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 pre-pandemic levels.
Home Depot is the leader in sales of power tools in terms of dollar share. Lowe's isn't far behind. Both are competing against power tools manufactured in China.
Tip 1: Commit to a brand
A lot of manufacturers of industrial products place emphasis on sales over 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 type of communication is not suitable for emotional marketing strategies.
But, companies that produce industrial tools need to rethink their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a few retailers and distributors to sell their products.
Brand loyalty is a major factor in power tool sales. When a customer is loyal to a particular brand they are less prone to messages from competitors. Additionally, they are more likely to purchase the item of the customer repeatedly and recommend it to others.
You need a well-planned plan to make an impact on the American market. This includes adapting your tools to meet local requirements and positioning your brand in a strategic way, and making use of distribution channels and marketing platforms. It is also important to work with local authorities, industry associations, and experts. You can be sure that your power tool will meet the standards and regulations of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they sell particularly in a market that places such a high value on the quality of the product. This will help them make informed choices about the products they can offer their customers. This knowledge can also make the difference between a successful sale and a bad one.
For example knowing which tool is ideal for a particular project can help you connect your client with the appropriate tool to meet their needs. You'll earn trust and a sense of loyalty among your customers. It will also give you the assurance that you're offering the complete solution.
In addition, understanding the trends in DIY culture will help you comprehend what your customers want. For instance, more homeowners are undertaking home improvement projects that require the use of power tool. This can result in a surge in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to repair the broken one or tackle the new project. Both offer opportunities for upsells and add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of power tool purchases were the result of a planned replacement. These customers often require additional accessories or need to upgrade to higher performing models.
Your customer may have experience in DIY or is just beginning the hobby they will need to replace their carbon brushes, drive cords, and power cords of their power tools over time. Making sure they are up to date with these essentials will help your customer get the most out of their investment.
When purchasing power tools, technicians take into consideration three factors: the application, the power source and security. These aspects help technicians make informed decisions when choosing the appropriate tools for their maintenance and repair tasks. This allows them to improve the effectiveness of their tools and lower the cost of ownership.
Tip 4: Keep current with the latest technology
The most recent battery tools, for instance they feature smart technology that enhances user experience and sets them aside from competitors who still rely upon old battery technology. Wholesalers of B2B who stock and sell these devices can boost sales by targeting professionals and contractors who are tech-savvy.
Karch's business, with more than 30 years of experience and a 12,000 square feet tool department is a testimony to the importance of staying up-to-date with new technologies. "Manufactures are constantly changing the look of their products," he says. "They used to hold their designs for five or 10 years, but now they're changing them each year."
B2B wholesalers should not just adopt the latest technology, but also enhance their existing models. By adding lightweight materials and adjustable handles, wholesalers can reduce fatigue from long-term use. These features are essential for many contractors working in the field who utilize the tools for a long period of time. The market for power tools is divided into consumer and professional groups and this means that the biggest players are constantly improving their designs and developing new features that will appeal to an even larger audience.
Tip 5: Create a point of Sales
The landscape of e-commerce has transformed the market for power tools. Data collection methods have improved and business professionals can gain a better understanding the market. This allows them to create more effective inventory and marketing strategies.
Point of sale (POS) data for instance, allows you to track the types of projects that DIYers are working on when they purchase power tools and accessories. Knowing what projects your customers are working on enables you to upsell and offer extras. It allows you to anticipate your customers' needs to ensure that you have the right products on your shelves.
You can also use transaction data to determine trends in the market, and then adjust production cycles accordingly. For instance, you could make use of this information to track changes in your brand's and retail partner market shares and help you match your product strategies to consumer preferences. Additionally, you can make use of POS data to improve levels of inventory and decrease the risk of overstocking. It is also used to evaluate the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools are a complex market with high profits that requires a significant amount of sales and marketing effort to stay in the game. The traditional methods to gain a strategic advantage in this market were by establishing pricing or positioning of products, but these methods are no longer effective in today's omnichannel marketplace where information is distributed in such a rapid manner.
Retailers who are committed to providing a high level of providing excellent service are more likely to retain customers and develop 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. The department was initially home to various brands. However, as he listened to contractors, he discovered that they were loyal to their preferred brand.
Karch and his staff members ask their customers what they plan to accomplish using a tool before showing them the alternatives. This gives them the confidence to recommend the best tool for a job, and builds trust with customers. Customers who know their product well are less likely to blame their supplier for a malfunctioning tool during the course of work.
Tip 7: Be a customer service guru
Power tool retailers are in a fiercely competitive market. The retailers that have had the most success in this market tend to have a strong commitment to a brand rather than simply carrying a sampling of manufacturers. The size of the space a retailer must devote to this category can be a factor in the amount of brands it is able to carry.
When customers visit a store to purchase an electric tool, they often need help choosing a product. If they're replacing an old model damaged or undertaking a renovation project, customers need expert guidance from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is trained to ask questions that will result in a sale. They start by asking what the buyer is planning to do with the tool according to him. "That's the way to determine what kind of tool they require," he says. Then, they inquire about the experience of the customer with various types of projects and the project.
Tip 8: Create an End of Warranty
Power tool manufacturers vary greatly in their warranty policies. Some are fully complete, while others aren't as generous or do not cover certain components of the tools at all. Before making a purchase it is essential that retailers understand the distinctions. best deals on power tools will only purchase tools from companies who guarantee their products.
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 and repair shop on site that repairs 50 different lines of tools. He has learned through the years that a majority of his customers who are contractors are brand loyal, so he prefers to focus on a limited number of brands rather than attempting to carry a sampling of different products.
He also likes the fact that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and provide feedback. This personal contact is important because it helps establish trust between the store and its customers. Good relationships with suppliers may result in discounts on future purchases.