Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. The demand for power tools remains at or close to pre-pandemic levels despite a slowdown due to the COVID-19 epidemic in 2021.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is not far behind. Both are competing with power tools manufactured in China.
Tip 1: Commit to a brand
Many industrial products manufacturers prioritize sales over marketing. This is because the long-term sales process requires a lot of back-and-forth communication and a thorough understanding of the product. This type of communication does not allow for emotional consumer marketing strategies.
However, industrial tool manufacturing companies must rethink their marketing strategy. The digital world has surpassed traditional companies that rely on a small group of distributors and retail outlets for sales.
Brand loyalty is a major aspect in the sales of power tools. If a client is committed to a certain brand they are less receptive to the messages of competitors. Moreover, they are more likely to buy the item of the customer repeatedly and recommend it to others.
To be successful to be successful in the United States market, you need to have a well-planned strategy. This means adjusting your tools to meet the local requirements, positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. Collaboration with local authorities, associations and experts is also essential. When you do this, you can be confident that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
Retailers should be familiar with the products they offer, especially in a market that places such a high value on the quality of the product. This will enable them to make informed choices about the products they offer their customers. This information can be the difference between a successful or a poor sale.
Knowing that a certain tool is perfect for a particular project will aid in matching the right tool to your customer's needs. This will allow you to build trust and loyalty with your customers. This will ensure that you're providing an entire service.
Understanding DIY culture trends can aid in understanding your customers' requirements. As an example the increasing number of homeowners are taking on home renovation projects requiring 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. However the fact that both in-store and online purchases are on the rise.
Power tool Products : Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to replace one that is been damaged or broken, or to embark on an entirely new project. Both of these can be used to increase sales and 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 were the result of a planned replacement. Customers often require additional accessories or may require an upgrade to better performing models.
If your customer is experienced in DIY or is just beginning the hobby, they will have to replace the carbon brushes, drive cords and the power cords on their power tools in time. These essentials will ensure that your customer gets the most from their investment.
Technicians must consider three important aspects when buying power tools applications, how it will be used and safety. These factors help technicians make educated decisions about the most suitable tools to use for their repairs and maintenance tasks. This will help them improve the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Stay up-to-date with the latest technologies.
For example, the latest power tools feature advanced technology that enhances users' experience and sets them apart from competitors that still depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's company, which has over 30 years of experience and a 12,000 square foot tooling department is a testament 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 to hold their designs for five or 10 years, but now they're changing them every year."
In addition to embracing the most recent technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are important for many professional contractors who need to utilize the tools for lengthy durations. The power tool industry is divided into the consumer and professional segments. This means that the biggest players are always working to improve their designs and come up with new features in order to reach a wider public.
Tip 5: Make an Point of Sale
The ecommerce landscape has changed the market for power tools. Advancements in data collection methods have allowed business professionals to get a holistic perspective of market trends and help them develop marketing and inventory strategies more effectively.
Point of sale (POS) information for instance, allows you to track the types of projects DIYers undertake when they purchase tools and accessories. Knowing what projects your customers are working on permits you to upsell and offer extras. It also helps you to anticipate the needs of your customers making sure you have the correct products on hand.
You can also utilize transaction data to determine trends in the market and adjust production cycles in line with these trends. You could, for instance, use this data to monitor changes in your retail partners' and brand's market shares. This allows you to align your product strategies with consumer preferences. POS data can also be used to improve inventory levels, reducing the risk of overstocking. It can also be used to determine the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools is a profitable complex market that requires substantial marketing and sales efforts to stay competitive. In the past, gaining a competitive advantage in this market was achieved by establishing prices or positioning of products. However, these strategies are not as effective in the current omnichannel environment where information is easily shared.
Retailers that focus on customer service are more likely to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, runs a 12,000 square foot power tool section. His initial department featured various brands. However when he spoke to contractors, he noticed that they were loyal to their preferred brand.
To be successful in their customers' business, Karch and his team first ask customers what they would like to accomplish with the tool before showing them the options available. This gives them the confidence to recommend the best tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame their retailer for a tool failure on the job.
Tip 7: Become a guru in customer service
The power tool market has become a highly competitive market for hardware retailers. Those who have seen success in this area tend to make a strong commitment to a particular brand instead of simply carrying a sampling of manufacturers. The amount of space retailers can dedicate to a category may also influence how many brands they carry.
When customers go in to purchase an electric tool they may need assistance choosing a product. Sales associates can offer professional advice to customers who are looking to replace a damaged device or completing 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 the sale. He says they begin by asking the customer what he or she plans to use the product. "That's the primary factor in deciding the kind of tool to market them," he adds. Then, they inquire about the project and what level of experience the customer has with different kinds of projects.
Tip 8: Make an End of Warranty
The warranty policies of the power tool makers differ greatly. Some companies offer a complete warranty, whereas others are more limited or refuse to cover certain tools. Before purchasing a tool, it is crucial that the retailer understands the differences. Customers will only buy tools from companies that guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department and repair shop on site that repairs 50 different brands of tools. He has realized over the years that many of his customers who are contractors are brand loyal, so the company prefers to stick to only a few brands rather than attempting to carry a sampling of different products.
He is also pleased that his employees have the ability to meet with vendors in person to discuss new products and give feedback. This kind of interaction is essential because it helps to establish trust between the store and the customers. Good relationships with suppliers may even result in discounts on future purchases.