Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, demand remains near or at pre-pandemic levels.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is second in line. Both are competing against power tools manufactured in China.
Tip 1: Create an Engagement to Brands
Many manufacturers of industrial products prioritize sales over 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 doesn't allow for emotional consumer marketing techniques.
Nevertheless, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small circle of retailers and distributors to sell their products.
One of the most important factors in selling power tools is brand commitment. If a client is loyal to a brand and is loyal to a brand, they are less prone to the messages of competitors. They are also more likely to buy the product of the customer again and to recommend them to others.
You need a well-planned plan to make an impact on the US market. This means adjusting your tools to meet local requirements and positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also important to cooperate with local authorities as well as industry associations and experts. You can be sure that your power tool will be in compliance with the standards and regulations of the country when you follow these guidelines.
Tip 2: Know Your Products
Retailers must be aware of the products they are selling especially in a marketplace which places a great value on the quality of the product. This will help them make informed choices about the products they offer their customers. This knowledge can also make the difference between a good sale and a bad one.
Knowing which tool is ideal for a specific project will help you match the right tool to the needs of your customer. This will allow you to build trust and loyalty with your customers. This will give you confidence that you are offering the complete service.
Understanding DIY culture trends can also aid in understanding your customers' requirements. As an example increasing numbers of homeowners are completing home renovation projects requiring the use of power tool. This can result in an increase in sales of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. However, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most common reason that a buyer makes a purchase is to replace one that has failed or to embark on the task of a new one. Both of these tools 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 power tool purchases resulted from a planned replacement. These customers may require additional accessories, or upgrade to a better-performing model.
Whether your customer has 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 in time. These items will ensure your customer reaps the maximum benefit out of 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 educated decisions about the most suitable tools to use in their repairs and maintenance work. This helps them maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Stay up-to-date with the latest technologies.
For example, the latest power tools offer intelligent technology that enhances the user experience and differentiates them from other brands that still rely on older battery technology. B2B wholesalers that carry and sell these devices can increase sales by focusing on tech-forward contractors and professionals.
Karch's company, which has over 30 years of experience and a 12,000 square foot department for tools is a testament to the importance of keeping up-to-date with the latest technology. "Manufactures are constantly adjusting the design of their products" he says. "They used to hold their designs for five or ten years, but they're now changing them each year."
B2B wholesalers need to not only take advantage of the latest technologies, but also upgrade their existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can lessen fatigue due to prolonged use. These features are essential for a large number of professional contractors who need to make use of the tools for long periods of time. The power tool industry is split into the consumer and professional segments. This means that major players are constantly working to improve their designs and come up with new features in order to reach a wider market.
Tip 5: Create a Point of Sale
The online marketplace has changed the power tool market. Modern methods for data collection allow professionals in the field to get an overall overview of market trends which allows them to design inventory and marketing strategies more efficiently.
Point of sale (POS) information, for instance, allows you to track the types of projects that DIYers are working on when purchasing tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and extras. It also helps you to anticipate the needs of your customers making sure you have the correct products in stock.
You can also use transaction data to determine market trends, and adjust production cycles accordingly. For instance, you could make use of this information to track fluctuations in your brand's or retail partner market shares and help you align your product strategies with consumer preferences. POS data can also be used to optimize inventory levels, which reduces the risk of overstocking. It is also used to determine the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools is a lucrative complex market that requires substantial sales and marketing efforts to remain competitive. The classic ways to gain an 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 so quickly.
Retailers who concentrate on service are more likely to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool section. His department initially featured a variety of brands. However, as he listened to contractors, he realized that they were loyal to their favorite brand.
To make a mark in their business, Karch and his team first ask customers what they want to do with the tool before showing them what they have available. 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 retailer for a malfunction of a tool on the job.
Tip 7: Create a Point of Customer Service
Power tool retailers face an extremely competitive market. The retailers that are successful in this market tend to be more loyal to a single brand than to carry a variety of manufacturers. The amount of space a retailer is able to devote to a particular category can affect the number of brands they can carry.
Customers often need assistance when they go in to purchase a power device. Sales associates can provide expert advice to customers who are looking to replace a damaged device or completing an upgrade 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 lead to an offer. He says they start by asking the customer what they plan to do with the item. "That's the best way to determine the type of tool you need," he says. Then, they inquire about the project and what level of experience they have with various types of projects.
Tip 8: Create an End of Warranty
Power tool manufacturers vary greatly in their warranty policies. Some are fully complete, while others are stingy or even refuse to cover certain parts of the tools at all. Before purchasing power tools shops near me , it is essential that retailers understand the differences. Customers will only buy tools from companies that back them up.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tools department as well as an in-house repair shop that handles 50 models of tools. He has learned over time that a lot of his contractors are loyal to a particular brand, so he focuses on a limited number of brands rather than trying to offer a variety of products.
He also appreciates that his employees are able to meet with vendors in person to discuss new products and exchange feedback. This kind of interaction is essential because it helps establish trust between the store and the customers. Good relationships with suppliers can even lead to discounts for future purchases.