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.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely behind. Both are however facing stiff competition from China-manufactured power tools.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products put an emphasis 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 doesn't lend itself to emotional consumer marketing strategies.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital age has accelerated past traditional companies that rely on a small group of retailers and distributors to sell their products.
Brand commitment is a key element in the sale of power tools. If a client is loyal to a brand and is loyal to a brand, they are less prone to messages from competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others.
You need a well-planned plan to be successful in the US market. This means adapting your tools to meet local requirements and positioning your brand in a competitive way, and making use of distribution channels and marketing platforms. It is also crucial to work with local authorities as well as industry associations and experts. When you do this you can be sure that your power tools comply with the country's regulations and standards.
Tip 2: Know 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 choices about the products they offer. This information can be the difference between a successful or bad sale.
For instance, knowing that a tool is ideal for the particular task will help you connect your customer with the best tool to meet their needs. This will aid in building trust and loyalty with your customers. It will also give you the assurance that you're offering a complete solution.
Understanding DIY culture trends can also aid in understanding your customers' requirements. For instance increasing numbers of homeowners are completing home improvement projects that require 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 decrease year-over-year. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace the broken one or tackle an upcoming project. top power tools provide 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 power tool purchases resulted from an anticipated replacement. These customers may require additional accessories or upgrade to a better-performing model.
Whether your customer has experience in DIY or is new to the hobby they will need to replace their carbon brushes, drive cords, and power cords of their power tools as time passes. Keeping up with these essentials will help your customer get the most out of their investment.
When purchasing power tools, technicians take into consideration three factors: the application, the power source and safety. These aspects help technicians make informed choices when it comes to selecting the right tools for their repair and maintenance work. This allows them to maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Keep Keeping Up with Technology
The most recent power tools, for example are equipped with smart technology that enhances user experience and differentiates them from rivals who depend on older battery technology. Wholesalers of B2B that carry 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 states that manufacturers are constantly changing their designs for their products. "They were able to hold their designs for five or 10 years, but now they alter them every year."
B2B wholesalers need to not only take advantage of the latest technologies, but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the strain caused by long use. These features are essential to many professional contractors who use the tools for a lengthy period of time. The market for power tools is split into professional and consumer groups. This means that the major players are constantly striving to improve their designs and come up with new features in order to reach a wider market.
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 and business professionals can gain a better understanding of the market. This helps them develop more effective inventory and marketing strategies.
Using data from the point of sale (POS) You can track DIY projects that customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on allows you to upsell and offer add-ons. It helps you anticipate the needs of your customers, so that you always have the right products in your shelves.
You can also use transaction data to identify market trends, and adjust production cycles in line with these trends. For instance, you can utilize this data to monitor fluctuations of your brand's and retail partners market shares. This allows you to align product strategies to consumer preferences. Similarly, you can use POS data to improve inventory levels and reduce the risk of overstocking. It is also used to assess the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
Power tools are a complicated market with high profits that requires a substantial amount of marketing and sales efforts to stay competitive. In the past, gaining an advantage in this market was accomplished through pricing or positioning products. But these methods are not effective in today's world of omnichannels where information is readily available to be shared.
Retailers who provide a high level 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, Wisconsin has a 12,000 square-foot department for power tools. Initially, his department featured a sampling of brands, but when he began to listen to the customers of contractors, he discovered that the majority were brand loyal.
To be successful in their business, Karch and his team first ask 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 creates trust with customers. Customers who are familiar with their product are less likely than others to blame the retailer for the failure of a tool for the job.
Tip 7: Be a customer service guru
The power tool market has become a very competitive area for retailers of hardware. The retailers that have had success in this area tend to have a strong commitment to a particular brand instead of simply carrying a selection of manufacturers. The amount of space that retailers can dedicate to a particular category can influence how many brands they carry.
When customers go in to purchase an electric tool they may need assistance selecting the right product. If they're replacing an old one damaged or undertaking a renovation project clients require expert advice from sales associates.
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 an offer. They begin by asking questions about what the customer plans to use the tool for according to him. "That's the primary factor in deciding the type of tool to sell them," he adds. The next step is to inquire about the project and the level of experience the customer has with various types of projects.
Tip 8: Create an End of Warranty
The warranty policies of the manufacturers of power tools are quite different. Some are fully comprehensive, while others aren't as generous or refuse to cover certain parts of the tools at all. It's important for retailers to know these differences before purchasing, as buyers 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 a 12,000 square foot power tool department as well as repair shop on site that repairs 50 different types of tools. He has learned that many of his contractor clients are loyal to a particular brand. So, he chooses to carry a limited number of brands rather than carry samples of different products.
He is also pleased that his employees are able to meet with vendors one-on-1 to discuss new products and exchange feedback. This type of personal interaction is essential because it helps build trust between the store's customers and employees. Good relationships with suppliers may even lead to discounts for future purchases.