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 close to or at pre-pandemic levels.
In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is second in line. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Make an Engagement to Brands
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term sales requires a lot back-and forth communication and in-depth knowledge of the product. This type of communication is not suitable for emotional marketing strategies.
But, companies that produce industrial tools need to rethink their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a small group of distributors and retail outlets to sell their products.
Brand loyalty is a major factor in power tool sales. If a client is loyal to a particular brand and is loyal to a brand, they are less sensitive to communications from competitors. They are also more likely to buy the client's products again and to recommend them to others.
You need a well-planned plan to be successful in the US market. This means adjusting your tools to meet local requirements and positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. It is also crucial to collaborate with local authorities, industry associations, and experts. When you do this, you can be confident that the power tools you purchase be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
Retailers must be aware of the products they sell, especially in a market that places such a high value on product quality. This will help them make informed choices about what they offer their customers. This knowledge can also make the difference between a good deal and a bad one.
Knowing that a certain tool is suitable for a specific project will help you match the right tool to the requirements of your customer. You'll build trust and loyalty among your customers. This will give you confidence that you are offering the complete service.
In addition, understanding the trends in DIY culture can help you better know what your customers are looking for. For instance, a rising number of homeowners are tackling home renovation projects that require power tools. This could lead to a rise in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, although Ryobi and Craftsman brands have seen their share drop year-over-year. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power tool purchase is to replace a tool that has been damaged or failed or to embark on an entirely new project. Both of these tools offer the possibility of upselling or adding on 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 an anticipated replacement. The customers might require additional accessories, or upgrade to a more powerful model.
Whether your customer has experience in DIY or is new to the hobby, they will need to replace carbon brushes, drive cords and power cords of their tools in time. These essentials will ensure that your customer reaps the maximum benefit out of their investment.
Technicians must consider three important aspects when buying power tools applications, how it will be powered and safety. These aspects help technicians make informed choices when it comes to selecting the right tools for their maintenance and repair work. This enables them to maximize the performance of their tool and lower the cost of owning it.
Tip 4: Always Keep Up With Technology
The most recent power tools, for example, offer smart technology which enhances user experience and differentiates them from rivals who depend on older battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by targeting professionals and contractors who are tech-savvy.
For Karch who's business has more than three decades of experience and a 2,000-square-foot department for tools, staying up with the latest technology is vital. "Manufactures are constantly changing the design of their products" he says. "They used to keep their designs for five or 10 years, but they're now changing them every year."
In addition to taking advantage of the modern technologies, B2B wholesalers should also be looking to improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. buy power tools are essential for many professional contractors who need to make use of the tools for long periods of time. The industry of power tools is divided into professional and consumer groups and this means that the biggest players are always working on improving their designs and developing new features to reach a wider audience.
Tip 5: Create 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, allowing them to shape marketing and inventory strategies more efficiently.
Utilizing information from the point of sale (POS), you can track DIY projects your customers undertake when buying power tools and accessories. Knowing what projects your customers are working on enables you to upsell and offer additional products. It allows you to anticipate your customers' needs, so that you always have the right products in your shelves.
Moreover, transaction data enables you to detect trends in the market and adjust production cycles accordingly. For example, you can make use of this information to track fluctuations in your brand and retail partner market shares, enabling you to match your product strategies to consumer preferences. Similarly, you can use POS data to improve inventory levels and reduce the risk of overstocking. It can also be used to evaluate the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools are a tangled market that is high-profit and requires a substantial amount of sales and marketing effort to stay in the game. The classic ways to gain a strategic advantage in this market have been by positioning or pricing products. However, these tactics no longer work in the omnichannel world of today in which information is dispersed so quickly.
Retailers who make a point of providing excellent service are more likely to retain customers and develop 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 favorite brand.
Karch and his staff members ask their customers what they would like to do with the tool before showing them the alternatives. This gives them the confidence to recommend the right tool for the job and builds trust with the customer. Customers who know their product are less likely to blame their retailer for a tool malfunction on the job.
Tip 7: Become a guru in customer service
The power tool market has become a very competitive area for retailers of hardware. Those who are successful in this market tend to be more loyal to a single brand rather than to carry a variety of brands. The amount of space retailers can dedicate to a particular category can influence how many brands they can carry.
Customers often need assistance when they go in to purchase a power tool. If they're replacing an old model that is broken or tackling an upgrade project Customers need advice from sales representatives.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are trained to ask the right questions in order to make an offer. They begin by asking questions about what the customer is planning to use the tool for according to him. "That's the primary factor in deciding the type of tool to sell them," he adds. The next step is to inquire about the project and what kind of experience the customer has with various types of projects.
Tip 8: Make sure to mention your warranty
The warranty policies of the manufacturers of power tools differ greatly. Some are completely comprehensive, while others aren't as generous or refuse to cover certain parts of the equipment. Before making a purchase 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 tools department as well as an repair shop in-house that handles 50 kinds of tools. He has learned through the years that a majority of his contractors are brand loyal, so he focuses on the most popular brands rather than attempting to offer a variety of products.
He is also pleased that his employees are able to meet with vendors one-on-1 to discuss new products and give feedback. This kind of interaction is vital because it helps build trust between the customers and employees. Good relationships with suppliers can even result in discounts on future purchases.