Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are vital for both consumers and professionals. Despite an expected slowdown in 2021 due to the COVID-19 pandemic, the demand is still at or near pre-pandemic levels.
one-time offer is the leader in sales of power tools in terms of dollar share. Lowe's is second in line. However, both are being pushed by China-made power tools.
Tip 1: Create an Engagement to Brands
Many manufacturers of industrial products place more emphasis on sales than marketing. This is due to the fact that the long-term sales process involves a lot of back and forth communication and detailed knowledge of the product. This type of communication does not permit emotional marketing tactics.
However, companies that make industrial tools need to rethink their marketing strategy. The digital age has accelerated past traditional manufacturers who rely on a small group of retailers and distributors to sell their products.
The key to selling power tools is brand commitment. When a customer is loyal to a brand, they will be less prone to the messages of competitors. Moreover they are more likely to purchase the item of the customer repeatedly and recommend it to others.
You require a well-planned strategy to be successful in the American market. This means adapting your tools to meet the local requirements and positioning your brand in a competitive way, and making use of marketing channels and distribution channels. It is also essential to collaborate with local authorities as well as industry associations and experts. You can be assured that your power tool is in line with the standards and regulations of the country when you do this.
Tip 2: Know Your Products
Retailers must be aware of the products they offer, especially in a market which places a great importance on the quality of products. This will enable them to make informed choices about what they offer their customers. This knowledge could also be the difference between a good sale and a bad one.
For instance knowing that a particular tool is ideal for a particular project can help you match your client with the appropriate tool to meet their requirements. This will help you build trust and loyalty with your customers. This will give you confidence that you are offering a complete service.
Understanding DIY culture trends can also help you understand your customers' needs. For instance, a growing number of homeowners are taking on home improvement projects that require power tools. This could lead to a rise in the sale of power tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16%. However, Ryobi and Craftsman have seen their share decrease year-over-year. However the fact that both in-store and online purchases are increasing.
Tip 3: Offer Full-Service Repair
The most frequent reason why a consumer makes a power tool purchase is to replace one that has been damaged or broken, or to embark on an entirely new project. Both of these tools offer opportunities for upsells or add-on sales.
According to the Home Improvement Research Institute (HIRI) 2020 Tracking Study of Power Tools and Accessories, 35 percent of all purchases for power tools are the result of planned replacements. The customers might require additional accessories or upgrade to a more powerful model.
If your customer is a seasoned DIYer or new to the hobby, they will likely require replacing their power tools' carbon brushes, drive belts and power cords with time. These items will ensure your customer gets the most from their investment.
When purchasing power tools, technicians consider three factors: the application, the power source and security. These aspects help technicians make informed choices when selecting the right tools for their repair and maintenance work. This helps them maximize the effectiveness of their tools and lower the cost of ownership.
Tip 4: Keep current with the latest technology
For example, the latest power tools offer smart technology that improves users' experience and differentiates them from other brands that still rely on old battery technology. Wholesalers in B2B who carry and sell these tools could increase sales by targeting tech savvy contractors and professionals.
For Karch who's business has more than three decades of experience and a 2,000-square-foot tool department, keeping up with the latest technologies is crucial. "Manufactures are constantly changing the design of their products" he says. "They used to hold their designs for five or 10 years, but they're now changing them every year."
B2B wholesalers should not just adopt the latest technology, but also improve existing models. For instance, by incorporating adjustable handles and lightweight materials, they can reduce the fatigue caused by prolonged use. These features are crucial for a lot of professional contractors who need to make use of the tools for long durations. The industry of power tools is divided into professional and consumer groups and this means that the biggest players are always working on improving their designs and developing new features to appeal to a wider audience.
Tip 5: Create a point of Sales
The landscape of e-commerce has transformed the power tool market. The advancements in data collection techniques have allowed business professionals to get an entire overview of market trends, allowing them to shape marketing and inventory strategies more effectively.
Point of sale (POS) information can, for example, allow you to track the types of projects that DIYers are working on when purchasing tools and accessories. Knowing what projects your customers are working on allows you to increase sales and provide add-ons. It also helps you anticipate the needs of your customers making sure you have the appropriate products in stock.
You can also use transaction data to spot market trends, and adjust production cycles accordingly. For example, you can utilize this information to track fluctuations in your brand's or market share of retail partners and help you adapt your product strategies to consumer preferences. POS data can also be used to improve inventory levels, reducing the chance of overstocking. It can also help you to assess the effectiveness of promotions.
Tip 6: Establish an Point of Service
Power tools is a high-profit complex market that requires substantial sales and marketing efforts to remain competitive. The most common methods of gaining an advantage in this industry were by positioning or pricing products. However, these tactics no longer work in the omnichannel world of today in which information is dispersed in such a rapid manner.
Retailers who make a point of providing a high-quality service are more likely to keep customers coming back and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin has a 12,000 square-foot power tool department. His initial department featured a variety of brands. However when he spoke to contractors, he discovered that they were loyal to their favorite brand.
Karch and his team ask their customers what they intend to do with a tool before presenting them with the alternatives. This gives them confidence to recommend the best tool for the job, and builds trust with the customer. Customers who know their product well are less likely to blame their supplier for a malfunctioning tool during the course of work.
Tip 7: Create an effort to be a Point of Customer Service
The market for power tools has become a very competitive area for hardware retailers. The retailers that have had the most success in this market tend to make a strong commitment to a brand rather than simply carrying a sampling of manufacturers. The amount of space a retailer can devote to a particular category can influence how many brands they carry.
When customers go in to purchase an electric tool, they often need help selecting the right product. Recommended Online site can provide professional guidance to customers looking to replace a broken tool or undertaking a renovation project.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is trained to ask the right questions to help make a sale. They begin by asking what the customer is planning to use the tool for, he adds. "That's the key to determining the kind of tool to offer them," he adds. Then they ask about the experience of the customer with different types projects and the project.
Tip 8: Create an End of Warranty
The manufacturers of power tools differ greatly in their warranty policies. Some are completely comprehensive, while some are stingy, or do not cover certain components of the equipment. It's important for retailers to be aware of the differences prior to purchasing, as customers will purchase tools from firms that provide them with a warranty.
Mike Karch is the president of Nue's Hardware and Tools, located in Menomonee, Wisconsin. He has a 12,000 square-foot power tool department and an on-site repair shop that repairs 50 different lines of tools. He has learned through the years that a majority of his contractor customers are brand loyal, so he prefers to focus on the most popular brands rather than carry a sampling of different products.
He also appreciates that his employees have the ability to meet with vendors one-on-one to discuss new products and give feedback. This type of personal interaction is crucial because it helps build trust between the retailer and customers. Good relationships with suppliers can even result in discounts on future purchases.