Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. 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 outlet dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely. Both are competing against power tools manufactured in China.
Tip 1: Make a Brand Commitment
Many industrial product manufacturers place an emphasis on sales and marketing. This is because the long-term sales process requires a lot back-and-forth communication and a thorough understanding of the product. This kind of communication isn't ideal for marketing that is based on emotion.
But, companies that produce industrial equipment should reconsider their marketing strategy. The digital age has raced past traditional companies that rely on a small group of retailers and distributors for sales.
Brand commitment is an important element in the sale of power tools. If a client is loyal to a particular brand and is loyal to a brand, they are less prone to messages from competitors. They are also more likely to purchase the products of the brand they are loyal to and to recommend them to friends and family.
You need a well-planned plan to be successful in the US market. This includes adapting your tools to meet local needs, positioning your brand in a strategic manner, and leveraging marketing channels and distribution channels. It is also essential to work with local authorities, industry associations, and experts. You can be certain that your power tool is in line 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 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 information can make the difference between a good sale and a poor one.
Knowing which tool is suitable for a specific 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. It will also give you confidence that you're providing the complete solution.
Additionally, understanding the trends in DIY culture will help you know what your customers are looking for. For instance, a growing number of homeowners are taking on home improvement projects that require the use of power tools. This can lead a spike in sales of power tools.
According to Durable IQ, DeWalt leads in power tool share of 16%, although Ryobi and Craftsman brands have seen their share drop year-over-year. However the fact that both in-store and online purchases are increasing.
power tool sales : Offer Full-Service Repair
Most consumers purchase power tools to replace the broken one or tackle the 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 power tool purchases were the result of a planned replacement. The customers might require additional accessories, or upgrade to a higher-performing model.
If your customer is a seasoned DIYer or just starting out in the hobby, they'll likely require replacing their carbon brushes for power tools as well as drive belts and power cords over time. These basic items will ensure that your customer gets the most out of their investment.
Technicians must consider three important aspects when buying power tools: application, how it will be used and safety. These factors allow technicians to make informed choices when it comes to selecting the right tools for their repair and maintenance work. This helps them maximize the effectiveness of their tool and lower the cost of owning it.
Tip 4: Continue to Keep Up with Technology
For instance, the most recent battery tools have intelligent technology that enhances the user experience and differentiates them from competitors that still rely on older battery technology. B2B wholesalers that stock and sell these devices can increase sales by focusing on professionals and contractors who are technologically advanced.
Karch's business, which has over 30 years of experience, and a 12,000 square foot department for tools, is a testament to the importance of keeping up-to-date with new technologies. He says that manufacturers are constantly changing their designs for their products. "They were able to hold their designs for five or 10 years, but now they alter their designs every year."
In addition to embracing modern technologies, B2B wholesalers should also focus on improving existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are essential for many contractors working in the field who utilize the tools over a long period of time. The power tool industry is divided into professional and consumer groups. This means that the biggest players are constantly working to improve their designs and create new features to reach a wider audience.
Tip 5: Make a Point of Sale
The online marketplace has changed the market for power tools. Advancements in data collection methods have enabled professionals in the field to get an entire overview of market trends and help them develop inventory and marketing strategies more effectively.
Using information 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 allows you to offer upsells and extras. It also allows you to anticipate the requirements of your clients making sure you have the appropriate products in stock.
Additionally, transaction data can help you to identify market trends and adjust production cycles accordingly. For instance, you can make use of this information to track fluctuations in your brand's and retail partners market shares. This will allow you to align product strategies with consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of overstocking. It also helps to assess the effectiveness of promotions.
Tip 6 Tip 6: Be a good neighbor
Power tools are a tangled market that is high-profit and requires a substantial amount marketing and sales efforts to stay competitive. The classic ways to gain a strategic advantage in this market have been by positioning or pricing products. However, these strategies are no longer effective in today's multichannel marketplace in which information is dispersed so quickly.
Retailers who provide a high level of providing a high-quality 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. At first, the department offered various brands, but as he began listening to customers who were contractors, he learned that most were loyal to a particular brand.
To be successful in their customers' business, Karch and his team first ask customers what they want to do with the tool, then show them what they have available. This gives them the confidence to recommend the best tool for a job, and it creates trust with customers. Customers who are familiar with their product are less likely than others to blame the retailer for the failure of a tool on the job.
Tip 7: Become a customer service guru
Power tool retailers are facing a fiercely competitive market. The retailers that are successful in this market tend to be more committed to a single brand than to carry a variety of manufacturers. The amount of space a retailer is able to devote to a particular category can affect the number of brands they are able to carry.
Customers frequently require assistance when they visit to purchase a power device. When they're replacing an old one damaged or undertaking a renovation project, customers need expert advice from sales representatives.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that the employees at his store are trained to ask questions that will lead to the sale. They begin by asking the customer what they plan to use the product. "That's the key to determining the kind of tool to sell them," he adds. Then, they inquire about the customer's experience with various types of projects and the project.
Tip 8: Create a Point of Warranty
The makers of power tools vary widely in their warranty policies. Some companies offer a complete warranty, whereas others offer more limited warranties or refuse to cover certain tools. It's important for retailers to understand the differences prior to purchasing, as buyers will purchase tools from companies that offer warranties.
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 discovered over time that a lot of his contractor customers are brand loyal, so he prefers to focus on only a few brands rather than trying to offer a variety of products.
He also appreciates that his employees get one-on-one time with vendors to discuss new products and give feedback. This personal contact is important because it helps to establish trust between the store and its customers. Building strong relationships with suppliers can even result in discounts on future purchases.