Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumers and professionals. Despite a slowdown in 2021 due to the COVID-19 pandemic, the demand is still at or near levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's isn't far behind. Both are competing against power tools manufactured in China.
Tip 1: Make a Brand Commitment
Many manufacturers of industrial products prioritize sales over marketing. This is because a long-term sales requires a lot of back and forth communication and in-depth knowledge of the product. This kind of communication isn't conducive to emotional marketing tactics.
However, companies that make industrial tools should rethink their marketing strategy. The digital age has accelerated past traditional companies that rely on a few retailers and distributors to sell their products.
Brand commitment is an important factor in power tool sales. If a client is committed to a brand they are less prone to the messages of competitors. In addition they are more likely to buy the product of the client again and recommend it to others.
You need a well-planned plan to make an impact on the American market. This includes adapting your tools to meet the local requirements, positioning your brand in a strategic way, and leveraging marketing channels and distribution channels. It is also essential to cooperate with local authorities, industry associations, and experts. You can be assured that your power tool is in line with the requirements and standards of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they offer, especially in a market which places a great value on the quality of the product. This will help them make informed decisions about what they sell. This knowledge could also be the difference between a good sale and a poor one.
For example, knowing that a tool is best suited to a particular project will allow you to connect your client with the appropriate tool to meet their needs. This will aid in building trust and loyalty with your customers. This will help you feel confident that you're providing an entire service.
Understanding DIY culture trends can also help you understand your customers' requirements. For example, a growing number of homeowners are taking on home improvement projects which require power tools. This could lead to a rise in sales of power 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 the fact that sales on both stores and online are growing.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power purchase is to either replace one that is broken down or to take on a new project. Both 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 of power tools are the result of planned replacements. Customers often require additional accessories or require an upgrade to better performing models.
No matter if your customer is an experienced DIYer or is new to the hobby, they'll likely need to replace their carbon brushes for power tools, drive belts and power cords with time. These essentials will ensure that your client gets the most from their investment.
Technicians must consider three important aspects when buying power tools applications, how it will be operated and safety. These factors help technicians make informed choices about the best tools to use for their repairs and maintenance tasks. This helps them maximize the efficiency of their tools and reduce the expense of owning it.
Tip 4: Keep Keeping Up with Technology
The most recent power tools, for example are equipped with smart technology that enhances user experience and sets them aside from rivals who depend on older battery technology. B2B wholesalers who stock and sell these tools can increase sales by targeting professional and tech-savvy contractors.
For Karch the company, which has more than three years of experience and a 12,000 square-foot tool department, keeping up with the latest technology is vital. "Manufactures are constantly changing the design of their products," he says. "They used to hold their designs for five or 10 years, but now they are changing them every year."
B2B wholesalers should not just take advantage of the latest technologies, but also enhance their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are crucial for many professional contractors who use the tools over a long period of time. The market for power tools is divided into the consumer and professional segments. This means that the biggest players are always working to improve their designs and come up with new features in order to reach a wider market.
Tip 5: Create a Point of Sale
The e-commerce market has changed the power tools market. Modern methods for data collection allow professionals in the field to get a holistic perspective of market trends and help them develop strategies for inventory and marketing more efficiently.
Utilizing information 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 permits you to upsell and offer add-ons. It also helps you anticipate the needs of your customers making sure you have the correct products available.
You can also use transaction data to spot market trends, and adapt production cycles accordingly. You can, for example, use this data to monitor fluctuations of your brand's and retail partners market share. 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 be used to evaluate the effectiveness of promotions.
Tip 6: Create an Point of Service
Power tools are a tangled market that is high-profit and requires a significant amount of marketing and sales effort to stay competitive. The most common methods of gaining a strategic advantage in this market have been by establishing pricing or positioning of products, but these strategies are no longer effective in today's multichannel marketplace where information is shared rapidly.
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, located in Menomonee Falls, Wisconsin, runs a 12,000 square-foot power tool section. In the beginning, his store featured a sampling of brands, but as he began listening to customers who were contractors and found that the majority were brand loyal.
To be successful in their customers' business, Karch and his team first ask customers what they would like to accomplish with the tool, then show them the options available. This gives them the confidence to recommend the appropriate tool for the job and also creates trust with customers. Customers who are familiar with their product well are less likely to blame their vendor for a malfunctioning tool on the job.
Tip 7: Make a Point of Customer Service
Power tool retailers are in an extremely competitive market. People who have had success in this area tend to make a firm commitment to a particular brand instead of simply carrying a sampling of manufacturers. The amount of space a retailer has to devote to this category can be a factor in how many brands it can carry.
When customers go in to purchase a power tool they may need assistance choosing a product. Sales associates can provide expert advice to customers who are looking to replace a broken device or completing an upgrade project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are trained to ask the right questions to make a sale. He says they begin by asking the buyer what they intend to use the product. "That's the primary factor in deciding the kind of tool to market them," he adds. Then they ask about the customer's experience with different types of projects as well as the project.
Tip 8: Make sure to make mention of your warranty
Power tool manufacturers vary greatly in their warranty policies. Certain manufacturers offer a full warranty, whereas others offer more limited warranties or refuse to cover certain tools. Before purchasing a tool, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies that guarantee their products.
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 in-house repair shop that handles 50 models of tools. He has learned that many of his clients are loyal to their brands. Therefore, shop power tools prefers to carry a select few brands instead of trying to offer samples of various products.
He is also happy that his employees are able to meet with vendors one-on-one to discuss new products and give feedback. This personal contact is crucial because it helps build trust between the store's clients and employees. Good relationships with suppliers could lead to discounts on future purchases.