Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and consumer use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic demand remains near or at pre-pandemic levels.
Home Depot is the leader in power tool sales based on dollar share. Lowe's is not far behind. Both are however facing stiff competition from China-manufactured power tools.
Tip 1: Make a Brand Commitment
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term purchase requires a lot back-and forth communication and a thorough understanding of the product. This kind of communication doesn't lend itself to emotional consumer marketing tactics.
Nevertheless, industrial tools manufacturing companies must rethink their approach to marketing. The digital world has raced past traditional companies that rely on a few retailers and distributors for sales.
Brand commitment is an important element in the sale of power tools. If a customer is loyal to a particular brand, they will be less sensitive to communications from competitors. They are also more likely to buy the product of the customer again and to recommend them to friends and family.
To be successful on the United States market, you need to have a well-planned strategy. This involves adapting tools to local requirements, positioning brands in a manner that is competitive and leveraging marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also essential. You can be certain that your power tool will meet the standards and regulations of the country if you do this.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they offer especially in a marketplace that places such a high importance on the quality of products. This will allow them to make informed decisions about what they offer. This knowledge could also be the difference between a successful sale and a bad one.
For instance knowing that a particular tool is best suited to a particular project will allow you to connect your client with the appropriate tool for their needs. This will allow you to build trust and loyalty with your customers. This will give you confidence that you provide a complete service.
Additionally, understanding the trends in DIY culture will help you comprehend what your customers want. 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 decrease year-over-year. However the fact that sales on both stores and online are growing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair an old one or tackle the new project. Both present opportunities for upsells 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 for power tools were the result of a planned replacement. These customers may 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 need to replace their carbon brushes, drive cords and power cords of their power tools as time passes. These items will ensure your customer reaps the maximum benefit out of 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 educated decisions about the most suitable tools to use for their repairs and maintenance tasks. This allows them to maximize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Continue to Keep Up With Technology
The latest power tools, for example, offer smart technology which enhances the user experience and differentiates them from those who rely upon old battery technology. B2B wholesalers that stock and sell these devices can increase sales by focusing on professional and tech-savvy contractors.
Karch's company, which has more than 30 years of experience, and a 12,000 square feet tooling department is a testament to the importance of staying current with the latest technologies. "Manufactures are constantly adjusting the design of their products," he says. "They used to keep 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 focus on improving existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the fatigue caused by prolonged use. These features are essential to many professional contractors who use the tools for a long period of time. The industry of power tools is divided into consumer and professional groups, which means that major players are constantly improving their designs and introducing new features that will appeal to more people.
Tip 5: Create a point of Sale
The ecommerce landscape has changed the market for power tools. Data collection techniques have improved, allowing business professionals to gain a better understanding the market. This helps them develop more effective marketing and inventory strategies.
Using data from the point of sale (POS) You can track DIY projects your customers are completing when purchasing power tools and accessories. Knowing the kinds of projects that your customers are working on enables you to offer add-on sales and opportunities for upselling. It helps you anticipate your customers' needs, so that you always have the right products in your shelves.
You can also use transaction data to spot market trends, and adjust production cycles in line with these trends. For instance, you can use this data to monitor changes in your brand's and market share of retail partners, enabling you to adapt your product strategies to consumer preferences. POS data can also be used to improve inventory levels, which reduces the chance of overstocking. It is also used to evaluate the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a high-profit, complex market that requires substantial sales and marketing efforts to remain competitive. In the past an advantage in this market was achieved through pricing or positioning products. However, these strategies are no longer effective in today's omnichannel environment where information is easily shared.
Retailers who make a point of providing a high-quality service are more likely to keep customers coming back 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. At first, the department offered various brands, but when he listened to customers who were contractors and found that the majority were loyal to a particular brand.
Karch and his team ask their customers what they intend to do with a tool before showing them the alternatives. This gives them the confidence to recommend the best tool for the job, and it builds trust with customers. Customers who know their product well are less likely to blame their supplier for a malfunctioning tool on the job.
Tip 7: Become a guru in customer service
The market for power tools has become a highly competitive market for retailers of hardware. The retailers that have had success in this area tend to make a firm commitment to a particular brand instead of simply carrying a few manufacturers. The amount of space that retailers can dedicate to a particular category can influence how many brands they are able to carry.
When customers go in to purchase power tools and require assistance, they usually need help selecting a product. Sales associates can offer professional guidance to customers seeking to replace a damaged tool or are planning the renovation of their home.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is educated to ask questions that can result in a sale. They begin by asking questions about what the customer is planning to use the tool, he adds. "That's the way to determine what kind of tool you need," he says. Then, they inquire about the experience of the customer with different types projects and the project.
Tip 8: Be sure to mention your warranty
The warranty policies of the power tool makers differ greatly. best power tools Powertools Online offer a comprehensive warranty, whereas others offer a limited warranty or do not cover certain tools. Before buying a product, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies who provide a warranty.
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 contractor customers are loyal to a particular brand, so he prefers to focus on only a few brands rather than trying to offer a wide range of products.
He is also pleased that his employees are able to meet with vendors one-on-1 to discuss new products and share feedback. This kind of interaction is essential because it helps create trust between the store and its customers. Good relationships with suppliers may even result in discounts for future purchases.