Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. Despite the fact that 2021 will see a slowdown due to the COVID-19 pandemic, demand remains near or at levels prior to the pandemic.
In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's isn't far behind. Both are competing against power tools made in China.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products prioritize sales over marketing. This is due to the fact that the long-term sales process requires a lot of back-and-forth communication and detailed knowledge of the product. This type of communication does not permit emotional marketing techniques.
However, companies that manufacture industrial tools need to rethink their marketing strategy. The digital age has outpaced traditional manufacturing companies that rely on a select group of distributors and retail outlets for sales.
Brand commitment is a key aspect in the sales of power tools. When a customer is committed to a specific brand they are less receptive to competitors' communications. They are also more likely to buy the product of the customer again and to recommend them to others.
You require a well-planned strategy to be successful in the US market. This means adjusting your tools to meet local requirements, positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also essential to collaborate with local authorities, industry associations, and experts. You can be sure that your power tool will be in compliance with the requirements and standards of the country when you do this.
Tip 2: Know Your Products
In a marketplace where product quality is so crucial, retailers should be aware of the products they offer. This will allow them to make informed choices about what they offer their customers. This knowledge could also be the difference between a successful deal and a bad one.
For instance, knowing that a tool is suitable for the particular task will allow you to match your client with the appropriate tool for their needs. This will allow you to build trust and loyalty with your customers. This will ensure that you are offering a complete service.
Additionally, understanding the trends in DIY culture can help you understand what your customers want. For instance, a rising number of homeowners are tackling home renovation projects which 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 sales with 16%. However, Ryobi and Craftsman have seen their share decrease year-over-year. However, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair the broken one or 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 a planned replacement. These customers often require additional accessories or may require an upgrade to better performance models.
If your customer is experienced in DIY or is just beginning the hobby, they will have to replace the carbon brushes, drive cords, and power cords of their power 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 aspects: the tool's application the power source, and security. These factors help technicians make informed choices about the best tools to use for their repairs and maintenance tasks. This allows them to maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Always Keep Up With Technology
The most recent power tools, for example are equipped with smart technology that enhances user experience and sets them aside from competitors who still rely upon old battery technology. Wholesalers in B2B who offer and sell these tools can boost sales by targeting tech-forward contractors and professionals.
Karch's company, which has over 30 years of experience, and a 12,000 square feet tooling department is a testimony to the importance of keeping up-to-date with the latest technology. Powertools Online are constantly adjusting the design of their products," Karch says. "They were able to hold their designs for five or ten years, but now they change their designs every year."
In addition to taking advantage of the latest technologies, B2B wholesalers should also be looking to improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the fatigue that comes from prolonged use. These features are crucial for many contractors working in the field who utilize the tools for a lengthy period of time. The power tools industry is divided into professional and consumer groups and this means that the biggest players are constantly improving their designs and introducing new features that will appeal to an even larger audience.
Tip 5: Create a point of Sale
The ecommerce landscape has changed the power tool market. Advancements in data collection methods have enabled business professionals to get an entire view of market trends, allowing them to shape inventory and marketing strategies more efficiently.
By utilizing information from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects that customers are completing when purchasing power tools and other accessories. Knowing the types of projects your customers are working on enables you to provide additional sales and opportunities for upselling. It also allows you to anticipate the needs of your customers, ensuring that you have the correct products in stock.
Additionally, transaction data can help you to identify market trends and adjust production cycles in line with. For instance, you can make use of this information to monitor fluctuations of your retail partners' and brand's market share. This will allow you to align your product strategies with consumer preferences. POS data can also be utilized to optimize inventory levels, which reduces the risk of stocking up. It can also help you to assess the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools is a high-profit complex market that requires substantial marketing and sales efforts to stay competitive. The most common methods of gaining an advantage in this industry have been by positioning or pricing products. However, these strategies are no longer effective in the omnichannel world of today where information is distributed rapidly.
Retailers that focus on customer 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. In the beginning, his store featured several brands, but as he began to listen to contractor customers, he discovered that the majority were brand loyal.
Karch and his team ask their customers what they would like to accomplish using a tool before showing them the options. This gives them the confidence to recommend the right tool for the job and also builds trust with customers. Customers who are familiar with their product well are less likely to blame their retailer for a malfunctioning tool on the job.
Tip 7: Be a master of customer service
The market for power tools has become a highly competitive category for hardware retailers. Those who are successful in this category tends to be more loyal to a specific brand rather than to carry a variety of manufacturers. The amount of space a retailer has to devote to this category can also affect the number of brands it can carry.
Customers frequently require assistance when they visit to purchase a power device. Whether they are replacing an old model damaged or undertaking the task of renovating, customers need expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are educated to ask questions that can lead to a sale. He says they begin by asking the customer what he or she plans to do with the item. "That's the key to determining the type of tool to offer them," he adds. Then, they inquire about the experience of the customer with various types of 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 are fully comprehensive, while some aren't as generous or refuse to cover certain aspects of the equipment. It is crucial for retailers to be aware of these differences before buying, since customers will buy 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 in-house repair shop that handles 50 kinds of tools. He has discovered that a lot of his contractor clients are loyal to a particular brand. So, he chooses to carry only a few brands instead of trying to carry a variety of products.
He also appreciates that his employees have the ability to meet with vendors one-on-1 to discuss new products and share feedback. This type of personal interaction is crucial because it helps establish trust between the store and its customers. Building strong relationships with suppliers could lead to discounts on future purchases.
