Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. Despite a slowdown in 2021 due to the COVID-19 pandemic, demand remains close to or at pre-pandemic levels.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's is second in line. However, both are confronting stiff competition from Chinese-made power tools.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products put a higher priority on sales and marketing. This is because a long-term sale requires a lot of back and forth communication and a thorough understanding of the product. This kind of communication isn't suitable for emotional marketing strategies.
Nevertheless, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital age has raced past traditional manufacturers who rely on a small group of distributors and retailers for sales.
One of the most important factors in selling power tools is brand commitment. When a buyer is adamant about a particular brand, they are less sensitive to competitors' communications. Moreover, they are more likely to purchase the item of the customer repeatedly and recommend it to others.
To be successful on the United States market, you must have a well-planned strategy. This means adjusting your tools to meet the local requirements and positioning your brand in a strategic way, and making use of distribution channels and marketing platforms. It is also important to collaborate with local authorities, industry associations, and experts. You can be assured that your power tool will meet the standards and regulations of the country when you follow these guidelines.
Tip 2: Know Your Products
In a world where product quality is crucial, retailers should be aware of the products they sell. This will enable them to make informed choices about the products they offer. This knowledge can also make the difference between a successful sale and a poor one.
For instance knowing that a particular tool is ideal for specific projects will help you connect your client with the appropriate tool to meet their requirements. This will help you build trust and loyalty with your customers. It will also give you the assurance that you're offering a complete solution.
Understanding DIY cultural trends can help you better understand the needs of your customers. For instance, a growing number of homeowners are undertaking home renovation projects which require power tools. This can result in a surge in the 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. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace a broken one or to tackle an upcoming project. Both of these tools offer opportunities for upsells or add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all purchases of power tools are the result of planned replacements. These customers may require additional accessories or upgrade to a better-performing model.
Your customer may have experience in DIY or is new to the hobby they will need to replace their carbon brushes, drive cords and power cords of their power tools as time passes. These essentials will ensure that your customer reaps the maximum benefit from their investment.
Technicians consider three key items when making power tool purchases the application, the way it will be powered and safety. These aspects help technicians make informed choices about the best tools to use for their repairs and maintenance work. This will help them improve the effectiveness of their tools and lower the cost of ownership.
Powertools Online : Always Keep Up with Technology
For example, the latest battery tools have advanced technology that enhances users' experience and differentiates them from competitors that still rely on older battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by targeting professional and tech-savvy contractors.
Karch's company, which has over 30 years of experience and a 12,000 square feet tool department, is a testament to the importance of staying current with the latest technologies. He states that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or 10 years, but they're now changing them every year."
B2B wholesalers should not just adopt the latest technology, but also improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can lessen fatigue caused by long-term use. These features are essential to many professional contractors who use the tools for a lengthy period of time. The power tool industry is divided between consumer and professional groups. This means that the major players are always working to improve their designs and come up with new features to reach a wider market.
Tip 5: Create a Point of Sales
The online marketplace has transformed the market for power tools. Advancements in data collection methods have enabled business professionals to gain an entire perspective of market trends and help them develop marketing and inventory strategies more effectively.
Using information from the point of sale (POS), you can track DIY projects that customers complete when purchasing power tools and accessories. Knowing the kinds of projects your customers are working on allows you to provide additional sales and opportunities for upselling. It also allows you to anticipate the requirements of your clients and ensure that you have the appropriate products in stock.
You can also utilize transaction data to spot trends in the market, and then adapt production cycles accordingly. You could, for instance, use this data to monitor changes in your retail partners' and brand's market share. This allows you to align your strategy for product to consumer preferences. POS data can also be used to optimize inventory levels, reducing the risk of overstocking. It can also be used to determine the effectiveness of promotions.
Tip 6: Create a Point of Service
Power tools are a complicated market with high profits that requires a significant amount of marketing and sales efforts to stay in the game. The most common methods of gaining an advantage in this field were through pricing or product positioning--but these tactics no longer work in the omnichannel world of today where information is distributed rapidly.
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, Wisconsin is the owner of a 12,000-square-foot department for power tools. His initial department featured various brands. However, as he listened to contractors, he discovered that they were loyal to their preferred brand.
To be successful in their business, Karch and his team first ask their customers what they want to do with the tool, then show them what they have available. This gives them the confidence to recommend the appropriate tool for the job and it builds trust with customers. Customers who are familiar with their product are less likely to blame the store for the failure of a tool for the job.
Tip 7: Create a Point of Customer Service
Power tool retailers face a fiercely competitive market. People who have had success in this category tend to have a strong commitment to a particular brand rather than simply carrying a few manufacturers. The amount of space a retailer can devote to a category may also influence how many brands they can carry.
Customers usually require assistance when they come in to buy a power tool. Sales associates can provide professional advice to customers seeking to replace a damaged device or completing an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are trained to ask questions that can result in the sale. They begin by asking the buyer what they plan to use the product. "That's the most important factor to consider when deciding the type of tool to sell them," he adds. Then they ask about the experience of the customer with different types projects and the project.
Tip 8: Make an End of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are fully comprehensive, while others aren't as generous or refuse to cover certain aspects of the tool at all. Before making a purchase it is crucial that the retailer understands the differences. Customers will only buy tools from companies that provide 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 shop and a repair shop on site that repairs 50 different brands of tools. He has realized over time that a lot of his customers who are contractors are loyal to a particular brand, so he focuses on a limited number of brands rather than offer a wide range of products.
He also likes that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and provide feedback. This kind of interaction is vital since it builds trust between the store's customers and employees. Building strong relationships with suppliers could lead to discounts on future purchases.