Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains close to or at pre-pandemic levels.
In terms of outlet dollar share, Home Depot leads all outlets in power tool sales. Lowe's isn't far behind. However, both are confronting stiff competition from Chinese-made power tools.
Tip 1: Make an Engagement to Brands
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term sales requires a lot back-and forth communication and detailed product knowledge. This type of communication is not ideal for marketing that is based on emotion.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital age has overtaken traditional manufacturing companies that rely on a small group of distributors and retail outlets for sales.
The key to selling power tools is brand loyalty. When a buyer is adamant about a particular brand they are less receptive to the messages of competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others.
To have a positive impact to be successful in the United States market, you need to have an organized strategy. This includes adapting your tools to meet the local requirements and positioning your brand in a competitive manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities as well as associations and experts is also essential. By doing so, you can be confident that the power tools you purchase be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
Retailers must be aware of the products they sell, especially in a market that places such a high value on product quality. This will enable them to make informed choices about what they offer their customers. This information can make the difference between a good deal and a bad one.
Knowing that a certain tool is ideal for a specific project will aid in matching the right tool to your customer's needs. You will build trust and loyalty with your customers. This will help you feel confident that you're providing a complete service.
Understanding DIY culture trends can help you better understand the needs of your customers. For instance, a growing number of homeowners are tackling home renovation projects which require power tools. This can lead a spike in sales of power 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. However sales in stores and online are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace a broken one or to tackle a new project. Both offer opportunities for upsells or additional 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. These customers may require additional accessories, or upgrade to a better-performing model.
Whether your customer is an experienced DIYer or just starting out in the hobby, they'll likely require replacement of their power tools' carbon brushes, drive belts and power cords with time. These items will ensure your customer gets the most from their investment.
Technicians take into consideration three main aspects when purchasing power tools the application, the way it will be powered and safety. These factors help technicians make informed choices about the best tools to use in their repairs and maintenance tasks. This enables them to maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Always Keep Up With Technology
The latest power tools, for example, offer smart technology which improves the user's experience and sets them apart from rivals who depend on older battery technology. Wholesalers in B2B who carry and sell these devices can increase sales by focusing on tech savvy contractors and professionals.
Karch's company, which has more than 30 years of experience, and a 12,000 square foot tooling department, is a testament to the importance of keeping up-to-date with the latest technology. "Manufactures are constantly adjusting the design of their products" he says. "They used hold their designs for 5 or 10 years but now they change them each year."
In addition to taking advantage of the modern technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are essential for professionals who employ the tools over a long period of time. The power tool industry is split into professional and consumer groups. what are the best power tools means that the biggest players are constantly striving to improve their designs and come up with new features to reach a wider public.
Tip 5: Create a Point of Sales
The online marketplace has transformed the power tools market. Recommended Internet page have been improved, allowing business professionals to gain a better understanding the market. This allows them to develop more effective marketing and inventory strategies.
Point of sale (POS) information, for instance, allows you to keep track of the types of projects DIYers undertake when they purchase power tools and other accessories. Knowing what projects your customers are working on enables you to upsell and offer add-ons. It also allows you to anticipate the requirements of your customers and ensure that you have the correct products on hand.
You can also use transaction data to identify market trends, and adjust production cycles in line with these trends. For example, you can utilize this information to track changes in your brand's and market share of retail partners and help you match your product strategies to consumer preferences. POS data can also be used to improve inventory levels, which reduces the chance of overstocking. It can also assist you to evaluate the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools are a complex, high-profit market that requires a substantial amount sales and marketing effort to remain competitive. In the past, getting an advantage in this market was achieved by pricing or positioning products. However, these tactics are not effective in today's world of omnichannels where information is readily shared.
Retailers who make a point of providing a high-quality service are more likely to keep customers coming back 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 several brands, but when he began to listen to customers who were contractors, he learned that most were loyal to a particular brand.
Karch and his staff members ask their customers what they would like to accomplish using a tool prior to showing them the alternatives. This gives them confidence to recommend the right tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame the retailer for a failure of a device on the job.
Tip 7: Create a point of customer service
The market for power tools has become a highly competitive market for retailers of hardware. The retailers that are successful in this category tends to be more loyal to a single brand rather than to carry a variety of brands. power tools buy online of space that retailers can dedicate to a specific category could determine the number of brands they carry.
When customers come in to purchase a power tool they may need assistance choosing a product. Sales associates can provide expert guidance to customers looking to replace a broken tool or are planning an upgrade project.
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 start by asking what the customer is planning to use the tool for according to him. "That's the key to determining what kind of tool to market them," he adds. Then, they inquire about the project and what level of experience the customer has with different kinds of projects.
Tip 8: Make sure to be sure to mention your warranty
The warranty policies of the power tool makers differ greatly. Some manufacturers offer a comprehensive warranty, while others offer more limited warranties or do not offer warranties for certain tools. Before purchasing a tool, it is crucial that the retailer understands the differences. Customers will only buy tools from companies that will 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 and an repair shop in-house that handles 50 kinds of tools. He has realized over the years that many of his customers who are contractors are brand loyal, so he prefers to focus on only a few brands rather than attempting to carry a sampling of different products.
He also appreciates that his employees are able to meet with vendors in person to discuss new products and exchange feedback. This type of personal interaction is essential because it helps build trust between the store's clients and employees. Good relationships with suppliers may even result in discounts for future purchases.