Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. Despite a slowdown in 2021 due to the COVID-19 virus, demand remains close to or at levels prior to the pandemic.
Home Depot is the leader in sales of power tools based on dollar share. Lowe's is second in line. Both are competing with power tools manufactured in China.
Tip 1: Commit to a brand
Many manufacturers of industrial products place an emphasis on sales than marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication as well as a detailed understanding of the product. This kind of communication isn't ideal for marketing that is based on emotion.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital world has raced past traditional companies that rely on a small circle of retailers and distributors to sell their products.
A key to selling power tools is brand commitment. When a buyer is adamant about a particular brand, they are less sensitive to competitors' communications. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others.
You require a well-planned strategy to be successful in the American market. This means adjusting your tools to meet local requirements, positioning your brand in a strategic way, and making use of distribution channels and marketing platforms. Collaboration with local authorities and associations, as well as experts is also essential. When you do this, you can be confident that your power tools will comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they are selling especially in a marketplace that places such a high value on the quality of the product. This will allow them to make informed choices about the products they offer. This knowledge can also make the difference between a good sale and a poor one.
Knowing that a certain tool is suitable for a specific project will help you match the right tool to the requirements of your customer. You'll build trust and loyalty among your customers. It will also give you the confidence that you're providing a complete solution.
Additionally, understanding the trends in DIY culture can help you understand what your customers want. For instance increasing numbers of homeowners are completing home renovations that require the use of power tools. This can result in a surge in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have seen their share decrease year-over-year. However the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace an old one or tackle the 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 power tool purchases were the result of an anticipated replacement. The customers might require additional accessories, or upgrade to a more powerful model.
If your customer is experienced in DIY or is new to the hobby, they will have to replace carbon brushes, drive cords and power cords of their power tools in time. These basic items will ensure that your client gets the most from their investment.
When purchasing power tools, technicians take into consideration three factors: the application the power source, and security. These aspects allow technicians to make informed choices when it comes to selecting the right tools for maintenance and repair tasks. This helps them maximize the effectiveness of their tool and reduce the expense of owning it.
Tip 4: Stay current with the latest technology
The most modern power tools, for example are equipped with smart technology that improves the user's experience and differentiates them from those who rely on old-fashioned battery technology. Wholesalers of B2B who stock and sell these tools can boost sales by targeting professionals and contractors who are tech-savvy.
Karch's company, which has over 30 years of experience, and a 12,000 square feet tooling department is a testament to the importance of keeping current with the latest technologies. "Manufactures are constantly changing the look of their products" Karch says. "They used hold their designs for five or ten years, but now they change them each year."
In addition to taking advantage of the modern technologies, B2B wholesalers should also be looking to improve existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the strain caused by long use. These features are important for a large number of professionals who have to utilize the tools for lengthy periods of time. The industry of 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 reach a wider audience.
Tip 5: Make a Point of Sales
The ecommerce landscape has changed the power tool market. Data collection techniques have been improved allowing business professionals to gain a better understanding of the market. This allows them to develop more effective inventory and marketing strategies.
By utilizing data from the point of sale (POS), you can track DIY projects your customers complete when purchasing power tools and accessories. Knowing what projects your customers are working on enables you to upsell and offer extras. It helps you anticipate the needs of your customers to ensure that you have the right products on the market.
Furthermore, transaction data allows you to detect trends in the market and adjust your production cycles accordingly. For example, you can make use of this information to track changes in your brand's and market share of retail partners, enabling you to match your product strategies to consumer preferences. POS data can also be used to optimize inventory levels, reducing the risk of overstocking. It also helps to evaluate the effectiveness of promotional campaigns.
Tip 6: Create a Point of Service
Power tools is a high-profit complex market that requires substantial marketing and sales efforts in order to remain competitive. In the past, gaining a competitive advantage in this market was accomplished by establishing prices or positioning of products. However, these tactics are not as effective in the current world of omnichannels where information is readily available to be shared.
Retailers who provide a high level of providing excellent 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. At first, the department offered several brands, but as he began to listen to contractor customers, he discovered that the majority were loyal to a particular brand.
Karch and his staff members ask their customers what they would like to accomplish using a tool prior to showing them the options. 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 retailer for a malfunctioning tool during the course of work.
Tip 7: Become a customer service guru
The market for power tools has become a highly competitive market for retailers of hardware. Those who are successful in this area tend to be more loyal to a single brand than to carry a variety of manufacturers. The amount of space a retailer must devote to this category can also play a role in how many brands it can carry.
Customers often need assistance when they come in to purchase a power tool. Sales associates can offer professional advice to customers who are looking to replace a broken device or completing a renovation project.
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 could result in an offer. They begin by asking questions about what the customer is planning to use the tool according to him. "That's the key to determining the type of tool to sell them," he adds. Then, they inquire about the project and the level of experience the customer has with different types of projects.
Tip 8: Be sure to be sure to mention your warranty
The warranty policies of the manufacturers of power tools differ greatly. Certain manufacturers offer a full warranty, whereas others offer more limited warranties or do not offer warranties for certain tools. It's crucial for retailers to be aware of the differences prior to buying, since buyers will purchase tools from firms that provide them with a warranty.
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 as well as a repair shop on site that repairs 50 different brands of tools. He has discovered that a lot of his clients are loyal to a particular brand. Therefore, Power tool Products prefers to carry a limited number of brands instead of trying to offer samples of various products.
He also appreciates that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and share feedback. This personal contact is important because it helps create trust between the retailer and customers. Good relationships with suppliers may even result in discounts for future purchases.