Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. Despite a 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 in power tool sales. Lowe's follows closely. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products prioritize sales over marketing. This is because a long-term sales requires a lot of back and forth communication and a thorough understanding of the product. This kind of communication does not permit emotional marketing tactics.
However, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital world has raced over traditional manufacturers who depend on a small circle of retailers and distributors to sell their products.
Brand commitment is an important aspect in the sales of power tools. If a client is committed to a specific brand, they are less sensitive to competitor's messages. In addition, they are more likely to purchase the client's product repeatedly and recommend it to others.
To have a positive impact on the United States market, you must develop an organized strategy. This includes adapting tools to local requirements, positioning brands in a manner that is competitive and making use of distribution and marketing platforms channels. Collaboration with local authorities, associations and experts is also crucial. power tool shop can be assured that your power tool will be in compliance with the standards and regulations of the country when you do this.
Tip 2: Know Your Products
In a market where product quality is crucial, retailers should be aware of the products they offer. This will help them make informed decisions about the products they offer their customers. This information can make the difference between a good sale and a bad one.
Knowing that a certain tool is ideal for a particular project will assist you in matching the perfect tool to your customer's needs. This will allow you to build trust and loyalty with your customers. It will also give you assurance that you're offering a complete solution.
Additionally, understanding the trends in DIY culture can help you better know what your customers are looking for. For instance, a rising number of homeowners are tackling home improvement projects that require power tools. This could lead to a rise in the sale of power tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this sales in stores and online are growing.
Tip 3: Offer Full-Service Repair
The most frequent reason why that a buyer makes a purchase is to either replace one that has broken down or to take on an entirely new project. Both offer opportunities for upsells and add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of purchases of power tools resulted from an anticipated replacement. The customers might require additional accessories or upgrade to a better-performing model.
Whether your customer is an experienced DIYer or is new to the hobby, they will likely require replacing their carbon brushes for power tools, drive belts and power cords over time. Keeping up with these essentials will allow your customer to get the most out of their investment.
When buying power tools, technicians consider three aspects: the tool's application, the power source and safety. These factors help technicians make informed decisions about the best tools to use in their maintenance and repairs. This allows them to maximize the performance of their tool and reduce the expense of owning it.
Tip 4: Stay current with the latest technology
The latest power tools, like, offer smart technology which improves the user's experience and sets them apart from competitors who still rely upon old battery technology. Wholesalers of B2B that stock and sell these devices can increase sales by targeting tech-forward contractors and professionals.
For Karch the company, which has more than three years of experience and a 12,000 square-foot department for tools, staying up with new technologies is essential. He says that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or ten years, but they're now changing them each year."
In addition to embracing the most recent technologies, B2B wholesalers should also be looking to improve existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the fatigue caused by prolonged use. These features are essential for many professional contractors who use the tools for a lengthy period of time. The power tools industry is divided into professional and consumer groups, which means that major players are always working on improving their designs and introducing new features to reach more people.
Tip 5: Create a Point of Sale
The ecommerce landscape has changed the market for power tools. The advancements in data collection techniques have allowed business professionals to get an entire perspective of market trends which allows them to design marketing and inventory strategies more efficiently.
Point of sale (POS) data, for instance, allows you to keep track of the types of projects DIYers undertake when they purchase tools and accessories. Knowing the type of projects that your customers are working on allows you to offer additional sales and upsell opportunities. It allows you to anticipate the needs of your customers to ensure that you have the right products on your shelves.
Additionally, transaction data can help you to detect trends in the market and adjust production cycles accordingly. For instance, you could make use of this information to track fluctuations in your brand's or retail partner market shares and help you adapt your product strategies to consumer preferences. POS data can also be utilized to optimize inventory levels, which reduces the chance of overstocking. It can also be used to determine the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a profitable, complex market that requires substantial sales and marketing efforts to stay competitive. In the past, getting an advantage in this market was accomplished by pricing or positioning products. However, these tactics are not effective in today's omnichannel environment where information is readily shared.
Retailers that focus on customer service are more likely to retain 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 several brands, but when he began to listen to contractor customers and found that the majority were brand loyal.
Karch and his staff members ask their customers what they intend to do with the tool before showing them the possibilities. This gives them confidence to recommend the most effective 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 a failure of a device on the job.
Tip 7: Create a Point of Customer Service
Power tool retailers face an extremely competitive market. People who succeed in this area tend to be more committed to a single brand rather than to carry a variety of brands. The amount of space that a retailer can devote to a particular category can determine the number of brands they carry.
Customers usually require assistance when they come in to purchase a power tool. Sales associates can provide professional advice to customers seeking to replace a damaged device or completing a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is trained to ask questions that could lead to a sale. They begin by asking questions about what the buyer is planning to use the tool according to him. "That's the way to determine the type of tool they require," he says. Then, they inquire about the customer's experience with different types of projects as well as the project.
Tip 8: Make an End of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are completely comprehensive, while others are stingy or even refuse to cover certain parts of the tool at all. Before purchasing a tool, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies who provide a warranty.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an in-house repair shop that handles 50 kinds of tools. He has discovered that a lot of his contractor clients are loyal to a particular brand. So, he chooses to carry only a few brands instead of trying to carry samples of different products.
He also likes the fact that his employees get one-on-one time with vendors to discuss new products and provide feedback. This type of personal interaction is essential because it builds trust between the customers and employees. Good relationships with suppliers may even result in discounts on future purchases.