Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and personal use. The demand for power tools is at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic in 2021.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's isn't far behind. But both companies are facing stiff competition from China-manufactured power tools.
Tip 1: Make a commitment to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term sale requires a lot back-and forth communication and detailed product knowledge. This kind of communication isn't ideal for marketing that is based on emotion.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital world has raced past traditional manufacturers who rely on a small group of retailers and distributors for sales.
One of the most important factors in power tool sales is brand commitment. When a customer is adamant about a particular brand they are less receptive to the messages of competitors. Additionally, they are more likely to buy the product of the client again and recommend it to others.
To make a successful impact in the United States market, you need to have an organized strategy. This means adapting your tools to meet local requirements and positioning your brand in a strategic manner, and leveraging distribution channels and marketing platforms. It is also important to work with local authorities, industry associations, and experts. When you do this, you can be confident that your power tools will comply with the country's regulations and standards.
Tip 2: Know Your Products
In a world where product quality is important, retailers must be aware of the products they sell. This will help them make informed decisions about the products they offer their customers. This knowledge can make the difference between making a good or bad sale.
Knowing that a certain tool is ideal for a particular project will assist you in matching the perfect tool to the requirements of your customer. This will help you build trust and loyalty with your customers. This will ensure that you provide a complete service.
In addition, understanding the trends in DIY culture will help you know what your customers are looking for. For instance the increasing number of homeowners are taking on home renovations that require the use of power tool. This can result in an increase in the sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. However, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace an old one or tackle a new project. Both present opportunities for upsells and add-on 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 resulted from a planned replacement. The customers might require additional accessories or upgrade to a better-performing model.
No matter if your customer is an experienced DIYer or new to the hobby, they'll likely require replacement of their power tools' carbon brushes, drive belts and power cords over time. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
When buying power tools, technicians take into consideration three aspects: the tool's application, the power source and safety. These aspects help technicians make informed decisions when choosing the right tools for their maintenance and repair work. This helps them improve the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Always Keep Up With Technology
The most recent battery tools, for instance, offer smart technology which improves the user's experience and differentiates them from those who depend on older battery technology. Wholesalers in B2B who offer and sell these tools can increase sales by targeting tech-forward contractors and professionals.
Karch's company, which has 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 states that manufacturers are constantly changing their designs for their products. "They used to hold their designs for 5 or 10 years but now they change their designs every year."
B2B wholesalers must not only take advantage of the latest technologies, but also 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 crucial for a lot of professionals who must utilize the tools for lengthy durations. The market for power tools is divided into professional and consumer groups which means that the major players are constantly improving their designs and developing new features to appeal to an even larger audience.
Tip 5: Create a Point of Sale
The landscape of e-commerce has transformed the power tool market. Data collection methods have improved, allowing business professionals to gain a better understanding of the market. This allows them to develop more effective marketing and inventory strategies.
Point of sale (POS) data for instance, allows you to keep track of the types of projects DIYers tackle when they purchase power tools and accessories. Knowing the kinds of projects that your customers are working on allows you to provide additional sales and opportunities to upsell. It also allows you to anticipate the requirements of your customers making sure you have the right products available.
You can also use transaction data to spot trends in the market and adjust production cycles in line with these trends. For instance, you can make use of this information to monitor fluctuations of your retail partners' and your brand's market shares. This will allow you to align your product strategies to the preferences of consumers. In the same way, you can utilize POS data to optimize inventory levels and reduce the chance of overstocking. It can also help you to assess the effectiveness of promotions.
Tip 6: Establish a Point of Service
Power tools is a lucrative complex market that requires substantial marketing and sales efforts to remain competitive. In the past, getting a competitive advantage in this market was accomplished by pricing or positioning products. But these methods are not effective in today's world of omnichannels where information is easily available to be shared.
Retailers who make a point of providing excellent service are more likely to keep 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 department for power tools. In the beginning, his store featured various brands, but as he listened to customers who were contractors, he learned that most were brand loyal.
To win their business, Karch and his team first ask customers what they would like to accomplish with the tool, then show them the options available. This gives them the confidence to recommend the appropriate tool for a job, and also creates trust with customers. Customers who are familiar with their product are less likely than others to blame the retailer for a failure of a tool on the job.
Tip 7: Be a master of customer service
Power tool retailers face a fiercely competitive market. Those who have seen success in this category tend to have a strong commitment to a brand instead of simply carrying a sampling of manufacturers. The amount of space a retailer can devote to a category may also influence how many brands they carry.
When homepage visit a store to purchase a power tool they may need assistance choosing a product. Sales associates can offer the best advice to customers who are looking to replace a broken tool or undertaking an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is trained to ask questions that will lead to a sale. They begin by asking the buyer what he or she plans to do with the item. "That's the primary factor in deciding the type of tool to market them," he adds. Then, they inquire about the customer's experience with various types of projects and the project.
Tip 8: Make sure to be sure to mention your warranty
The warranty policies of power tool manufacturers are quite different. Some are fully comprehensive, while some are stingy or even do not cover certain components of the tools at all. Before purchasing a tool, it's important that retailers know the differences. Customers will only purchase tools from companies who guarantee their products.
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 repair shop on site that repairs 50 different brands of tools. He has discovered that a lot of his clients are loyal to their brands. Therefore, he prefers to carry a select few brands rather than carry samples of different 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 important because it helps build trust between the store and its customers. Good relationships with suppliers may result in discounts on future purchases.