Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumer and professional use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near pre-pandemic levels.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's follows closely behind. Both are competing with power tools made in China.
Tip 1: Create a Brand Commitment
Many industrial products manufacturers prioritize sales over marketing. This is because the long-term sales process requires a lot of back-and-forth communication and detailed knowledge of the product. This type of communication is not conducive to emotional marketing tactics.
However, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital age has overtaken traditional companies that rely on a few retailers and distributors to sell their products.
Brand commitment is an important factor in power tool sales. If a client is loyal to a particular brand, they will be less prone to the messages of competitors. They are also more likely to buy the client's products again and to recommend them to friends and family.
You need a well-planned plan to make an impact on the American market. This includes adapting tools to local requirements and positioning your brand in a competitive manner, and leveraging marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also essential. You can be sure that your power tool will meet the standards and regulations of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they sell, especially in a market that places such a high value on product quality. This will allow them to make informed choices about the products they can offer their customers. This knowledge can make the difference between making a successful or a poor sale.
For example knowing that a particular tool is suitable for the particular task can help you match your customer with the best tool for their requirements. You'll build trust and a sense of loyalty among your customers. This will help you feel confident that you are offering an entire service.
Understanding DIY culture trends can also help you understand your customers' needs. For instance, more homeowners are undertaking home improvement projects that require the use of power tool. This could lead to a rise in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. However sales in stores and online are growing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair a broken one or to tackle an upcoming project. 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 an anticipated replacement. The customers might require additional accessories, or upgrade to a better-performing model.
Whether your customer is an experienced DIYer or just starting out in the hobby, they'll require replacement of their carbon brushes for power tools drive belts, drive belts, and power cords over time. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
When buying power tools, technicians look at three aspects: the tool's application, the power source and safety. These aspects help technicians make informed choices when it comes to selecting the right tools for their maintenance and repair work. This allows them to optimize the effectiveness of their tools and lower the cost of ownership.
Tip 4: Keep current with the latest technology
For instance, the latest power tools feature intelligent technology that enhances users' experience and differentiates them from other tools that depend on old-fashioned battery technology. Wholesalers of B2B that stock and sell these devices can boost sales by targeting professionals and contractors who are technologically advanced.
For Karch, whose business has more than three years of experience and a 12,000-square-foot department for tools, staying up with new technologies is essential. "Manufactures are constantly changing the look of their products," he says. "They used to keep their designs for five or ten years, but they're now changing them each year."
In addition to taking advantage of the most recent technologies, B2B wholesalers should also be looking to improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are crucial for professionals who employ the tools for a long period of time. The market for power tools is divided between professional and consumer groups. This means that the biggest players are constantly working to improve their designs and develop new features in order to reach a wider audience.
Tip 5: Make an Point of Sale
The ecommerce landscape has changed the power tool market. Data collection techniques have improved, allowing business professionals to get a better understanding of the market. This allows them to create more effective marketing and inventory strategies.
Point of sale (POS) information for instance, allows you to monitor the kinds of projects DIYers tackle when purchasing power tools and other accessories. Knowing the type of projects that your customers are working on allows you to provide additional sales and opportunities to upsell. It also helps you anticipate the requirements of your clients, ensuring that you have the appropriate products in stock.
Moreover, transaction data enables you to spot trends in the market and adjust production cycles in line with. You can, for example make use of this information to monitor fluctuations of your retail partners' and brand's market shares. This allows you to align your product strategies to consumer preferences. POS data can also be utilized to optimize inventory levels, reducing the chance of overstocking. It is also used to determine the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools are a complicated market that is high-profit and requires a substantial amount of marketing and sales effort to stay in the game. The traditional methods to gain an advantage in this field have been through pricing or product positioning--but these methods are no longer effective in the omnichannel world of today where information is shared so quickly.
Retailers who are committed to providing a high level of providing excellent service are more likely to retain customers and develop brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. The department was initially home to a variety of brands. However, as he listened to contractors, he discovered that they were loyal to their favorite brand.
To make a mark in their customers' business, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them the tools they have available. This gives them the confidence to recommend the right tool for a job, and increases trust with their customers. Customers who know their product well are less likely to blame their vendor for a tool malfunction on the job.
Tip 7: Be a master of customer service
Power tool retailers are facing an extremely competitive market. People who succeed in this market tend to be more loyal to a specific brand rather than to carry a variety of brands. The size of the space a retailer must devote to the category may also affect how many brands it can carry.
Customers usually require assistance when they go in to buy a power tool. Sales associates can provide the best advice to customers who are looking to replace a damaged device or completing the renovation of their home.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is trained to ask questions that could result in an offer. They begin by asking what the customer is planning to use the tool according to him. "That's the key to determining the type of tool to market them," he adds. Then they ask about the experience of the customer with different types projects and the project.
Tip 8: Create a Point of Warranty
The warranties of the manufacturers of power tools are quite different. Some are fully comprehensive, while some aren't as generous or refuse to cover certain aspects of the tool at all. Before buying a product, it is crucial that the retailer understands the distinctions. Customers will only purchase tools from companies that provide a warranty.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000-square-foot power tool department and an repair shop within the premises that can handle 50 models of tools. He has discovered through the years that a majority of his contractors are loyal to their brands, which is why the company prefers to stick to only a few brands rather than carry a sampling of different products.
He is also pleased that his employees are able to meet with vendors in person to discuss new products and exchange feedback. This kind of interaction is essential because it helps establish trust between the store and its customers. Good relationships with suppliers can even result in discounts on future purchases.