Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both professionals and users. The demand for power tools is 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 when it comes to sales of power tools. Lowe's is second in line. Both are competing against power tools made in China.
Tip 1: Make a commitment to a brand
Many manufacturers of industrial products prioritize sales over marketing. This is because the long-term selling process requires a lot of back-and-forth communication and detailed knowledge of the product. This kind of communication isn't conducive to emotional marketing tactics.
However, industrial tool manufacturing companies should consider rethinking their marketing strategy. The digital world has surpassed traditional manufacturers who depend on a small group of retailers and distributors for sales.
One of the most important factors in selling power tools is brand commitment. If a client is loyal to a brand, they will be less sensitive to communications from competitors. They are also more likely to purchase the product of the customer again and to recommend them to others.
You need a well-planned plan to have an impact on the US market. This includes adapting your tools to meet local requirements and positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. Collaboration with local authorities, associations and experts is also crucial. In this way you can be sure that the power tools you purchase conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
In a marketplace where product quality is so important, retailers must be aware of the products they sell. This will allow them to make informed choices about the products they can offer their customers. This knowledge could make the difference between making a successful or a poor sale.
Knowing which tool is perfect for a specific project will help you match the right tool to your customer's needs. You'll build trust and a sense of loyalty among your customers. This will help you feel confident that you're providing a complete service.
Additionally, understanding the trends in DIY culture can help you better understand what your customers want. For example, a growing number of homeowners are taking on home improvement projects which require power tools. This could lead to an increase in the sales of these tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, while Ryobi and Craftsman brands 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
Most consumers purchase power tools to replace the broken one or tackle the new project. Both offer opportunities for upsells or add-on sales.
According to power tool shops near me 's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study, 35 percent of power tool purchases resulted from an anticipated replacement. The customers might require additional accessories, or upgrade to a more powerful model.
Whether your customer is an experienced DIYer or just starting out in the hobby, they will likely need to replace their power tools' carbon brushes as well as drive belts and power cords with time. These items will ensure your client gets the most from their investment.
When buying power tools, technicians take into consideration three aspects: the tool's application, the power source and safety. These aspects help technicians make informed choices about the best tools to use in their repairs and maintenance work. This helps them optimize the performance of their tools and reduce the cost of ownership.
Tip 4: Stay up-to-date with the latest technologies.
The latest power tools, for example, offer smart technology which improves the user's experience and sets them apart from competitors who still rely on old-fashioned battery technology. Wholesalers in B2B who carry and sell these devices 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 feet tooling department, is a testament to the importance of keeping current with the latest technologies. "Manufactures are constantly changing the design of their products" Karch says. "They used to hold their designs for five or ten years, but now they change them every year."
In addition to taking advantage of the modern technologies, B2B wholesalers should also focus on improving existing models. By incorporating lightweight materials and adjustable handles, wholesalers can reduce fatigue from long-term use. power tools sale are essential to many contractors working in the field who utilize the tools for a long period of time. The market for power tools is divided into professional and consumer groups, which means that major players are constantly improving their designs and developing new features to appeal to a wider audience.
Tip 5: Create a Point of Sales
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 develop more effective marketing and inventory strategies.
Using data from the point of sale (POS), you can track DIY projects your customers undertake when buying power tools and accessories. Knowing what projects your customers are working on enables you to increase sales and provide additional products. It helps you anticipate the needs of your customers, so that you always have the right products in hand.
You can also utilize transaction data to identify trends in the market and adjust production cycles in line with these trends. For example, you can make use of this information to track fluctuations in your brand and the market share of your retail partners and help you align your product strategies with consumer preferences. POS data can also be used to optimize inventory levels, reducing the risk of stocking up. It can also help you to evaluate the effectiveness of promotional campaigns.
Tip 6: Make an Point of Service
Power tools is a high-profit, complex market that requires substantial marketing and sales efforts to remain competitive. In the past, getting a competitive advantage in this market was achieved by pricing or positioning products. However, these strategies are no longer effective in today's omnichannel environment where information is easily available to be 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, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin has a 12,000 square-foot power tool department. In the beginning, his store featured a sampling of brands, but as he began listening to the customers of contractors, he learned that most were loyal to a particular brand.
Karch and his team ask their customers what they would like to do with the tool before presenting them with the possibilities. This gives them confidence to recommend the most effective tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely to blame their vendor for a malfunctioning tool during the course of work.
Tip 7: Become a customer service guru
The market for power tools has become a very competitive area for hardware retailers. People who succeed in this market tend to be more committed to a single brand rather than to carry a variety of brands. The amount of space that a retailer can devote to a particular category can influence how many brands they carry.
Customers often need assistance when they visit to purchase a power tool. Sales associates can offer expert advice to customers who are looking to replace a broken tool or undertaking an upgrade project.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the staff at his store is trained to ask questions that can result in a sale. He says they start by asking the buyer what they plan to use the product. "That's how you determine the type of tool you need," he says. Then, they inquire about the project and what kind of experience the client has with various types of projects.
Tip 8: Create a Point of Warranty
The warranty policies of power tool manufacturers are quite different. Some are fully comprehensive, while others are stingy or even refuse to cover certain parts of the equipment. It's important for retailers to understand the distinctions before buying, since customers will buy tools from companies that back them up.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tool department as well as an repair shop within the premises that can handle 50 models of tools. He has observed that many of his contractor clients are loyal to a particular brand. Therefore, he prefers to carry only a few brands instead of trying to carry samples of different products.
He also appreciates 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 establish trust between the store and the customers. Good relationships with suppliers may lead to discounts on future purchases.