Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are crucial for both professionals and consumers. Despite a slowdown in 2021 due to the COVID-19 pandemic, demand remains near or at pre-pandemic levels.
power tools on sale is the leader in the sales of power tools in terms of dollar share. Lowe's follows closely. However, both are confronting stiff competition from Chinese-made power tools.
Tip 1: Make a Brand Commitment
Many manufacturers of industrial products place more emphasis on sales and marketing. This is due to the fact that the long-term sales process requires a lot of back-and-forth communication as well as a detailed understanding of the product. This kind of communication isn't ideal for marketing that is based on emotion.
Nevertheless, industrial tools manufacturing companies should think about rethinking their approach to marketing. The digital age has accelerated over traditional manufacturers who depend on a small circle of retailers and distributors for sales.
One of the most important factors in power tool sales is brand loyalty. When a customer is loyal to a particular brand they are less prone to messages from competitors. Moreover, they are more likely to buy the item of the customer again and recommend it to others.
To make a successful impact on the United States market, you must have an organized strategy. This means adapting tools to local requirements and positioning brands in a way that is competitive, and using marketing platforms and distribution channels. Collaboration with local authorities and associations, as well as experts is also essential. In this way you can ensure that your power tools conform to the laws of the country and standards.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they offer particularly in a market which places a great importance on the quality of products. This will allow them to make informed decisions about the products they can offer their customers. This knowledge can also make the difference between a successful deal and a bad one.
For instance knowing which tool is suitable for specific projects will allow you to connect your customer with the best tool for their requirements. This will help you build trust and loyalty with your customers. It will also give you confidence that you're offering an entire solution.
Additionally, understanding the trends in DIY culture can help you better know what your customers are looking for. For instance the increasing number of homeowners are taking on home renovations that require the use of power tool. 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 share decrease year-over-year. However, online and in-store sales are on the increase.
Tip 3: Offer Full-Service Repair
The most frequent reason for a person to make a power purchase is to either replace a tool that has been damaged or been damaged or broken, or to embark on a new project. Both offer opportunities for upsells 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 an anticipated replacement. The customers might require additional accessories or upgrade to a more powerful model.
If your customer is an experienced DIYer or new to the hobby, they'll require replacement of their power tools' carbon brushes, drive belts and power cords over time. These basic items will ensure that your client gets the most from their investment.
Technicians must consider three important aspects when buying power tools: application, how it will be operated and safety. These aspects help technicians make informed decisions when choosing the right tools for their maintenance and repair work. This allows them to maximize the performance of their tool and reduce the cost of owning it.
Tip 4: Stay up-to-date with the latest technologies.
For instance, the most recent power tools offer smart technology that improves the user experience and differentiates them from other brands that still depend on old-fashioned battery technology. Wholesalers in B2B who carry and sell these tools can increase sales by focusing on tech savvy contractors and professionals.
Karch's business, which has over 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. He states that manufacturers are constantly changing their designs for their products. "They used hold their designs for five or ten years, but now they change their designs every year."
B2B wholesalers must not only adopt the latest technology, but also improve existing models. By incorporating lightweight materials and adjustable handles, wholesalers can decrease fatigue from prolonged use. These features are crucial for many contractors working in the field who utilize the tools over a long period of time. The market for power tools is divided into the consumer and professional segments. This means that major players are constantly striving to improve their designs and develop new features in order to reach a wider audience.
Tip 5: Create a point of Sale
The landscape of e-commerce has transformed the market for power tools. Modern methods for data collection 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 monitor the kinds of projects DIYers undertake when purchasing power tools and accessories. Knowing the type of projects your customers are working on allows you to offer additional sales and upsell opportunities. It helps you anticipate the needs of your customers, so that you always have the appropriate products on the market.
Furthermore, transaction data allows you to detect trends in the market and adjust production cycles in line with. You could, for instance, use this data to monitor fluctuations of your retail partners' and brand's' market shares. This will allow you to align your strategy for product to consumer preferences. POS data can also be utilized to optimize levels of inventory, reducing the risk of overstocking. It can also assist you to assess the effectiveness of promotional campaigns.
Tip 6: Establish a Point of Service
Power tools are a complicated market that is high-profit and requires a significant amount of marketing and sales efforts to remain competitive. The most common methods of gaining a strategic advantage in this field were through pricing or product positioning--but these tactics no longer work in today's omnichannel marketplace in which information is dispersed so quickly.
Retailers who focus on service are more likely to retain customers and build brand loyalty. Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls in Wisconsin, operates a 12,000-square-foot department for power tools. The department was initially home to several brands. However when he talked to contractors, he noticed that they were loyal to their favorite brand.
To win their business, Karch and his team first ask customers what they would like to accomplish with the tool, then show them the options available. This gives them the confidence to recommend the right tool for the job, and builds trust with customers. Customers who are familiar with their product are less likely to blame their retailer for a tool failure during the course of work.
Tip 7: Become a guru in customer service
Power tool retailers face an extremely competitive market. People who succeed in this area tend to be more loyal to a specific brand rather than to carry a variety of manufacturers. The amount of space a retailer is able to devote to a specific category could influence how many brands they can carry.
Customers often need assistance when they go in to buy a power tool. If they're replacing an old tool that is broken or tackling a renovation project clients require expert advice from sales associates.
Mike Karch, the president of Nue's Hardware and Tools, located in Menomonee Falls, Wisconsin, said that his store's staff is trained to ask questions that could lead to a sale. They begin by asking the buyer what he or she plans to do with the product. "That's the way to decide what kind of tool you need," he says. Next, they ask about the project and what level of experience the client has with various types of projects.
Tip 8: Make sure to be sure to mention your warranty
The warranties of the manufacturers of power tools are very different. Some are fully comprehensive, while some are stingy or even refuse to cover certain parts of the tools at all. Before buying a product, it is crucial that the retailer understands the differences. Customers will only purchase tools from companies who provide a warranty.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, has a 12,000 square-foot power tools department as well as an repair shop within the premises that can handle 50 lines of tools. He has learned that many of his clients are loyal to a particular brand. So, he chooses to carry a select few brands rather than offer samples of various products.
He also appreciates that his employees are able to meet with vendors in person to discuss new products and give feedback. This type of personal interaction is crucial because it helps to establish trust between the retailer and customers. Good relationships with suppliers may result in discounts on future purchases.