Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both consumer and professional use. The demand for power tools remains 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 is not far behind. Both are however confronting stiff competition from Chinese-made power tools.
Tip 1: Commit to a brand
Many industrial products manufacturers prioritize sales over marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication and detailed knowledge of the product. This type of communication is not conducive to emotional marketing tactics.
Nevertheless, industrial tools manufacturing companies should think about rethinking their approach to marketing. The digital age has accelerated past traditional manufacturers who rely on a small group of retailers and distributors to sell their products.
Brand commitment is a key aspect in the sales of power tools. If a client is committed to a brand they are less prone to the messages of competitors. They are also more likely to purchase the product of the customer again and to recommend them to others.
To make a successful impact in the United States market, you need to have a well-planned strategy. This means adapting your tools to meet the local requirements and positioning your brand in a competitive way, and leveraging distribution channels and marketing platforms. power tool deals with local authorities as well as associations and experts is also crucial. When you do this, you can be confident that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they are selling particularly in a market which places a great value on the quality of the product. This will allow them to make informed choices about what they offer their customers. This knowledge could also be the difference between a successful sale and a bad one.
For example knowing that a particular tool is best suited to the particular task will help you connect your customer with the right tool for their requirements. You'll build trust and loyalty with your customers. It will also give you assurance that you're offering an entire solution.
Also, knowing the latest trends in DIY culture can help you comprehend what your customers want. For instance increasing numbers of homeowners are completing home renovations that require the use of power tool. This can result in a surge in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, however Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason a consumer makes a power purchase is to either replace one that has failed or to embark on the task of a new one. Both of these can be used to increase sales and additional 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. These customers often require additional accessories or require upgrading to better quality models.
Whether your customer is a seasoned DIYer or new to the hobby, they'll require replacing their carbon brushes for power tools as well as drive belts and power cords with time. Being on top of these important items will allow your customer to get the most out of their investment.
When buying power tools, technicians look at three factors: the application the power source, and security. These factors help technicians make informed choices about the best tools to use in their maintenance and repairs. This allows them to maximize the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Always Keep Up with Technology
For example, the latest power tools feature advanced technology that enhances users' experience and differentiates them from competitors that still rely on older battery technology. Wholesalers in B2B who carry and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's business, which has over 30 years of experience and a 12,000 square feet department for tools is a testament to the importance of staying up-to-date with new technologies. "Manufactures are constantly adjusting the design of their products" he says. "They used to hold their designs for 5 or 10 years but now they change their designs every year."
In addition to embracing the modern technologies, B2B wholesalers should also be looking to improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can reduce fatigue caused by long-term use. These features are essential to many professional contractors who use the tools for a long period of time. The market for power tools is divided between the consumer and professional segments. This means that the biggest players are constantly striving to improve their designs and develop new features in order to appeal to a wider audience.
Tip 5: Create a Point of Sales
The e-commerce landscape has transformed the power tools market. Data collection techniques have been improved, allowing business professionals to gain a better understanding the market. This allows them to develop more effective inventory and marketing strategies.
Point of sale (POS) data, for instance, allows you to track the types of projects DIYers tackle when purchasing tools and accessories. Knowing the type of projects your customers are undertaking enables you to offer additional sales and opportunities to upsell. It helps you anticipate your customers' needs to ensure that you have the right products in hand.
Additionally, transaction data can help you to spot trends in the market and adjust production cycles in line with. For instance, you can utilize this data to monitor fluctuations of your brand's and retail partners' market shares. This will allow you to align product strategies to consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of overstocking. It can also assist you to assess the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools are a complicated, high-profit market that requires a significant amount of marketing and sales effort to remain in the game. In the past, gaining a competitive advantage in this market was accomplished through pricing or positioning products. But these methods are not as effective in the current world of omnichannels where information is easily available to be shared.
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. The department was initially home to a variety of brands. However when he talked to contractors, he realized that they were loyal to their favorite brand.
Karch and his staff ask their customers what they intend to accomplish using a tool prior to 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 tool on the job.
Tip 7: Become a guru in customer service
Power tool retailers are in a fiercely competitive market. The retailers that have had the most success in this market tend to have a strong commitment to a brand rather than simply carrying a few manufacturers. The amount of space a retailer must dedicate to this category could also play a role in the amount of brands it is able to carry.
When customers come in to purchase a power tool and require assistance, they usually need help selecting the right product. Whether they are replacing an old one that's broken or taking on an upgrade project Customers need advice from sales associates.
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 in order to make the sale. He says they begin by asking the buyer what they plan to do with the item. "That's the best way to determine what kind of tool they require," he says. The next step is to inquire about the project and what level of experience they have with various types of projects.
Tip 8: Create an End of Warranty
Power tool manufacturers vary greatly in their warranty policies. Certain manufacturers offer a full warranty, whereas others offer more limited warranties or do not cover certain tools. Before making a purchase it's important that retailers know the distinctions. Customers will only buy tools from companies who back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 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 contractors are loyal to a particular brand. So, he chooses to carry a limited number of brands rather than carry samples of different products.
He also likes that his employees can get one-on-one time with vendors to discuss new products and share feedback. This kind of interaction is essential because it helps to create trust between the store and the customers. Having good relationships with suppliers may lead to discounts on future purchases.