Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are an essential for both professional and personal use. The demand for power tools is at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 epidemic in 2021.
Home Depot is the leader in the sales of power tools by dollar share. Lowe's follows closely behind. However, both are being pushed by China-made power tools.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products put an emphasis on sales over marketing. This is because the long-term sales process involves a lot of back and forth communication and detailed knowledge of the product. This type of communication is not ideal for marketing that is based on emotion.
However, industrial tools manufacturing companies must rethink their approach to marketing. The digital age has accelerated over traditional manufacturers who depend on a small group of retailers and distributors to sell their products.
A key to selling power tools is brand commitment. If a customer is committed to a brand they are less prone to messages from competitors. Moreover they are more likely to buy the product of the client time and time again and recommend it others.
You need a well-planned plan to have an impact on the US market. This means adapting your tools to meet the local requirements, positioning your brand in a competitive way, and making use of marketing channels and distribution channels. Collaboration with local authorities as well as associations and experts is also essential. You can be sure that your power tool will be in compliance with the standards and regulations of the country when you do this.
Tip 2: Be aware of Your Products
In a market where product quality is so crucial, retailers should be aware of the products they offer. This will help them make informed choices about the products they offer their customers. This information can make the difference between a good sale and a bad one.
Knowing which tool is perfect for a specific project will aid in matching the right tool to the requirements of your customer. This will aid in building trust and loyalty with your customers. It will also give you confidence that you're providing the complete solution.
Understanding DIY cultural trends can help you understand your customers' needs. For instance, more homeowners are undertaking home renovations 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 at 16%, while Ryobi and Craftsman brands have seen their share decrease year-over-year. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to either replace one that has been damaged or broken, or to embark on an entirely new project. Both offer the possibility of upselling or adding on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all power tool purchases are the result of planned replacements. These customers often require additional accessories or need to upgrade to higher quality models.
Whether your customer is an experienced DIYer or new to the hobby, they will likely require replacement of their carbon brushes for power tools drive belts, drive belts, and power cords with time. These essentials will ensure that your customer gets the most from their investment.
Technicians consider three key items when purchasing power tools applications, how it will be powered and safety. These aspects help technicians make informed choices when selecting the right tools for maintenance and repair work. This helps them maximize the performance of their tool and lower the cost of owning it.
Tip 4: Keep up-to-date with the latest technologies.
For instance, the most recent power tools offer intelligent technology that enhances users' experience and sets them apart from other tools that depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by targeting tech savvy contractors and professionals.
Karch's company, which has more than 30 years of experience and a 12,000 square feet tooling department is a testimony to the importance of keeping up-to-date with the latest technology. "Manufactures are constantly changing the look of their products" Karch says. "They were able to hold their designs for five or 10 years, but now they are changing them each year."
B2B wholesalers need to not only embrace the latest technologies but also upgrade their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can lessen fatigue due to long-term use. These features are crucial for a lot of professionals who have to use the tools for long periods of time. The market for power tools is divided into consumer and professional groups, which means that major players are always working on improving their designs and introducing new features to appeal to more people.
Tip 5: Create a Point of Sales
The online marketplace has changed the power tool market. Modern methods for data collection have enabled professionals in the field to get a holistic perspective of market trends and help them develop strategies for inventory and marketing more effectively.
Point of sale (POS) information, for instance, allows you to keep track of the types of projects DIYers undertake when purchasing power tools and accessories. Knowing the kinds of projects your customers are working on enables you to provide additional sales and opportunities to upsell. It helps you anticipate the needs of your customers, so that you always have the right products in the market.
You can also use transaction data to identify trends in the market and adapt production cycles accordingly. For instance, you could utilize this information to track fluctuations in your brand and the market share of your retail partners and help you adapt your product strategies to consumer preferences. POS data can also be utilized to optimize inventory levels, which reduces the chance of overstocking. It can also help you to evaluate the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools is a high-profit, complex market that requires significant marketing and sales efforts to stay competitive. In the past, getting an advantage in this market was achieved through pricing or positioning products. However, these tactics are not as effective in the current world of omnichannels where information is easily shared.
Retailers who provide a high level of providing a high-quality service are more likely to keep 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. Initially, power tools stores featured a sampling of brands, but as he listened to customers who were contractors and found that the majority were loyal to a particular brand.
Karch and his staff members ask their customers what they would like to do with the tool before showing them the options. This gives them the 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 than others to blame the store for a failure of a tool for the job.
Tip 7: Become a guru in customer service
The power tool market has become a highly competitive category for hardware retailers. Those who have seen success in this category tend to make a firm commitment to a brand instead of simply carrying a sampling of manufacturers. The amount of space a retailer is able to devote to a specific category could influence how many brands they can carry.
When customers visit a store 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 undertaking the renovation of their home.
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 an offer. They start by asking what the customer is planning to use the tool, he adds. "That's the most important factor to consider when deciding the kind of tool to sell them," he adds. Then, they inquire about the project and what level of experience they have with various types of projects.
Tip 8: Make sure to be sure to mention your warranty
The warranties of the manufacturers of power tools are very different. Some are completely comprehensive, while some aren't as generous or do not cover certain components of the tool at all. It's important for retailers to know these differences before making a purchase, because customers will buy tools from companies that offer warranties.
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 models of tools. He has realized over the years that many of his customers who are contractors are loyal to their brands, which is why he prefers to focus on only a few brands rather than trying to offer a wide range of products.
He is also happy that his employees are able to meet with vendors one-on-1 to discuss new products and give feedback. This type of personal interaction is crucial as it helps build trust between the retailer and customers. Good relationships with suppliers can even result in discounts for future purchases.