Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. The demand for power tools remains at or close to pre-pandemic levels despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's follows closely behind. But both companies are facing stiff competition from China-manufactured power tools.
Tip 1: Create an Engagement to Brands
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 in-depth knowledge of the product. This type of communication is not suitable for emotional marketing strategies.
But, companies that produce industrial tools should rethink their marketing strategy. The digital age has overtaken traditional manufacturing companies that rely on a select group of distributors and retail outlets for sales.
Brand commitment is an important factor in power tool sales. When a customer is committed to a specific brand and brand, they are less responsive to competitor's messages. In addition they are more likely to purchase the client's product time and time again and recommend it others.
It is essential to have a well-planned strategy to make an impact on the US market. This means adjusting your tools to meet local requirements and positioning your brand in a competitive way, and leveraging distribution channels and marketing platforms. It is also essential to cooperate with local authorities as well as industry associations and experts. When you do this you can be sure that the power tools you purchase comply with the country's regulations and standards.
Tip 2: Know Your Products
In a world where product quality is crucial, retailers should be aware of the products they offer. This will allow them to make informed choices about the products they offer. This information can make the difference between a successful sale and a bad one.
For instance, knowing that a tool is suitable for the particular task will help you connect your customer with the best tool to meet their needs. You'll build trust and loyalty among your customers. It will also give you confidence that you're offering the complete solution.
Additionally, understanding the trends in DIY culture can help you better comprehend what your customers want. For instance increasing numbers of homeowners are completing home improvement projects that require the use of power tool. This can lead to an increase in the sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason that a buyer makes a tool purchase is to replace one that has been damaged or broken, or to embark on the task of a new one. 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 power tool purchases are the result of planned replacements. These customers may require additional accessories or upgrade to a better-performing model.
Whether your customer is an experienced DIYer or is new to the hobby, they'll likely need to replace their power tools' carbon brushes drive belts, drive belts, and power cords over time. These items will ensure your customer gets the most out of their investment.
When buying top power tools , technicians take into consideration three factors: the application, the power source and safety. These aspects help technicians make informed decisions about the best tools to use in their repairs and maintenance work. This allows them to maximize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Stay up-to-date with the latest technologies.
For instance, the latest power tools feature intelligent technology that enhances the user experience and sets them apart from competitors that still rely on old battery technology. B2B wholesalers that stock and sell these devices can increase sales by targeting tech-forward contractors and professionals.
Karch's business, with more than 30 years of experience, and a 12,000 square foot department for tools, is a testament to the importance of staying up-to-date with new technologies. He states that manufacturers are constantly changing their product designs. "They used hold their designs for five or ten years, but now they change them each year."
In addition to taking advantage of the most recent technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the strain caused by long use. These features are crucial for professionals who employ the tools for a long period of time. The market for power tools is divided into professional and consumer groups and this means that the biggest players are constantly improving their designs and developing new features that will appeal to more people.
Tip 5: Create a point of Sales
The landscape of e-commerce has transformed the power tool market. Data collection techniques have improved, allowing business professionals to gain a better understanding of the market. This helps them develop more efficient inventory and marketing strategies.
Using data from the point of sale (POS) You can track DIY projects that customers undertake when buying power tools and accessories. Knowing what projects your customers are working on enables you to offer upsells and add-ons. It helps you anticipate the needs of your customers, so that you always have the right products on your shelves.
You can also utilize transaction data to identify trends in the market and adjust production cycles accordingly. You could, for instance make use of this information to monitor fluctuations of your retail partners' and your brand's market share. This allows you to align product strategies to the preferences of consumers. Additionally, you can make use of POS data to improve levels of inventory and decrease the risk of stocking up. It can also help you to evaluate the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a tangled market with high profits that requires a substantial amount sales and marketing effort to remain competitive. In the past, gaining a competitive advantage in this market was accomplished by pricing or positioning products. But these methods are not effective in today's world of omnichannels where information is readily communicated.
Retailers who are committed to providing a high level of service are better able to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, runs a 12,000 square-foot power tool section. His initial department featured a variety of brands. However when he talked to contractors, he discovered that they were loyal to their favorite brand.
To be successful in their customers' business, Karch and his team first ask customers what they want to do using the tool, before showing them what they have available. This gives them the confidence to recommend the most effective 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 retailer for the failure of a tool on the job.
Tip 7: Create a Point of Customer Service
Power tool retailers face an extremely competitive market. People who succeed in this area tend to be more devoted to a single brand rather than to carry a variety of brands. The amount of space retailers can dedicate to a specific category could affect the number of brands they can carry.
Customers frequently require assistance when they go in to buy a power tool. Sales associates can provide the best advice to customers who are looking to replace a damaged tool or are planning the renovation of their home.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is educated to ask questions that can lead to the sale. They begin by asking what the customer plans to use the tool, he adds. "That's the primary factor in deciding the type of tool to offer them," he adds. Then, they inquire about the project and the level of experience the customer has with different types of projects.
Tip 8: Make an End of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some manufacturers offer a comprehensive warranty, while others are more limited or refuse to cover certain tools. Before making a purchase it's important that retailers know the distinctions. Customers will only buy tools from companies that will guarantee their products.
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 a repair shop on site that repairs 50 different lines of tools. He has discovered through the years that a majority of his customers who are contractors are loyal to a particular brand, so the company prefers to stick to the most popular brands rather than attempting to carry a sampling of different products.
He is also pleased that his employees have the ability to meet with vendors one-on-1 to discuss new products and share feedback. This personal contact is crucial because it helps build trust between the store's clients and employees. Building strong relationships with suppliers may result in discounts on future purchases.