Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains near or at pre-pandemic levels.
Home Depot is the leader in power tool sales by dollar share. Lowe's follows closely behind. However, both are being pushed by China-made power tools.
Tip 1: Create an Efficacious Brand Commitment
Many manufacturers of industrial products place a higher priority on sales than marketing. This is because a long-term purchase requires a lot of back and forth communication and detailed product knowledge. This kind of communication does not lend itself to emotional consumer marketing techniques.
But, companies that produce industrial tools need to rethink their marketing strategy. The digital age has outpaced traditional manufacturing companies that rely on a small group of retailers and distributors for sales.
Brand commitment is a key element in the sale of power tools. When a customer is committed to a specific brand, they are less sensitive to the messages of competitors. They are also more likely to buy the product of the customer again and to recommend them to friends and family.
You require a well-planned strategy to make an impact on the American market. This means adapting tools to local requirements, positioning brands in a competitive manner, and leveraging marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also crucial. When you do this you can be sure that the power tools you purchase comply with the country's regulations and standards.
Tip 2: Know Your Products
Retailers should be familiar with the products they sell especially in a marketplace that places such a high value on the quality of the product. This will allow them to make informed choices about the products they offer their customers. This knowledge can make the difference between a successful or a poor sale.
For instance knowing that a particular tool is suitable for the particular task can help you connect your customer with the right tool to meet their requirements. You'll earn trust and a sense of loyalty among your customers. It will also give you the confidence that you're offering an entire solution.
Also, knowing the latest trends in DIY culture can help you better know what your customers are looking for. For instance increasing numbers of homeowners are completing home renovation projects requiring the use of power tools. This could lead to an increase in the sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16%. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this, 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 the new project. Both provide the possibility of upselling or adding on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all purchases for power tools are the result of planned replacements. Customers may require additional accessories or upgrade to a better-performing model.
No matter if your customer is a seasoned DIYer or new to the hobby, they will likely need to replace 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 out of their investment.
When buying power tools, technicians take into consideration three factors: the application the power source, and safety. These aspects help technicians make informed decisions about the best tools to use in their repairs and maintenance work. This allows them to maximize the effectiveness of their tool and reduce the expense of owning it.
Tip 4: Keep up-to-date with the latest technologies.
The most recent power tools, for example, offer smart technology which improves the user's experience and sets them aside from rivals who depend on older battery technology. B2B wholesalers who stock and sell these devices can increase sales by targeting professionals and contractors who are tech-savvy.
For Karch, whose business has more than three decades of experience and a 12,000 square-foot department for tools, staying up with the latest technologies is crucial. He states that manufacturers are constantly changing their designs for their products. "They used hold their designs for five or 10 years, but now they change them every year."
In addition to embracing most recent technologies, B2B wholesalers should also be looking to improve existing models. By incorporating lightweight materials and adjustable handles, wholesalers can reduce fatigue due to prolonged use. These features are crucial for a lot of professional contractors who need to make use of the tools for long periods. The industry of power tools is divided into professional and consumer groups which means that the major players are always working on improving their designs and developing new features that will appeal to a wider audience.
Tip 5: Create a Point of Sale
The online marketplace has changed the power tool market. Data collection methods have improved allowing business professionals to gain a better understanding of the market. This allows them to develop more effective marketing and inventory strategies.
Point of sale (POS) information, for instance, allows you to monitor the kinds of projects DIYers tackle when purchasing power tools and accessories. Knowing the kinds of projects that your customers are working on enables you to offer add-on sales and upsell opportunities. It also allows you to anticipate the needs of your customers, ensuring that you have the appropriate products available.
You can also use transaction data to identify trends in the market, and then adapt production cycles accordingly. For instance, you can make use of this information to track fluctuations in your brand's or the market share of your retail partners, enabling you to match your product strategies to consumer preferences. Additionally, you can make use of POS data to optimize inventory levels and reduce the chance of overstocking. It can also help you to assess the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a profitable complex market that requires significant marketing and sales efforts in order to remain competitive. The traditional methods to gain a strategic advantage in this market have been by positioning or pricing products. However, these methods are no longer effective in today's omnichannel marketplace in which information is dispersed in such a rapid manner.
Retailers who focus on service are more likely to keep customers and build 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. In the beginning, his store featured several brands, but when he listened to customers who were contractors, he learned that most were brand loyal.
Karch and his staff members ask their customers what they plan to do with the tool before presenting them with the options. This gives them confidence to recommend the most effective tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame their vendor for a tool failure on the job.
Tip 7: Be a guru in customer service
The power tool market has become a highly competitive category for hardware retailers. People who have had the most success in this market tend to make a firm commitment to a particular brand rather than merely carrying a sampling of manufacturers. The amount of space a retailer is able to devote to a particular category can influence how many brands they are able to carry.
Customers frequently require assistance when they visit to purchase a power device. If they're replacing an old one damaged or undertaking an upgrade project Customers need guidance from sales associates.
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 will result in an offer. They begin by asking what the buyer is planning to do with the tool, he says. "That's how you decide what kind of tool you need," he says. Then, they inquire about the project and the level of experience they have with different types of projects.
Tip 8: Be sure to make mention of your warranty
The warranties of the manufacturers of power tools are very different. Certain manufacturers offer a full warranty, whereas others offer a limited warranty or do not offer warranties for certain tools. Before making a purchase it's important that retailers know the differences. Customers will only buy tools from companies that guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department as well as an on-site repair shop that repairs 50 different types of tools. He has realized through the years that a majority of his contractors are loyal to their brands, which is why he focuses on the most popular brands rather than trying to offer a variety of products.
He also likes the fact that his employees can have one-on-one meetings with vendors to discuss new products and give feedback. This personal contact is important because it helps build trust between the store and the customers. Building strong relationships with suppliers may lead to discounts on future purchases.