Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and consumers. Despite an expected 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 in sales of power tools. Lowe's is close behind. Both are competing with power tools made in China.
Tip 1: Make an Engagement to Brands
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term selling process involves a lot of back and forth communication and detailed knowledge of the product. This type of communication is not suitable for emotional marketing strategies.
Nevertheless, industrial tools manufacturing companies must rethink their approach to marketing. The digital age has raced past traditional companies that rely on a small group of retailers and distributors for sales.
Brand commitment is a key factor in power tool sales. If a customer is loyal to a particular brand, they will be less sensitive to communications from competitors. They are also more likely to buy the product of the customer again and to recommend them to others.
You require a well-planned strategy to make an impact on the American market. This includes adapting your tools to local needs, positioning brands in a competitive manner, and making use of distribution and marketing platforms channels. It is also crucial to work with local authorities as well as industry associations and experts. When you do this you can ensure that the power tools you purchase conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
In a marketplace where quality of the product is so crucial, retailers should be aware of the products they sell. This will allow them to make informed choices about what they can offer their customers. This knowledge can also make the difference between a good sale and a bad one.
Knowing that a certain tool is suitable for a particular project will assist you in matching the perfect tool to your customer's needs. You will build trust and loyalty among your customers. It will also give you the confidence that you're providing the complete solution.
In addition, understanding the trends in DIY culture can help you comprehend what your customers want. As an example the increasing number of homeowners are taking on home improvement projects that require the use of power tools. This can result in a surge in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most frequent reason why a consumer makes a power purchase is to replace a tool that has been damaged or been damaged or broken, or to embark on the task of a new one. Both offer opportunities for upsells and add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of power tool purchases resulted from an anticipated replacement. Customers may require additional accessories, or upgrade to a more powerful model.
If your customer is experienced in DIY or is new to the hobby, they will need to replace their carbon brushes, drive cords, and the power cords on their power tools as time passes. Keeping up with these essentials will help your customer get the most value from their investment.
When buying power tools, technicians look at three factors: the application the power source, and security. These aspects help technicians make informed choices when selecting the appropriate tools for their maintenance and repair tasks. This helps them optimize the performance of their tools and lower the cost of ownership.
Tip 4: Always Keep Up With Technology
For example, the latest power tools offer smart technology that improves users' experience and sets them apart from competitors that still depend on old-fashioned battery technology. Wholesalers of B2B that stock and sell these devices can increase sales by targeting professional and tech-savvy contractors.
Karch's business, which has more than 30 years of experience, and a 12,000 square foot tooling department is a testimony to the importance of keeping up-to-date with new technologies. He says that manufacturers are constantly changing their product designs. "They were able to hold their designs for five or ten years, but now they are changing them every year."
B2B wholesalers must not only adopt the latest technology, but also upgrade their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are important for many professionals who must make use of the tools for long durations. The industry of 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 an even larger audience.
Tip 5: Create a Point of Sale
The e-commerce market has changed the power tools market. Advancements in data collection methods have enabled business professionals to gain a holistic overview of market trends, allowing them to shape marketing and inventory strategies more efficiently.
Using information from the point of sale (POS) You can track DIY projects that customers are completing when purchasing power tools and accessories. Knowing what projects your customers are working on permits you to increase sales and provide extras. It helps you anticipate your customers' needs to ensure that you have the appropriate products on your shelves.
You can also use transaction data to spot trends in the market and adapt production cycles accordingly. For instance, you can use this data to monitor fluctuations in your brand's or the market share of your retail partners which allows you to adapt your product strategies to consumer preferences. Similarly, you can use POS data to improve inventory levels and reduce the chance of overstocking. It can also be used to assess the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a high-profit, complex market that requires substantial sales and marketing efforts to remain competitive. In the past a competitive advantage in this market was achieved by establishing prices or positioning of products. However, these tactics are not as effective in the current multichannel environment, where information is readily communicated.
Retailers who provide 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. In the beginning, his store featured various brands, but as he began listening to contractor customers, he discovered that the majority were brand loyal.
Karch and his team ask their customers what they plan to do with the tool prior to showing them the alternatives. This gives them the confidence to recommend the appropriate tool for a job, and also builds trust with customers. Customers who are familiar with their product well are less likely to blame their supplier for a malfunctioning tool on the job.
Tip 7: Become a guru in customer service
Power tool retailers are in an extremely competitive market. Those who are successful in this market tend to be more loyal to a specific brand rather than to carry a variety of brands. The size of the space a retailer must devote to this category can be a factor in the amount of brands it is able to carry.
Customers frequently require assistance when they come in to purchase a power device. If they're replacing an old tool damaged or undertaking the task of renovating, customers need expert advice from sales associates.
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 a sale. He says they begin by asking the customer what they plan to use the product. "That's the primary factor in deciding the type of tool to offer them," he adds. Then they ask about the experience of the customer with different types of projects as well as the project.
Tip 8: Create a Point of Warranty
The makers of power tools vary widely in their warranty policies. Some are completely comprehensive, while some are stingy or even do not cover certain components of the tool at all. It's crucial for retailers to know the differences prior to 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 a 12,000 square foot power tool department as well as a repair shop on site that repairs 50 different lines of tools. He has learned that many of his contractors are loyal to a particular brand. So, he chooses to carry a select few brands instead of trying to carry samples of different products.
He is also pleased that his employees have the ability to meet with vendors one-on-1 to discuss new products and give feedback. This personal contact is important because it helps to build trust between the store and its customers. Having power tool near me with suppliers could result in discounts on future purchases.