Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both consumer and professional use. The demand for power tools is at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 outbreak in 2021.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's isn't far behind. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Make an Engagement to Brands
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term selling process requires a lot back-and-forth communication and a thorough understanding of the product. This kind of communication isn't suitable for emotional marketing strategies.
Nevertheless, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has raced past traditional manufacturers who rely on a small circle of retailers and distributors for sales.
One of the most important factors in selling power tools is brand loyalty. If a client is adamant about a particular brand and brand, they are less responsive to competitor's messages. They are also more likely to buy the product of the customer again and to recommend them to friends and family.
To be successful in the United States market, you must develop a well-planned strategy. This means adapting your tools to meet local needs, positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities as well as associations and experts is also crucial. By doing so, you can be confident that your power tools will comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they are selling, especially in a market that places such a high value on product quality. This will help them make informed decisions about the products they can offer their customers. This knowledge could also be the difference between a good sale and a poor one.
Knowing that a certain tool is ideal for a specific project will help you match the right tool to the needs of your customer. This will help you build trust and loyalty with your customers. It will also give you the assurance that you're offering an entire solution.
Also, knowing the latest trends in DIY culture can help you better comprehend what your customers want. For instance, a rising number of homeowners are taking on home renovation projects that require the use of power tools. This could lead to a rise in sales of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. Despite power tools stores that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason a consumer makes a power tool purchase is to replace one that is broken down or to take on a new project. Both present opportunities for upsells 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 of power tools are the result of planned replacements. The customers might require additional accessories, or upgrade to a more powerful model.
Your customer may have experience in DIY or is new to the hobby, they will need to replace carbon brushes, drive cords and the power cords on their power tools as time passes. These basic items will ensure that your customer gets the most from their investment.
Technicians take into consideration three main aspects when making power tool purchases the application, the way it will be operated and safety. These factors aid technicians in making informed choices about the best tools to use for their repairs and maintenance tasks. This enables them to maximize the efficiency of their tools and lower the expense of owning it.
Tip 4: Stay current with the latest technology
For instance, the most recent power tools feature smart technology that improves users' experience and sets them apart from other brands that still depend on old-fashioned battery technology. Wholesalers of B2B that stock and sell these devices can increase sales by targeting professional and tech-savvy contractors.
Karch's company, which has 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 the latest technology. "Manufactures are constantly changing the design of their products," Karch says. "They were able to hold their designs for five or ten years, but now they are changing them every year."
B2B wholesalers must not only embrace the latest technologies but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are essential for a lot of professionals who have to utilize the tools for lengthy periods. The power tools industry is divided into professional and consumer groups, which means that major players are always working on improving their designs and introducing new features that will appeal to more people.
Tip 5: Make a Point of Sales
The online marketplace has changed the power tool market. Data collection methods have improved, allowing business professionals to get a better understanding of the market. This allows them to create more efficient inventory and marketing strategies.
Point of sale (POS) information can, for example, allow you to monitor the kinds of projects DIYers undertake when they purchase power tools and accessories. Knowing the type of projects that your customers are working on enables you to offer add-on sales and opportunities for upselling. It allows you to anticipate your customers' needs to ensure that you have the right products on hand.
Additionally, transaction data can help you to detect trends in the market and adjust your production cycles accordingly. You can, for example utilize this data to track fluctuations in your retail partners' and your brand's market shares. This allows you to align your strategy for product with consumer preferences. In the same way, you can utilize POS data to improve levels of inventory and decrease the chance of overstocking. It can also assist you to evaluate the effectiveness of promotional campaigns.
Tip 6: Make a Point of Service
Power tools is a profitable, complex market that requires significant sales and marketing efforts to remain competitive. The traditional methods to gain an advantage in this field were by establishing pricing or positioning of products, but these methods are no longer effective in the omnichannel world of today in which information is dispersed in such a rapid manner.
Retailers who focus on service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot department for power tools. At first, the department offered a sampling of brands, but when he began listening to customers who were contractors, he learned that most were loyal to a particular brand.
Karch and his staff members ask their customers what they plan to do with the tool prior to showing them the possibilities. This gives them the confidence to recommend the right tool for a job, and also 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: Create an effort to be a Point of Customer Service
Power tool retailers face a fiercely competitive market. People who have had success in this area tend to make a firm commitment to a brand rather than merely carrying a few manufacturers. The amount of space a retailer is able to devote to a specific category could influence how many brands they can carry.
When customers visit a store to purchase an electric tool, they often need help selecting a product. Whether they are replacing an old tool damaged or undertaking 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 his store's staff is trained to ask questions that could result in a sale. They begin by asking the customer about what they intend to do with the product. "That's the primary factor in deciding the type of tool to offer them," he adds. Then they ask about the customer's experience with different types projects and the project.
power tools store : Be sure to make mention of your warranty
The warranty policies of power tool manufacturers are quite different. Some are completely comprehensive, while others are stingy, or refuse to cover certain aspects of the tool at all. Before making a purchase it is crucial that the retailer understands the differences. Customers will only buy tools from companies that 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 as well as an repair shop within the premises that can handle 50 models of tools. He has realized over the years that many of his customers who are contractors are brand loyal, so he prefers to focus on a limited number of brands rather than trying to offer a wide range of products.
He is also pleased that his employees are able to meet with vendors in person to discuss new products and share feedback. This type of personal interaction is crucial as it helps create trust between the store and the customers. Having good relationships with suppliers may result in discounts on future purchases.