Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. The demand for power tools remains at or close to pre-pandemic levels despite a slowdown owing to the COVID-19 outbreak in 2021.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's is close behind. However, both are facing stiff competition from China-manufactured 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 a long-term sales requires a lot of back and forth communication and detailed product knowledge. This type of communication does not allow for emotional consumer marketing strategies.
But, companies that produce industrial tools should rethink their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small circle of distributors and retailers for sales.
One of the most important factors in selling power tools is brand loyalty. If a client is committed to a certain brand, they are less sensitive to competitor's messages. They are also more likely to buy the client's products again and to recommend them to others.
It is essential to have a well-planned strategy to make an impact on the American market. This includes adapting your tools to meet local needs, positioning your brand in a strategic way, and leveraging marketing channels and distribution channels. It is also crucial to cooperate with local authorities and industry associations as well as experts. You can be sure that your power tool is in line with the requirements and standards of the country if you do this.
Tip 2: Know Your Products
In a market where product quality is important, retailers must be aware of the products they sell. This will help them make informed decisions about what they are selling. This knowledge could make the difference between making a successful or bad sale.
For example, knowing that a tool is suitable for a particular project can help you match your customer with the right tool for their requirements. You'll earn trust and a sense of loyalty among your customers. This will ensure that you provide an entire service.
Additionally, understanding the trends in DIY culture can help you comprehend what your customers want. For instance, a rising number of homeowners are tackling home renovation projects that require the use of power tools. This could lead to a rise in the sale of power tools.
According to Durable IQ, DeWalt leads in power tool unit share, which is 16%, however Ryobi and Craftsman brands have seen their share drop year-over-year. Despite this the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The most common reason that a buyer makes a tool purchase is to replace a tool that has been damaged or failed or to embark on a new project. Both present opportunities for upsells and additional sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of power tool purchases were the result of a planned replacement. These customers often require additional accessories or may require upgrading to better quality models.
If your customer is experienced in DIY or is new to the hobby, they will need to replace their carbon brushes, drive cords, and the power cords on their power tools over time. Keeping up with these essentials will help your customer get the most out of their investment.
When purchasing power tools, technicians consider three factors: the application the power source, and security. These aspects help technicians make informed choices about the best tools to use in their maintenance and repairs. This helps them maximize the effectiveness of their tool and reduce the cost of owning it.
Tip 4: Continue to Keep Up with Technology
For example, the latest battery tools have smart technology that improves the user experience and differentiates them from other brands that still depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these devices can boost sales by targeting professionals and contractors who are technologically advanced.
For Karch who's business has more than three decades of experience and a 2,000-square-foot department for tools, staying up with the latest technologies is crucial. He states that manufacturers are constantly changing their designs for their products. "They used hold their designs for 5 or 10 years but now they change them each year."
power tool shops near me need to not only embrace the latest technologies but also enhance their existing models. By adding lightweight materials and adjustable handles, wholesalers can reduce fatigue from long-term use. These features are important for many professional contractors who need to use the tools for long durations. The market for power tools is divided into professional and consumer groups which means that the major players are constantly enhancing their designs and creating new features to reach an even larger audience.
Tip 5: Create a point of Sales
The e-commerce landscape has transformed the power tools market. Data collection techniques have improved, allowing business professionals to gain a better understanding the market. This helps them develop more efficient inventory and marketing strategies.
Point of sale (POS) data can, for example, allow you to keep track of the types of projects DIYers tackle when purchasing power tools and other accessories. Knowing what projects your customers are working on permits you to offer upsells and add-ons. It also helps you anticipate the needs of your customers, ensuring that you have the appropriate products in stock.
Furthermore, transaction data allows you to detect trends in the market and adjust production cycles accordingly. For example, you can use this data to monitor changes in your brand's 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 improve inventory levels, reducing the risk of stocking up. It can also help you to assess the effectiveness of promotions.
Tip 6: Establish a Point of Service
Power tools are a complex market that is high-profit and requires a significant amount of marketing and sales effort to remain competitive. In the past, getting a competitive advantage in this market was accomplished by establishing prices or positioning of products. However, these strategies are not as effective in the current omnichannel environment where information is easily available to be shared.
Retailers who make a point of providing a high-quality service are more likely to retain customers and develop brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin has a 12,000 square-foot power tool department. His department initially featured several brands. However when he talked to contractors, he discovered that they were loyal to their favorite brand.
Karch and his staff ask their customers what they intend to do with a tool before showing them the possibilities. This gives them the confidence to recommend the appropriate tool for the job and also creates trust with customers. Customers who are familiar with their product well are less likely to blame their retailer for a tool malfunction during the course of work.
Tip 7: Create an effort to be a Point of Customer Service
Power tool retailers are in a fiercely competitive market. Those who have seen the most success in this market tend to have a strong commitment to a particular brand rather than merely carrying a selection of manufacturers. The amount of space a retailer is able to devote to a category may also influence how many brands they can carry.
When customers come in to purchase an electric tool they may need assistance choosing a product. Sales associates can offer expert advice to customers seeking to replace a damaged tool or are planning an upgrade project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are trained to ask the right questions in order to make the sale. They start by asking what the buyer is planning to do with the tool according to him. "That's the key to determining the kind of tool to offer them," he adds. Then they ask about the customer's experience with different types of projects as well as the project.
Tip 8: Make sure to mention your warranty
The warranties of the manufacturers of power tools are quite different. Some manufacturers offer a comprehensive warranty, while others offer a limited warranty or refuse to cover certain tools. It's crucial for retailers to be aware of the distinctions before making a purchase, because 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 a 12,000 square-foot power tool shop and an on-site repair shop that repairs 50 different brands of tools. He has discovered that a lot of his contractors are brand loyal. So, he chooses to carry only a few brands rather than carry a variety of products.
He also appreciates that his employees have one-on-one meetings with vendors to discuss new products and give feedback. This kind of interaction is vital since it builds trust between the store's customers and employees. Building strong relationships with suppliers could result in discounts on future purchases.