Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. Despite power tools online expected slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near levels prior to the pandemic.
Home Depot is the leader in power tool sales by dollar share. Lowe's is second in line. But both companies are being pushed by China-made power tools.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products place an emphasis on sales and marketing. This is because a long-term sales requires a lot of back and forth communication and in-depth knowledge of the product. This kind of communication does not permit emotional marketing tactics.
However, industrial tool manufacturing companies must rethink their approach to marketing. The digital age has raced past traditional companies that rely on a small circle of retailers and distributors for sales.
Brand commitment is an important element in the sale of power tools. If a client is loyal to a particular brand they are less prone to the messages of competitors. They are also more likely to buy the client's products again and to recommend them to friends and family.
You need a well-planned plan to make an impact on the American market. This means adjusting your tools to meet the local requirements and positioning your brand in a strategic way, and making use of distribution channels and marketing platforms. Collaboration with local authorities as well as associations and experts is also crucial. By doing so you can be sure that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
In a world where quality of the product is so important, retailers should know the products they offer. This will help them make informed choices about what they offer their customers. This information can make the difference between a good sale and a bad one.
For example, knowing that a tool is best suited to the particular task will allow you to match your customer with the right tool to meet their requirements. You'll build trust and a sense of loyalty among your customers. It will also give you confidence that you're providing the complete solution.
Additionally, understanding the trends in DIY culture will help you comprehend what your customers want. For example, a growing number of homeowners are undertaking home renovation projects which require power tools. This can result in a surge in sales of power tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this, online and in-store sales are on the increase.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace an old one or tackle an upcoming project. Both present 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 for power tools resulted from an anticipated replacement. These customers often require additional accessories, or need to upgrade to higher performing models.
Whether your customer has experience in DIY or is new to the hobby, they will need to replace the carbon brushes, drive cords, and power cords of their power tools as time passes. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
When purchasing power tools, technicians consider three factors: the application, the power source and security. These factors aid technicians in making informed choices about the best tools to use for their repairs and maintenance tasks. This helps them optimize the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Continue to Keep Up With Technology
For example, the latest battery tools have intelligent technology that enhances users' experience and differentiates them from other tools that rely on older battery technology. Wholesalers in B2B who carry and sell these tools could increase sales by focusing on tech savvy contractors and professionals.
Karch's business, with over 30 years of experience, and a 12,000 square foot tooling department is a testimony to the importance of staying current with the latest technologies. He says that manufacturers are constantly changing their product designs. "They used to hold their designs for five or 10 years, but now they change them each year."
B2B wholesalers should not just adopt the latest technology, but also upgrade their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can lessen fatigue from prolonged use. These features are essential to many professional contractors who use the tools for a long period of time. The power tool industry is split into professional and consumer groups. This means that the major players are always working to improve their designs and come up with new features to reach a larger public.
Tip 5: Make a Point of Sales
The online marketplace has changed the market for power tools. Data collection techniques have improved and business professionals can get a better understanding of the market. This allows them to create more effective inventory and marketing strategies.
By utilizing information from the point of sale (POS), you can track DIY projects that customers undertake when buying power tools and other accessories. Knowing what projects your customers are working on enables you to offer upsells and additional products. It allows you to anticipate your customers' needs to ensure that you have the appropriate products on the market.
You can also utilize transaction data to identify trends in the market, and then adjust production cycles accordingly. For example, you can make use of this information to track fluctuations in your brand's or the market share of your retail partners which allows you to align your product strategies with consumer preferences. Similarly, you can use POS data to improve levels of inventory and decrease the risk of stocking up. It can also help you to evaluate the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools are a complex, high-profit market that requires a significant amount of marketing and sales efforts to stay in the game. In the past, gaining an advantage in this market was achieved by establishing prices or positioning of products. But these methods are no longer effective in today's world of omnichannels where information is easily communicated.
Retailers who are committed to providing a high level of service are better able to keep customers coming back 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 several brands. However when he talked to contractors, he realized that they were loyal to their preferred brand.
Karch and his staff ask their customers what they intend to accomplish using a tool prior to showing them the possibilities. This gives them confidence to recommend the best tool for the job and also builds trust with the customer. Customers who are familiar with their product well are less likely to blame their retailer for a malfunctioning tool on the job.
Tip 7: Be a master of customer service
The power tool market has become a very competitive area for retailers of hardware. People who have had the most success in this market tend to make a firm commitment to a particular brand rather than simply carrying a selection of manufacturers. The size of the space that a retailer needs to dedicate to this category could be a factor in the amount of brands it is able to carry.
Customers often need assistance when they come in to purchase a power device. Sales associates can provide the best advice to customers looking to replace a damaged tool or undertaking the renovation of their home.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is trained to ask questions that could lead to an offer. He says they start by asking the buyer what they intend to do with the product. " power tool deals uk 's the way to decide what kind of tool they need," he says. Then, they inquire about the experience of the customer with different types projects and the project.
Tip 8: Create a Point of Warranty
The warranty policies of the power tool makers are very different. Some manufacturers offer a comprehensive warranty, whereas others offer more limited warranties or do not cover certain tools. It's important for retailers to understand these differences before buying, since customers will buy tools from firms that provide them with a warranty.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square foot power tool department as well as a repair shop on site that repairs 50 different lines of tools. He has discovered that a lot of his contractor clients are loyal to a particular brand. Therefore, he prefers to carry only a few brands instead of trying to offer samples of various products.
He also likes the fact that his employees get one-on-one time with vendors to discuss new products and share feedback. This kind of interaction is vital because it builds trust between the customers and employees. Good relationships with suppliers could even lead to discounts for future purchases.