Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. The demand for power tools is at or near pre-pandemic levels despite a slowdown due to the COVID-19 outbreak in 2021.
Home Depot is the leader in the sales of power tools based on dollar share. Lowe's is not far behind. Both are however confronting stiff competition from Chinese-made power tools.
Tip 1: Be committed to a brand
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 and a thorough understanding of the product. This kind of communication doesn't permit emotional marketing techniques.
Nevertheless, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has overtaken traditional manufacturing companies that rely on a select group of retailers and distributors for sales.
A key to power tool sales is brand loyalty. If a client is loyal to a particular brand and is loyal to a brand, they are less prone to messages from competitors. In addition, they are more likely to purchase the client's product repeatedly and recommend it to others.
You require a well-planned strategy to be successful in the US market. This means adapting your tools to local needs, positioning brands in a competitive manner, and using marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also crucial. 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: Be aware of Your Products
In a market where quality of the product is so crucial, retailers should be aware of the products they sell. This will help them make informed choices about the products they can offer their customers. This knowledge could also be the difference between a good sale and a bad one.
For example knowing that a particular tool is ideal for specific projects can help you match your client with the appropriate tool for their requirements. This will allow you to build trust and loyalty with your customers. It will also give you the assurance that you're offering a complete solution.
Understanding DIY cultural trends can help you understand your customers' needs. As an example increasing numbers of homeowners are completing home renovation projects requiring the use of power tool. This can result in a surge in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16%. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace the broken one or tackle a new project. Both offer opportunities for upsells and add-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 often require additional accessories or may require upgrading to better performing models.
If your customer is experienced in DIY or is just beginning the hobby, they will have to replace their carbon brushes, drive cords and the power cords on their power tools as time passes. These basic items will ensure that your client gets the most from their investment.
Technicians must consider three important aspects when purchasing power tools: application, how it will be used and safety. These factors allow technicians to make informed choices when it comes to selecting the appropriate tools for their maintenance and repair work. This helps them optimize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Continue to Keep Up with Technology
The most modern battery tools, for instance they feature smart technology that enhances user experience and differentiates them from those who rely on old-fashioned battery technology. B2B wholesalers that stock and sell these devices can increase sales by targeting tech-forward contractors and professionals.
For Karch the company, which has more than three years of experience and a 2,000-square-foot tool department, keeping up with new technologies is essential. He states that manufacturers are constantly changing their product designs. "They used to keep their designs for five or 10 years, but now they're changing them each year."
B2B wholesalers must not only embrace the latest technologies but also enhance their existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the strain caused by long use. These features are crucial for many contractors working in the field who utilize the tools over a long period of time. The power tool industry is split into professional and consumer groups. This means that the biggest players are always working to improve their designs and develop new features to reach a wider market.
Tip 5: Create a Point of Sale
The e-commerce landscape has transformed the power tools market. Advancements in data collection methods allow professionals in the field to get a holistic overview of market trends which allows them to design inventory and marketing strategies more efficiently.
Utilizing data from the point of sale (POS) You can track DIY projects your customers undertake when buying power tools and accessories. Knowing what projects your customers are working on permits you to increase sales and provide extras. It also helps you anticipate the needs of your customers, ensuring that you have the appropriate products available.
Furthermore, transaction data allows you to detect trends in the market and adjust production cycles accordingly. You can, for example make use of this information to monitor fluctuations of your brand's and retail partners' market shares. This allows you to align your strategy for product with consumer preferences. In the same way, you can utilize POS data to optimize levels of inventory and decrease the risk of stocking up. It can also be used to determine the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools are a tangled market with high profits that requires a substantial amount of sales and marketing effort to stay competitive. The traditional methods to gain a strategic advantage in this field have been by positioning or pricing products. However, these strategies are no longer effective in today's multichannel marketplace in which information is dispersed rapidly.
Retailers who provide a high level of providing a high-quality service are more likely to keep 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. His initial department featured a variety of brands. However when he talked to contractors, he noticed that they were loyal to their favorite brand.
To win their customers' business, Karch and his team first ask customers what they want to do using the tool, before showing them the options available. This gives them confidence to recommend the right tool for the job and also builds trust with the customer. Customers who know their product well are less likely to blame their retailer for a tool malfunction during the course of work.
Tip 7: Become a master of customer service
Power tool retailers face an extremely competitive market. Those who are successful in this market tend to be more loyal to a single brand rather than to carry a variety of brands. The amount of space that a retailer needs to devote to this category can also play a role in how many brands it can carry.
When customers come in to purchase power tools and require assistance, they usually need help selecting a product. Sales associates can offer the best advice to customers who are looking to replace a damaged tool or are planning a renovation project.
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 make a sale. They begin by asking questions about what the customer plans to use the tool, he adds. "That's the best way to determine what kind of tool they require," he says. Next, power tools deals ask about the project and the level of experience the customer has with various types of projects.
Tip 8: Be sure to mention your warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are fully comprehensive, while others are stingy, or do not cover certain components of the equipment. It's crucial for retailers to be aware of the differences prior to purchasing, as customers will buy tools from companies that back them up.
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 in-house repair shop that handles 50 lines of tools. He has discovered that a lot of his contractor clients are loyal to their brands. Therefore, he prefers to carry a limited number of brands rather than offer samples of various products.
He also likes the fact that his employees can have one-on-one meetings with vendors to discuss new products and give feedback. This type of personal interaction is essential since it builds trust between the customers and employees. Good relationships with suppliers could even result in discounts for future purchases.