Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumers and professionals. The demand for power tools is at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic that will hit in 2021.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is not far behind. However, both are being pushed by China-made power tools.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products put a higher priority on sales over marketing. This is because a long-term purchase requires a lot of back-and-forth communication and a thorough understanding of the product. This type of communication does not permit emotional marketing techniques.
However, companies that manufacture industrial tools need to rethink their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small circle of retailers and distributors for sales.
Brand loyalty is a major factor in power tool sales. If a client is committed to a brand, they will be less prone to the messages of competitors. Moreover, they are more likely to purchase the client's product time and time again and recommend it others.
To make a successful impact in the United States market, you must have a well-planned strategy. This means adapting your tools to local needs and positioning brands in a way that is competitive, and making use of distribution and marketing platforms channels. It is also important to cooperate with local authorities and industry associations as well as experts. You can be certain that your power tool will meet the standards and regulations of the country when you follow these guidelines.
Tip 2: Know Your Products
In a world where product quality is crucial, retailers should be aware of the products they offer. This will allow them to make informed decisions about what they sell. This information can make the difference between a successful sale and a bad one.
Knowing which tool is ideal for a project will assist you in matching the perfect tool to the requirements of your customer. You'll build trust and loyalty among your customers. It will also give you the confidence 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 increasing numbers of homeowners are completing home renovation projects requiring the use of power tools. This could lead to a rise in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, while Ryobi and Craftsman brands have seen their share decline year-over-year. However the fact that sales on both stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair an old one or tackle an upcoming project. Both offer opportunities for upsells or additional 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. These customers typically require additional accessories, or require an upgrade to better quality models.
Your customer may have experience in DIY or is just beginning the hobby, they will have to replace carbon brushes, drive cords, and power cords of their power tools as time passes. These items will ensure your client gets the most from their investment.
When buying power tools, technicians take into consideration three aspects: the tool's application, the power source and security. These aspects allow technicians to make informed decisions when choosing the right tools for maintenance and repair tasks. This enables them to maximize the efficiency of their tools and lower the cost of owning it.
Tip 4: Keep up to date with technology
For example, the latest battery tools have intelligent technology that enhances the user experience and sets them apart from competitors that still depend on old-fashioned battery technology. Wholesalers of B2B that carry and sell these devices can boost sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three years of experience and a 2,000-square-foot tool department, keeping up with the latest technology is vital. 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."
B2B wholesalers should not just embrace the latest technologies but also improve existing models. By adding lightweight materials and adjustable handles, wholesalers can reduce fatigue caused by long-term use. These features are important for a large number of professionals who have to make use of the tools for long periods. The market for power tools is divided into consumer and professional groups which means that the major players are always working on enhancing their designs and creating new features to reach a wider audience.
Tip 5: Create a point of Sale
The e-commerce market has changed the market for power tools. Data collection methods have improved allowing business professionals to get a better understanding of the market. This allows them to develop more efficient inventory and marketing strategies.
By utilizing data from the point of sale (POS) You can track DIY projects that customers complete when purchasing power tools and other accessories. Knowing the types of projects your customers are working on allows you to offer additional sales and upsell opportunities. It also allows you to anticipate the needs of your customers, ensuring that you have the appropriate products on hand.
Moreover, transaction data enables you to detect trends in the market and adjust your production cycles accordingly. For instance, you can make use of this information to track changes in your brand's and market share of retail partners and help you align your product strategies with consumer preferences. Additionally, you can make use of POS data to optimize inventory levels and reduce the risk of stocking up. It can also help you to evaluate the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a high-profit, complex market that requires substantial marketing and sales efforts in order to stay competitive. In the past, getting an advantage in this market was accomplished by establishing prices or positioning of products. However, these strategies are not effective in today's world of omnichannels where information is readily communicated.
Retailers who are committed to providing a high level of service are better able to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin has a 12,000 square-foot power tool department. In the beginning, his store featured a sampling of brands, but when he listened to the customers of contractors, he discovered that the majority were brand loyal.
To win their business, Karch and his team first ask customers what they want to do with the tool before showing them the tools they have available. This gives them the confidence to recommend the appropriate tool for the job and increases trust with their customers. Customers who are familiar with their product well are less likely to blame their vendor for a tool malfunction during the course of work.
Tip 7: Make a Point of Customer Service
The power tool market has become a highly competitive category for retailers of hardware. Those who are successful in this category tends to be more loyal to a single brand rather than to carry a variety of manufacturers. The amount of space retailers can dedicate to a particular category can influence how many brands they can carry.
Customers usually require assistance when they come in to purchase a power device. Sales associates can offer the best advice to customers looking to replace a broken tool or undertaking a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is trained to ask the right questions to help make a sale. They begin by asking what the buyer is planning to use the tool, he adds. "That's the most important factor to consider when deciding what kind of tool to offer them," he adds. Then, they inquire about the project and what level of experience they have with different kinds of projects.
Tip 8: Be sure to make mention of your warranty
The warranty policies of the power tool makers are very different. Going At this website are fully comprehensive, while some aren't as generous or refuse to cover certain aspects of the tool at all. Before buying a product, it is crucial that the retailer understands the distinctions. Customers will only buy tools from companies that will guarantee their products.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000-square-foot power tool department and an in-house repair shop that handles 50 models of tools. He has learned that many of his contractor clients are brand loyal. Therefore, he prefers to carry a limited number of brands rather than carry a variety of products.
He is also happy that his employees have the ability to meet with vendors in person to discuss new products and exchange feedback. This kind of interaction is vital since it builds trust between the store's customers and employees. Good relationships with suppliers can even lead to discounts for future purchases.