Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and consumer use. The demand for power tools remains at or near pre-pandemic levels despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is close behind. Both are competing against power tools manufactured in China.
Tip 1: Make a commitment to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term selling process requires a lot of back-and-forth communication and detailed knowledge of the product. This kind of communication isn't ideal for marketing that is based on emotion.
However, companies that make industrial equipment should reconsider their marketing strategy. The digital world has raced over traditional manufacturers who depend on a few distributors and retailers for sales.
Brand commitment is an important element in the sale of power tools. If a client is loyal to a particular brand, they will be less prone to the messages of competitors. Additionally they are more likely to buy the client's product time and time again and recommend it others.
To be successful to be successful in the United States market, you need to have an organized strategy. This means adapting your tools to meet local needs, positioning your brand in a competitive manner, and leveraging marketing channels and distribution channels. It is also important to collaborate with local authorities, industry associations, and experts. You can be sure that your power tool is in line with the standards and regulations of the country if you follow these guidelines.
Tip 2: Know Your Products
In a market where quality of the product is so important, retailers should know the products they sell. This will allow them to make informed decisions about what they offer. This knowledge could make the difference between making a good or a poor sale.
For example knowing which tool is ideal for the particular task can help you connect your customer with the best tool to meet their requirements. This will allow you to 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 help you understand your customers' needs. For instance the increasing number of homeowners are taking on home renovation projects requiring the use of power tool. This can result in an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, however Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this the fact that sales on both stores and online are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to repair a broken one or to tackle an upcoming project. Both of these can be used to increase sales and additional sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all purchases for power tools are the result of planned replacements. The customers might require additional accessories or upgrade to a better-performing model.
If your customer is an experienced DIYer or new to the hobby, they'll require replacing their carbon brushes for power tools drive belts, drive belts, and power cords over time. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
Technicians consider three key items when buying power tools: application, how it will be used and safety. These factors aid technicians in making informed decisions about the best tools to use in their repairs and maintenance work. This enables them to maximize the efficiency of their tools and lower the cost of owning it.
Tip 4: Keep up to date with technology
The most modern power tools, for example they feature smart technology that improves the user's experience and differentiates them from rivals who depend on older battery technology. B2B wholesalers who stock and sell these tools 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 foot department for tools is a testament to the importance of staying current with the latest technologies. "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 each year."
In addition to embracing latest technologies, B2B wholesalers should also focus on improving existing models. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are crucial for many professional contractors who use the tools for a lengthy period of time. The power tool industry is split into the consumer and professional segments. This means that major players are constantly working to improve their designs and come up with new features to reach a wider public.
Tip 5: Create a Point of Sale
The landscape of e-commerce has transformed the market for power tools. The advancements in data collection techniques have allowed business professionals to gain an entire perspective of market trends and help them develop strategies for inventory and marketing more efficiently.
Point of sale (POS) information for instance, allows you to track the types of projects DIYers undertake when purchasing tools and accessories. Knowing the kinds of projects your customers are undertaking enables you to offer additional sales and upsell opportunities. It also allows you to anticipate the needs of your customers making sure you have the correct products on hand.
Moreover, transaction data enables you to spot trends in the market and adjust your production cycles accordingly. For instance, you can use this data to monitor fluctuations in your brand's or market share of retail partners, enabling you to align your product strategies with consumer preferences. In the same way, you can utilize POS data to improve inventory levels and reduce the chance of overstocking. It can also assist you to evaluate the effectiveness of promotions.
buy power tools : Create an Point of Service
Power tools is a high-profit complex market that requires significant sales and marketing efforts to remain competitive. The most common methods of gaining an advantage in this market have been by establishing pricing or positioning of products, but these tactics no longer work in today's omnichannel marketplace where information is distributed rapidly.
Retailers who concentrate on service are more likely to retain 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. His department initially featured a variety of brands. However, as he listened to contractors, he discovered that they were loyal to their preferred brand.
To win their business, Karch and his team first ask customers what they want to do with the tool, then show them the tools they have available. This gives them the 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 to blame their vendor for a tool failure during the course of work.
Tip 7: Make an effort to be a Point of Customer Service
Power tool retailers are facing a fiercely competitive market. People who have had success in this area tend to have a strong commitment to a brand rather than simply carrying a few manufacturers. The amount of space a retailer can devote to a specific category could affect the number of brands they carry.
When customers come in to purchase power tools and require assistance, they usually need help selecting the right product. Sales associates can offer expert advice to customers looking to replace a broken device or completing an upgrade project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are educated to ask the right questions to make a sale. He says they begin by asking the buyer what he or she plans to do with the item. "That's the key to determining the type of tool to offer them," he adds. Then, they inquire about the project and the level of experience they have with different kinds of projects.
Tip 8: Make sure to be sure to mention your warranty
The warranty policies of power tool manufacturers differ greatly. Some manufacturers offer a comprehensive warranty, while others offer more limited warranties or do not offer warranties for certain tools. Before purchasing a tool, it is crucial that the retailer understands the distinctions. Customers will only purchase 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 tools department as well as an repair shop within the premises that can handle 50 lines of tools. He has discovered through the years that a majority of his contractors are loyal to their brands, which is why he focuses on the most popular brands rather than trying to carry a sampling of different products.
He also likes that his employees have the opportunity to meet with vendors one-on-one to discuss new products and provide feedback. This type of personal interaction is crucial as it helps build trust between the retailer and customers. Good relationships with suppliers can even lead to discounts on future purchases.
