Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both consumer and professional use. Despite a 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 in terms of dollar share. Lowe's follows closely. Both are competing with power tools made in China.
Tip 1: Create an Efficacious Brand Commitment
Many manufacturers of industrial products prioritize sales over marketing. This is because a long-term purchase requires a lot of back and forth communication and in-depth knowledge of the product. buy power tools of communication is not suitable for emotional marketing strategies.
But, companies that produce industrial tools should rethink their marketing strategy. The digital age has overtaken traditional companies that rely on a few distributors and retail outlets to sell their products.
One of the most important factors in selling power tools is brand loyalty. When a customer is committed to a brand they are less prone to messages from competitors. Moreover they are more likely to buy the client's product repeatedly and recommend it to others.
You need a well-planned plan to be successful in the US market. This includes adapting tools to local requirements and positioning brands in a way that is competitive, and leveraging marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also essential. When you do this you can be sure that the power tools you purchase conform to the laws of the country and standards.
Tip 2: Know Your Products
Retailers must be aware of the products they are selling particularly in a market which places a great value on product quality. This will allow them to make informed decisions about the products they can offer their customers. This knowledge could also be the difference between a good sale and a poor one.
For example, knowing that a tool is best suited to a particular project will help you connect your customer with the right tool to meet their requirements. You will build trust and a sense of loyalty among your customers. This will give you confidence that you provide an entire service.
Understanding DIY cultural trends can help you understand your customers' needs. As an example, more homeowners are undertaking home renovations that require the use of power tool. This can lead a spike in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16 percent. However, Ryobi and Craftsman have seen their share decrease year-over-year. Despite this the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why a consumer makes a power purchase is to either replace a tool that has been damaged or failed or to embark on a new project. Both offer opportunities for upsells or additional sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of purchases for power tools were the result of an anticipated replacement. These customers may require additional accessories or upgrade to a better-performing 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 in time. These essentials will ensure that your customer gets the most out of their investment.
Technicians consider three key items when buying power tools the application, the way it will be used and safety. These aspects help technicians make informed choices when selecting the right tools for maintenance and repair work. This enables them to maximize the performance of their tool and lower the cost of owning it.
Tip 4: Continue to Keep Up With Technology
For example, the latest power tools offer smart technology that improves the user experience and differentiates them from other tools that rely on older battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by targeting tech savvy contractors and professionals.
Karch's business, which has more than 30 years of experience, and a 12,000 square foot department for tools, is a testament to the importance of keeping current with the latest technologies. "Manufactures are constantly changing the look of their products," he says. "They used to keep their designs for five or ten years, but now they're changing them every year."
In addition to embracing the latest technologies, B2B wholesalers should also be looking to improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can lessen fatigue caused by long-term use. These features are essential for many professionals who must utilize the tools for lengthy periods. The power tools industry is divided into professional and consumer groups which means that the major players are always working on improving their designs and developing new features to appeal to an even larger audience.
Tip 5: Create a point of Sales
The e-commerce landscape has transformed the market for power tools. Advancements in data collection methods allow professionals in the field to get an overall perspective of market trends and help them develop marketing and inventory strategies more effectively.
Using data from the point of sale (POS), you can track DIY projects your customers are completing when purchasing power tools and other accessories. Knowing what projects your customers are working on permits you to offer upsells and add-ons. It helps you anticipate your customers' needs, so that you always have the right products on hand.
You can also use transaction data to determine market trends, and adjust production cycles in line with these trends. For instance, you can make use of this information to track fluctuations in your brand and the market share of your retail partners and help you adapt your product strategies to consumer preferences. POS data can also be utilized to optimize inventory levels, which reduces the risk of stocking up. It can also help you to evaluate the effectiveness of promotional campaigns.
Tip 6: Create a Point of Service
Power tools is a profitable, complex market that requires significant sales and marketing efforts to stay competitive. In the past an advantage in this market was accomplished by establishing prices or positioning of products. However, these tactics are no longer effective in today's multichannel environment, where information is easily communicated.
Retailers that focus on customer service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin has a 12,000 square-foot department for power tools. At first, the department offered various brands, but as he listened to customers who were contractors, he learned that most were loyal to a particular brand.
Karch and his staff members ask their customers what they plan to do with a tool before presenting them with the alternatives. This gives them the confidence to recommend the best tool for the job, and builds trust with the customer. Customers who are familiar with their product well are less likely to blame their retailer for a tool failure on the job.
Tip 7: Create a Point of Customer Service
The power tool market has become a highly competitive category for hardware retailers. Those who are successful in this area tend to be more committed to a single brand rather than to carry a variety of manufacturers. The amount of space that a retailer can devote to a category may also determine the number of brands they are able to carry.
Customers usually require assistance when they come in to purchase a power device. Sales associates can offer professional advice to customers looking to replace a broken device or completing a renovation project.
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 make an offer. They begin by asking the customer about what they intend to do with the item. "That's how you decide what kind of tool you need," he says. Then, they inquire about the experience of the customer with different types of projects as well as the project.
Tip 8: Create an End of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are completely complete, while others aren't as generous or refuse to cover certain aspects of the tools at all. Before purchasing a tool, it is crucial that the retailer understands the distinctions. Customers will only purchase tools from companies that will back them up.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000-square-foot power tool department and an repair shop within the premises that can handle 50 models of tools. He has realized over time that a lot of his contractor customers are brand loyal, so the company prefers to stick to a limited number of brands rather than offer a variety of products.
He also likes that his employees meet with vendors one-on-one to discuss new products and give feedback. This personal contact is crucial because it helps build trust between the store's customers and employees. Building strong relationships with suppliers may lead to discounts on future purchases.