Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. The demand for power tools is at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 outbreak in 2021.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's follows closely behind. Both are competing against power tools manufactured in China.
Tip 1: Make an Engagement to Brands
Many manufacturers of industrial products prioritize sales over marketing. This is due to the fact that the long-term sales process requires a lot of back-and-forth communication and detailed knowledge of the product. This kind of communication isn't suitable for emotional marketing strategies.
But, companies that produce industrial tools need to rethink their marketing strategy. buy power tools has outpaced traditional manufacturers who depend on a few distributors and retail outlets to sell their products.
The key to selling power tools is brand commitment. When a customer is adamant about a particular brand, they are less sensitive to the messages of competitors. 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 means adapting your tools to local needs and positioning your brand in a competitive manner, and leveraging marketing platforms and distribution channels. Collaboration with local authorities, associations and experts is also essential. You can be certain that your power tool is in line with the standards and regulations of the country when you do this.
Tip 2: Be aware of Your Products
In a marketplace where quality of the product is so important, retailers should know the products they sell. This will enable them to make informed decisions about what they offer. This information can be the difference between a successful or bad sale.
Knowing which tool is ideal for a particular project will aid in matching the right tool to the requirements of your customer. You'll earn trust and a sense of loyalty among your customers. It will also give you the confidence that you're offering the complete solution.
Understanding DIY culture trends can also help you understand your customers' requirements. For example, a growing number of homeowners are tackling home improvement projects that require the use of power tools. This could lead to a rise in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair the broken one or tackle the new project. Both provide opportunities for upsells or 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 for power tools were the result of an anticipated replacement. Customers may require additional accessories or upgrade to a better-performing model.
Whether your customer is a seasoned DIYer or just starting out in the hobby, they will likely need to replace their power tools' carbon brushes as well as drive belts and power cords over time. Keeping up with these essentials will help your customer get the most out of their investment.
When buying power tools, technicians take into consideration three aspects: the tool's application, the power source and security. These factors aid technicians in making informed decisions about the best tools to use for their maintenance and repairs. This will help them maximize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Keep Keeping Up With Technology
The most modern power tools, like, offer smart technology which enhances the user experience and differentiates them from competitors who still rely on old-fashioned battery technology. B2B wholesalers who stock and sell these tools can increase sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three decades of experience and a 12,000-square-foot tool department, staying current with new technologies is essential. He says that manufacturers are constantly changing their product designs. "They used to hold their designs for five or ten years, but now they're changing them every year."
In addition to embracing modern technologies, B2B wholesalers should also be looking to improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can decrease fatigue caused by long-term use. These features are essential to many contractors working in the field who utilize the tools for a long period of time. The market for power tools is divided 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 appeal to a wider audience.
Tip 5: Create a point of Sales
The e-commerce landscape has transformed the power tools market. The advancements in data collection techniques have allowed business professionals to get an entire perspective of market trends which allows them to design strategies for inventory and marketing more effectively.
Point of sale (POS) information, for instance, allows you to monitor the kinds of projects DIYers undertake when purchasing power tools and accessories. Knowing the kinds of projects your customers are working on enables you to provide additional sales and opportunities to upsell. It also helps you to anticipate the requirements of your customers, ensuring that you have the correct products available.
Additionally, transaction data can help you to identify market trends and adjust your production cycles accordingly. For instance, you can utilize this data to monitor changes in your retail partners' and your brand's' market shares. This allows you to align your strategy for product to the preferences of consumers. In the same way, you can utilize POS data to optimize inventory levels and reduce the risk of overstocking. It is also used to evaluate the effectiveness of promotional campaigns.
Tip 6: Make a Point of Service
Power tools is a high-profit, complex market that requires significant marketing and sales efforts in order to remain competitive. In the past, getting a competitive advantage in this market was accomplished through pricing or positioning products. However, these strategies are no longer effective in today's world of omnichannels where information is easily communicated.
Retailers who concentrate on service are more likely to retain customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, runs a 12,000 square foot power tool section. The department was initially home to a variety of brands. However when he spoke to contractors, he realized that they were loyal to their favorite brand.
To win their customers, Karch and his team first ask their customers what they would like to accomplish with the tool, then show them the tools they have available. This gives them the confidence to recommend the appropriate tool for a job, and creates trust with customers. Customers who are familiar with their product well are less likely to blame their supplier for a tool failure on the job.
Tip 7: Make an effort to be a Point of Customer Service
Power tool retailers are facing a fiercely competitive market. Those who are successful in this area tend to be more loyal to a single brand rather than to carry a variety of manufacturers. The amount of space that a retailer needs to devote to this category can be a factor in the number of brands it can carry.
When customers visit a store to purchase power tools they may need assistance choosing a product. Sales associates can offer expert advice to customers who are seeking to replace a damaged tool or undertaking a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is educated to ask questions that could result in an offer. They start by asking what the buyer is planning to do with the tool, he says. "That's the way to determine what kind of tool they require," he says. Then, they inquire about the project and what level of experience they have with various types of projects.
Tip 8: Be sure to make mention of your warranty
The warranty policies of the manufacturers of power tools differ greatly. Some are fully comprehensive, while some are stingy or even refuse to cover certain parts of the equipment. It's important for retailers to be aware of these differences before buying, since buyers will purchase tools from companies that back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square-foot power tool shop and an on-site repair shop that repairs 50 different lines of tools. He has discovered that a lot of his contractor clients are loyal to their brands. So, he chooses to carry a select few brands instead of trying to offer samples of various products.
He also appreciates that his employees have one-on-one meetings with vendors to discuss new products and give feedback. This kind of interaction is essential because it helps to establish trust between the store and the customers. Good relationships with suppliers could even result in discounts on future purchases.