Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. Despite an expected slowdown in 2021 due to the COVID-19 virus, the demand is still at or near pre-pandemic levels.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely. Both are competing with power tools manufactured in China.
Tip 1: Commit to a brand
Many industrial product manufacturers place a higher priority on sales and marketing. This is because a long-term sales requires a lot back-and forth communication and a thorough understanding of the product. This type of communication does not lend itself to emotional consumer marketing techniques.
However, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital age has overtaken traditional companies that rely on a small group of retailers and distributors for sales.
Brand commitment is an important aspect in the sales of power tools. When a customer is loyal to a brand and is loyal to a brand, they are less prone to messages from competitors. They are also more likely to buy the client's products again and to recommend them to friends and family.
To be successful in the United States market, you must develop a well-planned strategy. This means adapting your tools to meet the local requirements, positioning your brand in a competitive manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities, associations and experts is also crucial. When you do this you can ensure that your power tools comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
In a market where quality of the product is so important, retailers should know the products they offer. This will help them make informed choices about the products they offer their customers. This knowledge could make the difference between a successful or a bad purchase.
Knowing that a certain tool is ideal for a particular project will help you match the right tool to the requirements of your customer. This will help you build trust and loyalty with your customers. on front page will help you feel confident that you are offering the complete service.
Understanding DIY culture trends can also help you better understand your customers' requirements. For example, a growing number of homeowners are taking on home improvement projects that require the use of power tools. This can lead to an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to repair a broken one or to tackle an upcoming project. Both offer 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 power tool purchases were the result of a planned replacement. Customers often require additional accessories, or require upgrading to better quality models.
No matter if your customer is a seasoned DIYer or just starting out in the hobby, they'll require replacement of their carbon brushes for power tools as well as drive belts and power cords over time. Making sure they are up to date with these essentials will help your customer get the most out of their investment.
Technicians consider three key items when making power tool purchases applications, how it will be operated and safety. These factors aid technicians in making informed decisions about the best tools to use in their maintenance and repairs. This helps them maximize the effectiveness of their tool and reduce the cost of owning it.
Tip 4: Always Keep Up with Technology
The latest battery tools, for instance they feature smart technology that enhances user experience and differentiates them from competitors who still rely upon old battery technology. Wholesalers of B2B that offer and sell these tools can boost sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three years of experience and a 12,000 square-foot tool department, staying current with new technologies is essential. He states that manufacturers are constantly changing their designs for their products. "They were able to hold their designs for five or ten years, but now they are changing their designs every year."
In addition to embracing modern technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are important for many professionals who have to utilize the tools for lengthy periods. The industry of power tools is divided into consumer and professional groups which means that the major players are always working on improving their designs and developing new features to appeal to more people.
Tip 5: Make a Point of Sales
The e-commerce market has changed the power tools market. Data collection techniques have been improved, allowing business professionals to gain a better understanding the market. This helps them develop more effective marketing and inventory strategies.
Point of sale (POS) information for instance, allows you to monitor the kinds of projects DIYers undertake when purchasing power tools and accessories. Knowing what projects your customers are working on allows you to offer upsells and extras. It also helps you anticipate the requirements of your customers, ensuring that you have the correct products available.
Additionally, transaction data can help you to spot trends in the market and adjust production cycles accordingly. For instance, you can use this data to monitor changes in your brand's and market share of retail partners and help you align your product strategies with consumer preferences. In the same way, you can utilize POS data to optimize inventory levels and reduce the chance of overstocking. It can also assist you to evaluate the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a profitable complex market that requires substantial sales and marketing efforts to stay competitive. In the past, getting a competitive advantage in this market was achieved through pricing or positioning products. However, these tactics are not effective in today's multichannel environment, where information is easily communicated.
Retailers that focus on customer 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. His department initially featured several brands. However when he spoke to contractors, he noticed that they were loyal to their preferred brand.
Karch and his team ask their customers what they plan to accomplish using a tool before showing them the possibilities. 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 are less likely than others to blame the store for a malfunction of a tool for the job.
Tip 7: Make a Point of Customer Service
The market for power tools has become a very competitive area for retailers of hardware. The retailers that have had the most success in this market tend to make a strong commitment to a particular brand instead of simply carrying a selection of manufacturers. The amount of space a retailer is able to devote to a specific category could affect the number of brands they are able to carry.
When customers come in to purchase an electric tool, they often need help selecting the right product. Sales associates can offer professional guidance to customers looking to replace a broken device or completing the renovation of their home.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions to make an offer. They begin by asking what the customer is planning to do with the tool, he adds. "That's how you determine what kind of tool they require," he says. Then, they inquire about the experience of the customer with different types of projects as well as the project.
Tip 8: Create an End of Warranty
The warranty policies of the power tool makers differ greatly. Some are completely comprehensive, while others are stingy, or refuse to cover certain parts of the equipment. Before making a purchase it is essential that retailers understand the distinctions. Customers will only buy tools from companies who back them up.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop in-house that handles 50 lines of tools. He has discovered that a lot of his contractors are loyal to a particular brand. So, he chooses to carry a limited number of brands instead of trying to carry samples of different products.
He also likes the fact that his employees have one-on-one meetings with vendors to discuss new products and provide feedback. This type of personal interaction is essential since it builds trust between the customers and employees. Having good relationships with suppliers can even result in discounts on future purchases.