Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near levels prior to the pandemic.
Home Depot is the leader in power tool sales by dollar share. Lowe's follows closely. Both are competing against power tools manufactured in China.
Tip 1: Make a commitment to a brand
Many industrial product manufacturers place a higher priority on sales over marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication as well as a detailed understanding of the product. This kind of communication isn't conducive to emotional marketing tactics.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital age has overtaken traditional companies that rely on a few distributors and retail outlets to sell their products.
A key to selling power tools is brand loyalty. If a customer is loyal to a brand they are less prone to messages from competitors. Moreover they are more likely to buy the item of the customer repeatedly and recommend it to others.
To be successful in the United States market, you need to have an organized strategy. This includes adapting tools to local requirements, positioning brands in a competitive manner, and making use of distribution and marketing platforms channels. Collaboration with local authorities and associations, as well as experts is also essential. By doing so, you can be confident that your power tools comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they are selling, especially in a market that places such a high importance on the quality of products. This will help them make informed choices about the products they are selling. This information can make the difference between a successful deal and a bad one.
For example knowing which tool is ideal for specific projects will help you connect your customer with the best tool for their needs. This will allow you to build trust and loyalty with your customers. It will also give you assurance that you're offering the complete solution.
Understanding DIY culture trends can also help you better understand your customers' requirements. As an example, more homeowners are undertaking home renovation projects requiring the use of power tools. This can result in a spike in the sale of these 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 increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace the broken one or tackle the new project. Both offer 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. The customers might require additional accessories, or upgrade to a better-performing model.
Your customer may have experience in DIY or is just beginning the hobby, they will have to replace carbon brushes, drive cords, and power cords of their power tools over time. Keeping up with these essentials will help your customer make the most of their investment.
When buying power tools, technicians look at three aspects: the tool's application the power source, and safety. These factors allow technicians to make informed choices when selecting the right tools for maintenance and repair work. This helps them improve the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Keep Keeping Up with Technology
The latest power tools, for example are equipped with smart technology that enhances the user experience and differentiates them from competitors who still depend on older battery technology. Wholesalers of B2B that offer and sell these tools can increase sales by focusing on tech-forward contractors and professionals.
Karch's company, which has over 30 years of experience, and a 12,000 square foot tool department is a testimony to the importance of keeping up-to-date with new technologies. He states that manufacturers are constantly changing their product designs. "They used to hold their designs for five or 10 years, but they're now changing them each year."
B2B wholesalers must not only take advantage of the latest technologies, but also improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can decrease fatigue from prolonged use. These features are important for many professionals who have to use the tools for long periods. The market for power tools is divided between consumer and professional groups. This means that the major players are constantly working to improve their designs and create new features to reach a larger audience.
Tip 5: Create a point of Sale
The ecommerce landscape has changed the power tool market. The advancements in data collection techniques allow professionals in the field to get a holistic view of market trends, allowing them to shape inventory and marketing strategies more efficiently.
By utilizing information from the point of sale (POS) You can track DIY projects your customers are completing when purchasing power tools and other accessories. Knowing what projects your customers are working on enables you to offer upsells and additional products. It also helps you to anticipate the needs of your customers making sure you have the correct products available.
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 brand's and retail partners market shares. This will allow you to align your strategy for product with consumer preferences. Similarly, you can use POS data to improve levels of inventory and decrease the risk of stocking up. It can also be used to determine the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a complicated, high-profit market that requires a substantial amount of marketing and sales efforts to remain in the game. The most common methods of gaining a strategic advantage in this market have been by establishing pricing or positioning of products, but these strategies are no longer effective in today's multichannel marketplace where information is distributed rapidly.
Retailers who make a point of service are better able to keep customers coming back and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin has a 12,000 square-foot department for power tools. The department was initially home to several brands. However when the original source spoke to contractors, he noticed that they were loyal to their favorite brand.
To be successful in their customers, Karch and his team first ask their customers what they would like to accomplish using the tool, before showing them the tools they have available. This gives them the confidence to recommend the best tool for the job and builds trust with the customer. Customers who know their product are less likely to blame their supplier for a tool malfunction on the job.
Tip 7: Be a master of customer service
Power tool retailers are facing a fiercely 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 manufacturers. The size of the space that a retailer needs to dedicate to this category could also affect the amount of brands it is able to carry.
Customers usually require assistance when they go in to buy a power tool. When they're replacing an old one that's broken or taking on an upgrade project, customers need expert advice from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is educated to ask the right questions to make an offer. They begin by asking questions about what the customer is planning to use the tool according to him. "That's how you decide what kind of tool you need," he says. Next, they ask about the project and what level of experience the client has with different types of projects.
Tip 8: Be sure to make mention of your warranty
The warranty policies of power tool manufacturers differ greatly. Some are fully comprehensive, while some are stingy or even do not cover certain components of the equipment. Before purchasing a tool, it is crucial that the retailer understands the distinctions. Customers will only buy 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 a 12,000 square-foot power tool department as well as 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 prefers to focus on a limited number of brands rather than offer a variety of products.
He also appreciates that his employees can have one-on-one meetings with vendors to discuss new products and provide feedback. This kind of interaction is essential because it helps establish trust between the store and its customers. Building strong relationships with suppliers could lead to discounts on future purchases.