Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumer and professional use. Despite a slowdown in 2021 due to the COVID-19 virus, the demand is still at or near pre-pandemic levels.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely. Both are competing against power tools manufactured in China.
Tip 1: Make a Brand Commitment
Many manufacturers of industrial products put an emphasis on sales over marketing. This is because a long-term sale requires a lot of back and forth communication and detailed product knowledge. This kind of communication doesn't allow for emotional consumer marketing tactics.
Nevertheless, industrial tools manufacturing companies must rethink their approach to marketing. The digital world has raced past traditional companies that rely on a few retailers and distributors for sales.
Brand commitment is an important element in the sale of power tools. When a customer is loyal to a brand and is loyal to a brand, they are less sensitive to communications from competitors. Additionally they are more likely to buy the client's product again and recommend it to others.
To make a successful impact on the United States market, you must have a well-planned strategy. This includes adapting your tools to meet local requirements, positioning your brand in a competitive manner, and leveraging distribution channels and marketing platforms. It is also crucial to cooperate with local authorities as well as industry associations and experts. In this way you can be sure that your power tools conform to the laws of the country and standards.
Tip 2: Know Your Products
In a world where product quality is important, retailers must be aware of the products they offer. This will allow them to make informed choices about the products they offer. This knowledge could also be the difference between a good deal and a bad one.
Knowing that a certain tool is ideal for a specific project will help you match the right tool to your customer's needs. You'll build trust and loyalty with your customers. This will give you confidence that you're providing a complete service.
Additionally, understanding the trends in DIY culture will help you understand what your customers want. As an example, more homeowners are undertaking home improvement projects that require the use of power tool. This could lead to a rise in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However, online and in-store sales are on the increase.
Tip 3: Offer Full-Service Repair
The most frequent reason that a buyer makes a tool purchase is to replace a tool that has been damaged or broken down or to take on an entirely new project. Both provide opportunities for upsells or 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 performance models.
No matter if your customer is a seasoned DIYer or is new to the hobby, they'll need to replace their power tools' carbon brushes drive belts, drive belts, and power cords with time. These basic items will ensure that your customer reaps the maximum benefit from their investment.
When buying power tools, technicians look at three aspects: the tool's application, the power source and security. These factors help technicians make informed decisions about the best tools to use in their repairs and maintenance tasks. This allows them to optimize the performance of their tools and lower the cost of ownership.
Tip 4: Always Keep Up with Technology
For instance, the most recent battery tools have advanced technology that enhances the user experience and sets them apart from other tools that rely on old battery technology. B2B wholesalers who stock and sell these tools could increase sales by focusing on tech savvy contractors and professionals.
Karch's business, which has over 30 years of experience and a 12,000 square feet tool department is a testament to the importance of staying up-to-date with the latest technology. He states that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or ten years, but now they are changing their designs every year."
In addition to embracing most recent technologies, B2B wholesalers should also be looking to improve existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are essential to many contractors working in the field who utilize the tools over a long period of time. The market for power tools is divided into professional and consumer groups which means that the major players are constantly improving their designs and introducing new features that will appeal to more people.
Tip 5: Create a 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 helps them develop more efficient inventory and marketing strategies.
Point of sale (POS) information can, for example, allow you to track the types of projects DIYers undertake when they purchase power tools and accessories. Knowing what projects your customers are working on allows you to upsell and offer additional products. It also allows you to anticipate the requirements of your clients making sure you have the right products on hand.
Additionally, transaction data can help you to spot trends in the market and adjust production cycles accordingly. For instance, you could make use of this information to track fluctuations in your brand's or the market share of your retail partners which allows you to align your product strategies with consumer preferences. Additionally, you can make use of POS data to improve inventory levels and reduce the risk of overstocking. It can also assist you to assess the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a profitable complex market that requires significant marketing and sales efforts to remain competitive. The traditional methods to gain a strategic advantage in this industry have been through pricing or product positioning--but these tactics no longer work in today's multichannel marketplace where information is shared so quickly.
Retailers that focus on customer service are more likely to retain customers and build brand loyalty. her explanation , president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot power tool department. In the beginning, his store featured several brands, but as he listened to the customers of contractors, he learned that most were loyal to a particular brand.
Karch and his team ask their customers what they would like to do with a tool before presenting them with the possibilities. This gives them the confidence to recommend the appropriate tool for the job, and also builds trust with customers. Customers who are familiar with their product are less likely to blame the store for the failure of a tool for the job.
Tip 7: Create a point of customer service
Power tool retailers face a fiercely competitive market. Those who have seen success in this category tend to have a strong commitment to a brand rather than simply carrying a few manufacturers. The size of the space a retailer has to devote to this category can be a factor in the number of brands it can carry.
When customers come in to purchase power tools they may need assistance selecting the right product. When they're replacing an old tool that's broken or taking on a renovation project Customers need guidance from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is trained to ask questions that will lead to the sale. They begin by asking the buyer what they intend to do with the item. "That's the key to determining the type of tool to sell them," he adds. Next, they ask about the project and what level of experience the client has with various types of projects.
Tip 8: Create a Point of Warranty
The warranty policies of power tool manufacturers differ greatly. Some manufacturers offer a comprehensive warranty, whereas others offer a limited warranty or refuse to cover certain tools. Before buying a product, it is essential that retailers understand the differences. Customers will only purchase tools from companies that will provide a warranty.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square-foot power tool shop and a repair shop on site that repairs 50 different types of tools. He has learned through the years that a majority of his contractor customers are loyal to their brands, which is why he prefers to focus on a limited number of brands rather than offer a wide range of products.
He also likes that his employees can meet with vendors one-on-one to discuss new products and share feedback. This kind of interaction is essential because it helps to establish trust between the retailer and customers. Good relationships with suppliers can even lead to discounts for future purchases.