Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. Despite a slowdown in 2021 due to the COVID-19 virus, demand remains near or at pre-pandemic levels.
In terms of outlet dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is second in line. Both are however facing stiff competition from China-manufactured power tools.
Tip 1: Commit to a brand
Many industrial product manufacturers place more emphasis on sales over marketing. This is because the long-term sales process requires a lot back-and-forth communication as well as a detailed understanding of the product. This kind of communication doesn't lend itself to emotional consumer marketing strategies.
However, industrial tool manufacturing companies should consider rethinking their marketing strategy. The digital age has raced past traditional companies that rely on a small group of retailers and distributors to sell their products.
Brand commitment is an important aspect in the sales of power tools. 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 products of the brand they are loyal to and to recommend them to others.
You need a well-planned plan to have an impact on the American market. This includes adapting your tools to meet local needs, positioning your brand in a competitive manner, and leveraging distribution channels and marketing platforms. Collaboration with local authorities as well as associations and experts is also crucial. In this way, you can be confident that the power tools you purchase conform to the laws of the country and standards.
Tip 2: Know Your Products
In a world where product quality is crucial, retailers should be aware of the products they offer. This will allow them to make informed choices about the products they are selling. This information can make the difference between a successful deal and a bad one.
For instance knowing which tool is suitable for specific projects will allow you to connect your client with the appropriate tool to meet their requirements. This will help you build trust and loyalty with your customers. It will also give you confidence that you're offering the complete solution.
Understanding DIY cultural trends can aid in understanding the needs of your customers. For instance, a growing number of homeowners are undertaking home renovation projects that require the use of power tools. This can result in a surge in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16%. However, Ryobi and Craftsman have seen their shares decrease year-overyear. However, online and in-store sales are growing.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power purchase is to replace one that is failed or to embark on the task of a new one. Both offer opportunities for upsells and additional 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. Customers may require additional accessories, or upgrade to a better-performing model.
Whether your customer is an experienced DIYer or is new to the hobby, they'll require replacing their power tools' carbon brushes, drive belts and power cords as time goes by. Making sure they are up to date with these essentials will help your customer get the most out of their investment.
When buying power tools, technicians consider three aspects: the tool's application, the power source and safety. These aspects help technicians make informed decisions about the best tools to use in their repairs and maintenance work. This allows them to maximize the effectiveness of their tool and reduce the cost of owning it.
Tip 4: Continue to Keep Up With Technology
The most recent battery tools, for instance, offer smart technology which enhances the user experience and sets them apart from rivals who rely upon old battery technology. Wholesalers of B2B that offer and sell these tools can boost sales by targeting tech-forward contractors and professionals.
Karch's business, with over 30 years of experience and a 12,000 square foot department for tools, is a testament to the importance of keeping up-to-date with the latest technology. "Manufactures are constantly changing the look of their products" Karch says. "They were able to hold their designs for 5 or 10 years but now they change them every year."
B2B wholesalers must not only embrace the latest technologies but also upgrade their existing models. By adding lightweight materials and adjustable handles, wholesalers can lessen fatigue from prolonged use. These features are important for a large number of professionals who have to utilize the tools for powertoolsonline lengthy periods. The power tools industry is divided into professional and consumer groups which means that the major players are constantly improving their designs and developing new features to reach an even larger audience.
Tip 5: Create an Point of Sale
The e-commerce landscape has transformed the market for power tools. Modern methods for data collection have allowed business professionals to gain an entire perspective of market trends, allowing them to shape marketing and inventory strategies more efficiently.
Using data from the point of sale (POS), you can track DIY projects that customers complete when purchasing power tools and other accessories. Knowing the kinds of projects your customers are undertaking enables you to provide additional sales and upsell opportunities. It helps you anticipate the needs of your customers, so that you always have the right products in hand.
You can also use transaction data to spot market trends, and adjust production cycles in line with these trends. For instance, you could use this data to monitor changes in your brand's and market share of retail partners and help you align your product strategies with consumer preferences. Similarly, you can use POS data to improve inventory levels and reduce the risk of stocking up. It can also help you to evaluate the effectiveness of promotional campaigns.
Tip 6: Establish a Point of Service
Power tools are a complicated, high-profit market that requires a significant amount of marketing and sales effort to remain competitive. The traditional methods to gain a strategic advantage in this market have been by establishing pricing or positioning of products, but these tactics no longer work in the omnichannel world of today where information is shared so quickly.
Retailers who make a point of service are better able to keep customers coming back 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 department. Initially, his department featured various brands, but when he began listening to customers who were contractors, he learned that most were brand loyal.
To win their customers, Karch and his team first ask their customers what they want to do with the tool, then show them what they have available. This gives them the confidence to recommend the appropriate tool for the job, and increases trust with their customers. Customers who know their product well are less likely to blame their vendor for a malfunctioning tool on the job.
Tip 7: Become a customer service guru
Power tool retailers face a fiercely competitive market. Those who are successful in this category tends to be more loyal to a single brand than to carry a variety of manufacturers. The amount of space a retailer has to devote to this category can be a factor in how many brands it can carry.
Customers frequently require assistance when they go in to purchase a power device. Whether they are replacing an old model that's broken or taking on a renovation project Customers need advice from sales representatives.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is trained to ask the right questions in order to make the sale. They begin by asking questions about what the buyer is planning to use the tool according to him. "That's the key to determining what kind of tool to offer them," he adds. Then they ask about the customer's experience with various types of projects and the project.
Tip 8: Make an End of Warranty
The warranty policies of power tool manufacturers differ greatly. Some are fully comprehensive, while some are stingy or even do not cover certain components of the tool at all. Before making a purchase it's important that retailers know the differences. Customers will only purchase tools from companies that will 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 as well as an on-site repair shop that repairs 50 different brands of tools. He has discovered over time that a lot of his customers who are contractors are loyal to a particular brand, so he focuses on only a few brands rather than trying to offer a variety of products.
He also likes that his employees get one-on-one time with vendors to discuss new products and provide feedback. This personal contact is important because it helps create trust between the retailer and customers. Good relationships with suppliers may even lead to discounts for future purchases.