Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both consumer and professional use. Despite the fact that 2021 will see a slowdown due to the COVID-19 pandemic demand remains near or at levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is not far behind. Both are however being pushed by China-made power tools.
Tip 1: Be committed to a brand
Many manufacturers of industrial products put more emphasis on sales and marketing. This is due to the fact that 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 isn't suitable for emotional marketing strategies.
However, industrial tool manufacturing companies must rethink their marketing strategy. The digital world has raced past traditional manufacturers who rely on a small group of retailers and distributors to sell their products.
Brand commitment is an important element in the sale of power tools. If a customer is committed to a brand and is loyal to a brand, they are less sensitive to communications from competitors. Additionally, they are more likely to buy the product of the client time and time again and recommend it others.
You need a well-planned plan to have an impact on the American market. This means adapting your tools to meet the local requirements and positioning your brand in a competitive way, and making use of distribution channels and marketing platforms. Collaboration with local authorities and associations, as well as experts is also crucial. In this way you can ensure that your power tools comply with the country's regulations and standards.
Tip 2: Know Your Products
Retailers should be familiar with the products they are selling especially in a marketplace which places a great value on the quality of the product. This will help them make informed choices about the products they offer their customers. This knowledge can make the difference between a successful or a poor sale.
For example knowing which tool is suitable for the particular task can help you connect your customer with the right tool for their needs. This will aid in building trust and loyalty with your customers. It will also give you the confidence 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 example, a growing number of homeowners are tackling home improvement projects which require power tools. This can result in an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace an old one or tackle the new project. Both offer opportunities for upsells 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 were the result of an anticipated replacement. Customers may require additional accessories, or upgrade to a better-performing model.
Whether your customer is a seasoned DIYer or just starting out in the hobby, they'll likely require replacing their carbon brushes for power tools as well as drive belts and power cords over time. These essentials will ensure that your customer reaps the maximum benefit out of their investment.
When buying power tools, technicians take into consideration three factors: the application the power source, and security. These factors allow technicians to make informed decisions when choosing the right tools for repair and maintenance work. This will help them maximize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Always Keep Up with Technology
The most modern battery tools, for instance, offer smart technology which enhances user 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 professional and tech-savvy contractors.
For Karch who's business has more than three decades of experience and a 12,000-square-foot tool department, staying current with new technologies is essential. "Manufactures are constantly adjusting the design of their products" he says. "They used to hold their designs for five or 10 years, but now they are changing them each year."
B2B wholesalers must not only embrace the latest technologies but also enhance their existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can decrease fatigue due to long-term use. These features are crucial for a large number of professionals who have to utilize the tools for lengthy durations. The market for power tools is split into professional and consumer groups. This means that the major players are always working to improve their designs and develop new features to reach a wider audience.
Tip 5: Create a Point of Sales
The e-commerce landscape has transformed the power tools market. Data collection techniques have been improved allowing business professionals to get a better understanding of the market. This helps them develop more effective inventory and marketing strategies.
Point of sale (POS) data can, for example, allow you to monitor the kinds of projects DIYers tackle when purchasing power tools and accessories. Knowing the type of projects your customers are undertaking enables you to provide additional sales and opportunities to upsell. It also helps you to anticipate the needs of your customers and ensure that you have the right products available.
You can also use transaction data to identify market trends, and adjust production cycles in line with these trends. You can, for example, use this data to track fluctuations in your retail partners' and your brand's market shares. This will allow you to align product strategies with consumer preferences. POS data can also be used to optimize inventory levels, reducing the risk of overstocking. It can also help you to assess the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
Power tools is a high-profit complex market that requires significant marketing and sales efforts to stay competitive. In the past, getting an advantage in this market was achieved by pricing or positioning products. However, these tactics are not effective in today's world of omnichannels where information is readily shared.
Retailers who concentrate on service are more likely to keep customers and build brand loyalty. power tools stores , the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. His department initially featured various brands. However when he talked to contractors, he realized that they were loyal to their preferred brand.
To be successful in their customers, Karch and his team first ask their customers what they want to do with the tool before showing them what they have available. This gives them the confidence to recommend the appropriate tool for a job, and builds trust with customers. Customers who know their product well are less likely to blame their retailer for a malfunctioning tool on the job.
Tip 7: Be a guru in customer service
Power tool retailers are in a fiercely competitive market. The retailers that have had success in this category tend to have a strong commitment to a particular brand rather than simply carrying a selection of manufacturers. The amount of space that a retailer needs to devote to this category can also play a role in the amount of brands it is able to carry.
Customers often need assistance when they come in to purchase a power tool. Whether they are replacing an old one damaged or undertaking an upgrade project clients require expert advice 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 help make a sale. They begin by asking what the customer plans to use the tool for, he says. "That's the primary factor in deciding the kind of tool to market them," he adds. The next step is to inquire about the project and what level of experience the client has with different types of projects.
Tip 8: Create a Point of Warranty
The warranty policies of power tool manufacturers differ greatly. Some are completely comprehensive, while some aren't as generous or do not cover certain components of the tool at all. Before buying a product, it's important that retailers know the differences. Customers will only purchase tools from companies that will back them up.
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 a repair shop on site that repairs 50 different types of tools. He has learned that many of his clients are loyal to their brands. Therefore, he prefers to carry only a few brands rather than carry a variety of products.
He is also pleased that his employees are able to meet with vendors one-on-1 to discuss new products and share feedback. This personal contact is important because it helps to create trust between the retailer and customers. Having good relationships with suppliers can even lead to discounts on future purchases.