Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. Despite a slowdown in 2021 due to the COVID-19 pandemic, the demand is still at or near levels prior to the pandemic.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's follows closely. Both are competing with power tools made in China.
Tip 1: Make an Engagement to Brands
Many manufacturers of industrial products put more emphasis on sales than marketing. This is because a long-term sale requires a lot of back and forth communication and detailed product knowledge. This type of communication does not allow for emotional consumer marketing strategies.
Nevertheless, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital age has outpaced traditional manufacturers who depend on a small group of retailers and distributors to sell their products.
The key to power tool sales is brand loyalty. When a buyer is adamant about a particular brand they are less receptive to the messages of competitors. Additionally they are more likely to buy the product of the client again and recommend it to others.
To make a successful impact in the United States market, you need to have an organized strategy. This means adapting tools to local requirements and positioning brands in a way that is competitive, and using marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also crucial. You can be certain that your power tool is in line with the requirements and standards of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they sell especially in a marketplace which places a great importance on the quality of products. This will enable them to make informed choices about the products they sell. This knowledge can also make the difference between a successful sale and a poor one.
Knowing which tool is perfect for a specific project will help you match the right tool to the requirements of your customer. You will build trust and loyalty with your customers. It will also give you assurance that you're offering an entire solution.
In addition, understanding the trends in DIY culture will help you comprehend what your customers want. For instance, a rising number of homeowners are tackling home renovation projects that require the use of power tools. This can result in a surge in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. Despite this sales in stores and online are increasing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace an old one or tackle an upcoming 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 purchases for power tools were the result of a planned replacement. The customers might require additional accessories, or upgrade to a more powerful model.
If your customer is an experienced DIYer or new to the hobby, they'll need to replace their carbon brushes for power tools as well as drive belts and power cords as time goes by. These essentials will ensure that your customer reaps the maximum benefit out of their investment.
When buying power tools, technicians look at three factors: the application the power source, and security. These factors allow technicians to make informed choices when selecting the appropriate tools for their maintenance and repair work. This will help them improve the efficiency of their tools as well as lower the cost of ownership.
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 differentiates them from competitors who still rely upon old battery technology. B2B wholesalers who stock and sell these devices can increase sales by focusing on professional and tech-savvy contractors.
Karch's business, with more than 30 years of experience and a 12,000 square feet tool department is a testament to the importance of keeping up-to-date with new technologies. He says that manufacturers are constantly changing their product designs. "They used to hold their designs for five or 10 years, but they're now changing them every year."
In addition to embracing most recent technologies, B2B wholesalers should also focus on improving existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the strain caused by long use. These features are crucial for a lot of professionals who have to use the tools for long periods of time. The market for power tools is split into consumer and professional groups. This means that major players are always working to improve their designs and create new features to reach a wider market.
Tip 5: Create a Point of Sale
The ecommerce landscape has changed the power tool market. power tools shops near me in data collection methods allow professionals in the field to get an overall view of market trends and help them develop inventory and marketing strategies more efficiently.
Using information from the point of sale (POS) You can track DIY projects that customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on permits you to offer upsells and additional products. It helps you anticipate your customers' needs to ensure that you have the appropriate products on your shelves.
Additionally, transaction data can help you to spot trends in the market and adjust production cycles accordingly. You could, for instance utilize this data to monitor changes in your retail partners' and brand's market share. This will allow you to align product strategies to consumer preferences. In the same way, you can utilize POS data to optimize levels of inventory and decrease the risk of overstocking. It also helps to assess the effectiveness of promotions.
Tip 6: Establish a Point of Service
Power tools is a profitable complex market that requires substantial marketing and sales efforts to stay competitive. In the past, gaining an advantage in this market was accomplished by pricing or positioning products. However, these tactics are not effective in today's world of omnichannels where information is readily communicated.
Retailers who provide a high level of service are better able to keep customers coming back and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, operates a 12,000-square-foot department for power tools. In the beginning, his store featured various brands, but when he began listening to contractor customers, he discovered that the majority were brand loyal.
To win their business, Karch and his team first ask customers what they would like to accomplish with the tool before showing them what they have available. This gives them the confidence to recommend the best tool for the job and builds trust with the customer. Customers who know their product are less likely to blame their vendor for a tool malfunction during the course of work.
Tip 7: Become a customer service guru
Power tool retailers face an extremely competitive market. power tools store near me who have seen success in this area tend to have a strong commitment to a particular brand instead of 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 visit a store to purchase an electric tool they may need assistance selecting a product. Sales associates can offer expert advice to customers who are looking to replace a damaged tool or are planning the renovation of their home.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is educated to ask the right questions to help make an offer. They start by asking what the customer plans to use the tool for, he adds. "That's how you determine the type of tool they require," he says. Then, they inquire about the project and what level of experience they have with different types of projects.
Tip 8: Create an End of Warranty
Power tool manufacturers vary greatly in their warranty policies. Some are fully comprehensive, while some aren't as generous or refuse to cover certain parts of the tools at all. Before purchasing a tool, it's important that retailers know the differences. Customers will only purchase tools from companies that back them up.
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 an on-site repair shop that repairs 50 different brands of tools. He has realized through the years that a majority of his contractor customers are loyal to their brands, which is why the company prefers to stick to a limited number of brands rather than attempting to offer a variety of products.
He also likes that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and give feedback. This personal contact is important because it helps to establish trust between the store and its customers. Good relationships with suppliers could even result in discounts on future purchases.