Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains close to or at pre-pandemic levels.
Home Depot is the leader in sales of power tools by dollar share. Lowe's is close behind. Both are competing against power tools made in China.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products place more emphasis on sales than marketing. This is because a long-term purchase requires a lot of back-and-forth communication and in-depth knowledge of the product. This kind of communication does not allow for emotional consumer marketing strategies.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital age has overtaken traditional manufacturers who depend on a few retailers and distributors to sell their products.
One of the most important factors in selling power tools is brand commitment. When a buyer is committed to a certain brand they are less receptive to competitors' communications. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others.
To be successful on the United States market, you need to have a well-planned strategy. This includes adapting your tools to local needs and positioning your brand in a way that is competitive, and using marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also crucial. When you do this, you can be confident that your power tools 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 must be aware of the products they sell. This will enable them to make informed decisions about what they offer. This information can be the difference between making a good or a bad purchase.
For instance, knowing that a tool is ideal for a particular project can help you connect your customer with the right tool for their needs. This will aid in building trust and loyalty with your customers. This will help you feel confident that you are offering the complete service.
Understanding DIY culture trends can help you better understand the needs of your customers. For instance, more homeowners are undertaking home renovations that require the use of power tools. This can result in a surge in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason that a buyer makes a tool purchase is to replace one that is been damaged or broken, or to embark on an entirely new project. Both of these can be used to increase sales and additional 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 were the result of a planned replacement. The customers might require additional accessories or upgrade to a more powerful model.
No matter if your customer is a seasoned DIYer or just starting out in the hobby, they'll likely need to replace their carbon brushes for power tools, drive belts and power cords as time goes by. Being on top of these important items will allow your customer to get the most out of their investment.
Technicians take into consideration three main aspects when making power tool purchases applications, how it will be powered and safety. These factors allow technicians to make informed decisions when choosing the appropriate tools for their maintenance and repair tasks. This helps them maximize the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Keep Keeping Up with Technology
The latest power tools, for example are equipped with smart technology that improves the user's experience and differentiates them from those who depend on older battery technology. B2B wholesalers that stock and sell these devices can increase sales by targeting tech-forward contractors and professionals.
Karch's company, which has over 30 years of experience, and a 12,000 square feet tooling department, is a testament to the importance of staying current with the latest technologies. He says that manufacturers are constantly changing their product designs. "They used hold their designs for five or ten years, but now they change their designs every year."
B2B wholesalers should not just adopt the latest technology, but also improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the fatigue caused by prolonged use. These features are crucial for many professional contractors who use the tools over a long period of time. The power tool industry is divided into consumer and professional groups. This means that the major players are constantly striving to improve their designs and develop new features in order to reach a wider public.
Tip 5: Create a point of Sale
The landscape of e-commerce has transformed the market for power tools. Data collection techniques have been improved, allowing business professionals to gain a better understanding of the market. This allows them to create more effective marketing and inventory strategies.
Using data from the point of sale (POS) You can track DIY projects your customers undertake when buying power tools and accessories. Knowing the types of projects that your customers are working on allows you to provide additional sales and upsell opportunities. It also helps you anticipate the requirements of your clients and ensure that you have the correct products available.
You can also utilize transaction data to identify market trends, and adjust production cycles in line with these trends. For instance, you could make use of this information to track changes in your brand's and the market share of your retail partners which allows you to match your product strategies to consumer preferences. Similarly, you can use POS data to improve inventory levels and reduce the chance of overstocking. It can also help you to evaluate the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a complex market with high profits that requires a significant amount of sales and marketing effort to remain competitive. In the past, getting an advantage in this market was accomplished by establishing prices or positioning of products. However, these tactics are not effective in today's multichannel environment, where information is readily communicated.
Retailers who provide a high level of providing excellent service are more likely to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin has a 12,000 square-foot department for power tools. In the beginning, his store featured several brands, but as he began listening to contractor customers and found that the majority were brand loyal.
To be successful in their customers, Karch and his team first ask their customers what they want to do with the tool, then show them what they have available. This gives them the confidence to recommend the appropriate tool for the job and also builds trust with customers. Customers who know their product well are less likely to blame their supplier for a tool failure on the job.
Tip 7: Be a customer service guru
Power tool retailers are in a fiercely competitive market. People who have had success in this area tend to make a firm commitment to a brand instead of simply carrying a sampling of manufacturers. power tool stores near me of space a retailer is able to devote to a particular category can influence how many brands they can carry.
Customers often need assistance when they go in to purchase a power device. Sales associates can provide professional advice to customers seeking to replace a damaged tool or undertaking an upgrade project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are trained to ask the right questions to help make the sale. They start by asking what the customer plans to use the tool, he says. "That's the key to determining the kind of tool to market them," he adds. Then, they inquire about the customer's experience with different types of projects as well as the project.
Tip 8: Make a Point of Warranty
The warranty policies of the manufacturers of power tools are quite different. Some are completely complete, while others are stingy or even refuse to cover certain parts of the tools at all. It is crucial for retailers to understand these differences before purchasing, as buyers will purchase tools from firms that provide them with a warranty.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tools department as well as an repair shop in-house that handles 50 lines 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 rather than carry a variety of products.
He also likes the fact that his employees get one-on-one time with vendors to discuss new products and give feedback. This type of personal interaction is essential since it builds trust between the store's clients and employees. Building strong relationships with suppliers could result in discounts on future purchases.