Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. Despite the fact that 2021 will see a slowdown due to the COVID-19 virus, the demand is still at or near levels prior to the pandemic.
Home Depot is the leader in sales of power tools by dollar share. Lowe's is not far behind. Both are competing against power tools made in China.
Tip 1: Commit to a brand
Many manufacturers of industrial products put more emphasis on sales and marketing. This is due to the fact that the long-term sales process requires a lot back-and-forth communication and a thorough understanding of the product. This kind of communication does not allow for emotional consumer marketing strategies.
However, industrial tools manufacturing companies should think about rethinking their marketing strategy. The digital age has accelerated over traditional manufacturers who depend on a small circle of distributors and retailers for sales.
Brand commitment is an important element in the sale of power tools. If a client is committed to a certain brand and brand, they are less responsive to competitor's messages. They are also more likely to buy the product of the customer again and to recommend them to others.
You require a well-planned strategy to make an impact on the American market. This includes adapting your tools to local needs and positioning brands in a way that is competitive, and leveraging marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. You can be assured that your power tool is in line with the requirements and standards of the country when you follow these guidelines.
Tip 2: Know Your Products
Retailers must be aware of the products they offer especially in a marketplace that places such a high value on product quality. This will enable them to make informed decisions about the products they offer their customers. This knowledge could make the difference between making a successful or a poor sale.
Knowing which tool is perfect for a particular project will help you match the right tool to your customer's needs. You'll build trust and loyalty with your customers. It will also give you the confidence that you're offering the complete solution.
Understanding DIY culture trends can also help you understand the needs of your customers. For instance, a rising number of homeowners are undertaking home improvement projects which require power tools. This can lead to an increase in the sales of these tools.
According to power tools store , DeWalt leads in power tool share of 16%, although Ryobi and Craftsman brands have seen their share decrease year-over-year. However the fact that sales on both stores and online are increasing.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace an old one or tackle the new project. Both offer opportunities for upsells or add-on 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 were the result of an anticipated replacement. These customers may require additional accessories, or upgrade to a higher-performing model.
Your customer may have experience in DIY or is just beginning the hobby, they will need to replace carbon brushes, drive cords and the power cords on their power tools over time. These basic items will ensure that your customer gets the most out of their investment.
When purchasing power tools, technicians take into consideration three aspects: the tool's application the power source, and security. These aspects allow technicians to make informed decisions when choosing the right tools for maintenance and repair work. This allows them to improve the performance of their tools and lower the cost of ownership.
Tip 4: Stay up-to-date with the latest technologies.
The most modern battery tools, for instance, offer smart technology which improves the user's experience and sets them apart from competitors who still depend on older battery technology. Wholesalers of B2B that carry and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's business, which has more than 30 years of experience and a 12,000 square feet tooling department is a testament to the importance of staying up-to-date with the latest technology. He states that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or 10 years, but now they're changing them each year."
In addition to taking advantage of the most recent technologies, B2B wholesalers should also be looking to improve existing models. For instance, by adding adjustable handles and lightweight materials, they can lessen the fatigue caused by prolonged use. These features are essential to many contractors working in the field who utilize the tools over a long period of time. The power tool industry is divided between professional and consumer groups. This means that the major players are constantly striving to improve their designs and develop new features to appeal to a wider public.
Tip 5: Make a Point of Sales
The online marketplace has transformed the power tools market. Data collection techniques have been improved allowing business professionals to gain a better understanding the market. This allows them to create more effective marketing and inventory strategies.
Point of sale (POS) information for instance, allows you to keep track of the types of projects that DIYers are working on when they purchase power tools and accessories. Knowing the kinds of projects your customers are working on allows you to offer add-on sales and opportunities to upsell. It also helps you anticipate the requirements of your clients and ensure that you have the correct products in stock.
Moreover, transaction data enables you to identify market trends and adjust your production cycles accordingly. For instance, you can utilize this data to monitor changes in your retail partners' and brand's market share. This will allow you to align product strategies to the preferences of consumers. Similarly, you can use POS data to improve inventory levels and reduce the chance of overstocking. It is also used to assess the effectiveness of promotional campaigns.
Tip 6: Be a good neighbor
Power tools are a complicated, high-profit market that requires a substantial amount of marketing and sales efforts to stay competitive. The classic ways to gain an advantage in this industry were by positioning or pricing products. However, these methods are no longer effective in today's omnichannel marketplace where information is shared rapidly.
Retailers who make a point of providing a high-quality service are more likely to retain customers and develop brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square-foot power tool department. At first, the department offered several brands, but when he began listening to customers who were contractors, he discovered that the majority were loyal to a particular brand.
To make a mark in their customers, Karch and his team first ask their customers what they want to do using the tool, before showing them the options available. This gives them confidence to recommend the right 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 the failure of a tool 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 firm commitment to a brand instead of simply carrying a sampling of manufacturers. The amount of space that a retailer is able to devote to a category may also affect the number of brands they are able to carry.
Customers frequently require assistance when they go in to purchase a power tool. When they're replacing an old one that's broken or taking on the task of renovating, customers need expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is trained to ask questions that could lead to a sale. They begin by asking questions about what the customer plans to do with the tool according to him. "That's the most important factor to consider when deciding the kind of tool to market them," he adds. Then they ask about the customer's experience with different types projects and the project.
Tip 8: Make sure to be sure to mention your warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are completely complete, while others are stingy, or refuse to cover certain parts of the tools at all. Before buying a product, it's important that retailers know the distinctions. Customers will only purchase tools from companies who back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square foot power tool department and a repair shop on site that repairs 50 different brands of tools. He has observed that many of his contractors are loyal to their brands. So, he chooses to carry only a few brands instead of trying to carry samples of different products.
He also appreciates that his employees are able to meet with vendors one-on-1 to discuss new products and exchange feedback. This kind of interaction is vital because it helps build trust between the customers and employees. Good relationships with suppliers may even lead to discounts for future purchases.