Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both professional and personal use. Despite the fact that 2021 will see a slowdown due to the COVID-19 pandemic, demand remains close to or at levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's isn't far behind. But both companies are facing stiff competition from China-manufactured power tools.
Tip 1: Make an Engagement to Brands
Many industrial product manufacturers place an emphasis on sales and marketing. This is because a long-term purchase requires a lot of back and forth communication and in-depth knowledge of the product. This kind of communication doesn't allow for emotional consumer marketing techniques.
However, companies that make industrial equipment should reconsider their marketing strategy. The digital age has accelerated over traditional manufacturers who depend on a small circle of retailers and distributors to sell their products.
One of the most important factors in selling power tools is brand loyalty. If a client is loyal to a particular brand they are less prone to the messages of competitors. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to others.
You require a well-planned strategy to make an impact on the American market. This means adjusting your tools to meet local requirements, positioning your brand in a competitive manner, and leveraging marketing channels and distribution channels. It is also crucial to work with local authorities, industry associations, and experts. By doing so, you can be confident that the power tools you purchase comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they offer particularly in a market that places such a high value on the quality of the product. This will allow them to make informed decisions about what they offer. This knowledge can make the difference between making a successful or a bad purchase.
Knowing which tool is suitable for a project will assist you in matching the perfect tool to your customer's needs. This will help you build trust and loyalty with your customers. This will give you confidence that you are offering a complete service.
Also, knowing the latest trends in DIY culture can help you better understand what your customers want. For instance, a rising number of homeowners are taking on home renovation projects that require 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 sales with 16%. However, Ryobi and Craftsman have decreased their share year-over-year. However the fact that sales on both stores and online are on the increase.
Tip 3: Offer Full-Service Repair
The most frequent reason a consumer makes a power tool purchase is to replace one that has failed or to embark on the task of a new one. 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 purchases of power tools resulted from a planned replacement. The customers might require additional accessories, or upgrade to a better-performing model.
If your customer is an experienced DIYer or is new to the hobby, they'll require replacing their carbon brushes for power tools drive belts, drive belts, and power cords with time. These basic items will ensure that your customer reaps the maximum benefit from their investment.
When buying power tools, technicians look at three factors: the application, the power source and security. These factors aid technicians in making informed decisions about the best tools to use in their repairs and maintenance tasks. This enables them to maximize the effectiveness of their tool and lower the cost of owning it.
Tip 4: Keep up-to-date with the latest technologies.
The most modern power tools, for example they feature smart technology that enhances user experience and differentiates them from competitors who still depend on older battery technology. B2B wholesalers that offer and sell these tools can increase sales by focusing on professional and tech-savvy contractors.
Karch's company, which has more than 30 years of experience and a 12,000 square feet tool department is a testimony to the importance of staying current with the latest technologies. He says that manufacturers are constantly changing their designs for their products. "They used hold their designs for five or 10 years, but now they change their designs every year."
In addition to taking advantage of the latest technologies, B2B wholesalers should also focus on improving existing models. For instance, by incorporating adjustable handles and lightweight materials, they can lessen the fatigue that comes from prolonged use. These features are important for a large number of professional contractors who need to make use of the tools for long periods. The power tools industry is divided into professional and consumer groups which means that the major players are always working on improving their designs and developing new features that will appeal to more people.
Tip 5: Create a Point of Sale
The online marketplace has changed the market for power tools. Data collection techniques have improved, allowing business professionals to gain a better understanding the market. This allows them to create more efficient inventory and marketing strategies.
Point of sale (POS) data for instance, allows you to monitor the kinds of projects DIYers tackle when purchasing tools and accessories. Knowing what projects your customers are working on permits you to offer upsells and extras. It also allows you to anticipate the needs of your customers and ensure that you have the correct products in stock.
Moreover, transaction data enables you to identify market trends and adjust your production cycles accordingly. You can, for example make use of this information to monitor fluctuations of your brand's and retail partners' market shares. This will allow you to align your product strategies with consumer preferences. POS data can also be used to optimize inventory levels, which reduces the risk of overstocking. It can also assist you to assess the effectiveness of promotional campaigns.
Tip 6: Create a Point of Service
Power tools is a high-profit, complex market that requires significant marketing and sales efforts in order to stay competitive. The classic ways to gain an advantage in this field have been by establishing pricing or positioning of products, but these tactics no longer work in today's omnichannel marketplace where information is distributed in such a rapid manner.
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 section. The department was initially home to various brands. However when he spoke to contractors, he noticed that they were loyal to their favorite brand.
Karch and his staff members ask their customers what they would like to do with the tool before showing them the options. power tools stores gives them the confidence to recommend the right tool for the job and also builds trust with customers. Customers who are familiar with their product are less likely to blame their vendor for a malfunctioning tool on the job.
Tip 7: Become a customer service guru
Power tool retailers are in a fiercely competitive market. People who have had success in this area tend to make a strong commitment to a brand instead of simply carrying a sampling of manufacturers. The amount of space that a retailer is able to devote to a particular category can affect the number of brands they can carry.
Customers often need assistance when they go in to purchase a power device. Whether they are replacing an old one damaged or undertaking the task of renovating clients require expert advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is trained to ask questions that could lead to the sale. They start by asking what the buyer is planning to use the tool according to him. "That's the best way to decide what kind of tool they require," he says. Then, they inquire about the experience of the customer with different types of projects as well as the project.
Tip 8: Be sure to be sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some are completely complete, while others aren't as generous or refuse to cover certain aspects of the equipment. It's crucial for retailers to be aware of these differences 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 tools department as well as an repair shop in-house that handles 50 models of tools. He has learned through the years that a majority of his contractors are brand loyal, so he focuses on only a few brands rather than offer a wide range of products.
He also likes the fact that his employees have the opportunity to have one-on-one meetings with vendors to discuss new products and give feedback. This type of personal interaction is crucial because it helps create trust between the store and its customers. Having good relationships with suppliers may result in discounts on future purchases.