Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both consumers and professionals. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, demand remains near or at pre-pandemic levels.
Home Depot is the leader in power tool sales by 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 prioritize sales over marketing. This is because a long-term sales requires a lot of back and forth communication and a thorough understanding of the product. This kind of communication doesn't permit emotional marketing strategies.
However, industrial tools manufacturing companies must rethink their marketing strategy. The digital age has raced past traditional manufacturers who rely on a small circle of retailers and distributors to sell their products.
A key to selling power tools is brand commitment. When a customer is loyal to a brand they are less prone to the messages of competitors. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to friends and family.
You require a well-planned strategy to have an impact on the American market. This involves adapting tools to local requirements and positioning your brand in a way that is competitive, and leveraging marketing platforms and distribution channels. It is also crucial to cooperate with local authorities, industry associations, and experts. You can be sure that your power tool will meet the standards and regulations of the country if you do this.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they offer particularly in a market that places such a high importance on the quality of products. This will enable them to make informed choices about what they can offer their customers. This knowledge could make the difference between a successful or bad sale.
Knowing that a certain tool is perfect for a specific project will assist you in matching the perfect tool to your customer's needs. You'll earn trust and a sense of loyalty among your customers. It will also give you the confidence that you're offering the complete solution.
Understanding DIY culture trends can aid in understanding your customers' needs. As an example increasing numbers of homeowners are completing home improvement projects that require the use of power tool. This could lead to a rise in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However sales in stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace an old one or tackle an upcoming 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. Customers may require additional accessories or upgrade to a better-performing model.
Your customer may have experience in DIY or is new to the hobby they will need to replace carbon brushes, drive cords and power cords of their tools in time. These basic items will ensure that your customer reaps the maximum benefit out of their investment.
When purchasing power tools, technicians take into consideration three aspects: the tool's application the power source, and safety. These aspects allow technicians to make informed choices when selecting the right tools for their maintenance and repair work. This helps them maximize the efficiency of their tools and reduce the cost of owning it.
Tip 4: Always Keep Up With Technology
The most recent power tools, like, offer smart technology which enhances the user experience and differentiates them from rivals who depend on older battery technology. Wholesalers of B2B who stock and sell these tools could increase sales by targeting professionals and contractors who are tech-savvy.
Karch's business, with more than 30 years of experience, and a 12,000 square foot tooling department is a testimony 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 hold their designs for five or ten years, but now they change them each year."
B2B wholesalers should not just adopt the latest technology, but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the fatigue caused by prolonged use. These features are crucial for a large number of professionals who must make use of the tools for long periods of time. Home Page is split into the consumer and professional segments. This means that major players are always working to improve their designs and develop new features in order to appeal to a wider public.
Tip 5: Create a Point of Sales
The online marketplace has changed the power tool market. The advancements in data collection techniques have enabled professionals in the field to get a holistic view of market trends and help them develop marketing and inventory strategies more efficiently.
Point of sale (POS) information for instance, allows you to track the types of projects DIYers undertake when purchasing tools and accessories. Knowing what projects your customers are working on enables you to upsell and offer add-ons. It helps you anticipate the needs of your customers, so that you always have the right products on hand.
Additionally, transaction data can help you to detect trends in the market and adjust your production cycles accordingly. For instance, you can use this data to monitor 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 assess the effectiveness of promotional campaigns.
Tip 6: Make an Point of Service
Power tools are a complex market that is high-profit and requires a substantial amount of sales and marketing effort to remain in the game. In the past, getting an advantage in this market was achieved by establishing prices or positioning of products. However, these tactics are not effective in today's world of omnichannels where information is readily communicated.
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 department. His initial department featured several brands. However, as he listened to contractors, he realized that they were loyal to their preferred brand.
To be successful in their customers' 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 confidence to recommend the right tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely than others to blame the store for a failure of a tool on the job.
Tip 7: Be a guru in customer service
Power tool retailers are facing an extremely competitive market. Those who have seen success in this area tend to make a strong commitment to a brand rather than simply carrying a sampling of manufacturers. The size of the space a retailer has to dedicate to this category could also affect the number of brands it can carry.
Customers often need assistance when they go in to purchase a power device. Sales associates can offer the best advice to customers who are seeking to replace a damaged tool or are planning a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is educated to ask the right questions in order to make a sale. They begin by asking questions about what the buyer is planning to do with the tool according to him. "That's the primary factor in deciding what kind of tool to market them," he adds. The next step is to inquire about the project and what level of experience the customer has with various types of projects.
Tip 8: Create a Point of Warranty
The warranties of power tool manufacturers differ greatly. Some are fully comprehensive, while some aren't as generous or refuse to cover certain aspects of the tool at all. It is crucial for retailers to know the distinctions before buying, since customers will buy tools from companies that back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department as well as an on-site repair shop that repairs 50 different lines of tools. He has realized through the years that a majority of his customers who are contractors are brand loyal, so he focuses on only a few brands rather than attempting to offer a variety of products.
He is also happy that his employees have the ability to meet with vendors in person to discuss new products and exchange feedback. This kind of interaction is vital since it builds trust between the customers and employees. Good relationships with suppliers may even result in discounts on future purchases.