Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. Despite the fact that 2021 will see a slowdown due to the COVID-19 virus, demand remains close to or at pre-pandemic levels.
In terms of outlet dollar share, Home Depot leads all outlets in power tool sales. Lowe's follows closely behind. Both are competing against power tools made in China.
Tip 1: Make an Engagement to Brands
Many manufacturers of industrial products place a higher priority on sales than marketing. This is due to the fact that the long-term sales process requires a lot of back-and-forth communication and detailed knowledge of the product. This kind of communication doesn't allow for emotional consumer marketing tactics.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital age has outpaced traditional manufacturers who depend on a select group of distributors and retail outlets for sales.
The key to power tool sales is brand loyalty. When a buyer is adamant about a particular brand they are less receptive to the messages of competitors. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to others.
To make a successful impact to be successful in the United States market, you must develop a well-planned strategy. This means adjusting your tools to meet local needs, positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also crucial to cooperate with local authorities, industry associations, and experts. You can be certain that your power tool will meet the standards and regulations of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
In a marketplace where quality of the product is so crucial, retailers should be aware of the products they sell. This will help them make informed choices about the products they offer. This information can be the difference between making a successful or bad sale.
Knowing which tool is suitable for a specific project will help you match the right tool to the needs of your customer. This will aid in building trust and loyalty with your customers. It will also give you the assurance that you're offering an entire solution.
Additionally, understanding the trends in DIY culture can help you better know what your customers are looking for. As an example increasing numbers of homeowners are completing home renovations that require the use of power tools. This can lead to an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16%. However, Ryobi and Craftsman have decreased their share year-over-year. However, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most common reason a consumer makes a power tool purchase is to replace a tool that has been damaged or broken down or to take on an entirely new project. Learn Additional Here offer opportunities for upsells and add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all purchases for power tools are the result of planned replacements. Customers often require additional accessories or may require upgrading to better performing models.
No matter if your customer is a seasoned DIYer or is new to the hobby, they'll likely need to replace their power tools' carbon brushes drive belts, drive belts, and power cords over time. Keeping up with these essentials will allow your customer to make the most of their investment.
Technicians take into consideration three main aspects when purchasing power tools the application, the way it will be used and safety. These factors help technicians make educated decisions about the most suitable tools to use in their maintenance and repairs. This allows them to maximize the efficiency of their tools and lower the expense of owning it.
Tip 4: Stay up-to-date with the latest technologies.
The most modern power tools, for example they feature smart technology that enhances user experience and differentiates them from rivals who rely upon old battery technology. Wholesalers of B2B who stock and sell these devices can boost sales by targeting professionals and contractors who are tech-savvy.
For Karch the company, which has more than three decades of experience and a 12,000-square-foot tool department, staying current with new technologies is essential. "Manufactures are constantly changing the look of their products," he says. "They used to keep their designs for five or ten years, but now they're changing them every year."
B2B wholesalers need to not only take advantage of the latest technologies, but also improve existing models. By incorporating lightweight materials and adjustable handles, wholesalers can reduce fatigue due to prolonged use. These features are essential for a lot of professional contractors who need to make use of the tools for long durations. The market for power tools is divided into professional and consumer groups, which means that major players are constantly improving their designs and developing new features to appeal to an even larger audience.
Tip 5: Create a point of Sale
The e-commerce market has changed the market for power tools. Data collection techniques have improved allowing business professionals to gain a better understanding of the market. This allows them to create more effective marketing and inventory strategies.
By utilizing information from the point of sale (POS), you can track DIY projects your customers are completing when purchasing power tools and accessories. Knowing the type of projects that your customers are working on allows you to offer additional sales and upsell opportunities. It also helps you to anticipate the requirements of your customers, ensuring that you have the right products on hand.
You can also utilize transaction data to identify trends in the market and adjust production cycles in line with these trends. You could, for instance utilize this data to track fluctuations in your retail partners' and brand's' market shares. This will allow you to align your product strategies to the preferences of consumers. Similarly, you can use POS data to improve inventory levels and reduce the risk of stocking up. It is also used to determine the effectiveness of promotions.
Tip 6: Establish a Point of Service
Power tools are a tangled, high-profit market that requires a substantial amount marketing and sales effort to remain in the game. The traditional methods to gain an advantage in this market were through pricing or product positioning--but these tactics no longer work in today's omnichannel marketplace where information is distributed in such a rapid manner.
Retailers who make a point of service are better able 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. His department initially featured various brands. However when he spoke to contractors, he discovered that they were loyal to their favorite brand.
To be successful in their customers' business, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them the tools they have available. This gives them confidence to recommend the right tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame the retailer for a malfunction of a device on the job.
Tip 7: Make an effort to be a Point of Customer Service
Power tool retailers face a fiercely competitive market. The retailers that have had the most success in this market tend to make a firm commitment to a particular brand rather than simply carrying a selection of manufacturers. The amount of space a retailer is able to devote to a particular category can affect the number of brands they carry.
When customers come in to purchase power tools, they often need help selecting a product. Sales associates can offer expert advice to customers looking to replace a damaged tool or are planning a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his store's sales associates are educated to ask the right questions to make the sale. They begin by asking questions about what the customer plans to use the tool, he says. "That's the way to decide what kind of tool they require," he says. Then they ask about the experience of the customer with various types of projects and the project.
Tip 8: Make a Point of Warranty
Power tool manufacturers vary greatly in their warranty policies. Certain manufacturers offer a full warranty, while others offer a limited warranty or do not offer warranties for certain tools. Before making a purchase it is essential that retailers understand the distinctions. Customers will only purchase tools from companies that guarantee their products.
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 kinds of tools. He has observed that many of his contractors are brand loyal. So, he chooses to carry only a few brands rather than carry samples of different products.
his explanation is also pleased that his employees are able to meet with vendors one-on-1 to discuss new products and exchange feedback. This kind of interaction is essential as it helps establish trust between the store and its customers. Having good relationships with suppliers may result in discounts on future purchases.