Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both consumer and professional use. Despite a slowdown in 2021 due to the COVID-19 pandemic demand remains close to or at pre-pandemic levels.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's is second in line. Both are competing with power tools manufactured in China.
Tip 1: Create an Efficacious Brand Commitment
Many industrial product manufacturers place more emphasis on sales and marketing. This is because the long-term selling process requires a lot of back-and-forth communication and detailed knowledge of the product. This kind of communication does not lend itself to emotional consumer marketing tactics.
Nevertheless, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital age has outpaced traditional manufacturers who depend on a small group of retailers and distributors to sell their products.
The key to selling power tools is brand commitment. If a client is adamant about a particular brand they are less receptive to the messages of competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others.
To make a successful impact on the United States market, you must have an organized strategy. This means adapting your tools to local needs and positioning your brand in a way that is competitive, and using marketing platforms and distribution channels. It is also essential to work with local authorities as well as industry associations and experts. By doing so, you can be confident that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
Retailers must be aware of the products they are selling particularly in a market which places a great value on product quality. This will help them make informed decisions about the products they offer their customers. This knowledge could make the difference between making a good or a bad purchase.
For example knowing which tool is best suited to the particular task can help you match your client with the appropriate tool for their needs. This will allow you to build trust and loyalty with your customers. This will help you feel confident that you provide a complete service.
Understanding DIY cultural trends can help you understand your customers' requirements. For instance, a growing number of homeowners are taking on home renovation projects that require power tools. This could lead to a rise in sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, however Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this the fact that sales on both stores and online are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace the broken one or tackle an upcoming project. Both provide opportunities for upsells or add-on 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. These customers typically require additional accessories or may require an upgrade to better performing models.
No matter if your customer is an experienced DIYer or just starting out in the hobby, they will likely require replacing their power tools' carbon brushes drive belts, drive belts, and power cords with time. Keeping up with these essentials will help your customer make the most of their investment.
When purchasing power tools, technicians consider three factors: the application the power source, and safety. These aspects allow technicians to make informed decisions when choosing the right tools for maintenance and repair tasks. This helps them maximize the effectiveness of their tool and reduce the cost of owning it.
Tip 4: Keep up-to-date with the latest technologies.
For instance, the most recent power tools feature smart technology that improves the user experience and sets them apart from competitors that still depend on old-fashioned battery technology. Wholesalers in B2B who offer and sell these tools can increase sales by targeting professionals and contractors who are technologically advanced.
For Karch who's business has more than three years of experience and a 12,000-square-foot department for tools, staying up with the latest technologies is crucial. "Manufactures are constantly changing the look of their products" Karch says. "They used to keep their designs for five or 10 years, but they're now changing them each year."
B2B wholesalers should not just embrace the latest technologies but also improve 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 industry of power tools is divided into professional and consumer groups, which means that major players are constantly enhancing their designs and creating new features to reach a wider audience.
Tip 5: Create a Point of Sales
The e-commerce market has changed the market for power tools. power tools on sale in data collection methods have allowed professionals in the field to get a holistic overview of market trends and help them develop inventory and marketing strategies more efficiently.
By utilizing data 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 accessories. Knowing what projects your customers are working on enables you to offer upsells and extras. It also allows you to anticipate the requirements of your clients, ensuring that you have the appropriate products available.
Furthermore, transaction data allows you to spot trends in the market and adjust production cycles accordingly. For instance, you could utilize this information to track fluctuations in your brand's or market share of retail partners, enabling you to match your product strategies to consumer preferences. POS data can also be used to improve levels of inventory, reducing the chance of overstocking. It can also assist you to assess the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools are a complex market that is high-profit and requires a significant amount of marketing and sales effort to stay in the game. In the past, getting an advantage in this market was achieved by establishing prices or positioning of products. However, these tactics are not effective in today's world of omnichannels where information is readily available to be shared.
Retailers that focus on customer 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 power tool department. His initial department featured a variety of brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.
Karch and his staff ask their customers what they plan to do with a tool prior to showing them the possibilities. 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 well are less likely to blame their supplier for a tool malfunction during the course of work.
Tip 7: Make a Point of Customer Service
Power tool retailers are facing an extremely competitive market. The retailers that have had success in this area tend to make a firm commitment to a brand instead of simply carrying a sampling of manufacturers. The size of the space a retailer must devote to the category may also affect the amount of brands it is able to carry.
When customers visit a store to purchase an electric tool, they often need help selecting a product. Sales associates can provide the best advice to customers who are seeking to replace a damaged tool or are planning the renovation of their home.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are trained to ask the right questions to make an offer. They begin by asking what the buyer is planning to use the tool for, he adds. "That's how you determine the type of tool they need," he says. Then, they inquire about the customer's experience with various types of projects and the project.
Tip 8: Create a Point of Warranty
The warranties of the manufacturers of power tools differ greatly. Some companies offer a complete warranty, while others offer a limited warranty or do not offer warranties for certain tools. It is crucial for retailers to be aware of these differences before buying, since customers will buy tools from firms that provide them with a warranty.
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 a repair shop on site that repairs 50 different brands of tools. He has learned over time that a lot of his contractor customers are loyal to their brands, which is why the company prefers to stick to the most popular brands rather than attempting to offer a wide range of 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 personal contact is important as it helps build trust between the store and its customers. Good relationships with suppliers can even result in discounts for future purchases.