Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and users. Despite the fact that 2021 will see a slowdown due to the COVID-19 virus, demand remains close to or at levels prior to the pandemic.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's is second in line. Both are competing with power tools manufactured in China.
Tip 1: Commit to a brand
Many manufacturers of industrial products put a higher priority on sales over marketing. This is because the long-term sales process requires a lot of back-and-forth communication and detailed knowledge of the product. This type of communication is not ideal for marketing that is based on emotion.
But, companies that produce industrial tools should rethink their marketing strategy. The digital age has raced over traditional manufacturers who depend on a few retailers and distributors to sell their products.
Brand commitment is an important factor in power tool sales. If a client is committed to a certain brand they are less receptive to the messages of competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others.
To be successful in the United States market, you must have a well-planned strategy. This involves adapting tools to local requirements and positioning your brand in a way that is competitive, and leveraging marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. When you do this you can be sure that your power tools will be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
In a market where quality of the product is so important, retailers should know the products they sell. This will allow them to make informed decisions about what they are selling. This information can be the difference between a successful or a poor sale.
Knowing that a certain tool is perfect for a project will aid in matching the right tool to the needs of your customer. This will allow you to build trust and loyalty with your customers. This will give you confidence that you're providing a complete service.
Understanding DIY cultural trends can help you understand the needs of your customers. For buy power tools online , a growing number of homeowners are taking on home renovation projects that require power tools. This can lead to an increase in the sales of these 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. However, both online and in-store purchases are on the rise.
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 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 for power tools resulted from a planned replacement. The customers might require additional accessories, or upgrade to a more powerful model.
If your customer is experienced in DIY or is new to the hobby, they will have to replace carbon brushes, drive cords and the power cords on their power tools as time passes. These items will ensure your customer reaps the maximum benefit from their investment.
When purchasing power tools, technicians consider three aspects: the tool's application, the power source and safety. These aspects help technicians make educated decisions about the most suitable tools to use in their repairs and maintenance work. This helps them optimize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Always Keep Up With Technology
For instance, the latest battery tools have advanced technology that enhances the user experience and sets them apart from other brands that still rely on old battery technology. B2B wholesalers that carry and sell these devices can boost sales by targeting professionals and contractors who are technologically advanced.
For Karch the company, which has more than three years of experience and a 12,000 square-foot department for tools, staying up with new technologies is essential. He says that manufacturers are constantly changing their product designs. "They used to keep their designs for five or ten years, but now they're changing them each year."
B2B wholesalers must not only embrace the latest technologies but also improve existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue from long-term use. These features are essential to professionals who employ the tools for a lengthy period of time. The industry of power tools is divided into consumer and professional groups, which means that major players are always working on improving their designs and developing new features to appeal to more people.
Tip 5: Create a point of Sale
The online marketplace has transformed the market for power tools. Data collection methods have improved, allowing business professionals to gain a better understanding of the market. This allows them to develop more effective inventory and marketing strategies.
Point of sale (POS) information can, for example, allow you to monitor the kinds of projects DIYers undertake when purchasing power tools and other accessories. Knowing the kinds of projects your customers are undertaking enables you to offer additional sales and opportunities to upsell. It also allows you to anticipate the needs of your customers making sure you have the correct products available.
You can also utilize transaction data to determine trends in the market, and then adjust production cycles in line with these trends. For example, you can use this data to monitor fluctuations in your brand's or 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 levels of inventory and decrease the chance of overstocking. It can also help you to assess the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a high-profit complex market that requires substantial marketing and sales efforts to remain competitive. In the past, getting an 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 readily communicated.
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. His initial department featured a variety of brands. However when he talked to contractors, he noticed that they were loyal to their favorite brand.
To make a mark in their customers' business, Karch and his team first ask their customers what they'd like to achieve with the tool, then show them what they have available. This gives them the confidence to recommend the appropriate tool for the job, and it increases trust with their customers. Customers who are familiar with their product well are less likely to blame their vendor for a tool failure on the job.
Tip 7: Create a Point of Customer Service
Power tool retailers are in an extremely competitive market. The retailers that are successful in this category tends to be more loyal to a single brand rather than to carry a variety of brands. The amount of space a retailer can devote to a particular category can influence how many brands they can carry.
When customers come in to purchase an electric tool and require assistance, they usually need help selecting the right product. If they're replacing an old tool damaged or undertaking the task of renovating clients require expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is trained to ask questions that could lead to a sale. They start by asking what the customer plans to use the tool for, he says. "That's how you determine what kind of tool they need," he says. The next step is to inquire about the project and the level of experience the client has with different kinds of projects.
Tip 8: Be sure to mention your warranty
The warranty policies of the power tool makers differ greatly. Some are completely complete, while others are stingy, or refuse to cover certain aspects of the tools at all. It's crucial for retailers to be aware of the distinctions before purchasing, as customers will purchase tools from companies that offer warranties.
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 realized through the years that a majority of his contractors are loyal to their brands, which is why he focuses on a limited number of brands rather than attempting to offer a variety of products.
He also appreciates that his employees have the ability to meet with vendors one-on-one to discuss new products and share feedback. This kind of interaction is essential as it helps create trust between the store and the customers. Having good relationships with suppliers can even result in discounts on future purchases.