Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. The demand for power tools is at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic that will hit in 2021.
In terms of outlet dollar share, Home Depot leads all outlets in power tool sales. Lowe's is not far behind. Both are competing against power tools made in China.
Tip 1: Be committed to a brand
Many industrial product manufacturers place a higher priority on sales over marketing. This is because a long-term purchase requires a lot of back-and-forth communication and in-depth knowledge of the product. This kind of communication doesn't lend itself to emotional consumer marketing strategies.
But, companies that produce industrial tools need to rethink their marketing strategy. The digital age has overtaken traditional manufacturers who depend on a small group of retailers and distributors for sales.
Brand loyalty is a major element in the sale of power tools. If a client is adamant about a particular brand, they are less sensitive to competitors' communications. They are also more likely to purchase the client's products again and to recommend them to others.
You need a well-planned plan to have an impact on the American market. This means adjusting your tools to meet local needs, positioning your brand in a strategic way, and leveraging marketing channels and distribution channels. It is also crucial to collaborate with local authorities, industry associations, and experts. By doing so you can ensure that your power tools will be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
In a world where product quality is important, retailers should know the products they sell. This will allow them to make informed choices about the products they sell. This knowledge can also make the difference between a good sale and a poor one.
For example, knowing that a tool is best suited to a particular project will allow you to connect your customer with the right tool for their requirements. This will allow you to build trust and loyalty with your customers. It will also give you the confidence that you're offering a complete solution.
Also, knowing the latest trends in DIY culture will help you understand what your customers want. For instance, more homeowners are undertaking home improvement projects that require the use of power tools. 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. Despite this sales in stores and online are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why that a buyer makes a purchase is to replace a tool that has been damaged or failed or to embark on an entirely new project. Both present opportunities for upsells and additional 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 resulted from an anticipated replacement. These customers may require additional accessories or upgrade to a more powerful model.
Whether your customer is an experienced DIYer or new to the hobby, they'll require replacing their carbon brushes for power tools, drive belts and power cords with time. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
Technicians must consider three important aspects when buying power tools the application, the way it will be powered and safety. These factors help technicians make informed decisions about the best tools to use in their maintenance and repairs. This will help them maximize the effectiveness of their tools and lower the cost of ownership.
Tip 4: Keep current with the latest technology
The most modern power tools, like, offer smart technology which enhances user experience and sets them apart from those who rely on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools could increase sales by focusing on tech savvy contractors and professionals.
Karch's business, with more than 30 years of experience, and a 12,000 square feet department for tools is a testimony to the importance of keeping up-to-date with the latest technology. He states that manufacturers are constantly changing their designs for their products. "They used hold their designs for five or 10 years, but now they change their designs every year."
In addition to embracing the most recent technologies, B2B wholesalers should also focus on improving existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue from long-term use. These features are essential for a large number of professional contractors who need to use the tools for long durations. The industry of power tools is divided into professional and consumer groups, which means that major players are always working on improving their designs and introducing new features to appeal to more people.
Tip 5: Create a Point of Sales
The landscape of e-commerce has transformed the power tool market. The advancements in data collection techniques have allowed business professionals to gain an entire perspective of market trends which allows them to design marketing and inventory strategies more efficiently.
Point of sale (POS) information for instance, allows you to track the types of projects DIYers undertake when they purchase tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and add-ons. It also allows you to anticipate the needs of your customers and ensure that you have the correct products in stock.
Additionally, transaction data can help you to detect trends in the market and adjust production cycles accordingly. You can, for example, use this data to monitor changes in your brand's and retail partners market shares. This will allow you to align your strategy for product to the preferences of consumers. Additionally, you can make use of POS data to optimize inventory levels and reduce the chance of overstocking. It can also be used to evaluate the effectiveness of promotions.
Tip 6: Make an Point of Service
Power tools is a high-profit complex market that requires substantial marketing and sales efforts in order to stay competitive. In the past, getting a competitive advantage in this market was accomplished through pricing or positioning products. But these methods are not as effective in the current world of omnichannels where information is easily shared.
Retailers who are committed to providing a high level 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, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool section. The department was initially home to a variety of brands. However, as he listened to contractors, he noticed that they were loyal to their favorite brand.
Karch and his team ask their customers what they intend to do with a tool before showing them the possibilities. This gives them confidence to recommend the right tool for the job and builds trust with the customer. Customers who are familiar with 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 in a fiercely competitive market. People who succeed in this category tends to be more devoted to a single brand rather than to carry a variety of manufacturers. The size of the space a retailer has to devote to this category can also play a role in how many brands it can carry.
When customers come in to purchase an electric tool, they often need help selecting the right product. Whether they are replacing an old one damaged or undertaking the task of renovating Customers need advice from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions in order to make the sale. They begin by asking questions about what the customer plans to use the tool according to him. "That's how you determine the type of tool you need," he says. Then, they inquire about the project and the level of experience the customer has with different kinds of projects.
Tip 8: Be sure to be sure to mention your warranty
The warranties of power tool manufacturers differ greatly. Certain manufacturers offer a full warranty, while others are more limited or do not offer warranties for certain tools. It's important for retailers to know the differences prior to purchasing, as 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 department and an on-site repair shop that repairs 50 different types of tools. He has realized over the years that many of his customers who are contractors are brand loyal, so he prefers to focus on a limited number of brands rather than attempting to carry a sampling of different products.
power tools stores near me likes that his employees have the opportunity to get one-on-one time with vendors to discuss new products and provide feedback. This kind of interaction is essential as it helps create trust between the retailer and customers. Good relationships with suppliers may even result in discounts on future purchases.