Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains near or at pre-pandemic levels.
Home Depot is the leader in sales of power tools based on dollar share. Lowe's is close behind. Both are competing against power tools made in China.
Tip 1: Make a commitment to a brand
Many industrial products manufacturers 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. This type of communication is not conducive to emotional marketing tactics.
However, companies that make industrial tools need to rethink their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a few retailers and distributors for sales.
Brand commitment is a key aspect in the sales of power tools. When a buyer is committed to a specific brand they are less receptive to competitor's messages. Additionally, they are more likely to buy the client's product again and recommend it to others.
It is essential to have a well-planned strategy to have an impact on the US market. This includes adapting your tools to meet local needs and positioning your brand in a competitive manner, and leveraging marketing channels and distribution channels. It is also important to collaborate with local authorities as well as industry associations and experts. You can be assured that your power tool will meet the standards and regulations of the country when you follow these guidelines.
power tool sale : Know Your Products
In a market where product quality is important, retailers must be aware of the products they offer. This will enable them to make informed decisions about what they sell. This knowledge could make the difference between making a good or bad sale.
Knowing that a certain tool is suitable for a specific project will aid in matching the right tool to the requirements of your customer. This will allow you to build trust and loyalty with your customers. This will ensure that you provide the complete service.
Also, knowing the latest trends in DIY culture will help you know what your customers are looking for. As an example, more homeowners are undertaking home renovation projects requiring the use of power tool. This could lead to a rise in the 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 shares decrease year-overyear. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace a broken one or to tackle an upcoming project. Both offer opportunities for upsells or additional sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories 35 percent of all power tool purchases are the result of planned replacements. These customers often require additional accessories or may require upgrading to better performing models.
No matter if your customer is an experienced DIYer or new to the hobby, they'll require replacing their carbon brushes for power tools drive belts, drive belts, and power cords over time. Being on top of these important items will allow your customer to make the most of their investment.
Technicians must consider three important aspects when buying power tools: application, how it will be used and safety. These aspects allow technicians to make informed choices when selecting the right tools for their maintenance and repair work. This enables them to maximize the effectiveness of their tool and reduce the expense of owning it.
Tip 4: Keep Keeping Up With Technology
For example, the latest power tools offer intelligent technology that enhances users' experience and differentiates them from other tools that rely on older battery technology. Wholesalers of B2B that offer and sell these tools can boost sales by targeting professional and tech-savvy contractors.
For Karch, whose business has more than three years of experience and a 2,000-square-foot tool department, staying current with the latest technology is vital. "Manufactures are constantly changing the look of their products," Karch says. "They were able to hold their designs for five or 10 years, but now they are changing them each year."
In addition to embracing latest technologies, B2B wholesalers should also be looking to improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the fatigue that comes from prolonged use. These features are important for a large number of professionals who must utilize the tools for lengthy periods. The market for power tools is divided into professional and consumer groups, which means that major players are always working on enhancing their designs and creating new features to reach an even larger audience.
Tip 5: Create a Point of Sales
The ecommerce landscape has changed the market for power tools. Data collection techniques have been improved allowing business professionals to gain a better understanding of the market. This allows them to create more effective marketing and inventory strategies.
Point of sale (POS) data, for instance, allows you to track the types of projects DIYers undertake when they purchase power tools and accessories. Knowing the kinds of projects that your customers are undertaking enables you to offer additional sales and opportunities for upselling. It allows you to anticipate your customers' needs to ensure that you have the right products in your shelves.
You can also utilize transaction data to determine trends in the market, and then adjust production cycles accordingly. You could, for instance, use this data to monitor fluctuations of your retail partners' and brand's' market shares. This allows you to align your product strategies to the preferences of consumers. Similarly, you can use POS data to improve inventory levels and reduce the chance of overstocking. It also helps to assess the effectiveness of promotions.
Tip 6: Establish a Point of Service
Power tools are a tangled market with high profits that requires a significant amount of sales and marketing effort to remain competitive. The most common methods of gaining an advantage in this market were by establishing pricing or positioning of products, but these tactics no longer work in today's omnichannel marketplace where information is shared so quickly.
Retailers that focus on customer service are more likely to retain customers and build 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 several brands, but as he began listening to contractor customers and found that the majority were brand loyal.
Karch and his staff ask their customers what they would like to accomplish using a tool before showing them the alternatives. This gives them the confidence to recommend the right tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame their supplier for a tool failure on the job.
Tip 7: Make a point of customer service
Power tool retailers are facing an extremely competitive market. The retailers that are successful in this market tend to be more committed to a single brand than to carry a variety of brands. The amount of space that a retailer is able to devote to a specific category could influence how many brands they carry.
Customers often need assistance when they go in to buy a power tool. Whether they are replacing an old model that is broken or tackling the task of renovating, customers need expert advice from sales associates.
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 lead to a sale. They begin by asking what the buyer is planning to use the tool for according to him. "That's the best way to decide what kind of tool they require," he says. The next step is to inquire about the project and what kind of experience the customer has with different kinds of projects.
Tip 8: Be sure to make mention of your warranty
The warranties of the power tool makers differ greatly. Some are fully comprehensive, while others aren't as generous or do not cover certain components of the tools at all. It is crucial for retailers to understand these differences before purchasing, as customers will purchase tools from companies that back them up.
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 in-house repair shop that handles 50 lines of tools. He has learned over time that a lot of his customers who are contractors are brand loyal, so the company prefers to stick to only a few brands rather than offer a variety of products.
He is also pleased that his employees have the ability to meet with vendors one-on-one to discuss new products and share feedback. This personal contact is crucial because it builds trust between the store's customers and employees. Good relationships with suppliers could even result in discounts for future purchases.