Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 virus, the demand is still at or near levels prior to the pandemic.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is close behind. But both companies are being pushed by China-made power tools.
Tip 1: Make an Engagement to Brands
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term sale requires a lot of back and forth communication and detailed product knowledge. This kind of communication does not lend itself to emotional consumer marketing strategies.
However, industrial tool manufacturing companies should consider rethinking their marketing strategy. power tool offers has outpaced traditional manufacturers who depend on a few distributors and retail outlets to sell their products.
Brand loyalty is a major factor in power tool sales. If a customer is committed to a brand, they will be less sensitive to communications from competitors. In addition, they are more likely to buy the client's product repeatedly and recommend it to others.
It is essential to have a well-planned strategy to make an impact on the American market. This means adapting your tools to local needs and positioning your brand in a competitive manner, and using marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. By doing so you can be sure that your power tools will be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
In a market where quality of the product is so crucial, retailers should be aware of the products they offer. This will help them make informed decisions about the products they can offer their customers. This knowledge can also make the difference between a good deal and a bad one.
Knowing that a certain tool is ideal for a project will assist you in matching the perfect tool to the needs of your customer. You'll earn trust and loyalty with your customers. It will also give you the confidence that you're offering the complete solution.
In addition, understanding the trends in DIY culture can help you comprehend what your customers want. For instance the increasing number of homeowners are taking on home improvement projects that require the use of power tools. This could lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The most common reason a consumer makes a power purchase is to either replace one that has failed or to embark on the task of a new one. Both offer 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 of power tools were the result of a planned replacement. The customers might require additional accessories, or upgrade to a more powerful model.
No matter if your customer is a seasoned DIYer or is new to the hobby, they'll likely need to replace their carbon brushes for power tools drive belts, drive belts, and power cords as time goes by. These items will ensure your client gets the most out of their investment.
When buying 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 it comes to selecting the right tools for their repair and maintenance work. This helps them maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Stay up-to-date with the latest technologies.
For example, the latest power tools feature smart technology that improves the user experience and sets them apart from other brands that still rely on older battery technology. B2B wholesalers who stock and sell these tools can increase sales by focusing on professionals and contractors who are tech-savvy.
Karch's company, which has more than 30 years of experience and a 12,000 square foot tooling department is a testament to the importance of staying up-to-date with the latest technology. "Manufactures are constantly changing the design of their products" Karch says. "They used to hold their designs for five or 10 years, but now they alter their designs every year."
B2B wholesalers should not just take advantage of the latest technologies, but also upgrade their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are essential for a lot of professionals who must use the tools for long durations. The market for power tools is divided into professional and consumer groups. This means that major players are constantly striving to improve their designs and create new features to reach a wider market.
Tip 5: Create a Point of Sales
The landscape of e-commerce has transformed the market for power tools. Data collection techniques have improved and business professionals can get a better understanding of the market. This helps them develop more effective marketing and inventory strategies.
Utilizing data from the point of sale (POS) You can track DIY projects that customers complete when purchasing power tools and other accessories. Knowing the kinds of projects that your customers are working on enables you to offer additional sales and upsell opportunities. It helps you anticipate your customers' needs, so that you always have the right products in hand.
Moreover, transaction data enables you to detect trends in the market and adjust production cycles in line with. You could, for instance utilize this data to track fluctuations in your retail partners' and brand's' market shares. This allows you to align product strategies with consumer preferences. POS data can also be used to improve inventory levels, reducing the risk of stocking up. It also helps to assess the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a lucrative complex market that requires significant sales and marketing efforts to stay competitive. The most common methods of gaining a strategic advantage in this market were by establishing pricing or positioning of products, but these tactics no longer work in the omnichannel world of today where information is shared so quickly.
Retailers who provide 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. Initially, his department featured several brands, but as he began to listen to the customers of contractors, he learned that most were brand loyal.
Karch and his staff ask their customers what they intend to accomplish using a tool prior to showing them the alternatives. This gives them the confidence to recommend the right tool for a job, and it builds trust with customers. Customers who are familiar with their product are less likely to blame the retailer for the failure of a tool on the job.
Tip 7: Become a guru in customer service
Power tool retailers are facing a fiercely competitive market. Those who are successful in this category tends to be more committed to a single brand than to carry a variety of brands. The amount of space that a retailer needs to devote to the category may also play a role in the number of brands it can carry.
When customers come in to purchase a power tool they may need assistance selecting a product. When they're replacing an old tool that is broken or tackling a renovation project clients require expert advice from sales representatives.
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 to make the sale. They begin by asking the customer what they intend to do with the product. "That's the most important factor to consider when deciding the kind of tool to offer them," he adds. Then, they inquire about the experience of the customer with different types of projects as well as the project.
Tip 8: Create an End of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some companies offer a complete warranty, whereas others offer a limited warranty or do not offer warranties for certain tools. It is crucial for retailers to be aware of 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 a 12,000 square foot power tool department and a repair shop on site that repairs 50 different brands of tools. He has learned that many of his clients are brand loyal. So, he chooses to carry a select few brands rather than offer samples of various products.
He also appreciates that his employees are able to meet with vendors one-on-1 to discuss new products and give feedback. This type of personal interaction is essential because it helps build trust between the store's clients and employees. Good relationships with suppliers can even result in discounts for future purchases.