Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and consumer use. Despite an expected slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near pre-pandemic levels.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's isn't far behind. But both companies are being pushed by China-made power tools.
Tip 1: Make a Brand Commitment
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is because a long-term sale requires a lot of back and forth communication and in-depth knowledge of the product. This type of communication is not conducive to emotional marketing tactics.
However, industrial tool manufacturing companies must rethink their marketing strategy. The digital age has raced past traditional companies that rely on a small circle of distributors and retailers for sales.
power tools black friday to power tool sales is brand commitment. When a customer is committed to a specific brand they are less receptive to the messages of competitors. Additionally they are more likely to buy the product of the client again and recommend it to others.
To have a positive impact in the United States market, you must develop an organized strategy. This involves adapting your tools to local needs and positioning your brand in a competitive manner, and leveraging marketing platforms 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 be in compliance with the requirements and standards of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
In a market where product quality is important, retailers should know the products they sell. This will enable them to make informed decisions about the products they can offer their customers. This knowledge can make the difference between making a good or a bad purchase.
For example knowing that a particular tool is suitable for a particular project can help you connect your client with the appropriate tool to meet their needs. You'll earn trust and loyalty with your customers. It will also give you the assurance that you're offering an entire solution.
Understanding DIY cultural trends can aid in understanding your customers' needs. For instance, a growing number of homeowners are undertaking home renovation projects which require power tools. This can lead a spike in the sale of power tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16%. However, Ryobi and Craftsman have decreased their share year-over-year. Despite this, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to replace one that is broken down or to take on the task of a new one. 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 power tool purchases resulted from a planned replacement. Customers often require additional accessories or may require an upgrade to better performance models.
Your customer may have experience in DIY or is new to the hobby they will need to replace their carbon brushes, drive cords, and power cords of their tools over time. These items will ensure your customer gets the most from their investment.
When buying power tools, technicians consider three aspects: the tool's application, the power source and safety. These factors allow technicians to make informed choices when it comes to selecting the right tools for their repair and maintenance work. This will help them optimize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Keep Keeping Up With Technology
For instance, the latest power tools offer advanced technology that enhances the user experience and differentiates them from other tools that depend on old-fashioned battery technology. B2B wholesalers who stock and sell these tools can increase sales by focusing on professionals and contractors who are tech-savvy.
Karch's business, with more than 30 years of experience and a 12,000 square feet tool department is a testimony to the importance of staying up-to-date with new technologies. He states that manufacturers are constantly changing their product designs. "They were able to hold their designs for five or 10 years, but now they are changing them every year."
B2B wholesalers must not only take advantage of the latest technologies, but also improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can decrease 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 industry of power tools is divided into professional and consumer groups and this means that the biggest players are always working on improving their designs and introducing new features to reach an even larger audience.
Tip 5: Create a point of Sale
The online marketplace has changed the power tool market. Data collection techniques have been improved, allowing business professionals to gain a better understanding the market. This allows them to develop more effective marketing and inventory strategies.
Point of sale (POS) data for instance, allows you to keep track of the types of projects DIYers tackle when they purchase tools and accessories. Knowing what projects your customers are working on enables you to offer upsells and add-ons. It allows you to anticipate the needs of your customers to ensure that you have the appropriate products on hand.
Furthermore, transaction data allows you to spot trends in the market and adjust production cycles accordingly. For instance, you can utilize this information to track fluctuations in your brand and market share of retail partners which allows you to align your product strategies with consumer preferences. POS data can also be used to improve inventory levels, which reduces the risk of stocking up. It can also assist you to assess the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools is a lucrative complex market that requires substantial sales and marketing efforts to stay competitive. The most common methods of gaining an advantage in this industry have been through pricing or product positioning--but these tactics no longer work in today's omnichannel marketplace in which information is dispersed in such a rapid manner.
Retailers who provide a high level of providing excellent service are more likely to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot power tool department. At first, the department offered a sampling of brands, but when he began to listen to customers who were contractors, he learned that most were loyal to a particular brand.
To be successful in their customers' business, Karch and his team first ask their customers what they want to do using the tool, before showing them what they have available. This gives them the confidence to recommend the best tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely to blame their retailer for a malfunctioning tool during the course of work.
Tip 7: Be a master of customer service
The market for power tools has become a very competitive area for retailers of hardware. The retailers that are successful in this category tends to be more devoted to a specific brand rather than to carry a variety of brands. The size of the space that a retailer needs to devote to this category can also play a role in the number of brands it can carry.
When customers visit a store to purchase an electric tool, they often need help choosing a product. Sales associates can provide the best guidance to customers looking to replace a broken device or completing an upgrade project.
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 can lead to a sale. They begin by asking what the customer plans to use the tool according to him. "That's the way to determine the type of tool you need," he says. The next step is to inquire about the project and the level of experience the customer has with various types of projects.
Tip 8: Make sure to mention your warranty
The warranties of the power tool makers differ greatly. Certain manufacturers offer a full warranty, while others offer a limited warranty or do not offer warranties for certain tools. It's crucial for retailers to be aware of these differences before making a purchase, because customers will purchase 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 tools department as well as an repair shop within the premises that can handle 50 lines of tools. He has discovered that a lot of his contractors are loyal to their brands. Therefore, he prefers to carry only a few brands instead of trying to offer samples of various products.
He also likes that his employees have one-on-one meetings with vendors to discuss new products and provide feedback. This type of personal interaction is crucial as it helps build trust between the store and its customers. Having good relationships with suppliers could result in discounts on future purchases.