Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. Despite the fact that 2021 will see a slowdown due to the COVID-19 virus, demand remains close to or at pre-pandemic levels.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's is close behind. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Make a Brand Commitment
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term sales requires a lot of back and forth communication and in-depth knowledge of the product. This type of communication does not permit emotional marketing strategies.
However, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital age has raced past traditional companies that rely on a few retailers and distributors to sell their products.
Brand commitment is a key aspect in the sales of power tools. If a client is committed to a brand, they will be less prone to messages from competitors. They are also more likely to purchase the product of the customer again and to recommend them to friends and family.
To make a successful impact on the United States market, you must have a well-planned strategy. This means adjusting your tools to meet local requirements and positioning your brand in a competitive manner, and leveraging marketing channels and distribution channels. It is also crucial to cooperate with local authorities as well as industry associations and experts. You can be certain that your power tool will meet the requirements and standards of the country if you do this.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they sell, especially in a market that places such a high importance on the quality of products. This will enable them to make informed choices about the products they sell. This knowledge could make the difference between making a successful or bad sale.
Knowing which tool is suitable for a particular project will assist you in matching the perfect tool to your customer's needs. You'll earn trust and a sense of loyalty among your customers. It will also give you the confidence that you're offering an entire solution.
In addition, understanding the trends in DIY culture can help you better comprehend what your customers want. For instance, a growing number of homeowners are taking on home renovation projects that require the use of power tools. This could lead to a rise in sales of power 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. 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 offer opportunities for upsells or additional sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all purchases for power tools are the result of planned replacements. Customers often require additional accessories or may require upgrading to better quality models.
Whether your customer is a seasoned DIYer or new to the hobby, they'll likely require replacing their carbon brushes for power tools drive belts, drive belts, and power cords as time goes by. These basic items will ensure that your customer gets the most out of their investment.
Technicians take into consideration three main aspects when purchasing power tools applications, how it will be operated and safety. These aspects help technicians make educated decisions about the most suitable tools to use in their repairs and maintenance work. This allows them to maximize the performance of their tool and reduce the expense of owning it.
Tip 4: Continue to Keep Up With Technology
The most modern power tools, for example are equipped with smart technology that enhances user experience and sets them aside from competitors who still depend on older battery technology. B2B wholesalers who stock and sell these tools can boost sales by targeting tech savvy contractors and professionals.
For Karch, whose business has more than three decades of experience and a 2,000-square-foot department for tools, staying up with the latest technologies is crucial. He states that manufacturers are constantly changing their product designs. "They used hold their designs for 5 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. By incorporating lightweight materials as well as adjustable handles, wholesalers can lessen fatigue from prolonged use. These features are essential for many professional contractors who use the tools for a lengthy period of time. The market for power tools is divided into consumer and professional groups and this means that the biggest players are constantly improving their designs and introducing new features to appeal to an even larger audience.
Tip 5: Make a Point of Sales
The online marketplace has transformed the market for power tools. Modern methods for data collection have enabled business professionals to get an overall overview of market trends and help them develop strategies for inventory and marketing more efficiently.
Point of sale (POS) information, for instance, allows you to keep track of the types of projects DIYers undertake when purchasing power tools and accessories. Knowing the type of projects your customers are undertaking enables you to offer additional sales and opportunities to upsell. It also helps you anticipate the requirements of your clients, ensuring that you have the correct products in stock.
You can also utilize transaction data to spot market trends, and adjust production cycles accordingly. For instance, you can, use this data to monitor fluctuations of your retail partners' and your brand's market shares. This allows you to align your product strategies to consumer preferences. In the same way, you can utilize POS data to optimize inventory levels and reduce the chance of overstocking. It also helps to evaluate the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
Power tools are a tangled, high-profit market that requires a substantial amount of sales and marketing effort to stay competitive. The classic ways to gain an advantage in this market were by positioning or pricing products. However, these methods are no longer effective in today's omnichannel marketplace where information is shared in such a rapid manner.
Retailers who are committed to providing a high level of providing a high-quality service are more likely to keep customers coming back 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. His department initially featured various brands. However when he spoke to contractors, he discovered that they were loyal to their favorite brand.
Karch and his team ask their customers what they would like to do with the tool before showing them the possibilities. 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 to blame their vendor for a tool failure during the course of work.
Tip 7: Create an effort to be a Point of Customer Service
The market for power tools has become a highly competitive market for hardware retailers. Those who have seen success in this category tend to make a strong commitment to a brand rather than simply carrying a selection of manufacturers. The amount of space that a retailer needs to devote to this category can also play a role in the amount of brands it is able to carry.
When customers go in to purchase a power tool and require assistance, they usually need help selecting the right product. Sales associates can offer professional advice to customers who are looking to replace a broken tool or undertaking a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are trained to ask questions that could lead to an offer. He says they begin by asking the customer what they intend to use the product. "That's how you decide what kind of tool they need," he says. The next step is to inquire about the project and what level of experience the client has with various types of projects.
Tip 8: Make a Point of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some manufacturers offer a comprehensive warranty, whereas others offer a limited warranty or do not cover certain tools. Before purchasing a tool, it is crucial that the retailer understands the differences. Customers will only buy tools from companies who provide a warranty.
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 as well as repair shop on site that repairs 50 different brands of tools. He has discovered that a lot of his contractor clients are loyal to a particular brand. Therefore, he prefers to carry only a few brands rather than carry samples of different products.
power tools sale appreciates that his employees have the opportunity to meet with vendors one-on-one to discuss new products and give feedback. This kind of interaction is essential because it helps to build trust between the store and the customers. Having good relationships with suppliers may lead to discounts on future purchases.