Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. The demand for power tools remains at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 outbreak in 2021.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is not far behind. Both are competing against power tools made in China.
Tip 1: Make an Efficacious Brand Commitment
Many industrial product manufacturers place a higher priority on sales than marketing. This is because a long-term sales requires a lot back-and forth communication and in-depth knowledge of the product. This type of communication does not permit emotional marketing tactics.
However, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital age has overtaken traditional manufacturers who depend on a small group of retailers and distributors for sales.
Brand commitment is an important factor in power tool sales. When a buyer is committed to a specific brand and brand, they are less responsive to the messages of competitors. In addition, they are more likely to buy the product of the client repeatedly and recommend it to others.
To make a successful impact in the United States market, you must have a well-planned strategy. This includes adapting your tools to meet the local requirements and positioning your brand in a competitive way, and making use of distribution channels and marketing platforms. It is also important to collaborate with local authorities and industry associations as well as experts. You can be sure that your power tool will be in compliance with the standards and regulations of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they offer particularly in a market that places such a high value on product quality. This will allow them to make informed decisions about the products they offer their customers. This knowledge can make the difference between making a successful or a poor sale.
For instance knowing that a particular tool is ideal for the particular task will allow you to match your customer with the right tool to meet their requirements. You'll build trust and a sense of loyalty among your customers. This will give you confidence that you're providing a complete service.
In addition, understanding the trends in DIY culture will help you comprehend what your customers want. For instance the increasing number of homeowners are taking on home renovation projects requiring the use of power tool. This could lead to an increase in the sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to either replace a tool that has been damaged or broken down or to take on an entirely new project. Both provide opportunities for upsells or 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. The customers might require additional accessories or upgrade to a more powerful model.
Your customer may have experience in DIY or is just beginning the hobby, they will have to replace their carbon brushes, drive cords, and power cords of their power tools as time passes. These basic items will ensure that your customer reaps the maximum benefit from 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 in their repairs and maintenance work. This helps them maximize the effectiveness of their tool and reduce the cost of owning it.
Tip 4: Keep up-to-date with the latest technologies.
For instance, the latest power tools feature smart technology that improves the user experience and sets them apart from other tools that depend on old-fashioned battery technology. power tools shop of B2B that offer and sell these tools can increase sales by focusing on professionals and contractors who are technologically advanced.
For Karch who's business has more than three decades of experience and a 12,000-square-foot tool department, keeping up with the latest technologies is crucial. He states that manufacturers are constantly changing their product designs. "They used hold their designs for five or 10 years, but now they change their designs every year."
B2B wholesalers need to not only take advantage of the latest technologies, but also upgrade their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can lessen fatigue due to long-term use. These features are important for a large number of professionals who have to use the tools for long durations. The market for power tools is divided into the consumer and professional segments. This means that major players are always working to improve their designs and develop new features to appeal to a wider audience.
Tip 5: Make a Point of Sales
The online marketplace has changed the power tool market. The advancements in data collection techniques have enabled business professionals to gain an entire perspective of market trends and help them develop inventory and marketing strategies more effectively.
Point of sale (POS) information can, for example, allow you to track the types of projects DIYers undertake when purchasing power tools and accessories. Knowing what projects your customers are working on enables you to increase sales and provide additional products. It also allows you to anticipate the requirements of your clients making sure you have the right products available.
Additionally, transaction data can help you to identify market trends and adjust your production cycles accordingly. You could, for instance utilize this data to monitor changes in your retail partners' and brand's market shares. This will allow you to align product strategies to consumer preferences. POS data can also be used to improve levels of inventory, reducing the risk of overstocking. It can also help you to assess the effectiveness of promotional campaigns.
Tip 6: Make a Point of Service
Power tools are a tangled market with high profits that requires a substantial amount marketing and sales efforts to remain in the game. In the past, getting a competitive advantage in this market was accomplished by pricing or positioning products. However, these tactics are not effective in today's omnichannel environment where information is easily shared.
Retailers that focus on customer service are more likely to keep 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. In the beginning, his store featured a sampling of brands, but when he began listening to customers who were contractors and found that the majority were loyal to a particular brand.
To win their business, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them the tools they have available. This gives them the confidence to recommend the best tool for the job and also builds trust with the customer. Customers who know their product well are less likely to blame their supplier for a tool failure on the job.
Tip 7: Become a guru in customer service
The market for power tools has become a very competitive area for hardware retailers. Those who are successful in this market tend to be more committed to a single brand rather than to carry a variety of brands. The amount of space a retailer is able to devote to a specific category could affect the number of brands they can carry.
Customers often need assistance when they go in to purchase a power tool. Sales associates can provide expert advice to customers who are looking to replace a damaged tool or undertaking the renovation of their home.
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 can lead to an offer. They begin by asking questions about what the buyer is planning to use the tool, he adds. "That's how you decide what kind of tool you need," he says. Then, they inquire about the project and the level of experience they have with different kinds of projects.
Tip 8: Create an End of Warranty
The makers of power tools vary widely in their warranty policies. Some are fully comprehensive, while some are stingy or even refuse to cover certain aspects of the equipment. Before making a purchase it is essential that retailers understand the distinctions. Customers will only purchase tools from companies that will back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool shop and repair shop on site that repairs 50 different brands of tools. He has discovered that a lot of his contractor clients are loyal to a particular brand. Therefore, he prefers to carry a select few brands instead of trying to offer samples of various products.
He also likes the fact that his employees have the opportunity to get one-on-one time with vendors to discuss new products and share feedback. This kind of interaction is essential because it helps to create trust between the store and the customers. Building strong relationships with suppliers may lead to discounts on future purchases.