Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. Despite a slowdown in 2021 due to the COVID-19 pandemic, demand remains near or at pre-pandemic levels.
Home Depot is the leader in sales of power tools by dollar share. Lowe's isn't far behind. Both are competing with power tools made in China.
Tip 1: Create a Brand Commitment
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term sale requires a lot of back and forth communication and a thorough understanding of the product. This type of communication is not suitable for emotional marketing strategies.
However, companies that manufacture industrial equipment should reconsider their marketing strategy. The digital world has raced over traditional manufacturers who depend on a few retailers and distributors for sales.
Brand commitment is an important element in the sale of power tools. If a client is committed to a certain brand, they are less sensitive to competitor's messages. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to others.
To have a positive impact in the United States market, you must develop a well-planned strategy. This includes adapting tools to local requirements and positioning brands in a way that is competitive, and making use of distribution and marketing platforms channels. Collaboration with local authorities as well as associations and experts is also essential. You can be sure that your power tool will be in compliance with the standards and regulations of the country when you follow these guidelines.
Tip 2: Know Your Products
In a marketplace where product quality is so important, retailers should know the products they offer. This will allow them to make informed choices about what they offer their customers. This information can be the difference between making a good or bad sale.
Knowing which tool is suitable for a particular project will aid in matching the right tool to your customer's needs. This will allow you to build trust and loyalty with your customers. This will give you confidence that you provide the complete service.
Understanding DIY cultural trends can aid in understanding your customers' requirements. As an example, more homeowners are undertaking home renovation projects requiring the use of power tools. This can lead a spike in the 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 decline year-over-year. Despite this sales in stores and online are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace an old one or tackle a new project. Both offer the possibility of upselling or adding on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power tools store online and Accessories Product Purchase Tracking Study 35 percent of purchases of power tools were the result of an anticipated replacement. Customers may require additional accessories or upgrade to a more powerful model.
No matter if your customer is a seasoned DIYer or just starting out in the hobby, they'll require replacement of their power tools' carbon brushes as well as drive belts and power cords over time. Keeping up with these essentials will allow your customer to make the most of their investment.
Technicians take into consideration three main aspects when making power tools shop online - Additional Info, tool purchases applications, how it will be operated and safety. These aspects allow technicians to make informed decisions when choosing the right tools for maintenance and repair tasks. This allows them to optimize the effectiveness of their tools and lower the cost of ownership.
Tip 4: Stay up-to-date with the latest technologies.
The most modern power tools, like are equipped with smart technology that improves the user's experience and differentiates them from rivals who rely upon old battery technology. B2B wholesalers that stock and sell these devices can increase sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three years of experience and a 12,000 square-foot tool department, staying current with new technologies is essential. He says that manufacturers are constantly changing their product designs. "They were able to hold their designs for five or 10 years, but now they change them every year."
In addition to embracing latest technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the strain caused by long use. These features are essential for a lot of professional contractors who need to utilize the tools for lengthy periods of time. The power tool industry is split into the consumer and professional segments. This means that major players are always working to improve their designs and develop new features to appeal to a wider public.
Tip 5: Create a Point of Sale
The e-commerce landscape has transformed the power tools market. Modern methods for data collection have enabled business professionals to get an entire perspective of market trends which allows them to design inventory and marketing strategies more effectively.
By utilizing data from the point of sale (POS) You can track DIY projects that customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on allows you to increase sales and provide add-ons. It helps you anticipate the needs of your customers to ensure that you have the right products in hand.
You can also use transaction data to identify market trends, and adjust production cycles in line with these trends. You can, for example make use of this information to track fluctuations in your brand's and retail partners' market shares. This will allow you to align your product strategies with consumer preferences. Additionally, you can make use of POS data to improve inventory levels and reduce the risk of overstocking. It can also assist you to evaluate the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools is a profitable complex market that requires substantial marketing and sales efforts in order to remain competitive. In the past, getting a competitive advantage in this market was achieved by establishing prices or positioning of products. However, these tactics are no longer effective in today's multichannel environment, where information is readily shared.
Retailers who provide a high level of service are better able to keep customers coming back and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin is the owner of a 12,000-square-foot department for power tools. Initially, his department featured a sampling of brands, but when he listened to contractor customers, 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 possibilities. This gives them the confidence to recommend the best power tools deals tool for the job and creates trust with customers. Customers who know their product are less likely to blame their supplier for a tool failure on the job.
Tip 7: Become a master of customer service
Power tool retailers are facing a fiercely competitive market. People who have had success in this area tend to make a strong commitment to a brand instead of simply carrying a sampling of manufacturers. The size of the space that a retailer needs to devote to the category may be a factor in the number of brands it can carry.
When customers visit a store to purchase an electric tool they may need assistance selecting a product. If they're replacing an old model that's broken or taking on an upgrade project clients require expert guidance from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is trained to ask the right questions to make the sale. They begin by asking what the buyer is planning to use the tool for, he says. "That's the best tools online way to determine what kind of tool they require," he says. The next step is to inquire about the project and what level of experience the client has with various types of projects.
Tip 8: Be sure to make mention of your warranty
The warranties of the power tool makers differ greatly. Some are completely comprehensive, while some are stingy, or do not cover certain components of the tool at all. It is crucial for retailers to be aware of these differences before buying, since customers will buy tools from companies that offer warranties.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square-foot power tool department as well as repair shop on site that repairs 50 different lines of tools. He has realized over the years that many of his customers who are contractors are loyal to their brands, which is why he prefers to focus on only a few brands rather than attempting 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 type of personal interaction is crucial as it helps create trust between the store and its customers. Good relationships with suppliers can even result in discounts for future purchases.