Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 virus, the demand is still at or near levels prior to the pandemic.
In terms of outlet dollar share, Home Depot leads all outlets in power tool sales. Lowe's is not far behind. However, both are being pushed by China-made power tools.
Tip 1: Create an Efficacious Brand Commitment
Many industrial products manufacturers prioritize sales over marketing. This is because the long-term sales process requires a lot back-and-forth communication and a thorough understanding of the product. This type of communication is not suitable for emotional marketing strategies.
Nevertheless, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital age has accelerated past traditional companies that rely on a small circle of retailers and distributors to sell their products.
The key to power tool sales is brand loyalty. If a customer is committed to a brand, they will be less prone to the messages of competitors. Additionally they are more likely to buy the client's product repeatedly and recommend it to others.
To be successful to be successful in the United States market, you need to have a well-planned strategy. This means adjusting your tools to meet local needs and positioning your brand in a strategic way, and leveraging marketing channels and distribution channels. It is also important to cooperate with local authorities as well as industry associations and experts. When you do this, you can be confident that your power tools will conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
In a marketplace where quality of the product is so important, retailers should know the products they sell. This will help them make informed choices about the products they are selling. This knowledge could make the difference between making a successful or bad sale.
For instance knowing that a particular tool is ideal for specific projects can help you connect your client with the appropriate tool for their requirements. This will aid in building trust and loyalty with your customers. It will also give you assurance that you're offering a complete solution.
Also, knowing the latest trends in DIY culture can help you know what your customers are looking for. For instance, a rising number of homeowners are undertaking home renovation projects which require power tools. This can lead to an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, although Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace the broken one or tackle the new project. Both offer the possibility of upselling or adding on 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 were the result of an anticipated replacement. These customers often require additional accessories or need to upgrade to higher quality models.
Your customer may have experience in DIY or is just beginning the hobby, they will have to replace their carbon brushes, drive cords, and power cords of their tools over time. These items will ensure your customer gets the most out of their investment.
Technicians must consider three important aspects when buying power tools applications, how it will be operated and safety. These aspects allow technicians to make informed choices when it comes to selecting the appropriate tools for their maintenance and repair work. This will help them optimize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Keep Keeping Up with Technology
The latest power tools, like are equipped with smart technology that improves the user's experience and sets them apart from those who depend on older battery technology. Wholesalers in B2B who stock and sell these devices can boost sales by targeting tech-forward contractors and professionals.
For Karch who's business has more than three decades of experience and a 2,000-square-foot department for tools, staying up with the latest technology is vital. He states that manufacturers are constantly changing their product designs. "They used to hold their designs for five or 10 years, but now they alter their designs every year."
B2B wholesalers need to not only take advantage of the latest technologies, but also improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are crucial for many contractors working in the field who utilize the tools for a long period of time. The market for power tools is divided between the consumer and professional segments. This means that the major players are constantly striving to improve their designs and come up with new features in order to appeal to a wider public.
Tip 5: Create an Point of Sale
The ecommerce landscape has changed the power tool market. Advancements in data collection methods allow business professionals to gain a holistic over view of market trends and help them develop marketing and inventory strategies more effectively.
Point of sale (POS) information can, for example, allow you to monitor the kinds of projects that DIYers are working on when purchasing power tools and accessories. Knowing what projects your customers are working on permits you to upsell and offer additional products. It also allows you to anticipate the needs of your customers making sure you have the right products in stock.
You can also use transaction data to determine trends in the market and adjust production cycles accordingly. You could, for instance make use of this information to monitor changes in your retail partners' and your brand's' market shares. This allows you to align your product strategies to consumer preferences. POS data can also be used to improve inventory levels, reducing the risk of overstocking. It can also be used to determine the effectiveness of promotional campaigns.
Tip 6: Make an Point of Service
Power tools is a lucrative complex market that requires significant sales and marketing efforts to remain competitive. In the past, getting an advantage in this market was accomplished by pricing or positioning products. However, these strategies are no longer effective in today's world of omnichannels where information is easily shared.
Retailers who focus on service are more likely to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. In the beginning, his store featured several brands, but as he began listening to customers who were contractors, he learned that most were loyal to a particular brand.
To be successful in their customers' business, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them the options available. This gives them the confidence to recommend the best tool for the job, and it builds trust with customers. 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: Become a master of customer service
Power tool retailers are facing a fiercely competitive market. Those who are successful in this category tends to be more committed to a single brand than to carry a variety of manufacturers. The amount of space a retailer can devote to a particular category can determine the number of brands they can carry.
Customers often need assistance when they visit to buy a power tool. Whether they are replacing an old model that is broken or tackling the task of renovating clients require expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is educated to ask questions that could lead to the sale. They begin by asking the customer what they intend to do with the item. "That's the best way to decide what kind of tool you need," he says. Then, they inquire about the customer's experience with various types of projects and the project.
Tip 8: Make sure to make mention of your warranty
The warranty policies of the power tool makers are very different. Certain manufacturers offer a full warranty, while others offer a limited warranty or refuse to cover certain tools. Before purchasing a tool, it's important that retailers know the differences. Customers will only purchase tools from companies that will guarantee their products.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000-square-foot power tool department and an in-house repair shop that handles 50 kinds of tools. He has discovered that a lot of his contractors are brand loyal. So, he chooses to carry a select few brands rather than offer samples of various products.
He also appreciates that his employees are able to meet with vendors one-on-one to discuss new products and give feedback. This type of personal interaction is crucial as it helps build trust between the store and the customers. Good relationships with suppliers can even result in discounts on future purchases.