Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both consumers and professionals. The demand for power tools remains at or close to pre-pandemic levels despite a slowdown due to the COVID-19 epidemic in 2021.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's isn't far behind. However, both are facing stiff competition from China-manufactured power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products prioritize sales over marketing. This is because the long-term selling process requires a lot back-and-forth communication and detailed knowledge of the product. This type of communication is not suitable for emotional marketing strategies.
However, companies that make industrial tools need to rethink their marketing strategy. The digital age has raced past traditional companies that rely on a small circle of retailers and distributors to sell their products.
A key to selling power tools is brand commitment. When a buyer is adamant about a particular brand they are less receptive to competitor's messages. They are also more likely to buy the product of the customer again and to recommend them to friends and family.
It is essential to have a well-planned strategy to be successful in the US market. This involves adapting your tools to local needs and positioning brands in a competitive manner, and making use of distribution and marketing platforms channels. Collaboration with local authorities, associations and experts is also essential. You can be sure that your power tool will be in compliance with the requirements and standards of the country when you do this.
Tip 2: Be aware of Your Products
In a world where product quality is important, retailers must be aware of the products they offer. This will allow them to make informed choices about what they offer their customers. This knowledge could make the difference between a successful or a bad purchase.
For example, knowing that a tool is best suited to specific projects will help you match your customer with the right tool to meet their needs. You will build trust and a sense of loyalty among your customers. It will also give you assurance that you're offering the complete solution.
Understanding DIY cultural trends can help you better understand your customers' requirements. For instance, a rising number of homeowners are taking on home improvement projects which require power tools. This can lead a spike in the sale of power tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have seen their share decrease year-over-year. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair an old one or tackle a new project. Both offer opportunities for upsells and 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 need to upgrade to higher quality models.
No matter if your customer is an experienced DIYer or new to the hobby, they'll likely require replacing their power tools' carbon brushes drive belts, drive belts, and power cords over time. Being on top of these important items will allow your customer to make the most of their investment.
When purchasing power tools, technicians look at three factors: the application the power source, and safety. These aspects help technicians make educated decisions about the most suitable tools to use in their maintenance and repairs. This will help them improve the performance of their tools and reduce the cost of ownership.
Tip 4: Keep up-to-date with the latest technologies.
For example, the latest power tools feature smart technology that improves the user experience and sets them apart from competitors that still depend on old-fashioned battery technology. Wholesalers in B2B who offer and sell these tools can boost sales by targeting tech-forward contractors and professionals.
Karch's business, with over 30 years of experience, and a 12,000 square feet tooling department is a testimony to the importance of keeping up-to-date with the latest technology. He says that manufacturers are constantly changing their designs for their products. "They used hold their designs for five or ten years, but now they are changing them every year."
B2B wholesalers should not just adopt the latest technology, but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are essential to many professional contractors who use the tools for a lengthy period of time. The market for power tools is split into professional and consumer groups. This means that the major players are always working to improve their designs and develop new features to appeal to a wider market.
Tip 5: Create a Point of Sales
The e-commerce market has changed the market for power tools. Advancements in data collection methods allow business professionals to gain a holistic view of market trends and help them develop inventory and marketing strategies more effectively.
Using data from the point of sale (POS), you can track DIY projects your customers complete when purchasing power tools and accessories. Knowing power tools shops near me of projects your customers are working on enables you to offer add-on sales and upsell opportunities. It helps you anticipate your customers' needs to ensure that you have the right products on hand.
Moreover, transaction data enables you to detect trends in the market and adjust production cycles in line with. For instance, you can use this data to monitor changes in your brand's and retail partner market shares, enabling you to adapt your product strategies to consumer preferences. In the same way, you can utilize POS data to improve inventory levels and reduce the risk of stocking up. It can also be used to determine the effectiveness of promotions.
Tip 6: Make a Point of Service
Power tools are a complicated, high-profit market that requires a substantial amount marketing and sales efforts to stay competitive. The classic ways to gain an advantage in this market were through pricing or product positioning--but these methods are no longer effective in today's omnichannel marketplace where information is shared in such a rapid manner.
Retailers who concentrate on 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. The department was initially home to several brands. However when he talked to contractors, he realized that they were loyal to their favorite brand.
Karch and his staff ask their customers what they intend to do with a tool before showing them the options. This gives them the confidence to recommend the most effective tool for the job and builds trust with the customer. Customers who know their product well are less likely to blame their retailer for a tool malfunction on the job.
Tip 7: Create a point of customer service
Power tool retailers face an extremely competitive market. People who have had success in this area tend to make a firm commitment to a particular brand instead of simply carrying a sampling of manufacturers. power tools shop near me of space that retailers can dedicate to a category may also affect the number of brands they are able to carry.
Customers usually require assistance when they go in to buy a power tool. Whether they are replacing an old one that's broken or taking on an upgrade project, customers need expert guidance from sales associates.
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 will result in an offer. They begin by asking what the customer plans to do with the tool, he says. "That's how you determine what kind of tool you need," he says. Then, they inquire about the experience of the customer with various types of projects and the project.
Tip 8: Make a Point of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some companies offer a complete warranty, while others offer more limited warranties or do not cover certain tools. It's crucial for retailers to understand the distinctions before buying, since customers will purchase tools from companies that back them up.
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 lines of tools. He has discovered that a lot of his clients are loyal to a particular brand. So, he chooses to carry a select few brands instead of trying to carry samples of different products.
He also likes the fact that his employees can have one-on-one meetings with vendors to discuss new products and share feedback. This type of personal interaction is essential because it helps build trust between the store's customers and employees. Good relationships with suppliers can even lead to discounts for future purchases.