Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both consumer and professional use. Despite a slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near pre-pandemic levels.
Home Depot is the leader in sales of power tools by dollar share. Lowe's isn't far behind. But both companies are being pushed by China-made power tools.
Tip 1: Commit to a brand
Many industrial product manufacturers place an emphasis on sales over marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication and a thorough understanding of the product. This kind of communication doesn't lend itself to emotional consumer marketing techniques.
However, industrial tools manufacturing companies must rethink their approach to marketing. The digital world has surpassed traditional companies that rely on a small group of retailers and distributors to sell their products.
The key to power tool sales is brand loyalty. If a client is committed to a specific brand they are less receptive to the messages of competitors. Moreover, they are more likely to purchase the client's product repeatedly and recommend it to others.
It is essential to have a well-planned strategy to be successful in the American market. This includes adapting your tools to meet local requirements, positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. It is also important to collaborate with local authorities, industry associations, and experts. You can be sure that your power tool will meet the standards and regulations of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
In a marketplace where product quality is so crucial, retailers should be aware of the products they sell. This will allow them to make informed choices about what they can offer their customers. This information can be the difference between making a good or a poor sale.
For example, knowing that a tool is best suited to the particular task will help you connect your customer with the right tool for their needs. This will help you build trust and loyalty with your customers. It will also give you confidence that you're offering an entire solution.
In addition, understanding the trends in DIY culture will help you understand what your customers want. For instance, a rising number of homeowners are taking on home improvement projects that require the use of power tools. This can lead a spike in sales of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this, online and in-store sales are growing.
Tip 3: Offer Full-Service Repair
The most common reason that a buyer makes a purchase is to either replace one that has been damaged or broken, or to embark on a new project. Both of these tools offer opportunities for upsells or additional 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. The customers might require additional accessories or upgrade to a more powerful model.
If your customer is an experienced DIYer or is new to the hobby, they'll likely need to replace their power tools' carbon brushes, drive belts and power cords as time goes by. Making sure they are up to date with these essentials will allow your customer to get the most out of their investment.
When purchasing power tools, technicians look at three aspects: the tool's application the power source, and safety. These aspects allow technicians to make informed decisions when choosing the right tools for their maintenance and repair tasks. This allows them to maximize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Always Keep Up With Technology
The latest battery tools, for instance they feature smart technology that enhances user experience and differentiates them from those who rely on old-fashioned battery technology. Wholesalers of B2B who stock and sell these tools could boost sales by targeting professional and tech-savvy contractors.
Karch's company, which has over 30 years of experience and a 12,000 square feet department for tools, is a testament to the importance of staying up-to-date with new technologies. He states that manufacturers are constantly changing their product designs. "They used to hold their designs for five or ten years, but they're now changing them every year."
B2B wholesalers should not just adopt the latest technology, but also enhance their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can lessen fatigue from long-term use. These features are essential for a large number of professionals who must make use of the tools for long periods. The power tool industry is divided into consumer and professional groups. This means that the biggest players are constantly striving to improve their designs and come up with new features to appeal to a wider audience.
Tip 5: Create a Point of Sales
The online marketplace has transformed the market for power tools. Modern methods for data collection have enabled business professionals to gain a holistic overview of market trends which allows them to design inventory and marketing strategies more efficiently.
Point of sale (POS) information, for instance, allows you to keep track of the types of projects that DIYers are working on when purchasing power tools and accessories. Knowing the types of projects that your customers are undertaking enables you to offer additional sales and opportunities for upselling. It helps you anticipate your customers' needs, so that you always have the appropriate products on the market.
You can also utilize transaction data to spot trends in the market and adjust production cycles in line with these trends. You could, for instance make use of this information to monitor changes in your brand's and retail partners market shares. This will allow you to align product strategies to the preferences of consumers. POS data can also be utilized to optimize inventory levels, reducing the chance of overstocking. It also helps to evaluate the effectiveness of promotional campaigns.
Tip 6: Create a Point of Service
Power tools are a tangled market with high profits that requires a significant amount of marketing and sales efforts to remain competitive. In the past, getting a competitive advantage in this market was accomplished by establishing prices or positioning of products. However, these tactics are not as effective in the current multichannel environment, where information is easily shared.
Retailers who provide a high level of providing excellent service are more likely to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, runs a 12,000 square foot power tool section. His initial department featured a variety of brands. However when he talked to contractors, he realized that they were loyal to their preferred brand.
To win their business, Karch and his team first ask customers what they'd like to achieve with the tool, then show them the options available. This gives them the confidence to recommend the appropriate tool for the job, and it increases trust with their customers. Customers who are familiar with their product are less likely than others to blame the store for a malfunction of a tool for the job.
Tip 7: Create a Point of Customer Service
Power tool retailers are in a fiercely competitive market. The retailers that have had success in this category tend to make a firm commitment to a particular brand instead of simply carrying a sampling of manufacturers. The amount of space retailers can dedicate to a category may also determine the number of brands they carry.
Customers usually require assistance when they come in to purchase a power tool. Whether they are replacing an old model that's broken or taking on an upgrade project, customers need expert advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is educated to ask questions that could result in an offer. They begin by asking the buyer what they plan to do with the product. "That's the primary factor in deciding the kind of tool to offer them," he adds. Then, they inquire about the experience of the customer with different types projects and the project.
Tip 8: Make sure to make mention of your warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are completely comprehensive, while some are stingy, or do not cover certain components of the tool at all. power tools online is crucial for retailers to understand these differences before making a purchase, because customers will 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 as well as an in-house repair shop that handles 50 lines of tools. He has discovered that a lot of his clients are loyal to their brands. 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 ability to meet with vendors in person to discuss new products and exchange feedback. This type of personal interaction is essential because it builds trust between the store's customers and employees. Good relationships with suppliers can even result in discounts for future purchases.