Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both consumer and professional 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 by dollar share. Lowe's follows closely. Both are competing against power tools manufactured in China.
Tip 1: Create a Brand Commitment
Many manufacturers of industrial products place more emphasis on sales and marketing. This is because 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 allow for emotional consumer marketing tactics.
Nevertheless, industrial tools manufacturing companies must rethink their approach to marketing. The digital age has overtaken traditional manufacturers who depend on a few retailers and distributors to sell their products.
A key to power tool sales is brand commitment. If a client is loyal to a brand, they will be less prone to the messages of competitors. They are also more likely to purchase the client's products again and to recommend them to others.
It is essential to have a well-planned strategy to have an impact on the American market. This means adapting your tools to meet the local requirements, positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also essential to work with local authorities as well as industry associations and experts. You can be sure that your power tool will be in compliance with the standards and regulations of the country if you do this.
Tip 2: Be aware of Your Products
In a world where quality of the product is so important, retailers should know the products they offer. This will help them make informed decisions about what they offer. This information can make the difference between a successful deal and a bad one.
Knowing which tool is perfect for a project will aid in matching the right tool to the needs of your customer. You'll build trust and loyalty among your customers. It will also give you the confidence that you're providing an entire solution.
Understanding DIY cultural trends can help you understand the needs of your customers. For instance increasing numbers of homeowners are completing home renovations that require the use of power tools. This can lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However the fact that sales on both stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The most frequent reason that a buyer makes a purchase is to either replace a tool that has been damaged or failed or to embark on the task of a new one. Both offer opportunities for upsells or additional sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of power tool purchases resulted from a planned replacement. Customers may require additional accessories or upgrade to a higher-performing model.
Whether top power tools is an experienced DIYer or is new to the hobby, they will likely require replacing their power tools' carbon brushes drive belts, drive belts, and power cords as time goes by. These basic items will ensure that your customer gets the most from their investment.
When purchasing power tools, technicians look at three aspects: the tool's application the power source, and security. These factors aid technicians in making informed choices about the best tools to use in their repairs and maintenance work. This helps them optimize the effectiveness of their tools and lower the cost of ownership.
Tip 4: Keep Keeping Up With Technology
For example, the latest power tools feature advanced technology that enhances the user experience and sets them apart from other tools that rely on old battery technology. Wholesalers in B2B who stock and sell these devices can boost sales by targeting tech-forward contractors and professionals.
Karch's business, which has over 30 years of experience, and a 12,000 square feet tooling department, is a testament to the importance of staying current with the latest technologies. "Manufactures are constantly changing the look of their products," he says. "They used to keep their designs for five or 10 years, but they're now changing them each year."
B2B wholesalers must not only adopt the latest technology, but also upgrade their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are crucial for many professional contractors who need to make use of the tools for long periods of time. The market for power tools is split into professional and consumer groups. This means that the biggest players are always working to improve their designs and develop new features in order to reach a larger market.
Tip 5: Create a Point of Sales
The e-commerce landscape has transformed the market for power tools. Modern methods for data collection allow business professionals to get an overall perspective of market trends and help them develop strategies for inventory and marketing more effectively.
Utilizing information from the point of sale (POS) You can track DIY projects that customers undertake when buying power tools and accessories. Knowing the kinds of projects your customers are undertaking enables you to offer add-on sales and opportunities to upsell. It allows you to anticipate your customers' needs, so that you always have the right products on the market.
You can also use transaction data to identify trends in the market, and then adjust production cycles accordingly. You can, for example utilize this data to monitor changes in your brand's and retail partners market shares. This allows you to align your strategy for product with consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of overstocking. It can also be used to determine the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a profitable, complex market that requires significant marketing and sales efforts in order to remain competitive. The most common methods of gaining an advantage in this market were by establishing pricing or positioning of products, but these strategies are no longer effective in the omnichannel world of today where information is shared so quickly.
Retailers who are committed to providing a high level of service are better able to keep customers coming back 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. The department was initially home to several brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.
To make a mark in their customers' business, Karch and his team first ask their customers what they would like to accomplish using the tool, before showing them what they have available. This gives them confidence to recommend the best tool for the job, and builds trust with the customer. Customers who know their product well are less likely to blame their vendor for a tool malfunction on the job.
Tip 7: Be a customer service guru
Power tool retailers are in an extremely competitive market. Those who have seen the most success in this market tend to make a strong commitment to a brand rather than simply carrying a selection of manufacturers. The amount of space that a retailer can devote to a specific category could influence how many brands they carry.
Customers often need assistance when they go in to purchase a power device. Whether they are replacing an old one damaged or undertaking 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 sales associates at the store are educated to ask the right questions in order to make a sale. They start by asking what the customer plans to use the tool, he adds. "That's how you decide what kind of tool they require," he says. Then, they inquire about the project and what level of experience they have with different types of projects.
Tip 8: Create a Point of Warranty
Power tool manufacturers vary greatly in their warranty policies. Some companies offer a complete warranty, while others offer more limited warranties or do not offer warranties for certain tools. It's important for retailers to know the differences prior to purchasing, as customers will buy tools from companies that back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square foot power tool department and an on-site repair shop that repairs 50 different brands of tools. He has realized through the years that a majority of his contractors are loyal to their brands, which is why he prefers to focus on a limited number of brands rather than attempting to carry a sampling of different products.
He is also pleased that his employees are able to meet with vendors one-on-one to discuss new products and give feedback. This type of personal interaction is crucial as it helps build trust between the store and the customers. Good relationships with suppliers may even result in discounts for future purchases.