Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and users. Despite the fact that 2021 will see a slowdown due to the COVID-19 pandemic, demand remains close to or at pre-pandemic levels.
Home Depot is the leader in power tool sales by dollar share. Lowe's is not far behind. Both are competing with power tools made in China.
Tip 1: Commit to a brand
Many manufacturers of industrial products place more 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 kind of communication isn't suitable for emotional marketing strategies.
However, industrial tools manufacturing companies must rethink their marketing strategy. The digital world has surpassed traditional manufacturing companies that rely on a few retailers and distributors for sales.
Brand commitment is an important element in the sale of power tools. If a client is committed to a certain brand and brand, they are less responsive to competitors' communications. Additionally, they are more likely to buy the product of the client repeatedly and recommend it to others.
You need a well-planned plan to have an impact on the US market. This involves adapting your tools to local needs, positioning brands in a competitive manner, and using marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also crucial. You can be certain that your power tool will be in compliance with the requirements and standards of the country if you do this.
Tip 2: Be aware of Your Products
In a world where quality of the product is so crucial, retailers should be aware of the products they sell. This will enable them to make informed decisions about the products they offer their customers. This information can be the difference between a successful or a poor sale.
For instance knowing that a particular tool is ideal for a particular project will allow you to match your customer with the best tool to meet their needs. You'll build trust and loyalty with your customers. This will give you confidence that you are offering an entire service.
Understanding DIY culture trends can help you better understand the needs of your customers. For instance, a rising number of homeowners are taking on home improvement projects that require power tools. This could lead to a spike in the sale of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this sales in stores and online are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair a broken one or to tackle a new project. Both of these tools offer the possibility of upselling or adding on 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 were the result of an anticipated replacement. Customers may require additional accessories or upgrade to a more powerful model.
Whether your customer has experience in DIY or is just beginning the hobby, they will have to replace the carbon brushes, drive cords and power cords of their tools over time. Keeping up with these essentials will help your customer get the most value from their investment.
Technicians must consider three important aspects when buying power tools applications, how it will be used and safety. These aspects help technicians make informed decisions about the best tools to use in their repairs and maintenance work. This allows them to optimize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Keep up to date with technology
The most modern battery tools, for instance, offer smart technology which enhances the user experience and sets them aside from those who rely upon old battery technology. Wholesalers in B2B who carry and sell these tools can boost sales by targeting professionals and contractors who are tech-savvy.
Karch's business, which has more than 30 years of experience and a 12,000 square feet tooling department is a testament to the importance of staying current with the latest technologies. "Manufactures are constantly changing the look of their products," Karch says. "They used to hold their designs for five or 10 years, but now they change their designs every year."
B2B wholesalers must not only adopt the latest technology, but also upgrade their existing models. By adding power tool price and adjustable handles, wholesalers can reduce fatigue due to long-term use. These features are crucial for a large number of professionals who must use the tools for long durations. The power tool industry is divided between professional and consumer groups. This means that major players are constantly striving to improve their designs and develop new features to reach a larger audience.
Tip 5: Create a Point of Sale
The e-commerce landscape has transformed the power tools market. Modern methods for data collection have enabled business professionals to get a holistic perspective of market trends, allowing them to shape inventory and marketing strategies more efficiently.
Point of sale (POS) information can, for example, allow you to keep track of the types of projects that DIYers are working on when purchasing power tools and other accessories. Knowing what projects your customers are working on allows you to increase sales and provide extras. It also helps you anticipate the needs of your customers making sure you have the right products in stock.
Furthermore, transaction data allows you to spot trends in the market and adjust production cycles accordingly. For instance, you can utilize this information to track changes in your brand's and the market share of your retail partners and help you match your product strategies to consumer preferences. Additionally, you can make use of POS data to improve inventory levels and reduce the risk of stocking up. It can also help you to assess the effectiveness of promotions.
Tip 6: Create an Point of Service
Power tools is a lucrative complex market that requires substantial marketing and sales efforts in order to remain competitive. The traditional methods to gain an advantage in this industry have been by establishing pricing or positioning of products, but these methods are no longer effective in today's omnichannel marketplace in which information is dispersed in such a rapid manner.
Retailers who provide a high level of service are better able to retain customers and develop brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, runs a 12,000 square foot power tool section. His initial department featured various brands. However when he talked to contractors, he noticed that they were loyal to their favorite brand.
Karch and his staff ask their customers what they intend to do with the tool before presenting them with the possibilities. This gives them the confidence to recommend the right tool for the job and builds trust with the customer. Customers who know their product well are less likely to blame their retailer for a tool malfunction on the job.
Tip 7: Become a guru in customer service
Power tool retailers are in an extremely competitive market. People who succeed in this market tend to be more loyal to a specific brand rather than to carry a variety of manufacturers. The amount of space that a retailer can devote to a particular category can affect the number of brands they carry.
When customers come in to purchase power tools, they often need help selecting the right product. Sales associates can provide professional advice to customers seeking to replace a damaged tool or are planning a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the employees at his store are trained to ask questions that will lead to a sale. They begin by asking what the customer is planning to use the tool for according to him. "That's the best way to determine the type of tool they need," he says. The next step is to inquire about the project and the level of experience the customer has with various types of projects.
Tip 8: Make sure to mention your warranty
The warranties of the power tool makers are quite different. Some are completely comprehensive, while others aren't as generous or refuse to cover certain parts of the equipment. It's crucial for retailers to understand the differences prior to buying, since 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 within the premises that can handle 50 kinds of tools. He has discovered through the years that a majority of his customers who are contractors are loyal to a particular brand, so he focuses on only a few brands rather than trying to offer a variety of products.
He is also happy that his employees have the ability to meet with vendors one-on-1 to discuss new products and give feedback. This type of personal interaction is crucial because it helps create trust between the store and the customers. Good relationships with suppliers can even lead to discounts on future purchases.