Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. The demand for power tools remains at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 outbreak in 2021.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's follows closely. Both are however being pushed by China-made power tools.
Tip 1: Create a Brand Commitment
Many industrial products manufacturers prioritize sales over marketing. This is because the long-term sales process requires a lot back-and-forth communication and a thorough understanding of the product. This kind of communication does not permit emotional marketing tactics.
However, companies that manufacture industrial tools need to rethink their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a select group of distributors and retail outlets for sales.
Brand loyalty is a major element in the sale of power tools. When a customer is adamant about a particular brand, they are less sensitive to competitor's messages. Additionally they are more likely to buy the product of the client time and time again and recommend it others.
You need a well-planned plan to have an impact on the US market. This includes adapting your tools to meet the local requirements, positioning your brand in a competitive way, and making use of marketing channels and distribution channels. It is also crucial to collaborate with local authorities as well as industry associations and experts. In this way, you can be confident that your power tools will comply with the country's regulations and standards.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they offer, especially in a market which places a great value on product quality. This will allow them to make informed decisions about what they are selling. This information can be the difference between making a good or a poor sale.
For instance, knowing that a tool is ideal for specific projects can help you match your customer with the best tool to meet their requirements. This will allow you to build trust and loyalty with your customers. It will also give you confidence that you're providing a complete solution.
Also, knowing the latest trends in DIY culture will help you comprehend what your customers want. As an example, more homeowners are undertaking home renovation projects requiring the use of power tool. This could lead to a rise in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, while Ryobi and Craftsman brands have seen their share drop year-over-year. However the fact that sales on both stores and online are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair a broken one or to tackle the new project. 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 of power tools are the result of planned replacements. These customers typically require additional accessories, or require an upgrade to better quality models.
Whether your customer is an experienced DIYer or new to the hobby, they will likely require replacement of their power tools' carbon brushes as well as drive belts and power cords with time. These essentials will ensure that your client gets the most from their investment.
Technicians take into consideration three main aspects when buying power tools: application, how it will be used and safety. These aspects allow technicians to make informed choices when it comes to selecting the right tools for their maintenance and repair tasks. This helps them maximize the effectiveness of their tool and reduce the cost of owning it.
Tip 4: Always Keep Up With Technology
The most modern battery tools, for instance are equipped with smart technology that enhances user experience and sets them apart from competitors who still depend on older battery technology. B2B wholesalers who stock and sell these tools could increase sales by focusing on professional and tech-savvy contractors.
For Karch the company, which has more than three decades of experience and a 2,000-square-foot tool department, staying current with the latest technologies is crucial. He states that manufacturers are constantly changing their product designs. "They used to hold their designs for five or 10 years, but now they are changing them each year."
B2B wholesalers need to not only embrace the latest technologies but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are essential for many professional contractors who use the tools over a long period of time. The market for power tools is divided between professional and consumer groups. This means that the major players are constantly working to improve their designs and develop new features to reach a wider public.
Tip 5: Make a Point of Sales
The online marketplace has changed the market for power tools. Data collection techniques have improved, allowing business professionals to gain a better understanding the market. This allows them to develop more efficient inventory and marketing strategies.
Point of sale (POS) data, for instance, allows you to keep track of the types of projects DIYers undertake when purchasing power tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and add-ons. It helps you anticipate the needs of your customers to ensure that you have the appropriate products on the market.
You can also use transaction data to spot market trends, and adjust production cycles accordingly. You can, for example, use this data to monitor fluctuations of your retail partners' and brand's market share. This allows you to align your strategy for product with consumer preferences. Similarly, you can use POS data to improve levels of inventory and decrease the risk of stocking up. It also helps to assess the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
Power tools are a complicated, high-profit market that requires a significant amount of sales and marketing effort to remain in the game. The classic ways to gain an advantage in this industry were by establishing pricing or positioning of products, but these strategies are no longer effective in today's omnichannel marketplace where information is shared rapidly.
Retailers who concentrate on service are more likely to retain 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 power tool department. At first, the department offered several brands, but when he began to listen to the customers of contractors, he learned that most were brand loyal.
Karch and his team ask their customers what they intend to accomplish using a tool before presenting them with the options. This gives them confidence to recommend the most effective tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely to blame their vendor for a tool failure on the job.
Tip 7: Create a point of customer service
The market for power tools has become a highly competitive market for hardware retailers. visit the following website page who have had success in this category tend to have a strong commitment to a brand rather than simply carrying a sampling of manufacturers. The amount of space a retailer must devote to this category can also affect the amount of brands it is able to carry.
Customers often need assistance when they visit to buy a power tool. Sales associates can provide expert guidance to customers looking to replace a damaged tool or are planning a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is trained to ask questions that could lead to the sale. They start by asking what the customer plans to use the tool according to him. "That's the best way to determine the type of tool you need," he says. Then they ask about the experience of the customer with different types of projects as well as the project.
Tip 8: Create an End of Warranty
The makers of power tools vary widely in their warranty policies. Some manufacturers offer a comprehensive warranty, while others offer a limited warranty or do not offer warranties for certain tools. It's crucial for retailers to be aware of the differences prior to buying, since buyers 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 tool department as well as an repair shop in-house that handles 50 lines of tools. He has learned that many of his contractor clients are loyal to their brands. So, he chooses to carry a select few brands instead of trying to carry samples of different products.
He also likes the fact that his employees have the opportunity to meet with vendors one-on-one to discuss new products and provide feedback. This type of personal interaction is essential because it builds trust between the store's clients and employees. Building strong relationships with suppliers can even result in discounts on future purchases.