Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near pre-pandemic levels.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is not far behind. But both companies are being pushed by China-made power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products put a higher priority on sales and marketing. This is because the long-term sales process requires a lot of back-and-forth communication and a thorough understanding of the product. This type of communication does not allow for emotional consumer marketing tactics.
However, industrial tool manufacturing companies should consider rethinking their approach to marketing. The digital world has surpassed traditional manufacturers who depend on a few retailers and distributors for sales.
One of the most important factors in power tool sales is brand commitment. When a customer is loyal to a particular brand, they will be less sensitive to communications from competitors. They are also more likely to buy the client's products again and to recommend them to others.
To be successful in the United States market, you need to have an organized strategy. This includes adapting tools to local requirements, positioning brands in a competitive manner, and using marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also essential. In this way, you can be confident that the power tools you purchase conform to the laws of the country and standards.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they offer especially in a marketplace which places a great value on the quality of the product. This will enable them to make informed choices about the products they sell. This knowledge could also be the difference between a good sale and a bad one.
Knowing that a certain tool is suitable for a specific project will assist you in matching the perfect tool to the needs of your customer. This will aid in building trust and loyalty with your customers. This will give you confidence that you're providing a complete service.
Also, knowing the latest trends in DIY culture can help you better comprehend what your customers want. As an example increasing numbers of homeowners are completing home improvement projects that require the use of power tools. This can lead a spike in the sale of power tools.
According to power tools shop , DeWalt leads in power tool unit share, which is 16%, however Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace an old one or tackle an upcoming 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 of power tools were the result of a planned replacement. These customers may require additional accessories or upgrade to a more powerful model.
If your customer is experienced in DIY or is new to the hobby, they will need to replace their carbon brushes, drive cords, and power cords of their tools in time. Making sure they are up to date with these essentials will help your customer get the most out of their investment.
When purchasing power tools, technicians consider three factors: the application, the power source and security. These aspects allow technicians to make informed choices when selecting the right tools for repair and maintenance work. This allows them to maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Stay up to date with technology
The most modern power tools, for example they feature smart technology that enhances user experience and sets them aside from rivals who rely on old-fashioned battery technology. Wholesalers of B2B that carry and sell these devices can increase sales by focusing on tech-forward contractors and professionals.
Karch's business, which has more than 30 years of experience and a 12,000 square foot department for tools is a testimony to the importance of keeping up-to-date with the latest technology. He states that manufacturers are constantly changing their product designs. "They used to hold their designs for 5 or 10 years but now they are changing them each year."
B2B wholesalers need to not only adopt the latest technology, but also improve existing models. By incorporating lightweight materials and adjustable handles, wholesalers can decrease fatigue from long-term use. These features are essential for many professional contractors who use the tools for a lengthy period of time. The market for power tools is divided into the consumer and professional segments. This means that the major players are constantly working to improve their designs and develop new features to appeal to a wider audience.
Tip 5: Create an Point of Sale
The online marketplace has transformed the market for power tools. Advancements in data collection methods allow business professionals to gain an overall overview of market trends and help them develop strategies for inventory and marketing more efficiently.
Point of sale (POS) information for instance, allows you to track the types of projects DIYers undertake when they purchase power tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and add-ons. It also allows you to anticipate the requirements of your clients and ensure that you have the appropriate products on hand.
You can also utilize transaction data to determine trends in the market, and then adjust production cycles accordingly. For instance, you could make use of this information to track changes in your brand's and retail partner market shares, enabling you to adapt your product strategies to consumer preferences. Similarly, you can use POS data to optimize levels of inventory and decrease the risk of stocking up. It also helps to evaluate the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a lucrative complex market that requires significant marketing and sales efforts to stay competitive. The traditional methods to gain a strategic advantage in this market have been by establishing pricing or positioning of products, but these tactics no longer work in today's multichannel marketplace in which information is dispersed so quickly.
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 has a 12,000 square-foot power tool department. His initial department featured a variety of brands. However, as he listened to contractors, he noticed that they were loyal to their preferred brand.
To win their customers' business, Karch and his team first ask their customers what they want to do using the tool, before showing them the tools they have available. This gives them the confidence to recommend the best tool for a job, and it increases trust with their customers. Customers who know their product well are less likely to blame their supplier for a tool failure during the course of work.
Tip 7: Become a master of customer service
The market for power tools has become a very competitive area for retailers of hardware. Those who have seen success in this category tend to make a firm commitment to a brand instead of simply carrying a sampling of manufacturers. The amount of space that a retailer needs to devote to this category can also affect the amount of brands it is able to carry.
Customers frequently require assistance when they come in to purchase a power tool. Whether they are replacing an old model that's broken or taking on an upgrade project Customers need guidance from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are trained to ask the right questions to help make the sale. They begin by asking what the buyer is planning to use the tool according to him. "That's the way to decide what kind of tool they require," he says. Next, they ask about the project and the level of experience they have with different types of projects.
Tip 8: Make a Point of Warranty
The warranty policies of the power tool makers are quite different. Some companies offer a complete warranty, whereas others offer more limited warranties or refuse to cover certain tools. Before making a purchase it's important that retailers know the distinctions. Customers will only purchase tools from companies that provide 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 realized through the years that a majority of his contractors are brand loyal, so the company prefers to stick to only a few brands rather than attempting to offer a variety of products.
He also likes that his employees can get one-on-one time with vendors to discuss new products and provide feedback. This kind of interaction is essential because it helps to establish trust between the store and its customers. Good relationships with suppliers may result in discounts on future purchases.