Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. The demand for power tools is at or near pre-pandemic levels, despite a slowdown due to the COVID-19 outbreak in 2021.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely behind. But both companies are confronting stiff competition from Chinese-made power tools.
Tip 1: Make a Brand Commitment
Many industrial product manufacturers place more emphasis on sales and marketing. This is because a long-term purchase requires a lot of back-and-forth communication and detailed product knowledge. This type of communication is not suitable for emotional marketing strategies.
However, companies that manufacture industrial equipment should reconsider their marketing strategy. The digital age has overtaken traditional companies that rely on a few distributors and retail outlets to sell their products.
The key to power tool sales is brand loyalty. When a customer is committed to a specific brand, they are less sensitive to the messages of competitors. Moreover, they are more likely to purchase the client's product again and recommend it to others.
It is essential to have a well-planned strategy to be successful in the US market. This includes adapting your tools to meet local requirements and positioning your brand in a competitive way, and leveraging distribution channels and marketing platforms. It is also important to collaborate with local authorities and industry associations as well as experts. You can be assured that your power tool will meet the standards and regulations of the country when you do this.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they sell especially in a marketplace which places a great value on product quality. This will allow them to make informed decisions about what they offer. This knowledge can make the difference between making a good or a bad purchase.
For instance knowing which tool is best suited to specific projects will allow you to match your customer with the right tool to meet their requirements. This will aid in building trust and loyalty with your customers. This will help you feel confident that you provide a complete service.
Understanding DIY cultural trends can help you understand the needs of your customers. As an example the increasing number of homeowners are taking on home improvement projects that require the use of power tools. This can lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have seen their share decrease year-over-year. However black friday power tool deals that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace a broken one or to tackle an upcoming project. Both of these tools offer the possibility of upselling or adding on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of purchases of power tools resulted from a planned replacement. These customers often require additional accessories or may require an upgrade to better performing models.
If your customer is a seasoned DIYer or just starting out in the hobby, they will likely require replacement of their power tools' carbon brushes drive belts, drive belts, and power cords over time. Keeping up with these essentials will help your customer make the most of their investment.
When buying power tools, technicians look at three aspects: the tool's application, the power source and security. These factors aid technicians in making educated decisions about the most suitable tools to use for their repairs and maintenance work. This allows them to maximize the efficiency of their tools and reduce the cost of owning it.
Tip 4: Stay up to date with technology
The latest battery tools, for instance they feature smart technology that enhances user experience and sets them aside from rivals who rely on old-fashioned battery technology. Wholesalers of B2B that offer and sell these tools can increase sales by focusing on tech-forward contractors and professionals.
Karch's business, with over 30 years of experience, and a 12,000 square foot tooling department is a testament to the importance of keeping up-to-date with new technologies. "Manufactures are constantly changing the look of their products" he says. "They used to hold their designs for five or ten years, but they're now changing them each year."
In addition to embracing modern technologies, B2B wholesalers should also concentrate on improving their existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue caused by prolonged use. These features are essential for professionals who employ the tools for a lengthy period of time. The industry of power tools is divided into consumer and professional groups and this means that the biggest players are always working on enhancing their designs and creating new features to reach a wider audience.
Tip 5: Create a Point of Sales
The online marketplace has changed the power tool market. The advancements in data collection techniques have allowed professionals in the field to get a holistic perspective of market trends which allows them to design marketing and inventory strategies more efficiently.
Point of sale (POS) data for instance, allows you to monitor the kinds of projects DIYers tackle when purchasing power tools and other accessories. Knowing the types of projects that your customers are working on allows you to provide additional sales and opportunities for upselling. It helps you anticipate the needs of your customers, so that you always have the right products on the market.
Additionally, transaction data can help you to spot trends in the market and adjust production cycles accordingly. You can, for example make use of this information to monitor changes in your brand's and retail partners' market shares. This allows you to align your product strategies with consumer preferences. POS data can also be utilized to optimize inventory levels, which reduces the chance of overstocking. It is also used to evaluate the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools is a high-profit complex market that requires significant marketing and sales efforts to stay competitive. In the past, getting an advantage in this market was achieved by pricing or positioning products. But these methods are not effective in today's omnichannel environment where information is readily shared.
Retailers who make a point of service are better able to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot power tool department. Initially, his department featured various brands, but as he began listening to contractor customers, he discovered that the majority were brand loyal.
To win their customers' business, Karch and his team first ask their customers what they want to do with the tool, then show them the tools they have available. This gives them confidence to recommend the most effective tool for the job, and builds trust with the customer. Customers who are familiar with their product well are less likely to blame their supplier for a tool malfunction during the course of work.
Tip 7: Become a guru in customer service
Power tool retailers face an extremely competitive market. People who have had the most success in this market tend to have a strong commitment to a brand rather than merely carrying a few manufacturers. The amount of space retailers can dedicate to a particular category can affect the number of brands they carry.
When customers visit a store to purchase a power tool they may need assistance selecting the right product. Sales associates can provide the best advice to customers who are seeking to replace a damaged tool or are planning the renovation of their home.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is educated to ask questions that could result in an offer. He says they begin by asking the customer about what they intend to do with the item. "That's the primary factor in deciding the kind of tool to market them," he adds. 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 manufacturers of power tools are quite different. Some are completely complete, while others aren't as generous or refuse to cover certain parts of the tools at all. Before purchasing a tool, it's important that retailers know the distinctions. Customers will only buy tools from companies who 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 a repair shop on site that repairs 50 different lines of tools. He has learned that many of his contractor clients are brand loyal. Therefore, he prefers to carry a limited number of brands rather than carry a variety of products.
He also appreciates 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 since it builds trust between the store's clients and employees. Having good relationships with suppliers could result in discounts on future purchases.