Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, demand remains near or at levels prior to the pandemic.
Home Depot is the leader in sales of power tools based on dollar share. Lowe's isn't far behind. Both are competing against power tools made in China.
Tip 1: Make a Brand Commitment
Many industrial product manufacturers place more emphasis on sales over marketing. This is because a long-term purchase requires a lot of back and forth communication and detailed product knowledge. This type of communication is not suitable for emotional marketing strategies.
However, companies that make industrial equipment should reconsider their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small circle of retailers and distributors for sales.
Brand commitment is an important aspect in the sales of power tools. If a customer is committed to a brand and is loyal to a brand, they are less prone to messages from competitors. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to friends and family.
You require a well-planned strategy to have an impact on the American market. This means adapting tools to local requirements, positioning brands in a way that is competitive, and making use of distribution and marketing platforms channels. It is also essential to collaborate with local authorities and industry associations as well as experts. You can be assured that your power tool will be in compliance with the requirements and standards of the country when you do this.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they sell, especially in a market that places such a high value on the quality of the product. This will allow them to make informed decisions about what they offer. This knowledge can make the difference between a successful or a poor sale.
For example knowing which tool is suitable for the particular task can help you connect your customer with the right tool for their needs. You'll earn trust and a sense of loyalty among your customers. This will help you feel confident that you're providing the complete service.
Also, knowing the latest trends in DIY culture will help you know what your customers are looking for. For instance, more homeowners are undertaking home improvement projects that require the use of power tool. This could lead to a rise in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, although Ryobi and Craftsman brands have seen their share decrease year-over-year. However sales in stores and online are growing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace a broken one or to tackle a new project. Both of these tools offer the possibility of upselling or adding on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all power tool purchases are the result of planned replacements. These customers may require additional accessories or upgrade to a better-performing model.
Your customer may have experience in DIY or is new to the hobby, they will have to replace their carbon brushes, drive cords and the power cords on their power tools as time passes. Making sure they are up to date with these essentials will allow your customer to get the most value from their investment.
When buying power tools, technicians take into consideration three aspects: the tool's application the power source, and safety. These aspects allow technicians to make informed choices when selecting the right tools for maintenance and repair work. This enables them to maximize the performance of their tool and lower the cost of owning it.
cordless power tools : Stay up to date with technology
For example, the latest power tools feature intelligent technology that enhances users' experience and differentiates them from competitors that still rely on old battery technology. B2B wholesalers that carry and sell these devices can increase sales by focusing on professional and tech-savvy contractors.
Karch's business, which has more than 30 years of experience, and a 12,000 square foot tool department, is a testament to the importance of staying up-to-date with the latest technology. "Manufactures are constantly changing the look of their products," Karch says. "They used hold their designs for five or ten years, but now they change them every year."
In addition to embracing the modern technologies, B2B wholesalers should also be looking to improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the fatigue that comes from prolonged use. These features are crucial for professionals who employ the tools for a long period of time. The power tool industry is split into the consumer and professional segments. This means that major players are always working to improve their designs and create new features to reach a wider audience.
Tip 5: Create a Point of Sales
The online marketplace has changed the market for power tools. The advancements in data collection techniques have allowed business professionals to get an entire perspective of market trends, allowing them to shape strategies for inventory and marketing more effectively.
Using data from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects your customers undertake when buying power tools and other accessories. Knowing what projects your customers are working on allows you to upsell and offer extras. It helps you anticipate your customers' needs, so that you always have the right products on the market.
Additionally, transaction data can help you to detect trends in the market and adjust your production cycles accordingly. You can, for example make use of this information to track fluctuations in your retail partners' and your brand's market share. This allows you to align your strategy for product to consumer preferences. In the same way, you can utilize POS data to optimize levels of inventory and decrease the chance of overstocking. It can also be used to evaluate the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
Power tools are a tangled, high-profit market that requires a significant amount of marketing and sales effort to stay in the game. The classic ways to gain an advantage in this industry have been through pricing or product positioning--but these strategies are no longer effective in today's multichannel marketplace in which information is dispersed in such a rapid manner.
Retailers who provide a high level of service are better able to retain customers and develop brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. In the beginning, his store featured a sampling of brands, but when he began listening to the customers of contractors, he discovered that the majority were brand loyal.
To make a mark in their customers, Karch and his team first ask their customers what they want to do with the tool, then show them the tools they have available. This gives them the confidence to recommend the appropriate tool for the job, and it builds trust with customers. Customers who are familiar with their product are less likely to blame the retailer for the failure of a tool on the job.
Tip 7: Become a customer service guru
The market for power tools has become a highly competitive market for hardware retailers. Those who have seen success in this area tend to make a firm commitment to a particular brand rather than simply carrying a sampling of manufacturers. The amount of space a retailer has to devote to this category can also affect the number of brands it can carry.
When customers visit a store to purchase power tools and require assistance, they usually need help choosing a product. When they're replacing an old model that's broken or taking on an upgrade project, customers need expert advice from sales associates.
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 make a sale. They begin by asking questions about what the buyer is planning to use the tool for according to him. "That's the most important factor to consider when deciding what kind of tool to market them," he adds. The next step is to inquire about the project and the level of experience the customer has with different kinds of projects.
Tip 8: Make an End of Warranty
The warranties of the power tool makers are quite different. Some are fully complete, while others aren't as generous or do not cover certain components of the tool at all. It's crucial for retailers to be aware of the differences prior to buying, since customers 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 shop and an on-site repair shop that repairs 50 different brands of tools. He has discovered over time that a lot of his customers who are contractors are brand loyal, so he focuses on a limited number of brands rather than attempting to offer a variety of products.
He also likes the fact that his employees have the opportunity to get one-on-one time with vendors to discuss new products and share feedback. This type of personal interaction is crucial because it helps to build trust between the store and its customers. Good relationships with suppliers could lead to discounts on future purchases.