Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumer and professional use. Despite a slowdown in 2021 due to the COVID-19 pandemic demand remains close to or at levels prior to the pandemic.
In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. cheap power tools follows closely. Both are competing with power tools manufactured in China.
Tip 1: Commit to a brand
Many industrial product manufacturers place a higher priority on sales over marketing. This is because a long-term purchase requires a lot of back-and-forth communication and in-depth knowledge of the product. This kind of communication isn't suitable for emotional marketing strategies.
Nevertheless, industrial tools manufacturing companies must rethink their approach to marketing. The digital world has surpassed traditional manufacturing companies that rely on a few distributors and retail outlets for sales.
Brand commitment is an important element in the sale of power tools. If a customer is committed to a brand, they will be less prone to messages from competitors. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to friends and family.
To make a successful impact on the United States market, you must have a well-planned strategy. This involves adapting your tools to local needs and positioning brands in a way that is competitive, and using marketing platforms and distribution channels. It is also crucial to work with local authorities and industry associations as well as experts. You can be assured that your power tool will meet the requirements and standards of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
In a world where product quality is crucial, retailers should be aware of the products they sell. This will help them make informed choices about what they offer their customers. This knowledge can also make the difference between a good sale and a bad one.
For instance, knowing that a tool is best suited to the particular task can help you connect your customer with the best tool for their requirements. This will aid in building trust and loyalty with your customers. This will help you feel confident that you are offering the complete service.
Understanding DIY cultural trends can help you understand the needs of your customers. For instance, a growing number of homeowners are taking on home renovation projects that require power tools. This can result in a surge in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16%. However, Ryobi and Craftsman have seen their share decrease year-over-year. Despite this the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power tool purchase is to replace one that has failed or to embark on a 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 for power tools are the result of planned replacements. Customers may require additional accessories, or upgrade to a better-performing model.
Your customer may have experience in DIY or is new to the hobby, they will need to replace carbon brushes, drive cords and power cords of their power tools over time. These essentials will ensure that your customer reaps the maximum benefit out of their investment.
When purchasing power tools, technicians look at three factors: the application the power source, and safety. These aspects help technicians make informed choices when it comes to selecting the right tools for their repair and maintenance work. This allows them to maximize the efficiency of their tools and reduce the expense of owning it.
Tip 4: Stay current with the latest technology
For instance, the most recent power tools offer intelligent technology that enhances users' experience and differentiates them from competitors that still depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these devices can boost sales by targeting tech savvy contractors and professionals.
For Karch the company, which has more than three decades of experience and a 12,000-square-foot tool department, keeping up with the latest technologies is crucial. "Manufactures are constantly changing the design of their products," Karch says. "They were able to hold their designs for 5 or 10 years but now they are changing their designs every year."
B2B wholesalers should not just take advantage of the latest technologies, but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are important for many professional contractors who need to utilize the tools for lengthy periods. The market for power tools is divided into consumer and professional groups and this means that the biggest players are always working on improving their designs and developing new features to reach a wider audience.
Tip 5: Create a point of Sale
The landscape of e-commerce has transformed the market for power tools. Modern methods for data collection have allowed professionals in the field to get an overall perspective of market trends, allowing them to shape strategies for inventory and marketing more efficiently.
By utilizing information from the point of sale (POS), you can track DIY projects that customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on allows you to increase sales and provide extras. It also allows you to anticipate the needs of your customers, ensuring that you have the correct products available.
You can also utilize transaction data to determine trends in the market, and then adjust production cycles accordingly. For instance, you can use this data to monitor fluctuations in your brand and market share of retail partners which allows you to adapt your product strategies to consumer preferences. POS data can also be used to improve inventory levels, reducing the risk of stocking up. It can also be used to evaluate the effectiveness of promotional campaigns.
Tip 6: Establish a Point of Service
Power tools are a tangled market that is high-profit and requires a substantial amount sales and marketing effort to stay competitive. The classic ways to gain an advantage in this industry have been by establishing pricing or positioning of products, but these tactics no longer work in the omnichannel world of today where information is distributed rapidly.
Retailers who are committed to providing a high level of providing excellent service are more likely to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot power tool department. The department was initially home to various brands. However when he spoke to contractors, he discovered that they were loyal to their preferred brand.
Karch and his staff members ask their customers what they intend to do with the tool prior to showing them the possibilities. This gives them the confidence to recommend the best tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame the retailer for the failure of a device on the job.
Tip 7: Create an effort to be a Point of Customer Service
The power tool market has become a highly competitive market for retailers of hardware. Those who have seen success in this area tend to make a firm commitment to a brand rather than merely carrying a selection of manufacturers. The amount of space retailers can dedicate to a category may also affect the number of brands they can carry.
When customers go in to purchase an electric tool, they often need help choosing a product. Sales associates can provide professional advice to customers who are looking to replace a broken device or completing a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are trained to ask the right questions to make the sale. They begin by asking what the customer is planning to use the tool for according to him. "That's the best way to determine the type of tool they require," he says. Then, they inquire about the project and the level of experience the client has with various types of projects.
Tip 8: Be sure to be sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some are fully complete, while others aren't as generous or refuse to cover certain aspects of the tool at all. It is crucial for retailers to be aware of the differences prior to buying, since customers will buy tools from companies that offer warranties.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department and an on-site repair shop that repairs 50 different types of tools. He has discovered over time that a lot of his customers who are contractors are loyal to a particular brand, so he focuses on the most popular brands rather than trying to offer a variety of products.
He is also pleased that his employees have the ability to meet with vendors one-on-one to discuss new products and share feedback. This personal contact is important because it helps to create trust between the store and the customers. Good relationships with suppliers could lead to discounts on future purchases.