Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both consumers and professionals. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains near or at levels prior to the pandemic.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's is close behind. Both are competing with power tools manufactured in China.
Tip 1: Make a commitment to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because the long-term selling process requires a lot back-and-forth communication and a thorough understanding of the product. This type of communication does not permit emotional marketing techniques.
Nevertheless, industrial tools manufacturing companies should consider rethinking their marketing strategy. The digital world has raced past traditional companies that rely on a few distributors and retailers for sales.
A key to selling power tools is brand commitment. If a customer is committed to a brand, they will be less prone to the messages of competitors. They are also more likely to buy the client's products again and to recommend them to others.
You need a well-planned plan to make an impact on the American market. This includes adapting your tools to meet the local requirements and positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. Collaboration with local authorities and associations, as well as experts is also crucial. In this way, you can be confident that the power tools you purchase comply with the country's regulations and standards.
Tip 2: Know Your Products
In a market where product quality is so important, retailers should know the products they sell. This will allow them to make informed decisions about what they sell. This information can be the difference between making a good or a bad purchase.
Knowing that a certain tool is ideal for a particular project will aid in matching the right tool to the needs of your customer. This will help you build trust and loyalty with your customers. This will ensure that you provide the complete service.
Understanding DIY culture trends can aid in understanding your customers' needs. For instance, a growing number of homeowners are tackling home improvement projects which require power tools. This can result in an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool unit share at 16%, while Ryobi and Craftsman brands have seen their share decrease 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 repair an old one or tackle a new project. Both of these can be used to increase sales and 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 an anticipated replacement. Customers may require additional accessories, or upgrade to a higher-performing model.
If your customer is an experienced DIYer or just starting out in the hobby, they'll need to replace their carbon brushes for power tools drive belts, drive belts, and power cords as time goes by. Being on top of these important items will allow your customer to make the most of their investment.
Technicians take into consideration three main aspects when purchasing power tools applications, how it will be powered and safety. These factors aid technicians in making informed decisions about the best tools to use for their repairs and maintenance tasks. This helps them maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Keep up to date with technology
For instance, the latest power tools offer intelligent technology that enhances users' experience and sets them apart from competitors that still rely on older battery technology. B2B wholesalers who stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
For Karch who's business has more than three years of experience and a 2,000-square-foot tool department, staying current with the latest technologies is crucial. "Manufactures are constantly changing the look of their products" Karch says. "They used to hold their designs for five or 10 years, but now they're changing them each year."
B2B wholesalers should not just take advantage of the latest technologies, but also improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are important for many professional contractors who need to use the tools for long periods of time. power tools store near me of power tools is divided into professional and consumer groups which means that the major players are constantly improving their designs and introducing new features that will appeal to an even larger audience.
Tip 5: Make an Point of Sale
The online marketplace has changed the power tool market. Modern methods for data collection have enabled business professionals to get a holistic overview of market trends and help them develop strategies for inventory and marketing more effectively.
Point of sale (POS) data for instance, allows you to monitor the kinds of projects that DIYers are working on when purchasing power tools and accessories. Knowing the kinds of projects that your customers are working on enables you to offer add-on sales and opportunities for upselling. It helps you anticipate the needs of your customers, so that you always have the right products on your shelves.
You can also utilize transaction data to determine trends in the market, and then adjust production cycles accordingly. For example, you can make use of this information to track fluctuations in your brand and the market share of your retail partners, enabling you to align your product strategies with consumer preferences. In the same way, you can utilize POS data to improve levels of inventory and decrease the risk of overstocking. It is also used to determine the effectiveness of promotional campaigns.
Tip 6: Make a Point of Service
Power tools are a complex market that is high-profit and requires a substantial amount marketing and sales effort to remain in the game. In the past, gaining a competitive advantage in this market was achieved by pricing or positioning products. However, these tactics are not effective in today's omnichannel environment where information is easily communicated.
Retailers who concentrate on service are more likely to keep 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 various brands. However when he spoke to contractors, he discovered that they were loyal to their preferred brand.
To win their business, Karch and his team first ask customers what they would like to accomplish with the tool, then show them what they have available. This gives them the confidence to recommend the most effective 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 retailer for the failure of a tool on the job.
Tip 7: Be a guru in customer service
Power tool retailers are in an extremely competitive market. People who succeed in this category tends to be more loyal to a single brand than to carry a variety of brands. The size of the space a retailer must devote to this category can be a factor in how many brands it can carry.
When customers come in to purchase power tools, they often need help selecting the right product. When they're replacing an old tool that's broken or taking on the task of renovating Customers need advice from sales representatives.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is trained to ask the right questions to help make the sale. They begin by asking what the customer plans to do with the tool according to him. "That's how you decide what kind of tool they need," he says. Then they ask about the experience of the customer with different types projects and the project.
Tip 8: Create an End of Warranty
The warranties of the manufacturers of power tools are quite different. Some are fully complete, while others are stingy or even do not cover certain components of the tools at all. Before buying a product, it is crucial that the retailer understands 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 a 12,000 square foot power tool department and an on-site repair shop that repairs 50 different brands of tools. He has observed that many of his clients are loyal to a particular brand. So, he chooses to carry a limited number of brands rather than carry samples of different products.
power tools shop near me appreciates that his employees have the ability to meet with vendors one-on-one to discuss new products and share feedback. This kind of interaction is essential because it helps build trust between the retailer and customers. Good relationships with suppliers can even lead to discounts for future purchases.