Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 pandemic demand remains close to or at levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's is not far behind. However, both are facing stiff competition from China-manufactured power tools.
Tip 1: Commit to a brand
Many industrial products manufacturers prioritize sales over marketing. power tool offers is because a long-term purchase requires a lot of back-and-forth communication and detailed product knowledge. This kind of communication does not lend itself to emotional consumer marketing strategies.
However, industrial tools manufacturing companies should think about rethinking their approach to marketing. The digital age has outpaced traditional companies that rely on a select group of retailers and distributors to sell their products.
A key to power tool sales is brand commitment. When a customer is loyal to a particular brand they are less sensitive to communications from competitors. Additionally, they are more likely to buy the client's product repeatedly and recommend it to others.
You need a well-planned plan to make an impact on the US market. This means adjusting your tools to meet local needs, positioning your brand in a strategic way, and leveraging distribution channels and marketing platforms. Collaboration with local authorities and associations, as well as experts is also crucial. You can be certain that your power tool will be in compliance with the requirements and standards of the country when you follow these guidelines.
Tip 2: Know Your Products
Retailers must be aware of the products they are selling, especially in a market which places a great value on product quality. This will help them make informed choices about what they offer their customers. This information can make the difference between a successful deal and a bad one.
For instance knowing that a particular tool is ideal for the particular task can help you connect your client with the appropriate tool to meet their needs. You'll earn trust and loyalty among your customers. This will ensure that you're providing the complete service.
Understanding DIY culture trends can help you understand the needs of your customers. For instance, a rising number of homeowners are taking on home improvement projects that require power tools. This can result in a surge in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. However the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most frequent reason why a consumer makes a power purchase is to replace one that is failed or to embark on the task of a new one. Both offer opportunities for upsells 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 may require additional accessories, or upgrade to a higher-performing model.
If your customer is a seasoned DIYer or is new to the hobby, they will likely require replacing their carbon brushes for power tools drive belts, drive belts, and power cords over time. These basic items will ensure that your customer reaps the maximum benefit from their investment.
When purchasing power tools, technicians consider three factors: the application, the power source and security. These factors allow technicians to make informed decisions when choosing the right tools for their maintenance and repair work. This enables them to maximize the efficiency of their tools and reduce the cost of owning it.
Tip 4: Stay up-to-date with the latest technologies.
For example, the latest power tools offer advanced technology that enhances users' experience and sets them apart from other tools that rely on older battery technology. Wholesalers in B2B who carry and sell these tools could increase sales by focusing on professionals and contractors who are tech-savvy.
Karch's business, with over 30 years of experience and a 12,000 square feet tooling department is a testimony to the importance of keeping current with the latest technologies. He states that manufacturers are constantly changing their product designs. "They used hold their designs for five or 10 years, but now they are changing them every year."
B2B wholesalers need to not only take advantage of the latest technologies, but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the strain caused by long use. These features are essential to many professional contractors who use the tools over a long period of time. The power tools industry is divided into consumer and professional groups, which means that major players are constantly improving their designs and introducing new features that will appeal to more people.
Tip 5: Create a Point of Sales
The e-commerce market has changed the market for power tools. Advancements in data collection methods allow business professionals to gain an overall overview of market trends, allowing them to shape strategies for inventory and marketing more efficiently.
Using data from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects your customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on enables you to increase sales and provide extras. It also allows you to anticipate the needs of your customers making sure you have the correct products in stock.
Additionally, transaction data can help you to spot trends in the market and adjust production cycles accordingly. For instance, you can utilize this data to track fluctuations in your retail partners' and brand's' market shares. This allows you to align product strategies to consumer preferences. In the same way, you can utilize POS data to improve inventory levels and reduce the chance of overstocking. It also helps to evaluate the effectiveness of promotions.
Tip 6: Establish a Point of Service
Power tools are a tangled market that is high-profit and requires a substantial amount marketing and sales effort to stay in the game. In the past, getting an advantage in this market was accomplished by pricing or positioning products. However, these strategies are no longer effective in today's omnichannel environment where information is readily communicated.
Retailers who focus on service are more likely to retain customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square foot power tool section. The department was initially home to several brands. However when he talked to contractors, he discovered that they were loyal to their preferred brand.
Karch and his staff ask their customers what they plan to do with the tool before presenting them with the possibilities. This gives them the confidence to recommend the appropriate tool for the job and builds trust with customers. Customers who know their product are less likely to blame their retailer for a malfunctioning tool 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. Those who have seen success in this category tend to make a strong commitment to a brand rather than merely carrying a selection of manufacturers. The amount of space that a retailer can devote to a specific category could determine the number of brands they carry.
When customers visit a store to purchase power tools they may need assistance choosing a product. When they're replacing an old model damaged or undertaking an upgrade project clients require expert guidance from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is educated to ask questions that could result in an offer. He says they start by asking the customer about what they plan to do with the item. "That's the most important factor to consider when deciding the kind of tool to offer them," he adds. Then, they inquire about the customer's experience with different types projects and the project.
Tip 8: Make an End of Warranty
Power tool manufacturers vary greatly in their warranty policies. Some are completely comprehensive, while some aren't as generous or do not cover certain components of the tool at all. It is crucial for retailers to understand the differences prior to buying, since customers will purchase tools from firms that provide them with a warranty.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tools department as well as an repair shop within the premises that can handle 50 models of tools. He has observed that many of his clients are brand loyal. Therefore, he prefers to carry a select few brands rather than carry a variety of products.
He also likes that his employees get one-on-one time with vendors to discuss new products and provide feedback. This type of personal interaction is essential since it builds trust between the customers and employees. Good relationships with suppliers could lead to discounts on future purchases.