Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both consumer and professional use. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains near or at pre-pandemic levels.
In terms of outlet dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's follows closely. Both are competing against power tools made in China.
Tip 1: Commit to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is due to the fact that the long-term sales process requires a lot of back-and-forth communication and a thorough understanding of the product. This kind of communication isn't suitable for emotional marketing strategies.
However, industrial tools manufacturing companies must rethink their approach to marketing. The digital age has outpaced traditional companies that rely on a select group of retailers and distributors for sales.
Brand loyalty is a major aspect in the sales of power tools. When a buyer is adamant about a particular brand and brand, they are less responsive to competitors' communications. Moreover, power tools deals are more likely to buy the product of the client time and time again and recommend it others.
To make a successful impact on the United States market, you need to have a well-planned strategy. This means adapting your tools to local needs, positioning brands in a way that is competitive, and using marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. You can be assured that your power tool is in line with the requirements and standards of the country if you do this.
Tip 2: Know Your Products
In a market where product quality is so crucial, retailers should be aware of the products they offer. This will allow them to make informed choices about the products they sell. This information can be the difference between a successful or a bad purchase.
For example knowing which tool is suitable for a particular project will help you connect your client with the appropriate tool for their requirements. This will aid in building trust and loyalty with your customers. This will give you confidence that you provide a complete service.
Understanding DIY culture trends can aid in understanding your customers' requirements. For instance increasing numbers of homeowners are completing home renovations that require the use of power tool. This could lead to an increase in sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, although Ryobi and Craftsman brands have seen their share drop year-over-year. However sales in stores and online are growing.
Tip 3: Offer Full-Service Repair
The most frequent reason why a consumer makes a power purchase is to either replace a tool that has been damaged or broken down or to take on the task of a new one. Both of these can be used to increase sales and additional 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.
Your customer may have experience in DIY or is new to the hobby, they will need to replace carbon brushes, drive cords and the power cords on their power tools in time. These items will ensure your customer reaps the maximum benefit out of their investment.
Technicians take into consideration three main aspects when buying power tools applications, how it will be operated and safety. These factors aid technicians in making informed decisions about the best tools to use for their maintenance and repairs. This helps them improve the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Continue to Keep Up With Technology
For example, the latest battery tools have intelligent technology that enhances users' experience and sets them apart from competitors that still rely on older battery technology. Wholesalers of B2B that stock and sell these devices can boost sales by targeting professionals and contractors who are technologically advanced.
For Karch, whose business has more than three years of experience and a 12,000 square-foot tool department, staying current with the latest technologies is crucial. He states that manufacturers are constantly changing their product designs. "They used to hold their designs for 5 or 10 years but now they alter them each year."
B2B wholesalers should not just adopt the latest technology, but also improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the fatigue caused by prolonged use. These features are crucial for a large number of professionals who have to use the tools for long durations. The market for power tools is divided 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 public.
Tip 5: Make a Point of Sales
The landscape of e-commerce has transformed the power tool market. Modern methods for data collection allow business professionals to gain a holistic perspective of market trends, allowing them to shape strategies for inventory and marketing more effectively.
Using information from the point of sale (POS) You can track DIY projects that customers undertake when buying power tools and accessories. Knowing what projects your customers are working on allows you to upsell and offer add-ons. It helps you anticipate the needs of your customers to ensure that you have the right products in your shelves.
You can also utilize transaction data to determine trends in the market and adapt production cycles accordingly. For instance, you can make use of this information to track fluctuations in your brand and retail partner market shares which allows you to adapt your product strategies to consumer preferences. Additionally, you can make use of POS data to optimize inventory levels and reduce the chance of overstocking. It can also be used to determine the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a lucrative complex market that requires substantial sales and marketing efforts to remain competitive. The traditional methods to gain a strategic advantage in this field were by establishing pricing or positioning of products, but these tactics no longer work in today's multichannel marketplace where information is distributed in such a rapid manner.
Retailers who provide a high level of providing excellent service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin has a 12,000 square-foot department for power tools. At first, the department offered various brands, but when he began listening to the customers of contractors, he learned that most were brand loyal.
To make a mark in their customers, Karch and his team first ask customers what they would like to accomplish with the tool, then show them the tools they have available. This gives them the confidence to recommend the right 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 retailer for the failure of a tool on the job.
Tip 7: Be a guru in customer service
The market for power tools has become a highly competitive market for retailers of hardware. Those who are successful in this area tend to be more committed to a single brand than to carry a variety of brands. The amount of space a retailer can devote to a category may also affect the number of brands they are able to carry.
Customers frequently require assistance when they visit to buy a power tool. Sales associates can provide the best advice to customers seeking to replace a damaged tool or are planning an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is trained to ask questions that can lead to a sale. They begin by asking what the buyer is planning to use the tool according to him. "That's how you decide what kind of tool they need," he says. Then, they inquire about the experience of the customer with different types of projects as well as the project.
Tip 8: Create a Point of Warranty
The warranties of the manufacturers of power tools are very different. Some are fully comprehensive, while others aren't as generous or refuse to cover certain aspects of the tools at all. It is crucial for retailers to understand these differences before buying, since buyers 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 an on-site repair shop that repairs 50 different lines of tools. He has realized through the years that a majority of his customers who are contractors are loyal to their brands, which is why he prefers to focus on only a few brands rather than offer a variety of products.
He also appreciates that his employees are able to meet with vendors in person to discuss new products and give feedback. This type of personal interaction is crucial because it helps create trust between the store and its customers. Good relationships with suppliers can even result in discounts on future purchases.