Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. 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 dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely behind. Both are competing with power tools made in China.
Tip 1: Make a Brand Commitment
Many manufacturers of industrial products place more emphasis on sales than marketing. This is because the long-term selling process requires a lot of back-and-forth communication and detailed knowledge of the product. This kind of communication isn't suitable for emotional marketing strategies.
However, industrial tool manufacturing companies should think about rethinking their marketing strategy. The digital age has outpaced traditional manufacturers who depend on a few distributors and retail outlets for sales.
Brand commitment is a key factor in power tool sales. When a buyer is committed to a certain brand they are less receptive to competitors' communications. They are also more likely to buy the client's products again and to recommend them to friends and family.
You need a well-planned plan to have an impact on the American market. This involves adapting your tools to local needs, positioning brands in a way that is competitive, and making use of distribution and marketing platforms channels. Collaboration with local authorities, associations and experts is also crucial. By doing so you can be sure that your power tools will comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
In a market where product quality is crucial, retailers should be aware of the products they offer. This will allow them to make informed decisions about what they are selling. This information can make the difference between a good deal and a bad one.
Knowing that a certain tool is perfect for a 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 the complete solution.
Understanding DIY culture trends can aid in understanding your customers' needs. As an example, more homeowners are undertaking home renovation projects requiring the use of power tools. This can result in a surge in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, while Ryobi and Craftsman brands have seen their share drop year-over-year. Despite this the fact that sales on both stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The most frequent reason a consumer makes a power purchase is to replace one that is broken down or to take on the task of a new one. Both of these can be used to increase sales and add-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 a planned replacement. Customers may require additional accessories, or upgrade to a better-performing model.
If your customer is a seasoned DIYer or just starting out in the hobby, they'll likely require replacing their power tools' carbon brushes as well as drive belts and power cords over time. Being on top of these important items will help your customer make the most of their investment.
Technicians take into consideration three main aspects when buying power tools: application, how it will be powered and safety. These factors aid technicians in making educated decisions about the most suitable tools to use in their repairs and maintenance tasks. This helps them improve the effectiveness of their tools and lower the cost of ownership.
Tip 4: Stay up-to-date with the latest technologies.
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 offer and sell these tools can increase sales by targeting professionals and contractors who are technologically advanced.
Karch's business, which has more than 30 years of experience and a 12,000 square foot tooling department is a testimony to the importance of staying up-to-date with new technologies. He says that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or ten years, but they're now changing them every year."
In addition to embracing the modern technologies, B2B wholesalers should also focus on improving existing models. By adding read article and adjustable handles, wholesalers can lessen fatigue caused by long-term use. These features are essential to professionals who employ the tools for a long period of time. The power tool industry is divided into the consumer and professional segments. This means that the major players are always working to improve their designs and create new features in order to appeal to a wider audience.
Tip 5: Create a point of Sale
The e-commerce market has changed the market for power tools. The advancements in data collection techniques allow professionals in the field to get an overall perspective of market trends which allows them to design strategies for inventory and marketing more efficiently.
By utilizing information from the point of sale (POS) You can track DIY projects your customers complete when purchasing power tools and other accessories. Knowing what projects your customers are working on enables you to upsell and offer add-ons. It allows you to anticipate your customers' needs, so that you always have the appropriate products on your shelves.
Furthermore, transaction data allows you to spot trends in the market and adjust production cycles accordingly. For instance, you could use this data to monitor fluctuations in your brand's or the market share of your retail partners, enabling you to adapt your product strategies to consumer preferences. POS data can also be used to improve inventory levels, reducing the risk of overstocking. It is also used to assess the effectiveness of promotions.
Tip 6: Make a Point of Service
Power tools are a complex market with high profits that requires a significant amount of sales and marketing effort to remain competitive. In the past, getting a competitive 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 concentrate on service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin is the owner of a 12,000-square-foot power tool department. At first, the department offered various brands, but as he began to listen to contractor customers, he discovered that the majority were loyal to a particular brand.
Karch and his staff members ask their customers what they plan to do with a tool before showing them the alternatives. This gives them confidence to recommend the best tool for the job and builds trust with the customer. Customers who know their product are less likely to blame their vendor for a tool malfunction during the course of work.
Tip 7: Make a point of customer service
Power tool retailers face an extremely competitive market. Those who are successful in this market tend to be more committed to a single brand rather than to carry a variety of manufacturers. The amount of space a retailer must devote to this category can also play a role in the number of brands it can carry.
they said need assistance when they visit to purchase a power tool. If they're replacing an old tool that is broken or tackling a renovation project Customers need advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is educated to ask questions that could lead to the sale. He says they start by asking the customer about what they plan to do with the item. "That's the way to determine the type of tool you need," he says. Then they ask about the customer's experience with different types projects and the project.
Tip 8: Make a Point of Warranty
The warranties of the power tool makers differ greatly. Some are fully comprehensive, while some are stingy, or refuse to cover certain aspects of the tools at all. Before purchasing a tool, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies that provide a warranty.
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 in-house repair shop that handles 50 lines of tools. He has discovered through the years that a majority of his customers who are contractors are brand loyal, so he prefers to focus on only a few brands rather than trying to offer a wide range of products.
He also likes the fact that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and provide feedback. This type of personal interaction is essential because it builds trust between the store's customers and employees. Good relationships with suppliers can even result in discounts on future purchases.