Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains close to or at levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely behind. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Be committed to a brand
Many industrial products manufacturers prioritize sales over marketing. This is due to the fact that 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 isn't ideal for marketing that is based on emotion.
However, industrial tool manufacturing companies must rethink their approach to marketing. The digital world has raced past traditional companies that rely on a small circle of distributors and retailers for sales.
A key to power tool sales is brand loyalty. If a client is committed to a specific brand and brand, they are less responsive to the messages of competitors. In addition, they are more likely to buy the client's product time and time again and recommend it others.
To make a successful impact on the United States market, you need to have a well-planned strategy. This includes adapting your tools to meet the local requirements, positioning your brand in a competitive manner, and leveraging marketing channels and distribution channels. It is also essential to cooperate with local authorities as well as industry associations and experts. You can be certain that your power tool will be in compliance with the requirements and standards of the country if you do this.
Tip 2: Know Your Products
In a world where product quality is important, retailers must be aware of the products they sell. This will help them make informed decisions about what they offer. This knowledge could make the difference between making a good or a poor sale.
Knowing which tool is perfect for a specific project will assist you in matching the perfect tool to your customer's needs. This will allow you to build trust and loyalty with your customers. It will also give you the confidence that you're offering a complete solution.
In addition, understanding the trends in DIY culture can help you comprehend what your customers want. For instance, a growing number of homeowners are tackling home renovation projects that require 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 decrease 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 a consumer makes a power tool purchase is to replace one that has failed or to embark on an entirely new project. Both of these can be used to increase sales and add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all power tool purchases are the result of planned replacements. These customers typically require additional accessories or may need to upgrade to higher performance models.
Your customer may have experience in DIY or is new to the hobby, they will need to replace their carbon brushes, drive cords and power cords of their tools in time. Keeping up with these essentials will allow your customer to get the most out of their investment.
Technicians take into consideration three main aspects when making power tool purchases: application, how it will be used and safety. These aspects allow technicians to make informed decisions when choosing the right tools for repair and maintenance work. This helps them optimize the efficiency of their tools as well as lower the cost of ownership.
Tip 4: Always Keep Up with Technology
For instance, the latest battery tools have smart technology that improves users' experience and differentiates them from competitors that still depend on old-fashioned battery technology. Wholesalers in B2B who offer and sell these tools can increase 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 keeping current with the latest technologies. "Manufactures are constantly adjusting the design of their products," he says. "They used to hold their designs for five or ten years, but now they're changing them each year."
In addition to embracing latest technologies, B2B wholesalers should also concentrate on improving their 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 essential to professionals who employ the tools for a long period of time. The power tool industry is split into the consumer and professional segments. This means that the biggest players are constantly striving to improve their designs and come up with new features to reach a larger audience.
Tip 5: Make an Point of Sale
The online marketplace has changed the power tool market. Data collection methods have improved allowing business professionals to gain a better understanding of the market. This allows them to create more effective inventory and marketing strategies.
By utilizing information from the point of sale (POS) You can track DIY projects your customers are completing when purchasing power tools and other accessories. Knowing the type of projects your customers are working on allows you to offer additional sales and upsell opportunities. It also helps you to anticipate the needs of your customers, ensuring that you have the correct products on hand.
Additionally, transaction data can help you to identify market trends and adjust your production cycles accordingly. You can, for example make use of this information to monitor changes in your retail partners' and brand's market share. This will allow you to align your strategy for product to the preferences of consumers. In buy power tools online , you can utilize POS data to improve levels of inventory and decrease the risk of stocking up. It is also used to determine the effectiveness of promotional campaigns.
Tip 6: Create a Point of Service
Power tools are a tangled, high-profit market that requires a substantial amount of marketing and sales effort to remain competitive. In the past a competitive advantage in this market was achieved by pricing or positioning products. However, these tactics are no longer effective in today's world of omnichannels where information is easily shared.
Retailers who provide a high level of providing excellent service are more likely to keep customers coming back 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 department for power tools. His initial department featured various brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.
Karch and his team ask their customers what they would like to do with a tool before presenting them with the possibilities. This gives them the confidence to recommend the appropriate tool for the job and also builds trust with customers. power tools buy online who are familiar with their product are less likely to blame their supplier for a tool malfunction on the job.
Tip 7: Create a point of customer service
The power tool market has become a highly competitive market for hardware retailers. The retailers that have had success in this area tend to make a strong commitment to a particular brand rather than merely carrying a sampling of manufacturers. The amount of space a retailer must devote to the category may also affect the amount of brands it is able to carry.
When customers come in to purchase power tools and require assistance, they usually need help selecting a product. Sales associates can provide expert guidance to customers looking to replace a broken tool or are planning an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is educated to ask questions that will lead to the sale. They start by asking what the customer plans to do with the tool according to him. "That's the most important factor to consider when deciding the kind of tool to offer them," he adds. Next, they ask about the project and what level of experience the client has with various types of projects.
Tip 8: Make sure to mention your warranty
The makers of power tools vary widely in their warranty policies. Some are fully comprehensive, while others aren't as generous or refuse to cover certain aspects of the equipment. Before buying a product, it is crucial that the retailer understands the distinctions. Customers will only purchase tools from companies that provide 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 and repair shop on site that repairs 50 different types of tools. He has discovered that a lot of his contractor clients are brand loyal. So, he chooses to carry a limited number of brands rather than carry samples of different products.
He also likes that his employees can get one-on-one time with vendors to discuss new products and provide feedback. This personal contact is important as it helps create trust between the retailer and customers. Good relationships with suppliers may even result in discounts on future purchases.