Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. Despite an expected slowdown in 2021 due to the COVID-19 pandemic demand remains close to or at pre-pandemic levels.
In terms of outlet dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is close behind. Both are however being pushed by China-made power tools.
Tip 1: Make an Engagement to Brands
Many industrial product manufacturers place a higher priority on sales over marketing. This is because the long-term sales process requires a lot back-and-forth communication and detailed knowledge of the product. This type of communication is not conducive to emotional marketing tactics.
Nevertheless, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital world has surpassed traditional manufacturing companies that rely on a small group of retailers and distributors for sales.
The key to selling power tools is brand loyalty. When a customer is loyal to a brand and is loyal to a brand, they are less sensitive to communications from competitors. Moreover, they are more likely to buy the client's product time and time again and recommend it others.
To make a successful impact in the United States market, you need to have a well-planned strategy. This means adapting your tools to meet local requirements, positioning your brand in a strategic way, and making use of marketing channels and distribution channels. It is also important to work with local authorities and industry associations as well as experts. When you do this you can ensure that the power tools you purchase conform to the laws of the country and standards.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they are selling, especially in a market that places such a high value on the quality of the product. This will enable them to make informed choices about the products they are selling. This information can be the difference between making a successful or a bad purchase.
For instance knowing which tool is suitable for the particular task can help you match your customer with the right tool to meet their requirements. You'll build trust and loyalty among your customers. It will also give you confidence that you're providing a complete solution.
Also, knowing the latest trends in DIY culture can help you better understand what your customers want. As an example, more homeowners are undertaking home renovations that require the use of power tool. This can result in an increase in 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 decrease year-over-year. Despite this, online and in-store sales are increasing.
cordless power tools : Offer Full-Service Repair
The most frequent reason why for a person to make a power purchase is to replace one that is failed or to embark on the task of a new one. Both of these tools 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 of power tools are the result of planned replacements. These customers may require additional accessories, or upgrade to a higher-performing model.
Whether your customer has experience in DIY or is just beginning the hobby, they will need to replace their carbon brushes, drive cords and the power cords on their power tools over time. Being on top of these important items will help your customer make the most of their investment.
When purchasing power tools, technicians consider three factors: the application the power source, and security. These factors aid technicians in making educated decisions about the most suitable tools to use for their repairs and maintenance work. This will help them optimize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Keep up-to-date with the latest technologies.
The latest power tools, for example they feature smart technology that enhances the user experience and differentiates them from those who depend on older battery technology. Wholesalers of B2B that stock and sell these devices can increase sales by focusing on professionals and contractors who are technologically advanced.
For Karch who's business has more than three decades of experience and a 12,000-square-foot tool department, staying current with the latest technologies is crucial. "Manufactures are constantly changing the design 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 concentrate on improving their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are essential for professionals who employ the tools over a long period of time. The market for power tools is divided into consumer and professional groups, which means that major players are always working on improving their designs and developing new features that will appeal to an even larger audience.
Tip 5: Make an Point of Sale
The e-commerce landscape has transformed the power tools market. Data collection techniques have improved and business professionals can gain a better understanding the market. This allows them to develop more effective marketing and inventory strategies.
By utilizing information from the point of sale (POS) You can track DIY projects that customers complete when purchasing power tools and other accessories. Knowing what projects your customers are working on enables you to increase sales and provide additional products. It also helps you anticipate the needs of your customers making sure you have the right products in stock.
You can also use transaction data to determine market trends, and adapt production cycles accordingly. For instance, you can utilize this information to track fluctuations in your brand's or the market share of your retail partners, enabling you to match your product strategies to consumer preferences. POS data can also be used to optimize levels of inventory, reducing the chance of overstocking. It is also used to assess the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a lucrative complex market that requires significant marketing and sales efforts in order to stay competitive. The classic ways to gain a strategic advantage in this industry have been by establishing pricing or positioning of products, but these tactics no longer work in the omnichannel world of today where information is shared rapidly.
Retailers who provide a high level of providing a high-quality service are more likely to keep customers coming back and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin is the owner of a 12,000-square-foot department for power tools. Initially, his department featured several brands, but as he began to listen to contractor customers and found that the majority were loyal to a particular brand.
Karch and his team ask their customers what they would like to accomplish using a tool before showing them the options. This gives them confidence to recommend the most effective tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame the store for the failure of a tool on the job.
Tip 7: Be a customer service guru
The market for power tools has become a highly competitive market for hardware retailers. Those who have seen success in this area tend to have a strong commitment to a brand rather than merely carrying a sampling of manufacturers. The size of the space a retailer has to dedicate to this category could be a factor in how many brands it can carry.
When customers visit a store to purchase an electric tool, they often need help selecting a product. Sales associates can offer expert advice to customers seeking to replace a damaged device or completing 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 the sale. They start by asking what the customer is planning to use the tool, he adds. "That's the primary factor in deciding the kind of tool to market them," he adds. Then, they inquire about the project and what level of experience the client has with various types of projects.
Tip 8: Create an End of Warranty
Power tool manufacturers vary greatly in their warranty policies. Certain manufacturers offer a full warranty, whereas others offer a limited warranty or do not offer warranties for certain tools. Before buying a product, it is crucial that the retailer understands the differences. Customers will only buy tools from companies that 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 a repair shop on site that repairs 50 different brands of tools. He has discovered over time that a lot of his contractor customers are brand loyal, so he prefers to focus on only a few brands rather than trying to offer a wide range of products.
He is also pleased that his employees are able to meet with vendors in person to discuss new products and give feedback. This personal contact is important as it helps create trust between the store and its customers. Good relationships with suppliers could even lead to discounts for future purchases.