Power Tool Sales and Marketing Strategies for B2B Retailers
Power tools are a staple for both professional and personal use. Despite a slowdown in 2021 due to the COVID-19 pandemic, the demand is still at or near levels prior to the pandemic.
In terms of dollar share, Home Depot leads all outlets in sales of power tools. Lowe's follows closely behind. Both are competing against power tools manufactured in China.
Tip 1: Commit to a brand
A lot of manufacturers of industrial products place emphasis on sales over marketing. This is due to the fact that the long-term sales process requires a lot back-and-forth communication and detailed knowledge of the product. This type of communication is not ideal for marketing that is based on emotion.
However, industrial tools manufacturing companies should consider rethinking their approach to marketing. The digital world has raced past traditional manufacturers who rely on a small circle of retailers and distributors for sales.
Brand loyalty is a major element in the sale of power tools. When a customer is adamant about a particular brand, they are less sensitive to competitor's messages. Additionally they are more likely to buy the product of the client again and recommend it to others.
You need a well-planned plan to have an impact on the US market. This means adapting 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 and associations, as well as experts is also crucial. When you do this, you can be confident that your power tools comply with the country's regulations and standards.
Tip 2: Be aware of Your Products
Retailers need to be knowledgeable about the products they are selling, especially in a market that places such a high value on product quality. This will enable them to make informed choices about what they offer their customers. This knowledge could make the difference between making a good or a poor sale.
Knowing which tool is suitable for a specific project will assist you in matching the perfect tool to the requirements of your customer. You'll build trust and loyalty among your customers. It will also give you the confidence that you're offering a complete solution.
Additionally, understanding the trends in DIY culture can help you better know what your customers are looking for. For instance, a rising number of homeowners are undertaking home renovation projects which require power tools. This can lead to a spike in the sale of these 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 sales in stores and online are on the increase.
Tip 3: Offer Full-Service Repair
Most consumers purchase power tools to repair a broken one or to tackle an upcoming project. Both present opportunities for upsells and additional 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 resulted from an anticipated replacement. These customers typically require additional accessories or may require an upgrade to better quality models.
Whether your customer is a seasoned DIYer or new to the hobby, they will likely need to replace their power tools' carbon brushes as well as drive belts and power cords as time goes by. Making sure they are up to date with these essentials will help your customer get the most value from their investment.
Technicians take into consideration three main aspects when buying power tools: application, how it will be powered and safety. These aspects help technicians make informed decisions about the best tools to use for their repairs and maintenance work. This helps them optimize the effectiveness of their tools and reduce the cost of ownership.
Tip 4: Keep Keeping Up With Technology
For example, the latest power tools feature intelligent technology that enhances users' experience and sets them apart from other tools that depend on old-fashioned battery technology. Wholesalers of B2B that stock and sell these devices can increase sales by focusing on professional and tech-savvy contractors.
For Karch the company, which has more than three years of experience and a 2,000-square-foot department for tools, staying up with new technologies is essential. He states that manufacturers are constantly changing their product designs. "They used to keep their designs for five or ten years, but now they're changing them each year."
B2B wholesalers must not only adopt the latest technology, but also improve existing models. For instance, by adding adjustable handles and lightweight materials, they can help reduce the fatigue caused by prolonged use. These features are crucial for a large number of professionals who have to make use of the tools for long periods. The industry of power tools is divided into professional and consumer groups and this means that the biggest players are always working on enhancing their designs and creating new features to reach more people.
Tip 5: Make a Point of Sales
The landscape of e-commerce has transformed the market for power tools. Modern methods for data collection allow professionals in the field to get an entire view of market trends which allows them to design marketing and inventory strategies more effectively.
Point of sale (POS) data for instance, allows you to track the types of projects DIYers undertake when they purchase power tools and other accessories. Knowing the type of projects your customers are working on allows you to offer add-on sales and opportunities for upselling. Powertools Online allows you to anticipate the requirements of your clients and ensure that you have the correct products available.
You can also utilize transaction data to determine market trends, and adapt production cycles accordingly. For instance, you can use this data to monitor fluctuations in your brand's or retail partner market shares which allows you to align your product strategies with consumer preferences. In the same way, you can utilize POS data to improve inventory levels and reduce the risk of stocking up. It is also used to determine the effectiveness of promotional campaigns.
Tip 6: Create an Point of Service
Power tools are a tangled, high-profit market that requires a substantial amount sales and marketing effort to remain in the game. The most common methods of gaining an advantage in this market were through pricing or product positioning--but these strategies are no longer effective in today's multichannel marketplace where information is distributed in such a rapid manner.
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, located in Menomonee Falls, Wisconsin, runs a 12,000 square-foot power tool section. In the beginning, his store featured a sampling of brands, but as he began to listen to the customers of contractors, he learned that most were brand loyal.
To be successful in their customers, Karch and his team first ask their customers what they would like to accomplish with the tool, then show them what they have available. This gives them the confidence to recommend the appropriate tool for the job, and creates trust with customers. Customers who are familiar with their product are less likely to blame the retailer for the failure of a tool for the job.
Tip 7: Become a customer service guru
The power tool market has become a very competitive area for hardware retailers. Those who have seen success in this area tend to have a strong commitment to a brand rather than simply carrying a sampling of manufacturers. The amount of space retailers can dedicate to a particular category can affect the number of brands they carry.
When customers visit a store to purchase a power tool and require assistance, they usually need help selecting a product. If they're replacing an old tool that is broken or tackling a renovation project, customers need expert advice from sales representatives.
Mike Karch, president of Nue's Hardware and Tools in Menomonee Falls, Wisconsin, says his sales associates at the store are educated to ask the right questions to make the sale. He says they start by asking the buyer what they intend to do with the product. "That's the most important factor to consider when deciding the kind of tool to sell them," he adds. Then, they inquire about the experience of the customer with different types of projects as well as the project.
Tip 8: Be sure to mention your warranty
Power tool manufacturers vary greatly in their warranty policies. Some are completely comprehensive, while some are stingy, or refuse to cover certain aspects of the tools at all. It's important for retailers to be aware of the distinctions before buying, since buyers 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 discovered that a lot of his contractors are loyal to a particular brand. So, he chooses to carry a limited number of brands rather than carry a variety of products.
He also likes the fact that his employees can meet with vendors one-on-one to discuss new products and provide feedback. This personal contact is crucial because it helps build trust between the store's clients and employees. Good relationships with suppliers can even lead to discounts on future purchases.