Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professionals and consumers. The demand for power tools is at or close to pre-pandemic levels despite a slowdown due to the COVID-19 outbreak in 2021.
Home Depot is the leader in the sales of power tools in terms of dollar share. Lowe's follows closely behind. Both are competing with power tools manufactured in China.
Tip 1: Be committed to a brand
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term sales requires a lot back-and forth communication and a thorough understanding of the product. This type of communication is not suitable for emotional marketing strategies.
However, companies that manufacture industrial tools need to rethink their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small circle of retailers and distributors for sales.
The key to power tool sales is brand commitment. If a customer is loyal to a particular brand, they will be less sensitive to communications from competitors. Moreover, they are more likely to buy the client's product time and time again and recommend it 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 requirements, positioning your brand in a competitive way, and making use of marketing channels and distribution channels. It is also crucial to work with local authorities, industry associations, and experts. In this way, you can be confident that your power tools will comply with the country's regulations and standards.
Tip 2: Know Your Products
Retailers should be familiar with the products they sell particularly in a market which places a great value on the quality of the product. This will enable them to make informed decisions about the products they offer their customers. This knowledge could make the difference between a successful or a poor sale.
Knowing which tool is perfect for a specific 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 ensure that you're providing the complete service.
Understanding DIY culture trends can also help you understand the needs of your customers. As an example the increasing number of homeowners are taking on home renovation projects requiring the use of power tool. This could lead to an increase in the sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool sales with 16 percent. However, Ryobi and Craftsman have decreased their share year-over-year. However, both online and in-store purchases are on the rise.
power tools store near me : Offer Full-Service Repair
The most frequent reason why a consumer makes a power tool purchase is to replace a tool that has been damaged or broken down or to take on a new project. Both of these can be used to increase sales and add-on sales.
According to the Home Improvement Research Institute's (HIRI) 2020 Power Tools and Accessories Product Purchase Tracking Study 35 percent of purchases for power tools were the result of an anticipated replacement. Customers may require additional accessories, or upgrade to a more powerful model.
If your customer is an experienced DIYer or new to the hobby, they will likely require replacement of their power tools' carbon brushes, drive belts and power cords as time goes by. These essentials will ensure that your client gets the most from their investment.
When purchasing power tools, technicians consider three factors: the application, the power source and safety. These factors aid technicians in making educated decisions about the most suitable tools to use in their repairs and maintenance tasks. This will help them maximize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Continue to Keep Up with Technology
The most recent power tools, like they feature smart technology that enhances the user experience and sets them apart from those who rely on old-fashioned battery technology. B2B wholesalers who stock and sell these tools could boost sales by targeting tech savvy contractors and professionals.
Karch's business, with more than 30 years of experience, and a 12,000 square feet department for tools is a testament to the importance of staying up-to-date with the latest technology. He says that manufacturers are constantly changing their product designs. "They used to keep their designs for five or 10 years, but now they're changing them each year."
In addition to embracing the latest technologies, B2B wholesalers should also be looking to improve existing models. By incorporating lightweight materials as well as adjustable handles, wholesalers can reduce fatigue due to long-term use. These features are essential for a large number of professional contractors who need to make use of the tools for long periods of time. The market for power tools is divided into the consumer and professional segments. This means that the major players are always working to improve their designs and develop new features in order to reach a larger audience.
Tip 5: Create a Point of Sales
The online marketplace has transformed the market for power tools. Data collection methods have improved allowing business professionals to get a better understanding of the market. This helps them develop more effective inventory and marketing strategies.
By utilizing data from the point of sale (POS), you can track DIY projects that customers are completing when purchasing power tools and other accessories. Knowing the kinds of projects that your customers are working on allows you to offer add-on sales and opportunities for upselling. It allows you to anticipate the needs of your customers to ensure that you have the appropriate products on the market.
You can also use transaction data to determine trends in the market, and then adjust production cycles accordingly. For example, you can make use of this information to track fluctuations in your brand's or the market share of your retail partners and help you match your product strategies to consumer preferences. Similarly, you can use POS data to optimize inventory levels and reduce the risk of overstocking. It can also help you to assess the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
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 accomplished through pricing or positioning products. However, these tactics are not as effective in the current omnichannel environment where information is easily available to be shared.
Retailers who concentrate on 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 department. At first, the department offered various brands, but when he began listening to customers who were contractors and found that the majority were loyal to a particular brand.
To make a mark in their business, Karch and his team first ask their customers what they want to do using the tool, before showing them what they have available. This gives them confidence to recommend the right tool for the job, and builds trust with the customer. Customers who are familiar with their product are less likely than others to blame the retailer for a failure of a tool on the job.
Tip 7: Be a guru in customer service
Power tool retailers are facing an extremely competitive market. The retailers that have had the most success in this market tend to make a firm commitment to a brand instead of simply carrying a few manufacturers. The amount of space a retailer is able to devote to a category may also affect the number of brands they are able to carry.
Customers often need assistance when they go in to purchase a power tool. If they're replacing an old model that is broken or tackling the task of renovating Customers need guidance from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that the employees at his store are educated to ask questions that can lead to an offer. They start by asking what the customer is planning to use the tool, he says. "That's the most important factor to consider when deciding what kind of tool to market them," he adds. Then, they inquire about the experience of the customer with various types of projects and the project.
Tip 8: Be sure to mention your warranty
The warranty policies of the manufacturers of power tools differ greatly. Some are fully comprehensive, while some are stingy, or refuse to cover certain aspects of the tool at all. It's important for retailers to understand the distinctions before purchasing, as customers 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 repair shop on site that repairs 50 different lines of tools. He has discovered through the years that a majority of his customers who are contractors are brand loyal, so he prefers to focus on the most popular brands rather than attempting to offer a wide range of products.
He also likes that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and provide feedback. This kind of interaction is vital because it helps build trust between the store's clients and employees. Good relationships with suppliers could result in discounts on future purchases.