Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumer and professional use. Despite the fact that 2021 will see a slowdown due to the COVID-19 virus, demand remains near or at pre-pandemic levels.
Home Depot is the leader in sales of power tools by dollar share. Lowe's follows closely behind. However, both are confronting stiff competition from Chinese-made power tools.
Tip 1: Commit to a brand
Many industrial product manufacturers place a higher priority on sales than marketing. This is because a long-term sales requires a lot of back-and-forth communication and a thorough understanding of the product. This kind of communication isn't ideal for marketing that is based on emotion.
Nevertheless, industrial tools manufacturing companies must rethink their marketing strategy. The digital age has accelerated over traditional manufacturers who depend on a small circle of distributors and retailers for sales.
Brand loyalty is a major factor in power tool sales. When a buyer is committed to a certain 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 make an impact on the US 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 as well as associations and experts is also essential. In this way you can be sure that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
Retailers should be familiar with the products they sell, especially in a market which places a great importance on the quality of products. This will enable them to make informed choices about the products they offer their customers. This knowledge can also make the difference between a good sale and a poor one.
For instance, knowing that a tool is suitable for specific projects will help you connect your customer with the right tool to meet their requirements. This will help you build trust and loyalty with your customers. This will help you feel confident that you are offering a complete service.
In addition, understanding the trends in DIY culture can help you better know what your customers are looking for. As an example the increasing number of homeowners are taking on home improvement projects that require the use of power tools. This could lead to a spike in the sale of these tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16%. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace a broken one or to tackle the new project. Both offer 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 were the result of an anticipated replacement. These customers typically require additional accessories, or need to upgrade to higher performance models.
Whether your customer is an experienced DIYer or new to the hobby, they'll likely need to replace their carbon brushes for power tools, drive belts and power cords with time. Being on top of these important items will help your customer get the most value from their investment.
Technicians must consider three important aspects when buying power tools applications, how it will be powered and safety. These aspects allow technicians to make informed decisions when choosing the appropriate tools for their repair and maintenance work. This allows them to optimize the efficiency of their tools as well as lower the cost of ownership.
top power tools : Keep current with the latest technology
For instance, the latest power tools feature intelligent technology that enhances the user experience and sets them apart from other brands that still rely on older battery technology. Wholesalers of B2B who stock and sell these tools can boost sales by targeting professional and tech-savvy contractors.
For Karch the company, which has more than three years of experience and a 2,000-square-foot department for tools, staying up with new technologies is essential. He states that manufacturers are constantly changing their product designs. "They used hold their designs for five or ten years, but now they are changing them each year."
In addition to taking advantage of the latest technologies, B2B wholesalers should also focus on improving existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are crucial for many contractors working in the field who utilize the tools for a long 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 to reach more people.
Tip 5: Create a point of Sales
The e-commerce market has changed the market for power tools. The advancements in data collection techniques allow business professionals to get a holistic overview of market trends which allows them to design marketing and inventory strategies more efficiently.
Point of sale (POS) information for instance, allows you to track the types of projects DIYers undertake when purchasing tools and accessories. Knowing the type of projects your customers are working on enables you to offer additional sales and opportunities for upselling. It helps you anticipate the needs of your customers to ensure that you have the appropriate products on hand.
You can also utilize transaction data to spot trends in the market and adjust production cycles in line with these trends. For instance, you could make use of this information to track fluctuations in your brand and the market share of your retail partners which allows you to align your product strategies with consumer preferences. POS data can also be used to improve inventory levels, which reduces the risk of stocking up. It can also be used to determine 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 stay competitive. In the past, gaining an advantage in this market was achieved by pricing or positioning products. But these methods are no longer effective in today's multichannel environment, where information is easily communicated.
Retailers who concentrate 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. Initially, his department featured a sampling of brands, but when he began to listen to the customers of contractors and found that the majority were brand loyal.
To make a mark in their customers' business, Karch and his team first ask their customers what they'd like to achieve with the tool, then show them the options available. This gives them the 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 during the course of work.
Tip 7: Become a customer service guru
Power tool retailers face a fiercely competitive market. People who have had the most success in this market tend to have a strong commitment to a brand rather than simply carrying a selection of manufacturers. The amount of space that a retailer needs to devote to this category can also affect how many brands it can carry.
Customers frequently require assistance when they visit to purchase a power tool. When they're replacing an old tool that is broken or tackling the task of renovating clients require expert guidance 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 help make the sale. He says they begin by asking the buyer what they intend to use the product. "That's how you determine what kind of tool they need," he says. Next, they ask about the project and the level of experience the client has with different types of projects.
Tip 8: Make an End of Warranty
The makers of power tools vary widely in their warranty policies. Some companies offer a complete warranty, while others offer a limited warranty or do not offer warranties for certain tools. Before purchasing a tool, it's important that retailers know the differences. Customers will only buy tools from companies who 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 within the premises that can handle 50 kinds of tools. He has realized through the years that a majority of his contractors are brand loyal, so the company prefers to stick to a limited number of brands rather than offer a wide range of products.
He also appreciates that his employees have the ability to meet with vendors one-on-1 to discuss new products and exchange feedback. This personal contact is crucial since it builds trust between the customers and employees. sneak a peek here with suppliers could even result in discounts for future purchases.