Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and consumer use. Despite a slowdown in 2021 due to the COVID-19 pandemic demand remains close to or at pre-pandemic levels.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's is not far behind. Both are competing with power tools made in China.
Tip 1: Create an Efficacious Brand Commitment
Many industrial product manufacturers place a higher priority on sales and marketing. This is because the long-term selling process requires a lot back-and-forth communication as well as a detailed understanding of the product. This kind of communication isn't conducive to emotional marketing tactics.
Nevertheless, industrial tools manufacturing companies should think about rethinking their approach to marketing. The digital age has raced over traditional manufacturers who depend on a small circle of retailers and distributors to sell their products.
The key to power tool sales is brand loyalty. When a buyer is committed to a certain brand, they are less sensitive to competitor's messages. In addition, they are more likely to buy the product of the client repeatedly and recommend it to others.
To be successful on the United States market, you need to have an organized strategy. This includes adapting your tools to meet the local requirements and positioning your brand in a strategic way, and making use of marketing channels and distribution channels. It is also essential to collaborate with local authorities as well as industry associations and experts. In this way you can be sure that your power tools be in compliance with the regulations of the country and standards.
Tip 2: Know Your Products
In a marketplace where product quality is important, retailers should know the products they offer. This will enable them to make informed choices about the products they can offer their customers. This information can make the difference between a good sale and a bad one.
For instance knowing that a particular tool is best suited to the particular task can help you connect your customer with the best tool for their needs. This will help you build trust and loyalty with your customers. It will also give you assurance that you're offering the complete solution.
Understanding DIY cultural trends can help you understand your customers' requirements. For instance, a growing number of homeowners are undertaking home renovation 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 unit share, which is 16%, while Ryobi and Craftsman brands have seen their share drop year-over-year. However the fact that sales on both stores and online are growing.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power purchase is to either replace a tool that has been damaged or broken down or to take on an entirely new project. Both of these can be used to increase sales and add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of purchases for power tools resulted from an anticipated replacement. These customers may require additional accessories, or upgrade to a higher-performing model.
Whether your customer is an experienced DIYer or new to the hobby, they'll likely require replacement of their carbon brushes for power tools, drive belts and power cords as time goes by. Making sure they are up to date with these essentials will help your customer get the most value from their investment.
Technicians take into consideration three main aspects when buying power tools applications, how it will be operated and safety. These factors allow technicians to make informed choices when it comes to selecting the appropriate tools for their maintenance and repair tasks. This will help them maximize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Continue to Keep Up with Technology
For instance, the most recent power tools offer smart technology that improves the user experience and differentiates them from other brands that still depend on old-fashioned battery technology. B2B wholesalers that stock and sell these devices can increase sales by focusing on tech-forward contractors and professionals.
For Karch, whose business has more than three decades of experience and a 12,000-square-foot tool department, staying current with the latest technology is vital. He says that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or 10 years, but now they're changing them every year."
In addition to taking advantage of the latest technologies, B2B wholesalers should also focus on improving existing models. By adding lightweight materials and adjustable handles, wholesalers can decrease fatigue caused by prolonged use. These features are essential for a large number of professional contractors who need to utilize the tools for lengthy durations. The power tool industry is divided into the consumer and professional segments. This means that the biggest players are constantly working to improve their designs and come up with new features to appeal to a wider public.
Tip 5: Create a point of Sales
The landscape of e-commerce has transformed the market for power tools. Modern methods for data collection have enabled business professionals to gain an entire view of market trends which allows them to design strategies for inventory and marketing more effectively.
Using data from the point of sale (POS), you can track DIY projects that customers complete when purchasing power tools and other accessories. Knowing the types of projects your customers are working on allows you to offer add-on sales and upsell opportunities. It allows you to anticipate your customers' needs, so that you always have the right products in your shelves.
Moreover, transaction data enables you to identify market trends and adjust production cycles accordingly. For example, you can make use of this information to track changes in your brand's and market share of retail partners and help you align your product strategies with consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of overstocking. It also helps to evaluate the effectiveness of promotional campaigns.
Tip 6: Create 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 competitive. The most common methods of gaining a strategic advantage in this field were by positioning or pricing products. However, these tactics no longer work in today's omnichannel marketplace where information is distributed rapidly.
Retailers that focus on customer service are more likely to retain 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. The department was initially home to several brands. However when straight from the source spoke to contractors, he discovered that they were loyal to their favorite brand.
Karch and his team ask their customers what they intend to accomplish using a tool before presenting them with the possibilities. This gives them the confidence to recommend the best tool for a job, and also increases trust with their customers. Customers who are familiar with their product are less likely to blame the retailer for the failure of a device on the job.
Tip 7: Make a point of customer service
The market for power tools has become a very competitive area for retailers of hardware. The retailers that have had success in this area tend to make a strong commitment to a brand rather than merely carrying a sampling of manufacturers. The amount of space a retailer is able to devote to a particular category can affect the number of brands they can carry.
When customers go in to purchase power tools they may need assistance selecting a product. Sales associates can offer professional guidance to customers looking to replace a broken 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 in order to make a sale. They start by asking what the buyer is planning to use the tool for, he adds. "That's the most important factor to consider when deciding the kind of tool to market them," he adds. Then, they inquire about the experience of the customer with various types of projects and the project.
Tip 8: Make sure to be sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some are fully comprehensive, while others are stingy or even do not cover certain components of the tool at all. Before buying a product, it is essential that retailers understand the distinctions. Customers will only buy 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 shop and repair shop on site that repairs 50 different brands of tools. He has observed that many of his contractor clients are loyal to a particular brand. Therefore, he prefers to carry a select few brands instead of trying to carry samples of different products.
He also likes the fact that his employees have the opportunity to get one-on-one time with vendors to discuss new products and share feedback. This type of personal interaction is essential because it helps build trust between the customers and employees. Good relationships with suppliers can even result in discounts for future purchases.