Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. 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 sales of power tools based on dollar share. Lowe's is second in line. Both are competing against power tools manufactured in China.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products place a higher priority on sales and marketing. This is because a long-term sale requires a lot back-and forth communication and detailed product knowledge. This type of communication is not ideal for marketing that is based on emotion.
But, companies that produce industrial tools should rethink their marketing strategy. The digital age has accelerated over traditional manufacturers who depend on a small group of retailers and distributors for sales.
Brand commitment is an important factor in power tool sales. When a buyer is committed to a specific brand, they are less sensitive to competitor's messages. Moreover they are more likely to buy the client's product time and time again and recommend it others.
To be successful to be successful in the United States market, you must have an organized strategy. This means adapting tools to local requirements and positioning your brand in a competitive manner, and using marketing platforms and distribution channels. Collaboration with local authorities as well as associations and experts is also essential. You can be assured that your power tool will be in compliance with the standards and regulations of the country when you do this.
Tip 2: Be aware of Your Products
In a market where quality of the product is so important, retailers must be aware of the products they offer. This will allow them to make informed decisions about what they offer. This information can be the difference between making a good or a poor sale.
Knowing that a certain tool is suitable for a project will help you match the right tool to the needs of your customer. You'll earn trust and loyalty with your customers. It will also give you confidence that you're offering an entire solution.
Also, knowing the latest trends in DIY culture will help you comprehend what your customers want. For instance, a growing number of homeowners are undertaking home improvement projects that require the use of power tools. This can result in a spike in the sale of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace the broken one or tackle the new project. Both present opportunities for upsells and additional sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of purchases for power tools resulted from an anticipated replacement. These customers may require additional accessories, or upgrade to a better-performing model.
Your customer may have experience in DIY or is new to the hobby, they will need to replace the carbon brushes, drive cords and power cords of their tools in time. These items will ensure your customer reaps the maximum benefit out of their investment.
When purchasing power tools, technicians take into consideration three factors: the application the power source, and safety. These aspects help technicians make informed decisions about the best tools to use in their repairs and maintenance work. This helps them maximize the effectiveness of their tool and lower the expense of owning it.
Tip 4: Keep current with the latest technology
For example, the latest battery tools have advanced technology that enhances users' experience and sets them apart from other brands that still depend on old-fashioned battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by targeting professional and tech-savvy contractors.
Karch's company, which has more than 30 years of experience, and a 12,000 square foot tooling department, is a testament to the importance of staying up-to-date with new technologies. power tools buy online states that manufacturers are constantly changing their product designs. "They used to keep their designs for five or ten years, but they're now changing them every year."
B2B wholesalers must not only take advantage of the latest technologies, but also enhance their existing models. By adding lightweight materials and adjustable handles, wholesalers can lessen fatigue from prolonged use. These features are essential for a large number of professional contractors who need to use the tools for long periods of time. The market for power tools is split into the consumer and professional segments. This means that the major players are constantly working to improve their designs and develop new features to reach a larger market.
Tip 5: Create a point of Sale
The landscape of e-commerce has transformed the power tool market. Data collection techniques have improved and business professionals can gain a better understanding the market. This allows them to develop more efficient inventory and marketing strategies.
By utilizing information 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 the kinds of projects that your customers are undertaking enables you to provide additional sales and opportunities to upsell. It also helps you anticipate the needs of your customers making sure you have the right products on hand.
You can also utilize transaction data to determine market trends, and adjust production cycles in line with these trends. You could, for instance utilize this data to monitor changes in your retail partners' and brand's' market shares. This allows you to align your product strategies to consumer preferences. Similarly, you can use POS data to optimize levels of inventory and decrease the risk of overstocking. It can also assist you to evaluate the effectiveness of promotions.
Tip 6: Make a Point of Service
Power tools are a complex market with high profits that requires a significant amount of sales and marketing effort to remain in the game. In the past a competitive advantage in this market was achieved by pricing or positioning products. However, these tactics are not effective in today's multichannel environment, where information is readily communicated.
Retailers who provide a high level of providing a high-quality service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot department for power tools. His initial department featured various brands. However when he spoke to contractors, he noticed that they were loyal to their preferred brand.
To make a mark in their business, Karch and his team first ask their customers what they'd like to achieve using the tool, before showing them the options available. This gives them the confidence to recommend the appropriate tool for the job and builds trust with customers. Customers who know their product well are less likely to blame their vendor for a tool failure during the course of work.
Tip 7: Become a master of customer service
Power tool retailers face a fiercely competitive market. People who have had the most success in this market tend to make a firm commitment to a brand rather than merely carrying a sampling of manufacturers. The amount of space retailers can dedicate to a category may also influence how many brands they are able to carry.
Customers usually require assistance when they visit to purchase a power tool. When they're replacing an old one that is broken or tackling the task of renovating clients require expert guidance from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions to help make an offer. They start by asking what the customer is planning to use the tool, he says. "That's the way to decide what kind of tool you need," he says. Then, they inquire about the customer's experience with various types of projects and the project.
Tip 8: Make sure to mention your warranty
The makers of power tools vary widely in their warranty policies. Some are completely comprehensive, while others aren't as generous or refuse to cover certain aspects of the tool at all. It's important for retailers to know the distinctions before making a purchase, because customers will buy tools from companies that back them up.
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 lines of tools. He has discovered that a lot of his contractor clients are loyal to a particular brand. So, he chooses to carry a select few brands instead of trying to carry a variety of products.
He is also happy that his employees have the ability to meet with vendors in person to discuss new products and share feedback. This kind of interaction is essential as it helps establish trust between the store and its customers. Good relationships with suppliers can even result in discounts on future purchases.