Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both consumers and professionals. The demand for power tools remains at or near pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic in 2021.
Home Depot is the leader in power tool sales by dollar share. Lowe's isn't far behind. However, both are facing stiff competition from China-manufactured power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products prioritize sales over marketing. This is because a long-term sales requires a lot of back-and-forth communication and detailed product knowledge. This kind of communication isn't suitable for emotional marketing strategies.
But, companies that produce industrial tools need to rethink their marketing strategy. The digital world has raced over traditional manufacturers who depend on a small circle of retailers and distributors to sell their products.
A key to selling power tools is brand loyalty. If a customer is committed to a brand and is loyal to a brand, they are less prone to messages from competitors. They are also more likely to purchase the product of the customer again and to recommend them to others.
It is essential to have a well-planned strategy to make an impact on the US market. This includes adapting your tools to meet the local requirements and positioning your brand in a strategic way, and making use of marketing channels and distribution channels. It is also important to collaborate with local authorities, industry associations, and experts. You can be assured that your power tool is in line with the standards and regulations of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they are selling, especially in a market which places a great importance on the quality of products. This will help them make informed decisions about what they offer. This information can make the difference between a successful deal and a bad one.
Knowing that a certain tool is perfect for a project will help you match the right tool to your customer's needs. This will help you build trust and loyalty with your customers. It will also give you confidence that you're offering a complete solution.
In addition, understanding the trends in DIY culture can help you better comprehend what your customers want. For instance the increasing number of homeowners are taking on home renovation projects requiring the use of power tools. This can lead to a spike in the sale of these tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, although Ryobi and Craftsman brands have seen their share decrease year-over-year. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power tool purchase is to replace one that is broken down or to take on a new project. Both of these can be used to increase sales 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 of power tools are the result of planned replacements. These customers often require additional accessories or may require an upgrade to better quality models.
No matter if your customer is an experienced DIYer or just starting out in the hobby, they'll likely require replacement of their power tools' carbon brushes, drive belts and power cords with time. These basic items will ensure that your client gets the most from their investment.
Technicians take into consideration three main aspects when buying power tools applications, how it will be used and safety. These factors help technicians make informed decisions about the best tools to use for their maintenance and repairs. This enables them to maximize the efficiency of their tools and reduce the cost of owning it.
Tip 4: Continue to Keep Up with Technology
The most modern power tools, for example they feature smart technology that enhances the user experience and sets them aside from rivals who rely upon old battery technology. Wholesalers of B2B who stock and sell these devices can boost sales by targeting professionals and contractors who are tech-savvy.
For Karch who's business has more than three years of experience and a 12,000-square-foot tool department, staying current with the latest technology is vital. He states that manufacturers are constantly changing their designs for their products. "They were able to hold their designs for five or ten years, but now they alter their designs every year."
B2B wholesalers must not only adopt the latest technology, but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the fatigue that comes from prolonged use. These features are crucial for a lot of professional contractors who need to use the tools for long periods of time. The market for power tools is divided into consumer and professional groups. This means that the biggest players are constantly striving to improve their designs and create new features to reach a larger public.
Tip 5: Make a Point of Sales
The e-commerce market has changed the market for power tools. Data collection methods have improved and business professionals can gain a better understanding the market. This helps them develop more effective inventory and marketing strategies.
Point of sale (POS) information, for instance, allows you to keep track of the types of projects DIYers tackle when purchasing tools and accessories. Knowing what projects your customers are working on enables you to offer upsells and add-ons. It also helps you anticipate the requirements of your customers making sure you have the right products available.
Moreover, transaction data enables you to spot trends in the market and adjust production cycles accordingly. For example, you can use this data to monitor fluctuations in your brand's or the market share of your retail partners which allows you to match your product strategies to consumer preferences. POS data can also be used to optimize levels of inventory, reducing the risk of stocking up. It can also help you to evaluate the effectiveness of promotions.
Tip 6: Create a Point of Service
Power tools is a high-profit, complex market that requires substantial sales and marketing efforts to remain competitive. The most common methods of gaining a strategic advantage in this market have been through pricing or product positioning--but these tactics no longer work in today's multichannel marketplace in which information is dispersed rapidly.
Retailers that focus on customer 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. The department was initially home to various brands. However when he talked to contractors, he realized that they were loyal to their preferred brand.
Karch and his staff members ask their customers what they would like to do with a tool before showing them the options. This gives them confidence to recommend the best tool for the job and builds trust with the customer. Customers who are familiar with their product are less likely than others to blame the store for a malfunction of a device on the job.
Tip 7: Be a guru in customer service
Power tool retailers are facing an extremely competitive market. The retailers that are successful in this category tends to be more committed to a specific brand rather than to carry a variety of brands. The amount of space a retailer is able to devote to a category may also influence how many brands they can carry.
When customers go in to purchase a power tool and require assistance, they usually need help selecting a product. If they're replacing an old one damaged or undertaking a renovation project Customers need guidance from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are trained to ask questions that can lead to the sale. He says they start by asking the customer about what they intend to do with the product. "That's the key to determining the type of tool to sell them," he adds. The next step is to inquire about the project and the level of experience they have with different types of projects.
power tool shops : Create an End of Warranty
The warranties of the power tool makers are very different. Some companies offer a complete warranty, while others offer more limited warranties or do not offer warranties for certain tools. It's important for retailers to understand these differences before making a purchase, because buyers 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 a 12,000 square-foot power tool department and an on-site repair shop that repairs 50 different lines of tools. He has observed that many of his contractors are loyal to a particular brand. Therefore, he prefers to carry a limited number of brands instead of trying to carry a variety of products.
He also likes the fact that his employees can meet with vendors one-on-one to discuss new products and provide feedback. This kind of interaction is vital because it helps build trust between the store's customers and employees. Good relationships with suppliers can even result in discounts for future purchases.