Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both consumers and professionals. The demand for power tools is at or near pre-pandemic levels despite a slowdown owing to the COVID-19 outbreak in 2021.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's follows closely. Both are competing against power tools made in China.
Tip 1: Be committed to a brand
Many industrial product manufacturers place more emphasis on sales and marketing. This is because a long-term sale requires a lot back-and forth communication and in-depth knowledge of the product. This kind of communication isn't suitable for emotional marketing strategies.
However, industrial tool manufacturing companies must rethink their marketing strategy. The digital age has outpaced traditional manufacturing companies that rely on a few retailers and distributors to sell their products.
Brand commitment is a key factor in power tool sales. If a client is loyal to a brand they are less prone to the messages of competitors. They are also more likely to purchase the product of the customer again and to recommend them to others.
To have a positive impact on the United States market, you need to have a well-planned strategy. This means adapting your tools to local needs and positioning your brand in a manner that is competitive and leveraging marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. By doing so you can be sure that your power tools will comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
In a marketplace where quality of the product is so important, retailers should know the products they sell. This will allow them to make informed decisions about what they are selling. This information can make the difference between a good sale and a bad one.
For example knowing that a particular tool is best suited to the particular task will allow you to match your customer with the right tool to meet their requirements. This will allow you to build trust and loyalty with your customers. It will also give you the confidence that you're offering a complete solution.
Understanding who makes the best power tools can also help you better understand the needs of your customers. For instance increasing numbers of homeowners are completing home renovation projects requiring the use of power tool. This can lead a spike in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. However the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace an old one or tackle the new project. Both present opportunities for upsells and additional 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 an anticipated replacement. The customers might require additional accessories, or upgrade to a more powerful model.
Whether your customer is an experienced DIYer or new to the hobby, they will likely require replacing their carbon brushes for power tools as well as drive belts and power cords as time goes by. These essentials will ensure that your customer gets the most from their investment.
Technicians consider three key items when buying power tools applications, how it will be powered and safety. These factors aid technicians in making informed decisions about the best tools to use for their maintenance and repairs. This helps them improve the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Continue to Keep Up With Technology
The most modern power tools, for example they feature smart technology that enhances user experience and differentiates them from those who depend on older battery technology. Wholesalers of B2B that carry and sell these devices can increase sales by focusing on professionals and contractors who are technologically advanced.
Karch's company, which has more than 30 years of experience and a 12,000 square feet department for tools, is a testament to the importance of staying up-to-date with the latest technology. "Manufactures are constantly adjusting the design of their products," Karch says. "They used to keep their designs for five or ten years, but now they're changing them every year."
In addition to embracing modern technologies, B2B wholesalers should also concentrate on improving their existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can decrease fatigue due to long-term use. These features are crucial for a large number of professional contractors who need to use the tools for long durations. The industry of power tools is divided into professional and consumer groups, which means that major players are always working on improving their designs and developing new features to appeal to an even larger audience.
Tip 5: Create a Point of Sale
The e-commerce landscape has transformed the power tools market. Modern methods for data collection allow business professionals to get a holistic view of market trends which allows them to design marketing and inventory strategies more effectively.
Point of sale (POS) data, for instance, allows you to monitor the kinds of projects that DIYers are working on when purchasing tools and accessories. Knowing the types of projects your customers are working on enables you to offer additional sales and opportunities for upselling. It helps you anticipate your customers' needs to ensure that you have the appropriate products on hand.
Additionally, transaction data can help you to detect trends in the market and adjust production cycles in line with. For instance, you can make use of this information to track fluctuations in your retail partners' and brand's market share. This will allow you to align your product strategies to the preferences of consumers. Additionally, you can make use of POS data to optimize inventory levels and reduce the risk of stocking up. It can also help you to assess the effectiveness of promotional campaigns.
Tip 6: Make a Point of Service
Power tools are a complicated market that is high-profit and requires a substantial amount marketing and sales effort to remain in the game. In the past, getting a competitive advantage in this market was achieved by pricing or positioning products. But these methods are not effective in today's omnichannel environment where information is readily shared.
Retailers who make a point of providing excellent service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin has a 12,000 square-foot power tool department. The department was initially home to several brands. However when he spoke to contractors, he noticed that they were loyal to their favorite brand.
Karch and his team ask their customers what they intend to do with the tool before showing them the options. This gives them 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 to blame the retailer for the failure of a device on the job.
Tip 7: Create a Point of Customer Service
Power tool retailers are in an extremely competitive market. The retailers that have had success in this area tend to make a firm commitment to a brand rather than merely carrying a sampling of manufacturers. The amount of space retailers can dedicate to a specific category could affect the number of brands they are able to carry.
Customers usually require assistance when they go in to purchase a power device. When they're replacing an old one that is broken or tackling the task of renovating clients require expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is educated to ask questions that could lead to a sale. He says they start by asking the buyer what he or she plans to use the product. "That's the best way to determine the type of tool they need," he says. Then they ask about the customer's experience with different types projects and the project.
Tip 8: Make sure to mention your warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are completely complete, while others aren't as generous or refuse to cover certain parts of the tool at all. It's crucial for retailers to know these differences before buying, since customers will purchase tools from companies that back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool shop and repair shop on site that repairs 50 different brands of tools. He has realized over time that a lot of his customers who are contractors are brand loyal, so the company prefers to stick to the most popular brands rather than trying to offer a wide range of products.
He also likes that his employees have one-on-one meetings with vendors to discuss new products and share feedback. This type of personal interaction is essential because it helps build trust between the customers and employees. who makes the best power tools with suppliers can even result in discounts for future purchases.