Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and users. The demand for power tools is at or near pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic in 2021.
Home Depot is the leader in the sales of power tools based on dollar share. Lowe's is second in line. However, both are being pushed by China-made power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products put an emphasis on sales over marketing. This is due to the fact that the long-term sales process requires a lot of back-and-forth communication and a thorough understanding of the product. This kind of communication does not lend itself to emotional consumer marketing strategies.
Nevertheless, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has overtaken traditional companies that rely on a select group of distributors and retail outlets for sales.
One of the most important factors in selling power tools is brand loyalty. If a client is committed to a specific brand they are less receptive to competitors' communications. They are also more likely to buy the product of the customer again and to recommend them to others.
To be successful to be successful in the United States market, you must develop an organized strategy. This involves adapting tools to local requirements, positioning brands in a way that is competitive, and leveraging marketing platforms and distribution channels. It is also important to cooperate with local authorities as well as industry associations and experts. You can be assured that your power tool is in line with the standards and regulations of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they sell, especially in a market that places such a high importance on the quality of products. This will allow them to make informed decisions about what they offer. This information can make the difference between a good deal and a bad one.
Knowing which tool is perfect for a 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 provide a complete service.
Also, knowing the latest trends in DIY culture can help you better comprehend what your customers want. For instance, a rising number of homeowners are tackling home improvement projects which require power tools. This could lead to a rise in sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. However, online and in-store sales are on the increase.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace a broken one or to tackle the new project. Both of these can be used to increase sales and 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 often require additional accessories or need to upgrade to higher performing models.
If your customer is experienced in DIY or is just beginning the hobby, they will have to replace the carbon brushes, drive cords, and power cords of their power tools in time. These basic items will ensure that your customer gets the most from their investment.
When purchasing power tools, technicians consider three aspects: the tool's application, the power source and safety. These aspects help technicians make informed choices when selecting the right tools for repair and maintenance work. This will help them optimize the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Keep Keeping Up With Technology
For instance, the most recent power tools feature advanced technology that enhances users' experience and sets them apart from other brands that still depend on old-fashioned battery technology. B2B wholesalers who stock and sell these devices can boost sales by targeting professionals and contractors who are tech-savvy.
Karch's business, with over 30 years of experience, and a 12,000 square feet tool department, is a testament to the importance of keeping up-to-date with the latest technology. He says that manufacturers are constantly changing their product designs. "They used to keep their designs for five or ten years, but they're now changing them each year."
In addition to taking advantage of the latest technologies, B2B wholesalers should also be looking to improve existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue due to long-term use. These features are important for many professionals who must make use of the tools for long periods. The market for power tools is divided into professional and consumer groups and this means that the biggest players are constantly improving their designs and developing new features to appeal to an even larger audience.
Tip 5: Make a Point of Sales
The e-commerce landscape has transformed the market for power tools. Data collection techniques have improved and business professionals can get a better understanding of the market. This allows them to create more effective inventory and marketing strategies.
Point of sale (POS) information, for instance, allows you to keep track of the types of projects DIYers tackle when they purchase power tools and accessories. Knowing the kinds of projects that your customers are working on allows you to offer additional sales and opportunities for upselling. It also helps you anticipate the needs of your customers and ensure that you have the appropriate products on hand.
Moreover, transaction data enables you to spot trends in the market and adjust production cycles accordingly. power tool shop can, for example, use this data to track fluctuations in your retail partners' and brand's market share. This allows you to align product strategies to consumer preferences. POS data can also be used to improve inventory levels, reducing the risk of overstocking. It can also assist you to evaluate the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a lucrative complex market that requires substantial marketing and sales efforts in order to remain competitive. The traditional methods to gain a strategic advantage in this field were through pricing or product positioning--but these strategies are no longer effective in the omnichannel world of today where information is shared in such a rapid manner.
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, located in Menomonee Falls, Wisconsin, runs a 12,000 square-foot power tool section. In the beginning, his store featured a sampling of brands, but when he began listening to contractor customers, he discovered that the majority were brand loyal.
To make a mark in their customers, Karch and his team first ask their customers what they want to do with the tool before showing them what they have available. This gives them confidence to recommend the best tool for the job and also builds trust with the customer. Customers who are familiar with their product well are less likely to blame their retailer for a malfunctioning tool during the course of work.
Tip 7: Become a guru in customer service
The market for power tools has become a very competitive area for hardware retailers. People who have had success in this category tend to have a strong commitment to a brand rather than merely carrying a few manufacturers. The amount of space a retailer has to dedicate to this category could also play a role in how many brands it can carry.
When customers come in to purchase power tools and require assistance, they usually need help selecting the right product. Sales associates can offer expert guidance to customers seeking to replace a damaged tool or undertaking 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 educated to ask questions that can lead to the sale. They begin by asking what the customer plans to use the tool, he says. "That's the way to decide what kind of tool you need," he says. The next step is to inquire about the project and what level of experience the customer has with different types of projects.
Tip 8: Make an End of Warranty
Power tool manufacturers vary greatly in their warranty policies. Some are fully comprehensive, while some aren't as generous or refuse to cover certain aspects of the tool at all. Before buying a product, it's important that retailers know the distinctions. Customers will only purchase tools from companies who provide a warranty.
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 lines of tools. He has learned that many of his contractors are loyal to a particular brand. Therefore, he prefers to carry a limited number of brands rather than carry a variety of products.
He also likes that his employees can get one-on-one time with vendors to discuss new products and provide feedback. This type of personal interaction is essential because it helps build trust between the store's customers and employees. Good relationships with suppliers may lead to discounts on future purchases.