Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. The demand for power tools remains at or near pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in power tool sale s in terms of dollar share. Lowe's is not far behind. Both are competing against power tools made in China.
Tip 1: Create an Efficacious Brand Commitment
Many manufacturers of industrial products put an emphasis on sales and marketing. This is because a long-term sales requires a lot of back and forth communication and in-depth knowledge of the product. This kind of communication does not permit emotional marketing strategies.
However, companies that make industrial tools should rethink their marketing strategy. The digital world has raced past traditional manufacturers who rely on a few retailers and distributors to sell their products.
A key to selling power tools is brand loyalty. When a customer is committed to a certain brand, they are less sensitive to competitors' communications. Moreover, they are more likely to purchase the client's product repeatedly and recommend it to others.
You require a well-planned strategy to be successful in the American market. This means adapting your tools to meet the local requirements, positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. You can be certain that your power tool will be in compliance with the standards and regulations of the country when you do this.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they are selling, especially in a market that places such a high importance on the quality of products. This will enable them to make informed choices about the products they offer their customers. This knowledge could make the difference between making a successful or a bad purchase.
For instance knowing which tool is best suited to a particular project can help you match your customer with the right tool for their requirements. This will allow you to build trust and loyalty with your customers. This will ensure that you are offering an entire service.
Additionally, understanding the trends in DIY culture can help you better know what your customers are looking for. For example, a growing number of homeowners are taking on home improvement projects that require the use of power tools. This can lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. However, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace the broken one or tackle a new project. Both offer opportunities for upsells and add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of power tool purchases were the result of a planned replacement. These customers often require additional accessories or need to upgrade to higher quality models.
No matter if your customer is a seasoned DIYer or just starting out in the hobby, they will likely need to replace their carbon brushes for power tools as well as drive belts and power cords over time. Being on top of these important items will allow your customer to make the most of their investment.
Technicians must consider three important aspects when making power tool purchases applications, how it will be powered and safety. These factors help technicians make educated decisions about the most suitable tools to use in their repairs and maintenance work. This helps them maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Continue to Keep Up with Technology
For instance, the most recent battery tools have smart technology that improves the user experience and differentiates them from competitors that still rely on old battery technology. B2B wholesalers that offer and sell these tools can increase sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three years 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 used to keep their designs for five or ten years, but now they're changing them each year."
B2B wholesalers should not just adopt the latest technology, but also improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can reduce fatigue caused by prolonged use. These features are crucial for many contractors working in the field who utilize the tools for a long period of time. The power tools industry is divided into consumer and professional groups, which means that major players are constantly improving their designs and introducing new features to reach a wider audience.
Tip 5: Make a Point of Sales
The ecommerce landscape has changed the power tool market. The advancements in data collection techniques have allowed business professionals to get an entire overview of market trends which allows them to design marketing and inventory strategies more efficiently.
Point of sale (POS) data can, for example, allow you to monitor the kinds of projects that DIYers are working on when purchasing tools and accessories. Knowing what projects your customers are working on enables you to offer upsells and add-ons. It also allows you to anticipate the requirements of your customers making sure you have the correct products available.
Furthermore, transaction data allows you to identify market trends and adjust your production cycles accordingly. For instance, you could use this data to monitor changes in your brand's and retail partner market shares which allows you to align your product strategies with consumer preferences. In the same way, you can utilize POS data to optimize inventory levels and reduce the risk of overstocking. It can also help you to evaluate the effectiveness of promotions.
Tip 6: Create an Point of Service
Power tools are a tangled, high-profit market that requires a substantial amount of marketing and sales efforts to remain competitive. power tools near me to gain a strategic advantage in this field were by positioning or pricing products. However, these tactics no longer work in today's omnichannel marketplace where information is distributed so quickly.
Retailers who are committed to providing a high level of providing a high-quality 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 several brands. However when he spoke to contractors, he discovered that they were loyal to their preferred brand.
To win their business, Karch and his team first ask customers what they'd like to achieve with the tool before showing them the tools they have available. This gives them the confidence to recommend the right tool for a job, and increases trust with their customers. Customers who are familiar with their product are less likely to blame the retailer for the failure of a tool on the job.
Tip 7: Make a Point of Customer Service
Power tool retailers are in a fiercely competitive market. The retailers that have had the most success in this market tend to make a firm commitment to a brand rather than merely carrying a sampling of manufacturers. The amount of space that a retailer needs to devote to this category can be a factor in the number of brands it can carry.
Customers often need assistance when they come in to buy a power tool. Sales associates can offer expert guidance to customers looking to replace a broken 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 his store's staff is educated to ask questions that will lead to the sale. They start by asking what the customer is planning to use the tool for, he says. "That's how you decide what kind of tool they require," he says. Then, they inquire about the customer's experience with different types projects and the project.
Tip 8: Create an End of Warranty
The warranty policies of power tool manufacturers are quite different. Some companies offer a complete warranty, whereas others offer more limited warranties or do not offer warranties for certain tools. Before making a purchase it is crucial that the retailer understands the distinctions. Customers will only purchase tools from companies who provide a warranty.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop in-house that handles 50 models of tools. He has realized through the years that a majority of his contractor customers are loyal to their brands, which is why he focuses on a limited number of brands rather than carry a sampling of different products.
He also appreciates that his employees can get one-on-one time with vendors to discuss new products and give feedback. This kind of interaction is essential because it helps create trust between the store and its customers. Good relationships with suppliers may even result in discounts for future purchases.