Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. The demand for power tools remains at or near pre-pandemic levels despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is second in line. Both are competing with power tools manufactured in China.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products put an emphasis on sales over marketing. This is because the long-term sales process involves a lot of back and forth communication as well as a detailed understanding of the product. This kind of communication does not allow for emotional consumer marketing tactics.
However, companies that manufacture industrial tools need to rethink their marketing strategy. The digital age has outpaced traditional manufacturing companies that rely on a few distributors and retail outlets to sell their products.
Brand commitment is a key element in the sale of power tools. When a customer is committed to a certain brand and brand, they are less responsive to competitors' communications. They are also more likely to purchase the client's products again and to recommend them to others.
You need a well-planned plan to make an impact on the US market. This involves adapting tools to local requirements and positioning brands in a way that is competitive, and using marketing platforms and distribution channels. It is also crucial to work with local authorities as well as industry associations and experts. In this way, you can be confident that the power tools you purchase comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
In a marketplace where product quality is so crucial, retailers should be aware of the products they sell. This will help them make informed choices about the products they are selling. This knowledge could make the difference between a successful or a poor sale.
Knowing which tool is ideal for a particular project will assist you in matching the perfect tool to your customer's needs. This will help you build trust and loyalty with your customers. It will also give you the assurance that you're offering a complete solution.
Also, knowing the latest trends in DIY culture can help you better understand what your customers want. For instance, a rising number of homeowners are undertaking home renovation projects that require power tools. This can lead a spike in sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, while Ryobi and Craftsman brands have seen their share drop year-over-year. However, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power purchase is to either replace a tool that has been damaged or failed or to embark on an entirely new project. Both of these can be used to increase sales and additional 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 resulted from an anticipated replacement. These customers often require additional accessories or may require upgrading to better performing models.
Whether your customer has experience in DIY or is just beginning the hobby, they will need to replace the carbon brushes, drive cords and power cords of their tools over time. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
When buying power tools, technicians take into consideration three aspects: the tool's application the power source, and safety. These aspects allow technicians to make informed choices when it comes to selecting the appropriate tools for their maintenance and repair tasks. This helps them optimize the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Continue to Keep Up With Technology
The most recent power tools, like they feature smart technology that improves the user's experience and sets them aside from rivals who rely upon old battery technology. B2B wholesalers that carry and sell these devices can boost sales by targeting professional and tech-savvy contractors.
For Karch the company, which has more than three decades of experience and a 12,000-square-foot tool department, staying current with the latest technology is vital. "Manufactures are constantly adjusting the design of their products" he says. "They used to hold their designs for five or ten years, but now they are changing them each year."
B2B wholesalers should not just take advantage of the latest technologies, but also enhance their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are crucial for many professional contractors who use the tools for a lengthy period of time. The market for power tools is divided into consumer and professional groups which means that the major players are constantly enhancing their designs and creating new features to appeal to more people.
Tip 5: Make a Point of Sale
The landscape of e-commerce has transformed the market for power tools. Data collection techniques have improved and business professionals can gain a better understanding of the market. This allows them to create more effective marketing and inventory strategies.
Utilizing information from the point of sale (POS) You can track DIY projects that customers are completing when purchasing power tools and other accessories. Knowing the kinds of projects that your customers are working on enables you to provide additional sales and opportunities to upsell. It also allows you to anticipate the requirements of your customers and ensure that you have the right products available.
Additionally, transaction data can help you to spot trends in the market and adjust production cycles accordingly. You can, for example make use of this information to monitor changes in your retail partners' and brand's market share. This allows you to align product strategies with consumer preferences. POS data can also be used to optimize levels of inventory, reducing the risk of stocking up. It can also be used to assess the effectiveness of promotions.
Tip 6: Make an Point of Service
Power tools are a complex, high-profit market that requires a substantial amount sales and marketing effort to remain competitive. The traditional methods to gain a strategic advantage in this field were through pricing or product positioning--but these methods are no longer effective in the omnichannel world of today where information is shared so quickly.
Retailers who are committed to providing a high level of providing excellent service are more likely to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin is the owner of a 12,000-square-foot department for power tools. power tool shops near me was initially home to various brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.
To be successful in their business, Karch and his team first ask customers what they would like to accomplish using the tool, before showing them the tools they have available. This gives them the confidence to recommend the appropriate tool for a job, and it increases trust with their customers. Customers who are familiar with their product are less likely to blame the store for a malfunction of a device on the job.
Tip 7: Make a Point of Customer Service
The market for power tools has become a highly competitive market for retailers of hardware. People who have had success in this category tend to make a strong commitment to a brand rather than merely carrying a sampling of manufacturers. The amount of space that a retailer is able to devote to a category may also determine the number of brands they can carry.
When customers go in to purchase power tools they may need assistance selecting a product. Sales associates can provide expert advice to customers looking to replace a broken device or completing the renovation of their home.
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 make a sale. They begin by asking what the customer plans to use the tool, he says. "That's the most important factor to consider when deciding what kind of tool to offer them," he adds. Then, they inquire about the project and the level of experience they have with various types of projects.
Tip 8: Create a Point of Warranty
The warranty policies of the manufacturers of power tools are quite different. Some companies offer a complete warranty, while others offer more limited warranties or do not cover certain tools. It's crucial for retailers to be aware of the distinctions before buying, since buyers will purchase tools from companies that offer warranties.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool shop and repair shop on site that repairs 50 different brands of tools. He has discovered through the years that a majority of his customers who are contractors are loyal to their brands, which is why the company prefers to stick to only a few brands rather than carry a sampling of different products.
He also likes the fact that his employees can meet with vendors one-on-one to discuss new products and provide feedback. This type of personal interaction is crucial because it helps create trust between the store and its customers. Building strong relationships with suppliers may lead to discounts on future purchases.