Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and users. Despite a slowdown in 2021 due to the COVID-19 pandemic demand remains close to or at levels prior to the pandemic.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is not far behind. Both are competing with power tools manufactured in China.
Tip 1: Create an Efficacious Brand Commitment
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term sale requires a lot back-and forth communication and detailed product knowledge. This kind of communication isn't suitable for emotional marketing strategies.
However, industrial tool manufacturing companies must rethink their approach to marketing. The digital age has accelerated past traditional manufacturers who rely on a small group of distributors and retailers for sales.
Brand commitment is a key element in the sale of power tools. When a customer is loyal to a particular brand, they will be less prone to messages from competitors. Power Tools Online are also more likely to purchase the client's products again and to recommend them to friends and family.
You require a well-planned strategy to have an impact on the American market. This includes adapting your tools to meet local needs and positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. In this way, you can be confident that your power tools will conform to the laws of the country and standards.
Tip 2: Know Your Products
Retailers should be familiar with the products they offer particularly in a market which places a great value on product quality. This will help them make informed choices about what they offer their customers. This knowledge could make the difference between making a good or bad sale.
For instance, knowing that a tool is best suited to a particular project can help you match your customer with the right tool for their needs. This will allow you to build trust and loyalty with your customers. It will also give you the confidence that you're providing the complete solution.
Also, knowing the latest trends in DIY culture can help you better understand what your customers want. As an example increasing numbers of homeowners are completing home renovation projects requiring the use of power tool. This could lead to an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, while Ryobi and Craftsman brands have seen their share decline 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 the broken one or tackle a new project. Both present 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 purchases of power tools resulted from an anticipated replacement. These customers typically require additional accessories or need to upgrade to higher performing models.
No matter if your customer is an experienced DIYer or is new to the hobby, they will likely require replacement of their power tools' carbon brushes drive belts, drive belts, and power cords with time. Being on top of these important items will help your customer make the most of their investment.
Technicians consider three key items when buying power tools: application, how it will be powered and safety. These aspects allow technicians to make informed choices when selecting the appropriate tools for their maintenance and repair tasks. This helps them maximize the effectiveness of their tool and reduce the cost of owning it.
Tip 4: Continue to Keep Up With Technology
For instance, the latest power tools feature smart technology that improves the user experience and sets them apart from competitors that still rely on old battery technology. Wholesalers of B2B who stock and sell these tools can boost sales by targeting professional and tech-savvy contractors.
Karch's business, which has more than 30 years of experience and a 12,000 square feet department for tools is a testimony to the importance of staying up-to-date with the latest technology. He states that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or ten years, but now they're changing them every year."
In addition to taking advantage of the modern technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are crucial for many contractors working in the field who utilize the tools for a lengthy period of time. The power tools industry is divided into professional and consumer groups and this means that the biggest players are always working on improving their designs and developing new features that will appeal to more people.
Tip 5: Create a point of Sale
The landscape of e-commerce has transformed the market for power tools. Modern methods for data collection have enabled professionals in the field to get an entire perspective of market trends which allows them to design marketing and inventory strategies more efficiently.
By utilizing information from the point of sale (POS), you can track DIY projects your customers are completing when purchasing power tools and other accessories. Knowing what projects your customers are working on permits you to offer upsells and additional products. It helps you anticipate your customers' needs to ensure that you have the appropriate products on the market.
Moreover, transaction data enables you to detect trends in the market and adjust production cycles accordingly. For instance, you can use this data to monitor changes in your brand's and market share of retail partners and help you align your product strategies with consumer preferences. Additionally, you can make use of POS data to optimize levels of inventory and decrease the chance of overstocking. It can also assist you to assess the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a lucrative, complex market that requires significant sales and marketing efforts to remain competitive. The traditional methods to gain an advantage in this market have been through pricing or product positioning--but these strategies are no longer effective in the omnichannel world of today where information is distributed so quickly.
Retailers who focus on 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. His department initially featured various brands. However when he spoke to contractors, he discovered that they were loyal to their preferred brand.
Karch and his team ask their customers what they would like to do with a tool before showing them the options. This gives them the confidence to recommend the appropriate tool for a job, and it builds trust with customers. Customers who are familiar with their product well are less likely to blame their supplier for a malfunctioning tool on the job.
Tip 7: Become a guru in customer service
The power tool market has become a highly competitive category for hardware retailers. Those who are successful in this category tends to be more loyal to a single brand than to carry a variety of brands. The amount of space that a retailer is able to devote to a specific category could determine the number of brands they can carry.
When customers visit a store to purchase power tools they may need assistance selecting a product. Sales associates can offer professional advice to customers looking to replace a broken device or completing an upgrade project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions to make the sale. They begin by asking what the customer is planning to use the tool according to him. "That's the best way to decide what kind of tool they require," he says. Then they ask about the experience of the customer with various types of projects and the project.
Tip 8: Be sure to make mention of your warranty
Power tool manufacturers vary greatly in their warranty policies. Some manufacturers offer a comprehensive warranty, whereas others offer more limited warranties or do not cover certain tools. Before making a purchase it is essential that retailers understand the differences. Customers will only buy tools from companies who 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 types of tools. He has discovered over time that a lot of his customers who are contractors are loyal to their brands, which is why he prefers to focus on only a few brands rather than trying to offer a variety of products.
He also appreciates that his employees have the ability to meet with vendors one-on-1 to discuss new products and give feedback. This kind of interaction is essential because it helps to build trust between the store and the customers. Building strong relationships with suppliers may lead to discounts on future purchases.