Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. The demand for power tools remains at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in sales of power tools by dollar share. Lowe's follows closely. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Create an Efficacious Brand Commitment
Many manufacturers of industrial products prioritize sales over marketing. This is due to the fact that the long-term sales process requires a lot of back-and-forth communication and detailed knowledge of the product. This type of communication is not conducive to emotional marketing tactics.
However, companies that manufacture industrial equipment should reconsider their marketing strategy. The digital age has raced past traditional companies that rely on a few distributors and retailers for sales.
A key to selling power tools is brand commitment. When a customer is loyal to a particular brand and is loyal to a brand, they are less sensitive to communications from competitors. Additionally they are more likely to purchase the product of the client time and time again and recommend it others.
To have a positive impact on the United States market, you need to have a well-planned strategy. This means adapting tools to local requirements and positioning brands in a way that is competitive, and making use of distribution and marketing platforms channels. Collaboration with local authorities and associations, as well as experts is also crucial. You can be sure that your power tool will meet the requirements and standards of the country when you follow these guidelines.
Tip 2: Know Your Products
Retailers should be familiar with the products they offer especially in a marketplace which places a great value on the quality of the product. This will enable them to make informed choices about what they can offer their customers. This knowledge can make the difference between making a good or a poor sale.
For instance, knowing that a tool is ideal for specific projects will allow you to connect your client with the appropriate tool to meet their needs. You'll build trust and loyalty with your customers. This will help you feel confident that you are offering a complete service.
Understanding DIY culture trends can also aid in understanding your customers' needs. As an example increasing numbers of homeowners are completing home renovations that require 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%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. However sales in stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair a broken one or to tackle the new project. Both provide the possibility of upselling or adding on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of purchases for power tools were the result of a planned replacement. These customers often require additional accessories or may need to upgrade to higher performing models.
Whether your customer has experience in DIY or is just beginning the hobby they will need to replace their carbon brushes, drive cords, and power cords of their power tools over time. Being on top of these important items will help your customer get the most out of their investment.
Technicians consider three key items when purchasing power tools: application, how it will be operated and safety. These factors help technicians make informed choices about the best tools to use for their repairs and maintenance work. This allows them to maximize the effectiveness of their tool and reduce the cost of owning it.
Tip 4: Keep up to date with technology
For instance, the latest battery tools have advanced technology that enhances the user experience and sets them apart from other brands that still rely on old battery technology. power tools sale of B2B who stock and sell these tools can boost sales by targeting tech savvy contractors and professionals.
Karch's business, with over 30 years of experience and a 12,000 square foot tooling department, is a testament to the importance of staying up-to-date with new technologies. "Manufactures are constantly changing the design of their products" Karch says. "They used to hold their designs for five or ten years, but they're now changing them every year."
In addition to embracing the modern technologies, B2B wholesalers should also focus on improving existing models. By adding lightweight materials and adjustable handles, wholesalers can lessen fatigue caused by long-term use. These features are crucial for a large number of professional contractors who need to make use of the tools for long periods of time. The power tools industry is divided into consumer and professional groups and this means that the biggest players are constantly enhancing their designs and creating new features that will appeal to an even larger audience.
Tip 5: Create a Point of Sales
The online marketplace has transformed the power tools market. Data collection methods have improved, allowing business professionals to get a better understanding of the market. This helps them develop more efficient inventory and marketing strategies.
Point of sale (POS) data for instance, allows you to track the types of projects that DIYers are working on when purchasing tools and accessories. Knowing the type of projects that your customers are working on enables you to offer add-on sales and opportunities to upsell. It also helps you anticipate the requirements of your customers and ensure that you have the appropriate products available.
Moreover, transaction data enables you to detect trends in the market and adjust production cycles in line with. For instance, you can make use of this information to track fluctuations in your brand and market share of retail partners and help you adapt your product strategies to consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the chance of overstocking. It can also assist you to evaluate the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools are a complex, high-profit market that requires a significant amount of sales and marketing effort to stay competitive. In the past a competitive advantage in this market was achieved by establishing prices or positioning of products. However, these strategies are not as effective in the current multichannel environment, where information is readily available to be shared.
Retailers who make a point of providing a high-quality 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. His initial department featured various brands. However when he talked to contractors, he discovered that they were loyal to their favorite brand.
To make a mark 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 right tool for the job and builds trust with the customer. Customers who are familiar with their product are less likely than others to blame the retailer for the failure of a device on the job.
Tip 7: Make a Point of Customer Service
Power tool retailers are facing an extremely competitive market. People who have had success in this area tend to make a strong commitment to a particular brand rather than simply carrying a few manufacturers. The amount of space that a retailer can devote to a specific category could affect the number of brands they carry.
Customers usually require assistance when they go in to purchase a power tool. Whether they are replacing an old one damaged or undertaking an upgrade project clients require expert advice from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are educated to ask the right questions in order to make the sale. He says they start by asking the customer what he or she plans to use the product. "That's the key to determining what kind of tool to sell them," he adds. The next step is to inquire about the project and the level of experience the client has with different kinds of projects.
Tip 8: Make an End of Warranty
Power tool manufacturers vary greatly in their warranty policies. Certain manufacturers offer a full warranty, whereas others offer more limited warranties or refuse to cover certain tools. It's important for retailers to know the distinctions before making a purchase, because buyers will purchase tools from companies that offer warranties.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop in-house that handles 50 models of tools. He has discovered that a lot of his contractors are loyal to a particular brand. So, he chooses to carry only a few brands instead of trying to carry a variety of products.
He also likes the fact that his employees can meet with vendors one-on-one to discuss new products and give feedback. This type of personal interaction is crucial because it helps establish trust between the retailer and customers. Good relationships with suppliers could even lead to discounts for future purchases.