Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. Despite the fact that 2021 will see a slowdown due to the COVID-19 pandemic the demand is still at or near levels prior to the pandemic.
In terms of outlet dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Create a Brand Commitment
Many manufacturers of industrial products prioritize sales over marketing. This is because the long-term sales process involves a lot of back and forth communication as well as a detailed understanding of the product. This kind of communication does not allow for emotional consumer marketing tactics.
But, companies that produce industrial tools need to rethink their marketing strategy. The digital age has raced over traditional manufacturers who depend on a small circle of retailers and distributors for sales.
Brand commitment is an important aspect in the sales of power tools. If a client is committed to a brand they are less sensitive to communications from competitors. Moreover, they are more likely to purchase the client's product again and recommend it to others.
You require a well-planned strategy to have an impact on the US market. This means adapting your tools to meet local requirements and positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. Collaboration with local authorities, associations and experts is also essential. 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
In a world where quality of the product is so important, retailers must be aware of the products they sell. This will help them make informed choices about the products they can offer their customers. This information can make the difference between a good sale and a bad one.
Knowing which tool is ideal for a project will assist you in matching the perfect tool to the needs 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.
In addition, understanding the trends in DIY culture can help you better comprehend what your customers want. For instance, a growing number of homeowners are tackling home renovation projects that require power tools. This could lead to an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair the broken one or tackle a new project. Both offer opportunities for upsells and additional sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all purchases for power tools are the result of planned replacements. The customers might require additional accessories or upgrade to a more powerful model.
Your customer may have experience in DIY or is new to the hobby, they will have to replace the carbon brushes, drive cords, and the power cords on their power tools over time. Keeping up with these essentials will allow your customer to get the most out of their investment.
When buying power tools, technicians take into consideration three factors: the application the power source, and safety. These factors allow technicians to make informed choices when selecting the right tools for maintenance and repair work. This will help them optimize the performance of their tools and reduce the cost of ownership.
Tip 4: Keep Keeping Up with Technology
For example, the latest power tools feature intelligent technology that enhances the user experience and sets them apart from competitors that still rely on older battery technology. Wholesalers of B2B that carry and sell these devices can increase sales by focusing on professionals and contractors who are technologically advanced.
Karch's business, with over 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. He states that manufacturers are constantly changing their product designs. "They used to keep their designs for five or 10 years, but they're now changing them each year."
In addition to taking advantage of the most recent technologies, B2B wholesalers should also be looking to improve existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are important for a lot of professionals who have to make use of the tools for long durations. power tool offers of power tools is divided into professional and consumer groups, which means that major players are always working on enhancing their designs and creating new features to reach more people.
Tip 5: Make a Point of Sales
The online marketplace has changed the power tool market. Data collection methods have improved allowing business professionals to get a better understanding of the market. This allows them to develop more effective marketing and inventory strategies.
Point of sale (POS) data for instance, allows you to keep track of the types of projects DIYers tackle when purchasing power tools and accessories. Knowing what projects your customers are working on enables you to increase sales and provide extras. It helps you anticipate your customers' needs, so that you always have the right products on your shelves.
Moreover, transaction data enables you to identify market trends and adjust your production cycles accordingly. For example, you can utilize this information to track changes in your brand's and market share of retail partners and help you match your product strategies to consumer preferences. In the same way, you can utilize POS data to improve levels of inventory and decrease the risk of overstocking. It can also assist you to assess the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools are a tangled, high-profit market that requires a significant amount of marketing and sales effort to remain in the game. In the past, getting an advantage in this market was achieved by establishing prices or positioning of products. However, these tactics are not as effective in the current multichannel environment, where information is readily available to be shared.
Retailers that focus on customer service are more likely to retain customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin has a 12,000 square-foot power tool department. Initially, his department featured several brands, but when he began listening to customers who were contractors and found that the majority were brand loyal.
Karch and his staff ask their customers what they intend to do with the tool before presenting them with the possibilities. This gives them the confidence to recommend the best tool for the job and builds trust with the customer. Customers who know their product well are less likely to blame their retailer for a tool malfunction on the job.
Tip 7: Become a guru in customer service
The market for power tools has become a very competitive area for retailers of hardware. Those who are successful in this market tend to be more devoted to a single brand than to carry a variety of brands. The amount of space a retailer can devote to a particular category can affect the number of brands they can carry.
When customers come in to purchase a power tool, they often need help choosing a product. Whether they are replacing an old one that is broken or tackling an upgrade project clients require expert advice from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions to help make the sale. He says they begin by asking the customer what they intend to do with the item. "That's the key to determining the kind of tool to market them," he adds. Then they ask about the experience of the customer with different types projects and the project.
Tip 8: Be sure to be sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some companies offer a complete warranty, whereas others offer more limited warranties or refuse to cover certain tools. It is crucial for retailers to understand the distinctions before 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 an 12,000 square foot power tool department and an on-site repair shop that repairs 50 different types of tools. He has learned through the years that a majority of his customers who are contractors are loyal to their brands, which is why he prefers to focus on a limited number of brands rather than trying to offer a variety of products.
He is also happy that his employees are able to meet with vendors one-on-one to discuss new products and exchange feedback. This kind of interaction is essential because it helps establish trust between the store and its customers. Good relationships with suppliers could even result in discounts on future purchases.