Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. Despite the fact that 2021 will see a slowdown due to the COVID-19 virus, demand remains near or at levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's follows closely. Both are competing with power tools manufactured in China.
Tip 1: Be committed to a brand
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term sale 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 tools should rethink their marketing strategy. The digital world has raced past traditional companies that rely on a small circle of retailers and distributors for sales.
Brand commitment is a key aspect in the sales of power tools. When a customer is committed to a certain brand they are less receptive to the messages of competitors. Moreover, they are more likely to buy the product of the client again and recommend it to others.
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 and positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. It is also essential to work with local authorities, industry associations, and experts. In this way, you can be confident that your power tools will comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they offer especially in a marketplace which places a great value on product quality. This will help them make informed choices about what they offer their customers. This knowledge could make the difference between a successful or bad sale.
For example knowing which tool is suitable for the particular task will allow you to match your customer with the right tool to meet their needs. You'll build trust and a sense of loyalty among your customers. It will also give you confidence that you're offering a complete solution.
In addition, understanding the trends in DIY culture will help you know what your customers are looking for. For instance, a growing number of homeowners are undertaking home renovation projects that require power tools. This could lead to a spike in the sale of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, however Ryobi and Craftsman brands have seen their share decrease year-over-year. However, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power purchase is to replace one that has failed or to embark on an entirely new project. Both of these tools offer opportunities for upsells or additional 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 may require additional accessories or upgrade to a better-performing model.
If your customer is a seasoned DIYer or is new to the hobby, they'll need to replace their carbon brushes for power tools drive belts, drive belts, and power cords with time. These basic items will ensure that your customer gets the most out of their investment.
Technicians consider three key items when making power tool purchases the application, the way it will be operated and safety. These aspects allow technicians to make informed choices when selecting the right tools for maintenance and repair work. This allows them to maximize the efficiency of their tools and reduce the expense of owning it.
Tip 4: Stay up-to-date with the latest technologies.
The latest power tools, for example, offer smart technology which enhances the user experience and differentiates them from competitors who still rely upon old battery technology. Wholesalers of B2B that carry and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's company, which has more than 30 years of experience, and a 12,000 square feet tooling department, is a testament to the importance of keeping up-to-date with the latest technology. He says that manufacturers are constantly changing their designs for their products. "They used hold their designs for five or 10 years, but now they are changing them each year."
B2B wholesalers need to not only embrace the latest technologies but also enhance their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are essential for a lot of professionals who have to use the tools for long durations. The market for power tools is divided into professional and consumer groups and this means that the biggest players are constantly improving their designs and developing new features to reach more people.
Tip 5: Create a point of Sale
The e-commerce landscape has transformed the market for power tools. The advancements in data collection techniques have enabled business professionals to get an entire perspective of market trends which allows them to design marketing and inventory strategies more efficiently.
Utilizing data from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects your customers are completing when purchasing power tools and other accessories. Knowing what projects your customers are working on allows you to increase sales and provide additional products. It also helps you to anticipate the requirements of your clients, ensuring that you have the right products in stock.
Moreover, transaction data enables you to spot trends in the market and adjust your production cycles accordingly. For instance, you can utilize this information to track fluctuations in your brand's or market share of retail partners and help you align your product strategies with consumer preferences. POS data can also be used to improve levels of inventory, reducing the risk of overstocking. It can also help you to assess the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools is a high-profit, complex market that requires significant sales and marketing efforts to stay competitive. In power tool deals black friday in this market was accomplished by pricing or positioning products. But power tool shops are not effective in today's multichannel environment, where information is easily shared.
Retailers who focus on 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 department. At first, the department offered a sampling of brands, but as he listened to customers who were contractors, he learned that most were loyal to a particular brand.
To be successful in their customers, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them what they have available. This gives them the confidence to recommend the best tool for the job, and builds trust with customers. Customers who know their product well are less likely to blame their retailer for a malfunctioning tool on the job.
Tip 7: Create a point of customer service
The market for power tools has become a highly competitive market for retailers of hardware. Those who are successful in this area tend to be more committed to a single brand than to carry a variety of brands. The amount of space that retailers can dedicate to a specific category could affect the number of brands they can carry.
When customers go in to purchase power tools and require assistance, they usually need help selecting the right product. Whether they are replacing an old model that's broken or taking on the task of renovating Customers need guidance from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are trained to ask questions that could result in a sale. They start by asking what the customer plans to use the tool according to him. "That's the most important factor to consider when deciding the type of tool to offer them," he adds. Then, they inquire about the experience of the customer with various types of projects and the project.
Tip 8: Make an End of Warranty
The warranties of power tool manufacturers differ greatly. Some are fully complete, while others are stingy or even refuse to cover certain parts of the tool at all. Before buying a product, it's important that retailers know the distinctions. Customers will only purchase tools from companies that back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department and a repair shop on site that repairs 50 different types of tools. He has observed that many of his contractor clients are loyal to their brands. Therefore, he prefers to carry a select few brands rather than offer samples of various products.
He also likes the fact that his employees meet with vendors one-on-one to discuss new products and give feedback. This personal contact is important as it helps establish trust between the store and the customers. Good relationships with suppliers can even result in discounts on future purchases.