Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. Despite an expected slowdown in 2021 due to the COVID-19 pandemic the demand is still at or near pre-pandemic levels.
In terms of outlet dollar share, Home Depot leads all outlets when it comes to sales of power tools. Lowe's isn't far behind. Both are competing against power tools made in China.
Tip 1: Create a Brand Commitment
Many manufacturers of industrial products put more emphasis on sales and marketing. This is because the long-term selling 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.
However, industrial tool manufacturing companies should consider rethinking their marketing strategy. The digital age has raced past traditional companies that rely on a few distributors and retailers for sales.
Brand commitment is a key factor in power tool sales. When a buyer is committed to a specific brand and brand, they are less responsive to competitor's messages. Moreover, they are more likely to buy the item of the customer time and time again and recommend it others.
You need a well-planned plan to be successful in the US market. This means adjusting your tools to meet the local requirements and positioning your brand in a strategic way, and making use of distribution channels and marketing platforms. Collaboration with local authorities as well as associations and experts is also essential. In this way, you can be confident that your power tools conform to the laws of the country and standards.
Tip 2: Know Your Products
Retailers need to be knowledgeable about the products they offer especially in a marketplace which places a great value on the quality of the product. This will help them make informed choices about the products they offer their customers. This information can be the difference between making a successful or bad sale.
For example knowing that a particular tool is suitable for a particular project will allow you to match your customer with the right tool for their requirements. You'll build trust and loyalty among your customers. It will also give you assurance that you're offering the complete solution.
Understanding DIY culture trends can help you understand your customers' requirements. For example, a growing number of homeowners are taking on home renovation projects that require power tools. This can result in an increase in sales of these tools.
According to DurableIQ, DeWalt is the leader in power tool units with 16 percent. However, Ryobi and Craftsman have seen their shares decrease year-overyear. Despite this, both online and in-store purchases are increasing.
what are the best power tools : Offer Full-Service Repair
The most frequent reason why a consumer makes a power tool purchase is to replace one that has broken down or to take on an entirely new project. Both offer opportunities for upsells or 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 resulted from an anticipated replacement. Customers often require additional accessories or may require upgrading to better quality models.
Whether your customer has experience in DIY or is just beginning the hobby they will need to replace carbon brushes, drive cords, and power cords of their tools over time. Being on top of these important items will help your customer make the most of their investment.
When buying power tools, technicians consider three factors: the application, the power source and security. These factors allow technicians to make informed decisions when choosing the appropriate tools for their maintenance and repair tasks. This allows them to maximize the effectiveness of their tools and lower the cost of ownership.
Tip 4: Stay current with the latest technology
For instance, the latest power tools offer smart technology that improves the user experience and sets them apart from other tools that rely on old battery technology. Wholesalers of B2B who stock and sell these devices can boost sales by targeting professional and tech-savvy contractors.
Karch's business, which has more than 30 years of experience and a 12,000 square foot tool department is a testament to the importance of staying up-to-date with the latest technology. "Manufactures are constantly adjusting the design of their products" he says. "They used to hold their designs for five or ten years, but now they are changing them each year."
B2B wholesalers need to not only embrace the latest technologies but also enhance their existing models. By incorporating lightweight materials and adjustable handles, wholesalers can decrease fatigue due to long-term use. These features are crucial for many professionals who must use the tools for long periods of time. The power tools industry 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 reach an even larger audience.
Tip 5: Create a Point of Sale
The online marketplace has transformed the power tools market. Modern methods for data collection have allowed business professionals to gain an overall overview of market trends, allowing them to shape inventory and marketing strategies more effectively.
power tools online store of sale (POS) information can, for example, allow you to keep track of the types of projects DIYers tackle when they purchase tools and accessories. Knowing what projects your customers are working on permits you to upsell and offer additional products. It allows you to anticipate your customers' needs to ensure that you have the right products on hand.
You can also use transaction data to determine trends in the market, and then adjust production cycles in line with these trends. You could, for instance, use this data to monitor changes in your retail partners' and your brand's market shares. This will allow you to align product strategies with consumer preferences. POS data can also be used to optimize inventory levels, reducing the risk of stocking up. It can also be used to determine the effectiveness of promotions.
Tip 6: Be a good neighbor
Power tools is a profitable complex market that requires substantial sales and marketing efforts to stay competitive. In the past, getting an advantage in this market was achieved through pricing or positioning products. But these methods are not as effective in the current world of omnichannels where information is easily communicated.
Retailers who focus on service are more likely to keep customers and build brand loyalty. Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, runs a 12,000 square-foot power tool department. Initially, his department featured a sampling of brands, but when he listened to customers who were contractors, he discovered that the majority were brand loyal.
Karch and his staff ask their customers what they plan to do with a tool prior to showing them the alternatives. This gives them the confidence to recommend the most effective tool for the job and also builds trust with the customer. Customers who are familiar with their product are less likely to blame their supplier for a tool failure on the job.
Tip 7: Be a guru in customer service
Power tool retailers are facing an extremely competitive market. The retailers that are successful in this market tend to be more committed to a specific brand rather than to carry a variety of brands. The amount of space that a retailer is able to devote to a specific category could determine the number of brands they carry.
When customers go in to purchase an electric tool they may need assistance selecting the right product. Whether they are replacing an old one that is broken or tackling an upgrade project clients require expert guidance from sales associates.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales staff is educated to ask the right questions to help make a sale. They start by asking what the customer plans to do with the tool, he adds. "That's the primary factor in deciding what kind of tool to sell 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 others are stingy, or do not cover certain components of the tools at all. It's important for retailers to be aware of these differences before buying, since customers will buy tools from companies that offer warranties.
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 as well as repair shop on site that repairs 50 different lines of tools. He has learned that many of his contractor clients are brand loyal. So, he chooses to carry a limited number of brands instead of trying to carry a variety of products.
He also likes the fact that his employees have the opportunity to meet with vendors one-on-one to discuss new products and provide feedback. This kind of interaction is vital because it builds trust between the customers and employees. Building strong relationships with suppliers could result in discounts on future purchases.