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 virus, the demand is still at or near levels prior to the pandemic.
In terms of outlet dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely behind. However, both are being pushed by China-made power tools.
Tip 1: Make an Efficacious Brand Commitment
Many industrial product manufacturers place an emphasis on sales than marketing. This is due to the fact that the long-term sales process requires a lot of back-and-forth communication as well as a detailed understanding of the product. This type of communication does not lend itself to emotional consumer marketing strategies.
Nevertheless, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital age has raced over traditional manufacturers who depend on a small circle of retailers and distributors to sell their products.
One of the most important factors in selling power tools is brand loyalty. If a customer is committed to a brand and is loyal to a brand, they are less prone to the messages of competitors. Additionally, they are more likely to buy the client's product again and recommend it to others.
It is essential to have a well-planned strategy to have an impact on the US market. This means adapting tools to local requirements, positioning brands in a way that is competitive, and making use of distribution and marketing platforms channels. Collaboration with local authorities as well as associations and experts is also essential. You can be assured that your power tool will meet the requirements and standards of the country when you do this.
Tip 2: Be aware of Your Products
In a market where quality of the product is so important, retailers must be aware of the products they sell. This will enable them to make informed choices about what they offer their customers. This knowledge can make the difference between a successful or bad sale.
Knowing which tool is ideal for a project will assist you in matching the perfect tool to the requirements of your customer. You'll earn trust and loyalty among your customers. This will give you confidence that you're providing a complete service.
In addition, understanding the trends in DIY culture will help you know what your customers are looking for. For instance the increasing number of homeowners are taking on home improvement projects that require the use of power tools. This could lead to an increase in sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most common reason for a person to make a power purchase is to replace one that is broken down or to take on a new 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 were the result of an anticipated replacement. These customers may require additional accessories, or upgrade to a higher-performing model.
If your customer is experienced in DIY or is just beginning the hobby they will need to replace the carbon brushes, drive cords, and the power cords on their power tools as time passes. Keeping up with these essentials will allow your customer to make the most of their investment.
Technicians take into consideration three main aspects when making power tool purchases applications, how it will be powered and safety. These aspects allow technicians to make informed choices when it comes to selecting the right tools for maintenance and repair work. This allows them to improve the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Keep current with the latest technology
For instance, the latest power tools feature intelligent technology that enhances users' experience and sets them apart from other brands that still rely on old battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by targeting professionals and contractors who are technologically advanced.
Karch's company, which has over 30 years of experience and a 12,000 square feet department for tools is a testament to the importance of staying current with the latest technologies. "Manufactures are constantly changing the look of their products," Karch says. "They used to keep their designs for five or ten years, but now they're changing them every year."
B2B wholesalers must not only take advantage of the latest technologies, but also improve existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are crucial for professionals who employ the tools over a long period of time. power tools stores near me of power tools is divided into consumer and professional groups which means that the major players are constantly improving their designs and introducing new features to reach a wider audience.
Tip 5: Make an Point of Sale
The online marketplace has changed the power tool market. Advancements in data collection methods have allowed professionals in the field to get an entire view of market trends and help them develop inventory and marketing strategies more effectively.
Point of sale (POS) data for instance, allows you to monitor the kinds of projects that DIYers are working on when they purchase power tools and other accessories. Knowing the kinds of projects that your customers are undertaking enables you to offer additional sales and opportunities for upselling. It also helps you to anticipate the requirements of your customers and ensure that you have the appropriate products in stock.
You can also utilize transaction data to determine trends in the market, and then adjust production cycles in line with these trends. For instance, you could make use of this information to track fluctuations in your brand's or retail partner market shares which allows you to adapt your product strategies to consumer preferences. POS data can also be used to optimize inventory levels, which reduces the chance of overstocking. It can also assist you to assess the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a complex, high-profit market that requires a substantial amount of marketing and sales efforts to remain competitive. In the past, getting a competitive advantage in this market was achieved by pricing or positioning products. However, these strategies are no longer effective in today's omnichannel environment where information is easily shared.
Retailers who make a point of service are better able to keep 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 department. At first, the department offered various brands, but when he began listening to the customers of contractors, he discovered that the majority were brand loyal.
To win their customers, Karch and his team first ask customers what they want to do using the tool, before showing them the options available. This gives them the confidence to recommend the best tool for the job and increases trust with their customers. Customers who know their product are less likely to blame their supplier for a tool failure during the course of work.
Tip 7: Create a point of customer service
The power tool market has become a very competitive area for retailers of hardware. The retailers that are successful in this market tend to be more committed to a specific brand rather than to carry a variety of manufacturers. The amount of space that retailers can dedicate to a particular category can affect the number of brands they are able to carry.
When customers come in to purchase an electric tool and require assistance, they usually need help choosing a product. When they're replacing an old tool that's broken or taking on an upgrade project, customers need expert advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the employees at his store are educated to ask questions that can result in a sale. They begin by asking questions about what the customer is planning to do with the tool according to him. "That's the key to determining what kind of tool to sell them," he adds. Next, they ask about the project and what kind of experience they have with different kinds of projects.
Tip 8: Be sure to mention your warranty
The warranties of power tool manufacturers are very different. Some are fully comprehensive, while some aren't as generous or do not cover certain components of the tool at all. Before buying a product, it is essential that retailers understand the distinctions. Customers will only buy tools from companies that guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square-foot power tool shop and a repair shop on site that repairs 50 different types of tools. He has learned that many of his contractor clients are loyal to their brands. So, he chooses to carry only a few brands instead of trying to carry a variety of products.
He also appreciates 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 create trust between the store and the customers. Having good relationships with suppliers could result in discounts on future purchases.