Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both consumers and professionals. Despite the fact that 2021 will see a slowdown due to the COVID-19 virus, demand remains close to or at levels prior to the pandemic.
Home Depot is the leader in power tool sales based on dollar share. Lowe's is close behind. However, both are facing stiff competition from China-manufactured power tools.
Tip 1: Be committed to a brand
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term purchase requires a lot back-and forth communication and detailed product knowledge. This type of communication is not ideal for marketing that is based on emotion.
However, industrial tool manufacturing companies must rethink their marketing strategy. The digital world has surpassed traditional manufacturing companies that rely on a small group of distributors and retail outlets for sales.
Brand commitment is an important element in the sale of power tools. When a customer is committed to a brand, they will be less prone to messages from competitors. They are also more likely to buy the products of the brand they are loyal to and to recommend them to others.
To make a successful impact to be successful in the United States market, you must have a well-planned strategy. This means adapting your tools to meet local needs and positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities and associations, as well as experts is also crucial. In this way you can ensure that the power tools you purchase be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
In a marketplace where product quality is crucial, retailers should be aware of the products they offer. This will enable them to make informed decisions about what they are selling. This knowledge can make the difference between a successful or a poor sale.
Knowing which tool is perfect for a specific project will aid in matching the right tool to the requirements of your customer. This will help you build trust and loyalty with your customers. This will ensure that you're providing the complete service.
Also, knowing the latest trends in DIY culture can help you better understand what your customers want. For instance, a growing number of homeowners are taking on home improvement projects that require power tools. This can lead a spike 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. However, power tools sale and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to either replace one that is broken down or to take on an entirely new project. Both offer opportunities for upsells or 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. These customers typically require additional accessories or require an upgrade to better quality models.
Whether your customer has experience in DIY or is just beginning the hobby they will need to replace the carbon brushes, drive cords, and power cords of their power tools in time. These items will ensure your customer reaps the maximum benefit from their investment.
Technicians consider three key items when making power tool purchases the application, the way it will be powered and safety. These factors allow technicians to make informed choices when selecting the right tools for maintenance and repair tasks. This helps them maximize the effectiveness of their tool and lower the expense of owning it.
Tip 4: Stay up-to-date with the latest technologies.
For instance, the most recent power tools offer intelligent technology that enhances the user experience and differentiates them from other brands that still depend 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 company, which has more than 30 years of experience, and a 12,000 square feet department for tools is a testimony to the importance of keeping up-to-date with the latest technology. "Manufactures are constantly changing the look of their products," he says. "They used to hold their designs for five or ten years, but they're now changing them every year."
B2B wholesalers must not only take advantage of the latest technologies, but also upgrade their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can reduce fatigue due to long-term use. These features are crucial for professionals who employ the tools for a lengthy period of time. The power tool industry is divided between consumer and professional groups. This means that the major players are always working to improve their designs and come up with new features to reach a wider public.
Tip 5: Create a point of Sale
The online marketplace has changed the market for power tools. Advancements in data collection methods have enabled professionals in the field to get a holistic overview of market trends and help them develop inventory and marketing strategies more effectively.
Utilizing data from the point of sale (POS) You can track DIY projects that customers are completing when purchasing power tools and other accessories. Knowing what projects your customers are working on permits you to offer upsells and additional products. It allows you to anticipate your customers' needs to ensure that you have the right products on your shelves.
Moreover, transaction data enables you to identify market trends and adjust production cycles in line with. For instance, you can utilize this data to monitor changes in your brand's and retail partners' market shares. This will allow you to align your strategy for product to consumer preferences. POS data can also be utilized to optimize inventory levels, which reduces the risk of stocking up. It can also be used to evaluate the effectiveness of promotions.
Tip 6: Make an Point of Service
Power tools are a complicated market that is high-profit and requires a substantial amount sales and marketing effort to stay in the game. The classic ways to gain an advantage in this field have been by establishing pricing or positioning of products, but these strategies are no longer effective in the omnichannel world of today where information is distributed rapidly.
Retailers that focus on customer 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 is the owner of a 12,000-square-foot power tool department. Initially, his department featured various brands, but when he began listening to contractor customers, he learned that most were loyal to a particular brand.
To make a mark in their customers, Karch and his team first ask their customers what they'd like to achieve with the tool, then show them what they have available. This gives them the confidence to recommend the right tool for the job and also creates trust with customers. Customers who are familiar with their product are less likely than others to blame the store for a malfunction of a device on the job.
Tip 7: Make a point of customer service
Power tool retailers face an extremely competitive market. power tools sale who have seen success in this category tend to make a firm commitment to a particular brand rather than simply carrying a sampling of manufacturers. The amount of space that retailers can dedicate to a specific category could affect the number of brands they carry.
When customers visit a store to purchase an electric tool they may need assistance selecting a product. Whether they are replacing an old one that's broken or taking on a renovation project Customers need 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 can result in the sale. They start by asking what the customer is planning to use the tool, he adds. "That's the most important factor to consider when deciding what kind of tool to market them," he adds. The next step is to inquire about the project and what level of experience the customer has with different types of projects.
Tip 8: Create a Point of Warranty
Power tool manufacturers vary greatly in their warranty policies. Some companies offer a complete warranty, while others are more limited or do not cover certain tools. Before buying a product, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies who back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department and repair shop on site that repairs 50 different brands of tools. He has learned that many of his contractor clients are loyal to their brands. So, he chooses to carry only a few brands instead of trying to offer samples of various products.
He is also pleased that his employees have the ability 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 its customers. Good relationships with suppliers can even result in discounts on future purchases.