Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. The demand for power tools remains 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 is not far behind. Both are however confronting stiff competition from Chinese-made power tools.
Tip 1: Be committed to a brand
Many industrial products manufacturers prioritize sales over marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication and a thorough understanding of the product. This kind of communication isn't ideal for marketing that is based on emotion.
However, industrial tool 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 for sales.
A key to power tool sale s is brand loyalty. When a customer is committed to a brand and is loyal to a brand, they are less prone to the messages of competitors. 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 to be successful in the United States market, you must have a well-planned strategy. This means adapting your tools to meet the local requirements, positioning your brand in a competitive manner, and leveraging distribution channels and marketing platforms. Collaboration with local authorities and associations, as well as experts is also essential. You can be sure that your power tool is in line with the standards and regulations of the country if you follow these guidelines.
Tip 2: Know Your Products
In a world where product quality is important, retailers should know the products they sell. This will help them make informed choices about what they offer their customers. This knowledge can make the difference between a successful or bad sale.
For instance knowing that a particular tool is suitable for specific projects will help you match your customer with the right tool for their needs. You'll earn trust and loyalty among your customers. It will also give you assurance that you're offering a complete solution.
Understanding DIY culture trends can also aid in understanding the needs of your customers. For instance, a growing number of homeowners are tackling home renovation projects which require power tools. This could lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair an old one or tackle a new project. Both of these can be used to increase sales and add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all purchases for power tools are the result of planned replacements. These customers typically require additional accessories or may require an upgrade to better performance models.
If your customer is an experienced DIYer or just starting out in the hobby, they'll likely need to replace their carbon brushes for power tools drive belts, drive belts, and power cords with time. These items will ensure 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 aspects allow technicians to make informed choices when selecting the right tools for repair and maintenance work. This helps them improve the effectiveness of their tools and lower the cost of ownership.
Tip 4: Keep up-to-date with the latest technologies.
For instance, the latest battery tools have intelligent technology that enhances users' experience and differentiates them from other brands that still rely on old battery technology. B2B wholesalers that stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's business, with over 30 years of experience, and a 12,000 square feet department for tools is a testament to the importance of keeping up-to-date with new technologies. He states that manufacturers are constantly changing their designs for their products. "They were able to hold their designs for 5 or 10 years but now they are changing their designs every year."
B2B wholesalers must not only take advantage of the latest technologies, but also upgrade their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can reduce fatigue due to long-term use. These features are important for a lot of professionals who must use the tools for long durations. The industry of power tools is divided into consumer and professional groups which means that the major players are constantly improving their designs and introducing new features that will appeal to more people.
Tip 5: Create a Point of Sales
The online marketplace has transformed the power tools market. Modern methods for data collection allow professionals in the field to get a holistic perspective of market trends and help them develop marketing and inventory strategies more efficiently.
Point of sale (POS) data for instance, allows you to keep track of the types of projects that DIYers are working on when purchasing power tools and accessories. Knowing what projects your customers are working on enables you to offer upsells and extras. It also helps you to anticipate the needs of your customers and ensure that you have the right products on hand.
You can also use transaction data to identify trends in the market, and then adjust production cycles in line with these trends. You can, for example, use this data to track fluctuations in your retail partners' and brand's' market shares. This allows you to align product strategies with consumer preferences. POS data can also be used to optimize inventory levels, reducing the risk of stocking up. It can also assist you to assess the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools are a complex market that is high-profit and requires a substantial amount of marketing and sales efforts to remain competitive. In the past, getting an advantage in this market was accomplished through pricing or positioning products. But these methods are not effective in today's multichannel environment, where information is readily shared.
Retailers who are committed to providing 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, Wisconsin, operates a 12,000-square-foot department for power tools. At first, the department offered various brands, but when he listened to customers who were contractors, he learned that most were brand loyal.
To make a mark 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 best tool for a job, and increases trust with their customers. Customers who know their product are less likely to blame their vendor for a tool malfunction on the job.
Tip 7: Make a point of customer service
Power tool retailers face an extremely competitive market. The retailers that are successful in this category tends to be more devoted to a single brand than to carry a variety of brands. The amount of space a retailer is able to devote to a category may also affect the number of brands they are able to carry.
When customers visit a store to purchase a power tool, they often need help selecting the right product. If they're replacing an old one that is broken or tackling an upgrade project Customers need advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the employees at his store are educated to ask questions that can lead to an offer. They start by asking what the customer plans to use the tool for, he says. "That's the most important factor to consider when deciding the kind of tool to offer them," he adds. Then, they inquire about the experience of the customer with various types of projects and the project.
Tip 8: Make sure to mention your warranty
The warranties of the power tool makers are very different. Some are fully complete, while others aren't as generous or refuse to cover certain parts of the tool at all. Before buying a product, it is crucial that the retailer understands the differences. Customers will only purchase tools from companies that will back them up.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop in-house that handles 50 models of tools. He has observed that many of his clients are loyal to a particular brand. Therefore, he prefers to carry a limited number of brands instead of trying to carry samples of different products.
He also appreciates that his employees can have one-on-one meetings with vendors to discuss new products and give feedback. This kind of interaction is essential because it helps establish trust between the store and the customers. Building strong relationships with suppliers may lead to discounts on future purchases.