Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. The demand for power tools is at or close to pre-pandemic levels despite a slowdown due to the COVID-19 outbreak in 2021.
Home Depot is the leader in sales of power tools in terms of dollar share. Lowe's isn't far behind. However, both are being pushed by China-made power tools.
Tip 1: Create an Engagement to Brands
Many manufacturers of industrial products prioritize sales over marketing. This is because a long-term sale requires a lot back-and forth communication and detailed product knowledge. This kind of communication isn't suitable for emotional marketing strategies.
However, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has outpaced traditional manufacturers who depend on a small group of retailers and distributors to sell their products.
A key to power tool sales is brand loyalty. If a customer is committed to a brand they are less prone to the messages of competitors. Additionally, they are more likely to buy the item of the customer time and time again and recommend it others.
It is essential to have a well-planned strategy to make an impact on the American market. This includes adapting tools to local requirements and positioning your brand in a competitive manner, and using marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also essential. By doing so, 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 world where product quality is important, retailers should know the products they sell. This will enable them to make informed decisions about what they sell. This knowledge can also make the difference between a good sale and a bad one.
For example knowing that a particular tool is best suited to a particular project can help you match your client with the appropriate tool to meet their requirements. This will allow you to build trust and loyalty with your customers. It will also give you confidence that you're providing the complete solution.
Additionally, understanding the trends in DIY culture can help you better understand what your customers want. For instance, a growing number of homeowners are tackling home renovation projects that require the use of power tools. This can lead to a spike in the sale of these tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this sales in stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair the broken one or tackle an upcoming 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 a planned replacement. top power tools may require additional accessories or upgrade to a better-performing model.
If your customer is experienced in DIY or is just beginning the hobby, they will need to replace carbon brushes, drive cords and the power cords on their power tools over time. These basic items will ensure that your customer reaps the maximum benefit from their investment.
Technicians must consider three important aspects when buying power tools: application, how it will be used and safety. These aspects help technicians make informed choices when selecting the appropriate tools for their repair and maintenance work. This helps them maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Continue to Keep Up with Technology
The most modern battery tools, for instance, offer smart technology which enhances user experience and differentiates them from rivals who rely upon old battery technology. Wholesalers in B2B who carry and sell these tools could increase sales by focusing on tech savvy contractors and professionals.
Karch's company, which has over 30 years of experience and a 12,000 square foot tool department is a testament to the importance of keeping current with the latest technologies. "Manufactures are constantly changing the look of their products," Karch says. "They used hold their designs for five or ten years, but now they are changing their designs every year."
In addition to taking advantage of the modern technologies, B2B wholesalers should also focus on improving existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the strain caused by long use. These features are important for a large number of professional contractors who need to utilize the tools for lengthy periods of time. The market for power tools is divided between professional and consumer groups. This means that major players are constantly striving to improve their designs and come up with new features to reach a larger public.
Tip 5: Create a point of Sale
The landscape of e-commerce has transformed the power tool market. Data collection methods have improved, allowing business professionals to gain a better understanding of the market. This allows them to create more effective marketing and inventory strategies.
Using data from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects that customers undertake when buying power tools and other accessories. Knowing the type of projects that your customers are working on enables you to offer additional sales and opportunities for upselling. It also allows you to anticipate the requirements of your clients, ensuring that you have the appropriate products on hand.
Moreover, transaction data enables you to spot trends in the market and adjust your production cycles accordingly. For instance, you can make use of this information to monitor changes in your retail partners' and brand's' market shares. This allows you to align product strategies to the preferences of consumers. POS data can also be utilized to optimize inventory levels, reducing the risk of stocking up. It can also assist you to assess the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools are a complicated, high-profit market that requires a significant amount of marketing and sales efforts to remain in the game. In the past a competitive advantage in this market was accomplished by pricing or positioning products. However, these tactics are not effective in today's multichannel environment, where information is readily available to be shared.
Retailers who provide a high level of service are better able to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot power tool department. At first, the department offered several brands, but as he listened to customers who were contractors and found that the majority were brand loyal.
To make a mark in their customers, Karch and his team first ask customers what they would like to accomplish with the tool, then show them the tools they have available. This gives them the 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 a failure of a device on the job.
Tip 7: Be a customer service guru
The market for power tools has become a highly competitive market for retailers of hardware. The retailers that have had success in this category tend to make a firm commitment to a brand rather than merely carrying a few manufacturers. The amount of space retailers can dedicate to a specific category could determine the number of brands they carry.
When customers come in to purchase power tools they may need assistance selecting the right product. When they're replacing an old one damaged or undertaking the task of renovating Customers need 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 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 ask about the experience of the customer with various types of projects and the project.
Tip 8: Create a Point of Warranty
The makers of power tools vary widely in their warranty policies. Some are completely comprehensive, while others are stingy, or refuse to cover certain parts of the tool at all. Before purchasing a tool, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies that provide a warranty.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department and repair shop on site that repairs 50 different brands of tools. He has discovered that a lot of his contractor clients are loyal to a particular brand. So, he chooses to carry a select few brands rather than carry a variety of products.
He also appreciates that his employees can meet with vendors one-on-one to discuss new products and give feedback. This personal contact is important because it helps establish trust between the store and its customers. Having good relationships with suppliers may result in discounts on future purchases.