Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both consumers and professionals. Despite a slowdown in 2021 due to the COVID-19 virus, demand remains close to or at pre-pandemic levels.
Home Depot is the leader in power tool sales by dollar share. Lowe's follows closely. Both are competing with power tools manufactured in China.
Tip 1: Create an Engagement to Brands
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term sale requires a lot of back-and-forth communication and in-depth knowledge of the product. This kind of communication does not lend itself to emotional consumer marketing techniques.
However, companies that make industrial tools should rethink their marketing strategy. The digital world has surpassed traditional manufacturing companies that rely on a small group of retailers and distributors to sell their products.
Brand loyalty is a major factor in power tool sales. When a buyer is committed to a certain brand, they are less sensitive to competitors' communications. Moreover, they are more likely to buy the product of the client repeatedly and recommend it to others.
It is essential to have a well-planned strategy to have an impact on the American market. This means adapting your tools to meet local requirements, positioning your brand in a competitive manner, and leveraging distribution channels and marketing platforms. Collaboration with local authorities, associations and experts is also crucial. When you do this you can ensure that your power tools will conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
In a marketplace where product quality is so crucial, retailers should be aware of the products they offer. This will allow them to make informed choices about what they offer their customers. This information can be the difference between making a good or a bad purchase.
For example knowing that a particular tool is best suited to specific projects will allow you to match your customer with the right tool to meet their requirements. This will aid in building trust and loyalty with your customers. It will also give you assurance that you're offering an entire solution.
Also, knowing the latest trends in DIY culture can help you better comprehend what your customers want. As an example, more homeowners are undertaking home renovation projects requiring the use of power tools. This could lead to a rise in sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, although Ryobi and Craftsman brands have seen their share drop year-over-year. However, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason a consumer makes a power purchase is to replace one that is failed or to embark on a new project. Both provide the possibility of upselling or adding 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 often require additional accessories, or require an upgrade to better performing models.
Your customer may have experience in DIY or is new to the hobby, they will need to replace the carbon brushes, drive cords, and power cords of their power tools as time passes. These basic items will ensure that your client gets the most out of their investment.
When buying power tools, technicians take into consideration three aspects: the tool's application, the power source and security. These aspects help technicians make educated decisions about the most suitable tools to use for their repairs and maintenance work. This allows them to maximize the effectiveness of their tool and lower the cost of owning it.
Tip 4: Continue to Keep Up with Technology
For instance, the latest power tools offer intelligent technology that enhances users' experience and differentiates them from competitors that still rely on older battery technology. Wholesalers of B2B that carry and sell these devices can boost sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three decades of experience and a 12,000-square-foot tool department, staying current with the latest technologies is crucial. "Manufactures are constantly changing the look of their products" he says. "They used to hold their designs for five or 10 years, but they're now changing them every year."
In addition to embracing latest technologies, B2B wholesalers should also concentrate on improving their existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can lessen fatigue from prolonged use. These features are essential for a lot of professionals who have to make use of the tools for long periods of time. The industry of power tools is divided into consumer and professional groups which means that the major players are constantly enhancing their designs and creating new features to appeal to an even larger audience.
Tip 5: Create a Point of Sales
The landscape of e-commerce has transformed the market for power tools. Data collection methods have improved allowing business professionals to gain a better understanding the market. This helps them develop more effective marketing and inventory strategies.
Point of sale (POS) information can, for example, allow you to keep track of the types of projects that DIYers are working on when they purchase tools and accessories. Knowing the types of projects your customers are working on enables you to provide additional sales and opportunities to upsell. It allows you to anticipate the needs of your customers, so that you always have the appropriate products on your shelves.
Additionally, transaction data can help you to identify market trends and adjust production cycles in line with. For instance, you can use this data to monitor fluctuations in your brand and the market share of your retail partners which allows you to match your product strategies to consumer preferences. Additionally, you can make use of POS data to improve levels of inventory and decrease the risk of overstocking. It is also used to assess the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools is a lucrative, complex market that requires significant sales and marketing efforts to remain competitive. In the past a competitive advantage in this market was achieved through pricing or positioning products. But these methods are no longer effective in today's omnichannel environment where information is readily shared.
Retailers who provide a high level of service are better able to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin has a 12,000 square-foot department for power tools. In the beginning, his store featured a sampling of brands, but as he began to listen to contractor customers, he learned that most were brand loyal.
To win their business, Karch and his team first ask customers what they would like to accomplish with the tool before showing them what they have available. This gives them the confidence to recommend the most effective tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame their vendor for a tool failure on the job.
Tip 7: Become a master of customer service
Power tool retailers are facing an extremely competitive market. People who have had the most success in this market tend to make a strong commitment to a brand rather than simply carrying a sampling of manufacturers. The amount of space that a retailer can devote to a specific category could influence how many brands they carry.
When customers visit a store to purchase power tools, they often need help selecting a product. When they're replacing an old tool damaged or undertaking a renovation project Customers need advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is educated to ask questions that could lead to the sale. power tools sale says they start by asking the buyer what they intend to do with the product. "That's the primary factor in deciding what kind of tool to market them," he adds. Then they ask about the customer's experience with different types of projects as well as the project.
Tip 8: Make sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some are fully comprehensive, while others are stingy or even refuse to cover certain parts of the tools at all. Before purchasing a tool, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies that will back them up.
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 an on-site repair shop that repairs 50 different types of tools. He has realized over the years that many of his contractor customers are loyal to their brands, which is why the company prefers to stick to only a few brands rather than attempting to offer a wide range of products.
He also appreciates that his employees are able to meet with vendors one-on-1 to discuss new products and exchange feedback. This kind of interaction is vital because it builds trust between the store's clients and employees. Having good relationships with suppliers can even lead to discounts on future purchases.