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 virus, the demand is still at or near pre-pandemic levels.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's is close behind. Both are competing against power tools made in China.
Tip 1: Create an Engagement to Brands
Many industrial products manufacturers prioritize sales over marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication and detailed knowledge of the product. This type of communication is not ideal for marketing that is based on emotion.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital world has raced over traditional manufacturers who depend on a small group of retailers and distributors for sales.
Brand commitment is a key element in the sale of power tools. When a buyer is committed to a specific brand they are less receptive to competitors' communications. They are also more likely to buy the product of the customer again and to recommend them to others.
You require a well-planned strategy to have an impact on the US market. This means adjusting your tools to meet the local requirements, positioning your brand in a strategic way, and leveraging marketing channels and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. You can be sure that your power tool will meet the requirements and standards of the country if you follow these guidelines.
Tip 2: Know Your Products
In a market where quality of the product is so important, retailers must be aware of the products they offer. This will enable them to make informed decisions about the products they can offer their customers. This knowledge can make the difference between a successful or a poor sale.
For instance, knowing that a tool is ideal for specific projects will allow you to match your customer with the best tool to meet their requirements. This will allow you to build trust and loyalty with your customers. This will ensure that you are offering a complete service.
Understanding DIY culture trends can aid in understanding the needs of your customers. For instance, a rising number of homeowners are tackling home improvement projects that require power tools. This could lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power purchase is to replace one that has been damaged or broken, or to embark on an entirely new project. Both offer opportunities for upsells or add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of purchases for power tools were the result of an anticipated replacement. These customers typically require additional accessories, or require upgrading to better performance models.
No matter if your customer is an experienced DIYer or is new to the hobby, they will likely need to replace their power tools' carbon brushes, drive belts and power cords as time goes by. Making sure they are up to date with these essentials will help your customer get the most value from their investment.
Technicians must consider three important aspects when buying power tools the application, the way it will be used and safety. These aspects help technicians make informed decisions about the best tools to use in their repairs and maintenance tasks. This allows them to maximize the efficiency of their tools and lower the cost of owning it.
Tip 4: Stay current with the latest technology
The most recent power tools, for example, offer smart technology which enhances user experience and differentiates them from rivals who rely on old-fashioned battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by focusing on professional and tech-savvy contractors.
Karch's business, which has more than 30 years of experience, and a 12,000 square feet tooling department is a testament to the importance of keeping up-to-date with the latest technology. He says that manufacturers are constantly changing their product designs. "They were able to hold their designs for five or 10 years, but now they change their designs every year."
B2B wholesalers must not only embrace the latest technologies but also enhance their existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are essential for many professional contractors who use the tools for a long period of time. The industry of power tools is divided into consumer and professional groups, which means that major players are constantly improving their designs and introducing new features to reach more people.
Tip 5: Create a Point of Sale
The ecommerce landscape has changed the power tool market. Data collection techniques have improved, allowing business professionals to get a better understanding of the market. This allows them to develop more efficient inventory and marketing strategies.
Utilizing information from the point of sale (POS), you can track DIY projects your customers undertake when buying power tools and other accessories. Knowing what projects your customers are working on permits you to increase sales and provide add-ons. It allows you to anticipate the needs of your customers to ensure that you have the right products on your shelves.
Additionally, transaction data can help you to detect trends in the market and adjust your production cycles accordingly. For instance, you can utilize this data to track fluctuations in your retail partners' and brand's market share. This will allow you to align your strategy for product with consumer preferences. In the same way, you can utilize POS data to optimize inventory levels and reduce the chance of overstocking. It can also assist you to assess the effectiveness of promotional campaigns.
power tool shop : Be a good neighbor
Power tools are a tangled market that is high-profit and requires a substantial amount marketing and sales efforts to remain in the game. In the past a competitive advantage in this market was accomplished by pricing or positioning products. However, these tactics are not effective in today's omnichannel environment where information is easily shared.
Retailers who make a point 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 department for power tools. At first, the department offered various brands, but as he listened to customers who were contractors, he discovered that the majority were brand loyal.
Karch and his team ask their customers what they plan to do with a tool prior to showing them the alternatives. This gives them the confidence to recommend the best tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame the retailer for a malfunction of a device on the job.
Tip 7: Become a customer service guru
The market for power tools has become a highly competitive market for retailers of hardware. Those who have seen success in this category tend to have a strong commitment to a brand instead of simply carrying a sampling of manufacturers. The amount of space retailers can dedicate to a particular category can influence how many brands they carry.
When customers come in to purchase an electric tool, they often need help selecting a product. Sales associates can offer the best guidance to customers looking to replace a damaged tool or are planning the renovation of their home.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are trained to ask the right questions in order to make the sale. power tool shop begin by asking the customer what he or she plans to do with the product. "That's the best way to determine the type of tool they require," he says. Then, they inquire about the project and what level of experience the client has with different types of projects.
Tip 8: Be sure to mention your warranty
The warranties of power tool manufacturers are quite different. Some are fully comprehensive, while others are stingy, or do not cover certain components of the tools at all. It's crucial for retailers to know the differences prior to making a purchase, because customers will purchase tools from companies that back them up.
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 lines of tools. He has learned that many of his contractors are brand loyal. Therefore, he prefers to carry a select few brands rather than carry samples of different products.
He is also pleased that his employees are able to meet with vendors in person to discuss new products and share feedback. This type of personal interaction is crucial because it helps build trust between the store and the customers. Good relationships with suppliers may even result in discounts for future purchases.