Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. The demand for power tools is at or close to pre-pandemic levels despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in power tool sales in terms of dollar share. Lowe's follows closely. Both are competing against power tools manufactured in China.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products put a higher priority on sales and marketing. This is because a long-term sale requires a lot back-and forth communication and a thorough understanding of the product. This type of communication is not ideal for marketing that is based on emotion.
However, companies that make industrial equipment should reconsider their marketing strategy. The digital age has overtaken traditional manufacturing companies that rely on a few retailers and distributors for sales.
Brand commitment is a key element in the sale of power tools. If a client is committed to a certain brand, they are less sensitive to the messages of competitors. Additionally they are more likely to buy the client's product time and time again and recommend it others.
You need a well-planned plan to be successful in the American market. This means adapting your tools to meet local requirements, positioning your brand in a strategic way, and leveraging marketing channels and distribution channels. It is also crucial to collaborate with local authorities and industry associations as well as experts. You can be assured that your power tool is in line with the standards and regulations of the country when you do this.
Tip 2: Know Your Products
In a market where product quality is important, retailers should know the products they sell. This will enable them to make informed decisions about the products they can offer their customers. This knowledge can make the difference between making a successful or bad sale.
For example, knowing that a tool is best suited to a particular project can help you match your customer with the right tool to meet their requirements. This will allow you to build trust and loyalty with your customers. This will help you feel confident that you provide an entire service.
Understanding DIY culture trends can also aid in understanding the needs of your customers. For example, a growing number of homeowners are tackling home renovation projects that require power tools. This can result in 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 decreased their share year-over-year. Despite this the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace the broken one or tackle an upcoming project. Both present opportunities for upsells and Powertoolsonline.uk add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all power tool purchases are the result of planned replacements. Customers often require additional accessories or require an upgrade to better performance 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 in time. Keeping up with these essentials will help your customer get the most value from their investment.
When buying power tools, technicians look at three factors: the application, the power source and safety. These factors aid technicians in making educated decisions about the most suitable tools to use for their repairs and maintenance work. This will help them maximize the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Keep Keeping Up With Technology
The most modern power tools, like are equipped with smart technology that enhances user experience and sets them apart from rivals who depend on older battery technology. Wholesalers in B2B who stock and sell these devices can increase sales by targeting professionals and contractors who are technologically advanced.
For Karch, whose business has more than three decades of experience and a 12,000 square-foot tool department, keeping up with new technologies is essential. "Manufactures are constantly changing the look of their products," Karch says. "They used to hold their designs for five or ten years, but now they're changing them every year."
In addition to embracing the modern technologies, B2B wholesalers should also concentrate on improving their existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can reduce fatigue caused by long-term use. These features are important for many professionals who have to use the tools for long periods. The market for power tools is divided between professional and consumer groups. This means that the major players are constantly working to improve their designs and create new features to reach a wider audience.
Tip 5: Create a Point of Sale
The e-commerce market has changed the market for power tools. Advancements in data collection methods allow business professionals to get an entire overview of market trends which allows them to design strategies for inventory and marketing more efficiently.
Point of sale (POS) data for instance, allows you to keep track of the types of projects DIYers tackle when purchasing power tools and other accessories. Knowing what projects your customers are working on permits you to offer upsells and additional products. It helps you anticipate the needs of your customers, so that you always have the appropriate products on your shelves.
Furthermore, transaction data allows you to spot trends in the market and adjust your production cycles accordingly. You can, for example utilize this data to track fluctuations in your brand's and retail partners' market shares. This allows you to align your product strategies to consumer preferences. Similarly, you can use POS data to improve inventory levels and reduce the risk of stocking up. It can also be used to evaluate the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a profitable, complex market that requires significant marketing and sales efforts in order to remain competitive. The classic ways to gain a strategic advantage in this field have been by positioning or pricing products. However, these methods are no longer effective in today's omnichannel marketplace where information is shared rapidly.
Retailers who concentrate on 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 is the owner of a 12,000-square-foot power tool department. His initial department featured several brands. However when he talked to contractors, he discovered that they were loyal to their preferred brand.
Karch and his team ask their customers what they plan to do with the tool prior to 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 know their product are less likely to blame their vendor for a malfunctioning tool during the course of work.
Tip 7: Make a Point of Customer Service
The power tool market has become a highly competitive category for hardware retailers. Those who are successful in this area tend to be more committed to a specific brand rather than to carry a variety of manufacturers. The amount of space a retailer is able to devote to a specific category could influence how many brands they can carry.
When customers come in to purchase an electric tool and require assistance, they usually need help selecting the right product. Sales associates can offer expert advice to customers seeking to replace a damaged device or completing an upgrade project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are trained to ask the right questions to help make an offer. They start by asking what the customer is planning to use the tool for, he adds. "That's the most important factor to consider when deciding the kind of tool to offer them," he adds. Then they ask about the customer's experience with various types of projects and the project.
Tip 8: Create an End of Warranty
The warranty policies of the power tool makers are very different. Some are fully comprehensive, while others are stingy or even refuse to cover certain parts of the tool at all. Before making a purchase it's important that retailers know the distinctions. Customers will only buy tools from companies that 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 and an repair shop within the premises that can handle 50 lines of tools. He has learned that many of his contractors are brand loyal. Therefore, he prefers to carry only a few brands instead of trying to carry samples of different products.
He also appreciates that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and share feedback. This type of personal interaction is crucial because it helps to establish trust between the retailer and customers. Having good relationships with suppliers could lead to discounts on future purchases.