Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both consumers and professionals. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains near or at levels prior to the pandemic.
In terms of outlet dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is second in line. Both are competing against power tools made in China.
Tip 1: Make a Brand Commitment
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term sales process requires a lot of back-and-forth communication as well as a detailed understanding of the product. This type of communication does not lend itself to emotional consumer marketing techniques.
However, industrial tool manufacturing companies should consider rethinking their approach to marketing. The digital world has surpassed traditional manufacturers who depend on a few distributors and retail outlets to sell their products.
A key to selling power tools is brand loyalty. When a customer is committed to a certain brand, they are less sensitive to competitors' communications. In addition, they are more likely to buy the client's product time and time again and recommend it others.
To have a positive impact in the United States market, you need to have an organized strategy. This means adapting tools to local requirements and positioning brands in a way 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. In this way, you can be confident that the power tools you purchase comply with the country's regulations and standards.
Tip 2: Know Your Products
Retailers must be aware of the products they are selling especially in a marketplace which places a great importance on the quality of products. This will allow them to make informed choices about the products they offer their customers. This information can make the difference between a successful sale and a poor one.
Knowing that a certain tool is suitable for a particular project will aid in matching the right tool to the requirements of your customer. You'll earn trust and loyalty among your customers. It will also give you confidence that you're providing the complete solution.
Additionally, understanding the trends in DIY culture can help you better know what your customers are looking for. For instance the increasing number of homeowners are taking on home renovation projects requiring the use of power tool. This can result in an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. However, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason a consumer makes a power purchase is to either replace a tool that has been damaged or been damaged or broken, or to embark on the task of a new one. Both offer opportunities for upsells and add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all purchases of power tools are the result of planned replacements. The customers might require additional accessories, or upgrade to a better-performing model.
Whether your customer has experience in DIY or is new to the hobby, they will need to replace carbon brushes, drive cords, and power cords of their tools in time. These basic items will ensure that your customer reaps the maximum benefit out of their investment.
When buying power tools, technicians look at three factors: the application the power source, and security. These factors help technicians make educated decisions about the most suitable tools to use in their maintenance and repairs. This allows them to maximize the efficiency of their tools and reduce the cost of owning it.
Tip 4: Stay up to date with technology
The latest power tools, for example are equipped with smart technology that enhances the user experience and differentiates them from those who rely upon old battery technology. Wholesalers in B2B who carry and sell these devices can increase sales by focusing on professionals and contractors who are technologically advanced.
Karch's business, with over 30 years of experience and a 12,000 square foot tool department, is a testament to the importance of keeping current with the latest technologies. He states 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 each year."
B2B wholesalers should not just embrace the latest technologies but also upgrade their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can decrease fatigue from long-term use. These features are essential for a lot of professionals who must utilize the tools for lengthy durations. The market for power tools is divided into consumer and professional groups. This means that major players are constantly working to improve their designs and develop new features to reach a larger public.
Tip 5: Create a point of Sale
The online marketplace has changed the market for power tools. Data collection techniques have been improved allowing business professionals to gain a better understanding of the market. This allows them to create more efficient inventory and marketing strategies.
who makes the best power tools of sale (POS) information, for instance, allows you to track the types of projects DIYers undertake when purchasing power tools and other accessories. Knowing what projects your customers are working on allows you to offer upsells and extras. It also helps you to anticipate the requirements of your customers making sure you have the right products on hand.
You can also utilize transaction data to spot trends in the market and adapt production cycles accordingly. For instance, you could make use of this information to track fluctuations in your brand's or retail partner market shares which allows you to match your product strategies to consumer preferences. Additionally, you can make use of POS data to improve levels of inventory and decrease the risk of overstocking. It is also used to evaluate the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools are a complex market with high profits that requires a significant amount of marketing and sales effort to remain in the game. In the past an advantage in this market was achieved by establishing prices or positioning of products. However, these strategies are no longer effective in today's omnichannel environment where information is readily communicated.
Retailers who are committed to providing a high level of service are better able 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. Initially, his department featured a sampling of brands, but when he listened to customers who were contractors, he discovered that the majority were brand loyal.
Karch and his team ask their customers what they intend to accomplish using a tool prior to showing them the options. This gives them the confidence to recommend the best tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely than others to blame the store for the failure of a tool on the job.
Tip 7: Create an effort to be a Point of Customer Service
Power tool retailers face a fiercely competitive market. The retailers that have had success in this area tend to have a strong commitment to a particular brand instead of simply carrying a few manufacturers. The amount of space a retailer is able to devote to a category may also determine the number of brands they can carry.
Customers usually require assistance when they visit to purchase a power tool. When they're replacing an old model that is broken or tackling a renovation project Customers need advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is trained to ask questions that can result in a sale. They begin by asking what the customer is planning to use the tool, he adds. "That's the primary factor in deciding what kind of tool to offer them," he adds. Then, they inquire about the project and the level of experience they have with various types of projects.
Tip 8: Be sure to make mention of your warranty
The warranties of the power tool makers are very different. Some are completely comprehensive, while others aren't as generous or refuse to cover certain parts of the tools at all. It's crucial for retailers to know these differences before buying, since buyers will purchase tools from firms that provide them with 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 in-house repair shop that handles 50 lines of tools. He has learned that many of his contractor clients are brand loyal. So, he chooses to carry a select few brands rather than carry a variety of products.
He also appreciates that his employees have the ability to meet with vendors in person to discuss new products and exchange feedback. This kind of interaction is vital because it builds trust between the customers and employees. Good relationships with suppliers can even result in discounts for future purchases.