Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. Despite a slowdown in 2021 due to the COVID-19 pandemic demand remains close to or at pre-pandemic levels.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's is not far behind. Both are competing against power tools manufactured in China.
Tip 1: Be committed to a brand
Many industrial product manufacturers place more emphasis on sales than marketing. This is because the long-term sales process involves a lot of back and forth communication and a thorough understanding of the product. This type of communication is not suitable for emotional marketing strategies.
However, companies that make industrial tools need to rethink their marketing strategy. The digital age has accelerated over traditional manufacturers who depend on a small circle of distributors and retailers for sales.
One of the most important factors in selling power tools is brand commitment. If a client is loyal to a particular brand they are less prone to messages from competitors. They are also more likely to purchase the client's products again and to recommend them to others.
To be successful on the United States market, you must have an organized strategy. This means adapting your tools to meet local needs and positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. In this way, you can be confident that the power tools you purchase conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
In a market where product quality is important, retailers should know the products they sell. This will enable them to make informed decisions about what they offer. This knowledge could make the difference between a successful or a poor sale.
For instance knowing that a particular tool is best suited to specific projects will allow you to match your customer with the best tool for their requirements. You will build trust and loyalty with your customers. This will help you feel confident that you are offering a complete service.
Understanding what are the best power tools can also help you better understand your customers' requirements. For power tools online uk , a growing number of homeowners are tackling home renovation projects which require power tools. This can lead a spike in the sale 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 decrease year-over-year. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace an old one or tackle the new project. Both provide opportunities for upsells or add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all purchases of power tools are the result of planned replacements. These customers may require additional accessories, or upgrade to a better-performing model.
If your customer is an experienced DIYer or new to the hobby, they'll require replacement of their carbon brushes for power tools, drive belts and power cords over time. Being on top of these important items will help your customer get the most out of their investment.
When buying power tools, technicians look at three factors: the application, the power source and security. These aspects help technicians make informed choices when it comes to selecting the right tools for their repair and maintenance work. This enables them to maximize the efficiency of their tools and lower the expense of owning it.
Tip 4: Stay current with the latest technology
The most recent power tools, like, offer smart technology which enhances user experience and differentiates them from those who rely upon old battery technology. Wholesalers of B2B who stock and sell these devices can increase sales by focusing on tech savvy contractors and professionals.
For Karch who's business has more than three years of experience and a 2,000-square-foot tool department, staying current with the latest technologies is crucial. He states that manufacturers are constantly changing their designs for their products. "They used to keep their designs for five or ten years, but they're now changing them each year."
B2B wholesalers should not just take advantage of the latest technologies, but also enhance their existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can lessen fatigue from prolonged use. These features are essential for professionals who employ the tools over a long period of time. The market for 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 more people.
Tip 5: Create a point of Sale
The online marketplace has changed the power tool market. Advancements in data collection methods allow business professionals to gain a holistic view of market trends, allowing them to shape inventory and marketing strategies more efficiently.
Point of sale (POS) data for instance, allows you to keep track of the types of projects DIYers tackle when purchasing power tools and other accessories. Knowing the types of projects your customers are working on enables you to provide additional sales and opportunities for upselling. It helps you anticipate your customers' needs, so that you always have the appropriate products on the market.
You can also utilize 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's and retail partners market share. This will allow you to align product strategies to the preferences of consumers. Similarly, you can use POS data to optimize inventory levels and reduce the risk of stocking up. It is also used to determine the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a complicated market that is high-profit and requires a significant amount of marketing and sales efforts to stay in the game. The most common methods of gaining an advantage in this market were through pricing or product positioning--but these tactics no longer work in the omnichannel world of today where information is distributed rapidly.
Retailers who focus on service are more likely to retain 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 power tool department. At first, the department offered several brands, but as he listened to the customers of contractors and found that the majority were loyal to a particular brand.
Karch and his team ask their customers what they would like to do with the tool before presenting them with the possibilities. This gives them the confidence to recommend the right tool for the job, and increases trust with their customers. Customers who are familiar with their product are less likely to blame the retailer for a failure of a tool for the job.
Tip 7: Be a customer service guru
The power tool market has become a highly competitive market for retailers of hardware. The retailers that are successful in this area tend to be more devoted to a specific brand rather than to carry a variety of brands. The size of the space a retailer has to devote to the category may be a factor in how many brands it can carry.
Customers usually require assistance when they go in to purchase a power device. Sales associates can provide the best advice to customers who are 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 associates at the store are educated to ask the right questions in order to make a sale. They begin by asking what the buyer is planning to use the tool, he adds. "That's the most important factor to consider when deciding the type of tool to offer them," he adds. Next, they ask about the project and the level of experience the client has with various types of projects.
Tip 8: Make a Point of Warranty
Power tool manufacturers vary greatly in their warranty policies. Some manufacturers offer a comprehensive warranty, whereas others offer more limited warranties or refuse to cover certain tools. Before making a purchase it is crucial that the retailer understands the distinctions. Customers will only purchase 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 observed that many of his contractors are brand loyal. Therefore, he prefers to carry only a few brands instead of trying to carry a variety of products.
He also appreciates that his employees have one-on-one meetings with vendors to discuss new products and provide feedback. This type of personal interaction is crucial as it helps create trust between the store and its customers. Good relationships with suppliers can even lead to discounts on future purchases.