Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and users. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, demand remains near or at levels prior to the pandemic.
Home Depot is the leader in sales of power tools based on dollar share. Lowe's is not far behind. Both are however facing stiff competition from China-manufactured power tools.
Tip 1: Make an Efficacious Brand Commitment
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 and detailed knowledge of the product. This type of communication does not lend itself to emotional consumer marketing techniques.
However, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small circle of retailers and distributors to sell their products.
The key to power tool sales is brand loyalty. If a client is committed to a specific brand they are less receptive to competitor's messages. In addition they are more likely to buy the item of the customer time and time again and recommend it others.
You need a well-planned plan to have an impact on the American market. This means adjusting your tools to meet the local requirements and positioning your brand in a strategic manner, and leveraging distribution channels and marketing platforms. Collaboration with local authorities and associations, as well as experts is also essential. In this way you can ensure that your power tools will conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they offer, especially in a market which places a great importance on the quality of products. This will allow them to make informed choices about the products they offer. This knowledge can also make the difference between a good sale and a bad one.
For example knowing which tool is suitable for the particular task will help you connect your customer with the best tool for their requirements. This will aid in building trust and loyalty with your customers. This will give you confidence that you provide a complete service.
Understanding DIY culture trends can also help you better understand your customers' requirements. As an example, more homeowners are undertaking home renovation projects requiring the use of power tool. This can result in a surge in the sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have seen their share decrease year-over-year. However the fact that sales on both stores and online are growing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace a broken one or to tackle an upcoming project. Both offer opportunities for upsells and additional 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.
Whether your customer is a seasoned DIYer or is new to the hobby, they will likely require replacing their carbon brushes for power tools drive belts, drive belts, and power cords over time. These essentials will ensure that your customer gets the most out of their investment.
Technicians must consider three important aspects when making power tool purchases: application, how it will be operated and safety. These aspects allow technicians to make informed choices when it comes to selecting the appropriate tools for their maintenance and repair tasks. This enables them to maximize the effectiveness of their tool and lower the expense of owning it.
Tip 4: Stay up-to-date with the latest technologies.
For instance, the latest power tools feature advanced technology that enhances users' experience and differentiates them from other brands that still rely on older battery technology. Wholesalers in B2B who carry and sell these tools can boost sales by targeting tech savvy contractors and professionals.
For Karch who's business has more than three years of experience and a 12,000 square-foot tool department, staying current with new technologies is essential. "Manufactures are constantly adjusting 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 each year."
B2B wholesalers should not just adopt the latest technology, but also enhance their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are essential to professionals who employ the tools over a long period of time. The industry of power tools is divided into consumer and professional groups and this means that the biggest players are constantly enhancing their designs and creating new features to appeal to an even larger audience.
Tip 5: Create a Point of Sale
The e-commerce landscape has transformed the market for power tools. Advancements in data collection methods have enabled professionals in the field to get an overall view of market trends which allows them to design strategies for inventory and marketing more effectively.
Point of sale (POS) data can, for example, allow you to track the types of projects DIYers tackle when they purchase tools and accessories. Knowing what projects your customers are working on permits you to upsell and offer additional products. It also helps you to anticipate the needs of your customers making sure you have the appropriate products available.
You can also utilize transaction data to identify trends in the market, and then adapt production cycles accordingly. For instance, you can utilize this data to track fluctuations in your brand's and retail partners market shares. This allows you to align your strategy for product to consumer preferences. Additionally, you can make use of POS data to improve levels of inventory and decrease the risk of stocking up. It can also be used to determine the effectiveness of promotions.
Tip 6: Create an Point of Service
Power tools are a complicated, high-profit market that requires a substantial amount marketing and sales efforts to stay competitive. The classic ways to gain a strategic advantage in this field have been by establishing pricing or positioning of products, but these methods are no longer effective in today's omnichannel marketplace where information is shared so quickly.
Retailers who concentrate on 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. The department was initially home to various brands. However, as he listened to contractors, he noticed that they were loyal to their preferred brand.
Karch and his staff members ask their customers what they plan to do with the tool before presenting them with the possibilities. This gives them the confidence to recommend the best tool for the job and builds trust with customers. Customers who are familiar with their product well are less likely to blame their supplier for a malfunctioning tool during the course of work.
Tip 7: Become a customer service guru
Power tool retailers face an extremely competitive market. People who succeed in this market tend to be more loyal to a specific brand rather than to carry a variety of brands. The amount of space that a retailer can devote to a specific category could influence how many brands they carry.
Customers frequently require assistance when they visit to purchase a power tool. Sales associates can offer professional advice to customers who are looking to replace a broken tool or are planning a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is educated to ask questions that could lead to a sale. He says they begin by asking the customer what they intend to use the product. "That's the way to determine what kind of tool you need," he says. Then they ask about the experience of the customer with various types of projects and the project.
Tip 8: Make sure to make mention of your warranty
The warranties of the manufacturers of power tools are quite different. Some are completely complete, while others are stingy or even do not cover certain components of the equipment. Before buying a product, it is crucial that the retailer understands the distinctions. Customers will only buy tools from companies that will guarantee their products.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. powertools online has an 12,000 square foot power tool shop and repair shop on site that repairs 50 different lines of tools. He has discovered over time that a lot of his contractors are loyal to their brands, which is why he focuses on the most popular brands rather than carry a sampling of different products.
He also likes the fact that his employees meet with vendors one-on-one to discuss new products and provide feedback. This type of personal interaction is essential because it builds trust between the store's clients and employees. Good relationships with suppliers may lead to discounts on future purchases.