Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are essential for both consumer and professional use. The demand for power tools remains at or near pre-pandemic levels despite a slowdown due to the COVID-19 outbreak in 2021.
Home Depot is the leader in sales of power tools in terms of dollar share. Lowe's is close behind. Both are however facing stiff competition from China-manufactured power tools.
power tool store : Commit to a brand
Many manufacturers of industrial products place a higher priority on sales over marketing. This is due to the fact that the long-term sales process requires a lot back-and-forth communication as well as a detailed understanding of the product. This kind of communication isn't conducive to emotional marketing tactics.
However, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital world has surpassed traditional manufacturing companies that rely on a select group of distributors and retail outlets to sell their products.
Brand loyalty is a major aspect in the sales of power tools. When a customer is committed to a specific brand, they are less sensitive to the messages of competitors. In addition they are more likely to purchase the item of the customer time and time again and recommend it others.
To have a positive impact on the United States market, you need to have an organized strategy. This means adapting your tools to meet the local requirements, positioning your brand in a strategic way, and leveraging distribution channels and marketing platforms. Collaboration with local authorities and associations, as well as experts is also crucial. You can be certain that your power tool will be in compliance with the standards and regulations of the country when you follow these guidelines.
Tip 2: Be aware of Your Products
Retailers must be aware of the products they offer especially in a marketplace which places a great value on product quality. This will help them make informed decisions about what they are selling. This information can be the difference between making a good or a bad purchase.
Knowing which tool is suitable for a project will help you match the right tool to the needs of your customer. You'll earn trust and a sense of loyalty among your customers. This will give you confidence that you are offering the complete service.
Understanding DIY culture trends can help you understand your customers' requirements. As an example increasing numbers of homeowners are completing home improvement projects that require the use of power tools. This could lead to a rise in the sales of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, however Ryobi and Craftsman brands have seen their share decrease year-over-year. However, both online and in-store purchases are on the rise.
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 broken down or to take on the task of a new one. 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 better-performing model.
Whether your customer has experience in DIY or is just beginning the hobby, they will have to replace the carbon brushes, drive cords, and power cords of their power tools as time passes. Making sure they are up to date with these essentials will help your customer get the most out of their investment.
When buying power tools, technicians take into consideration three factors: the application, the power source and safety. These factors help technicians make educated decisions about the most suitable tools to use in their repairs and maintenance work. This helps them maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Keep Keeping Up With Technology
For instance, the most recent power tools offer advanced technology that enhances users' experience and differentiates them from competitors that still rely on older battery technology. B2B wholesalers that offer and sell these tools can increase sales by targeting professionals and contractors who are technologically advanced.
For Karch, whose business has more than three decades of experience and a 12,000-square-foot department for tools, staying up with the latest technology is vital. "Manufactures are constantly adjusting the design of their products," Karch says. "They used to keep their designs for five or 10 years, but they're now changing them each year."
B2B wholesalers should not just embrace the latest technologies but also enhance their existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the fatigue that comes from prolonged use. These features are essential for a large number of professionals who must use the tools for long durations. The market for power tools is divided into consumer and professional groups and this means that the biggest players are constantly improving their designs and developing new features to reach more people.
Tip 5: Create a Point of Sales
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 helps them develop more effective marketing and inventory strategies.
By utilizing data from the point of sale (POS) You can track DIY projects your customers undertake when buying power tools and other accessories. Knowing what projects your customers are working on permits you to upsell and offer additional products. It also helps you anticipate the requirements of your customers making sure you have the right products on hand.
You can also utilize transaction data to identify trends in the market and adapt production cycles accordingly. For instance, you can make use of this information to track fluctuations in your brand and retail partner market shares, enabling you to match your product strategies to consumer preferences. Similarly, you can use POS data to optimize inventory levels and reduce the chance of overstocking. It can also help you to assess the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a profitable, complex market that requires substantial marketing and sales efforts in order to stay competitive. The classic ways to gain a strategic advantage in this field have been by positioning or pricing products. However, these methods are no longer effective in today's omnichannel marketplace where information is shared so quickly.
Retailers who provide a high level of providing excellent service are more likely to keep customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin is the owner of a 12,000-square-foot power tool department. At first, the department offered a sampling of brands, but as he began listening to the customers of contractors, he discovered that the majority were brand loyal.
Karch and his team ask their customers what they would like to do with a tool before presenting them with the options. This gives them the confidence to recommend the right tool for the job and builds trust with the customer. Customers who are familiar with their product well are less likely to blame their retailer for a tool malfunction on the job.
Tip 7: Make a Point of Customer Service
Power tool retailers face an extremely competitive market. Those who have seen success in this area tend to have a strong commitment to a brand rather than simply carrying a selection of manufacturers. The amount of space a retailer must devote to this category can be a factor in the number of brands it can carry.
When customers go in to purchase a power tool they may need assistance selecting a product. Whether they are replacing an old model that is broken or tackling the task of renovating Customers need advice from sales representatives.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is trained to ask the right questions in order to make the sale. He says they start by asking the customer what he or she plans to do with the item. "That's the best way to determine the type of tool they require," he says. Then, they inquire about the project and what kind of experience the customer has with different kinds of projects.
Tip 8: Make sure to make mention of your warranty
The manufacturers of power tools differ greatly in their warranty policies. Certain manufacturers offer a full warranty, while others offer a limited warranty or do not cover certain tools. It's important for retailers to be aware of the differences prior to 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 and an repair shop within the premises that can handle 50 models of tools. He has learned through the years that a majority of his contractors are brand loyal, so the company prefers to stick to only a few brands rather than attempting to offer a variety 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 personal contact is crucial because it helps build trust between the store's clients and employees. Good relationships with suppliers can even result in discounts for future purchases.