Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. The demand for power tools remains at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 outbreak in 2021.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's follows closely behind. Both are competing against power tools made in China.
Tip 1: Be committed to a brand
Many manufacturers of industrial products place more emphasis on sales than marketing. This is because a long-term sales requires a lot back-and forth communication and in-depth knowledge of the product. This kind of communication does not lend itself to emotional consumer marketing strategies.
However, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital world has surpassed traditional companies that rely on a few distributors and retail outlets to sell their products.
Brand loyalty is a major factor in power tool sales. If a client is committed to a certain brand and brand, they are less responsive to competitor's messages. They are also more likely to buy the client's products again and to recommend them to friends and family.
To have a positive impact to be successful in the United States market, you must have an organized strategy. This includes adapting your tools to local needs, positioning brands in a manner that is competitive and leveraging marketing platforms and distribution channels. Collaboration with local authorities as well as associations and experts is also crucial. You can be sure that your power tool is in line with the requirements and standards of the country when you do this.
Tip 2: Know Your Products
Retailers should be familiar with the products they offer, especially in a market which places a great value on product quality. This will allow them to make informed choices about the products they offer. This knowledge could make the difference between a successful or a poor sale.
For example knowing which tool is suitable for the particular task will allow you to match your client with the appropriate tool for their requirements. You'll build trust and loyalty with your customers. It will also give you confidence that you're providing the complete solution.
Understanding DIY culture trends can also help you better understand the needs of your customers. For instance, more homeowners are undertaking home improvement projects that require the use of power tools. This could lead to an increase in sales of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, while Ryobi and Craftsman brands have seen their share drop year-over-year. However sales in stores and online are increasing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace the broken one or tackle an upcoming project. Both of these tools offer the possibility of upselling or adding on 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 resulted from an anticipated replacement. These customers typically require additional accessories or require an upgrade to better performing models.
Your customer may have experience in DIY or is just beginning the hobby, they will need to replace carbon brushes, drive cords and power cords of their power tools in 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 aspects: the tool's application the power source, and safety. These factors help technicians make informed choices about the best tools to use in their maintenance and repairs. This allows them to optimize the performance of their tools and lower the cost of ownership.
Tip 4: Keep up to date with technology
For example, the latest battery tools have smart technology that improves users' experience and sets them apart from competitors that still rely on old battery technology. Wholesalers of B2B that offer and sell these tools can increase sales by targeting professionals and contractors who are technologically advanced.
For Karch who's business has more than three decades of experience and a 12,000-square-foot tool department, staying current with the latest technologies is crucial. "Manufactures are constantly changing the look of their products" Karch says. "They used to hold their designs for five or 10 years, but now they're changing them each year."
B2B wholesalers need to not only take advantage of the latest technologies, but also improve existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue due to long-term use. These features are essential for many professional contractors who need to make use of the tools for long periods. The market for power tools is divided between the consumer and professional segments. This means that the major players are constantly working to improve their designs and develop new features to appeal to a wider market.
Tip 5: Create a point of Sales
The e-commerce landscape has transformed the market for power tools. Data collection techniques have improved, allowing business professionals to gain a better understanding of the market. This allows them to create more efficient inventory and marketing strategies.
Using information from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects that customers undertake when buying power tools and accessories. Knowing the types of projects that your customers are undertaking enables you to provide additional sales and opportunities for upselling. It also allows you to anticipate the requirements of your clients and ensure that you have the right products on hand.
Additionally, transaction data can help you to spot trends in the market and adjust your production cycles accordingly. For instance, you could make use of this information to track fluctuations in your brand's or retail partner market shares, enabling you to align your product strategies with consumer preferences. POS data can also be used to improve inventory levels, which reduces the chance of overstocking. Power Tools Online can also be used to assess the effectiveness of promotional campaigns.
Tip 6: Establish a Point of Service
Power tools is a high-profit, complex market that requires substantial sales and marketing efforts to stay competitive. The classic ways to gain a strategic advantage in this market were through pricing or product positioning--but these methods are no longer effective in today's multichannel marketplace where information is shared so quickly.
Retailers who are committed to providing a high level of providing excellent service are more likely to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool section. The department was initially home to several brands. However when he talked to contractors, he realized that they were loyal to their favorite brand.
To make a mark in their customers' business, Karch and his team first ask customers what they would like to accomplish with the tool before showing them the options available. This gives them the confidence to recommend the appropriate tool for a job, and it creates trust with customers. Customers who are familiar with their product are less likely than others to blame the store for the failure of a tool for the job.
Tip 7: Create a Point of Customer Service
The market for power tools has become a highly competitive category for retailers of hardware. People who have had the most success in this market tend to make a strong commitment to a brand rather than simply carrying a sampling of manufacturers. The amount of space a retailer is able to devote to a particular category can affect the number of brands they can carry.
Customers often need assistance when they visit to buy a power tool. Whether they are replacing an old tool that's broken or taking on a renovation project clients require expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the employees at his store are trained to ask questions that could lead to a sale. He says they start by asking the customer about what they plan to use the product. "That's the way to determine what kind of tool they need," he says. The next step is to inquire about the project and what kind of experience the customer has with different types of projects.
Tip 8: Make sure to make mention of your warranty
The warranties of the manufacturers of power tools differ greatly. Some companies offer a complete warranty, whereas others are more limited or do not cover certain tools. It is crucial for retailers to understand the distinctions before buying, since customers will buy tools from firms that provide them with a warranty.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool shop and repair shop on site that repairs 50 different lines of tools. He has observed that many of his contractors are loyal to their brands. So, he chooses to carry only a few brands rather than offer samples of various products.
He also appreciates that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and share feedback. This type of personal interaction is essential because it helps build trust between the store's customers and employees. Building strong relationships with suppliers can even lead to discounts on future purchases.