Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. The demand for power tools is at or near pre-pandemic levels despite a slowdown owing to the COVID-19 outbreak in 2021.
Home Depot is the leader in power tool sales based on dollar share. Lowe's follows closely. However, both are facing stiff competition from China-manufactured power tools.
Tip 1: Be committed to a brand
Many industrial products manufacturers prioritize sales over marketing. This is because a long-term sales requires a lot of back and forth communication and detailed product knowledge. This kind of communication doesn't lend itself to emotional consumer marketing techniques.
However, industrial tool manufacturing companies should think about rethinking their approach to marketing. The digital age has accelerated past traditional companies that rely on a few retailers and distributors for sales.
Brand loyalty is a major aspect in the sales of power tools. If a customer is loyal to a brand and is loyal to a brand, they are less prone to the messages of competitors. In addition, they are more likely to buy the product of the client repeatedly and recommend it to others.
To make a successful impact to be successful in the United States market, you need to have an organized strategy. This means adjusting your tools to meet the local requirements and positioning your brand in a competitive way, and leveraging marketing channels and distribution channels. It is also essential to work with local authorities, industry associations, and experts. You can be assured that your power tool will be in compliance with the requirements and standards of the country if you follow these guidelines.
Tip 2: Be aware of Your Products
In a world where product quality is so important, retailers must be aware of the products they offer. This will allow them to make informed decisions about what they offer. This knowledge could make the difference between making a good or bad sale.
For instance knowing which tool is best suited to specific projects will help you connect your customer with the right tool for their requirements. This will help you build trust and loyalty with your customers. It will also give you the confidence that you're offering a complete solution.
Understanding DIY culture trends can help you better understand the needs of your customers. For example, a growing number of homeowners are tackling home renovation projects that require power tools. This can lead to an increase in the sales 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. Despite this, both online and in-store purchases are on the rise.
Tip 3: Offer Full-Service Repair
The majority of people purchase power tools to replace the broken one or tackle a new project. Both offer the possibility of upselling or adding on 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 were the result of an anticipated replacement. Customers often require additional accessories or require upgrading to better quality models.
No matter if your customer is an experienced DIYer or is new to the hobby, they will 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 reaps the maximum benefit out of their investment.
Technicians must consider three important aspects when purchasing power tools applications, how it will be powered and safety. These aspects help technicians make informed choices when it comes to selecting the right tools for maintenance and repair work. This allows them to improve the effectiveness of their tools and lower the cost of ownership.
Tip 4: Stay up to date with technology
For instance, the most recent power tools offer intelligent technology that enhances the user experience and differentiates them from other tools that depend on old-fashioned battery technology. B2B wholesalers who stock and sell these tools could boost sales by targeting tech savvy contractors and professionals.
For Karch the company, which has more than three decades of experience and a 2,000-square-foot tool department, keeping up with new technologies is essential. He states that manufacturers are constantly changing their product designs. " she said were able to hold their designs for 5 or 10 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. For instance, by incorporating adjustable handles and lightweight materials, they can help reduce the fatigue that comes from prolonged use. These features are essential to many professional contractors who use the tools for a long period of time. The industry of power tools is divided into consumer and professional groups and this means that the biggest players are always working on enhancing their designs and creating new features to appeal to more people.
Tip 5: Create a Point of Sale
The ecommerce landscape has changed the market for power tools. Data collection techniques have been 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) information for instance, allows you to track the types of projects that DIYers are working on when purchasing power tools and accessories. Knowing the kinds of projects that your customers are working on allows you to offer additional sales and opportunities for upselling. It helps you anticipate the needs of your customers to ensure that you have the right products on the market.
You can also use transaction data to identify market trends, and adjust production cycles accordingly. You can, for example utilize this data to monitor changes in your retail partners' and brand's' market shares. This allows you to align your product strategies to consumer preferences. POS data can also be used to improve levels of inventory, reducing the risk of overstocking. It can also assist you to evaluate the effectiveness of promotional campaigns.
Tip 6: Create a Point of Service
Power tools is a lucrative complex market that requires significant sales and marketing efforts to remain competitive. The most common methods of gaining an advantage in this industry were through pricing or product positioning--but these tactics no longer work in the omnichannel world of today where information is distributed so quickly.
Retailers that focus on customer service are more likely to retain 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. In the beginning, his store featured various brands, but when he began to listen to customers who were contractors, he discovered that the majority were loyal to a particular brand.
To win their customers' business, Karch and his team first ask their customers what they would like to accomplish with the tool before showing them the tools they have available. This gives them the confidence to recommend the appropriate tool for the job and also creates trust with customers. Customers who know their product well are less likely to blame their vendor for a malfunctioning tool during the course of work.
Tip 7: Make an effort to be a Point of Customer Service
The power tool market has become a highly competitive market for retailers of hardware. The retailers that are successful in this market tend to be more committed to a single brand than to carry a variety of brands. The amount of space a retailer is able to devote to a category may also affect the number of brands they are able to carry.
When customers visit a store to purchase a power tool, they often need help selecting a product. Sales associates can offer the best guidance to customers looking to replace a broken device or completing a renovation project.
Mike Karch, the president of Nue's Hardware and Tools, in Menomonee falls, Wisconsin, said that his store's staff is educated to ask questions that can lead to the sale. He says they begin by asking the buyer what they intend to use the product. "That's the most important factor to consider when deciding the kind of tool to market 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 aren't as generous or refuse to cover certain aspects of the tool at all. Before making a purchase it is crucial that the retailer understands the distinctions. Customers will only purchase tools from companies who guarantee their products.
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 in-house that handles 50 lines of tools. He has discovered over time that a lot of his customers who are contractors are brand loyal, so he prefers to focus on a limited number of brands rather than attempting to offer a variety of products.
He also appreciates that his employees have the opportunity to get one-on-one time with vendors to discuss new products and share feedback. This kind of interaction is essential as it helps build trust between the store and the customers. Good relationships with suppliers may even result in discounts on future purchases.