Is commoditization inevitable for toolmakers these days? Is it unavoidable for manufacturers of hand and power tools to be viewed as "seen one, seen 'em all" by end users?

Two makers of those products say they've been able to avoid being viewed in such a ho-hum manner.

Midwest Tool and Cutlery Co., located in Sturgis, Mich., primarily caters to the professional tradesman who specializes in sheet metal cutting, says Midwest president Stephen Deter. Its Midwest Snips are among the more commonly used metal cutters in the field.

In summing up Midwest's anti-commoditization formula, "Keep the product king. When a snip is a snip is a snip, we're in trouble!" he laughs.

Their end-users, "for the most part, are tradesmen who get paid based on how well they use a tin snip," Deter explains. "We focus almost entirely on the trades as opposed to the infrequent tool user, the do-it-yourselfer."

He said that another way Midwest has been able to avoid commoditization is its close contact with the end user.

"While most of our competitors are focused now on outsourcing," Deter explained, "we are focusing on the end user—his needs—and trying to bring more innovation to our product line."

When a new product is being tested, he says, "all the field-testing is done by members of the Sheet Metal Workers International."

He said Midwest doesn't try to re-invent the wheel, but does focus on innovation, referring to six new products the company will introduce later this year. And new metal-like materials are being invented that require new cutting methods.

"There are so many things that used to be made out of metal that are no longer made out of metal," he said. "On the other hand, there are new materials being developed all the time, but they have to be cut just like metal."

At its Virginia Beach, Va., headquarters, Stihl, Inc., is also vigilant about avoiding the commoditization trap, said Stephen Meriam, national sales and product development manager.

Stihl produces several lines of power tools, such as chain saws and lawn trimmers, as well as various construction tools.

Commoditization can be avoided, Meriam said. In addition to innovation and quality of the product, Stihl emphasizes the training and educating of their salespeople at its independent servicing dealers.

"You become a commodity if you're on a shelf with 18 other brands that are sold by a vendor who may or may not have any qualified assistants on the floor to help differentiate your product," Meriam said.

The Internet has produced a better-educated consumer than 10 years ago, Meriam said. Stihl's sales staff must be prepared to give them the information they need.

"For instance, we'll get contractors who may ask about a specific diamond wheel," Meriam said. "You really need qualified people to answer those questions."

Like Midwest Tool, Stihl is rolling out new products later in '04. Meriam cites as examples a series of "Easy2Start" chain saws and string trimmers that will require less pulling force to start up than previous Stihl saws and trimmers.