Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and consumers. The demand for power tools is at or near pre-pandemic levels despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely. Both are competing with power tools made in China.
Tip 1: Create a Brand Commitment
Many manufacturers of industrial products prioritize sales over marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication and a thorough understanding of the product. This kind of communication does not allow for emotional consumer marketing strategies.
However, industrial tool manufacturing companies should think about rethinking their marketing strategy. The digital world has raced over traditional manufacturers who depend on a small circle of retailers and distributors to sell their products.
Brand loyalty is a major factor in power tool sales. If a client is committed to a specific brand, they are less sensitive to competitor's messages. Moreover, they are more likely to purchase the product of the client time and time again and recommend it others.
You need a well-planned plan to make an impact on the US market. This means adapting your tools to meet local requirements, positioning your brand in a strategic manner, and leveraging distribution channels and marketing platforms. It is also important to work with local authorities as well as industry associations and experts. You can be assured that your power tool will meet the requirements and standards of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they sell especially in a marketplace which places a great importance on the quality of products. This will help them make informed decisions about the products they can offer their customers. This information can be the difference between making a good or bad sale.
Knowing which tool is perfect for a particular project will aid in matching the right tool to the requirements of your customer. This will help you build trust and loyalty with your customers. It will also give you the confidence that you're providing a complete solution.
Additionally, understanding the trends in DIY culture will help you comprehend what your customers want. For instance, a growing number of homeowners are undertaking home improvement projects that require power tools. This can result in a surge in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this the fact that sales on both stores and online are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair an old one or tackle a new project. Both of these tools offer opportunities for upsells or add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all purchases of power tools are the result of planned replacements. These customers may require additional accessories, or upgrade to a higher-performing model.
No matter if your customer is an experienced DIYer or just starting out in the hobby, they'll require replacement of their carbon brushes for power tools, drive belts and power cords with time. These essentials will ensure that your customer reaps the maximum benefit from their investment.
When buying power tools, technicians look at three aspects: the tool's application the power source, and security. These factors help technicians make informed decisions about the best place to buy tools online tools to use for their maintenance and repairs. This will help them optimize the performance of their tools and reduce the cost of ownership.
Tip 4: Continue to Keep Up With Technology
For example, the latest power tools offer smart technology that improves the user experience and differentiates them from other tools that rely on old battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by focusing on professional and tech-savvy contractors.
For Karch, whose business has more than three decades of experience and a 12,000-square-foot tool department, staying current with new technologies is essential. He says that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or ten years, but now they alter them each year."
B2B wholesalers need to not only adopt the latest technology, but also improve existing models. By adding lightweight materials and adjustable handles, wholesalers can reduce fatigue due to long-term use. These features are important for a large number of professionals who must use the tools for long periods. The power tools industry is divided into consumer and professional groups and this means that the biggest players are always working on improving their designs and developing new features that will appeal to more people.
Tip 5: Make a Point of Sales
The online marketplace has transformed the power tools market. The advancements in data collection techniques have allowed business professionals to get a holistic perspective of market trends, allowing them to shape marketing and inventory strategies more effectively.
Utilizing information from the point of sale (POS), you can track DIY projects your customers undertake when buying power tools and other accessories. Knowing the types of projects your customers are working on enables you to provide additional sales and upsell opportunities. It allows you to anticipate your customers' needs to ensure that you have the right products on the market.
Moreover, transaction data enables you to spot trends in the market and adjust your production cycles accordingly. For instance, you can utilize this data to monitor changes in your retail partners' and brand's market share. This will allow you to align your product strategies to consumer preferences. POS data can also be used to optimize inventory levels, which reduces the chance of overstocking. It is also used to evaluate the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools are a tangled, high-profit market that requires a substantial amount of marketing and sales effort to remain competitive. The traditional methods to gain a strategic advantage in this field have been by establishing pricing or positioning of products, but these tactics no longer work in the omnichannel world of today where information is shared so quickly.
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. At first, the department offered a sampling of brands, but as he began listening to customers who were contractors and found that the majority were brand loyal.
Karch and his team ask their customers what they would like to accomplish using a tool prior to showing them the options. This gives them the confidence to recommend the right tool for the job and also builds trust with customers. Customers who are familiar with their product are less likely to blame the store for a malfunction of a tool for the job.
Tip 7: Be a master of customer service
The market for power tools has become a very competitive area for retailers of hardware. The retailers that have had the most success in this market tend to make a strong commitment to a particular brand rather than merely carrying a sampling of manufacturers. The amount of space a retailer can devote to a specific category could determine the number of brands they carry.
When customers come in to purchase an electric tool, they often need help choosing a product. Whether they are replacing an old tool that's broken or taking on an upgrade project clients require expert guidance from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is educated to ask questions that will result in a sale. He says they start by asking the buyer what they plan to do with the item. "That's the key to determining the type of tool to offer them," he adds. Then, they inquire about the project and what level of experience they have with different types of projects.
Tip 8: Make sure to be sure to mention your warranty
The warranty policies of the manufacturers of power tools are very different. Some are completely comprehensive, while some aren't as generous or refuse to cover certain parts of the tools at all. Before making a purchase it's important that retailers know the distinctions. Customers will only purchase tools from companies that will guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square foot power tool department and an on-site repair shop that repairs 50 different lines of tools. He has realized over the years that many of his contractor customers are loyal to their brands, which is why he focuses on the most popular brands rather than offer a variety of products.
He also appreciates that his employees get one-on-one time with vendors to discuss new products and give feedback. This personal contact is important as it helps build trust between the store and the customers. Building strong relationships with suppliers can even lead to discounts on future purchases.