Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and personal use. The demand for power tools remains at or close to pre-pandemic levels despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
In terms of outlet dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's follows closely. But both companies are facing stiff competition from China-manufactured power tools.
Tip 1: Be committed to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term purchase requires a lot back-and forth communication and a thorough understanding of the product. This kind of communication does not allow for emotional consumer marketing tactics.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital world has raced past traditional companies that rely on a small group of retailers and distributors to sell their products.
A key to power tool sales is brand commitment. If a client is loyal to a brand, they will be less prone to the messages of competitors. In addition, they are more likely to purchase the item of the customer repeatedly and recommend it to others.
You require a well-planned strategy to make an impact on the US market. This involves adapting tools to local requirements and positioning your brand in a competitive manner, and making use of distribution and marketing platforms channels. It is also crucial to collaborate with local authorities as well as industry associations and experts. In this way, you can be confident that your power tools will be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
In a marketplace where product quality is important, retailers should know the products they sell. This will help them make informed choices about the products they offer. This knowledge could make the difference between making a good or a poor sale.
Knowing that a certain tool is ideal for a project will aid in matching the right tool to the requirements of your customer. You'll earn trust and loyalty with your customers. This will ensure that you're providing a complete service.
Understanding DIY culture trends can also help you better understand the needs of your customers. For instance, a rising number of homeowners are taking on home renovation projects that require power tools. This can result in an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have seen their share decrease year-over-year. Despite this, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace an old one or 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 power tool purchases were the result of an anticipated replacement. These customers typically require additional accessories or require upgrading to better quality models.
If your customer is a seasoned DIYer or just starting out in the hobby, they will likely require replacement of their power tools' carbon brushes drive belts, drive belts, and power cords as time goes by. Being on top of these important items will help your customer get the most value from their investment.
When purchasing power tools, technicians consider three aspects: the tool's application, the power source and safety. These factors allow technicians to make informed choices when selecting the right tools for their maintenance and repair work. This will help them maximize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Stay current with the latest technology
For instance, the most recent power tools offer advanced technology that enhances the user experience and differentiates them from other brands that still depend on old-fashioned battery technology. B2B wholesalers that offer and sell these tools can increase sales by targeting tech-forward contractors and professionals.
For Karch the company, which has more than three years of experience and a 12,000 square-foot tool department, keeping up with the latest technologies is crucial. 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 each year."
B2B wholesalers should not just take advantage of the latest technologies, but also upgrade their existing models. By adding lightweight materials and adjustable handles, wholesalers can reduce fatigue due to prolonged use. These features are crucial for many contractors working in the field who utilize the tools over a long period of time. The market for power tools is divided into professional and consumer groups, which means that major players are always working on improving their designs and developing new features to reach more people.
Tip 5: Create a Point of Sale
The ecommerce landscape has changed the market for power tools. The advancements in data collection techniques have enabled business professionals to get an overall perspective of market trends which allows them to design marketing and inventory strategies more effectively.
Point of sale (POS) information for instance, allows you to track the types of projects that DIYers are working on when they purchase power tools and other accessories. Knowing the kinds of projects your customers are undertaking enables you to provide additional sales and opportunities for upselling. It also helps you anticipate the requirements of your customers, ensuring that you have the appropriate products on hand.
You can also utilize transaction data to spot trends in the market, and then adjust production cycles in line with these trends. You could, for instance, use this data to track fluctuations in your brand's and retail partners' market shares. This allows you to align your product strategies with consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of stocking up. It can also be used to assess the effectiveness of promotional campaigns.
Tip 6: Create a Point of Service
Power tools is a lucrative, complex market that requires substantial marketing and sales efforts to stay competitive. In the past, getting a competitive advantage in this market was accomplished by establishing prices or positioning of products. However, these tactics are not as effective in the current world of omnichannels where information is readily communicated.
Retailers who make a point of providing excellent 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. At first, the department offered various brands, but when he began listening to contractor customers, he discovered that the majority were loyal to a particular brand.
Karch and his staff members ask their customers what they plan to do with a tool prior to showing them the alternatives. power tools buy online gives them confidence to recommend the right tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely to blame the store for the failure of a tool on the job.
Tip 7: Create a Point of Customer Service
Power tool retailers are facing an extremely competitive market. People who have had the most success in this market tend to have a strong commitment to a particular brand rather than merely carrying a selection of manufacturers. The amount of space a retailer is able to devote to a specific category could affect the number of brands they can carry.
When customers come in to purchase an electric tool and require assistance, they usually need help choosing a product. Sales associates can offer expert advice to customers seeking to replace a damaged tool or are planning a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is educated to ask the right questions to help make a sale. They start by asking what the buyer is planning to use the tool according to him. "That's the best way to determine the type of tool they need," he says. The next step is to inquire about the project and the level of experience the client has with various types of projects.
Tip 8: Create a Point of Warranty
The makers of power tools vary widely in their warranty policies. Some are fully complete, while others aren't as generous or do not cover certain components of the equipment. It is crucial for retailers to understand the differences prior to purchasing, as buyers will purchase tools from companies that offer warranties.
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 in-house that handles 50 lines of tools. He has learned through the years that a majority of his customers who are contractors are brand loyal, so he focuses on a limited number of brands rather than trying to offer a wide range of products.
He also appreciates that his employees have the opportunity to meet with vendors one-on-one to discuss new products and share feedback. This personal contact is important because it helps establish trust between the store and its customers. Good relationships with suppliers could even result in discounts for future purchases.