Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, demand remains close to or at pre-pandemic levels.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is not far behind. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Be committed to a brand
Many industrial product manufacturers place a higher priority on sales than marketing. This is because the long-term sales process requires a lot of back-and-forth communication and detailed knowledge of the product. This kind of communication isn't suitable for emotional marketing strategies.
However, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a few retailers and distributors to sell their products.
Brand commitment is an important factor in power tool sales. When a customer is loyal to a brand they are less sensitive to communications from competitors. They are also more likely to purchase the client's products again and to recommend them to friends and family.
To be successful to be successful in the United States market, you must develop a well-planned strategy. This involves adapting tools to local requirements and positioning your brand in a manner that is competitive and leveraging marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. You can be certain that your power tool is in line with the standards and regulations of the country if you follow these guidelines.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they offer particularly in a market which places a great value on product quality. This will enable them to make informed choices about the products they offer. This information can be the difference between making a successful or bad sale.
For example, knowing that a tool is suitable for specific projects will help you connect your customer with the best tool to meet their needs. You will build trust and loyalty with your customers. It will also give you assurance that you're offering an entire solution.
Understanding DIY cultural trends can help you better understand your customers' needs. For example, a growing number of homeowners are taking on home renovation projects that require the use of power tools. This could lead to an increase in the sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However sales in stores and online are increasing.
best power tools : Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to either replace a tool that has been damaged or broken down or to take on an entirely new project. 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 purchases of power tools were the result of a planned replacement. The customers might require additional accessories or upgrade to a more powerful model.
If your customer is a seasoned DIYer or new to the hobby, they'll likely require replacing their power tools' carbon brushes drive belts, drive belts, and power cords with time. These essentials will ensure that your customer gets the most from their investment.
Technicians consider three key items when purchasing power tools: application, how it will be operated and safety. These aspects help technicians make informed choices when selecting the appropriate tools for their repair and maintenance work. This enables them to maximize the efficiency of their tools and reduce the cost of owning it.
Tip 4: Keep up to date with technology
For instance, the most recent power tools offer advanced technology that enhances users' experience and sets them apart from other tools that rely on older battery technology. Wholesalers of B2B that stock and sell these devices can increase sales by targeting professionals and contractors who are technologically advanced.
Karch's business, which has more than 30 years of experience, and a 12,000 square foot tooling department is a testament to the importance of staying up-to-date with the latest technology. "Manufactures are constantly adjusting the design of their products" he says. "They used to keep their designs for five or ten years, but now they're changing them each year."
In addition to taking advantage of the latest technologies, B2B wholesalers should also be looking to improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are essential to professionals who employ the tools over a long period of time. The power tools industry is divided into professional and consumer groups and this means that the biggest players are constantly improving their designs and introducing new features that will appeal to more people.
Tip 5: Create a Point of Sales
The online marketplace has transformed 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 effective marketing and inventory strategies.
Point of sale (POS) data, for instance, allows you to track the types of projects that DIYers are working on when they purchase power tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and additional products. It also helps you to anticipate the requirements of your customers making sure you have the appropriate products in stock.
Additionally, transaction data can help you to detect trends in the market and adjust your production cycles accordingly. For instance, you could use this data to monitor fluctuations in your brand's or retail partner market shares which allows you to align your product strategies with consumer preferences. POS data can also be used to optimize inventory levels, which reduces the risk of stocking up. It also helps to evaluate the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a high-profit, complex market that requires significant marketing and sales efforts in order to remain competitive. In the past an advantage in this market was accomplished by pricing or positioning products. But these methods are not as effective in the current world of omnichannels where information is readily available to be shared.
Retailers that focus on customer service are more likely to retain customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, runs a 12,000 square-foot power tool section. His department initially featured various brands. However when he talked to contractors, he noticed that they were loyal to their favorite brand.
Karch and his staff members ask their customers what they intend to do with a tool prior to showing them the alternatives. This gives them confidence to recommend the right tool for the job and builds trust with the customer. Customers who are familiar with their product are less likely than others to blame the retailer for a failure of a tool on the job.
Tip 7: Be a master of customer service
The power tool market has become a very competitive area for hardware retailers. People who succeed in this area tend to be more loyal to a single brand than to carry a variety of manufacturers. The amount of space a retailer has to dedicate to this category could be a factor in the amount of brands it is able to carry.
When customers go in to purchase power tools, they often need help selecting the right product. Sales associates can provide the best advice to customers who are seeking to replace a damaged tool or undertaking the renovation of their home.
power tool clearance sale , the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is educated to ask questions that could lead to a sale. He says they start by asking the buyer what they intend to do with the item. "That's the most important factor to consider when deciding the type of tool to sell them," he adds. Next, they ask about the project and what kind of experience they have with different types of projects.
Tip 8: Be sure to make mention of your warranty
The makers of power tools vary widely in their warranty policies. Some are fully complete, while others are stingy, or refuse to cover certain aspects of the tools at all. It is crucial for retailers to know the distinctions before buying, since buyers will purchase 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 an 12,000 square foot power tool shop and a repair shop on site that repairs 50 different brands of tools. He has discovered over the years that many of his customers who are contractors are brand loyal, so the company prefers to stick to a limited number of brands rather than offer a variety of products.
He is also happy that his employees are able to meet with vendors one-on-1 to discuss new products and share feedback. This kind of interaction is essential because it helps to build trust between the store and its customers. Good relationships with suppliers can even lead to discounts on future purchases.