Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. Despite the fact that 2021 will see a slowdown due to the COVID-19 virus, demand remains near or at pre-pandemic levels.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's follows closely. Both are however facing stiff competition from China-manufactured power tools.
Tip 1: Make a commitment to a brand
Many industrial product manufacturers place an emphasis on sales than 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.
But, companies that produce industrial tools need to rethink their marketing strategy. The digital age has outpaced traditional manufacturers who depend on a few distributors and retail outlets to sell their products.
A key to selling power tools is brand loyalty. If a client is committed to a brand, they will be less sensitive to communications from competitors. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to others.
To have a positive impact in the United States market, you must have a well-planned strategy. This means adjusting your tools to meet local requirements, positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also essential to work with local authorities and industry associations as well as experts. By doing so you can be sure that the power tools you purchase be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
Retailers should be familiar with the products they sell, especially in a market which places a great value on the quality of the product. This will allow them to make informed decisions about what they are selling. This information can be the difference between a successful or a bad purchase.
Knowing which tool is suitable for a project will help you match the right tool to the requirements of your customer. This will help you build trust and loyalty with your customers. This will help you feel confident that you are offering a complete service.
Understanding DIY culture trends can also help you better understand your customers' needs. As an example increasing numbers of homeowners are completing home improvement projects that require the use of power tools. This could lead to an increase in 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 drop year-over-year. Despite this the fact that sales on both stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to replace one that has failed or to embark on an entirely new project. Both of these can be used to increase sales and additional 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. Customers may require additional accessories or upgrade to a higher-performing model.
If your customer is experienced in DIY or is just beginning the hobby, they will need to replace the carbon brushes, drive cords and the power cords on their power tools in time. Keeping up with these essentials will allow your customer to make the most of their investment.
Technicians consider three key items when making power tool purchases applications, how it will be operated and safety. These aspects help technicians make informed decisions when choosing the appropriate tools for their maintenance and repair tasks. This enables them to maximize the efficiency of their tools and reduce the expense of owning it.
Tip 4: Continue to Keep Up With Technology
For instance, the most recent power tools feature smart technology that improves users' experience and differentiates them from other tools that rely on old battery technology. Wholesalers in B2B who offer and sell these tools can boost sales by targeting professionals and contractors who are technologically advanced.
For Karch who's business has more than three years of experience and a 12,000-square-foot tool department, staying current with new technologies is essential. He says that manufacturers are constantly changing their product designs. "They used to keep their designs for five or 10 years, but they're now changing them 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 strain caused by long use. These features are essential for a lot of professionals who must utilize the tools for lengthy periods of time. The power tool industry is divided into professional and consumer groups. This means that the major players are constantly striving to improve their designs and develop new features in order to appeal to a wider market.
Tip 5: Make a Point of Sales
The e-commerce market has changed the power tools market. Modern methods for data collection have enabled professionals in the field to get an overall perspective of market trends which allows them to design marketing and inventory strategies more effectively.
Utilizing information from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects that customers are completing when purchasing power tools and accessories. Knowing the types of projects that your customers are working on enables you to provide additional sales and opportunities to upsell. It also helps you anticipate the needs of your customers and ensure that you have the right products on hand.
Moreover, transaction data enables you to detect trends in the market and adjust your production cycles accordingly. You could, for instance, use this data to track fluctuations in your retail partners' and your brand's market shares. This will allow you to align your strategy for product to consumer preferences. Similarly, you can use POS data to improve inventory levels and reduce the chance of overstocking. power tool shops helps to assess the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools is a profitable complex market that requires substantial marketing and sales efforts to stay competitive. In the past a competitive advantage in this market was achieved through pricing or positioning products. However, these tactics are not as effective in the current world of omnichannels where information is easily communicated.
Retailers who make a point 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. In the beginning, his store featured various brands, but as he began to listen to customers who were contractors and found that the majority were brand loyal.
Karch and his staff ask their customers what they plan to accomplish using a tool prior to showing them the options. This gives them the confidence to recommend the best tool for a job, and builds trust with customers. Customers who are familiar with their product are less likely than others 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 market tend to be more loyal 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 number of brands it can carry.
When customers visit a store to purchase an electric tool and require assistance, they usually need help selecting a product. If they're replacing an old one that is broken or tackling a renovation project clients require expert advice from sales representatives.
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 lead to an offer. They begin by asking what the customer is planning to do with the tool according to him. "That's the most important factor to consider when deciding the type of tool to offer them," he adds. Then they ask about the customer's experience with various types of projects and the project.
Tip 8: Create a Point of Warranty
The warranty policies of the manufacturers of power tools differ greatly. Some are fully comprehensive, while some are stingy or even refuse to cover certain aspects of the equipment. It's crucial for retailers to be aware of these differences before purchasing, as buyers will purchase tools from companies that back them up.
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 lines of tools. He has learned over time that a lot of his contractors are loyal to their brands, which is why he prefers to focus on the most popular brands rather than attempting to offer a wide range of products.
He also appreciates that his employees are able to meet with vendors one-on-one to discuss new products and share feedback. This kind of interaction is vital because it helps build trust between the store's customers and employees. Building strong relationships with suppliers could lead to discounts on future purchases.