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.
Home Depot is the leader in sales of power tools in terms of dollar share. Lowe's is not far behind. Both are competing with power tools made in China.
Tip 1: Commit to a brand
Many manufacturers of industrial products place an emphasis on sales and marketing. This is because a long-term sales requires a lot back-and forth communication and detailed product knowledge. This kind of communication does not allow for emotional consumer marketing strategies.
However, companies that make industrial tools should rethink their marketing strategy. The digital age has outpaced traditional manufacturers who depend on a select group of distributors and retail outlets for sales.
Brand commitment is a key element in the sale of power tools. When a buyer is committed to a specific brand and brand, they are less responsive to competitor's messages. They are also more likely to buy the products of the brand they are loyal to and to recommend them to friends and family.
To be successful on the United States market, you must develop an organized strategy. This includes adapting your tools to local needs and positioning your brand in a competitive manner, and making use of distribution and marketing platforms channels. Collaboration with local authorities, associations and experts is also essential. You can be sure 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 world where product quality is important, retailers must be aware of the products they offer. This will allow them to make informed decisions about what they offer. This knowledge can make the difference between a successful or a bad purchase.
For example, knowing that a tool is best suited to specific projects can help you connect your customer with the right tool to meet their needs. This will allow you to build trust and loyalty with your customers. This will help you feel confident that you're providing an entire service.
Also, knowing the latest trends in DIY culture can help you understand what your customers want. For instance, more homeowners are undertaking home renovation projects requiring the use of power tools. This can result in a surge in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most frequent reason a consumer makes a power purchase is to either replace a tool that has been damaged or broken down or to take on the task of a new one. Both offer opportunities for upsells or additional 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. Customers often require additional accessories, or require an upgrade to better performance models.
Whether your customer is a seasoned DIYer or new to the hobby, they'll need to replace their power tools' carbon brushes, drive belts and power cords with time. These items will ensure your customer gets the most from their investment.
Technicians must consider three important aspects when buying power tools applications, how it will be used and safety. These aspects allow technicians to make informed choices when it comes to selecting the right tools for their maintenance and repair tasks. This allows them to improve the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Always Keep Up With Technology
For instance, the latest power tools feature advanced technology that enhances users' experience and differentiates them from other brands that still depend on old-fashioned battery technology. B2B wholesalers who stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's business, with over 30 years of experience, and a 12,000 square feet department for tools, is a testament to the importance of staying current with the latest technologies. "Manufactures are constantly changing the look of their products," he says. "They used to keep their designs for five or ten years, but they're now changing them each year."
In addition to embracing the latest technologies, B2B wholesalers should also be looking to improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are essential to many professional contractors who use the tools over a long period of time. The industry of power tools is divided into professional and consumer groups and this means that the biggest players are always working on enhancing their designs and creating new features to appeal to more people.
Tip 5: Make a Point of Sale
The e-commerce market has changed the power tools market. Modern methods for data collection have allowed business professionals to gain an entire overview of market trends and help them develop strategies for inventory and marketing more efficiently.
By utilizing data from the point of sale (POS) You can track DIY projects your customers are completing when purchasing power tools and accessories. Knowing the type of projects your customers are working on enables you to offer additional sales and upsell opportunities. It allows you to anticipate the needs of your customers, so that you always have the right products on hand.
You can also use transaction data to identify market trends, and adjust production cycles accordingly. You could, for instance make use of this information to track fluctuations in your retail partners' and your brand's market share. This will allow you to align your product strategies to the preferences of consumers. Similarly, you can use POS data to optimize inventory levels and reduce the risk of stocking up. It can also help you to evaluate the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a high-profit complex market that requires substantial sales and marketing efforts to stay competitive. In the past, getting a competitive advantage in this market was achieved by establishing prices or positioning of products. But these methods are no longer effective in today's world of omnichannels where information is easily available to be shared.
Retailers who focus on service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, operates a 12,000-square-foot power tool department. His department initially featured a variety of brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.
Karch and his staff ask their customers what they plan to accomplish using a tool before presenting them with the alternatives. This gives them the confidence to recommend the best tool for a job, and also creates trust with customers. Customers who are familiar with their product are less likely to blame the retailer for a malfunction of a device on the job.
Tip 7: Be a master of customer service
Power tool retailers are in an extremely competitive market. The retailers that have had success in this category tend to make a firm commitment to a brand rather than simply carrying a sampling of manufacturers. The size of the space a retailer must devote to this category can also play a role in the number of brands it can carry.
cordless power tool suppliers require assistance when they go in to purchase a power device. If they're replacing an old one 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 the employees at his store are trained to ask questions that can lead to the sale. He says they start by asking the customer what he or she plans to use the product. "That's the way to determine what kind of tool they need," he says. Then, they inquire about the customer's experience with different types projects and the project.
Tip 8: Be sure to mention your warranty
The manufacturers of power tools differ greatly in their warranty policies. Some companies offer a complete warranty, while others are more limited or refuse to cover certain tools. It's crucial for retailers to know the distinctions before purchasing, as customers will buy tools from companies that back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square-foot power tool shop and a repair shop on site that repairs 50 different brands of tools. He has discovered that a lot of his contractor clients are brand loyal. Therefore, he prefers to carry a limited number of brands rather than offer samples of various products.
He also appreciates that his employees have the ability to meet with vendors one-on-1 to discuss new products and share feedback. This type of personal interaction is essential because it builds trust between the customers and employees. Good relationships with suppliers could even result in discounts on future purchases.