost reduction has also been achieved through the diamond production process. Whereas costly long life drills have diamonds embedded into the metal which increases the drill life but also pushes up the price, we ‘dip’ the crowns into the diamonds, giving high quality results for the length of one job.

We have the ability to increase or decrease hardness and durability of the drills and have struck a commercial balance of ten holes per drill in the hardest C5 grade commercial porcelain

Outstanding value for money: our £49.99 best selling all-in-one kit. A total solution which cuts holes for service pipes plus small rawl plugs.Our best selling kit is our “all-in-one” Bathroom Fitters’ Kit. Designed as a total installation solution, it contains seven drill bits in five popular sizes, carefully chosen for their universal fit with a variety of the most common service heating and plumbing pipes and also the small rawl plug sizes for fixtures and fittings, together with a guide plate for accurate drilling – all for under £50. We also supply additional sizes. A full range of over 30 kits and all drill sizes is available for bespoke fittings.

The average bathroom requires up to 30 holes, for everything from mirrors and hooks to shower heads and radiator pipes. When you consider how much it would cost to independently source the different crowns needed for one complete project, not to mention the time and effort, it’s no surprise this convenient value-for-money kit is so popular. And, of course, it also makes an ideal ‘back up’ buy, providing the professional installer with all the sizes they’re most likely to need for a range of jobs.

BFKMX multi pack all in one solution - £49.99

The BFKMX “all-in-one” solution is an example of 365Drills working out what the professional market really wants – and then delivering it.

The BFKMX is capable of cutting service pipe holes into ANY tile with perfect results every time

SHOWING A GAP IN THE MARKET EXISTS FOR 365DRILLS HIQH QUALITY “VALUE” DRILLS: COMPARISON WITH EXPENSIVE “INVESTMENT” DRILLS

There are currently two markets for diamond drills: the first provides long life “investment” pieces manufactured by Marcrist, Rubi and Armeg; the second – and much newer market – is for low cost short life ranges met by 365Drills, Plasplugs and Screwfix’s value diamond range.

In this section we will compare our “one project” kits to the established “investment” drill ranges, to show that there is a gap in the market for both types of system, and that – especially in a difficult economic climate – value for money means different things to different buyers. In the next section we will compare our system with other “value” diamond ranges to show why we believe our system is the most attractive to professional installers.

A considerable price differentialAs an example, below is the well known Marcrist range of investment diamond drills (see pictures below ) and an RRP grid to demonstrate that the two systems are very different in cost and aimed at different markets.

Cost for the Marcrist starter kit is £92.83 (shown above left) Inc VAT

365Drills vs MarcristSIZE Marcrist Starter kit Total 365Drills Price gap6mm £92.83(x1) Included £92.83 £29.99 (4pk) £62.848mm £52.64(x1) £92.83 £145.47 £29.99 (4pk) £115.4819mm £58.65(x1) £92.83 £151.48 £44.99 (2pk) £106.4926mm £64.04(x1) £92.83 £156.87 £44.99 (2pk) £111.8865mm £86.95(x1) £92.83 £179.78 £49.99 (1pk) £129.79

For an installer to use a Marcrist drill they must first purchase the starter system at £92.83 (see grid above). However, even if you remove the starter system the price differential is obvious. When comparing drill life it is also worth noting we put more drills in our small size packs: 6mm and 8mm are quad packs to increase lifespan to fourty holes per pack. While the price differential can be partly explained by claims of an extended drill life for the Marcrist range, not every installer needs a long life drill or is prepared to pay the extra money for it. For example, a customer with a few bathroom accessories to install may be happy to pay £29.99 for a pack of our 8mm drills but might baulk at paying £145.47 for the Marcrist equivalent.

Both produce clean, precise resultsBoth the long life drills and 365Drills’ “one project” value drills allow rapid, easy penetration through very hard materials to deliver an identical neat finish quality, but the 365Drills system does it for less money.

Customers sometimes prefer a low cost or simple to use option over extended drill life with increased purchase costs.We believe the long life investment drill ranges by the likes of Marcrist and our disposable, value for money drill kits appeal to different markets with different needs. Additionally some installers buy both types, supplementing expensive rigs with cheaper kits for one off sizes and jobs.

Who is buying PORSADRILL from 365Drills?

INSTALLERS….

Who can’t or won’t spend money on investment drills – Prices of £300 upwards for long life diamond drill rigs – plus additional running costs of £25+ each for pilot drills that tend to burn up very quickly – are a significant barrier to purchase for some installers.

Who may just need to make a few holes or need a drill for a couple of uses – not everyone is a full time installer, some work as a second income. Equally in the course of a year a professional installer may have only one or two projects that require an 80mm drill and so may buy a short life 365Drill to supplement their existing “investment” kit.

Who want a quantifiable cost (eg £49.99 for “all-in-one” kit) that can be added onto a customer’s invoice as a consumable – the very fact that our kits are disposable and last for one project mean they can be built into a job cost increasing the installer’s profit. Plus the installer can leave the kit behind for the customer to finish their project.

Who prefer to know and quote their drilling costs in advance – the fixed price of our drill kits per project also helps installers accurately estimate their costs and price up a job.

Who impulse buy ahead of jobs or like to keep a spare available – with the majority of our kits priced under £50, keeping a spare is feasible. Likewise our £49.99 “all-in-one” kit, compact enough to be displayed at point of sale, is an ideal impulse buy for installers who like knowing they have most of the sizes covered “just in case”.

Who don’t want to worry about expensive kit being stolen – they feel much happier about leaving a low cost drill kit in the back of a van or on site or in night storage than a £300 drilling rig.

Site managers who supply our kits to sub contractors – rather than lend expensive drills and risk losing them or having them abused, if a manager has say ten installation teams working on a site they may prefer to assign one of our drill kits per bathroom, knowing the lifespan is guaranteed to get that job done.

Who require an unusual size drill bit – 365Drills offers the most comprehensive size range of drill cores whereas a leading “investment” brand like Armeg only offers seven crown sizes. And if an installer does need an unusual size, it’s likely to be for a one off job, making our disposable “one project” drills the ideal solution.

Who Have been recommended on job sites and by others.

Holes take approx 3 to 5 mins in hard tiles

PORSADRILL Product advantages for Retailers

The all in one kit provides a comprehensive solution for customers so both the customer and the retailer are not required understand all the correct pipe sizes and the fixture sizes. Everything the installer will drill is provided for in one convenient well thought out kit. This makes the sale easy and painless.

The packaging is colourful and instructions comprehensive and clear for both retailer and installer to ensure an easy sale to the customer and responsibility for the product durability clearly passed back to us as a manufacturer. Bright yellow colour is attractive and eye catching and the colour of construction.

Confidence of installers able to drill holes easily enables them to work with the material and continue to recommend it to new clients who may want to purchase porcelain as an alternative to ceramic. Currently some installers prevent the purchase of hard materials having had a poor experience..

Project managers purchase in bulk numbers.Providing the kits as consumables allows installers to buy them as a product AHEAD of the next job and include into a basket of goods as part of a shopping trip of materials. It al

Tool Hire centres supply (sell) the kits rather than rent equipment which requires a cash deposit from customers and return of equipment. Traditional hire of diamond drill systems is expensive and requires redressing the hole saws. Plus the customer has to make two trips. The second to return the hired rigs. Selling a disposable kit lets the customer do the work and the retail outlet achieves profit.

Sweeteners sell more tiles. A retailer may give away the kit as a free gift to secure sales of hard tiles which may run into the thousands. Making the life easy for the installer by solve their drilling problem is a useful incentive to the customer and will secure the deal. The kits are also lightweight so rather than traditional freebies like a tub of adhesive which is heavy and left on a pallet these items can be placed at eye level behind the counter and then taken away by the customer from the point of sale.

Not all installers who need to drill holes are full time tilers with access to expensive drills. Supplying a customer with value for money kits will save their time and costs and profit the outlet with a 100% markup.

Porcelain tile sales are rising and retailers able to help customers with the most common complaint of material hardness can supply solutions thus helping the installer and leading to increased overall sales of this type of tile. The margins for retailers are excellent running to 100% markup in particular tile shops who do not supply tools will benefit from the sales of this kit.

The kits take up very little footprint within a commercial premises where floor space is at a premium. The retailer is able to profit from a very minimal storage requirement. Packs are also welded shut to stop theft of contents and very long life (no shelf life) so can be stored indefinitely in a warehouse or shelf or store room.

Transport and packaging of product is compact and light saving on packing costs and transport weight.

PORSADRILL…. Product advantages for installers

Recently qualified installers with little or no spare cash do not have to outlay for expensive capital equipment. Access to value for money tools which do the job to the satisfaction of both installer and client builds confidence in a job well done.

Installer can drill ANY material type whatever the grade of tile hardness or expense of purchase and without fear of breaking or slipping on the material or burning out drills. Porcelain has proved troublesome in the past for many installers causing them to prevent their customers purchasing C5 grade material. .

The ability to handle ANY material increases the availability of jobs to installers as they tackle anything from soft ceramic to hard commercial tiles. This allows tilers who previously either could not afford expensive industrial drills or who choose tiling as a second income the chance to compete and complete for many other jobs.

Drill Porcelain Perfect holes Drill Ceramic

The precision drilling results on any tile improves the appearance of the finish and in turn the workmanship of the installer. This develops pride in results and allows greater customer satisfaction and recommendation for other work by word of mouth and portfolio.

Kits are so simple to use installers can reduce drilling times to a minimum so the task is absorbed rather than a cumbersome time consuming chore requiring the setting up of water cooling systems, water jets, pumps, cleanups and expense of pilot drills.

Value for money drills are less inclined to be stolen from a van or worksite. Expensive industrial kits attract thieves. Theft of equipment is ever present and heartbreaking, must be replaced, involves insurance claims, lost time on site additional repairs to windows, toolboxes storage unit. A thief will not be interested in value for money kits as there is no resale value.

Knowing the drilling costs of a project in advance allows installers quote for jobs with accuracy and professionalism by using the upfront mathematics to work out the number of holes required and dividing by the lifespan of the kit.

Marketing the solution as a consumable allows installers to add the kit as a quantifiable cost into the job that can be met by the customer if the installer chooses to cost jobs in that way.

Project managers can allot multiple kits to teams for use in commercial installations like hotel rooms. Instead of issuing expensive commercial diamond drilling rigs that must be shared (and time spent waiting for them) the kits can be given to teams saving time.

SHOWING A GAP IN THE MARKET EXISTS FOR 365DRILLS HIQH QUALITY “VALUE” DRILLS: COMPARISON WITH OTHER LOW COST DIAMOND DRILL SOLUTIONS

However, we believe the following comparisons demonstrate that despite these other entrants into the low cost diamond drill market

the unique simplicity and ease of the 365Drills design; its competitive pricing; the fantastic value and convenience offered by the £49.99 “all-in-one” kit; and a range comprehensive enough to meet the needs of professional installers;

make it stand out in the short life drill market – particularly for a professional audience.

Plasplugs kits contain only ONE drill bit – 365Drills supply quad packs in the 6mm and 8mm sizes, then twin packs for many of the larger sizes. This can be very frustrating when the single Plasplug drill burns out, leaving the installer without a spare or back up.

Plasplugs are not as competitively priced – taking the 8mm drill as an example, Plasplugs sells a single drill for £15, so to buy the equivalent of the 365Drills 8mm quad pack at £39.99 would mean spending £60.

Their size range is limited to only small sizes – they only supply up to size 25mm so risk being overlooked by professional installers. In contrast we offer a comprehensive well thought out range of 37 sizes.

Plasplugs have forgotten the 32mm and 40mm waste pipes plus shower inlets at 30mm. We include these sizes in our kits as we believe they are important for our market.

Plasplugs have over engineered their product (see above) – and it is complicated to set up and use. The drill is held steady by means of a suction clamp and you have to clamp a water tank to the wall, with a different tank being used for each size drill – then clean up all the water discharged afterwards. Feedback also indicates the drill bit is liable to melt the plastic box due to the heat caused by friction. Our simple drill plate is effective and easy to use and all that’s need to cool the drill is one splash of water per hole using a damp sponge (which also reduces the dust), so very few problems occur with our product.

Plasplugs have a reputation as a “DIY” company – 365Drills have a well earned reputation for selling to professional installers and teach in seven tile training colleges.

365Drills vs Plasplugs Plasplug’s reputation is mainly in the DIY market whilst ours is for professional installers in the industrial and domestic market.

The second market for diamond drills comprises low cost, short life drill ranges. Two years ago, before the launch of 365Drills there was nothing in the market, but now two large companies Plasplugs and Screwfix have identified the potential of short life diamond drills, recently entering the market with their own “interpretations”.

365Drills vs Screwfix Direct one of the industry’s biggest players, spotted the gap in the market for a value range and swiftly acted accordingly, Screwfix now provide two solutions by adding a generic unbranded value for money range to their catalogue in addition to high value investment drills via Armeg.

The RRP grid below shows the noteable differences in prices and offering between 365Drills and the Screwfix value for money range:

SIZE Screwfix Cat number

Total 365Drills Pricegap

6mm £7.99 each 87575 x4 £31.96 £29.99 (4pk) £1.978mm £9.99 each 41877 x4 £39.98 £29.99 (4pk) £9.9710mm £11.99 each 71958 £23.98 £34.99 (2pk) £11.9912mm £13.99 each 98889 £27.98 £34.99 (2pk) £7.0116mm £18.49 each 64976 £36.98 £37.99 (2pk) £1.01 18mm £20.49 42053 £40.98 £37.99 (2pk) £2.9922mm £22.99 37050 £45.98 £44.99 (2pk) £0.9925mm £25.99 96666 £51.98 £44.99 (2pk) £6.9930mm £30.99 72062 £61.98 £44.99 (2pk) £16.9935mm £34.99 each 73491 £69.98 £47.99 (2pk) £21.99BFKMX* £120.44 - £120.44 £49.99 (7pk) £70.45

*The BFKMX is our value pack. When directly comparing Screwfix to 365Drills prices and using the catalogue numbers 87575, 87575, 41877, 41877, 64976, 72062 and 73491 used from catalogue 91

our solution is better value for money – saving £70.45.

Screwfix are not as competitively priced – a big industry name, Screwfix is dominant in both trade and diy markets and installers will automatically price compare with Screwfix in their quest for value for money. In the grid above we have benchmarked Screwfix in a direct price comparison to show our best selling “all-in-one” kit provides exceptional value for money. Retailing at £49.99, buying the equivalent single drills from Screwfix would cost £120.43, over 58% more.

There are no instructions on how to steady the diamond core and Screwfix don’t sell any form of guidance system – it is up to the purchaser to work out and obtain their own anti-slip method elsewhere, requiring an additional purchase. In contrast all 365Drills kits come complete with our own anti-slip guide plate.

Screwfix don’t offer a full range of sizes – they only supply up to size 35mm, whereas 365Drills provides every drill size

Additional details of the company 365Drills and product Porsadrill

365Drills is a UK Company exporting to five countries and employs British labour. It expects to increase exports significantly in 2009 with a contract to supply Norway (And though it Sweden). Current export to Australia, USA, France, Poland and Spain bring cash back to the UK. A number of websites to cater for the languages of these countries.

There are 14 people involved either directly or indirectly within the UK for production, packaging and shipping of Porsadrill. All materials including packaging, backing cards, the drill guide, the clamshells, the shop displays, the printing, the shipping, the storage are all sourced in the UK and provide jobs for people who live in England. Even the machinery, tooling, and capital equipment to product the packaging and the drill guides are made and serviced in England. The reps and sales staff on the road of course live in the UK. All marketing equipment including brochures, leaflets are UK sourced. 365drills attend a number of UK exhibitions including Grand Designs, Ideal Home. Tool Fair,

As 365Drills expands its business it plans to ensure jobs remain in the UK. There are no plans to export production even for volume retail sales. 365Drills is aiming to come out of the recession and be in a strong position.

Currently sales are strong online sales and a small number of independent retailers stock the brand. However in the tiling retail sector presence is weak. To date the company has been mostly ignored by larger tile retail companies. Moving forward the marketing strategy is being reviewed for any improvements.

Perfect holes in any tile (above 40mm waste & hot / cold feeds to sink)

Final word from the owner, Richard Hazell

Porsadrill is a simple system at an affordable price providing installers, tilers, plumbers and customers with a solution to the problem of drilling hard tiles. Retailers also benefit by selling more porcelain tiles. For us the tile industry remains a core area for retail opportunities and if my company can win this award CATEGORY: BEST NEW INNOVATION (TILE RELATED PRODUCT / SYSTEM) it will forever enhance our status within the tile industry.