Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and personal use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near pre-pandemic levels.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is not far behind. Both are competing with power tools manufactured in China.
Tip 1: Make a Brand Commitment
Many industrial products manufacturers prioritize 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 does not lend itself to emotional consumer marketing tactics.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital age has raced past traditional companies that rely on a few retailers and distributors for sales.
A key to selling power tools is brand commitment. If a client is adamant about a particular brand, they are less sensitive to the messages of competitors. Additionally, they are more likely to buy the item of the customer time and time again and recommend it others.
It is essential to have a well-planned strategy to be successful in the American market. This means adapting your tools to local needs and positioning brands in a competitive manner, and leveraging marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. You can be certain that your power tool will be in compliance with the standards and regulations of the country when you follow these guidelines.
Tip 2: Know Your Products
Retailers should be familiar with the products they are selling, especially in a market that places such a high value on product quality. This will help them make informed decisions about the products they offer their customers. This knowledge could also be the difference between a good sale and a poor one.
Knowing which tool is perfect for a project will help you match the right tool to the needs of your customer. You'll earn trust and loyalty among 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 understand what your customers want. As an example, more homeowners are undertaking home renovation projects requiring the use of power tool. This can lead a spike in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, while Ryobi and Craftsman brands have seen their share drop year-over-year. However, online and in-store sales are on the increase.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair the broken one or tackle a new project. Both provide the possibility of upselling or adding on 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. These customers typically require additional accessories, or require an upgrade to better quality models.
If your customer is experienced in DIY or is just beginning the hobby, they will need to replace the carbon brushes, drive cords and power cords of their power tools as time passes. These items will ensure your client gets the most out of their investment.
Technicians consider three key items when making power tool purchases: application, how it will be powered and safety. These factors aid technicians in making educated decisions about the most suitable tools to use for their repairs and maintenance work. This enables them to maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Stay up-to-date with the latest technologies.
The most recent battery tools, for instance are equipped with smart technology that improves the user's experience and sets them apart from rivals who rely on old-fashioned battery technology. B2B wholesalers that stock and sell these devices can increase sales by targeting professional and tech-savvy contractors.
Karch's business, which has over 30 years of experience, and a 12,000 square feet tool department, is a testament to the importance of keeping current with the latest technologies. "Manufactures are constantly changing the design of their products" Karch says. "They used to hold their designs for five or ten years, but now they're changing them every year."
B2B wholesalers must not only embrace the latest technologies but also improve existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. power tools uk are crucial for many professionals who must use the tools for long durations. The industry of power tools is divided into professional and consumer groups and this means that the biggest players are constantly improving their designs and introducing new features to reach an even larger audience.
Tip 5: Create a Point of Sales
The landscape of e-commerce has transformed the market for power tools. Modern methods for data collection allow professionals in the field to get an overall overview of market trends, allowing them to shape marketing and inventory strategies more effectively.
Using information from the point of sale (POS), you can track DIY projects that customers complete when purchasing power tools and other accessories. Knowing what projects your customers are working on enables you to increase sales and provide extras. It also allows you to anticipate the needs of your customers, ensuring that you have the appropriate products on hand.
Furthermore, transaction data allows you to detect trends in the market and adjust production cycles accordingly. For instance, you could utilize this information to track fluctuations in your brand and market share of retail partners and help you match your product strategies to consumer preferences. POS data can also be used to optimize inventory levels, which reduces the risk of overstocking. It can also assist you to evaluate the effectiveness of promotional campaigns.
Tip 6: Establish an Point of Service
Power tools are a complicated market that is high-profit and requires a substantial amount sales and marketing effort to stay competitive. In the past an advantage in this market was achieved by establishing prices or positioning of products. But these methods are not as effective in the current omnichannel environment where information is readily available to be shared.
Retailers who make a point of service are better able to keep customers coming back 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. In the beginning, his store featured a sampling of brands, but as he began to listen to contractor customers, he discovered that the majority were loyal to a particular brand.
To make a mark in their customers, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them what they have available. This gives them confidence to recommend the right tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely to blame the retailer for a failure of a tool on the job.
Tip 7: Make a Point of Customer Service
Power tool retailers face a fiercely competitive market. The retailers that are successful in this category tends to be more committed to a single brand 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.
When customers come in to purchase power tools and require assistance, they usually need help selecting a product. When they're replacing an old tool that is broken or tackling the task of renovating clients require expert advice from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is educated to ask the right questions in order to make the sale. They begin by asking the customer about what they intend to do with the item. "That's the way to decide what kind of tool they need," he says. The next step is to inquire about the project and what level of experience the customer has with different types of projects.
Tip 8: Be sure to be sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some manufacturers offer a comprehensive warranty, whereas others are more limited or do not cover certain tools. It is crucial for retailers to understand the differences prior to buying, since 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 as well as an repair shop in-house that handles 50 lines of tools. He has learned over the years that many of his contractor customers are loyal to their brands, which is why he prefers to focus on the most popular brands rather than attempting 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 share feedback. This personal contact is important as it helps build trust between the store and the customers. Good relationships with suppliers may even lead to discounts for future purchases.