Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. The demand for power tools is at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic that will hit in 2021.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is second in line. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products prioritize sales over marketing. This is because a long-term purchase requires a lot of back and forth communication and detailed product knowledge. This type of communication does not allow for emotional consumer marketing techniques.
But, companies that produce industrial tools need to rethink their marketing strategy. The digital world has raced past traditional manufacturers who rely on a small group of retailers and distributors for sales.
One of the most important factors in selling power tools is brand loyalty. When a customer is loyal to a particular brand they are less prone to the messages of competitors. In addition they are more likely to purchase the product of the client time and time again and recommend it others.
It is essential to have a well-planned strategy to have an impact on the American market. This means adjusting your tools to meet 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 essential. By doing so, you can be confident that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they offer, especially in a market that places such a high value on the quality of the product. This will allow them to make informed choices about the products they sell. This knowledge can also make the difference between a good sale and a bad one.
For example knowing which tool is ideal for the particular task can help you connect your customer with the best tool for their needs. You'll build trust and loyalty among your customers. This will ensure that you provide the complete service.
In addition, understanding the trends in DIY culture can help you know what your customers are looking for. For instance, a rising number of homeowners are undertaking home renovation projects that require power tools. This can lead to a spike in the sale of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace a broken one or to 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 power tool purchases are the result of planned replacements. Customers often require additional accessories or require upgrading to better performing models.
No matter if your customer is a seasoned DIYer or new to the hobby, they'll require replacing their carbon brushes for power tools, drive belts and power cords as time goes by. These essentials will ensure that your client gets the most out of their investment.
When buying power tools, technicians take into consideration three aspects: the tool's application the power source, and security. These aspects help technicians make informed decisions when choosing the right tools for their maintenance and repair work. This enables them to maximize the effectiveness of their tool and reduce the expense of owning it.
Tip 4: Always Keep Up with Technology
The latest power tools, for example, offer smart technology which improves the user's experience and differentiates them from those who rely on old-fashioned battery technology. B2B wholesalers that carry and sell these devices can increase sales by focusing on professional and tech-savvy contractors.
Karch's business, which has over 30 years of experience and a 12,000 square feet tooling department is a testament to the importance of staying current with the latest technologies. "Manufactures are constantly adjusting the design of their products" Karch says. "They used hold their designs for five or ten years, but now they are changing their designs every year."
In addition to embracing modern technologies, B2B wholesalers should also focus on improving existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can reduce fatigue from long-term use. These features are essential to many professional contractors who use the tools for a lengthy period of time. The market for power tools is divided into consumer and professional groups and this means that the biggest players are always working on improving their designs and introducing new features to reach a wider audience.
Tip 5: Make a Point of Sales
The landscape of e-commerce has transformed the market for power tools. Advancements in data collection methods have allowed business professionals to get a holistic view of market trends which allows them to design marketing and inventory strategies more effectively.
Point of sale (POS) data for instance, allows you to monitor the kinds of projects DIYers tackle when they purchase power tools and accessories. Knowing what projects your customers are working on permits you to increase sales and provide extras. It also helps you to anticipate the needs of your customers, ensuring that you have the correct products available.
Additionally, transaction data can help you to spot trends in the market and adjust production cycles accordingly. For instance, you can make use of this information to monitor fluctuations of your brand's and retail partners' market shares. This allows you to align your product strategies to the preferences of consumers. In the same way, you can utilize POS data to improve levels of inventory and decrease the risk of overstocking. It is also used to determine the effectiveness of promotions.
Tip 6: Make an Point of Service
Power tools are a complicated market that is high-profit and requires a significant amount of sales and marketing effort to remain in the game. In the past, gaining a competitive advantage in this market was accomplished by pricing or positioning products. But these methods are not as effective in the current omnichannel environment where information is readily communicated.
Retailers that focus on customer service are more likely to keep customers 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. At first, the department offered various brands, but as he began listening to the customers of contractors, he discovered that the majority were loyal to a particular brand.
Karch and his staff ask their customers what they would like to accomplish using a tool prior to showing them the alternatives. This gives them confidence to recommend the right tool for the job and builds trust with the customer. Customers who are familiar with their product are less likely than others to blame the retailer for a failure of a tool on the job.
Tip 7: Make an effort to be a Point of Customer Service
The market for power tools has become a highly competitive category for hardware retailers. People who succeed in this category tends to be more loyal to a single brand than to carry a variety of manufacturers. The amount of space that a retailer needs to devote to the category may also play a role in the number of brands it can carry.
When customers come in to purchase an electric tool, they often need help choosing a product. If power tool for sale replacing an old tool that's broken or taking on 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 employees at his store are trained to ask questions that could lead to the sale. They begin by asking questions about what the customer plans to do with the tool, he adds. "That's the primary factor in deciding what kind of tool to market them," he adds. Then, they inquire about the customer's experience with different types projects and the project.
Tip 8: Make a Point of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are completely complete, while others are stingy or even do not cover certain components of the tool at all. It's crucial for retailers to be aware of the distinctions before buying, since customers will purchase tools from companies that offer warranties.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000-square-foot power tool department and an repair shop within the premises that can handle 50 lines of tools. He has observed that many of his contractors are loyal to a particular brand. Therefore, he prefers to carry a limited number of brands rather than offer samples of various products.
He also appreciates that his employees have the ability to meet with vendors one-on-1 to discuss new products and give feedback. This type of personal interaction is crucial because it helps to establish trust between the retailer and customers. Good relationships with suppliers could even result in discounts for future purchases.