Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both consumers and professionals. The demand for power tools is at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic in 2021.
Home Depot is the leader in power tool sales by dollar share. Lowe's is second in line. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Be committed to a brand
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term sale requires a lot of back and forth communication and a thorough understanding of the product. This kind of communication doesn't allow for emotional consumer marketing strategies.
However, industrial tool manufacturing companies must rethink their approach to marketing. The digital age has outpaced traditional companies that rely on a few distributors and retail outlets to sell their products.
A key to selling power tools is brand commitment. If a client is committed to a certain brand, they are less sensitive to competitors' communications. Additionally they are more likely to buy the client's product repeatedly and recommend it to others.
To have a positive impact to be successful 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 competitive manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities and associations, as well as experts is also crucial. You can be assured that your power tool will meet the standards and regulations of the country when you do this.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they offer particularly in a market which places a great value on the quality of the product. This will help them make informed decisions about what they are selling. This knowledge could make the difference between making a good or bad sale.
For instance knowing which tool is ideal for the particular task will allow you to match your client with the appropriate tool for their requirements. You'll earn trust and a sense of loyalty among your customers. It will also give you the confidence that you're providing an entire solution.
Additionally, understanding the trends in DIY culture can help you know what your customers are looking for. For instance, a rising number of homeowners are undertaking home renovation projects which require power tools. This can lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace a broken one or to tackle an upcoming project. Both offer opportunities for upsells or add-on 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 performing models.
Your customer may have experience in DIY or is just beginning the hobby, they will need to replace carbon brushes, drive cords, and the power cords on their power tools in time. Making sure they are up to date with these essentials will help your customer get the most out of their investment.
When purchasing power tools, technicians look at three factors: the application, the power source and safety. These aspects help technicians make informed choices about the best tools to use for their repairs and maintenance work. This helps them maximize the performance of their tool and lower the cost of owning it.
buy power tool : Continue to Keep Up With Technology
For example, the latest battery tools have advanced technology that enhances the user experience and differentiates them from other tools that rely on older battery technology. B2B wholesalers who stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's company, which has 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. "Manufactures are constantly changing the look of their products," he says. "They used to keep their designs for five or 10 years, but now they're changing them every year."
B2B wholesalers should not just adopt the latest technology, but also enhance their existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are essential for many professional contractors who need to use the tools for long periods of time. The power tools industry is divided into consumer and professional groups, which means that major players are always working on enhancing their designs and creating new features to appeal to a wider audience.
Tip 5: Make a Point of Sales
The landscape of e-commerce has transformed the market for power tools. The advancements in data collection techniques have enabled professionals in the field to get a holistic perspective of market trends which allows them to design strategies for inventory and marketing more efficiently.
Point of sale (POS) information, for instance, allows you to track the types of projects that DIYers are working on when purchasing power tools and accessories. Knowing what projects your customers are working on enables you to upsell and offer additional products. It also allows you to anticipate the requirements of your clients and ensure that you have the right products in stock.
Additionally, transaction data can help you to identify market trends and adjust production cycles in line with. For example, you can use this data to monitor fluctuations in your brand and market share of retail partners which allows you to match your product strategies to consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of stocking up. It also helps to evaluate the effectiveness of promotions.
Tip 6: Establish a Point of Service
Power tools are a complex, high-profit market that requires a significant amount of marketing and sales efforts to remain competitive. In the past, getting a competitive advantage in this market was achieved by establishing prices or positioning of products. However, these tactics are not effective in today's multichannel environment, where information is easily communicated.
Retailers who are committed to providing a high level 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 section. Initially, more tips here featured several brands, but when he began to listen to the customers of contractors and found that the majority were brand loyal.
To win their customers' business, Karch and his team first ask customers what they want to do using the tool, before showing them the tools they have available. This gives them the confidence to recommend the appropriate tool for a job, and it increases trust with their 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: Become a master of customer service
Power tool retailers are in a fiercely competitive market. People who have had success in this category tend to make a firm commitment to a particular brand rather than merely carrying a few manufacturers. The amount of space that retailers can dedicate to a category may also influence how many brands they can carry.
Customers usually require assistance when they come in to purchase a power device. If they're replacing an old one damaged or undertaking the task of renovating, customers need expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is educated to ask questions that can lead to a sale. They begin by asking the customer what they plan to do with the product. "That's the most important factor to consider when deciding what kind of tool to market them," he adds. Then they ask about the experience of the customer with different types projects and the project.
Tip 8: Be sure to make mention of your warranty
The makers of power tools vary widely in their warranty policies. Some are fully comprehensive, while some are stingy or even do not cover certain components of the equipment. It's important for retailers to know the differences prior to buying, since customers will purchase tools from companies that offer warranties.
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 learned through the years that a majority of his contractors are loyal to a particular brand, so the company prefers to stick to the most popular brands rather than offer a wide range of products.
He also appreciates that his employees can meet with vendors one-on-one to discuss new products and share feedback. This type of personal interaction is essential since it builds trust between the store's clients and employees. Having good relationships with suppliers could lead to discounts on future purchases.