Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both consumer and professional use. The demand for power tools remains at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 outbreak in 2021.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is close behind. Both are competing with power tools manufactured in China.
Tip 1: Commit to a brand
Many manufacturers of industrial products put an emphasis on sales and marketing. This is because the long-term selling process requires a lot back-and-forth communication and detailed knowledge of the product. This type of communication does not permit emotional marketing strategies.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital age has raced past traditional companies that rely on a small group of distributors and retailers for sales.
One of the most important factors in power tool sales is brand loyalty. When a customer is committed to a brand and is loyal to a brand, they are less sensitive to communications from competitors. Additionally they are more likely to purchase the product of the client again and recommend it to 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 local needs, positioning brands in a manner that is competitive and using marketing platforms and distribution channels. It is also essential to work with local authorities, industry associations, and experts. You can be assured that your power tool is in line with the standards and regulations of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they sell especially in a marketplace which places a great value on the quality of the product. This will help them make informed choices about what they can offer their customers. This knowledge can also make the difference between a good deal and a bad one.
For instance knowing which tool is suitable for a particular project will help you match your client with the appropriate tool to meet their requirements. This will help you build trust and loyalty with your customers. This will help you feel confident that you are offering a complete service.
In addition, understanding the trends in DIY culture will help you comprehend what your customers want. For instance the increasing number of homeowners are taking on home renovation projects requiring the use of power tools. This can lead a spike in sales of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, while Ryobi and Craftsman brands have seen their share decline year-over-year. However the fact that both in-store and online purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most common reason that a buyer makes a tool purchase is to replace one that has broken down or to take on the task of a new one. 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 a planned replacement. Customers may require additional accessories or upgrade to a higher-performing model.
If your customer is an experienced DIYer or new to the hobby, they will likely need to replace their carbon brushes for power tools, drive belts and power cords with time. These essentials will ensure that your customer gets the most from their investment.
Technicians take into consideration three main aspects when buying power tools: application, how it will be powered and safety. These factors help technicians make educated decisions about the most suitable tools to use in their repairs and maintenance tasks. This allows them to maximize the efficiency of their tools and lower the expense of owning it.
Tip 4: Keep up to date with technology
The most recent battery tools, for instance are equipped with smart technology that enhances the user experience and sets them aside from rivals who rely on old-fashioned battery technology. Wholesalers of B2B that stock and sell these devices can boost sales by targeting tech-forward contractors and professionals.
For Power Tools Online , which has more than three years of experience and a 12,000 square-foot department for tools, staying up with the latest technologies is crucial. "Manufactures are constantly changing the design of their products," Karch says. "They used to hold their designs for five or 10 years, but now they're changing them every year."
In addition to taking advantage of the most recent 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 crucial for many professional contractors who need to utilize the tools for lengthy periods. The power tool industry is split into the consumer and professional segments. 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 Sales
The online marketplace has transformed the power tools market. Modern methods for data collection have enabled business professionals to get a holistic overview of market trends and help them develop marketing and inventory strategies more effectively.
Using information from the point of sale (POS), you can track DIY projects your customers complete when purchasing power tools and accessories. Knowing what projects your customers are working on permits you to upsell and offer add-ons. It helps you anticipate your customers' needs to ensure that you have the appropriate products on your shelves.
Additionally, transaction data can help you to spot trends in the market and adjust your production cycles accordingly. For example, you can use this data to monitor fluctuations in your brand's or the market share of your retail partners and help you match your product strategies to consumer preferences. In the same way, you can utilize POS data to improve inventory levels and reduce the risk of stocking up. It can also be used to assess the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a profitable complex market that requires significant sales and marketing efforts to remain competitive. In the past, getting a competitive advantage in this market was accomplished through pricing or positioning products. However, these tactics are not as effective in the current multichannel environment, where information is readily communicated.
Retailers who are committed to providing a high level of providing excellent 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. Initially, his department featured a sampling of brands, but as he began listening to customers who were contractors, he learned that most were brand loyal.
To be successful in their customers' business, Karch and his team first ask their customers what they want to do with the tool before showing 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 supplier for a malfunctioning tool on the job.
Tip 7: Become a customer service guru
The power tool market has become a very competitive area for hardware retailers. Those who have seen success in this area tend to make a strong commitment to a brand rather than simply carrying a few manufacturers. The amount of space a retailer must dedicate to this category could also play a role in the amount of brands it is able to carry.
Customers frequently require assistance when they visit to buy a power tool. Sales associates can provide the best advice to customers who are looking to replace a damaged tool or are planning a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions in order to make a sale. They begin by asking the buyer what they intend to do with the item. "That's the key to determining the kind of tool to market them," he adds. The next step is to inquire about the project and what kind of experience the client has with different types of projects.
Tip 8: Make a Point of Warranty
The warranty policies of power tool manufacturers differ greatly. Some are completely comprehensive, while others aren't as generous or do not cover certain components of the equipment. Before buying a product, it is essential that retailers understand the distinctions. Customers will only buy tools from companies that will provide a warranty.
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 in-house that handles 50 lines of tools. He has learned through the years that a majority of his customers who are contractors are loyal to a particular brand, so the company prefers to stick to a limited number of brands rather than trying to carry a sampling 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 share feedback. This type of personal interaction is crucial because it helps build trust between the store and the customers. Good relationships with suppliers could even result in discounts for future purchases.