Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and personal use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic demand remains near or at levels prior to the pandemic.
In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely. But both companies are facing stiff competition from China-manufactured power tools.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products put more emphasis on sales and marketing. This is because a long-term sale requires a lot of back-and-forth communication and detailed product knowledge. This type of communication does not lend itself to emotional consumer marketing techniques.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital age has outpaced traditional companies that rely on a select group of retailers and distributors for sales.
Brand loyalty is a major factor in power tool sales. If a client is committed to a certain brand and brand, they are less responsive to competitors' communications. power tool deals are also more likely to purchase the client's products again and to recommend them to others.
To make a successful impact in the United States market, you must have an organized strategy. This means adjusting your tools to meet local needs, positioning your brand in a strategic way, and leveraging marketing channels and distribution channels. It is also crucial to work with local authorities as well as industry associations and experts. You can be assured that your power tool will be in compliance with the requirements and standards of the country when you do this.
Tip 2: Know Your Products
Retailers should be familiar with the products they offer especially in a marketplace that places such a high importance on the quality of products. This will enable them to make informed choices about the products they sell. This knowledge could make the difference between making a good or bad sale.
For instance knowing that a particular tool is suitable for specific projects will help you match your customer with the best tool for their requirements. This will aid in building trust and loyalty with your customers. It will also give you the assurance that you're offering a complete solution.
Additionally, understanding the trends in DIY culture can help you know what your customers are looking for. For instance, a rising number of homeowners are undertaking home improvement projects which require 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 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to repair the broken one or tackle 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 of power tools are the result of planned replacements. Customers may require additional accessories or upgrade to a higher-performing model.
Whether your customer has experience in DIY or is new to the hobby, they will need to replace the carbon brushes, drive cords, and power cords of their power tools over time. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
When purchasing power tools, technicians take into consideration three factors: the application, the power source and safety. These factors aid technicians in making informed choices about the best tools to use for their repairs and maintenance work. This enables them to maximize the efficiency of their tools and reduce the cost of owning it.
Tip 4: Continue to Keep Up With Technology
For instance, the most recent power tools offer advanced technology that enhances users' experience and sets them apart from other brands that still rely on older battery technology. Wholesalers of B2B that stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
For Karch, whose 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 hold their designs for five or ten years, but now they are changing them every year."
B2B wholesalers must not only take advantage of the latest technologies, but also enhance their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are essential for professionals who employ the tools for a long period of time. The power tool industry is split into the consumer and professional segments. This means that major players are constantly working to improve their designs and develop new features to appeal to a wider market.
Tip 5: Create a Point of Sale
The online marketplace has transformed the power tools market. Data collection methods have improved allowing business professionals to gain a better understanding the market. This allows them to create more efficient inventory and marketing strategies.
Utilizing information from the point of sale (POS), you can track DIY projects that customers complete when purchasing power tools and accessories. Knowing the type of projects that your customers are undertaking enables you to offer additional sales and upsell opportunities. It helps you anticipate your customers' needs, so that you always have the right products in the market.
Furthermore, transaction data allows you to spot trends in the market and adjust your production cycles accordingly. power tools cheap could, for instance, use this data to track fluctuations in your retail partners' and brand's market shares. This will allow you to align your product strategies with consumer preferences. In the same way, you can utilize POS data to improve inventory levels and reduce the chance of overstocking. It can also be used to determine the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a lucrative complex market that requires substantial sales and marketing efforts to stay competitive. In the past, gaining a competitive advantage in this market was accomplished by establishing prices or positioning of products. However, these strategies are not effective in today's world of omnichannels where information is easily available to be shared.
Retailers who provide a high level of service are better able to retain customers and develop 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. The department was initially home to a variety of brands. However when he spoke to contractors, he noticed that they were loyal to their favorite brand.
To make a mark in their customers, Karch and his team first ask their customers what they'd like to achieve with the tool before showing them what they have available. This gives them the confidence to recommend the best tool for the job and builds trust with the customer. Customers who are familiar with their product are less likely to blame the retailer for a malfunction of a tool on the job.
Tip 7: Become a guru in customer service
The power tool market has become a highly competitive category for retailers of hardware. Those who are successful in this area tend to be more committed to a single brand than to carry a variety of brands. The amount of space a retailer must dedicate to this category could be a factor in how many brands it can carry.
When customers go in to purchase a power tool they may need assistance selecting a product. If they're replacing an old model damaged or undertaking the task of renovating, customers need expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are trained to ask questions that can result in an offer. They begin by asking questions about what the buyer is planning to use the tool for, he says. "That's the way to determine what kind of tool they need," he says. Then, they inquire about the customer's experience with various types of projects and the project.
Tip 8: Make an End of Warranty
The warranties of the manufacturers of power tools differ greatly. Certain manufacturers offer a full warranty, whereas others offer more limited warranties or do not cover certain tools. It's crucial for retailers to be aware of the distinctions before buying, since customers will purchase tools from firms that provide them with a warranty.
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 repair shop on site that repairs 50 different types of tools. He has learned that many of his contractor clients are loyal to their brands. So, he chooses to carry a limited number of brands instead of trying to carry a variety of products.
He also likes that his employees have the opportunity to get one-on-one time with vendors to discuss new products and give feedback. This kind of interaction is essential because it helps to create trust between the retailer and customers. Having good relationships with suppliers can even result in discounts on future purchases.