Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. The demand for power tools is at or close to pre-pandemic levels despite a slowdown due to the COVID-19 outbreak in 2021.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's is not far behind. Both are however being pushed by China-made power tools.
Tip 1: Commit to a brand
Many industrial product manufacturers place a higher priority on sales and marketing. This is because a long-term sale requires a lot of back and forth communication and in-depth knowledge of the product. This kind of communication doesn't allow for emotional consumer marketing tactics.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital age has raced over traditional manufacturers who depend on a few retailers and distributors for sales.
The key to power tool sales is brand loyalty. When a buyer is committed to a certain brand, they are less sensitive to competitors' communications. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to others.
It is essential to have a well-planned strategy to have an impact on the American market. This includes adapting your tools to meet the local requirements, positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also essential to cooperate with local authorities and industry associations as well as experts. In this way you can ensure that your power tools will conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they sell particularly in a market which places a great importance on the quality of products. This will help them make informed choices about the products they offer. This information can be the difference between making a good or bad sale.
Knowing which tool is ideal for a particular project will aid in matching the right tool to the needs of your customer. This will allow you to build trust and loyalty with your customers. It will also give you confidence that you're providing the complete solution.
Understanding DIY culture trends can help you better understand your customers' requirements. For example, a growing number of homeowners are undertaking home renovation projects that require power tools. This could lead to a spike in the sale of these tools.
According to DurableIQ, DeWalt is the leader in power tool sale s with 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most common reason that a buyer makes a purchase is to replace a tool that has been damaged or failed or to embark on an entirely new project. Both provide opportunities for upsells or add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of power tool purchases were the result of an anticipated replacement. Customers may require additional accessories, or upgrade to a more powerful model.
If your customer is experienced in DIY or is just beginning the hobby they will need to replace their carbon brushes, drive cords, and power cords of their 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 buying power tools applications, how it will be powered and safety. These aspects help technicians make educated decisions about the most suitable tools to use in their maintenance and repairs. This allows them to maximize the efficiency of their tools and lower the cost of owning it.
Tip 4: Always Keep Up with Technology
For example, the latest power tools feature advanced technology that enhances the user experience and sets them apart from other tools that depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by focusing on professionals and contractors who are tech-savvy.
For Karch, whose business has more than three decades of experience and a 12,000-square-foot tool department, keeping up with the latest technology is vital. He says that manufacturers are constantly changing their product designs. "They were able to hold their designs for 5 or 10 years but now they alter them each year."
In addition to embracing latest technologies, B2B wholesalers should also focus on improving existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can lessen fatigue caused by prolonged use. These features are crucial for many contractors working in the field who utilize the tools for a lengthy period of time. The market for power tools is divided between consumer and professional groups. This means that the biggest players are constantly striving to improve their designs and develop new features in order to reach a wider public.
Tip 5: Create a Point of Sales
The online marketplace has transformed the power tools market. Advancements in data collection methods have allowed professionals in the field to get a holistic view 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 other accessories. Knowing the types of projects that your customers are working on allows you to offer add-on sales and upsell opportunities. It also allows you to anticipate the requirements of your clients making sure you have the appropriate products on hand.
Additionally, transaction data can help you to detect trends in the market and adjust production cycles in line with. You can, for example make use of this information to monitor changes in your brand's and retail partners market share. This allows you to align product strategies to the preferences of consumers. POS data can also be used to optimize inventory levels, reducing the risk of overstocking. It can also assist you to assess the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
Power tools is a profitable, complex market that requires significant sales and marketing efforts to stay competitive. The traditional methods to gain an advantage in this market were by establishing pricing or positioning of products, but these methods are no longer effective in today's multichannel marketplace where information is distributed in such a rapid manner.
Retailers who are committed to providing a high level of providing a high-quality service are more likely to retain customers and develop 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 listening to contractor customers, he learned that most were loyal to a particular brand.
To make a mark in their customers, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them the tools they have available. This gives them the confidence to recommend the best tool for a job, and it builds trust with customers. Customers who know their product are less likely to blame their supplier for a malfunctioning tool on the job.
Tip 7: Become a guru in customer service
The market for power tools has become a highly competitive market for retailers of hardware. The retailers that have had success in this category tend to make a firm commitment to a brand rather than merely carrying a sampling of manufacturers. The amount of space that a retailer can devote to a category may also affect the number of brands they can carry.
When customers go in to purchase an electric tool they may need assistance selecting a product. Sales associates can offer the best guidance to customers seeking to replace a damaged tool or undertaking the renovation of their home.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are trained to ask the right questions to make an offer. They begin by asking the customer about what they plan to use the product. "That's the best way to determine the type of tool they need," he says. The next step is to inquire about the project and the level of experience they have with different types of projects.
Tip 8: Make sure to mention your warranty
The makers of power tools vary widely in their warranty policies. Certain manufacturers offer a full warranty, while others offer more limited warranties or refuse to cover certain tools. Before making a purchase it is crucial that the retailer understands the differences. Customers will only buy tools from companies that will guarantee their products.
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 and a repair shop on site that repairs 50 different lines of tools. He has discovered over the years that many of his customers who are contractors are loyal to a particular brand, so he focuses on a limited number of brands rather than attempting to carry a sampling of different products.
He also appreciates that his employees are able to meet with vendors one-on-one to discuss new products and exchange feedback. This kind of interaction is vital because it helps build trust between the store's customers and employees. Good relationships with suppliers may even result in discounts for future purchases.