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 close to or at pre-pandemic levels.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's isn't far behind. Both are competing with power tools manufactured in China.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products place a higher priority on sales and marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication and detailed knowledge of the product. This kind of communication doesn't permit emotional marketing techniques.
However, companies that manufacture industrial equipment should reconsider their marketing strategy. The digital age has accelerated over traditional manufacturers who depend on a small circle of distributors and retailers for sales.
A key to selling power tools is brand loyalty. When a buyer is committed to a specific brand and brand, they are less responsive to competitors' communications. In addition they are more likely to purchase the item of the customer time and time again and recommend it others.
You require a well-planned strategy to have an impact on the US market. This includes adapting tools to local requirements and positioning brands in a manner that is competitive and leveraging marketing platforms and distribution channels. Collaboration with local authorities as well as associations and experts is also crucial. 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 market 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 information can be the difference between making a good or a poor sale.
Knowing which tool is ideal for a particular project will aid in matching the right tool to the needs of your customer. This will aid in building trust and loyalty with your customers. It will also give you the assurance that you're offering the complete solution.
Also, knowing the latest trends in DIY culture can help you better understand what your customers want. For instance the increasing number of homeowners are taking on home improvement projects that require the use of power tools. This could lead to a rise in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. However 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 an upcoming project. Both offer opportunities for upsells or additional sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of purchases for power tools were the result of an anticipated replacement. These customers often require additional accessories or may require upgrading to better performing models.
Whether power tools stores near me has experience in DIY or is new to the hobby, they will have to replace their carbon brushes, drive cords and power cords of their tools as time passes. Being on top of these important items will help your customer get the most value from their investment.
When purchasing power tools, technicians consider three aspects: the tool's application the power source, and security. These factors allow technicians to make informed decisions when choosing the appropriate tools for their maintenance and repair work. This helps them maximize the effectiveness of their tools and lower the cost of ownership.
Tip 4: Stay current with the latest technology
The most modern battery tools, for instance are equipped with smart technology that enhances the user experience and differentiates them from competitors who still depend on older battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by targeting tech-forward contractors and professionals.
For Karch, whose business has more than three decades of experience and a 12,000-square-foot tool department, keeping up with the latest technologies is crucial. "Manufactures are constantly changing the design of their products," he says. "They used hold their designs for five or 10 years, but now they are changing them every year."
In addition to embracing latest technologies, B2B wholesalers should also be looking to improve existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue caused by long-term use. These features are crucial for many professional contractors who need to use the tools for long periods. The industry of power tools is divided into consumer and professional groups, which means that major players are constantly improving their designs and introducing new features to reach an even larger audience.
Tip 5: Create a Point of Sales
The online marketplace has transformed the power tools market. The advancements in data collection techniques have allowed professionals in the field to get an overall view of market trends and help them develop marketing and inventory strategies more efficiently.
Point of sale (POS) data for instance, allows you to track the types of projects DIYers tackle when they purchase power tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and add-ons. It helps you anticipate your customers' needs to ensure that you have the right products on hand.
You can also utilize transaction data to identify market trends, and adjust production cycles accordingly. For instance, you could make use of this information to track fluctuations in your brand's or market share of retail partners and help you adapt your product strategies to consumer preferences. Additionally, you can make use of POS data to optimize inventory levels and reduce the risk of overstocking. It also helps to assess the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools are a complex, high-profit market that requires a substantial amount of marketing and sales efforts to remain competitive. In the past, gaining an advantage in this market was accomplished through pricing or positioning products. However, these strategies are no longer effective in today's multichannel environment, where information is readily available to be shared.
Retailers who are committed to providing a high level 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. The department was initially home to several brands. However when he spoke to contractors, he noticed that they were loyal to their favorite brand.
Karch and his staff members ask their customers what they intend to do with a tool prior to showing them the options. This gives them the confidence to recommend the right tool for the job, and also builds trust with customers. Customers who know their product are less likely to blame their vendor for a tool failure on the job.
Tip 7: Be a master 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 area tend to be more committed to a specific brand rather than to carry a variety of brands. The amount of space a retailer has to devote to this category can be a factor in the amount of brands it is able to carry.
Customers usually require assistance when they come in to purchase a power tool. Whether they are replacing an old tool that's broken or taking on the task of renovating, customers need expert advice from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are trained to ask the right questions in order to make the sale. They start by asking what the buyer is planning to use the tool for, he says. "That's the way to determine the type of tool you need," he says. The next step is to inquire about the project and the level of experience they have with various types of projects.
Tip 8: Create an End of Warranty
The warranties of the manufacturers of power tools differ greatly. Some are completely complete, while others aren't as generous or refuse to cover certain aspects of the tool at all. It's crucial for retailers to be aware of these differences before making a purchase, because customers will buy tools from companies that back them up.
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 types of tools. He has learned over the years that many of his contractor customers are loyal to their brands, which is why he focuses on a limited number of brands rather than trying to offer a wide range of products.
He also likes the fact that his employees can meet with vendors one-on-one to discuss new products and provide feedback. This kind of interaction is essential as it helps create trust between the retailer and customers. Good relationships with suppliers may even lead to discounts for future purchases.