Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and users. The demand for power tools is at or near pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's isn't far behind. Both are competing with power tools manufactured in China.
Tip 1: Be committed to a brand
Many manufacturers of industrial products place an emphasis on sales over marketing. This is because a long-term purchase requires a lot of back and forth communication and in-depth knowledge of the product. This type of communication does not lend itself to emotional consumer marketing techniques.
However, companies that manufacture industrial tools need to rethink their marketing strategy. The digital age has outpaced traditional companies that rely on a select group of distributors and retail outlets to sell their products.
One of the most important factors in power tool sales is brand commitment. If a client is loyal to a brand they are less prone to messages from competitors. power tools sale are also more likely to buy the client's products again and to recommend them to friends and family.
It is essential to have a well-planned strategy to make an impact on the American market. This means adapting tools to local requirements and positioning your brand in a manner that is competitive and using marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also crucial. By doing so, you can be confident that your power tools will be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they sell especially in a marketplace which places a great importance on the quality of products. This will allow them to make informed choices about the products they sell. This knowledge could make the difference between making a successful or bad sale.
For instance knowing that a particular tool is best suited to specific projects will help you connect your customer with the best tool to meet their requirements. You'll earn trust and loyalty with your customers. This will help you feel confident that you're providing the complete service.
Understanding DIY culture trends can also help you better understand the needs of your customers. As an example, more homeowners are undertaking home renovation projects requiring the use of power tools. This can lead to a spike in the sale of these tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. However the fact that sales on both stores and online are growing.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power purchase is to either replace one that is failed or to embark on the task of a new one. Both offer opportunities for upsells or additional sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of purchases of power tools resulted from an anticipated replacement. Customers may require additional accessories, or upgrade to a better-performing model.
Whether your customer is an experienced DIYer or new to the hobby, they will likely require replacement of their power tools' carbon brushes, drive belts and power cords as time goes by. Being on top of these important items will help your customer make the most of their investment.
When buying power tools, technicians consider three factors: the application, the power source and safety. These factors help technicians make informed choices about the best tools to use in their maintenance and repairs. This will help them maximize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Continue to Keep Up With Technology
For instance, the most recent power tools offer intelligent technology that enhances the user experience and sets them apart from other brands that still depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by targeting professionals and contractors who are tech-savvy.
For Karch the company, which has more than three decades of experience and a 12,000 square-foot tool department, staying current with the latest technology is vital. He states that manufacturers are constantly changing their designs for their products. "They used to hold their designs for 5 or 10 years but now they are changing their designs every year."
In addition to embracing modern technologies, B2B wholesalers should also focus on improving existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are essential for a lot of professionals who must make use of the tools for long durations. The industry of power tools is divided into professional and consumer groups, which means that major players are always working on improving their designs and introducing new features to reach a wider audience.
Tip 5: Create a point of Sale
The online marketplace has changed the market for power tools. Data collection methods have improved and business professionals can gain a better understanding the market. This allows them to develop more effective marketing and inventory strategies.
Point of sale (POS) data, for instance, allows you to track the types of projects DIYers undertake when they purchase power tools and accessories. Knowing what projects your customers are working on enables you to increase sales and provide extras. It helps you anticipate your customers' needs, so that you always have the right products on hand.
Furthermore, transaction data allows you to spot trends in the market and adjust production cycles in line with. For instance, you could utilize this information to track fluctuations in your brand's or retail partner market shares, enabling you to adapt your product strategies to consumer preferences. POS data can also be utilized to optimize inventory levels, which reduces the risk of stocking up. It can also assist you to evaluate the effectiveness of promotions.
Tip 6: Create an Point of Service
Power tools is a profitable complex market that requires substantial marketing and sales efforts in order to remain competitive. The most common methods of gaining an advantage in this field have been through pricing or product positioning--but these methods are no longer effective in today's multichannel marketplace where information is shared in such a rapid manner.
Retailers who make a point of service are better able to retain customers and develop 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. Initially, his department featured a sampling of brands, but as he listened to contractor customers, he learned that most were brand loyal.
Karch and his staff members ask their customers what they plan to do with a tool before showing them the alternatives. This gives them confidence to recommend the best tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame the retailer for a malfunction of a device on the job.
Tip 7: Create a point of customer service
The power tool market has become a very competitive area for retailers of hardware. The retailers that have had the most success in this market tend to make a firm commitment to a particular brand rather than merely carrying a few manufacturers. The amount of space a retailer can devote to a specific category could affect the number of brands they carry.
Customers often need assistance when they come in to purchase a power tool. Sales associates can provide the best advice to customers looking to replace a damaged tool or undertaking the renovation of their home.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is educated to ask the right questions in order to make an offer. They begin by asking what the customer plans to do with the tool according to him. "That's the key to determining what kind of tool to offer them," he adds. Then, they inquire about the project and the level of experience the customer has with different kinds of projects.
Tip 8: Be sure to mention your warranty
The warranties of the manufacturers of power tools are very different. Some companies offer a complete warranty, while others are more limited or refuse to cover certain tools. It is crucial for retailers to know the differences prior to purchasing, as customers will purchase tools from companies that offer warranties.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop in-house that handles 50 lines of tools. He has learned that many of his clients are loyal to a particular brand. Therefore, he prefers to carry a limited number of brands rather than carry a variety of products.
He also likes the fact that his employees have one-on-one meetings with vendors to discuss new products and share feedback. This personal contact is important as it helps establish trust between the store and its customers. Good relationships with suppliers may even result in discounts for future purchases.