Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and consumers. The demand for power tools remains at or close to pre-pandemic levels, despite a slowdown due to the COVID-19 outbreak in 2021.
In terms of outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely. Both are however being pushed by China-made power tools.
Tip 1: Commit to a brand
Many manufacturers of industrial products prioritize sales over marketing. This is because the long-term selling process involves a lot of back and forth communication and a thorough understanding 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 world has raced past traditional companies that rely on a small group of retailers and distributors to sell their products.
A key to power tool sales is brand commitment. When power tools deals is committed to a specific brand, they are less sensitive to competitors' communications. They are also more likely to purchase the product of the customer again and to recommend them to others.
To be successful on the United States market, you must have an organized strategy. This includes adapting your tools to local needs and positioning your brand in a way that is competitive, and using marketing platforms and distribution channels. It is also important to collaborate with local authorities as well as industry associations and experts. You can be assured that your power tool is in line with the standards and regulations of the country when you do this.
Tip 2: Know Your Products
In a marketplace where product quality is important, retailers must be aware of 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.
Knowing that a certain tool is suitable for a particular project will aid in matching the right tool to the needs of your customer. This will allow you to build trust and loyalty with your customers. This will give you confidence that you provide the complete service.
In addition, understanding the trends in DIY culture will help you know what your customers are looking for. For instance, more homeowners are undertaking home renovation projects requiring the use of power tools. This can result in a spike in the sale of these tools.
According to DurableIQ, DeWalt is the leader in power tool units at 16%. However, Ryobi and Craftsman have seen their share decrease year-over-year. Despite this, online and in-store sales are on the increase.
Tip 3: Offer Full-Service Repair
The majority of consumers purchase power tools to replace a broken one or to tackle the new project. Both of these can be used to increase sales and add-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. The customers might require additional accessories, or upgrade to a higher-performing model.
Whether your customer is an experienced DIYer or new to the hobby, they will likely require replacing their power tools' carbon brushes, drive belts and power cords with time. These basic items will ensure that your customer reaps the maximum benefit from their investment.
Technicians consider three key items when buying power tools applications, how it will be powered and safety. These factors allow technicians to make informed choices when it comes to selecting the appropriate tools for their repair and maintenance work. This enables them to maximize the efficiency of their tools and lower the expense of owning it.
Tip 4: Stay current with the latest technology
The latest battery tools, for instance, offer smart technology which improves the user's experience and differentiates them from competitors who still rely upon old battery technology. Wholesalers of B2B who stock and sell these tools can boost sales by targeting professionals and contractors who are tech-savvy.
For Karch who's business has more than three years of experience and a 2,000-square-foot tool department, keeping up with new technologies is essential. He says that manufacturers are constantly changing their designs for their products. "They used to hold their designs for five or ten years, but now they alter them every year."
B2B wholesalers need to not only adopt the latest technology, but also enhance their existing models. For instance, by adding adjustable handles and lightweight materials, they can reduce the fatigue that comes from prolonged use. These features are essential to many professional contractors who use the tools for a lengthy period of time. The market for power tools is divided into consumer and professional groups and this means that the biggest players are constantly enhancing their designs and creating new features that will appeal to a wider audience.
Tip 5: Create an Point of Sale
The ecommerce landscape has changed the power tool market. Data collection techniques have improved and business professionals can gain a better understanding the market. This helps them develop more effective marketing and inventory strategies.
Point of sale (POS) information for instance, allows you to keep track of the types of projects DIYers tackle when purchasing tools and accessories. Knowing the kinds of projects your customers are working on allows you to offer additional sales and opportunities for upselling. It helps you anticipate the needs of your customers, so that you always have the right products on your shelves.
You can also utilize transaction data to determine market trends, and adjust production cycles accordingly. You could, for instance, use this data to monitor fluctuations of your retail partners' and brand's market share. This allows you to align your product strategies with consumer preferences. In the same way, you can utilize POS data to improve levels of inventory and decrease the chance of overstocking. It is also used to evaluate the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a lucrative, complex market that requires substantial marketing and sales efforts to remain competitive. In the past, gaining an advantage in this market was achieved by pricing or positioning products. However, these strategies are not as effective in the current multichannel environment, where information is easily shared.
Retailers who make a point 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. At first, the department offered various brands, but as he began listening to customers who were contractors, he discovered that the majority were loyal to a particular brand.
To win their customers' business, Karch and his team first ask their customers what they want to do with the tool, then show them what they have available. This gives them the confidence to recommend the most effective tool for the job and also builds trust with the customer. Customers who are familiar with their product well are less likely to blame their supplier for a malfunctioning tool during the course of work.
Tip 7: Create a Point of Customer Service
The market for power tools has become a very competitive area for hardware retailers. The retailers that are successful in this category tends to be more loyal to a single brand rather than to carry a variety of manufacturers. The amount of space a retailer has to dedicate to this category could also play a role in how many brands it can carry.
When customers go in to purchase power tools and require assistance, they usually need help selecting the right product. Sales associates can offer expert advice to customers seeking to replace a damaged tool or undertaking an upgrade project.
power tools shops , 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 a sale. He says they begin by asking the customer what he or she plans to do with the product. "That's the primary factor in deciding what kind of tool to sell them," he adds. 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 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 cover certain tools. It is crucial for retailers to know these differences before purchasing, as buyers will purchase tools from companies that back them up.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has an 12,000 square foot power tool department as well as an on-site repair shop that repairs 50 different brands of tools. He has discovered over the years that many of his contractor customers are loyal to their brands, which is why the company prefers to stick to a limited number of brands rather than offer a wide range of products.
He is also happy that his employees are able to meet with vendors in person to discuss new products and share feedback. This personal contact is important because it helps create trust between the store and its customers. Good relationships with suppliers can even result in discounts on future purchases.