Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and users. The demand for power tools remains at or near pre-pandemic levels despite a slowdown due to the COVID-19 outbreak in 2021.
In terms of dollar share, Home Depot leads all outlets in power tool sales. Lowe's is second in line. Both are competing against power tools manufactured in China.
Tip 1: Commit to a brand
Many industrial products manufacturers prioritize sales over marketing. This is because the long-term sales process involves a lot of back and forth communication and a thorough understanding of the product. This kind of communication doesn't allow for emotional consumer marketing strategies.
However, companies that manufacture industrial tools should rethink their marketing strategy. The digital age has raced past traditional companies that rely on a small circle of retailers and distributors to sell their products.
Brand loyalty is a major factor in power tool sales. When a buyer is committed to a certain brand they are less receptive to competitors' communications. Additionally they are more likely to buy the product of the client again and recommend it to others.
To have a positive impact to be successful in the United States market, you need to have an organized strategy. This means adjusting your tools to meet local requirements and positioning your brand in a strategic manner, and leveraging distribution channels and marketing platforms. Collaboration with local authorities, associations and experts is also essential. You can be certain that your power tool will be in compliance with the standards and regulations of the country if you do this.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they sell especially in a marketplace which places a great importance on the quality of products. This will allow them to make informed decisions about the products they offer their customers. This information can make the difference between a good sale and a bad one.
Knowing that a certain tool is perfect for a specific project will help you match the right tool to the needs of your customer. You'll build 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. As an example the increasing number of homeowners are taking on home renovations that require the use of power tool. This could lead to an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, although Ryobi and Craftsman brands have seen their share decline year-over-year. Despite this, both online and in-store purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why for a person to make a power tool purchase is to replace one that is been damaged or broken, or to embark on a new project. Both provide 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. Customers often require additional accessories or may need to upgrade to higher quality models.
Whether your customer is a seasoned DIYer or is new to the hobby, they'll require replacing their carbon brushes for power tools drive belts, drive belts, and power cords as time goes by. Keeping up with these essentials will allow your customer to get the most out of their investment.
When buying power tools, technicians look at three factors: the application the power source, and safety. These aspects allow technicians to make informed choices when selecting the right tools for their maintenance and repair tasks. This helps them maximize the effectiveness of their tool and lower the cost of owning it.
Tip 4: Keep up-to-date with the latest technologies.
For instance, the latest power tools feature intelligent technology that enhances the user experience and differentiates them from competitors that still rely on old battery technology. Wholesalers of B2B who stock and sell these tools could increase sales by targeting professional and tech-savvy contractors.
Karch's business, with over 30 years of experience and a 12,000 square foot tool department is a testament to the importance of keeping up-to-date with new technologies. "Manufactures are constantly changing the design of their products" he says. "They used to hold their designs for five or 10 years, but now they're changing them each year."
In addition to embracing the modern technologies, B2B wholesalers should also concentrate on improving their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the strain caused by long use. These features are important for a large number of professionals who have to utilize the tools for lengthy periods of time. The industry of power tools is divided into professional and consumer groups, which means that major players are constantly enhancing their designs and creating new features that will appeal to an even larger audience.
Tip 5: Make an Point of Sale
The e-commerce landscape has transformed the market for power tools. Data collection methods have improved allowing business professionals to get a better understanding of the market. This allows them to create more effective inventory and marketing strategies.
Point of sale (POS) information can, for example, allow you to keep track of the types of projects DIYers tackle when purchasing power tools and accessories. Knowing what projects your customers are working on permits you to upsell and offer additional products. It also allows you to anticipate the requirements of your clients making sure you have the right products on hand.
Furthermore, transaction data allows you to detect trends in the market and adjust your production cycles accordingly. You could, for instance, use this data to track fluctuations in your retail partners' and brand's' market shares. This will allow you to align your strategy for product to consumer preferences. Additionally, you can make use of POS data to optimize inventory levels and reduce the risk of stocking up. It can also assist you to evaluate the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools are a tangled market with high profits that requires a significant amount of marketing and sales efforts to remain competitive. The traditional methods to gain a strategic advantage in this field have been by establishing pricing or positioning of products, but these strategies are no longer effective in today's omnichannel marketplace where information is distributed rapidly.
Retailers who are committed to providing a high level of service are better able 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 department for power tools. His department initially featured various brands. However when he talked to contractors, he realized that they were loyal to their preferred brand.
Karch and his staff ask their customers what they plan to do with a tool before presenting them with the options. This gives them the confidence to recommend the appropriate tool for the job and also builds trust with customers. Customers who know their product are less likely to blame their vendor for a tool failure on the job.
Tip 7: Create a Point of Customer Service
The market for power tools has become a highly competitive category for hardware retailers. Those who are successful in this market tend to be more devoted to a specific brand rather than to carry a variety of brands. The amount of space a retailer can devote to a specific category could influence how many brands they carry.
When customers come in to purchase power tools they may need assistance selecting the right product. When they're replacing an old model that's broken or taking on the task of renovating, customers need expert advice from sales representatives.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are educated to ask the right questions in order to make a sale. He says they begin by asking the customer about what he or she plans to do with the item. "That's the primary factor in deciding what kind of tool to market them," he adds. The next step is to inquire about the project and the level of experience the customer has with different types of projects.
Tip 8: Create a Point of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some companies offer a complete warranty, whereas others offer more limited warranties or do not offer warranties for certain tools. Before making a purchase it's important that retailers know the distinctions. Customers will only buy tools from companies who guarantee their products.
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 lines of tools. He has discovered that a lot of his contractors are brand loyal. So, he chooses to carry a select few brands rather than offer samples of various products.
He also appreciates that his employees can get one-on-one time with vendors to discuss new products and provide feedback. This type of personal interaction is essential since it builds trust between the customers and employees. Good relationships with suppliers may lead to discounts on future purchases.