Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and consumer use. The demand for power tools remains at or near pre-pandemic levels, despite a slowdown due to the COVID-19 epidemic that will hit in 2021.
Home Depot is the leader in sales of power tools based on dollar share. Lowe's is second in line. Both are competing against power tools manufactured in China.
Tip 1: Be committed to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term selling process involves a lot of back and forth communication and a thorough understanding of the product. This type of communication is not conducive to emotional marketing tactics.
However, industrial tool manufacturing companies should think about rethinking their marketing strategy. The digital age has overtaken traditional manufacturing companies that rely on a select group of retailers and distributors to sell their products.
Brand commitment is a key element in the sale of power tools. When a customer is adamant about a particular brand they are less receptive to the messages of competitors. Moreover they are more likely to buy the client's product again and recommend it to others.
It is essential to have a well-planned strategy to be successful in the American market. This means adapting tools to local requirements and positioning brands in a manner that is competitive and making use of distribution and marketing platforms channels. Collaboration with local authorities, associations and experts is also crucial. When you do this you can be sure that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Be aware of Your Products
Retailers should be familiar with the products they sell especially in a marketplace that places such a high value on the quality of the product. This will help them make informed choices about the products they can offer their customers. This knowledge could also be the difference between a good sale and a poor one.
Knowing which tool is ideal for a specific project will assist you in matching the perfect tool to your customer's needs. This will help you build trust and loyalty with your customers. It will also give you assurance that you're offering a complete solution.
Understanding DIY culture trends can help you understand the needs of your customers. For instance the increasing number of homeowners are taking on home improvement projects that require the use of power tool. cordless power tool suppliers can lead a spike in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, however Ryobi and Craftsman brands have seen their share decline year-over-year. Despite cordless power tool suppliers , online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to replace a broken one or to tackle the new project. Both provide 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 for power tools were the result of an anticipated replacement. These customers often require additional accessories, or need to upgrade to higher quality models.
Whether your customer has experience in DIY or is just beginning the hobby they will need to replace their carbon brushes, drive cords, and power cords of their power tools over time. Being on top of these important items will allow your customer to get the most out of their investment.
Technicians consider three key items when purchasing power tools applications, how it will be used and safety. These aspects help technicians make informed choices about the best tools to use in their repairs and maintenance tasks. This allows them to optimize the efficiency of their tools as well as reduce the cost of ownership.
Tip 4: Keep current with the latest technology
For instance, the latest power tools offer advanced technology that enhances users' experience and sets them apart from other tools that depend on old-fashioned battery technology. B2B wholesalers who stock and sell these devices can increase sales by targeting tech savvy contractors and professionals.
Karch's business, with over 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 to keep their designs for five or ten years, but now they're changing them every year."
B2B wholesalers should not just adopt the latest technology, but also improve existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue from long-term use. These features are important for many professionals who must make use of the tools for long periods. The power tools industry is divided into consumer and professional groups, which means that major players are constantly enhancing their designs and creating new features to appeal to a wider audience.
Tip 5: Create a point of Sale
The landscape of e-commerce has transformed the power tool market. Data collection techniques have improved and business professionals can gain a better understanding of the market. This allows them to create more effective marketing and inventory strategies.
Utilizing information from the point of sale (POS) using data from the point of sale (POS), you can track DIY projects your customers complete when purchasing power tools and accessories. Knowing the kinds of projects your customers are undertaking enables you to provide additional sales and upsell opportunities. It allows you to anticipate your customers' needs to ensure that you have the appropriate products on your shelves.
Furthermore, transaction data allows you to identify market trends and adjust production cycles accordingly. For instance, you can utilize this information to track changes in your brand's and the market share of your retail partners and help you match your product strategies to consumer preferences. POS data can also be used to improve inventory levels, reducing the risk of overstocking. It can also assist you to assess the effectiveness of promotional campaigns.
Tip 6 Tip 6: Be a good neighbor
Power tools are a tangled market that is high-profit and requires a substantial amount of marketing and sales efforts to remain in the game. The classic ways to gain an advantage in this market were through pricing or product positioning--but these methods are no longer effective in the omnichannel world of today where information is shared so quickly.
Retailers who concentrate 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 section. The department was initially home to several brands. However when he talked to contractors, he noticed that they were loyal to their preferred brand.
Karch and his staff members ask their customers what they intend to do with the tool prior to showing them the alternatives. This gives them the confidence to recommend the appropriate tool for the job and builds trust with customers. Customers who are familiar with their product are less likely to blame their retailer for a tool malfunction on the job.
Tip 7: Become a guru in customer service
Power tool retailers face an extremely competitive market. The retailers that have had success in this area tend to make a strong commitment to a brand instead of simply carrying a selection of manufacturers. The amount of space a retailer has to devote to this category can be a factor in how many brands it can carry.
When customers come in to purchase an electric tool, they often need help choosing a product. Sales associates can provide professional advice to customers who are looking to replace a broken device or completing a renovation 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 can lead to a sale. He says they start by asking the customer what he or she plans to use the product. "That's the most important factor to consider when deciding what kind of tool to sell them," he adds. Then, they inquire about the customer's experience with various types of projects and the project.
Tip 8: Be sure to make mention of your warranty
The manufacturers of power tools differ greatly in their warranty policies. Certain manufacturers offer a full warranty, whereas others are more limited or do not cover certain tools. Before buying a product, it is essential that retailers understand the distinctions. Customers will only purchase tools from companies that will 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 shop and repair shop on site that repairs 50 different brands of tools. He has observed that many of his contractor clients are loyal to their brands. So, he chooses to carry a select few brands rather than offer samples of various products.
He also likes that his employees can meet with vendors one-on-one to discuss new products and provide feedback. This kind of interaction is essential as it helps build trust between the store and the customers. Good relationships with suppliers may result in discounts on future purchases.