Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. Despite an expected slowdown in 2021 due to the COVID-19 virus, demand remains near or at levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is not far behind. power tool shop are however confronting stiff competition from Chinese-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 the long-term selling process requires a lot back-and-forth communication and a thorough understanding of the product. This type of communication is not conducive to emotional marketing tactics.
However, companies that manufacture industrial equipment should reconsider their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small group of distributors and retailers for sales.
Brand commitment is a key factor in power tool sales. When a buyer is adamant about a particular brand and brand, they are less responsive to competitors' communications. Additionally they are more likely to buy the product of the client repeatedly and recommend it to others.
It is essential to have a well-planned strategy to be successful in the American market. This involves adapting your tools to local needs and positioning brands in a manner that is competitive and making use of distribution and marketing platforms channels. It is also crucial to work with local authorities, industry associations, and experts. You can be assured 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 important, retailers must be aware of the products they offer. This will enable them to make informed choices about the products they are selling. This knowledge can make the difference between making a successful or a poor sale.
For example knowing that a particular tool is suitable for the particular task will help you match your customer with the right tool to meet their needs. 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.
Understanding DIY culture trends can also help you better understand your customers' needs. For instance the increasing number of homeowners are taking on home improvement projects that require the use of power tool. This can lead a spike in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. However, online and in-store sales are increasing.
Tip 3: Offer Full-Service Repair
The most common reason a consumer makes a power purchase is to either replace one that has failed or to embark on an entirely new project. Both present opportunities for upsells 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. These customers may require additional accessories or upgrade to a higher-performing model.
No matter if your customer is an experienced DIYer or is new to the hobby, they'll likely require replacement of their power tools' carbon brushes as well as drive belts and power cords as time goes by. These essentials will ensure that your customer reaps the maximum benefit out of their investment.
Technicians take into consideration three main aspects when making power tool purchases applications, how it will be powered and safety. These factors help technicians make informed choices about the best tools to use for their repairs and maintenance tasks. This helps them maximize the efficiency of their tools and reduce the cost of owning it.
Tip 4: Keep up-to-date with the latest technologies.
For instance, the latest power tools offer intelligent technology that enhances the user experience and differentiates them from other tools that depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools can boost sales by targeting professionals and contractors who are tech-savvy.
Karch's business, with over 30 years of experience and a 12,000 square foot tool department is a testimony to the importance of staying current with the latest technologies. 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 change their designs every year."
B2B wholesalers should not just embrace the latest technologies 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 many contractors working in the field who utilize the tools over a long period of time. The market for power tools is divided into consumer and professional groups, which means that major players are constantly enhancing their designs and creating new features to reach more people.
Tip 5: Create a Point of Sales
The online marketplace has transformed the market for power tools. Data collection techniques have improved, allowing business professionals to gain a better understanding the market. This allows them to create more efficient inventory and marketing strategies.
Point of sale (POS) information can, for example, allow you to keep track of the types of projects DIYers undertake when they purchase power tools and accessories. Knowing what projects your customers are working on allows you to upsell and offer additional products. It also helps you anticipate the requirements of your clients, ensuring that you have the correct products in stock.
You can also utilize transaction data to determine market trends, and adapt production cycles accordingly. You could, for instance, use this data to track fluctuations in your retail partners' and your brand's market share. This allows you to align your product strategies with consumer preferences. Similarly, you can use POS data to improve levels of inventory and decrease the chance of overstocking. It can also be used to evaluate the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools are a complex market with high profits that requires a substantial amount of sales and marketing effort to stay in the game. The classic ways to gain a strategic advantage in this field have been through pricing or product positioning--but these strategies are no longer effective in today's multichannel marketplace where information is shared rapidly.
Retailers that focus on customer service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, operates a 12,000-square-foot power tool department. At first, the department offered a sampling of brands, but as he listened to the customers of contractors, he learned that most were loyal to a particular brand.
To be successful in their business, Karch and his team first ask customers what they want to do using the tool, before showing them what they have available. This gives them the confidence to recommend the appropriate tool for a job, and also builds trust with customers. Customers who are familiar with their product are less likely to blame their supplier for a tool failure on the job.
Tip 7: Be a guru in customer service
Power tool retailers are in an extremely competitive market. Those who are successful in this market tend to be more committed to a single brand rather than to carry a variety of manufacturers. The size of the space a retailer must devote to the category may also affect how many brands it can carry.
Customers usually require assistance when they visit to purchase a power device. Sales associates can offer professional guidance to customers seeking to replace a damaged device or completing a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the staff at his store is trained to ask questions that will result in the sale. They start by asking what the customer is planning to use the tool for, he says. "That's the best way to determine the type of tool they require," he says. Then they ask about the customer's experience with different types projects and the project.
Tip 8: Be sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some are completely comprehensive, while others are stingy, or do not cover certain components of the tools at all. Before buying a product, it is crucial that the retailer understands the differences. 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 tools department as well as an repair shop in-house that handles 50 models of tools. He has discovered that a lot of his contractor clients are loyal to a particular brand. Therefore, he prefers to carry only a few brands rather than carry a variety of products.
He also appreciates that his employees meet with vendors one-on-one to discuss new products and give feedback. This kind of interaction is vital because it helps build trust between the customers and employees. Good relationships with suppliers may even result in discounts for future purchases.