Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumer and professional use. The demand for power tools is at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is close behind. Both are competing against power tools made in China.
Tip 1: Create an Efficacious Brand Commitment
Many industrial products manufacturers prioritize sales over marketing. This is because the long-term selling process involves a lot of back and forth communication and detailed knowledge of the product. This type of communication is not ideal for marketing that is based on emotion.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small group of retailers and distributors for sales.
One of the most important factors in selling power tools is brand commitment. If a client is loyal to a particular brand, they will be less prone to the messages of competitors. In addition they are more likely to buy the product of the client again and recommend it to others.
To be successful on the United States market, you must have a well-planned strategy. This means adjusting your tools to meet local requirements and positioning your brand in a competitive manner, and leveraging distribution channels and marketing platforms. Collaboration with local authorities as well as associations and experts is also crucial. By doing so you can ensure that your power tools will be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they are selling particularly in a market that places such a high value on the quality of the product. This will enable them to make informed decisions about what they are selling. This information can be the difference between making a successful or a bad purchase.
Knowing that a certain tool is ideal for a specific project will assist you in matching the perfect tool to your customer's needs. This will aid in building trust and loyalty with your customers. It will also give you the confidence that you're offering the complete solution.
In addition, understanding the trends in DIY culture will help you comprehend what your customers want. As an example, more homeowners are undertaking home renovations that require the use of power tool. This can lead a spike in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, while Ryobi and Craftsman brands have seen their share drop year-over-year. Despite this the fact that sales on both stores and online are growing.
Tip 3: Offer Full-Service Repair
The most frequent reason why that a buyer makes a tool purchase is to replace one that is failed or to embark on an entirely new project. Both of these tools offer opportunities for upsells or add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all power tool purchases are the result of planned replacements. Customers may require additional accessories or upgrade to a higher-performing model.
No matter if your customer is a seasoned DIYer or new to the hobby, they will likely require replacing their carbon brushes for power tools drive belts, drive belts, and power cords over time. Keeping up with these essentials will allow your customer to make the most of their investment.
Technicians take into consideration three main aspects when making power tool purchases applications, how it will be powered and safety. These aspects help technicians make educated decisions about the most suitable tools to use for their maintenance and repairs. This allows them to improve the performance of their tools and reduce the cost of ownership.
Tip 4: Stay up-to-date with the latest technologies.
For instance, the most recent battery tools have smart technology that improves the user experience and differentiates them from competitors that still rely on older battery technology. Wholesalers of B2B that stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three years of experience and a 2,000-square-foot tool department, keeping up with the latest technologies is crucial. He says that manufacturers are constantly changing their designs for their products. "They used to keep their designs for five or ten years, but now they're changing them every year."
In addition to embracing most recent technologies, B2B wholesalers should also focus on improving existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are essential to many professional contractors who use the tools over a long period of time. The market for power tools is divided into consumer and professional groups. This means that the major players are constantly striving to improve their designs and create new features to reach a larger market.
Tip 5: Create a point of Sale
The ecommerce landscape has changed the market for power tools. The advancements in data collection techniques have allowed professionals in the field to get a holistic perspective of market trends, allowing them to shape marketing and inventory strategies more efficiently.
power tools sale of sale (POS) information can, for example, allow you to keep track of the types of projects DIYers undertake when they purchase power tools and other accessories. Knowing the type of projects your customers are undertaking enables you to provide additional sales and opportunities for upselling. It helps you anticipate your customers' needs, so that you always have the appropriate products on hand.
Additionally, transaction data can help you to identify market trends and adjust production cycles accordingly. You could, for instance make use of this information to track fluctuations in your retail partners' and brand's market shares. This allows you to align product strategies to consumer preferences. Additionally, you can make use of POS data to optimize inventory levels and reduce the risk of stocking up. It can also be used to determine the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools are a tangled, high-profit market that requires a significant amount of marketing and sales efforts to remain competitive. In the past, getting an advantage in this market was accomplished by establishing prices or positioning of products. However, these strategies are no longer effective in today's world of omnichannels where information is readily communicated.
Retailers who focus on service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin has a 12,000 square-foot department for power tools. In the beginning, his store featured a sampling of brands, but as he listened to the customers of contractors and found that the majority were brand loyal.
To win their customers, Karch and his team first ask customers what they would like to accomplish with the tool before showing them the options available. This gives them the confidence to recommend the right tool for the job, and increases trust with their customers. Customers who know their product are less likely to blame their vendor for a tool failure during the course of work.
Tip 7: Make a Point of Customer Service
Power tool retailers are in an extremely competitive market. People who succeed in this area tend to be more committed to a specific brand rather than to carry a variety of brands. The amount of space that a retailer can devote to a category may also influence how many brands they can carry.
Customers frequently require assistance when they visit to purchase a power tool. Sales associates can offer professional advice to customers who are seeking to replace a damaged device or completing a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are trained to ask the right questions to make a sale. They begin by asking what the customer plans to use the tool for, he says. "That's the way to determine what kind of tool you need," he says. Then, they inquire about the experience of the customer with various types of projects and the project.
Tip 8: Create an End of Warranty
The warranty policies of the power tool makers are very different. Some are fully comprehensive, while some are stingy or even refuse to cover certain aspects of the tools at all. Before making a purchase it's important that retailers know the distinctions. Customers will only purchase tools from companies who guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square foot power tool department and an on-site repair shop that repairs 50 different types of tools. He has observed that many of his contractor clients are brand loyal. So, he chooses to carry only a few brands rather than offer samples of various products.
He is also happy that his employees are able to meet with vendors one-on-one to discuss new products and share feedback. This type of personal interaction is crucial because it helps create trust between the store and the customers. Good relationships with suppliers could even result in discounts for future purchases.