Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. The demand for power tools remains at or near pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in sales of power tools by dollar share. Lowe's is not far behind. Both are however facing stiff competition from China-manufactured power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products put a higher priority on sales than marketing. This is because the long-term selling process requires a lot of back-and-forth communication and a thorough understanding of the product. This kind of communication doesn't permit emotional marketing tactics.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital age has accelerated past traditional companies that rely on a small circle of retailers and distributors to sell their products.
Brand loyalty is a major aspect in the sales of power tools. When a customer is committed to a specific brand and brand, they are less responsive to competitors' communications. Moreover they are more likely to buy the client's product repeatedly and recommend it to others.
You need a well-planned plan to be successful in the American market. This involves adapting your tools to local needs and positioning brands in a way that is competitive, and leveraging marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also essential. You can be certain that your power tool will meet the requirements and standards of the country when you do this.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they offer particularly in a market that places such a high importance on the quality of products. This will help them make informed choices about the products they offer. This knowledge can make the difference between a successful or bad sale.
For instance knowing that a particular tool is suitable for the particular task will allow you to connect your customer with the right tool for their requirements. You will build trust and a sense of loyalty among your customers. It will also give you the confidence that you're offering a complete solution.
In addition, understanding the trends in DIY culture will help you know what your customers are looking for. For instance, a rising number of homeowners are taking on home improvement projects that require power tools. This could lead to a rise in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace the broken one or tackle an upcoming project. Both provide the possibility of upselling or adding on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all purchases for power tools are the result of planned replacements. The customers might require additional accessories or upgrade to a higher-performing model.
Whether your customer has experience in DIY or is just beginning the hobby, they will have to replace carbon brushes, drive cords and power cords of their power tools as time passes. Being on top of these important items will help your customer make the most of their investment.
When buying power tools, technicians look at three aspects: the tool's application the power source, and safety. These aspects allow technicians to make informed choices when selecting the right tools for their repair and maintenance work. This helps them maximize the effectiveness of their tool and reduce the expense of owning it.
Tip 4: Continue to Keep Up With Technology
The latest battery tools, for instance are equipped with smart technology that enhances user experience and sets them apart from rivals who rely on old-fashioned battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three decades of experience and a 12,000-square-foot tool department, keeping up with the latest technology is vital. "Manufactures are constantly changing the look of their products," he says. "They used to keep their designs for five or ten years, but now they're changing them each year."
In addition to taking advantage of the most recent technologies, B2B wholesalers should also focus on improving existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. shop power tools are crucial for a large number of professionals who have to utilize the tools for lengthy periods of time. 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 an even larger audience.
Tip 5: Create an Point of Sale
The e-commerce landscape has transformed the market for power tools. Data collection techniques have been improved, allowing business professionals to gain a better understanding of the market. This allows them to develop more efficient inventory and marketing strategies.
Point of sale (POS) data can, for example, allow you to track the types of projects that DIYers are working on when purchasing power tools and accessories. Knowing what projects your customers are working on enables you to increase sales and provide add-ons. It allows you to anticipate the needs of your customers, so that you always have the appropriate products on hand.
Moreover, transaction data enables you to detect trends in the market and adjust production cycles accordingly. You could, for instance, use this data to monitor changes in your brand's and retail partners market share. This allows you to align product strategies with consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of stocking up. It can also be used to assess the effectiveness of promotions.
Tip 6: Create a Point of Service
Power tools are a tangled market with high profits that requires a substantial amount sales and marketing effort to stay competitive. In the past a competitive advantage in this market was accomplished through pricing or positioning products. However, these tactics are no longer effective in today's world of omnichannels where information is readily communicated.
Retailers who concentrate on service are more likely to retain 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. Initially, his department featured several brands, but as he began to listen to contractor customers, he discovered that the majority were brand loyal.
To win their business, Karch and his team first ask their customers what they want to do with the tool before showing them what they have available. This gives them confidence to recommend the most effective tool for the job and also builds trust with the customer. Customers who are familiar with their product well are less likely to blame their supplier for a malfunctioning tool on the job.
Tip 7: Create a point of customer service
Power tool retailers face an extremely competitive market. Those who are successful in this area tend to be more loyal to a single brand than to carry a variety of brands. The amount of space that a retailer needs to devote to this category can also play a role in the amount of brands it is able to carry.
When customers visit a store to purchase a power tool they may need assistance choosing a product. Sales associates can provide professional guidance to customers looking to replace a damaged tool or are planning a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are trained to ask the right questions to help make a sale. They begin by asking the customer about what they plan to do with the product. "That's the way to determine what kind of tool you need," he says. Next, they ask about the project and what kind of experience the client has with different types of projects.
Tip 8: Create an End of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are fully complete, while others are stingy, or do not cover certain components of the tool at all. Before making a purchase it is essential that retailers understand the distinctions. Customers will only buy tools from companies that will 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 as well as an on-site repair shop that repairs 50 different brands of tools. He has observed that many of his contractor clients are loyal to their brands. Therefore, he prefers to carry a limited number of brands rather than offer samples of various products.
He also likes that his employees get one-on-one time with vendors to discuss new products and give feedback. This type of personal interaction is crucial because it helps establish trust between the store and the customers. Good relationships with suppliers may even result in discounts for future purchases.