Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. Despite a slowdown in 2021 due to the COVID-19 pandemic, the demand is still at or near pre-pandemic levels.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's is second in line. Both are competing against power tools manufactured in China.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products place more emphasis on sales than marketing. This is because 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 techniques.
However, companies that make industrial tools need to rethink their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a few distributors and retail outlets to sell their products.
Brand loyalty is a major aspect in the sales of power tools. When a customer is committed to a specific brand they are less receptive to competitor's messages. Moreover, they are more likely to purchase the product of the client again and recommend it to others.
To be successful on the United States market, you must develop an organized strategy. This involves adapting tools to local requirements and positioning brands in a manner that is competitive and making use of distribution and marketing platforms 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 requirements and standards of the country when 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 which places a great importance on the quality of products. This will enable them to make informed decisions about the products they can offer their customers. This knowledge could make the difference between making a good or a poor sale.
Knowing which tool is suitable for a specific project will help you match the right tool to your customer's needs. power tools sale 'll build trust and a sense of loyalty among your customers. This will help you feel confident that you provide an entire service.
Understanding DIY cultural trends can help you understand your customers' needs. For instance, a growing number of homeowners are taking on home improvement projects that require power tools. This could lead to an increase in the sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason a consumer makes a power tool purchase is to replace a tool that has been damaged or failed or to embark on the task of a new one. Both of these can be used to increase sales and add-on 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 were the result of an anticipated replacement. Customers may require additional accessories or upgrade to a higher-performing model.
Your customer may have experience in DIY or is just beginning the hobby, they will have to replace their carbon brushes, drive cords, and power cords of their tools in time. Making sure they are up to date with these essentials will allow your customer to make the most of their investment.
Technicians must consider three important aspects when making power tool purchases: application, how it will be powered and safety. These aspects allow technicians to make informed decisions when choosing the right tools for maintenance and repair tasks. This allows them to maximize the performance of their tool and lower the cost of owning it.
Tip 4: Always Keep Up with Technology
The most modern power tools, for example they feature smart technology that enhances user experience and differentiates them from those who depend on older battery technology. B2B wholesalers that stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's business, which has over 30 years of experience, and a 12,000 square feet department for tools is a testimony to the importance of staying up-to-date with the latest technology. 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 must not only take advantage of the latest technologies, but also enhance their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can decrease fatigue caused by long-term use. These features are essential to professionals who employ the tools over a long period of time. The power tool industry is divided into the consumer and professional segments. This means that the major players are constantly striving to improve their designs and come up with new features to reach a larger audience.
Tip 5: Create a Point of Sale
The landscape of e-commerce has transformed the power tool market. Modern methods for data collection have allowed business professionals to get a holistic perspective of market trends and help them develop marketing and inventory strategies more effectively.
Point of sale (POS) information can, for example, allow you to monitor the kinds of projects DIYers undertake when purchasing power tools and other accessories. Knowing what projects your customers are working on enables you to upsell and offer add-ons. It allows you to anticipate the needs of your customers, so that you always have the right products on hand.
You can also utilize transaction data to spot trends in the market and adapt production cycles accordingly. You could, for instance utilize this data to monitor changes in your brand's and retail partners market shares. This allows you to align your strategy for product to consumer preferences. Additionally, you can make use of POS data to optimize inventory levels and reduce the chance of overstocking. It can also help you to evaluate the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a complicated market that is high-profit and requires a significant amount of sales and marketing effort to remain competitive. In the past, gaining a competitive advantage in this market was achieved by establishing prices or positioning of products. But these methods are not as effective in the current multichannel environment, where information is easily shared.
Retailers who make a point of service are better able 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. At first, the department offered a sampling of brands, but when he began to listen to contractor customers, he learned that most were loyal to a particular brand.
To be successful in their customers' business, Karch and his team first ask customers what they want to do using the tool, before showing them what they have available. This gives them the confidence to recommend the appropriate tool for a job, and also creates trust with customers. Customers who know their product well are less likely to blame their vendor for a tool malfunction during the course of work.
Tip 7: Create a Point of Customer Service
Power tool retailers are facing an extremely competitive market. The retailers that have had success in this area tend to have a strong commitment to a particular brand rather than simply carrying a selection of manufacturers. The amount of space that a retailer needs to devote to the category may be a factor in how many brands it can carry.
When customers come in to purchase a power tool and require assistance, they usually need help choosing a product. Sales associates can provide professional advice to customers who are looking to replace a broken tool or undertaking the renovation of their home.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the employees at his store are educated to ask questions that will lead to the sale. He says they begin by asking the customer about what they plan to do with the product. "That's the way to determine what kind of tool they need," he says. Then, they inquire about the project and what level of experience the customer has with different kinds of projects.
Tip 8: Create an End of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Discover More are fully comprehensive, while some are stingy, or do not cover certain components of the tools at all. It's important for retailers to know the differences prior to making a purchase, because buyers will purchase tools from companies that 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 repair shop on site that repairs 50 different lines of tools. He has learned that many of his clients are loyal to their brands. So, he chooses to carry a select few brands rather than carry a variety of products.
He also likes that his employees can meet with vendors one-on-one to discuss new products and give feedback. This kind of interaction is essential because it helps to create trust between the retailer and customers. Building strong relationships with suppliers may result in discounts on future purchases.