Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. The demand for power tools is 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 power tool sales in terms of 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 industrial products manufacturers prioritize sales over 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 isn't conducive to emotional marketing tactics.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital age has raced over traditional manufacturers who depend on a small circle of retailers and distributors to sell their products.
Brand loyalty is a major factor in power tool sales. If a client is committed to a specific brand and brand, they are less responsive to competitors' communications. They are also more likely to purchase the product of the customer again and to recommend them to friends and family.
To be successful on the United States market, you must develop an organized strategy. This includes adapting your tools to local needs and positioning brands in a manner that is competitive and using marketing platforms and distribution channels. Collaboration with local authorities as well as associations and experts is also crucial. You can be assured that your power tool will be in compliance with the standards and regulations of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they are selling particularly in a market which places a great importance on the quality of products. This will help them make informed decisions about what they sell. This knowledge could make the difference between making a successful or a poor sale.
For example, knowing that a tool is best suited to a particular project will allow you to connect your customer with the best tool to meet their requirements. This will allow you to build trust and loyalty with your customers. she said will also give you confidence that you're offering the complete solution.
Also, knowing the latest trends in DIY culture will help you comprehend what your customers want. As an example the increasing number of homeowners are taking on home renovation projects requiring the use of power tool. This could lead to an increase in sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, however Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this sales in stores and online are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why a consumer makes a power purchase is to either replace a tool that has been damaged or been damaged or broken, or to embark on the task of a new one. Both of these tools offer opportunities for upsells or add-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. 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'll likely require replacing their power tools' carbon brushes as well as drive belts and power cords with time. Being on top of these important items will help your customer get the most out of their investment.
When buying power tools, technicians look at three factors: the application the power source, and safety. who makes the best power tools help technicians make informed choices about the best tools to use for their maintenance and repairs. This helps them maximize the effectiveness of their tools and lower the cost of ownership.
Tip 4: Always Keep Up with Technology
The most modern battery tools, for instance, offer smart technology which enhances user experience and sets them aside from those who rely on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools could increase sales by focusing on professional and tech-savvy contractors.
For Karch, whose business has more than three years of experience and a 2,000-square-foot tool department, keeping up with the latest technologies is crucial. "Manufactures are constantly adjusting the design of their products," he says. "They used to hold their designs for five or 10 years, but they're now changing them every year."
In addition to embracing latest technologies, B2B wholesalers should also be looking to improve existing models. By adding lightweight materials and adjustable handles, wholesalers can reduce fatigue caused by prolonged use. These features are essential to many professional contractors who use the tools for a long period of time. The industry of power tools is divided into consumer and professional groups which means that the major players are constantly improving their designs and introducing new features to appeal to a wider audience.
Tip 5: Create a Point of Sales
The online marketplace has changed the power tool market. Advancements in data collection methods have allowed business professionals to gain an overall view of market trends, allowing them to shape strategies for inventory and marketing more effectively.
Using information from the point of sale (POS), you can track DIY projects that customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on permits you to increase sales and provide additional products. It also helps you to anticipate the requirements of your customers and ensure that you have the right products available.
You can also use transaction data to determine market trends, and adjust production cycles accordingly. You can, for example, use this data to track fluctuations in your retail partners' and brand's market share. This allows you to align product strategies to consumer preferences. Additionally, you can make use of POS data to optimize levels of inventory and decrease the risk of stocking up. It can also help you to evaluate the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools are a tangled market with high profits that requires a significant amount of marketing and sales efforts to stay competitive. In the past, getting an advantage in this market was achieved through pricing or positioning products. But these methods are not effective in today's omnichannel environment where information is readily communicated.
Retailers who are committed to providing a high level of providing a high-quality service are more likely to retain customers and develop brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. In the beginning, his store featured several brands, but as he began listening to customers who were contractors and found that the majority were loyal to a particular brand.
To win their customers' business, Karch and his team first ask customers what they'd like to achieve with the tool before showing them the options available. This gives them the confidence to recommend the best tool for the job, and increases trust with their customers. Customers who know their product well are less likely to blame their supplier for a tool malfunction during the course of work.
Tip 7: Make an effort to be 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 selection of manufacturers. The amount of space that retailers can dedicate to a particular category can determine the number of brands they can carry.
Customers frequently require assistance when they visit to purchase a power device. Whether they are replacing an old one that's broken or taking on a renovation project Customers need advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is educated to ask questions that can result in the sale. They begin by asking the buyer what they plan to do with the product. "That's the key to determining what kind of tool to sell them," he adds. Then, they inquire about the customer's experience with different types projects and the project.
Tip 8: Make sure to make mention of your warranty
The makers of power tools vary widely in their warranty policies. Some companies offer a complete warranty, whereas others are more limited or do not offer warranties for certain tools. It's crucial for retailers to understand these differences before purchasing, as 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 and an repair shop within the premises that can handle 50 models of tools. He has observed that many of his contractors are loyal to their brands. Therefore, he prefers to carry a limited number of brands rather than carry samples of different products.
He also appreciates that his employees are able to meet with vendors one-on-one to discuss new products and give feedback. This kind of interaction is essential because it helps create trust between the store and its customers. Building strong relationships with suppliers may result in discounts on future purchases.