Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. The demand for power tools remains at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic that will hit 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 however being pushed by China-made power tools.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products put a higher priority on sales and marketing. This is because a long-term purchase requires a lot back-and forth communication and in-depth knowledge of the product. This type of communication does not lend itself to emotional consumer marketing strategies.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital world has raced past traditional manufacturers who rely on a few retailers and distributors to sell their products.
The key to selling power tools is brand commitment. 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 purchase 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 and positioning your brand in a strategic way, and making use of marketing channels and distribution channels. It is also essential to cooperate with local authorities, industry associations, and experts. You can be assured that your power tool will be in compliance with the requirements and standards of the country if you follow these guidelines.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they sell especially in a marketplace that places such a high importance on the quality of products. This will help them make informed decisions about what they are selling. This information can make the difference between a successful sale and a poor one.
For instance, knowing that a tool is suitable for the particular task will help you connect your client with the appropriate tool for their requirements. You'll earn trust and a sense of loyalty among your customers. This will ensure that you provide the complete service.
Understanding DIY cultural trends can help you better understand the needs of your customers. For instance, a growing number of homeowners are taking on home renovation projects that require the use of power tools. This could lead to a rise in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair a broken one or to tackle a new project. Both of these can be used to increase sales 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 purchases of power tools resulted from an anticipated replacement. These customers often require additional accessories or may require upgrading to better performing models.
If your customer is a seasoned DIYer or is new to the hobby, they'll require replacing their power tools' carbon brushes drive belts, drive belts, and power cords with time. These essentials will ensure that your customer reaps the maximum benefit out of their investment.
Technicians take into consideration three main aspects when purchasing power tools: application, how it will be used and safety. These aspects allow technicians to make informed choices when selecting the right tools for maintenance and repair work. This helps them maximize the effectiveness of their tool and reduce the expense of owning it.
Tip 4: Keep up-to-date with the latest technologies.
The latest power tools, like are equipped with smart technology that improves the user's experience and sets them apart from competitors who still rely on old-fashioned battery technology. Wholesalers in B2B who carry and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's business, with more than 30 years of experience and a 12,000 square foot tool department, is a testament to the importance of staying up-to-date with the latest technology. "Manufactures are constantly changing the design of their products" Karch says. "They were able to hold their designs for 5 or 10 years but now they are changing them every year."
B2B wholesalers should not just embrace the latest technologies but also enhance their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the strain caused by long use. These features are crucial for a large number of professional contractors who need to make use of the tools for long durations. The industry of power tools is divided into consumer and professional groups, which means that major players are always working on improving their designs and developing new features to reach an even larger audience.
Tip 5: Create a Point of Sales
The landscape of e-commerce has transformed the market for power tools. Data collection techniques have been improved and business professionals can gain a better understanding of the market. This allows them to develop more efficient inventory and marketing strategies.
Using information from the point of sale (POS), you can track DIY projects your customers undertake when buying power tools and other accessories. Knowing what projects your customers are working on enables you to increase sales and provide additional products. It helps you anticipate your customers' needs, so that you always have the right products in hand.
Additionally, transaction data can help you to detect trends in the market and adjust your production cycles accordingly. You can, for example, use this data to track fluctuations in your retail partners' and your brand's market share. This will allow you to align product strategies with consumer preferences. In the same way, you can utilize POS data to improve levels of inventory and decrease the chance of overstocking. It can also help you to assess the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a high-profit complex market that requires significant marketing and sales efforts to stay competitive. In the past an advantage in this market was accomplished by pricing or positioning products. However, these tactics are no longer effective in today's omnichannel environment where information is readily communicated.
Retailers who provide a high level of providing a high-quality service are more likely to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin is the owner of a 12,000-square-foot department for power tools. At first, the department offered various brands, but when he began listening to customers who were contractors, he discovered that the majority were brand loyal.
buy power tools and his team ask their customers what they intend to accomplish using a tool prior to showing them the options. This gives them the confidence to recommend the right tool for a job, and also increases trust with their customers. Customers who are familiar with their product are less likely than others to blame the store for the failure of a tool on the job.
Tip 7: Make a point of customer service
Power tool retailers are in a fiercely competitive market. People who succeed in this market tend to be more committed to a single brand rather than to carry a variety of manufacturers. The amount of space that a retailer is able to devote to a specific category could influence how many brands they are able to carry.
buy power tools need assistance when they come in to purchase a power device. Whether they are replacing an old tool that is broken or tackling the task of renovating, customers need expert guidance from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is educated to ask the right questions to help make a sale. They start by asking what the customer is planning to use the tool, he adds. "That's the primary factor in deciding the kind of tool to sell them," he adds. Next, they ask about the project and the level of experience the customer has with various types of projects.
Tip 8: Create an End of Warranty
The warranty policies of power tool manufacturers are very different. Some manufacturers offer a comprehensive warranty, while others are more limited or refuse to cover certain tools. It's important for retailers to understand these differences 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 department as well as repair shop on site that repairs 50 different types of tools. He has realized through the years that a majority of his customers who are contractors are loyal to their brands, which is why the company prefers to stick to only a few brands rather than offer a variety of products.
He also likes the fact that his employees have one-on-one meetings with vendors to discuss new products and share feedback. This personal contact is crucial because it helps build trust between the store's clients and employees. Good relationships with suppliers may even result in discounts on future purchases.