Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. The demand for power tools is 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 power tool sales based on dollar share. Lowe's is close behind. Both are competing against power tools made in China.
Tip 1: Create an Efficacious Brand Commitment
Many manufacturers of industrial products put an emphasis on sales than marketing. This is because a long-term sale requires a lot of back-and-forth communication and a thorough understanding of the product. This type of communication is not conducive to emotional marketing tactics.
Nevertheless, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital age has raced past traditional companies that rely on a small group of distributors and retailers for sales.
A key to power tool sales is brand loyalty. If a customer is committed to a brand they are less prone to messages from competitors. Moreover, they are more likely to purchase the client's product again and recommend it to others.
To have a positive impact on the United States market, you must have a well-planned strategy. This includes adapting tools to local requirements and positioning brands in a manner that is competitive and making use of distribution and marketing platforms channels. Collaboration with local authorities as well as associations and experts is also crucial. You can be sure that your power tool will meet the requirements and standards of the country when you do this.
Tip 2: Know Your Products
In a marketplace where product quality is important, retailers must be aware of the products they offer. This will allow them to make informed decisions about what they offer. This information can be the difference between a successful or bad sale.
For example knowing that a particular tool is best suited to a particular project will allow you to match your customer with the best tool for their requirements. This will aid in building trust and loyalty with your customers. This will ensure that you're providing an entire service.
Understanding DIY culture trends can also help you understand your customers' needs. For instance, a rising number of homeowners are undertaking home renovation projects which require power tools. This can lead a spike in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16%. However, Ryobi and Craftsman have decreased their share year-over-year. However the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most common reason that a buyer makes a tool purchase is to replace one that has broken down or to take on the task of a new one. Both provide opportunities for upsells or 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 a planned replacement. Customers may require additional accessories, or upgrade to a more powerful model.
If your customer is an experienced DIYer or new to the hobby, they'll require replacement of their power tools' carbon brushes drive belts, drive belts, and power cords over 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 factors: the application the power source, and security. These factors aid technicians in making informed decisions about the best tools to use for their repairs and maintenance work. This enables them to maximize the efficiency of their tools and lower the cost of owning it.
Tip 4: Always Keep Up With Technology
For instance, the latest battery tools have smart technology that improves the user experience and sets them apart from competitors that still depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by focusing on professionals and contractors who are tech-savvy.
Karch's business, with over 30 years of experience and a 12,000 square feet tooling department is a testimony to the importance of staying current with the latest technologies. "Manufactures are constantly adjusting the design of their products" he says. "They used to hold their designs for five or 10 years, but now they're changing them every year."
B2B wholesalers need to not only 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 essential for many contractors working in the field who utilize the tools for a lengthy period of time. The market for power tools is divided into professional and consumer groups which means that the major players are constantly enhancing their designs and creating new features that will appeal to a wider audience.
Tip 5: Make an Point of Sale
The online marketplace has changed the market for power tools. Advancements in data collection methods have allowed professionals in the field to get a holistic view of market trends and help them develop inventory and marketing strategies more efficiently.
Utilizing information from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects your customers undertake when buying power tools and other accessories. Knowing the kinds of projects that your customers are working on enables you to offer add-on sales and opportunities to upsell. It helps you anticipate the needs of your customers to ensure that you have the right products in your shelves.
You can also use transaction data to determine trends in the market and adapt 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 align your product strategies with consumer preferences. Additionally, you can make use of POS data to improve inventory levels and reduce the risk of overstocking. It can also help you to assess the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a complicated, high-profit market that requires a significant amount of marketing and sales effort to remain in the game. In power tool store , getting an advantage in this market was achieved through pricing or positioning products. However, these tactics are no longer effective in today's multichannel environment, where information is easily shared.
Retailers who focus on service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin is the owner of a 12,000-square-foot power tool department. power tools shops was initially home to a variety of brands. However, as he listened to contractors, he discovered that they were loyal to their favorite brand.
Karch and his staff members ask their customers what they plan to do with a tool before presenting them with the alternatives. This gives them the confidence to recommend the best tool for a job, and it creates trust with customers. Customers who know their product are less likely to blame their vendor for a tool malfunction on the job.
Tip 7: Create a point of customer service
Power tool retailers face an extremely competitive market. Those who have seen success in this category tend to make a firm commitment to a particular brand instead of simply carrying a few manufacturers. The amount of space a retailer has to devote to the category may also affect the number of brands it can carry.
Customers usually require assistance when they visit to purchase a power tool. Sales associates can provide professional guidance to customers looking to replace a damaged tool or are planning an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are trained to ask questions that can lead to the sale. They start by asking what the buyer is planning to do with the tool, he says. "That's the way to determine the type of tool they need," he says. Then they ask about the experience of the customer with different types projects and the project.
Tip 8: Make sure to make mention of your warranty
The warranties of power tool manufacturers are quite different. Some manufacturers offer a comprehensive warranty, while others offer more limited warranties or do not offer warranties for certain tools. It's important for retailers to know the differences prior to buying, since customers 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 an 12,000 square foot power tool department and an on-site repair shop that repairs 50 different types of tools. He has learned that many of his contractors are loyal to their brands. Therefore, he prefers to carry a select few brands rather than carry a variety of products.
He is also pleased that his employees are able to meet with vendors one-on-1 to discuss new products and share feedback. This type of personal interaction is crucial because it helps establish trust between the store and its customers. Good relationships with suppliers can even result in discounts on future purchases.