Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. The demand for power tools is at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic in 2021.
Home Depot is the leader in the sales of power tools based on dollar share. Lowe's is not far behind. But both companies are being pushed by China-made power tools.
Tip 1: Be committed to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term purchase requires a lot of back and forth communication and a thorough understanding of the product. This kind of communication isn't conducive to emotional marketing tactics.
However, companies that make industrial tools should rethink their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a small group of distributors and retail outlets to sell their products.
Brand commitment is an important factor in power tool sales. When a customer is adamant about a particular brand they are less receptive to the messages of competitors. In addition, they are more likely to purchase the product of the client time and time again and recommend it others.
It is essential to have a well-planned strategy to be successful in the American market. This means adapting your tools to meet the local requirements, positioning your brand in a strategic way, and leveraging marketing channels and distribution channels. It is also important to work with local authorities as well as industry associations and experts. You can be certain that your power tool will meet the standards and regulations of the country when you follow these guidelines.
Tip 2: Know Your Products
In a market where product quality is so crucial, retailers should be aware of the products they offer. This will enable them to make informed decisions about what they offer. This knowledge can also make the difference between a good deal and a bad one.
Knowing that a certain tool is perfect for a particular project will aid in matching the right tool to your customer's needs. This will allow you to build trust and loyalty with your customers. This will ensure that you are offering a complete service.
Understanding DIY cultural trends can help you better understand the needs of your customers. For instance, a growing number of homeowners are undertaking home renovation projects that require the use of power tools. This can lead to an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, although Ryobi and Craftsman brands have seen their share drop year-over-year. Despite this the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair an old one or tackle the new project. Both of these tools offer opportunities for upsells or add-on 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 an anticipated replacement. Customers often require additional accessories or may need to upgrade to higher quality models.
No matter if your customer is an experienced DIYer or new to the hobby, they will likely require replacement of their carbon brushes for power tools as well as drive belts and power cords with time. These basic items will ensure that your client gets the most out of their investment.
Technicians take into consideration three main aspects when purchasing power tools applications, how it will be powered and safety. These factors help technicians make educated decisions about the most suitable tools to use in their repairs and maintenance tasks. This helps them maximize the performance of their tool and lower the cost of owning it.
Tip 4: Continue to Keep Up with Technology
The latest power tools, for example they feature smart technology that improves the user's experience and differentiates them from competitors who still depend on older battery technology. Wholesalers in B2B who carry and sell these devices can increase sales by targeting professionals and contractors who are technologically advanced.
For Karch, whose business has more than three years of experience and a 2,000-square-foot department for tools, staying up with new technologies is essential. He says that manufacturers are constantly changing their designs for their products. "They used to keep their designs for five or ten years, but they're now changing them every year."
In addition to embracing the modern technologies, B2B wholesalers should also be looking to improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the strain caused by long use. These features are important for a large number of professionals who have to use the tools for long periods of time. The industry of power tools is divided into consumer and professional groups and this means that the biggest players are constantly enhancing their designs and creating new features to reach a wider audience.
Tip 5: Create a Point of Sales
The landscape of e-commerce has transformed the market for power tools. The advancements in data collection techniques have allowed professionals in the field to get an entire perspective of market trends, allowing them to shape strategies for inventory and marketing more efficiently.
Point of sale (POS) information, for instance, allows you to monitor the kinds of projects DIYers undertake when they purchase tools and accessories. Knowing the types of projects your customers are undertaking enables you to provide additional sales and opportunities for upselling. It helps you anticipate your customers' needs, so that you always have the right products in your shelves.
You can also use transaction data to determine market trends, and adjust production cycles in line with these trends. For instance, you can, use this data to monitor fluctuations of your retail partners' and brand's' market shares. This will allow you to align product strategies with consumer preferences. power tool deals can also be utilized to optimize levels of inventory, reducing the risk of overstocking. It can also be used to determine the effectiveness of promotional campaigns.
Tip 6: Make a Point of Service
Power tools are a tangled market that is high-profit and requires a substantial amount marketing and sales efforts to stay in the game. In the past, gaining a competitive advantage in this market was accomplished by establishing prices or positioning of products. However, these tactics are no longer effective in today's world of omnichannels where information is easily communicated.
Retailers who make a point 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 department. In the beginning, his store featured various brands, but when he began listening to customers who were contractors, he discovered that the majority were brand loyal.
To win their customers' business, Karch and his team first ask customers what they would like to accomplish with the tool, then show them the tools they have available. This gives them the confidence to recommend the appropriate tool for the job and creates trust with customers. Customers who are familiar with their product are less likely than others to blame the store for a failure of a device on the job.
Tip 7: Create a Point of Customer Service
Power tool retailers are in a fiercely competitive market. Those who are successful in this market tend to be more devoted to a single brand than to carry a variety of manufacturers. The size of the space that a retailer needs to devote to the category may also affect the amount of brands it is able to carry.
Customers frequently require assistance when they come in to purchase a power device. Sales associates can offer professional advice to customers looking to replace a broken tool or undertaking the renovation of their home.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are educated to ask questions that could lead to a sale. They start by asking what the customer plans to do with the tool according to him. "That's the key to determining the kind of tool to market them," he adds. Then, they inquire about the project and the level of experience the customer has with various types of projects.
Tip 8: Create an End of Warranty
The warranty policies of power tool manufacturers are quite different. Some are completely complete, while others are stingy or even refuse to cover certain aspects of the tool at all. It's crucial for retailers to know the distinctions before purchasing, as customers will buy tools from companies that offer warranties.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tools department as well as an in-house repair shop that handles 50 kinds of tools. He has discovered that a lot of his clients are loyal to a particular brand. So, he chooses to carry only a few brands rather than carry samples of different products.
He is also pleased that his employees have the ability to meet with vendors in person to discuss new products and share feedback. This kind of interaction is vital because it helps build trust between the store's clients and employees. Good relationships with suppliers can even result in discounts on future purchases.