Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and users. Despite a slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near levels prior to the pandemic.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's follows closely. Both are however facing stiff competition from China-manufactured power tools.
Tip 1: Make an Engagement to Brands
Many industrial product manufacturers place an emphasis on sales than marketing. This is because the long-term selling process requires a lot of back-and-forth communication and detailed knowledge of the product. This type of communication is not ideal for marketing that is based on emotion.
However, companies that manufacture industrial equipment should reconsider their marketing strategy. The digital age has overtaken traditional manufacturing companies that rely on a few retailers and distributors to sell their products.
Brand loyalty is a major factor in power tool sales. If a client is loyal to a brand and is loyal to a brand, they are less prone to the messages of competitors. Additionally, they are more likely to purchase the product of the client again and recommend it to others.
To be successful in the United States market, you must have an organized strategy. This includes adapting your tools to local needs and positioning your brand in a manner that is competitive and leveraging 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 ensure that your power tools conform to the laws of the country and standards.
Tip 2: Know Your Products
Retailers must be aware of the products they sell, especially in a market which places a great importance on the quality of products. This will enable them to make informed choices about what they offer their customers. This knowledge can make the difference between making a good or a bad purchase.
For example knowing that a particular tool is suitable for the particular task will allow you to match your client with the appropriate tool for their requirements. This will allow you to build trust and loyalty with your customers. This will ensure that you're providing a complete service.
Understanding DIY culture trends can also aid in understanding your customers' needs. As an example, more homeowners are undertaking home improvement projects that require the use of power tools. This could lead to a rise in the sale 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. Despite this the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair the broken one or tackle an upcoming project. Both present opportunities for upsells and 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. Customers may require additional accessories, or upgrade to a higher-performing model.
the best power tools to buy if your customer is an experienced DIYer or new to the hobby, they will likely require replacing their power tools' carbon brushes as well as drive belts and power cords with time. Keeping up with these essentials will help your customer get the most out of their investment.
When purchasing power tools, technicians consider three aspects: the tool's application the power source, and security. These aspects allow technicians to make informed decisions when choosing the appropriate tools for their maintenance and repair tasks. This allows them to maximize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Keep Keeping Up With Technology
For instance, the most recent battery tools have smart technology that improves users' experience and differentiates them from competitors that still rely on older battery technology. B2B wholesalers that stock and sell these devices can boost sales by targeting professionals and contractors who are technologically advanced.
Karch's company, which has more than 30 years of experience, and a 12,000 square feet tool department is a testament to the importance of keeping current with the latest technologies. "Manufactures are constantly changing the design of their products," Karch says. "They were able to hold their designs for five or ten years, but now they alter their designs every year."
B2B wholesalers must not only embrace the latest technologies but also upgrade their existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can reduce fatigue due to prolonged use. These features are essential for a lot of professionals who have to make use of the tools for long durations. The market for power tools is divided between consumer and professional groups. This means that the biggest players are constantly working to improve their designs and come up with new features to appeal to a wider public.
Tip 5: Create a Point of Sale
The e-commerce market has changed the market for power tools. Modern methods for data collection have enabled professionals in the field to get a holistic overview of market trends, allowing them to shape strategies for inventory and marketing more efficiently.
Point of sale (POS) information can, for example, allow you to monitor the kinds of projects that DIYers are working on when purchasing tools and accessories. Knowing the type of projects your customers are undertaking enables you to provide additional sales and upsell opportunities. It allows you to anticipate the needs of your customers, so that you always have the appropriate products on the market.
You can also use transaction data to spot trends in the market, and then adjust production cycles accordingly. For instance, you could make use of this information to track fluctuations in your brand's or market share of retail partners which allows you to align your product strategies with consumer preferences. In the same way, you can utilize POS data to improve levels of inventory and decrease the risk of overstocking. It can also help you to assess the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a profitable, complex market that requires substantial sales and marketing efforts to stay competitive. The most common methods of gaining a strategic advantage in this market were by positioning or pricing products. However, these strategies are no longer effective in today's multichannel marketplace in which information is dispersed in such a rapid manner.
Retailers who focus on 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 department for power tools. At first, the department offered a sampling of brands, but when he began to listen to customers who were contractors, he discovered that the majority were brand loyal.
Karch and his team ask their customers what they intend to do with a tool before presenting them with the possibilities. This gives them the confidence to recommend the best tool for the job and also creates trust with customers. Customers who are familiar with their product are less likely than others to blame the store for a failure of a tool for the job.
Tip 7: Create a Point of Customer Service
Power tool retailers are facing an extremely competitive market. The retailers that have had success in this category tend to make a strong commitment to a brand rather than merely carrying a few manufacturers. The amount of space a retailer is able to devote to a particular category can determine the number of brands they can carry.
When customers go in to purchase an electric tool and require assistance, they usually need help selecting a product. Sales associates can offer professional guidance to customers seeking to replace a damaged device or completing a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the employees at his store are trained to ask questions that could result in a sale. They begin by asking what the customer is planning to do with the tool, he adds. "That's how you determine the type of tool they need," he says. The next step is to inquire about the project and what kind of experience the client has with different types of projects.
Tip 8: Be sure to be sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Certain manufacturers offer a full warranty, whereas others offer more limited warranties or refuse to cover certain tools. It is crucial for retailers to be aware of these differences before buying, since customers will purchase tools from companies that offer warranties.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department as well as a repair shop on site that repairs 50 different lines of tools. He has discovered over the years that many of his customers who are contractors are brand loyal, so he prefers to focus on the most popular brands rather than trying to offer a variety of products.
He also likes the fact that his employees can have one-on-one meetings with vendors to discuss new products and share feedback. This type of personal interaction is crucial because it helps establish trust between the store and the customers. Good relationships with suppliers can even lead to discounts for future purchases.